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HomeMy WebLinkAboutAgenda - City Council - 07/06/2020AGENDA SOUTH BURLINGTON CITY COUNCIL IMPORTANT: This will be a fully electronic meeting, consistent with recently-passed legislation. Presenters and members of the public are invited to participate either by interactive online meeting or by telephone. There will be no physical site at which to attend the meeting. Participation Options: Interactive Online Meeting (audio & video): https://global.gotomeeting.com/join/194247093 By Telephone (audio only): Phone # (646) 749-3112, Access Code: 194-247-093 Regular Session 5:30 P.M. Monday, July 6, 2020 1.Welcome (5:30 – 5:31 PM) 2.Possible executive session to discuss matters related to negotiating or securing of real estate purchase or lease options. (5:31 – 6:01 PM) 3.Agenda Review: Additions, deletions or changes in order of agenda items. (6:01 – 6:02 PM) 4.Comments and questions from the public not related to the agenda. (6:02 – 6:12 PM) 5.Announcements and City Manager’s Report. (6:12 – 6:22 PM) 6.Consent Agenda: (6:22 – 6:24 PM) A.*** Consider and sign disbursements B.*** Approve the execution of a commitment letter and legal documents necessary for the Vermont Bond Bank to issue to a general obligation bond of $5 million dollars to be serviced with tax increment financing from the City Center TIF District for the construction of the South Burlington Public Library and City Hall as authorized by ballot November 6, 2018 7.***Presentation on the results of the “Route 116/Tilley Drive Study” by representatives of the Chittenden County Regional Planning Commission staff and consultants. (6:24 – 6:54 PM) 8.Appoint representative to the Chittenden County Regional Planning Commission (6:54 – 7:00 PM) 9.Discussion and possible Council action on further investment in the conservation of property located in the Southeast Quadrant of South Burlington known as the Auclair property (7:00 – 7:30 PM) 10.***Public hearing on proposed Land Development Regulation amendments, Jessica Louisos, Planning Commission Chair and Paul Conner, Director of Planning & Zoning: WARNED FOR 7:30 PM (7:30 pm – 7:40) A.LDR-19-13A: Modify existing Inclusionary Zoning requirements and extend applicability to include all lands that underline the Transit Overlay District, all lands within the City Center Form Based Code District, and all lands in the vicinity of Hinesburg Road and Old Farm Road that are north of I-89 and are outside the Transit Overlay District. B.LDR-19-13B: Modify Affordable Housing Density Bonus standards as follows: (1) reduce applicable area to only those areas not subject to proposed Inclusionary Zoning standards [LDR-19-13A], and; (2) adjust requirements for income eligibility and continued affordability for all remaining parts of the City. 11.Possible action to adopt proposed Land Development Regulations amendments #LDR-19-13A and LDR-19-13B (7:40 pm – 7:41 pm) 12.Interim Zoning application #IZ-20-01 public hearing seeking a Jurisdictional Opinion for the re- subdivision of three parcels totaling 3.65 acres and for the development up to 15 dwelling units in buildings containing no more than four (4) dwelling units per building for the “Park Road” phase of a previously-approved Master Plan for a 450-acre golf course and 354-unit residential development, 1170 and 1180 Dorset Street. [NOTE: Due to an error in public notice, this hearing has been continued to July 20, 2020] (7:41 – 7:42 PM) 13.Interviews with applicants for South Burlington Boards, Commissions and Committees (8) (7:42 – 8:15 PM) 14.*** Council acceptance of the IZ Open Space Committee report and consideration and possible approval of a statement related to certain lands identified by the Committee. (8:15 – 8:35 PM) 15.*** Council consideration and possible approval of a South Burlington Public Library and City Hall sign concept (180 Market Street). (8:35 – 8:50 PM) 16.Reports from Councilors on Committee assignments (8:50 – 8:55 PM) 17.Other business (8:55 – 9:00 PM) 18.Adjourn (9:00 PM) Possible Executive Session to discuss appointments to South Burlington Boards, Commissions and Committees and to discuss pending or probable civil litigation to which the public body may be a party and confidential attorney-client communications made for the purpose of providing professional legal services to Council Respectfully Submitted: Kevin Dorn Kevin Dorn, City Manager *** Attachments Included South Burlington Water Dept. Accounts Payable Check Register Date: 07/07/20 Date Check No. Paid To Memo Amount Paid 7/7/2020 4089 Aldrich & Elliott, PC 3,526.00 Date Voucher Number Reference Voucher Total Amount Paid6/8/2020 VI-15109 79122 3,526.00 3,526.00 7/7/2020 4090 Champlain Water District 2,524.32 Date Voucher Number Reference Voucher Total Amount Paid6/10/2020 VI-15108 S.BURL - CCR-2020 2,524.32 2,524.32 7/7/2020 4091 E.J. Prescott, Inc.306.04 Date Voucher Number Reference Voucher Total Amount Paid 6/9/2020 VI-15110 5711841 65.38 65.38 6/15/2020 VI-15112 5714034 201.98 201.98 6/18/2020 VI-15114 5717449 38.68 38.68 7/7/2020 4092 Ferguson Waterworks #576 120.72 Date Voucher Number Reference Voucher Total Amount Paid 6/22/2020 VI-15115 0954270-1 120.72 120.72 7/7/2020 4093 FirstLight Fiber 20.21 Date Voucher Number Reference Voucher Total Amount Paid 6/15/2020 VI-15113 7356681 20.21 20.21 7/7/2020 4094 Ragab Mohamad 96.81 Date Voucher Number Reference Voucher Total Amount Paid 6/15/2020 VI-15111 REFUND 96.81 96.81 Total Amount Paid:6,594.10 SOUTH BURLINGTON CITY COUNCIL _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ Printed: July 01, 2020 Page 1 of 1 ATTORNEYS AT LAW Robert E. Fletcher – rfletcher@firmspf.com – (802)660-2555 171 Battery Street, P.O. Box 1507, Burlington, Vermont 05402 | www.firmspf.com | Fax (802)660-2552 July 2, 2020 VIA ELECTRONIC MAIL ONLY Helen Riehle, Chair South Burlington