Chapter 3: Community Form

Attachment A Housing related Policies, Standard Operating Procedures, Development Guidelines and Implementing Actions of the July 2007 Draft CBJ Comprehensive Plan. Some policies and implementing actions (IAs) of the 1995 Comp Plan have been carried over to the 2007 draft Plan. Where that happens, the number of the 1995 Policy or IA is noted at the end of the sentence in [brackets]. Policies, Standard Operating Procedures (SOPS), Development Guidelines (DGs) and Implementing Actions (IAs) without a 1995 notation in brackets are new and an explanation or planning rationale for that new item is presented. Staff comments on the July 2007 proposed SOP, DG or IA are noted after the item in brackets and in this font type. Chapter 3: Community Form POLICY 3. IT IS THE POLICY OF THE CBJ TO BALANCE AVAILABILITY OF SUFFICIENT LAND WITHIN THE DESIGNATED URBAN SERVICE AREA BOUNDARY THAT IS SUITABLY LOCATED AND PROVIDED WITH THE APPROPRIATE PUBLIC SERVICES AND FACILITIES TO MEET THE COMMUNITY S FUTURE GROWTH NEEDS AND THE PROTECTION OF NATURAL RESOURCES, FISH AND WILDLIFE HABITAT AND SCENIC CORRIDORS. [1995 Policy 2.2] Standard Operating Procedures 3.1. As part of the Comprehensive Plan implementation and updating process (see Chapter 18), monitor land availability for various land uses and designate adequate land on the Comprehensive Plan Land Use Map, as appropriate. An expansion or other amendment to the Urban Service Area boundary would be processed as an amendment to the Comprehensive Plan Land Use Maps. [The 1995 Plan is silent on how the Urban Service Area boundaries should be amended. Section 49.10.70 of the CBJ Land Use Code states that the Comp Plan should be reviewed for amendments every two years. Policy 18.1 in Chapter 18 of the 2007 Plan states that the Plan should be reviewed every four years and amended as necessary to reflect changing conditions and needs and to consider and enact amendments to the Plan and Land Use Maps, including amendments to the Urban Service Boundaries, at any time the Planning Commission and Assembly determine that amendments are needed. The 2007 Draft Plan Land Use Maps identify the Urban Service Area boundaries (USAB) for the CBJ and the boundary is shown on each Subarea Map of the Chapter 11 Land Use Maps. This SOP requires that any amendment to the USAB should be processed as a Comp Plan Land Use Map 2

amendment to ensure its consistency with the Policies of the Comp Plan.] 3.2. Develop Capital Improvement Plans and budgets for public facilities and services that are needed to support the land use pattern determined in this Comprehensive Plan. Priority should be given to support infrastructure needed to facilitate compact, in-fill residential development along transit corridors within the Urban Service Area. [1995 IA 2.2.6] [The last sentence of 3.2, beginning with Priority should be given to is new, and relates to the Plan s emphasis on providing adequate utilities and road access to facilitate development of the 60 plus vacant parcels located within one-quarter mile walking distance of Capital Transit express bus routes. Those parcels should be fully developed, or deemed unbuildable and so designated on the Land Use and zoning maps, prior to any extension of the Urban Service Area boundary (USAB).] Development Guidelines 3.4. When considering rezoning applications of land located within the Urban Service Area from an industrial zoning district to a commercial, mixed use or residential district, ensure that there is an adequate supply of land suitable for manufacturing or heavy industrial use elsewhere in the Urban Service Area in an area that can be provided heavy weight-carrying-capacity roads and sewers [see also D.G. 10.6.3]. [This is not a housing-related DG, although the following planning rationale is provided in order to understand why IA 10.4.7 recommends the prohibition of housing in heavy industrial zones. This DG is intended to protect the very limited industrially designated lands in the CBJ from conversion to non-industrial use. It has been demonstrated that non-industrial uses, such as retail, office and dwellings, create traffic congestion; complaints about heavy truck traffic, dust, fumes and noise; the price of land doubles; and the availability of adequate sized parcels for industry disappears. Two currently Industrial zones are proposed for conversion from Industrial IND to a new, Heavy Commercial/Light Industrial (HC/LI) land use designation on the Draft Comp Plan Land Use Maps because these areas have already been substantially converted to non-industrial uses. These two HC/LI areas are: (1) the area around Costco and the brewery, and (2) the area north of the airport. Lands currently designated Industrial on the Comp Plan land use maps and which would be included in a new, heavy industry-only land use category (IND) would be the areas around (1) Industrial Boulevard and (2) the big and little rock dump. New IND lands would be the areas (1) above the prison and (2) Honsinger s pond near Temsco heliport. The results of the business survey conducted for this Plan Update indicated the CBJ needs about ten 3 to 5 acre parcels and about one 20-acre parcel to accommodate expansion or relocation needs of existing industry. These industrial businesses need flat, dry land that is accessed by heavy-loadcarrying capacity roads. Unfortunately, the Plan Update buildable sites analysis did not find new suitable flat, dry land for industry. Rather, two CBJ-owned parcels currently designated for 3

