Affordable Housing Advisory Committee Review of Recommendations. Planning and Development Department Community Development Division March 10, 2015

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1 Affordable Housing Advisory Committee Review of Recommendations Planning and Development Department Community Development Division March 10, 2015

2 History of the State Housing Initiatives Partnership Program Twenty-two years ago, a diverse coalition of Florida s affordable housing advocates, business and industry groups, and faith-based organizations, worked together to create a dedicated revenue source for affordable housing. In 1992, the William E. Sadowski Affordable Housing Act was passed, raising the documentary stamp tax on deeds by ten cents per $ of property value, and created two housing trust funds. The first trust fund is administered by local governments, and supports the State Housing Initiatives Partnership (SHIP) program. Florida Statutes require that the SHIP funds be spent in the following manner: 1. Ship Program Spending Requirements a. At least 65 percent must be spent on homeownership activities; b. At least 75 percent must be spent on construction-related activities (including new construction and rehabilitation); c. At least 30 percent must be used to assist very low income households, and at least 60 percent must be used to assist low-income households; d. No more than ten percent of allocation can be used for administrative costs; five percent of program income; e. No funds may be spent on households earning over 140 percent of the median income; f. No more than 20 percent of funds can be spent on mobile homes. To utilize SHIP funding, local governments implement focused strategies which allow them to help homebuyers achieve the dream of homeownership, help homeowners remain in their homes through necessary rehabilitation and tax payment assistance, provide counseling to assist families with avoiding foreclosure, provide rental assistance, and to develop and/or rehabilitate rental housing communities. In 2010, the funds deployed through the Florida Housing Finance Corporation (including SHIP) resulted in more than 4.8 million dollars in economic input, generated 41,000 jobs, and created 1.7 billion dollars in labor income. 2 P a g e

3 History of the Affordable Housing Advisory Committee The legislation that created the Affordable Housing Advisory Committee (AHAC) in 1990, was designed to develop the Local Housing Incentive Plans for local governments. This legislation was passed as a result of the concerns raised by Florida homebuilders that the SHIP funds were being provided to local governments to support the accessibility and affordability of housing, yet local governments were also some of the largest contributors to rising housing costs due to developmental and administrative fees. The AHAC was initially instituted as a one-time committee, with the intent of addressing these concerns and developing incentives to maintain the accessibility and affordability of housing. As part of House Bill 1375, which passed in the 2007 legislative session, the AHAC was recreated with a larger scope and stricter staffing regulations. This was due in part to the increased availability of SHIP funding, and also due to further recommendations from the homebuilding community that local governments be held accountable for their impact on the cost of developing housing in their communities. The regulations require that staff from the local planning department and the local housing department work together in an integrated approach to create the incentive plan; in addition, the AHAC must submit a report every three years that includes recommendations on and evaluates the implementation of incentives for eleven distinct areas. The recommendations are: 1. The processing of approvals for development orders or permits for affordable housing projects are expedited to a higher degree than other projects, as defined in Section (7) and (8), Florida Statutes. 2. The modification of impact-fee requirements, including reduction of waiver of fees and alternative methods of fee payment for affordable housing. 3. The allowance of flexibility in densities for affordable housing. 4. The reservation of infrastructure capacity for housing for very-low-income persons, low-income persons, and moderate-income persons. 5. The allowance of affordable accessory residential units in residential zoning districts. 6. The reduction of parking and setback requirements for affordable housing. 7. The allowance of flexible lot configurations, including zero-lot-line configurations for affordable housing. 8. The modification of street requirements for affordable housing. 3 P a g e

4 9. The establishment of a process by which a local government considers, before adoption, the policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing. 10. The support of development near transportation hubs and major employment centers and mixed-use developments. Additionally, the local government must prepare a printed inventory of locally owned public lands suitable for affordable housing. Pasco County reinstated the AHAC in At that time, the AHAC set forth recommendations that focused on eliminating process barriers to affordable housing, and providing opportunities for continued education and training for those that sought to provide affordable housing opportunities. In 2011, the AHAC reconvened and although they made very few concrete recommendations, the discussion leading up to these recommendations was full of dynamic dialogue about the state of affordable housing, both rental and homeownership, in Pasco County. In 2014, the AHAC reconvened with new members to provide updated recommendations to the Board of County Commissioners (BCC). These recommendations intend to further define Pasco County s affordable housing policies and provide implementation methods and tools. 4 P a g e

5 Affordable Housing Advisory Committee Dates and Deliverables August 19, 2014 September-November 2014 December 3, 2014 December 19, 2014 Committee Members Appointed AHAC Meetings AHAC Public Hearing Local Housing Incentive Plan Sent to the Florida Housing Finance Corporation 5 P a g e

