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HomeMy WebLinkAboutMinutes - Affordable Housing Committee - 07/10/2018Approved on July 24, 2018 NOTE: Date/time/place of next meeting: July 24, 2018, 10:00 a.m., place TBD AFFORDABLE HOUSING COMMITTEE July 10, 2018, 10:00 AM, City Hall, 2nd Floor Champlain Room Members attending: Tom Bailey, Leslie Black-Plumeau, Sandy Dooley, Todd Rawlings, Michael Simoneau, and John Simson (Chair); Member absent: Larry Michaels Others present: Monica Ostby, PC liaison Minutes by Sandy Dooley AGENDA 1. Call to order, emergency procedure, agenda review, comments from guests 2. Review and approval of June 26, 2018, minutes 3. Chair’s remarks – AHC report to Planning Commission 7/10/18 4. Continue to work on draft Citywide IZ focusing on: Sandy Dooley’s memo and latest draft (emailed 7/3) Todd and Leslie’s work on SB Census tract income and impact on in lieu payment regs 5. New business 6. Adjourn 1. Call to order, emergency procedure, agenda review, comments from guests: John called the meeting to order at 10:02 a.m. and summarized emergency evacuation instructions. There were no comments from the public. 2. Review and approval of June 26, 2018, minutes: Tom moved and Mike seconded motion that June 26, 2018, minutes be approved as distributed. Motion passed, vote: 6-0-0. As part of discussion of minutes, Tom brought up subject of work listed under “bike rack.” John indicated we would address these tasks once we have forwarded the draft Citywide IZ regs to the Planning Commission. Tom also noted that the minutes indicated that, by July 6th, there would be a decision on SoBu’s application for VCDP funds for Garden Apartments in City Center and asked if anyone knew about the decision. No one did. Sandy volunteered to find out decision and share with committee members. Note: Committee members continue to recognize that much work is needed to help residents and the general public understand what we mean by “affordable housing.” 3. Chair’s remarks - AHC report to Planning Commission 7/10/18: John shared that Paul Conner, Director of Planning and Zoning, had asked Sandy and him to attend that evening’s Planning Commission meeting and provide the Commission with a written progress report. He then distributed copies of the draft report he had prepared and asked for comments, suggestions for modifications, etc. Following extended discussion and agreement to modify the draft report in a few places, Tom moved and Sandy seconded that the report, as modified by the members present, be delivered to and discussed with the Planning Commission at that evening’s meeting. It was agreed that once the Progress Report had been given to the Planning Commission, Mike would ask Coralee to add the report to the Committee’s page on the City’s website. A copy of the “final” Progress Report is included with these minutes. 4. Continue to work on draft Citywide IZ focusing on: (a) Sandy Dooley’s memo and latest draft (emailed 7/3) (b) Todd and Leslie’s work on SB Census tract income and impact on in lieu payment regs (a) Sandy Dooley’s memo and latest draft (emailed 7/3): Sandy polled the members present plus Monica to identify any areas of the latest draft that they wanted to discuss. The members discussed a number of topics briefly and focused in some detail on the draft policy on including lots sold as part of a 12+ lot subdivision under Inclusionary Zoning. Members agreed informally to modify 18.01 D.(2)(d) so that the City will have the right of first refusal on each Affordable Lot with the authority to sell or contribute the lot to a non-profit housing development organization. Todd will assist Sandy with the precise wording of the change. This review of the draft included the changes included in Sandy’s 7/9/2018 (8:23 p.m.) email, which were: (1) Addition of Todd’s “Context” (formerly Preamble) paragraph (first paragraph of 18.01 E.(1)(g) (2) Todd’s and Sandy’s minor edits to the 2nd, 3rd, and 4th paragraphs of the draft policy in 18.01 E.(1) (g) (3) Addition of a sentence to 18.01 G.(2) making clear that density bonuses are available only when the developer constructs inclusionary dwelling units; bonuses are not available when the developer uses “Dedication” or “Contribution to the Housing Trust Fund” as alternative to constructing inclusionary dwelling units. By consensus, members present agreed that with the modification to 18.01 D.(2)(d) described above, the committee has completed its work on these draft regulations. Tom agreed to begin drafting a summary of the draft IZ regulations. Members will, at a future meeting, discuss whether to delve into the interrelationship in the SEQ of density bonuses and TDRs (Transfer of Development Rights). Members seem likely to ask the Planning Commission or staff to take up this task. (b) Todd and Leslie’s work on SB Census tract income and impact on in lieu payment regs: Todd and Leslie distributed the products they developed (tables and a map) relative to individual income levels in SoBu’s 10 Census tracts. Note: Tract 9800 includes the airport and land surrounding the airport. Only 75 people live in this Census tract. The data show that three tracts have fewer than 50% of the individuals whose income is either Low Income (<50% AMI), Moderate Income (>50% AMI and <80% AMI), or Median Income (>80% AMI and <100% AMI). They are a tract that is somewhat comparable to the SEQ (28.7% <100% AMI); a tract that runs north to south west of I-89, north of Swift Street, west of Dorset Street, and east of the East Woods neighborhood, plus southward to Brewer Parkway (42.8% <100% AMI); and the area west of Spear Street, east of Shelburne Road, south of Swift Street, and north of the City boundary (with minor deviation) (48.8% <100% AMI). Leslie also noted that the Median Income in the SEQ tract is $130,000 per year while the Median Income for the rest of the SoBu Census tracts is $60,000 per year. Members had a lively discussion of this large income disparity between most households in the SEQ and most households in the rest of the City. Much of the discussion focused on whether to recommend regulations that would exclude development in the SEQ from being able to use the Contribution to the Housing Trust Fund as an alternative to building Inclusionary Housing. Members agreed it is a BIG question. They agreed to John raising this subject at the evening’s Planning Commission meeting without a recommendation. Members may explore this question further in the future. 