City Council 575 Dorset Street South Burlington, VT 05403 Re: City of South Burlington $5 Million TIF District Bond – Vermont Bond Bank Dear Helen: Attached are the final form documents to be approved and in most cases signed on behalf of the City in connection with its sale of the City’s $5 Million TIF District bond to the Vermont Bond Bank. The proceeds of the bond are to finance improvements at the South Burlington Public Library and City Hall. The documents are in order as follows: The Resolution and Certification has attached to it “sample” versions of other documents in the package, the certification regarding voter authorization, and the City’s application to the Bond Bank (which City staff will supply). The Resolution requires the signatures of the City Council (at least a majority), as well as Tom Hubbard’s signature, with Donna Kinville attesting to the Council’s signatures; the “samples” are not to be signed. The Resolution details the required findings and determinations of the City Council necessary to issue the bond, approves the form of the attached documents and authorizes the execution and delivery of various materials at closing. The Loan Agreement details the terms and conditions for the borrowing (via the sale of the City’s bond) of $5 Million from Vermont Bond Bank and specifies the repayment and related obligations of the City. It requires your signature and an attestation by Donna. Once signed, I will forward it to the Bond Bank for signature. Helen Riehle, Chair July 2, 2020 Page 2 The Tax Certificate is the City’s attestation that it has done what is necessary to assure that the City’s bond is a tax-exempt debt, and it won’t do in the future things that cause or might cause its Bond to lose that status. The City Council is (or a majority are) required to sign, as is Tom. The Bond requires the City Council member’s signatures (or a majority), and a countersignature by Tom. The first page of the Bond will be replaced after the Bond Bank Bond is sold with a new 1st page that reflects the interest rates for the various maturities of the City’s Bond. The other documents are the Certificate of Registration (Tom to sign), the IRC Section 148 Certificate (Tom to sign), the Assignment (no City signature), and a receipt (only your signature is necessary). The planned closing date for the bond sales is August 6, 2020. Please feel free to be in touch if there are questions about these documents or the transaction. We appreciate the opportunity to be of service to the City. Sincerely, Robert E. Fletcher, Esq. REF/gc Enclosures cc: via e-mail – Ilona Blanchard Andrew Bolduc, Esq. SON20-001 ($5M TIF) REF Bond Ltr to H. Riehle 20-07-02 cor MEMORANDUM To: Sue Dorey, Finance Officer, City of South Burlington From: Michael Gaughan, Executive Director Date: June 29, 2020 Re: 2020 Series 2 Loan – Commitment Memo The Vermont Bond Bank’s Board of Directors (the “Board”) met on June 25, 2020 and considered the City of South Burlington’s loan request. The loan request was approved with the following terms: Project 180 Market St construction: library, senior center, city hall Loan Amount $5,000,000 Estimated Date of Closing August 6, 2020 Bond Proceeds Loan proceeds will be deposited with the Disbursement Agent at closing and available through requisition with Disbursement Agent Interest Rate Tax-exempt interest rates for the loan will be set at pricing on or around July 22, 2020 Interest Payment Dates Semi-annual payments on May 1 and November 1, commencing November 1st, 2020 Principal Payment Dates Annual payment due November 1 until loan is paid in full, commencing November 1, 2025 Loan Security General Obligation pledge Loan Covenants As specified in Loan Agreement Documentation Documentation provided by local bond counsel Loan Amortization Schedule(s) See Exhibit A Please update this memo if there are changes to the loan amount, loan term length or principal repayment start date. Acceptance of these changes will not be unreasonably withheld, although the Bond Bank reserves the right to reject changes. Commitment Acceptance: To accept this commitment memo, please sign and return a copy of the memo by Friday July 10, 2020. Please do not hesitate to contact me if you have any questions or need additional information. Thank you. VERMONT BOND BANK By: ______________________________ Michael Gaughan, Executive Director EXAMINED, APPROVED AND ACCEPTED: City of South Burlington By (signature): _________________________________ By (printed name): _________________________________ Title: _________________________________ Date: _______________________________ Exhibit A City of South Burlington Loan ID 703_20_2 Loan Amount 5,000,000 11/1/2020 0.00 11/1/2021 0.00 11/1/2022 0.00 11/1/2023 0.00 11/1/2024 0.00 11/1/2025 384,615.40 11/1/2026 384,615.40 11/1/2027 384,615.40 11/1/2028 384,615.40 11/1/2029 384,615.40 11/1/2030 384,615.40 11/1/2031 384,615.40 11/1/2032 384,615.40 11/1/2033 384,615.40 11/1/2034 384,615.40 11/1/2035 384,615.40 11/1/2036 384,615.40 11/1/2037 384,615.40 VT 116/Kimball Ave/Tilley DriveLand Use & Transportation Plan Presentation to South Burlington City Council July 6, 2020 1 Project Overview Study Area: –Approximately 900 acres –Bisected by I-89 –Mix of residential, office, light industrial, andopen space Purpose of this Study –To develop a comprehensive Transportation Plan that identifies multimodal transportation improvements needed to support planned development within the study area in a compact, pedestrian-friendly, and mixed-use manner. 2 Future Land Use & Development Future Land Use & Development CCRPC ECOS Plan (2018) –Enterprise:Areas that accommodatea future concentration ofemployment uses that attractworkers from the County and multi-county region. –Metro: Areas that accommodatejobs and housing in a compactdevelopment pattern that supportstransit service & pedestrian activity. 