industry were found to lie entirely within Class A wetlands and are not suitable for development. The area above the prison has potential in the mid- and long-term for industry when the gravel extraction activities are completed. Because industrial lands are needed for export industries and can be accommodated in very few locales within the CBJ, the Plan would protect the new IND zones from encroachment from office, retail or residential uses. The word ensure in DG 3.4 is intended to be strict for this reason.] 3.5. When considering rezoning applications of land located within the Urban Service Area (a) from a non-residential zoning district to a residential or mixed use district, (b) from a low-density residential district to a higher-density residential district, or (c) from a lower building height district to a higher building height district, promote the development of new medium- to high-density residential units which would include dwelling units affordable to low-income households as a condition of the rezoning. The affordable units should be dispersed throughout the development, constructed at the same time as the market-rate units, and priced or rented to households with incomes no greater than 80 percent of the CBJ Median Family Income (MFI) level by household size, as established annually by the U.S. Department of Housing and Urban Development (HUD). [This DG seeks to require inclusion of some percent or proportion of low-income affordable housing units when higher density or intensity rezoning proposals are approved by the Planning Commission. This is a common strategy for cities that experience a shortage of low-to-moderate income affordable housing, or housing priced below market rate. The rationale for this rezoning condition of approval is that the higher density or taller building height is a discretionary approval and an economic benefit to the Applicant and, in exchange for this economic benefit, the Applicant should contribute to the public good by providing needed affordable housing. This approach is voluntary on the part of the Applicant/property owner, as it would only be applicable when an Applicant seeks an up-zoning. The first sentence can be clarified by stating that medium density residential development is deemed a minimum of 10 units per acre and high-density residential development is deemed a minimum of 30 units per acre and could go as high as 60 units per acre. The first sentence could also be clarified by stating that low-income households would be deemed households earning 80 percent or below of the HUD-defined Medium Family Income (MFI) for Juneau, by size of household. This 80 percent of the MFI has been selected by the Affordable Housing Commission as the prime target population for which to seek new affordable housing. The Commission acknowledges the need for very low-income housing, and rental housing, but they believe an inclusionary affordable housing requirement, such as this, would be economically feasible and most likely to achieve at the 80 percent target. The second sentence of DG 3.5 can be deleted if an Inclusionary Affordable Housing Ordinance is adopted, per Implementing Action 4.5.4 (page 19 of this memo).] Implementing Action 4

3.6. Revise the Land Use Code to allow, in zoning Transitional (T) zones, the higher density zoning designation to be allowed upon petition by the property owner and approval by the Community Development Department (CDD) Director, rather than by a rezoning action, provided that, as a condition of approval, the property owner ensures the provision of adequate municipal water and sewer service and provides adequate roadway capacity to serve the increased population. For example, a D-3 (T) D-10 could transition to D-10, and a D-l (T) D-5 could transition to a D-5 as a zoning map amendment, with CDD Director s approval, upon the financial assurance of provision of the water, sewer, road and intersection capacity at a LOS C or better prior to its occupancy. [This IA would facilitate in fill residential development within the Urban Service Area where there are Transitional zones, such as in West Mendenhall Valley and in North Douglas. It is acknowledged that such rezonings are unpopular with homeowners on adjacent lots if their lots are at the lower density. Nonetheless, those homeowners enjoy municipal sewer service and the CBJ must make the most efficient use of this resource by accommodating the higher density proposed in the already-designated Transition zone. In order to insure a standard of livability the caveat that the new development must not lower the road or intersection Levels of Service has been added to this IA. Should the Commissions desire, the following language could be added to the IA to ensure design compatibility of the new development with the surrounding neighborhood: The new development shall be designed to satisfy the design guidelines of Policy 10.5 of this Plan. see page 32 of this memo for that language.] POLICY 3.1. IT IS THE POLICY OF THE CBJ TO PROMOTE COMPACT URBAN DEVELOPMENT WITHIN THE DESIGNATED URBAN SERVICE AREA TO ENSURE EFFICIENT UTILIZATION OF LAND RESOURCES AND TO FACILITATE COST EFFECTIVE PROVISION OF COMMUNITY SERVICES AND FACILITIES WHILE BALANCING PROTECTION OF NATURAL RESOURCES, FISH AND WILDLIFE HABITAT AND SCENIC CORRIDORS. [1995 Policy 2.3] Standard Operating Procedures 3.1.1. As part of an orderly update of the Comprehensive Plan, the CBJ reviews and maintains an Urban Service Area boundary that defines the limits within which the full range of urban services, such as water and sewer, will be provided by the CBJ. Such services should not be provided outside the Urban Service Area. After a thorough review of buildable land within the Urban Service Area, the CBJ may seek to extend the Urban Service Area boundary to provide adequate land for compact development at a minimum residential density of 10 units per gross acre. [This was converted to a SOP from the 1995 IA 2.3.2 because it describes a standard procedure. The 1995 IA 2.3.2 states: Adopt an urban service boundary which defines the limits within which the full range of urban services, such as water and sewer, will be provided by the CBJ. Except for fulfilling existing commitments or serving new growth areas, such services should not be provided elsewhere. Delineate the urban service boundary by ordinance in the Land Use Code. The 2007 language reiterates this 1995 language 5

