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Ord 39-06 ~ ORDINANCE NO. 39-06 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE CODE OF ORDINANCES, OF THE CITY OF DELRAY BEACH, AMENDING ARTICLE 4.7, "FAMIL YIWORKFORCE HOUSING" AND ORDINANCE 18-06, BY AMENDING SECTION 4.7.4, "DENSITY BONUS PROGRAM FOR THE SOUTHWEST NEIGHBORHOOD OVERLAY DISTRICT; THE CARVER ESTATES OVERLAY DISTRICT AND THE INFILL WORKFORCE HOUSING AREA; AND SUBSECTION 4.7.4.d. TO PROVIDE THE SAME NUMBER OF BONUS UNITS FOR "FOR SALE" AND RENTAL UNITS; BY AMENDING SECTION 4.7.7, "FOR SALE HOUSING UNITS" TO ALLOW A RIGHT OF FIRST REFUSAL TO THE COMMUNITY LAND TRUST; BY AMENDING SECTION 4.7.9, "GENERAL PROVISIONS", SUBSECTION 4.7.9.c.v., TO PROVIDE THAT PROPORTIONS OF "FOR SALE" TO "FOR RENT" UNITS FOR PROJECTS INCLUDING "FOR SALE" AND "FOR RENT" UNITS THAT ARE FUNDED BY CERTAIN STATE FINANCING PROGRAMS SHALL NOT NEED TO BE PROPORTIONAL SO LONG AS TWENTY PERCENT OF THE "FOR SALE" UNITS ARE FOR WORKFORCE HOUSING; BY AMENDING SECTION 4.7.11, "DENSITY BONUS TABLES TO ELIMINATE THE BONUS DIFFERENTIAL BETWEEN "FOR SALE" AND "FOR RENT" UNITS; PROVIDING A SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City Commission desires to amend its FamilylWorkforce Housing Ordinance to provide density bonus parity between "for sale" and "for rent" workforce housing units as both are needed within the City; and WHEREAS, the City Commission desires units funded by the Florida Housing Financial Corporation's Housing Credit or SAIL Programs to be allowed to deviate from certain proportionality requirements while developing rental and "for sale" units, as long as twenty percent of for sale units include workforce housing. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRA Y BEACH, FLORIDA AS FOLLOWS: Section 1. That Article 4.7, "FamilylWorkforce Housing" of the Land Development Regulations and Ordinance 18-06 is hereby amended by amending Section 4.7.4, "Density Bonus Program for the Southwest Neighborhood Overlay District; the Carver Estates Overlay District and the Infill Workforce Housing Area" amending subsection 4.7.4.d to read as follows: SECTION 4.7.4 DENSITY BONUS PROGRAM FOR THE SOUTHWEST NEIGHBORHOOD OVERLAY DISTRICT; THE CARVER ESTATES OVERLAY DISTRICT AND THE INFILL WORKFORCE HOUSING AREA Developers of property in the Southwest Neighborhood Overlay District, the Carver Estates Overlay District and the Infill Workforce Housing Area, that meet the minimum standards will earn bonus units for building workforce housing for very low, low and moderate income families. a. The size of the bonus varies based on several factors including: L Affordability (Le., homes affordable to very low, low, or moderate income families) iL Home Size (Le., workforce housing units with four or more bedrooms are awarded larger bonuses) HL Ownership versus Rental (Le., larger bonuses are awarded for workforce housing units offered for sale to low and very-low income families and larger bonuses are awarded for ownership versus rental units.) b. To be eligible for bonus units, developers must meet one or more of the following criteria: L A designated number of the total units are restricted to very low income households, and/or iL A designated number of the total units are restricted to low income households, and/or iiL A designated number of the units are restricted to moderate income households 2 ORD. NO. 39-06 c. Workforce housing units may be located off-site provided the off- site location chosen is within the City of Delray Beach. d. The bonus allowances are set forth in Table 1 below. TABLE 1 DENSITY BONUS ALLOCATIONS IN THE SOUTHWEST NEIGHBORHOOD OVERLAY DISTRICT, THE INFILL WORKFORCE HOUSING AREA AND THE CARVER ESTATES OVERLAY DISTRICT OPTION SALE I RENT VERY LOW 60% LOW80%-61 % MODERATE 120% - 81 % NUMBER OF BONUS UNITS PER WORKFORCE UNIT PROVIDED 4 3 2 OPTION REiNT NUMBER OF BONUS UNITS PER WORKFORCE UNIT PROVIDED 3 2 81 % 1 "ERY LOI^, 8Qo~ w .., LOIN 8Q% 81 ~r. MODERJ'.TE 120% LARGE HOME OPTION 4+ bedroom workforce housing units Additional 0.5 bonus will be added to the bonus provided above in this chart Section 2. That the Land Development Regulations, Article 4.7, "FamilylWorkforce Housing" and Ordinance 18-06 is hereby amended by amending Section 4.7.9.c.v. to read as follows: c. The developer shall endeavor to provide workforce housing units that include unit types in the same proportion as the market rate housing unit types. The following conditions must be met: 3 ORD. NO. 39-06 ; " , " L The proportion of 2 bedroom workforce units to total workforce units may not exceed the proportion of 2 bedroom market rate units to total market rate units. iL The proportion of 3 bedroom workforce units to total workforce units must meet or exceed the proportion of 3 bedroom market rate units to total market rate units, unless 4+ bedroom workforce units are provided. iiL The proportion of 4+ bedroom workforce units to total workforce units must meet or exceed the proportion of 4+ bedroom market rate units to total market rate units. iv. If the development contains a mix of different types of units, (e.g. condominium, townhouse, detached, etc), the proportion of workforce units of each type to total workforce units must be approximately