5. New business: Leslie and Mike agreed to develop communication strategies designed to educate about and gain support for need for more affordable housing in SoBu. Todd shared with group that the BTV working group on IZ has issued its final report and it will be presented to the BTV City Council on Monday evening, July 16th. 7. Adjourn: Tom moved and Todd seconded motion to adjourn the meeting. Motion passed (6-0-0) and meeting was adjourned at 12:00 p.m. “Bike rack” ● Tom will prepare a “Summary” of the proposed changes (from May 29, 2018, meeting minutes) ● work on Committee’s page on the City’s website ● (Quoted from January 23, 2018, meeting minutes) “John asked Mike to prepare a work plan for the committee to collaborate with Coralee to enhance its effectiveness in communicating with residents via the City’s website and via other means. The plan should include specific assignments to be carried out by identified committee members. Mike accepted this assignment.” Homework (not yet reported on): ● Mike will consult with an accountant regarding what incentives the City might put in place to encourage owners of undeveloped property to sell land at a “bargain price” to private developers. ● Mike will seek Yves Bradley’s input regarding development of more housing along Shelburne Road corridor. Affordable Housing Commiee Progress Report July 10, 2018 This brief will report on progress to date preparing amendments to the South Burlington Land Development Regulaons extending inclusionary housing requirements to zoning districts beyond City Center and revising the current density bonus provisions. The strategy of the Commiee is to help provide an environment in the City where the private sector builds developments that include units that are priced to enable households who hold jobs in retail, service and the public sector to live affordably in the City. By combining a modest requirement for including such units in larger (>12 units) developments with density, parking and other incenves, we hope to smulate new affordable housing to meet the specific housing goals of the Comprehensive Plan. Thus far, The Commiee has agreed to recommend amendments that will: · Require all developments of 12 or more units to include for rental units, 10% that are priced to enable households with incomes of 80% of median or less, and 5% at 100% of median or less. For Burlington/South Burlington that would translate into gross monthly rent for a one bedroom apartment of $1,400 and $1,700 respectively. For ownership, 5% would be offered at 100% of median and 10% at 120%. (sales price for a 3 bedroom house of $319,000 and $385,000 respectively) Maximum allowable costs are calculated based on the number of bedrooms in the unit in combination with a HUD formula that specifies occupant numbers per bedroom. · The Committee is in agreement to include the above requirement for all zoning districts that permit residential development except City Center, which has its own regulations. · The Committee has agreed that all inclusionary units will be perpetually affordable by a deed restriction, covenant or through purchase or contractual agreement with a government or nonprofit housing agency. · The Committee agrees that developers may be granted an alternative to inclusionary housing requirements via an in lieu payment to the Housing Trust Fund of $60,000 per unit or construction of the required affordable units on another site within the City. There may be other options offered that are still under discussion. · The Committee agrees that required parking for inclusionary units shall be no greater than one per unit. Revision of the Current Density Bonus Provisions The Commiee found that the current density bonus regulaons could not be made compable with the design for inclusionary housing we wish to pursue. Furthermore, we have heard from developers and our peers elsewhere that increased density is the most effecve incenve to encourage them to actually build in communies with inclusionary housing regulaons. We will therefore recommend enabling a density bonus to all developments of 12 or more units in the City as all will be required to contain inclusionary units. The basic bonus will permit one addional market priced unit for each required affordable unit. For example, a 20 unit subdivision would require 3 inclusionary units. The developer could build a total of 23 units with 20 at market and 3 inclusionary. We are discussing adding bonus units for developments that voluntarily build more than the required number of inclusionary units and for developments that include more than the minimum required rental units at 80% of median and at 100% for ownership units. We are also discussing a density bonus for developments of under 12 units that voluntarily include inclusionary units. Finally, there has been some discussion of differing rules and standards for low density districts. We are favoring inclusion as our goal for the enre City. However, too high density for the character of rural areas and lack of transit may be raised as objecons. We think the monthly housing costs and development design our definion of inclusionary housing allow will not preclude automobile ownership and will not create any shi in neighborhood character. In addion, in the context of income inclusivity, should we be concerned that there is a substanal variance of median household income between the Southeast Quadrant Census tract and all other tracts in the City? Should we be concerned that the in lieu payment opon may be used primarily in the SEQ and, as a result, undermine our goal of inclusion? Also, we have not addressed the integraon of the density bonus provisions and TDRs. We would very much appreciate your thoughts on these maers and would like to schedule further discussion.