4 Future Land Use & Development South Burlington Land Development Regulations (2019) –Majority of study area in Mixed Industrial / Commercialor Industrial & Open Space zoning districts –O’Brien Farm mix of residential and commercial zoning districts. 5 Industrial & Open Space Mixed Industrial / CommercialResidential 12 Residential 1 Commercial 1 / Limited Retail Future Land Use & Development South Burlington Comprehensive Plan (2016)Future Land Use –Majority of study area categorized as Medium toHigher Intensity –Principally Non-Residential –Western area primarily Medium Intensity –Residential to Mixed-Use 6 Future Land Use & Development Comprehensive Plan:Projected Maximum Build Out 7 Future Land Use & Development Comprehensive Plan –Planned Infrastructure Tilley DrExtension Swift St Extension I-89Interchange Tilley/Kimball Connector 8 Public Outreach:Online Survey Public Survey Distributed online and hard copy January –February 2017 325 total responses 12639% 15849% 309%93% 10 Public Survey 11DiscouragedEncouraged Public Survey 12 Public Survey Considering the four transportation improvement packages described below, which one would you choose to best address future growth in the Kimball/Tilley/Hinesburg Road area? Package #1: Transit, Bike & Pedestrian Focused •Organize transportation in the area around public transit & walking by investing in frequent transit service and constructing new buildings close to bus stops •Provide comfortable transit accommodations with access to frequent local, express, and circulator bus routes •COST:$$$ Package #3: Interchange Access •Construct a new I-89 interchange at VT 116 •Expand the I-89 Exit 13 interchange to accommodate full access to and from Kennedy Drive/Dorset Street and I-189 •COST:$$$$$ Package #2:Connected Streets & Paths •Construct connected network of streets, sidewalks and bike paths •Construct capacity, safety, and mobility improvements for all users at critical intersections -including new signs and striping, new signals, additional turn lanes, roundabouts, etc) •COST:$$ Package #4:Modest Improvements •Focus on maintenance of the existing transportation system. •Some new or expanded intersections, sidewalks, bike lanes, traffic signals, or paths at key locations •New street connections made by the development community •COST:$13 Public Survey Considering the four transportation improvement packages described below, which one would you choose to best address future growth in the Kimball/Tilley/Hinesburg Road area? Package #1: Transit, Bike & Pedestrian Focused 26% #1 for people living in SB outside study area Package #3: Interchange Access 34% #1 for people living outside South Burlington Package #2:Connected Streets & Paths 25% #1 for people living in study area Package #4:Modest Improvements 15% 14 Transportation System Evaluation Transportation System Evaluation Future (2035) Transportation Assumptions 2035 Land Use: CCRPC model used to establish “No Build” 2035 PM volumes Growth in Study Area based on Property Owner input 2035 MTP growth for remainder of City and County Connector Roads: Tilley Drive, O’Brien, Midland Ave, and Cider Mill connector roads included in all scenarios. Connector roads built by private development community (except Tilley Drive connector) Mode Share: Assumed an additional 5%reduction in single occupant trips (within 1 mile of study area center) resulting from multimodal improvements. New Connector Roads Transportation System Evaluation: Transit System Assumption: –Additional 5%reduction in single-occupantauto trips (within 1 mile of study area) Estimated that 3 new buses will be neededto accommodate these trips –1 New LINK Bus (Route 116) –2 New Buses/Shuttles to increase servicefrequency Future land use pattern to be transit-supportive with transit hubs and shelters atkey locations Cost Estimate –Start-up Capital Costs: $1,200,000 (bus purchase) –Annual Operating Costs: $600,000 17 Assumption: –Additional 5%reduction in single-occupant auto trips (within 1 mile of study area) New multi-use paths / protected bicycle lanes: –VT 116 (Hinesburg Road) –Old Farm Road –Tilley/Kimball Connector –Kimball Avenue New Bicycle/Pedestrian Overpass over I-89 New sidewalks within developments to connectto multi-use paths 18 Transportation System Evaluation: Bicycle & Pedestrian Network New Paths & Sidewalks Bike/Ped Overpass 19 New Paths & Sidewalks Bike/Ped Overpass Assumption: –Additional 5%reduction in single-occupant auto trips (within 1 mile of study area) Cost Estimate: –Based on “Report on Shared-Use Path and Sidewalk Costs”, VTrans, 2020 –Does not include right-of-way costs Transportation System Evaluation: Bicycle & Pedestrian Network 20 Transportation System Evaluation Future Land Use & Trip Generation Assumptions Study Area Growth Estimate: Guided by input from property owners across Study Area, based on conceptual development plans Trip generation based on standard ITE Trip Generation rates Full Build-Out estimated to generate approximately 5,800 PM peak hour (4:30-5:30 pm) trips 21 Scenarios Evaluated No Build 33%, 67%, 100% Build Out Scenarios: New Connector Roads (no Exit 12B or Swift St. Ext.) 100% Build Out with 12B: New Connector Roads + Exit 12B 100% Build Out with Swift Street: New Connector Roads + Swift Street Extension O’Brien Farm Tech ParkTilley Drive Hill Farm Rye Meadowland Transportation System Evaluation 22 Traffic Evaluation Process 1.Add new trips to 2035 network (i.e. 33%, 67%, 100% of Build Out) 2.Distribute new trips onto street network 3.Evaluate intersection operations Thresholds consistent with VTrans LOS Guidelines •Signalized intersections -Overall LOS D with no LOS F approaches •Unsignalized intersections -Stop-controlled approaches LOS D or better 4.Identify improvements as needed to meet LOS targets O’Brien Farm Tech ParkTilley Drive Hill Farm Rye Meadowland Transportation