the same as the proportion of market rate units of each type to total market rate units. v. If the development includes both for sale and for rent units, the proportion of for rent workforce units to for sale workforce units must not exceed the proportion of for rent market rate units: orovided however if the workforce housina units are funded under Florida Housina Finance Corooration's Housina Credit or SAIL Proarams. the orooortionalitv reauirement herein stated shall not aooly if the develooment orovides at least twentv oercent (20%) of the "for sale" units as workforce housina units. vL Notwithstanding Section 4.7.9 c. L, ii, iii, and iv. above, in the Southwest 10111 Street Overlay District at least 75% of the workforce housing units shall be 3 bedroom units offered for initial sale in an amount not to exceed $225,000.00 and 25% of the workforce housing units may be 2 bedroom units offered at the low income affordability rate. Section 3. That Article 4.7, "Family Workforce Housing" of the Land Development Regulations and Ordinance 18-06 is hereby amended by amending Section 4.7.7.a to read as follows: 4 ORD. NO. 39-06 -; SECTION 4.7.7 FOR SALE HOUSING UNITS a. All deeds shall include the restrictive covenants applicable to workforce housing units. All sales contracts shall state that the unit is part of a workforce housing program and subject to Section 4.7 of the Land Development Regulations of the City. All deeds to buvers of workforce housino units shall contain restrictive covenants orovidino that the Communitv Land Trust shall have the rioht of first refusal to ourchase the workforce housino unit on the same terms and conditions as a orosoective buver. The restrictive covenant shall oive the Communitv Land Trust fifteen (15) business davs to enter into a contract to ourchase the orooertv on the same terms and conditions as the orosoective buver. Section 4. That Article 4.7, "FamilylWorkforce Housing of the Land Development Regulations and Ordinance 18-06 is hereby amended by repealing Section 4.7.11, "Density Bonus Tables" and enacting a new Section 4.7.11, "Density Bonus Tables" to read as follows: 4.7.11 DENSITY BONUS TABLES a. The Density Bonus Tables shown below are provided to illustrate bonus densities under various parcel sizes, unit types and income eligibility; however, the density bonus allocations contained in Table 1 shall control densities in the Southwest Neighborhood Overlay District, the Infill Workforce Housing Area, and the Carver Estates Overlay District. 5 ORD. NO. 39-06 Workforce Housing Program Density Bonus Allocations Southwest Neighborhood & Carver Estates Overlay Districts 2-3 Bedroom Units Very-Low Income 4 units er 1 affordable bonus Maximum Units at Maximum Units Market Affordable Bonus Total % Base Densit with Bonus Rate Units Units Units Units Affordable 6 12 5 1 4 10 10.0% 12 24 9 3 12 24 12.5% 18 36 14 4 16 34 11.8% 24 48 18 6 24 48 12.5% 30 60 23 7 28 58 12.1% 36 72 27 9 36 72 12.5% 42 84 32 10 40 82 12.2% 48 96 36 12 48 96 12.5% Low Income 3 units er 1 affordable bonus Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % acres Base Densit with Bonus Rate Units Units Units Units Affordable 0.5 6 12 4 2 6 12 16.7% 1 12 24 8 4 12 24 16.7% 1.5 18 36 12 6 18 36 16.7% 2 24 48 16 8 24 48 16.7% 2.5 30 60 20 10 30 60 16.7% 3 36 72 24 12 36 72 16.7% 3.5 42 84 28 14 42 84 16.7% 4 48 96 32 16 48 96 16.7% Moderate Income 2 units er 1 affordable bonus Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % acres Base Densit with Bonus Rate Units Units Units Units Affordable 0.5 6 12 3 3 6 12 25.0% 1 12 24 6 6 12 24 25.0% 1.5 18 36 9 9 18 36 25.0% 2 24 48 12 12 24 48 25.0% 2.5 30 60 15 15 30 60 25.0% 6 ORD. NO. 39-06 3 3.5 4 36 42 48 72 84 96 18 21 24 18 21 24 36 42 48 72 84 96 25.0% 25.0% 25.0% Workforce Housing Program Density Bonus Allocations Southwest Neighborhood & Carver Estates Overlay Districts 4+ Bedroom Units Very-Low Income 4.5 units er 1 affordable bonus Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % acres Base Densit with Bonus Rate Units Units Units Units Affordable 0.5 6 12 5 1 4 10 10.0% 1 12 24 10 2 9 21 9.5% 1.5 18 36 14 4 18 36 11.1% 2 24 48 19 5 22 46 10.9% 2.5 30 60 24 6 27 57 10.5% 3 36 72 28 8 36 72 11.1% 3.5 42 84 33 9 40 82 11.0% 4 48 96 38 10 45 93 10.8% Low Income 3.5 units er 1 affordable bonus Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % acres Base Densit with Bonus Rate Units Units Units Units Affordable 0.5 6 12 5 1 3 9 11.1% 1 12 24 9 3 10 22 13.6% 1.5 18 36 13 5 17 35 14.3% 2 24 48 17 7 24 48 14.6% 2.5 30 60 22 8 28 58 13.8% 3 36 72 26 10 35 71 14.1% 3.5 42 84 30 12 42 84 14.3% 4 48 96 35 13 45 93 14.0% 7 ORD. NO. 39-06 Maximum Units at Base Densit 6 12 18 24 30 36 42 48 Moderate Income 2.5 units er 1 affordable bonus Maximum Units Market Affordable with Bonus Rate Units Units 12 4 2 24 7 5 36 11 7 48 15 9 60 18 12 72 22 14 84 25 17 96 29 19 Bonus Units 5 12 17 22 30 35 42 47 Total % Units Affordable 11 18.2% 24 20.8% 35 20.0% 46 19.6% 60 20.0% 71 19.7% 84 20.2% 95 20.0% Very-Low Income 4 units er 1 affordable bonus Maximum Units at Maximum Units Market Affordable Bonus Total % Base Densit with Bonus Rate Units Units Units Units Affordable 6 9 4 1 4 9 11.1% 12 18 11 1 4 16 6.3% 18 27 16 2 8 26 7.7% 24 36 21 