but, in SOP 3.1.1, recommends that amendments to the Urban Service Area should be conducted as a Comp Plan amendment, of the Comp Plan land use maps, rather than as a Title 49 Land Use Code zoning map amendment procedure.] 3.1.2. Adopt a Capital Improvement Program (CIP), which schedules community sewer, water, storm drainage, transportation improvements and recreational facilities for all areas within the Urban Service Area. [1995 IA 2.3.4] 3.1.3. Establish specific policies and land use categories and land use map designations for the full range of needed land uses and activities with an emphasis on compact development of commercial and residential uses along express (fast service to distinct destinations) public transit corridors. [1995 IA 2.3.5] Chapter 4: Housing Element POLICY 4. IT IS THE POLICY OF THE CBJ TO FACILITATE THE PROVISION AND MAINTENANCE OF SAFE, SANITARY AND AFFORDABLE HOUSING FOR ITS RESIDENTS. Standard Operating Procedures 4.1. Fund, or assist in securing funding for, emergency shelters, transitional housing, permanent supportive housing, and appropriate supportive services for people who are homeless or near homeless, particularly families and unaccompanied youth. [This SOP describes the current procedure of the CBJ, through the Social Services Advisory Board, and other advisory committees. The Juneau Homeless Coalition recommends that this procedure be listed as an SOP in the Comp Plan.] Implementing Actions 4.2. Report, on an annual basis, the inventory of housing stock and vacancy rates in the CBJ, new housing permit review and construction activity, and any loss of housing due to demolition, abandonment and conversion of dwelling units to non-residential use or, to the extent possible to track, to non-year-round occupancies. 4.3. Update the CBJ Housing Situation Report every two years and monitor change in housing conditions and assess whether policies, programs, guidelines and other mechanisms are achieving their objectives. 6

[IAs 4.2 and 4.3 are an expansion of 1995 IA 2.8.1 which states: Monitor vacancy rates and housing activity, and report findings twice a year. The vacancy rate goal for each housing type should be less than 5 percent. ] 4.4. Provide support to the CBJ Affordable Housing Commission whose mission is to develop, implement and monitor an affordable housing strategic plan to increase the stock of safe, sanitary and affordable housing for all CBJ residents. [This is a new IA that responds to the Assembly s support for strategies to increase the supply of affordable housing in the CBJ. The CBJ Affordable Housing Commission (AHC) promotes strategies, including CBJ policies, ordinances and operating procedures, to facilitate its development. This IA acknowledges the AHC s Mission and the close relationship their work has with CDD s and the Planning Commission s Mission and operations.] 4.5. Facilitate the provision of special needs housing and their supportive services in residential neighborhoods that are readily accessible to public transit, shopping, public amenities and supportive services. [This IA responds to the desires of the Social Services Advisory Board (SSAB) and the Homeless Coalition to facilitate the permitting and to secure CBJ-owned land, to develop housing designed for persons with limited mobility and for persons who need supportive services. This can also be an element of a CBJ sustainability plan to address the needs of persons who need supportive housing to finish schooling and/or avoid or end substance abuse.] 4.6. Immediately prepare and adopt a Ten Year Plan to End Homelessness in the CBJ. [The Homeless Coalition, the SSAB and the AHC suggest the word immediately to give a sense of urgency in providing funds to conduct the Plan within the next CBJ budget.] 4.7. Assist in the establishment and maintenance of an effective integrated client assessment and referral system for homeless and near-homeless residents which links all housing, medical and social service providers to develop greater efficiencies, client tracking and program funding and evaluation tools. [The Homeless Coalition urges this IA and states that, although some work has begun on developing portions of an integrated client assessment and referral system, the system needs more work to be effective. Such a system would save money and provide better service to clients by eliminating duplication and delays, and would provide service to clients when it is critically needed.] POLICY 4.1. IT IS THE POLICY OF THE CBJ TO FACILITATE THE PROVISION OF AN ADEQUATE SUPPLY OF VARIOUS HOUSING TYPES AND SIZES TO ACCOMMODATE PRESENT AND FUTURE HOUSING NEEDS FOR ALL ECONOMIC GROUPS. Standard Operating Procedures 7

4.1.1. Designate on the Comprehensive Plan Land Use Maps adequate sites and supporting infrastructure within the Urban Service Area Boundary to accommodate a diversity of housing types, size, price and types of neighborhood scale and character to satisfy the desires of all residents. [1995 IA 2.8.3] 4.1.2. Vacancy rates for all types of CBJ housing units should not fall below 5 percent. The CBJ should monitor the inventory of all types of housing and should focus efforts, funding and resources on producing the types of housing that have not yet reached this threshold. [1995 IA 2.8.1] 4.2.3. Once a 5 percent vacancy rate, per housing type, is established, the CBJ should seek and facilitate new housing production, for all types, at an annual rate that mimics the growth rate of new households in the CBJ, in order to maintain this 5 percent vacancy rate objective. [1995 IA 2.8.2] Implementing Actions 4.1.4. Upgrade the CDD capability to track and monitor development activity and vacancy rates. Refine the CDD vacancy analysis, and its ability to estimate CBJ housing demand by type of housing. Track the impact of mining development and tourism on the housing stock and vacancy rate. [1995 2.8.9] 4.1.5. Review planned unit development (PUD) provisions in the Land Use Code to ensure maximum opportunity for flexible siting, design, and construction of residential developments. Clustering of new structures and provision of mixed densities within each new subdivision should be encouraged. [1995 IA 2.8.6] 4.1.6. Provide land use incentives, such as increased densities and building heights and lowered parking requirements, to induce the private sector to build Single Room Occupancy (SRO) or efficiency or compact living unit developments in Downtown Juneau, in Mixed Use Districts, in shopping centers, and near the University. [1995 IA 2.8.11] 4.1.7. Support the preservation of rental housing by discouraging or prohibiting the conversion of rental housing to transient housing or non-residential uses. [It is noted that the word prohibiting in this IA would require a CBJ ordinance prohibiting such conversions. Such an ordinance could require the Commission to deny an application for conversion if certain criteria were not met, such as a finding that there was not a 5 percent vacancy rate for the type of housing that was proposed for conversion. The ordinance could allow the Commission to require, as a condition of approval, some replacement housing or an in-lieu of replacement housing fee to be paid by the Applicant. With the word discourage, the Commission would have to make the difficult decision as to whether to approve or deny such an application. There is always the danger that a property owner defers maintenance on residential structures and units therein until they deteriorate and are uninhabitable and then declare that they need to convert the building and units to transient housing or a non-residential use in order to finance needed improvements to the structure. 8