System Evaluation Summary of Results: •Existing Signalized Intersections •No additional lanes needed, just signal optimization •New Roundabout/Signal Needed •VT 116/Meadowland Drive: 33% Scenario •VT 116/Van Sicklen Road: 33% Scenario •VT 116/Cheesefactory Road: 67% Scenario •Additional Turn Lanes Needed (w/ signal) •VT 116/Van Sicklen Road: 100% Scenario •VT 116/Meadowland Dr: 100% Scenario w/ Swift St Ext. Transportation System Evaluation Summary of Results •Existing Signalized Intersections •No additional lanes needed, just signal optimization •New Roundabout/Signal Needed •VT 116/Tilley Drive: 33% Scenario •VT 116/Swift Street Extension: 33% Scenario •VT 116/Van Sicklen Road: 33% Scenario •VT 116/Cheesefactory Road: 67% Scenario •Old Farm Road / O’Brien Connector: 100% Scenario •Kimball Avenue / Old Farm Road: 100% Scenario •VT 116 / Old Farm Road: 100% Scenario •Tilley Drive / Connector: 100% Scenario with Exit 12B •Additional Turn Lanes Needed (w/ signal) •VT 116/Tilley Drive: 100% Scenario •VT 116/Old Farm Road: 100% Scenario •VT 116/Van Sicklen Road: 100% Scenario •VT 116/Swift Street Ext: 100% Scenario w/ Swift St •Tilley Drive/Connector: 100% Scenario w/ Exit 12B DETAIL MAPTransportation System Evaluation Shown on previous map Shown on previous map Transportation System Evaluation –Cost Estimate Cost estimates include design engineering, construction inspection, and construction costs in 2020 dollars. Right-of-way costs are not included. Conclusions Full Build-out unlikely in near term (5,800 peak hour trips); however incremental build-out likely to occur. Full Build-out can be accommodated with moderate intersection upgrades, bike/ped, and transit enhancements $41M for full package (no Swift Street Ext., no Exit 12B) Conclusions Full Build Out unlikely in near term (5,800 peak hour trips); however incremental build-out likely to occur Full Build-out can be accommodated with moderate intersection upgrades, bike/ped, and transit enhancements $41M for full package (no Swift Street Ext., no Exit 12B) Swift Street Extension Primarily facilitates east-west through trips Provides enhanced emergency vehicle accessibility Increases volumes on Tilley Drive by 4% Reduces volumes on Kennedy Drive by 24%. 100% Build (No Swift St Ext.) 100% Build (With Swift St Ext.)Change Swift Street 125 1,200 +860% Kennedy Drive 1,775 1,350 -24% Tilley Drive (with connector)1,400 1,450 +4% PM Peak Hour Traffic Volumes (100% Build Scenario) Conclusions -Continued Exit 12B Provides direct vehicular access to Study Area from I-89 Opportunity to enhance bike/ped connectivity across I-89 Limited traffic capacity benefits in Study Area; Primary trafficbenefits seen around Exits 12 & 14 o With Exit 12B,traffic volumes reduced by 11% at Exit 14 and17%at Exit 12 Will be further evaluated as part of CCRPC I-89 2050 Study Recommendations Pending additional growth in Study Area, 33% & 67% Build-out improvements needed whether Exit 12B or Swift Street Connector constructed. Recommend advancing first tier of improvements into Scoping phase o New Signal/Roundabout -VT 116/Tilley Drive (Developer Mitigation) -VT 116/Meadowland (Developer Mitigation) -VT 116/Van Sicklen -VT 116/Cheesefactory Road -VT 116/Old Farm Road New Sidewalks/Paths -VT 116 Multi-use Path (Kennedy to Van Sicklen) -Kimball Avenue Sidewalk (Kennedy to Comcast Way) -Old Farm Road Multi-Use Path (Entire Length) Integrate recommendations into Official Map, Impact Fees and CIP VT116/Kimball Ave/Tilley DriveLand Use & Transportation Plan Questions? 30 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com MEMORANDUM TO: Kevin Dorn, City Manager; South Burlington City Council FROM: Paul Conner, Director of Planning & Zoning SUBJECT: Proposed Amendments to the Land Development Regulations – Inclusionary Zoning & Affordable Housing Density Bonus DATE: July 6, 2020 This memo addresses two proposed amendments to the Land Development Regulations related to Inclusionary Zoning and Affordable Housing. The Council received the enclosed amendments at its February 3rd meeting and subsequently warned a public hearing. Pursuant to Vermont law, the draft regulations took effect pending Council’s action upon publication of the hearing notice. The Council opened the hearing on May 18, 2020, and elected to immediately continued to it to July 6. Staff and a Commission representative will be present to provide an overview of the draft and respond to questions as they may arise. Following receipt of input from the public, the Council may elect to close the public hearing. After closing the hearing, the Council elect to adopt, reject, or make changes to the draft. If the Council decides to adopt the draft regulations, a motion would read as follows: Draft motion to adopt: I move to adopt Land Development Regulation amendments #LDR-19-13A and LDR-19-13B as presented. Staff has not received any public comments on the draft amendments subsequent to the Planning Commission’s approval. Summary of amendments: The enclosed amendments were approved 5-0 by the Planning Commission following significant work from the Affordable Housing Committee and a collaborative effort with property owners to address functional elements following the Commission’s public hearing. Key elements of the amendments include Inclusionary Zoning Provisions 1.Inclusionary Zoning expanded to include the Transit Overlay District and adjacent areas exempted from Interim Zoning. The current Inclusionary zoning applies only in the City Center FBC District. This draft expands the applicable area to the area shown on the enclosed map (also part of the LDRs). If a parcel or PUD is partially located within the mapped area, the entire parcel or PUD is subject to the standards. 