3 12 36 8.3% 30 45 27 3 12 42 7.10;' 36 54 32 4 16 52 7.7% 42 63 37 5 20 62 8.1% 48 72 42 6 24 72 8.3% Workforce Housing Program Density Bonus Allocations Infill Workforce Housing Area 2-3 Bedroom Units 8 ORD. NO. 39-06 Maximum Units at Base Densit 6 12 18 24 30 36 42 48 Low Income 3 units er 1 affordable bonus Maximum Units Market Affordable with Bonus Rate Units Units 9 5 1 18 10 2 27 15 3 36 20 4 45 25 5 54 30 6 63 35 7 72 40 8 Maximum Units with Bonus 9 18 27 36 45 54 63 72 Market Rate Units 5 9 14 18 23 27 32 36 Affordable Units 1 3 4 6 7 9 10 12 Bonus Units 3 6 9 12 15 18 21 24 Bonus Units 2 6 8 12 14 18 20 24 Total % Units Affordable 9 11.1% 18 11.1% 27 11.1 % 36 11.1% 45 11.1 % 54 11.1% 63 11.1% 72 11.1% Total Units 8 18 26 36 44 54 62 72 Workforce Housing Program Density Bonus Allocations Infill Workforce Housing Area 4+ Bedroom Units % Affordable 12.5% 16.7% 15.4% 16.7% 15.9% 16.7% 16.1% 16.7% Very-Low Income 4.5 units er 1 affordable bonus Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total f2 acres Base Densit with Bonus Rate Units Units Units Units Affordable 0.5 6 9 4 1 4 9 11.1% 1 12 18 11 1 4 16 6.3% 1.5 18 27 16 2 9 27 7.4% 2 24 36 22 2 9 33 6.1% 2.5 30 45 27 3 13 43 7.0% 3 36 54 32 4 18 54 7.4% 9 ORD. NO. 39-06 - - ~.__..._-~---~~~- ----._...-------- 3.5 42 63 38 4 18 60 6.7% 4 48 72 43 5 22 70 7.1% Low Income 3.5 units er 1 affordable bonus Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % acres Base Densit with Bonus Rate Units Units Units Units Affordable 0.5 6 9 5 1 3 9 11.1% 1 12 18 11 1 3 15 6.7% 1.5 18 27 16 2 7 25 8.0% 2 24 36 21 3 10 34 8.8% 2.5 30 45 26 4 14 44 9.1% 3 36 54 31 5 17 53 9.4% 3.5 42 63 36 6 21 63 9.5% 4 48 72 41 7 24 72 9.7% Moderate Income 2.5 units er 1 affordable bonus Maximum Units at Maximum Units Market Affordable Bonus Total % Base Densit with Bonus Rate Units Units Units Units Affordable 6 9 5 1 2 8 12.5% 12 18 10 2 5 17 11.8% 18 27 15 3 7 25 12.000 24 36 19 5 12 36 13.9% 30 45 24 6 15 45 13.3% 36 54 29 7 17 53 13.2% 42 63 34 8 20 62 12.9% 48 72 39 9 22 70 12.9% Section 5. That should any section or provIsion of this ordinance or any portion thereof, any paragraph, sentence, clause or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part hereof other than the part declared invalid. Section 6. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 7. That this ordinance shall become effective upon its passage on second and final reading. 10 ORD. NO. 39-06 the ~SSED AND ADOPTED i~Ular session on second and final reading on this S~ day of ~ , ' ,2006. ') ATTEST: ~~. ~~~.~\~'N City Clerk First Reading 8~1-~ OR '- 11 ORD. NO. 39-06 MEMORANDUM SUBJECT: MAYOR AND CITY COMMISSIONERS CITY MANAGER trl\ \ AGENDA ITEM # \ c;:) ~ - REGULAR MEETING OF JULY 25. 2006 ORDINANCE NO. 39-06 TO: FROM: DATE: JULY 21, 2006 Tbis ordinance is before Commission for second reading and public hearing for a City initiated amendment to the Land Development Regulations (LDR) Article 4.7, "Family/Workforce Housing", Subsection 4.7.4(d), "Density Bonus Program for the Southwest Neighborhood Overlay District, Carver Estates Overlay District, and Infill Workforce Housing Area; Bonus Allowances", to provide the same number of bonus units for "sale" and "rental" units; Section 4.7.7, "For Sale Housing Units", to allow a right of first refusal to the Community Land Trust (CLl); and 4.7.9(c)(v) to provide that the proportions of "for sale" to "for rent" units, for projects that are funded by certain State financing programs, shall not need to be proportional if 20% of the "for sale" units are workforce units. The amendment proposes three (3) new changes. The first modification would give the same density bonus for "for sale" units as "tental units"; currently, a greater bonus is given for ownership units. However, with the recent rental unit conversion trend to condominium units, additional incentives are necessary to assure production of affordable rental units. The second change revises Section 4.7.9 to not requite similar proportions of "for sale" and "rental units" within a project; when it is funded by state financing programs and it contains at least 20% "for sale" workforce units. The third modification adds a provision that the CL T receives rights of first refusal on workforce housing units developed on non-CLT owned lands. On June 19, 2006, the Planning and Zoning Board held a public hearing in conjunction with the amendment. One member of the public spoke in favor of the project. The Board voted 6-0 to recommend to the City Commission approval of the proposed amendment to enhance the City's Workforce Housing Program by providing additional incentives to create rental units, accommodating unique situations related to publicly financed projects, and providing the CL T the right of first refusal. Staff recommends approval by adopting the findings of fact and law contained in the staff report; finding that the request is consistent with the Comprehensive Plan; and finding that the request meets the criteria set forth in LDR Section 2.4.5(M)(S) (Amendment to Land Development Regulations; Findings). At the first reading on July 11, 2006, the Commission passed Ordinance No. 39-06. Recommend approval of Ordinance No. 39-06 on second and final reading. S:\City