Staff suggests deleting the reference to prohibiting conversions and using the word discouraging and adding language stating that the CBJ should amend the Land Use Code to require a Conditional Use Permit for such conversion, along with language seeking replacement affordable rental housing or an adequate in-lieu fee as a condition of approval of the CUP to effectively discourage these conversions.] 4.1.8. Support funding mechanisms that can create new rental housing, such as CBJ housing bonds, a local land and/or housing trust, or tax increment financing. [The CBJ does not have a Housing Department or a Redevelopment Agency with which to seek and administer State or Federal grants, loans or tax credits or relief. Local non-profit housing organizations do a very good job in seeking and managing grants and loans to produce and operate affordable housing, but they do not have tax-increment financing authority that can facilitate public-private partnerships to produce rental housing. The CBJ has very little land that is suitable for housing development as most of it is steep, contains high-value wetlands and is costly to develop. Rental housing is the most difficult type of housing to build due to federal tax policies, the cost of land, construction and operation, and the gap between those costs and the ability of most tenants to cover those costs in rental rates. Housing and land trusts and redevelopment authority may be strategies to pursue in order to collaborate with non-profit and for-profit residential developers and property owners to put together a package of financing strategies to produce new rental housing. This IA would urge the CBJ to study those types of options. Please note that this IA could be combined with IAs 4.2.8 and 4.3.11 that also recommend similar financing strategies.] 4.1.9. Support increasing the supply of low-income affordable rental housing by providing CBJowned land at discount prices to non-profit housing developers as well as needed infrastructure (water, sewer, roads), higher densities and, where appropriate, higher building heights. [Please note that staff suggests adding the language shown in bold font.] [This IA is a rewording of 1995 IA 2.8.10 which states: Inventory, assess, and make available CBJ lands for public and non-profit development proposals that will provide affordable housing. Offer these lands at a negotiated value and make provisions for a timed/sunset clause for development. ] 4.1.10. Facilitate the development of accessible housing with appropriate supportive services for residents with special needs throughout all neighborhoods within the Urban Service Area. [This is a repeat of the 2007 IA 4.5 and could be combined with that IA or simply deleted.] 4.1.11. Investigate the costs, benefits and implications to the CBJ affordable housing market of adopting a new Comprehensive Plan policy to encourage new housing and major rehabilitation of existing housing to be designed with a wide doorway, at least one zero-step entrance, and a firstlevel bathroom which responds to Universal Design and Visitability principles. Exceptions to such a policy would be housing on parcels where terrain would not permit wheelchair accessibility. 9

[This is compromise language to address the concerns of the Affordable Housing Coalition and SAIL, Inc. who seek single-family homes to be built to Universal Design principles, and the concerns of the CBJ Building Advisory Committee who want a wholly-market-driven approach to the subject. The Building Advisory Committee members state that if homebuyers want Universal Design features, they will ask for them and pay for them and the builder will provide them. The Affordable Housing Coalition and SAIL, Inc. members state that that approach works for customhome buyers, but does not work for purchasers of spec homes or existing homes that cannot easily be retrofitted to fit the needs of the less-mobile buyer. The compromise is that this IA seeks a study to identify the costs and benefits of how the CBJ might encourage new homes to be designed and built to Universal Design and Visitability principles.] POLICY 4.2. IT IS THE POLICY OF THE CBJ TO DESIGNATE ON LAND USE MAPS AN ADEQUATE SUPPLY OF BUILDABLE LAND WITHIN THE URBAN SERVICE AREA, AND PARTICULARLY ALONG TRANSIT CORRIDORS, FOR RESIDENTIAL USE AT DENSITIES THAT CAN PRODUCE HOUSING AFFORDABLE TO ALL ECONOMIC GROUPS. Standard Operating Procedure 4.2.1. Continue to monitor and, when necessary, designate an adequate amount of vacant land for residential development on the Comprehensive Plan Land Use Maps. Densities within the USAB and New Growth Areas should foster compact development at medium- to high-densities. As a target goal for compact development, a minimum density of ten dwelling units per acre for residentially zoned lands within the USAB would make prudent and efficient use of these limited land resources. A density of 30 dwelling units per acre, or greater, along transit corridors is recommended to produce affordable housing and to make efficient use of transit services therein. [This is an expansion of 1995 IA 2.8.3. which states: Designate an adequate amount of vacant land for all types and densities of residential development on the Comprehensive Plan Land Use Maps. The expansion language emphasizes the desire to urge compact development and to make the most efficient use of buildable lands within the USAB and New Growth Areas.] Implementing Actions 4.2.2. Amend the Title 49 Land Use Code to allow rezoning requests to medium-to-high density districts within the Urban Service Area to be requested by a property owner at any time of the year. The rezoning request should be accompanied by a conceptual development plan that outlines access routes, internal circulation, connections to adjacent subdivisions or neighborhoods, building sites, densities, buffer zones, recreation and open space/natural areas facilities, if appropriate, and parking areas. The conceptual plan should provide assurances for adequate privacy and buffers to mitigate any potential project-specific noise, light and glare, or privacy concern that may affect an adjacent residential neighborhood(s). The Applicant should also provide assurances that the development would not exacerbate Levels of Service (LOS) at intersections serving the proposed project where, at 10