2.Inclusionary Zoning provisions are required for projects with 12 or more new dwelling units 3.Homes must be affordable in perpetuity to the following household area median income (AMI) targets: a.For rental units: 15% of homes priced and eligible to households at or below 80% AMI 2 b.For ownership units: 10% of homes priced at 80% AMI and eligible to households at or below 100% AMI. 4.Developer Offsets and Incentives are critically important because the program should not slow the overall production of housing and the City is obligated under State law to provide offsets to accommodate the developers provision of a public good. The offsets include: a.Prior reduction of parking requirements for all housing in the City (adopted fall 2019) b.One additional market rate unit is granted as offset for each required rental inclusionary unit; c.Two additional market rate units are granted as offset for each required owner inclusionary unit; d.A maximum density increase of 50% where additional inclusionary units above the minimum are provided. The 50% increase mimics the current affordable housing density bonus provision available in these same land areas. e.Alternatives available to developer: land dedication in lieu of inclusionary unit construction and off-site construction of inclusionary units. f.Credit for larger inclusionary units to qualify as more than one required inclusionary unit. g.Allowance for increase building and lot coverage to accommodate offset units 5.Applies to all projects submitting for preliminary plat or site plan review. Affordable Housing Density Bonus 1.The applicable area of this existing standard is reduced to eliminate areas where Inclusionary Zoning applies. 2.The definition of an affordable unit is modified for ownership units from the current requirement of 80% of median income (price and eligibility) to being priced at 80% AMI and eligible to households at or below 100% AMI. 3.Affordable Units must be no less than 70% of the size of market rate units. 4.Administrative elements related to ongoing affordability modified to match Inclusionary Zoning. Enclosures to this packet: For ease and clarity of reading, staff has attached the proposed language in two formats: •Full red-line version. This version shows all changes from the current, adopted language in the Land Development Regulations. Additions are in red underline; deletions are in red strikethrough. •Clean version. This version is a completely clean version of what the LDRs would look like if adopted. •Also enclosed is the Planning Commission’s Report on the draft amendments. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 1 LDR-19-13A: Modify Standards and Expand Applicable Area for Inclusionary Zoning LDR-19-13B: Modify Standards and Reduce Applicable Area for Affordable Housing Density Bonus ARTICLE 2: DEFINITIONS 2.02 Specific Definitions … Affordable housing. A dwelling unit: (A)Owned: (1)The sales price for which does not exceed the maximum price for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington Metropolitan Statistical Area as defined by the United States Department of Housing and Urban Development (Burlington-South Burlington MSA); and (2)For which the total annual cost of ownership, including principal, interest, taxes, condominium association fees and insurance, does not exceed 30% of the gross annual income of a household at 80% of the median income for the Burlington-South Burlington MSA at the time of purchase; and (3)Which is owned by its inhabitants, whose gross annual household income at time of purchase does not exceed 100% of the median income for the Burlington-South Burlington MSA; and (4)The sales price for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; or (B)Rented: (1)The rent for which does not exceed the maximum price calculated for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; and (2)For which the total annual cost of renting, including rent, utilities, and condominium association fees, does not exceed thirty percent (30%) of the gross annual income of a household at 80% of the median income for the Burlington-South Burlington MSA at the time of initial occupancy; and (3)Which is rented by its inhabitants whose gross annual household income at time of initial occupancy does not exceed 80% of the median income for the Burlington-South Burlington MSA; and (4)The rent for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA. This definition, however, does not apply to housing projects covered under inclusionary zoning, pursuant to 24 VSA Section 4414(7). See Section 18.01 (Inclusionary Zoning). LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 2 Affordable housing development. A housing development of which at least fifty percent (50%) of the dwelling units are Affordable Housing, pursuant to Section 18.02 of this ordinance. Habitable Area. The finished areas or spaces of a dwelling unit that are heated (and, where air conditioning is available, cooled) with the rest of the dwelling unit. Household. A group of between one (1) and four (4) unrelated individuals, or one (1) or more individuals related by blood, marriage, adoption and/or fosterage, occupying a dwelling unit and living as a single housekeeping unit. For the purposes of Inclusionary Zoning, the Household Size is the total number of individuals (adults and children) in the household that will occupy an Inclusionary Unit, regardless of each individual household member’s relationship, if any, to other members of the household. Household Income. The household income for an applicant seeking to rent or purchase an Inclusionary Unit is the total combined annual cash income, whether earned (for example, salary, wages, tips, or commissions) or unearned (for example, benefits, unemployment compensation, interest, dividends) of each household member. Inclusionary ownership unit. A dwelling unit: (1)The sales price for which does not exceed the maximum price for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington Metropolitan