Cletk\agenda memos Oed 39-06 LDR 4.7 Workforce Housing Bonus Unit 072506 PITY CGMMISSIGN DGCUMENTATIGN 7 I~ i \ ,;t" ) I TO: THRU: FROM: SUBJECT: DA~A~ CIJY MANAGER PAUL DOR~G' Ale ,DIRECTOR OF PLANNING AND ZONING 7Y1~7rf. MARK MCDONN LL, AICP, ASSISTANT PLANNING DIRECTOR MEETING OF JULY 11, 2006 CITY INITIATED AMENDMENT TO LAND DEVELOPMENT REGULATIONS (LDR) ARTICLE 4.7 "FAMILY WORKFORCE HOUSING", SUBSECTION 4.7.4.d TO PROVIDE THE SAME NUMBER OF BONUS UNITS FOR "SALE" AND "RENTAL" UNITS, SECTION 4.7.7. "FOR SALE HOUSING UNITS" TO ALLOW A RIGHT OF FIRST REFUSAL TO THE COMMUNITY LAND TRUST, AND SUBSECTION 4.7.9.c.v. TO PROVIDE THAT PROPORTIONS OF "FOR SALE" TO "FOR RENT" UNITS FOR PROJECTS THAT ARE FUNDED BY CERTAIN STATE FINANCING PROGRAMS SHALL NOT NEED TO BE PROPORTIONAL AS LONG AS TWENTY PERCENT OF THE "FOR SALE" UNITS ARE FOR WORKFORCE HOUSING. ANALYSIS The amendment proposes three new changes; the first would give the same density bonus for "for sale" units as "rental units". Currently a greater bonus is given for ownership units. However, with the recent rental unit conversion trend to condominium units additional incentives are necessary to assure production of affordable rental units. The second change revises Section 4.7.9 to not require similar proportions of "for sale" and "rental units" within a project when it is funded by state financing programs and it contains at least 20% "for sale" workforce units. The third modification adds a provision that the Community land Trust (Cl T) receives rights of first refusal on workforce housing units developed on non-Cl T owned lands. PLANNING AND ZONING BOARD CGNSIDERATIGN At its meeting of June 19, 2006, the Planning and Zoning Board held a public hearing in conjunction with the text amendment. The Board then voted unanimously 6-0 (Chuck Halberg absent) to recommend approval of the text amendment request to enhance the City's Workforce Housing Program by providing additional incentives to create rental units, accommodating unique situations related to publicly financed projects and providing the Community land Trust the right of first refusal, by adopting the findings of fact and law contained in the Staff Report and finding that the request is consistent with the Comprehensive Plan and meets the criteria set forth in lDR Section 2.4.5(M)(5). RECOMMENDED ACTION By motion, move to approve the amendment to land Development Regulations Article 4.7 "Family Workforce Housing", more particularly Section 4.7.7, Subsection 4.7.4 d, and Subsection 4.7.9.c.v. of the land Development Regulations, by adopting the findings of fact and law contained in the staff report and finding that the request is consistent with the Comprehensive Plan and meets criteria set forth in Section 2.4.5(M) of the land Development Regulations. Attachment . Pianning & Zoning Staff Report of June 19, 2006 \~~ ORDINANCE NO. 39-06 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULATIONS OF THE CODE OF ORDINANCES, OF THE CITY OF DELRAY BEACH, AMENDING ARTICLE 4.7, "FAMILYIWORKFORCE HOUSING" AND ORDINANCE 18-06, BY AMENDING SECTION 4.7.4, "DENSITY BONUS PROGRAM FOR THE SOUTHWEST NEIGHBORHOOD OVERLAY DISTRICT; THE CARVER ESTATES OVERLAY DISTRICT AND THE INFILL WORKFORCE HOUSING AREA; AND SUBSECTION 4.7.4.d. TO PROVIDE THE SAME NUMBER OF BONUS UNITS FOR "FOR SALE" AND RENTAL UNITS; BY AMENDING SECTION 4.7.7, "FOR SALE HOUSING UNITS" TO ALLOW A RIGHT OF FIRST REFUSAL TO THE COMMUNITY LAND TRUST; BY AMENDING SECTION 4.7.9, "GENERAL PROVISIONS", SUBSECTION 4.7.9.c.v., TO PROVIDE THAT PROPORTIONS OF "FOR SALE" TO "FOR RENT" UNITS FOR PROJECTS INCLUDING "FOR SALE" AND "FOR RENT" UNITS THAT ARE FUNDED BY CERTAIN STATE FINANCING PROGRAMS SHALL NOT NEED TO BE PROPORTIONAL SO LONG AS TWENTY PERCENT OF THE "FOR SALE" UNITS ARE FOR WORKFORCE HOUSING; BY AMENDING SECTION 4.7.11, "DENSITY BONUS TABLES TO ELIMINATE THE BONUS DIFFERENTIAL BETWEEN "FOR SALE" AND "FOR RENT" UNITS; PROVIDING A SAVINGS CLAUSE, A GENERAL REPEALER CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City Commission desires to amend its FamilylWorkforce Housing Ordinance to provide density bonus parity between "for sale" and "for rent" workforce housing units as both are needed within the City; and WHEREAS, the City Commission desires units funded by the Florida Housing Financial Corporation's Housing Credit or SAIL Programs to be allowed to deviate from certain proportionality requirements while developing rental and "for sale" units, as long as twenty percent of for sale units include workforce housing. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA AS FOLLOWS: Section 1. That Article 4.7, "FamilylWorkforce Housing" of the Land Development Regulations and Ordinance 18-06 is hereby amended by amending Section 4.7.4, "Density Bonus Program for the Southwest Neighborhood Overlay District; the Carver Estates Overlay District and the Infill Workforce Housing Area" amending subsection 4.7.4.d to read as follows: SECTION 4.7.4 DENSITY BONUS PROGRAM FOR THE SOUTHWEST NEIGHBORHOOD OVERLAY DISTRICT; THE CARVER ESTATES OVERLAY DISTRICT AND THE INFILL WORKFORCE HOUSING AREA Developers of property in the Southwest Neighborhood Overlay District, the Carver Estates Overlay District and the Infill Workforce Housing Area, that meet the minimum standards will earn bonus units for building workforce housing for very low, low and moderate income families. a. The size of the bonus varies based on several factors including: i. Affordability (i.e., homes affordable to very low, low, or moderate income families) ii. Home Size (i.e., workforce housing units with four or more bedrooms are awarded larger bonuses) iii. Ownership versus Rental (i.e., larger bonuses are awarded for workforce housing units offered for sale to low and very-low income families and larger bonuses are awarded for ownership versus rental units.) b. To be eligible for bonus units, developers must meet one or more of the following criteria: i. A designated number of the total units are restricted to very low income households, and/or ii. A designated number of the total units are restricted to low income households, and/or iiL A designated number of the units are restricted to moderate income households c. Workforce housing units may be located off-site provided the off- site location chosen is within the City of Delray Beach. 2 ORD. NO.39-06 d. The bonus allowances are set forth in Table 1 below. TABLE 1 DENSITY BONUS ALLOCATIONS IN THE SOUTHWEST NEIGHBORHOOD OVERLAY DISTRICT, THE INFILL WORKFORCE HOUSING AREA AND THE CARVER ESTATES OVERLAY DISTRICT OPTION SALE / RENT NUMBER OF BONUS UNITS PER WORKFORCE UNIT PROVIDED VERY LOW 60% 4 LOW 80% - 61 % 3 MODERATE 120% - 81 % 2 OPTION RfiENT NUMBER OF BONUS U~JITS PER VVORKFORCe: U~JIT PROVIDED VERY Lo\^l 60% 3 lO'N 30% 61 % 2 MODERATE 120% 31 % 1 LARGE HOME OPTION 4+ bedroom workforce housing units Additional 0.5 bonus will be added to the bonus provided above in this chart Section 2. That the Land Development Regulations, "FamilylWorkforce Housing" and Ordinance 18-06 is hereby amended Section 4.7.9.c.v. to read as follows: Article 4.7, by amending c. The developer shall endeavor to provide workforce housing units that include unit types in the same proportion as the market rate housing unit types. The following conditions must be met: i. The proportion of 2 bedroom workforce units to total workforce units may not exceed the proportion of 2 bedroom market rate units to total market rate units. ii. The proportion of 3 bedroom workforce units to total workforce units must meet or exceed the proportion of 3 3 ORD. NO.39-06 bedroom market rate units to total market rate units, unless 4+ bedroom workforce units are provided. iiL The proportion of 4+ bedroom workforce units to total workforce units must meet or exceed the proportion of 4+ bedroom market rate units to total market rate units. iv. If the development contains a mix of different types of units, (e.g. condominium, townhouse, detached, etc), the proportion of workforce units of each type to total workforce units must be approximately the same as the proportion of market rate units of each type to total market rate units. v. If the development includes both for sale and for rent units, the proportion of for rent workforce units to for sale workforce units must not exceed the proportion of for rent market rate units; orovided however if the workforce housino units are funded under Florida Housino Finance Corooration's Housino Credit or SAIL Proorams, the orooortionality reouirement herein stated shall not aooly if the develooment orovides at least twenty oercent (20%) of the "for sale" units as workforce housino units. vi. Notwithstanding Section 4.7.9 c. i., ii, iii, and iv. above, in the Southwest 10th Street Overlay District at least 75% of the workforce housing units shall be 3 bedroom units offered for initial sale in an amount not to exceed $225,000.00 and 25% of the workforce housing units may be 2 bedroom units offered at the low income affordability rate. Section 3. That Article 4.7, "Family Workforce Housing" of the Land Development Regulations and Ordinance 18-06 is hereby amended by amending Section 4.7.7.a to read as follows: SECTION 4.7.7 FOR SALE HOUSING UNITS a. All deeds shall include the restrictive covenants applicable to workforce housing units. All sales contracts shall state that the unit is part of a workforce housing program and subject to Section 4.7 of the Land Development Regulations of the City. All deeds to buvers of workforce housino units shall contain restrictive covenants orovidino that the Communitv Land Trust shall have the riqht of first refusal to ourchase the workforce housino unit on the same terms and conditions as a orosoective buyer. The restrictive covenant 4 ORD. NO.39-06 shall oive the Community Land Trust fifteen (15) business days to enter into a contract to ourchase the orooerty on the same terms and conditions as the orosoective buyer. Section 4. That Article 4.7, "FamilylWorkforce Housing of the Land Development Regulations and Ordinance 18-06 is hereby amended by repealing Section 4.7.11, "Density Bonus Tables" and enacting a new Section 4.7.11, "Density Bonus Tables" to read as follows: 4.7.11 DENSITY BONUS TABLES a. The Density Bonus Tables shown below are provided to illustrate bonus densities under various parcel sizes, unit types and income eligibility; however, the density bonus allocations contained in Table 1 shall control densities in the Southwest Neighborhood Overlay District, the Infill Workforce Housing Area, and the Carver Estates Overlay District. 