the time of application, the LOS is C or worse. [Currently, the Land Use Code allows property owners to request rezonings only in January and July. This IA would amend the Code to allow greater flexibility as to when a rezoning request could be submitted. It would provide guidance as to what elements should be included with that rezoning request. The IA also supports the current policy and Code provision that new development should not degrade traffic flow within the environs, thereby reducing neighborhood livability, by reiterating the Level of Service (LOS) C as a development standard. If the Commission determines that a LOS C is not to be held as a livability standard, the following language can be added at the end of the IA as a new sentence: Where Levels of Service are at C or worse at the time of the rezoning application, the proposed project must be designed to facilitate walking, bicycling and public transit or private shuttle service to transfer stations to minimize vehicle dependent travel and maximize transit or non-motorized modes of travel to, and throughout, the development. This could include establishing bicycle lanes and pedestrian pathways through the development to connect to bus service, installation of bus shelters and secure, dry bicycle storage throughout the development, and Homeowner Association funded shuttle service to transit transfer points during commute periods and to shopping centers on weekends. ] 4.2.3. Amend the Land Use Code to provide for an Affordable Housing Overlay District (AHOD) as a zoning map amendment that could lie upon any parcel located within the Urban Service Area. The AHOD would allow higher densities on vacant or underutilized residentially- or mixed-use-zoned properties. This overlay district would allow higher densities than the underlying zoning designation and would relax development standards for projects which include a minimum of ten (10) percent low-income affordable housing. The Applicant should also provide assurances that the development, with mitigation measures, would not exacerbate Levels of Service (LOS) at intersections serving the proposed project where, at the time of application, the LOS is C or worse. [The 1995 IA 2.8.15 states: Provide an incentive program, such as parking relief or assistance, for conversions of commercial uses back to, or to residential uses in Mixed Use areas. IA 4.2.3. provides greater incentives to encourage owners of vacant residential properties within the Urban Service Area boundary (USAB) to develop them in medium- to high-density housing. There are about 850 vacant or underutilized parcels of one-quarter acre in size or larger that are located within the USAB. These parcels are located near water, sewer, roads and other utilities. An analysis of these candidate buildable sites indicate that most of these parcels (about 700) are located on steep terrain (greater than 18% slopes) and have high value wetlands on a substantial portion of the parcel. Of the approximately 150 vacant or underutilized parcels (with assessed value of improvements of less than $50,000) that are flatish and dryish and, therefore, are deemed buildable, over 80 lie within Mendenhall Valley areas which are served by intersections which already experience severe congestion, defined as Levels of Service E and F. A Level of Service (LOS) of C is considered an acceptable or livable level of service with little peak period traffic congestion. This 2007 Comp Plan seeks development that, at a minimum, would not exacerbate deteriorated levels of service. As such, the last sentence of IA 4.2.3 referring to LOS C was added as a condition of approving an Affordable Housing Overlay District zoning map amendment. This LOS C standard could effectively thwart major subdivision developments within 11

the Valley. It should be noted that the recently approved zoning standards for bungalow houses, as minor subdivisions or lot splits, would not be measured by this LOS standard and would be effective in fill development within existing subdivisions. Potential lots for the bungalow houses are not part of the 150 vacant or underused parcel inventory, as they are already developed with homes valued in excess of $50,000. The Affordable Housing Overlay District (AHOD) would serve as a floating overlay district that could be mapped as a zoning map amendment at the request of a property owner and approval of the Commission and Assembly. At the request of a property owner, the AHOD would be tailor-made to reflect the circumstances of the terrain, the surrounding neighborhood, and the types of housing or mix of uses proposed for the site. Each AHOD would have a specific name or title; eg, 10 th and Egan AHOD or Mercy Housing AHOD.] There are about 60 flatish, dryish vacant parcels that lie within walking distance of express public transit service. The following IA 4.2.4. addresses ways to induce owners of those properties to develop those lands into affordable housing or mixed use developments. 4.2.4. Designate suitable land within one-quarter mile distance from express bus routes from Auke Bay to Downtown Juneau to designate as a Transit-Oriented Development zoning district within which medium-to high-density housing in wholly residential or mixed use developments and with lesser parking requirements would be allowed. Such lands may qualify for higher building heights by the Planning Department and Assembly pursuant to a zoning map amendment, provided that the results of a view corridor analysis of the proposed building height does not reveal obstruction of a valued public vista, such as views of the shoreline and water from a public roadway. [This IA is intended to encourage owners of vacant or underused parcels located within walking distance of public transit to build medium- to high-density housing or mixed use developments. Such a scenario is deemed the most efficient use of these vacant parcels and would bolster transit ridership during work commute periods and, perhaps, during weekend shopping periods.] 4.2.5. Encourage high-density Transit Oriented Developments and/or Mixed Use Developments in existing or new shopping centers and office parks. [The 1995 IA 2.8.15 states: Provide an incentive program, such as parking relief or assistance, for conversions of commercial uses back to, or to residential uses in Mixed Use areas. IA 4.2.5. provides greater incentives to encourage owners of vacant properties located within walking distance of Capital Transit service to develop them in medium- to high-density housing or mixed use developments.] POLICY 4.3. IT IS THE POLICY OF THE CBJ TO FACILITATE THE PRESERVATION AND REHABILITATION OF EXISTING HOUSING, PARTICULARLY HOUSING AFFORDABLE TO LOW- INCOME RESIDENTS. Implementing Actions 12