Statistical Area (MSA), as calculated using a United States Department of Housing and Urban Development (HUD) formula that defines a unit-specific household size based on dwelling unit size (i.e. number of bedrooms); and (2)Which is owned by its inhabitants, whose gross annual household income at time of purchase does not exceed 100% of the median income for the Burlington-South Burlington MSA, adjusted for the household size; and (3)The sales price for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; Note the unit-specific household size based on the number of bedrooms and the actual household size of the purchasing household do not have to be the same. Inclusionary rental unit. A dwelling unit: (1)The rent for which does not exceed the maximum price calculated for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington MSA, to which the unit is targeted, as calculated using a HUD formula that defines a unit-specific household size based on dwelling unit size (i.e. number of bedrooms) to which the inclusionary unit is targeted; and (2)Which is rented by inhabitants whose gross annual household income at time of initial occupancy does not exceed 80% of the median income for the Burlington-South Burlington MSA, adjusted for the household size; and (3)The rent for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; Note the unit-specific household size based on the number of bedrooms and the actual household size of the renting household do not have to be the same. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 3 Inclusionary Unit. A dwelling unit that is either an Inclusionary Ownership Unit or an Inclusionary Rental Unit. Mixed-rate housing development. A housing development that has both market rate and Affordable Housing dwelling units, pursuant to Section 18.02 of these regulations. Article 15 SUBDIVISION and PLANNED UNIT DEVELOPMENT REVIEW … 15.02 Authority and Required Review A. Authority (6) The modification of the maximum residential density for a zoning district shall be permitted only as provided in the applicable district regulations and/or for the provision of affordable housing pursuant to Section 18.01 and 18.02 of these Regulations. Article 17 ADMINISTRATION and ENFORCEMENT … 17.03 Certificates of Occupancy A. Certificate of Occupancy Required. It shall be unlawful to use, occupy or permit the use or occupancy of any land or structure or part thereof created, erected, changed, converted, or wholly or partly altered or enlarged in its use or structure until a certificate of occupancy has been issued therefor by the Administrative Officer conditioned upon the requirements below. B. Certificate of Occupancy Not Required. Certificates of occupancy shall not be required for single- family or two-family dwellings, except as specifically listed below: (1) Certificates of Occupancy are required for single and two family dwellings within the Floodplain Overlay (Zones A, AE, and A1-30) Subdistrict. (2) Certificates of Occupancy are required for single and two-family dwellings that are Inclusionary Units within the applicable locations defined in Section 18.01(B)(1) (Applicability - Zoning Districts and Locations . (3) Certificates of Occupancy are required for dwelling units constructed in accordance with Section 18.03(C)(1) of these Regulations. (4) Certificates of Occupancy are required for replacement dwelling units built in accordance with Section 18.03 of these Regulations. ARTICLE 18 AFFORDABLE HOUSING STANDARDS 18.01 Inclusionary Zoning LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 4 A.Purpose. Inclusionary zoning to provide affordable and moderate income housing in the applicable locations defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article of the City of South Burlington has been adopted pursuant to 24 VSA § 4414(7) for the following purposes: (1)To be a City that is affordable for people of all incomes, lifestyles, and stages of life through the preservation and development of a variety of housing in diverse, accessible neighborhoods, consistent with the South Burlington Comprehensive Plan, as most recently amended; (2)To implement policies that support achievement of housing goals, objectives, and targets included in the South Burlington Comprehensive Plan as most recently amended; (3)To affirmatively address the current and anticipated need for affordable housing units among low- and moderate-income South Burlington households that pay more than 30% of their income on housing, as described in state law (24 VSA § 4303(1)); (4)To mitigate the impacts of market-rate housing development that is unaffordable to low- and moderate-income households on the cost and supply of land and infrastructure available for affordable housing development in the applicable locations; (5)To promote the integrated development of mixed-income housing in the applicable locations, including a range of housing options needed to strengthen, diversify, and contribute to the vitality of the South Burlington community; (6)To promote the development of affordable housing opportunities that are available in locations accessible to goods and services and served by existing or planned public transit services; (7)To ensure that affordable housing units developed under inclusionary zoning remain perpetually affordable. (8)To provide integrated development incentives that contribute to the economic feasibility of providing affordable housing units. B.Applicability (1)Zoning Districts and Locations. Inclusionary Zoning shall apply in the following areas (see also Figure 18-1): (a)All zoning districts that permit residential development and underlie the Transit Overlay District; (b)The parts of the Center City Form-Based Code district that do not underlie the Transit Overlay District; (c)The land in the vicinity of Hinesburg Road that does not underlie the Transit Overlay