6 Affordable Housing Advisory Committee Recommendations Addressing Barriers to Affordable Housing 1. Propose an alternative affordable housing mechanism, such as accessory dwelling units, to allow for additional density within current approval framework for housing developments. 2. Lessen, or make more accommodating, the parking, setback, open space, minimum lot size, sidewalk, and building height criteria for those developments meeting specific affordable housing criteria. 3. Revisit target areas in the Comprehensive Plan to reflect those currently identified in the Community Development Five-Year Consolidated Plan. 4. Contemplate the revision of administrative processing procedures by granting further assistance to developers seeking to construct affordable housing. 5. Contemplate the reduction or elimination of fee and dedication requirements to further incentivize developers and contractors building and/or rehabilitating affordable housing units in targeted areas. 6. Evaluate typical cross sections currently adopted in the Land Development Code and determine if any revisions can be made in areas targeted for revitalization. 7. Evaluate rehabilitation and reconstruction requirements that are impediments to large-scale revitalization. Inclusionary Zoning 1. Develop a comprehensive, inclusionary zoning policy framework, including, but not limited to, recommended alternatives, mechanisms to utilize funding, monitoring, and administration needs, incentives for project-based construction, and geographic restrictions for fees to be expended. 2. Develop an inclusionary zoning ordinance that will implement the inclusionary zoning policies. Complete Nexus Study 1. Complete a comprehensive Nexus Study to identify the need for affordable housing in Pasco County and the appropriate mechanism for financing the gap between available and necessary housing. 6 P a g e

7 Affordable Housing Advisory Committee Recommendation No. 1: Address Financial and Procedural Barriers to Affordable Housing Land Development Code and Comprehensive Plan Implementation Barriers to Affordable Housing The committee used a list of barriers to affordable housing as its baseline, ranking them based on their role in hindering affordable housing opportunities in Pasco County. After the barriers were ranked, they were broken down into two types of barriers: procedural requirements, and requirements that increase cost to developers/homeowners. While we recognize that some of the procedural requirements may indirectly increase the cost of housing, the barrier is more in the length of time for processing or design to accommodate the requirements associated with the barriers, not the cost itself. Procedural Requirements 1. Barriers Identified: Parking, Setbacks, Open Space, Minimum Lot Size, and Building Height a. Recommended Course of Action to Address: Many of these concerns can be rectified through the alternative standard process at plan review; however, proposing an alternative affordable housing mechanism such as accessory dwelling units could also provide an additional option to allow for additional density within the current approval framework for housing developments. In addition, proposing that these requirements be lessened or more accommodating for those developments meeting affordable housing criteria would assist in creating further incentives for developers to construct affordable housing. Revisit targeted areas to reflect those currently identified by the Pasco County Community Development Division in its Consolidated Plan. b. Impact: Increases affordable housing; increases density to support transit. Deconcentrates affordable housing by providing opportunities for development and redevelopment. Encourages infill development. 2. Barrier Identified: Administrative Processing Procedures a. Recommended Course of Action to Address: Continue to monitor planning and development processes and procedures. If there is not sufficient processing timeframe adjustments as noted by the Board of County Commissioners, these processing procedures should be addressed. In addition, contemplate the revision of administrative processing procedures by granting further assistance to developers and contractors seeking to construct affordable housing. 7 P a g e

8 b. Impact: Expedites approvals, and makes affordable housing a policy priority 3. Barrier Identified: Fee and Dedication Requirements a. Recommended Course of Action to Address: Monitor and review fee schedule and relationship to decreased processing times. In addition, contemplate the reduction or elimination of these fees to further incentivize developers and contractors building and/or rehabilitating affordable housing in targeted areas. b. Impact: Reduces up front cost and incentivizes developers to construct affordable housing. Requirements that Increase Cost to Developers/Homeowners 1. Barrier Identified: Sidewalk Requirements a. Recommended Course of Action to Address: Many of these concerns can be rectified through the alternative standard process at plan review; however, proposing an alternative affordable housing mechanism such as accessory dwelling units could also provide an additional option to allow for additional density within the current approval framework for housing developments. b. Impact: Increases affordable housing; increases density to support transit. 2. Barrier Identified: Street Width a. Recommended Course of Action to Address: Evaluate other types of housing units (such as accessory dwelling units). Evaluate the Land Development Code to determine if it makes sense to impose a typical cross section in an older neighborhood looking to revitalize/rehabilitate. b. Impact: Increases affordable housing; increases density to support transit. Reduces overall cost by providing additional density on existing lots. 3. Barrier Identified: Rehabilitation/Reconstruction Requirements a. Recommended Course of Action to Address: Evaluate conditions that can be addressed that are impediments to large scale revitalization; limited to changes to some rehabilitation standards based on building code requirements. b. Impact: Encourages infill development and redevelopment, and allows for existing communities to be sustainable. 8 P a g e