4.3.1. Publish a bi-annual inventory and analysis of the CBJ rental housing stock and assessment of need for rental housing by CBJ residents. [1995 IA 2.8.1] 4.3.2. Adopt building and fire code standards for housing rehabilitation that are low cost and continue to meet acceptable levels of public health and safety. [1995 IA 2.8.5] 4.3.3. Adopt local building codes to encourage use of low cost energy efficient construction techniques, materials and equipment that are consistent with acceptable health and safety standards and cognizant of local climatic conditions. [This was recommended by the CBJ Energy Advisory Committee.] 4.3.4. Conduct an inventory of dwelling units that are owned by seasonal tourist-oriented businesses and are kept off the year-round rental market. The CBJ should investigate incentives and/or punitive measures to urge those property owners to rent those units year-round, particularly units suitable for seasonal students or workers. [This IA addresses a current concern regarding the loss of rental housing in a market where neither for-profit nor non-profit housing developers are building rental housing. Therefore, the rental housing stock is declining. Thirty-six percent of CBJ households in the year 2000 were renters and 37% of those renters were paying more than 30% of their household income for rent. There is concern that local rental housing owners are converting rental units to transient housing for seasonal workers. Seasonal business operators are purchasing rental housing and leaving them vacant in the off-season so they can house their out-of-town seasonal employees. Other owners of rental housing are converting those units to transient housing to rent to visitors and/or Legislative Session workers. This IA would instruct the CDD to keep an inventory of year-round residential rental units converted to transient housing, such as a Bed & Breakfast or motel use, as well as those units that are kept off the market by property owners from May through September of each year. The IA would instruct the CDD to recommend actions in the event that the loss of rental housing results in a significant loss of affordable rental units, say a loss of 1% of the rental stock of units renting for less than $1,000 or $1,200 per month. In this case, the CDD would advise the Planning Commission and Assembly of this loss and, if the Commission and Assembly deem it appropriate, would prepare legislation that would discourage this type of conversion or loss of affordable rental housing. Such discouragement could be in the form of one or more of the following actions: (1) an ordinance that requires 6 months notice to the CBJ and to tenants of the subject rental units advising them of the owner s intent to convert to short-term occupancy of the unit(s); (2) a requirement that the property owner assist the tenant in relocation costs to a comparably-priced unit; (3) a requirement that the property owner pay a fee to a housing trust fund to assist in the construction of a new rental housing unit; (4) a requirement that the property owner pay the costs of rehabilitating a vacant and uninhabitable rental housing unit to bring it up to code for year-round occupancy; (5) converted properties could be taxed at a hotel rate and each unit not occupied for a full year could be charged the daily hotel bed tax ; and/or (6) owners who register their rental units with the CBJ and warrant that they charge rates affordable to households earning 80% or less of the HUD-established Medium Family Income (MFI) level during off-seasons, could be charged a lower property tax rate as an incentive to maintain the unit in good condition. This IA would authorize a study, an inventory and, if necessary, the preparation of 13

legislation to discourage further loss of rental housing to conversion to less-than-year-round occupancy.] 4.3.5. The CBJ should investigate ways to discourage the conversion of habitable rental dwelling units to non-residential use. This may include the requirement of Applicants to cover tenants costs to find alternate affordable housing, relocation costs to a comparable unit, or a fee representing the cost to replace a comparable size unit, which would be paid to a CBJ, designated Housing Trust Fund. [This IA addresses a similar concern to that of IA 4.3.4, above. This IA seeks to discourage the conversion of rental units to commercial uses, such as office uses, retail uses, as well as to hotels, motels or Bed & Breakfast uses. Similar treatments could be investigated or, the Land Use Code could be amended to prohibit conversion of residential units to office, retail or hotel uses, although conversion of a residential structure located within a Downtown Juneau historic districts may be warranted if it is demonstrated that it is the only economically feasible way to install fire suppression sprinklers in the structure.] 4.3.6. Identify and inventory substandard housing, including pre-1976 mobile homes that do not comply with HUD standards of habitability, and pursue strategies to rehabilitate or replace these units with safe, sanitary and HUD-compliant units. [This IA builds upon the 1995 IA 2.9.2 which states: Adopt standards for rehabilitation which meet acceptable levels of public health and safety. In 2006, there were 966 mobile homes in mobile home parks and 257 on private lots. The 2006 inventory did not distinguish which of the 966 units are post-1976 manufactured homes or pre-1976 mobile homes. Mobile homes are manufactured homes or trailers constructed prior to 1976 when HUD established minimum fire safety standards. These pre-1976 mobile homes, typically, do not have two exits, the bedroom windows are too small to crawl out of to escape a fire, the furnace and water heater compartments are not insulated with fire-resistant materials, and the wiring is aluminum, rather than copper. These older units should be rehabilitated to meet current HUD safety standards or should be replaced with a post-1976 manufactured home and destroyed or converted to a storage-only use. This IA would have the CDD inventory these units and tally which ones are post-1976 mobile homes in need of rehabilitation or replacement. However, this inventory should be conducted only when the CBJ can offer financial assistance to the unit s owners and tenants to quickly rehabilitate the unit or replace it with a safe, habitable home. Some, if not many, of these mobile homes are also deteriorated with mold on roofs and in siding and could be red tagged upon inspection and deemed uninhabitable. If so, the CBJ and social service agencies, such as the Red Cross, should offer immediate alternate housing for affected occupants. As you can see, this IA is prudent for the health and safety of many of our low-income households although the organization of the activity will require concerted efforts to secure grants and other funding for rehabilitation costs and replacement housing in advance of conducting the inventory. Without such a concerted effort to rehab or replace these older units, the private market would likely continue to respond in the following way: The older mobile homes would remain in their deteriorated condition, perhaps with some patched up improvements, until they are no longer patchable or serviceable and are abandoned by their owners. The space rent in manufactured home parks varies from $400 to $600 per month 14