5 ORD. NO.39-06 Workforce Housing Program Density Bonus Allocations Southwest Neighborhood & Carver Estates Overlay Districts 2-3 Bedroom Units Very-Low Income (4 units per 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 12 5 1 4 10 10.0% 1 12 24 9 3 12 24 12.5% 1.5 18 36 14 4 16 34 11.8% 2 24 48 18 6 24 48 12.5% 2.5 30 60 23 7 28 58 12.1% 3 36 72 27 9 36 72 12.5% 3.5 42 84 32 10 40 82 12.2% 4 48 96 36 12 48 96 12.5% Low Income 13 units per 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 12 4 2 6 12 16.7% 1 12 24 8 4 12 24 16.7% 1.5 18 36 12 6 18 36 16.7% 2 24 48 16 8 24 48 16.7% 2.5 30 60 20 10 30 60 16.7% 3 36 72 24 12 36 72 16.7% 3.5 42 84 28 14 42 84 16.7% 4 48 96 32 16 48 96 16.7% Moderate Income 12 units ner 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 12 3 3 6 12 25.0% 1 12 24 6 6 12 24 25.0% 1.5 18 36 9 9 18 36 25.0% 2 24 48 12 12 24 48 25.0% 2.5 30 60 15 15 30 60 25.0% 3 36 72 18 18 36 72 25.0% 3.5 42 84 21 21 42 84 25.0% 4 48 96 24 24 48 96 25.0% 6 ORD. NO.39-06 Workforce Housing Program Density Bonus Allocations Southwest Neighborhood & Carver Estates Overlay Districts 4+ Bedroom Units Very-Low Income 14.5 units per 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 12 5 1 4 10 10.0% 1 12 24 10 2 9 21 9.5% 1.5 18 36 14 4 18 36 11.1% 2 24 48 19 5 22 46 10.9% 2.5 30 60 24 6 27 57 10.5% 3 36 72 28 8 36 72 11.1% 3.5 42 84 33 9 40 82 11.0% 4 48 96 38 10 45 93 10.8% Low Income 13.5 units per 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordabie Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 12 5 1 3 9 11.1% 1 12 24 9 3 10 22 13.6% 1.5 18 36 13 5 17 35 14.3% 2 24 48 17 7 24 48 14.6% 2.5 30 60 22 8 28 58 13.8% 3 36 72 26 10 35 71 14.1% 3.5 42 84 30 12 42 84 14.3% 4 48 96 35 13 45 93 14.0% Moderate Income (2.5 units per 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 12 4 2 5 11 18.2% 1 12 24 7 5 12 24 20.8% 1.5 18 36 11 7 17 35 20.0% 2 24 48 15 9 22 46 19.6% 2.5 30 60 18 12 30 60 20.0% 3 36 72 22 14 35 71 19.7% 3.5 42 84 25 17 42 84 20.2% 4 48 96 29 19 47 95 20.0% 7 ORD. NO.39-06 Workforce Housing Program Density Bonus Allocations /nfil/ Workforce Housing Area 2-3 Bedroom Units Very-Low Income (4 units oer 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 9 4 1 4 9 11.1% 1 12 18 11 1 4 16 6.3% 1.5 18 27 16 2 8 26 7.7% 2 24 36 21 3 12 36 8.3% 2.5 30 45 27 3 12 42 7.1% 3 36 54 32 4 16 52 7.7% 3.5 42 63 37 5 20 62 8.1% 4 48 72 42 6 24 72 8.3% Low Income (3 units ner 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordabie 0.5 6 9 5 1 3 9 11.1% 1 12 18 10 2 6 18 11.1% 1.5 18 27 15 3 9 27 11.1% 2 24 36 20 4 12 36 11.1% 2.5 30 45 25 5 15 45 11.1% 3 36 54 30 6 18 54 11.1% 3.5 42 63 35 7 21 63 11.1% 4 48 72 40 8 24 72 11.1% Moderate Income 12 units ner 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 9 5 1 2 8 12.5% 1 12 18 9 3 6 18 16.7% 1.5 18 27 14 4 8 26 15.4% 2 24 36 18 6 12 36 16.7% 2.5 30 45 23 7 14 44 15.9% 3 36 54 27 9 18 54 16.7% 3.5 42 63 32 10 20 62 16.1% 4 48 72 36 12 24 72 16.7% 8 ORD. NO.39-06 Workforce Housing Program Density Bonus Allocations /nfi/l Workforce Housing Area 4+ Bedroom Units Very-Low Income {4.5 units ner 1 affordable bonus\ Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % {acres\ Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 9 4 1 4 9 11.1% 1 12 18 11 1 4 16 6.3% 1.5 18 27 16 2 9 27 7.4% 2 24 36 22 2 9 33 6.1% 2.5 30 45 27 3 13 43 7.0% 3 36 54 32 4 18 54 7.4% 3.5 42 63 38 4 18 60 6.7% 4 48 72 43 5 22 70 7.1% Low Income 13.5 units oer 1 affordable bonus\ Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres\ Base Densitv with Bon us Rate Units Units Units Units Affordable 0.5 6 9 5 1 3 9 11.1% 1 12 18 11 1 3 15 6.7% 1.5 18 27 16 2 7 25 8.0% 2 24 36 21 3 10 34 8.8% 2.5 30 45 26 4 14 44 9.1% 3 36 54 31 5 17 53 9.4% 3.5 42 63 36 6 21 63 9.5% 4 48 72 41 7 24 72 9.7% Moderate Income 12.5 units oer 1 affordable bonus) Parcel Size Maximum Units at Maximum Units Market Affordable Bonus Total % (acres) Base Densitv with Bonus Rate Units Units Units Units Affordable 0.5 6 9 5 1 2 8 12.5% 1 12 18 10 2 5 17 11.8% 1.5 18 27 15 3 7 25 12.0% 2 24 36 19 5 12 36 13.9% 2.5 30 45 24 6 15 45 13.3% 3 36 54 29 7 17 53 13.2% 3.5 42 63 34 8 20 62 12.9% 4 48 72 39 9 22 70 12.9% 9 ORD. NO.39-06 Section 5. That should any section or provIsion of this ordinance or any portion thereof, any paragraph, sentence, clause or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part hereof other than the part declared invalid. Section 6. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 7. That this ordinance shall become effective upon its passage on second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the day of . 2006. ATTEST: City Clerk MAYOR First Reading Second Reading 10 ORD. NO.39-06 PLANNING AND ZONING BOARD MEMORANDUM STAFF REPORT MEETING DATE: AGENDA NO.: AGENDA ITEM: JUNE 19, 2006 IV.C. CONSIDERATION OF CITY-INITIATED AMENDMENTS TO THE LAND DEVELOPMENT REGULATIONS (LDRs) ARTICLE 4.7 "FAMILY WORKFORCE HOUSING", SUBSECTION 4.7.4.d TO PROVIDE THE SAME NUMBER OF BONUS UNITS FOR "SALE" AND "RENTAL" UNITS, SECTION 4.7.7. "FOR SALE HOUSING UNITS" TO ALLOW A RIGHT OF FIRST REFUSAL TO THE COMMUNITY LAND TRUST, AND SUBSECTION 4.7.9.c.v. TO PROVIDE THAT PROPORTIONS OF "FOR SALE" TO "FOR RENT" UNITS FOR PROJECTS THAT ARE FUNDED BY CERTAIN STATE FINANCING PROGRAMS SHALL NOT NEED TO BE PROPORTIONAL AS LONG AS TWENTY PERCENT OF THE "FOR SALE" UNITS ARE FOR WORKFORCE HOUSING. I ITEM8EFORE THE BOARD .....n' . "n...