9 Affordable Housing Advisory Committee Recommendation No. 2: Develop an Inclusionary Zoning Policy and Ordinance The second recommendation of the AHAC was to develop an inclusionary zoning policy and ordinance. To implement this recommendation, the committee broke down the recommendation into three specific steps: developing the inclusionary zone policy framework; creating an inclusionary zoning/nexus fee task force to review the proposed policy; and developing and adopting the inclusionary zoning ordinance. Inclusionary Zoning Policy Development The committee recommended that any inclusionary zoning policy must address new construction and redevelopment, as well as provide opportunities for rental and homeownership. One of the unique aspects the committee asked to review was the potential for using fees generated through this program for rehabilitation to assist in maintaining existing communities. In addition, the committee also agreed that geographic restrictions for use of funds needed to be established, to ensure that housing is made available to individuals working in supportive service fields necessary to support residential and nonresidential development. In addition, geographic restrictions would ensure that funds would be reinvested in communities where redevelopment is occurring. It was also determined that, while incentivizing developers to construct affordable housing units within the neighborhood being developed is preferred, not all developers have the capacity or desire to construct affordable housing. This triggered significant discussion related to fee in lieu and other mechanisms to fund affordable housing within the County. These discussions were formulated into an inclusionary zoning action plan, which identified the following recommended courses of action and associated impact. Action Plan Objectives a. Recommended Course of Action: Evaluate alternatives to inclusionary zoning, including but not limited to fee in lieu, land dedication, construction off site, and development right transfer. b. Impact: Create comprehensive inclusionary zoning policy, while addressing benefits and possible weaknesses of the various alternatives used in other jurisdictions. Identify the best practices for Pasco County, with the knowledge of existing affordable housing needs and supply. c. Recommended Course of Action: Identify mechanisms to utilize funding, such as rental, homeownership, new construction, and rehabilitation. 9 P a g e

10 d. Impact: Identify types of uses allowable under proposed inclusionary zoning policy and ordinance. e. Recommended Course of Action: Identify monitoring needs, funding opportunities and limitations, and responsible parties. f. Impact: Creation and sustainability of long term affordability practices and restrictions; identification of administrative funds needed for implementation. g. Recommended Course of Action: Identify appropriate incentives for projectbased construction, in lieu of off site development. h. Impact: Determine what policy priorities are for construction on site versus construction off site. Financial incentive ties to policy priority. i. Recommended Course of Action: Identify geographic restrictions for fees to be expended, if fee in lieu is an opportunity identified for consideration. j. Impact: Create geographic restrictions for affordable housing construction, ensuring that affordable housing is available to those that will work in fields necessary to support residential and nonresidential development; reinvest funds in neighborhoods where redevelopment is occurring. k. Recommended Course of Action: Develop Inclusionary Zoning Ordinance l. Impact: Implement an effective, comprehensive affordable housing strategy Inclusionary Zoning/Nexus Fee Task Force Upon receipt of the options as prepared by the County staff, the inclusionary zoning/nexus fee task force will be developed to review and rank them in order of feasibility. This committee shall contain representatives from the development and affordable housing community that have insight into the impacts and benefits of the inclusionary zoning policy recommendations. The highest ranked recommendations will be developed into an inclusionary zoning ordinance that will be presented to the BCC for approval. Inclusionary Zoning Ordinance Once the recommendations are ranked by the task force, a draft ordinance will be developed and presented to the BCC for their review and approval. 10 P a g e

11 Affordable Housing Advisory Committee Recommendation No. 3: Complete a Nexus Study The AHAC recommended that a comprehensive Nexus Study be completed to identify the need for affordable housing in the County and identify the appropriate mechanism for financing the gap between available and necessary housing. This study will also determine the connection between growth in various sectors of the economy and the need for affordable housing, questions that the data currently available related to affordable housing does not answer. This study should be completed by a consultant with experience in completing affordable housing Nexus Evaluations, and should provide baseline information that will assist the County in making recommendations on inclusionary zoning policies and procedures. If the BCC determines that inclusionary zoning is not the appropriate course of action the findings of the Nexus Study, as well as the recommendations from staff and the task force, will be useful for the implementation of accessory unit policies and other affordable housing options. 11 P a g e

Next Steps: Work Plan and Estimated Timeline FY15 Q3

FY16 Q1 Begin Nexus Study Barriers Analysis (LDC)

Discuss Results FY17 Q4 Inclusionary Zoning Ordinance

12 Next Steps: Work Plan and Estimated Timeline FY15 Q3 Program Budget Development (Including Scope of Work) FY16 Q1 Begin Nexus Study Barriers Analysis (LDC) Begins FY16 Q4 Nexus Study Complete BCC Workshop to Discuss Results FY17 Q4 Inclusionary Zoning Ordinance Adoption FY18 Q4- FY19 Q2 Evaluation Cycle to Review Ordinance 12 P a g e

Affordable Housing Advisory Committee. Meeting Minutes. November 10, 2014

Affordable Housing Advisory Committee Meeting Minutes November 10, 2014 Kept documents initially created for October 27, 2014. Distributed meeting minutes from October 20 meeting. Motion to Approve; Seconded.