and it is unlikely that an abandoned mobile home would remain in its space very long. The park owner would likely take possession of the abandoned unit and haul it to a landfill and install a newer unit in the same space.] 4.3.7. Enact an ordinance requiring owners of mobile home or manufactured home parks to advise tenants and the CBJ of plans six months in advance of their plans to close or convert mobile home spaces to other uses. Owners of affected parks should be required to provide relocation assistance to tenants, such as paying the costs of the tenant finding comparable space within another park, and paying their relocation expenses. [This IA responds to the concern that land values are so high that manufactured home park owners may seek to go out of business and convert the land to a stick-built subdivision of high-density housing or to a subdivision of fee-simple lots for manufactured or modular homes. Although the new development would provide needed housing stock for the CBJ, it often results in extreme hardships for the owners or tenants of the current mobile homes or manufactured homes in areas where there are very few places to which these folks can relocate their unit. It is especially hard on senior citizens and other low-income households who cannot afford the move. This IA would provide adequate notice and financial assistance to the current tenants to (1) find a new location to relocate their unit to or, if no suitable location can be found, and (2) find other housing and abandon their manufactured home. The park owner should be required to pay the costs to dispose of a unit that has to be abandoned by its owner due to lack of a suitable place to move it to as well as the costs to un-install, move and install the unit to the new location.] 4.3.8. Improve the quality of housing and neighborhoods by educating landlords, tenants and property owners about health and safety code requirements and property maintenance Best Management Practices and by enforcing code compliance when necessary. [This IA is recommended by the Homeless Coalition and the Building Code Advisory Committee.] 4.3.9. Identify and zone appropriate land areas within the USAB for new and/or replacement manufactured home parks or subdivisions. [This IA relates to IA 4.3.7, above, and should be located next to it or possibly combined with it. As part of the buildable sites analysis of this Update effort, CDD staff did look for CBJ-owned lands that could be suitable for new manufactured home parks, either as rental spaces or ownership lots. Staff did not find any parcels that were flat, dry, close to sewer service and public transit and, therefore, suitable locations for new manufactured home parks. Although manufactured homes provide affordable housing, it is not as dense a development as apartment or condominium housing could provide. A typical manufactured home park in the CBJ reflects a residential density of 7 to 9 units per acre. New apartment or condominium-type housing could be built at 20 to 60 units per acre that is a more efficient use of limited flat, dry and vacant land within the USAB. However, in terms of affordability, the manufactured home is a better option, although its resale value is negligible due to the practices of banks and financial institutions. 15

The price of a 4,000 square foot lot upon which to install a doublewide, $125,000 manufactured home could be as much as $60,000; the total cost of the manufactured home plus the land and installation could be less than $200,000. This is less costly than a higher density condo unit simply due to the higher costs of site preparation and construction of higher-density housing in Juneau. Condo units similar in size to doublewide manufactured homes are selling for about $250,000 however; they are financed with 30-year loans rather than the 14-year loans given to buyers of manufactured homes. Manufactured home resale loans are only for 10-year terms and maximum loan amounts of $125,000. Manufactured homes are reasonable for households who intend to stay in the unit for many years and are no longer effective mechanisms as starter homes to build equity to apply to a stick-built home.] 4.3.10. Continue to subsidize residential rehabilitation through State and Federal funds to conserve existing housing stock in established neighborhoods. When rehabilitating these units, seek to ensure that they adhere to Universal Design/ Visitability principles such as wide doorways, at least a half bath on the main floor, accessible placement of electrical controls and at least one zero-step entrance to a building. [This is a new IA that expands of the 1995 IA 2.8.13 to address the rehabilitation of housing as well as the provision of new low- and moderate-income housing. The 1995 IA 2.8.13. states: Continue to partner with non-profit local housing organizations and Alaska Housing Finance Corporation to build moderate and low income apartment complexes. Very little State or Federal funding or tax strategies are available to build rental units. Due to the price of land and the costs of construction, financing and taxes, the most affordable housing is the existing housing stock. Therefore, it is very important to preserve the existing housing stock and facilitate its maintenance and rehabilitation. When such housing is proposed for rehabilitation, using public funds, it is felt that this is the best opportunity to include the design elements that facilitate access for persons with limited mobility.] 4.3.11. Advocate for the use of federal Community Development Block Grant monies to be used to provide low interest housing rehabilitation loans. [1995 IA 2.9.1] [This could be combined with 2007 IA 4.1.8 and 4.2.8 which recommend similar financing strategies.] POLICY 4.4. IT IS THE POLICY OF THE CBJ TO MAINTAIN THE LONG-TERM AFFORDABILITY OF DWELLING UNITS DESIGNATED AFFORDABLE AS A CONDITION OF APPROVAL FOR THE GRANTING OF A REZONING, INCREASED BUILDING HEIGHT, REDUCED PARKING, OR OTHER ECONOMIC BENEFIT TO THE DEVELOPMENT PROJECT. Implementing Action 4.4.1. Establish mechanisms for assuring affordability for inclusionary or otherwise designated affordable housing units over the term of the restriction, such as a Community Land Trust model. 16