-.<...-...-.... ......"""<. .................... .. " The item before the Board is that of making a recommendation to the City Commission regarding City-initiated amendments to the Land Development Regulations to accommodate revisions to the City's Workforce Housing Program. Pursuant to Section 1.1.6, an amendment to the text of the Land Development Regulations may not be made until a recommendation is obtained from the Planning and Zoning Board. BACKGROUND The Family/Workforce Housing Ordinance, adopted by the City Commission on December 6, 2004, includes incentives to provide workforce housing by allowing density bonuses within the Southwest Neighborhood Overlay District. The program was expanded with amendments passed in March, 2006 to provide additional opportunities and incentives for the provision of workforce housing. Major revisions included establishment of an additional workforce housing overlay district known as the Infill Workforce Housing Area and included increasing the maximum density from 12 units per acre to 24 units per acre within the Carver Estates Overlay District. The amendments included adding references to the newly created Delray Beach Community Land Trust, increasing the affordability time frames from 30 to 40 years, allowing lots of record between 40 feet and 50 feet to be developed for workforce housin9 and requiring provision of workforce housing with increased density or height. I ANALYSIS The amendment proposes three new changes; the first would give the same density bonus for "for sale" units as "rental units". Currently a greater bonus is given for ownership units. However, with the recent rental unit conversion trend to condominium unit's additional incentives are necessary to assure production of affordable rental units. The second change revises Section 4.7.9 to not require similar proportions of "for sale" and "rental units" within a project when it is funded by state financing programs and it contains at least 20% "for sale" workforce units. The third modification adds a IV.C. Planning and Zoning Board Memorandum Staff Report, June 19. 2006 Amendment to LDRs Pertaining to Workforce Housing Program Page 2 provision that the Community Land Trust (CL T) receives rights of first refusal on workforce housing units developed on non-CL T owned lands. REQUIRED FINDINGS LOR Section 2.4.5/MlC51 /FindinQsl: Pursuant to LOR Section 2.4.5(M)(5) (Findings), in addition to LDR Section 1.1.6(A), the City Commission must make a finding that the text amendment is consistent with and furthers the Goals, Objectives and Policies of the Comprehensive Plan. A review of the Objectives and policies of the adopted Comprehensive Plan was conducted and the following applicable Objectives and Policies were noted: Future Land Use Element Obiective A-7 To encourage the provision of workforce housing in the City, the following policies shall be implemented. Policv A-7.1: The maximum density may be increased within the Medium Density, General Commercial and Transitional Future Land Use designations through the Workforce Housing "Density Bonus Program". The concept is that for evel)l workforce housing unit that a developer builds, a calculated number of market rate units greater than would be allowed otherwise may be built. Policv A-7.2: Workforce Housing Overlay Districts shall be identified on the Future Land Use Map. The maximum density within these districts shall be as follows: . The Southwest Neighborhood and Carver Estates Overlay Districts shall have a maximum density of 24 units per acre. . The SW 1 dh Street Overlay District shall have a maximum density of 12 units per acre. . All other Overlay Districts shall have a maximum density of 18 units per acre. Policv A-7.3: Residential Density may not be increased on any property located within the Coastal High Hazard Area through density bonuses in the Workforce Housing Program. Policv A-7.4: All Workforce Housing Units, constructed under the Family/Workforce Housing Program, shall remain affordable for a period of no less than thirty (30) years commencing from the date of initial occupancy of the unit. This Future Land Use Element Objective and supporting Policies were added as a text amendment included with Comprehensive Plan Amendment 2005-2. The purpose of the text amendment was to support expansion of the existing Workforce Housing Program. The proposed revisions to the Land Development Regulations are to implement this Objective and policies. Future Land Use Element Obiective A-5 The City shall maintain its Land Development Regulations, which shall be regularly reviewed and updated, to provide streamlining of processes and to accommodate planned unit developments (PUD), mixed-use developments, and other innovative development practices. Planning and Zoning Board Memorandum Staff Report, June 19, 2006 Amendment to LDRs Pertaining to Workforce Housing Program Page 3 The proposed amendments to the Land Development Regulations are to support the