MPDU Ordinance Traditional Neighborhood Housing Program

Transcription

1 MPDU Ordinance Traditional Neighborhood Housing Program New Castle County Council December 2, 2014

2 New Castle County Federal Housing Programs $35.53 Million in 2014 $4.0 Million CDGB, Home Investment Partnership & Emergency Solutions 3,643 people 89% below 50% AMI $17 Million Section 8 4,200 people seniors, disabled, children $14.53 Million Stabilization of Existing Neighborhoods (Foreclosure Crisis) one time grant Need Not Addressed Working Families

3 NCC Housing Needs DSHA - Delaware Housing Needs Assessment New jobs pay less than many pre-recession jobs, less $ available for housing Cost Burdened: 46.4% renters 23.2% owners Fewer homeowners: greatest drop is year olds followed by under 35 year olds More households are renters than any other time in the past 20 years; increasing demand for rental housing

4 Need - NCC Income Guidelines Based upon the Philadelphia-Camden-Wilmington Metropolitan Statistical Area FY $78,800 Average Median Income - family of four Number in Household Less than 75% of Median Income Less than 90% of Median Income 1 $41,400 $49,680 2 $47,250 $56,700 3 $53,175 $63,810 4 $59,100 $70,920 5 $63,825 $76,590 6 $68,550 $82,260

5 History: Issues with WFH Projects Status No. Plans Total Lots WFH Lots Expired Recorded Active Projects Total Lots WFH Lots High Hook Farms Preserve at Robinson Farm Marra Landing 27 6 The Reserve at Becks Pond Goldsborough Farm Bayberry North TOTAL ACTIVE 2,

6 Issues with Existing Ordinance Expired WFH Projects units Price Point market rate 120% (AMI) - 72 units occupied by qualified applicants - 4 owner occupied Voluntary with substantial density increase Impacts on roads, schools Quality of projects Back door leverage Developers seek rezonings rather than voluntary bonuses Implementation Need qualified applicants

7 Approach for New Ordinance Focus on Rezonings Developers have determined market is strong enough for increased density Pro Formas + 70% increased density S to ST: 415% - 550% increased density Rezoning Gross Density Increase from S (Suburban) to ST (Suburban Transition) Residential Development Option Gross Density S - zone Gross Density ST - zone Percent Increase in Gross Density Single-family detached % Open Space Planned %

8 New MPDU Key Provisions Required on Rezonings Rezonings that contain 25 or more dwelling units must include moderately priced dwelling units (MPDUs) NEW: Voluntary Incentive Program Available on any major land development proposing dwelling units Less than 70% increase in unit number 10% MPDU set-aside requirement Up to a 20% density bonus More than 70% increase but less than 100% in unit number 15% MPDU set-aside requirement 100% or more increase 20% MPDU set-aside requirement Up to 10% of the units must be MPDUs

9 New Castle County Fair Housing FY2014 HUD Funding The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status NCC is required to sign a certification to undertake fair housing. Support: Delaware Human Relations Commission strongly supports ordinance Create Inclusionary Communities Eliminate Barriers to Fair Housing Office of State Planning strongly supports MPDU ordinance Encouraged greater affordability period 84% Homeownership Programs : 30+ years 33% Homeownership Programs : 99 years

10 HUD Certification Affirmatively Further Fair Housing The jurisdiction will affirmatively further fair housing, take actions to overcome the effects of any impediments, and maintain records of actions.

11 Traditional Neighborhood Housing Program Ordinance No Ordinance No Sponsor: Penrose Hollins

12 Key Provisions of the Traditional Neighborhood Housing Program Required on Rezonings Rezonings that contain 25 or more dwelling units must include moderately priced dwelling units (MPDUs) Less than 70% increase in unit number 10% MPDU set-aside requirement Voluntary Incentive Program Available on any major land development proposing dwelling units Up to a 20% density bonus More than 70% increase but less than 100% in unit number 15% MPDU set-aside requirement 100% or more increase 20% MPDU set-aside requirement Up to 10% of the units must be MPDUs