[This IA addresses the concern that the first buyer of a designated below-market rate affordable unit could capture windfall profits from the resale of the unit unless some resale restrictions are placed on the unit as a deed restriction or some other contractual agreement. Typically, designated below market rate units (BMR units) have a deed restriction that stipulates that the unit cannot be sold to a household whose annual household income exceeds the income limit placed on the unit. For example, by condition of approval of the Project, a two-bedroom BMR unit is required to be sold to a low-income household of no less than two persons. This restriction should continue on the designated unit for a period of, say, 15, 30 or 50 years and any equity earned on the part of the first and subsequent qualified buyer should be limited to, say, 3 or 5% in order to keep the unit affordable in the long-term. The Juneau Housing Trust has a model that satisfies this requirement and a housing or land trust non-profit corporation could purchase all designated BMR units from developers and manage those unit s sale and resale properly for the duration of the restriction.] POLICY 4.5. IT IS THE POLICY OF THE CBJ TO FACILITATE AND ASSIST IN THE DEVELOPMENT OF AFFORDABLE HOUSING. Development Guideline 4.5.1. When designing a new affordable dwelling unit, take into consideration life cycle cost savings which consider the first costs of materials and equipment and the recurring operating costs related to home heating, energy consumption and the replacement of building elements such as siding, roofs and windows. Using quality materials and finishes will maximize performance and reduce replacement costs. Encourage compact development of multi-dwelling units to make extending utilities, roads and pathways less costly and to maximize the efficient use of buildable land. The location, orientation and design of each unit on the land should maximize daylight and privacy for occupants while facilitating a sense of community among all occupants of the development. [The Federal HUD standard or definition for a household paying too much of their income for housing and, therefore, overburdened by shelter costs, is if a household pays more than 30% of their annual income for housing costs. Housing costs would include the costs of rent or mortgage, insurance costs, homeowners association fees, and utilities. With the costs of home heating exceeding $300 per month, it is critical that the BMR units be constructed to be energy and heat efficient. Such design methods as building orientation, placing windows on the south wall, solar and electric power and the like can substantially reduce home power, heating and maintenance costs and lower those burdens for households.] Implementing Actions 4.5.2. Inventory, assess, and make available suitable CBJ-owned lands within the Urban Service Area to transfer to for-profit and/or non-profit residential development corporations that would provide low- and moderate-income affordable housing. Offer these lands at a negotiated value for a specific development project and requiring a specific percentage of long-term affordable units of specific types 17

and locations within the development. Ensure the timely completion of the development. [The 1995 IA 2.8.10 states: Inventory, assess, and make available CBJ lands for public and non-profit development proposals that will provide affordable housing. Offer these lands at a negotiated value and make provisions for a timed/sunset clause for development. In 2006, CDD staff conducted a buildable sites analysis of all CBJ-owned parcels greater than one-quarter acre in size that were vacant or underutilized and located within the USAB or near sewer service. Underutilized parcels were those with structures with assessed valued at less than $50,000. Staff looked at over 100 CBJowned parcels and found two buildable sites that could be developed with affordable housing in the near-term (within the next 5 years) and two sites that could be developed in the medium-term (5 to 10 years), when sewer service is brought to those areas. The near-term DZ candidate site could provide 60 acres and the under Thunder site could provide 75 acres of buildable land. Depending upon the density achieved by new development on these sites, combined, they could provide as few as 1.350 new units (at 10 units per acre) or up to 2,700 units (at 20 units per acre). Most for-profit residential builders in the CBJ are experienced in building custom homes or subdivisions of single-family homes. The most efficient use of limited CBJ-owned buildable sites would be to develop the land in medium- to high-density housing that would be, typically, in the form of multi-level condominiums or apartment buildings. The CBJ non-profit housing developers have experience in building multi-family residential structures and, therefore, could make the most efficient use of CBJ-buildable lands. Some portion of the CBJ lands could be built as bungalow subdivisions; that is, small and more affordable single-family detached homes that local for-profit builders have experience in building. Local for-profit builders may be interested in building bungalow houses, although the sale price for any home built on CBJ-owned or CBJ-disposed of land should be restricted to levels affordable to households earning less than the medium family income (MFI) levels. The for-profit builders may not be interested in this narrow profit margin associated with the CBJ lands. The 2006 MFI for a family of four in Juneau was $86,900. The market continues to provide homes to households earning at or above the MFI. It is the MFI income level and below that the private market fails to provide affordable housing. Affordable would mean the household pays no more than 30% of their income for rent or mortgage payment. The 1995 IA suggests that the CBJ release or dispose of these buildable lands at a negotiated price. In the past, this has included the trade of raw land for developable lots within a new subdivision, with the CBJ lots selling at below market rates. For example, CBJ land was traded to a non-profit housing developer in exchange for developable lots given to the CBJ. The CBJ gave those lots to a non-profit builder who built a house and sold it to a low-income, first-time homebuyer and the unit has a 10-year resale price restriction. Furthermore, it is important that any disposal of CBJ lands for affordable housing have a performance time requirement so the land is not speculative and left vacant by the buyer. The land should have a reasonable but tight development performance timetable, say two or 5 years, with the land reverting back to the CBJ if the units are not built in a timely fashion (see also IA 10.5). IA 4.5.4, below, seeks to identify a suitable inclusionary affordable housing program for the CBJ to insure that a certain percentage of new homes built on CBJ-land or former CBJ-land would be affordable to below MFI households.] 18