City's innovative Workforce Housing Program, by encouraging developers to provide affordable housing through a series of incentives, including increased density and building height. Housina Element Obiective 8-1 The City's existing housing supply accommodates households having a wide range of economic ability. There is very little vacant land left, especially large tracts, for new housing development. Through its housing programs, the City shall work to ensure that there continues to be an adequate supply of housing to accommodate very low, low, and moderate income households, as well as manufactured and mobile homes. Housina Element Obiective B-2 Redevelopment and the development of new land shall result in the provision of a variety of housing types which shall continue to accommodate the diverse makeup of the City's demographic profile, and meet the housing needs identified in this Element. The proposed amendments will further these objectives and policies. The goal of this program is to encourage the provision of housing which is affordable to very low to moderate income households through the use of incentives. Based on the above, a positive finding can be made that the amendments are consistent with and further the Goals, Objectives, and Policies of the Comprehensive. REVIEW BY OTHERS Courtesv Notices: Courtesy notices were provided to the following homeowner and civic associations: . Progressive Residents of Delray (PROD) . President's Council . Neighborhood Advisory Council Letters of objection and support, if any, will be provided at the Planning and Zoning Board meeting. . ASSESSMENT AND CONClUSION The purpose of this City-initiated LDR text amendment is to enhance the City's Workforce Housing Program by providing additional incentives to create rental units, accommodating unique situation related to publicly financed projects and providing the Community Land Trust the right of first refusal. The proposed amendment is consistent with and furthers the Goals, Objectives and Policies of the Comprehensive Plan. Planning and Zoning Board Memorandum Staff Report, June 19, 2006 Amendment to LDRs Pertaining to Workforce Housing Program Page 4 RECOMMENDED ACTION, '....n.'......d........ddd."".n."........n."......................."...""... Move to recommend to the City Commission approval of the City-initiated amendments to Article 4.7 "Family Workforce Housing", more particularly Section 4.7.7, Subsection 4.7.4 d, and Subsection 4.7.9.c.v. of the Land Development Regulations, by adopting the findings of fact and law contained in the staff report and finding that the request is consistent with the Comprehensive Plan and meets criteria set forth in Section 2.4.5(M) of the Land Development Regulations. Attachments: . Proposed Ordinance 3~-"O\P C ). (!" ((LU) / ('-"I~ www.bocanews.com . Boca Raton/Delray Beach News - FridaylSaturday, July 14-15, 2006 33 ,.. ANNOUNCEMENTS 101 Lpg,,} ~()tl(,(\"" CITY" OELRAY BEACH, FLORIDA NaTlCEOFPUBL1CliEARING A PUBLIC HEARING win be held on the 10llowirog proposed ordinance at 7,00 p.m. on TUESDAY, JULY 25. 2006 (Of at any cOnl1nuation of SLM:h meeting which is set by the Commission). io the Crty Commissiorl Chambers, 100NW 1st Avenue, De~ ray Beach. Florida, at which1ime the Cily Commission will consider its adoption. The proposed ordinance maybe inspected at the OtIice of \he City Clerk al C~y Han. 100 N,W. 1st Avenue.DelrayBeaCh,FloridB,tle. lwee1lthe hOurs 01 acoo a.m. and 500 pm. Monday through Friday. except holidays. AU interested parties are in- vttedloatlendandbeheardwi\l1rll- speclto the proposed ordinance ORDIWl.MCENO.39-06 AN ORDINANCE OF THE CfTY COM. MISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULA. TIONS OF THE CODE OF OADI. NANCES, OF THE CITY OF DElfIAY BEACH, AMENDING ARTICLE 47. "FAMllYIWORKFORCE HOUSING" AND ORDINANCE 18.06, BY AMENDING SECTION 4,7"- "DENSITY BONUS PROGRAM FOR THE SOUTHWEST NEIGHBOR- HOOD OVERl'AY DISTRICT; THE CARVER ESTATES OVERLAY ms. TAICT AND THE INFlll WOAK. FORCE HOUSING AREA; AND SUB- SECTICiN 4,7.4.d, TO PROVIDE THE SAME NUMBEA OF BONUS UNITS FOR "FDA SALE' AND RENTAL UNITS; BY AMENDING SECTION 4,7,7, "FOR SAlE HOUSING UNITS' TO AllOW A RIGHT OF FIRST RE. FUSAl TO THE COMMUNITY LAND TRUST BY AMENDING SECTION 4.7.9, ;GENERAL PROVISIONS", SUBSECTION 4.7.9.c.v. TO PRO- VIDE THAT PROPOflTIONS OF "FOR SAlE "TO "FOR RENT" UNITS FOR PROJECTS INCLUDING "FOR SAlE" AND"FOR RENT" UNITS THAT ARE FUNDED BY CERTAIN S.TATE Fl. NANCING PROGRAMS SHAlL Nor NEED TO BE PROPORTIONAL SO lONG AS TWENTY PERCENT OF THE "FOR SALF UNITS ARE FOR WORKFORCE HOUSING: BY AMENDING SECTION 4.711, "DENSITY BONUS TABlES TO ELlM- INATE,THE BONUS DiffERENTIAL BETWEEN "FOR SALE" AND "FOR RENT UNITS; PROVIDING A SAV- INGCLAUSE,AGENERAlREPEAl. fR CLAUSE. AND AN EFFECTIVE DATI' Pleaseillladvlsedlhatilape,soode-- 101 I t'!!al \otJ{'e~ does kl appeal an~ decision mackl by 111e Gily Commission wllh r"spacllo any malle, consJder",; altha" hear- ings, suctl person ma~ """d 10 enaura lhat a verb.llm ,ecord inoludas tM; leslimon~ .nd evidance upon which thaappealistO!lebased.ThaClIy does nol provida no"p'apars',such ,O<:OrdPlJI5I.lMlklF.S,26Il.Ot05 CITYQFDELRAYBEACH CheY8lIeD,Nutlin City C""~ PUBLISH: FrKlay, July 14,2006 Boca Ralon IDe~ayBeachNaws