13 Income Eligibility Maximum Price Window of Eligibility 50% of ownership MPDUs must be sold to qualified applicants at or below 90% AMI 50% of ownership MPDUs must be sold to qualified applicants at or below 75% AMI 100% of rental MPDUs must be rented to qualified applicants at 75% or below AMI The MSP for units sold to 90% AMI group shall be priced at a qualifying level at or below 80% AMI The MSP for units sold to the 75% AMI group shall be priced at a qualifying level at or below 65% AMI The MRP for rental units shall be priced at a qualifying level at or below 65% AMI

14 Maximum Allowable Sales Price for 90% AMI target $68,100 AMI-family of 4

15 Maximum Allowable Sales Price for 75% AMI target $55,315 AMI-family of 4

16 Maximum Rent Calculation

17 Offsite MPDUs MPDU s may be located off-site if: There is significant hardship to locate them within development site or a better public purpose would be satisfied Conditions must be met for offsite MPDUs No more than 50% may be located offsite Offsite MPDUs must be ownership units New rehabilitation construction standards to meet federal NSP standards May partner with a housing agency for MPDU production Location parameters Problem property, abandoned, distressed properties can be rehabilitated Market Value Analysis ( MVA ) market cluster

18

19 Payment of a Fee-in-Lieu Available only for rezoning applications not the incentive program Fee-in-lieu may be approved by the Department if additional fees and costs associated with home ownership in the community would create a severe cost burden to a qualified household (monthly housing costs (including utilities) exceed 50% of monthly income). Fee-in-lieu amount is calculated as the difference between listed sales price of a market rate unit and MPDU of the equivalent type. Sales price capped at $500,000.

20 Affordability Controls 15 year period calculated from date of first sale. All reasonable efforts must be made to sell the MPDU to another qualified applicant for at the Resale Maximum Sales Price (RMSP) Calculation. Alternative calculation Only available if MPDU has been actively marketed for 180 continuous days and seller has not received an offer for the RMSP from a qualified applicant. MPDU can be sold to any purchaser but a portion of any resale profit must be paid to NCC according to a 2-step calculation allowing seller to appreciate a proportionate share of the profit. Required Documents: Master Development Agreement, deed restrictions, buyer agreement, sales and rental agreements

21 Housing Trust Fund Contributions All dwelling units that are not MPDUs are required to pay a permit surcharge of $12.00 per $1,000 permit construction valuation In-lieu fees NCC s portion of the resale profit Trust funds will be focused on housing programs for low and very low income households. Current average cost per home is ~$1,000 Current balance is ~$550,000

22 Inclusionary zoning practices are now mandated by courts Since the 1960s, the evolution of law has required local government to abandon exclusionary zoning practices and adopt inclusionary zoning provisions. Under the law, it is no longer legally permissible to simply refrain from discriminatory practices in zoning and housing. There must be a realistic opportunity for the construction of its fair share of present and prospective regional need for low and moderate income housing. We are now obligated under federal, state and County law to take affirmative measures to create housing opportunities for low and moderate income households there is a shift from passive remedies that eliminate to the mandatory use of inclusionary zoning.

23 Quality of Life Act Requirements in the Comprehensive Plan: A housing element that is consistent with county housing plans, standards and principles. Such housing plans shall be in accordance with state and federal rules and regulations and the housing plan or housing element of the comprehensive plan shall include the following: d. The provision of adequate sites for future housing, including housing for low-income and moderate-income families, group home facilities and foster care facilities, with supporting infrastructure and public facilities. f. The formulation of housing implementation programs. g. Demonstrated coordination with the State Housing Authority.

24 NCC Comprehensive Plan Update Chapter 8 is the housing component 8.6 describes the County s obligation to affirmatively further fair housing. Refraining from discrimination is no longer acceptable. 8.7 provides that the County uses traditional neighborhood housing as one method to ensure that diverse options exist throughout the County to accommodate a wide range of incomes. Goal 3 is to promote and increase traditional neighborhood housing opportunities. Goal 6 is to work with appropriate agencies to provide homeownership opportunities for low and moderate income households. 8.8 discusses the consolidated plan and its goals of increasing homeownership opportunities and ensuring equal opportunities in housing.