District and is bounded by Interstate 89 in the southerly direction and the Transit Overlay District in the northerly direction; and (d)The entire area of a parcel or PUD, whichever is greater, that includes land located in any one of the areas listed in Subsections (B)(1)(a)-(c) of this Article. FIGURE 18-1 INCLUSIONARY ZONING APPLICABLE AREA LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 5 (2)Covered Development. (a)Except as otherwise provided in this bylaw, the provisions of this section shall apply in the locations defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article to any development, notwithstanding any phasing of the development, that will result in the creation of twelve (12) or more total dwelling units through subdivision, Planned Unit Development, new construction, or the conversion of an existing structure or structures from non-residential to residential use. (b)In addition, the provisions of this section shall apply to any development within the locations defined in Subsection (B)(1) that will result in the creation of twelve (12) or more units of permanent housing as a congregate care facility, with the exceptions in (3)(b) below. These housing units shall be treated as rental dwelling units for purposes of determining the minimum percentage that must be Inclusionary Rental Units. No Residential Unit Offset or Density Bonus may apply for any type of housing unit for which these regulations do not establish a numerical density limitation. When a LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 6 development includes both dwelling units and housing units permitted as congregate care housing, the number of required inclusionary units shall be determined by the sum of the dwelling units and the housing units contained in the congregate care facility, and distributed proportionally between the two uses. Example: in a development with 40 congregate care housing units and 20 rental residential dwelling units, six (6) of the congregate care housing units are required to be Inclusionary units and three (3) of the residential dwelling units are required to be Inclusionary units. (c)For purposes of this requirement, two or more developments shall be aggregated and considered as one development subject to this section if: ( i)The developments are located on abutting properties; and ( ii) The developments are owned or controlled by the same person; and (iii)Each of the developments was or is subject to Inclusionary Zoning requirements under Land Development Regulations adopted by the City; and (iv)One or more of the developments consists of fewer than twelve (12) dwelling units; and, (iii) Either: (I)The developments will undergo subdivision, construction, or conversion of an existing structure or structures from non-residential to residential use within the same five-year period, which period shall be measured from the date a proper and complete application is first submitted, or (II)A master plan exists, as approved by the City, which includes two or more of the developments. (d)Previously Approved Master Plans (i)The provisions of this section shall apply in the locations defined in Subsection (B)(1) of this Article to any portion of a Master Plan approved after January 1, 2020, that will result in the creation of twelve (12) or more total dwelling units for which the City has not received a complete application for preliminary plat approval and/or site plan approval. The addition of offset residential units allowed under Section F of this Article alone shall not be considered a deviation of the master plan pursuant to Section 15.07(D) of these regulations that requires amendment of the master plan. (ii)The provisions of this section shall apply in the locations defined in Subsection (B)(1) of this Article to any portion of an approved master plan proposed for an amendment that includes an increase in the number of dwelling units and/or adding land to the master plan. (3)Exemptions. The following developments are exempt from these requirements: (a)Projects that are developed by an educational institution for the exclusive residential use and occupancy of its students. (b)Institutional, group homes or group quarters housing, including long-term care facilities. (c)The redevelopment of existing dwelling units in a project that produces no additional units. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 7 C. Inclusionary Units (1) For covered development, at least fifteen percent (15%) of the total dwelling units offered for rent shall be Inclusionary Rental Units and at least ten percent (10%) of the total dwelling units offered for sale, including units offered for sale in fee simple, shared, condominium or cooperative ownership, shall be Inclusionary Ownership Units. Prior to or upon request for the Certificate of Occupancy the applicant shall notify the City whether the units will be Inclusionary Rental Units or Inclusionary Ownership Units so that the City, or its designee, may confirm that the offered rents or sales prices meet these requirements prior to issuance of the Certificate of Occupancy. In addition: (a) Where the application of this formula results in a fractional dwelling unit, that fractional dwelling unit shall be rounded to the nearest whole number (fractions that are greater than n.00 but less than n.50 are rounded down; fractions that are greater than or equal to n.50 but less than n+1.00 are rounded up). (b) When a covered development results in 12 or more lots that are sold prior to development, 10% of the lots must include deed restrictions that satisfy these inclusionary zoning requirements. (2) Inclusionary units required under this section shall be: (a) Constructed on site, unless off-site construction is approved under Subsection (E)(1)(b) (Off- Site Construction) of this Article. (b) Integrated into the overall project