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Res 99-94 RESOLUTION NO. 99-94 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING THE AFFORDABLE HOUSING INCENTIVE PLAN PURSUANT TO THE PROVISIONS OF THE STATE HOUSING INITIATIVE PARTNERSHIP (SHIP) PROGRAM, FLORIDA STATE STATUTES CHAPTER 420.9076; PROVIDING FOR SPECIFIC INITIATIVES TO ENCOURAGE OR FACILITATE AFFORDABLE HOUSING AND A SCHEDULE FOR IMPLEMENTATION; AUTHORIZING THE SUBMISSION OF THE AMENDED PLAN TO THE STATE HOUSING FINANCE AGENCY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the State of Florida, under specific authority of Florida State Statutes, Section 420.9076, has established the State Housing Initiatives Partnership (SHIP) Program, which requires the City to adopt a Local Affordable Housing Incentive Plan; and WHEREAS, at a regular meeting of March 8, 1994, the City Commission of the City of Delray Beach, Florida, adopted Resolution No. 19-94, which adopted "The Affordable Housing Incentive Plan - Delray Beach, Florida," WHEREAS, the State Housing Finance Agency has reviewed the City's plan and has thus recommended specific amendments prior to their approval of the plan, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: $~ That the City Commission of the City of Delray Beach, Florida, hereby adopts pursuant to the provisions of the Florida State Statutes, Section 420.9076(6) and comments from the SHIP Review Committee, the amended document entitled "The Affordable Housing Incentive Plan - Delray Beach, Florida," which is incorporated herein by reference and made a part hereof. ~ That the City Manager is hereby authorized to submit the amended Affordable Housing Incentive Plan to the State of Florida Housing Finance Agency for its approval. ~ That this resolution shall become effective immediately upon passage. PASSED AND ADOPTED in regular session on this the 13th day of December, 1994. ATTEST: - ~ity' Cle~rk - - 2 - Res. No. 99-94 AFFORDABLE HOUSING INCENTIVE PLAN Pursuant to Section 420.9076,- Florida Statutes, the City of Delray Beach Affordable Housing Advisory Committee held meetings to review existing policies, procedures, ordinances, land development regulations and comprehensive plan in order to make specific recommendations aimed at encouraging and facilitating affordable housing while also protecting property values. The following incentives resulted from of this review. 1. The affordable housing definition in the appointing resolution. "Affordable Housing" shall mean the development or redevelopment of vacant parcels within the City of Delray which can be purchased and monthly mortgage payments, including principal, interest, taxes and insurance (PITI), does not exceed thirty percent (30%) of the median annual adjusted gross income for households in Palm Beach County as defined by the United States Department of Housing and Urban Development. The development and redevelopment 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. 2. The expedited process of permits for affordable housing projects. The City has in place "One Stop Shop Permitting" providing for a coordinated review and approval of all developmental applications submitted through the Development Services Group. Emphasis is placed on providing efficient, timely review and approval of all application types from one point of contact by the customer. The system features a fully automated application tracking software package that provides the opportunity to readily identify delays in review time from various departments within the development function. The "One Stop Shop Permitting" incorporates an expedited review and approval process of building permit applications submitted under a subdivision development, using one set of architectural plans for various lots. This process reduces the average number of days for review from 15 days-to 5 days. A second part of our program incorporates same day inspections on construction projects. The combination of expedited review and approvals and same day inspections minimizes delays in construction activity and costs associated with such delays. The expedited review process shall be applied to the City's Affordable infill housing program in cases where one set of architectural plans are used for various infill lots throughout the target area. The estimated cost reduction will average from $250-$500. 3. The modification of impact-fee requirements, including reduction or waiver of fees and alternative methods of fee payment. Land DeYelopment Regulations, Section 2.4.3(k} The current impact and other fees associated with the development of a typical affordable single family unit, valued at $50,000 with between 800 and 1300 square feet total approximately $5730. These fees include: CITY OF DELRAY BEACH-IMPOSED IMPACT FEES Deposit $ 75.00 Water System Connection Fee $ 788.00 Meter Installation (1") $ 525.00 sewer System Connection $1084.00 Parks & Recreation impact fee $ 500.00 Total City Impact Fees $2,972.00 gITY OF DELRAY ~EACH BUILDING PERMIT FEES Building Permit $ 660.00 Paving Permit fee $ 63.50 Irrigation permit fee $ 63.50 Total Permit Fees $ 787.00 PALM BEACH COUNTY-IMPOSED IMPACT FEES Road Impact Fee $1,650.00 Parks Impact Fee 123.91 Law Enforcement 5.30 Public Bldgs. 51.76 Schools 140.25 Total County Impact Fees $1,971.22 There is currently no provision for waiving impact fees through either the City or the County. Therefore funding will be made available through SHIP and/or other dollars for the payment of these fees when it can be determined that the result of this subsidy will be a more affordable unit for the homebuyer. Current policy (Commission action 1/21/92) provides for a 70% reduction in building permit fees (excluding impact fees and water connection fees) for non-profit (501(c) (3)) agencies. This represents a $550 reduction to the overall fees imposed on new construction. This policy 2 also provides __fo~_~&_lO0% waiver of all fees assessed under Section 2.4.3(K~ ~) ..... Of the Land Development Regulations (Development Applications, i.e. Site Plan Review, Plats, etc.). The Palm Beach County Board of County Commission will be formally petitioned for an exemption from the requirements of impact fees for the entire CDBG target area. This exemption would provide a $2000 reduction in the cost of constructing one single family unit. 4. Allowance of Increased Density Levels. (Comprehensive Plan, Housing Element, Policy C-3.1) The Housing Element provides for increases to density when it can be demonstrated that such increases will lead to an affordable unit, provided that other policies of the Comprehensive Plan are maintained. 5. Reservation of Infrastructure Capacity for housing for very low and low income persons. (Comprehensive Plan, Housing Element, Policy A-2.3] Infrastructure facilities currently exist throughout the target area. However, where there is visible signs of deterioration, Comprehensive Plan policy provides for prioritization in scheduling necessary improvements. 6. Transfer of Development Rights as a financing mechanism for housing for very low-income and low-income persons. (Land Development Regulations, Section 4.6.20} Current policy provides for TDRs when the use of the property advances the goals, objectives, and policies of the Comprehensive Plan. Developers may be offered development rights within areas designated on the Land Use Map as "Redevelopment Areas" and within geographic areas where height increases are allowed pursuant to LDRs Section 4.3.4 (J)(4) in exchange for development rights of the "regulated" property. Thus TDR's may be used as a mechanism to achieve affordable housing. 7. Reduction of parking and set back requirements. (Land Development Regulations, Section 4.6.9(C) Current regulations require 2 parking spaces per dwelling unit in Single Family zoning districts. As an incentive to affordable housing, one of the required parking spaces may be located within the side set back within one foot of the property line, provided the impervious area used for parking is sloped to drain on the lot being developed. This incentive will provide a cost reduction of approximately $500 per unit. The incentive will be implemented with the adoption of the Housing Incentive Plan by the City Commission. 3 ?he allowance of zero-lot-line configurations. tComprehensfve Plan, Housing Element, B-2.3(f)) Current policy provides for a mix of housing types, including zero lot-line, single family conventional, and multiple family housing. 9. Modifications to street and sidewalk requirements. Due to concerns for safety and aesthetics there shall be no modifications to current regulations governing sidewalks and streets. In order to address affordability, the City currently considers on a case by case basis provisions for funding street and sidewalk requirements. 10. Establish a process by which impact of proposed new policies, procedures, ordinances, and regulations are considered prior to approval. The Affordable Housing Commission will be responsible for reviewing and making formal recommendations on all amendments to the City's Land Development Regulations, Code of Ordinances, and local polices that may significantly impact the cost of housing in Delray Beach, prior to their adoption. The City Department proposing the amendment will be responsible for notifying the Director of the Department of Community Improvement who will ensure notice to the Affordable Housing Commission of such proposals. The Affordable Housing Commission will, at a regular or special meeting, review the same and provide a formal recommendation in writing to the Director of the department proposing the change. All comments and recommendations from this Commission will be made a part of the staff report being considered by the local planning agency (Planning & Zoning Board) and/or the City Commission. Implementation of the review process by the Affordable Housing Commission will begin effective January 2, 1995. 11.Preparation of a printed inventory of locally owned public lands suitable for affordable housing. An inventory of locally owned public lands suitable for affordable housing shall be prepared on or before July 1994. 12. Other: A. Establish list of properties scheduled for demolition. The City shall make available to the public a list of properties scheduled for demolition at least 30 days prior to demolition. This listing should provide owners' names and all lien-holders. A cost reduction of approximately $3000 per unit can be realized in impact and water connection fees. B. Solicitation of Assistance to Effect Increases in Appraisals through the Florida Energy Center. The City shall request the Florida Energy Center to take on as a project, tests of energy savings additions to units which save homeowner dollars. This effort is for the purpose of the Florida Energy Center to influence the appraisal industry into recognizing these measures as added property value. C.Reduction of Landscape Requirements (LDRs Section 4.6.16(H) Current requirements at Section 4.6.16(H) for Single Family housing is that 20% of all pervious lot area be planted in shrubs and ground cover and the remaining %80 of the area be planted in turf. In support of projects participating the city's Affordable Housing Programs the requirements of the landscape code are to be reduced to allow for only 10% of the pervious single family lot area be planted in shrubs and ground cover and that the requirements be installed in front and sidestreet setbacks. It is estimated that $1200 would be reduced from the cost of producing one unit. D. Waiver of Requirements of Final Engineering Plans Current policy at Section 2.4.3{F) requires that Engineering Plans be prepared and submitted as specified by the various regulating agencies, i.e. utility providers, City Engineer, South Florida Water Management District and HRS. The requirements for calculating water drainage and other off-site improvements for infill lots, particularly where improvements are in place, shall be waived. A cost reduction of $1000 is estimated. 5 TO: DAVID HARDEN, CITY MANAGER / I~ FROM: LULA BUTLER, DIRECTOR, COMMUNITY IMPROVEMENT RE: RESOLUTION ADOPTING AN AMENDED HOUSING INCENTIV~ PLAN PURSUANT TO DIRECTION FROM STATE HOUSING FINANCE AGENCY REVIEW DATE: DECEMBER 9, 1994 ITEM BEFORE THE COMMISSION: Consideration of approval of Resolution No. 99-94 which amends the Housing Incentive Plan adopted under Resolution No. 19-94, pursuant to the review and direction from the State Housing Finance Agency review who administers the SHIP Program. BACKGROUND: The City Commission adopted Resolution No. 19-94 at its regular meeting of March 8, 1994. This resolution adopted the Housing Incentive Plan (HIP) as proposed by the appointed Affordable Housing Commission pursuant to Florida State Statutes, Section 420,9076(6). The document was submitted to the State Housing Finance Agency for its approval. The amendments to the Plan affect the following items numbers: 7. Amended to provide an effective implementation date for this incentive. 10. Amended to clarify process the Affordable Housing Commission will use to review policies and code amendments affecting the cost of housing and provides an implementation date. Other items to be clarified will be done with the cover letter transmitting the Resolution and amended Housing Incentive Plan. The Committee reviewing the plan has requested additional information that resulted in minor amendments to the Housing Incentive Plan. These amendments were considered and approved by the Affordable Housing Commission at a special meeting on Friday, December 9th, 8:30AM. Thus, the required resolution amending the plan is before the City Commission for approval. RECOMMENDATION: Staff is recommending the City Commission approval of Resolution No. 99-9~mending the Housing Incentive Plan pursuant to direction from the State Housing Finance Agency. , · Agenda Item No.~ ·AGE~DA Date ~ .... ~2/9/94 Request to be placed on:, : Regular Agenda ..... Special Agenda Workshop Agenda when= . 2/L3/94 Descr~ptton of agenda item (who, wha~,,~here, how much)~ .. C~mm4 ~s~on approval of Resolution No.~-~ich amends the Housin~ Incentive Plan adopted under Resolution No. 19.94. ORDINANCE/ REQUIRED: NO Draft Attached: YES/NO RecommendatioN: Staff recommends approval J Department Head Signatures ~ Determination of Consistency with Comprehensive ~lan~ City Attorney Review/ Recommendation (if applicable)~ _ . Budget Director Review (required on all lte~s involving expenditure of funds): Funding avallable~ YES/ NO Funding alternatives~ (If applicable) Account No. & Description: Account Balance: Approved for agenda: NO .~~,.~.. ~ Hold Until: Agenda Coordinator Review: Received: ' Action: Approved/Disapproved CITY COMMISSI0,j FLORIDA HOUSING FINANCE AGENCY T~m~ N. TompkJns E. Ll~'d Ecd~to~, Jr. Nove~be~ 8, ~gg4 Edward L~, Jr. Carl H. May~ Pamela Y. Paul gERTIFIED ~IL T~sA. Stevens LJnda L~s Shelley · he Hono~sble ~hom~s Lynch, Hsyo~ City of Delray Beach 100 Northwest First Avenue Delray Beach, Florida RE: Delray Beach Local Affordable Housing Incentive Plan Dear Mayor Lynch: The Agency has received the Local Affordable Housing Incentive Plan (HIP) submitted by the City of Delray Beach. The Affordable Housing Advisory Committee and the local government are to be congratulated for their diligence in providing recommendations and implementing housing incentives in your jurisdiction. The SHIP Review Committee has reviewed the HIP to determine if it meets the requirements mandated in Section 420.9076, F.S. While there are important incentives in the HIP, it was the consensus of the Committee that additional information must be provided before the Incentive Plan can be approved. Please review the attached comments and incorporate those comments in the revised ~ncentive Plan. The amended Incentive Plan must be adopted either by ordinance, resolution or minutes from the local commissioner's meeting and submitted to the Agency within 60 days from receipt of this letter. Failure to submit the Incentive Plan within the 60 day period will result in the termination of the local government's SHIP funds and the recapture of any uncommitted SHIP funds from the county's local housing assistance trust fund. 227 NORTH BRONOUGH STREET, Suite 5000 · T^LL^H^ssee, FL 32301-1329 ' (904)488-4197 · F.-xs (904)4.35-9809 The Honorable Thomas Lynch, Mayor Nogem~f~8~,--i99~~--~ Page Two If the Agency may be of assistance to you as you are amending your Incentive Plan, please feel free to contact Mrs. Beverly Cliett, SHIP Program Administrator, at 904/488-4197. ~erely~ / SJL/oj cc: Ms. Lula Butler SHIP REVIEW CO;~ITTEE COM]~ENTS DELRAY LOCAL AFFORDABLE HOUSING INCENTIVE PLAN November 8, 1994 1. It was the consensus of the Review Committee that the Incentive Plan did not adequately address Incentive 10 which provides for a process of review of local policies, ordinances, regulations and plan provisions that significantly impact the cost of housing prior to adoption. The Incentive Plan must describe the process the Housing Advisory Committee will utilize to review policies, procedures, ordinances, regulations, etc. that will have a significant impact on the cost of housing prior to their adoption. Also, provide an implementation schedule for this incentive. 2. Page 2423 of the Land Development Code is provided as a reference for Incentive Two, Expedited Permitting Process for Affordable Housing Projects. Explain the significance of providing this document as a reference for expediting the permitting processed for affordable housing projects. 3. Page 3, Reduction of Parking and Setback Requirements, indicates a parking space may be within one foot of a property line if the unit is designated as an affordable housing unit. Provide an implementation schedule for this incentive and have the language incorporated in the Land Development Code the next time the code is amended. 4. The Affordable Housing Advisory Committee worksheets were not forwarded with the Incentive Plan. Please provide a copy of the committee's recommendations.