layout and similar in architectural style and outward appearance to market rate units in the proposed development. (i) Inclusionary units shall be physically integrated into and complement the overall layout, scale, and massing of the proposed development; this criterion may be achieved in a single building or multiple buildings. (ii) Inclusionary units shall be constructed with the same exterior materials and architectural design detail quality as those of the market rate units in the development . The exterior amenities and landscaping provided for the inclusionary units shall be similar to those provided for the market rate units in the development. However, the exterior dimensions of the inclusionary units may differ from those of the market rate units. (iii) Inclusionary units shall be no less energy efficient than market rate units; (iv) Inclusionary units may differ from market rate units with regard to both interior amenities and amount of Habitable Area. However, the minimum Habitable Area of inclusionary units shall be 450 square feet for studios, 650 square feet for 1-bedroom units, 900 square feet for 2- bedroom units and 1,200 square feet for three (3) or more bedrooms. If the average (mean) area of the Habitable Area of the market rate units is less than the minimum area required for the Habitable Area of inclusionary units, then the Habitable Area of the inclusionary units shall be no less than 90% of the average (mean) Habitable Area of the market rate units. (v) Inclusionary units developed as part of a housing development of predominantly market rate duplexes and/or multi-family dwellings may be of varied types. Inclusionary units developed as part of a predominantly-single-family housing development may be accommodated in buildings containing up to four (4) dwelling units that have the appearance of single family homes through their scale, massing, and architectural style. (vi) There shall be no indications from common areas that these units are inclusionary units. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 8 (vii)The average (mean) number of bedrooms in the inclusionary units shall be no fewer than the average number of bedrooms in the market rate units. For projects involving 50 or more dwelling units, the applicant shall provide a revised estimate to the Administrative Officer at each interval of 50 dwelling units; the revised estimate shall account for the differences in estimates vs. actuals for the units permitted to date and shall apply to inclusionary units for which the Administrative Officer has not issued a zoning permit. (viii)Unfinished space within an Inclusionary Ownership Unit that is not initially constructed as bedroom, but which can be converted to such, may count as a bedroom. No more than one (1) bedroom per inclusionary ownership unit may be counted in this manner. (c)Constructed and made available for occupancy concurrently with market rate units. The applicant shall provide a proposed phasing plan demonstrating concurrent development and occupancy of the market rate units and the inclusionary units. The Development Review Board may attach conditions necessary to assure compliance with this section and may, based on documentation from a financial institution denying financing or on physical site constraints, approve a plan allowing non-concurrent construction of the inclusionary units. .D. Affordability Requirements. The basis for determining maximum rental and purchase prices for inclusionary units and applicant rental or purchaser household eligibility for accessing inclusionary units under this section are described below. The data used to determine the incomes, rents and purchase prices is updated annually by U.S. Department of Housing and Urban Development (HUD). The Vermont specific data is updated annually on the Vermont Housing Data website, managed by the Vermont Housing Finance Agency, in a table titled “Maximum rent and purchase price affordability thresholds by income and household size”. Refer to this table in administration of this section. (1)Maximum rent and purchase prices. (a)For Inclusionary Rental Units, the maximum monthly rent that may be charged is one-twelfth of 30% of the targeted Area Median Income (80%) corresponding to the size of the specific unit (measured in number of bedrooms). When any component of the rental housing costs is excluded, the maximum rent that may be charged is reduced accordingly. (b)For Inclusionary Ownership Units, the maximum monthly housing cost that the owner(s) may be required to pay is one-twelfth of 30% of the targeted Area Median Income (80%) corresponding to the size of the specific unit (measured in number of bedrooms). (c)Maximum rent and purchase price calculation. Maximum Rents and Purchase Prices for Inclusionary Units are calculated based on three components: housing costs, area median income targets, and the number of bedrooms in the inclusionary unit. (i)Housing costs shall include: (I)For Inclusionary Rental Units – rent and utilities (water, electricity and heating costs). (II)For Inclusionary Ownership Units – mortgage principal and interest, annual property taxes, average annual homeowner’s insurance premiums, and average annual mortgage insurance premiums, and 50% of annual condominium or homeowners’ association fees. (ii)Area Median Incomes (AMI) Targets. HUD estimates the Area Median Income for households residing in the Burlington-South Burlington Metropolitan Statistical Area (MSA) and, in addition, for households of varying sizes residing in the MSA. HUD also calculates AMI ratios, including 80% AMI, for households of varying sizes in the MSA. HUD publishes this AMI-based annual household income information annually. Maximum rents and sales prices shall be LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 9 determined using the most recent HUD-published income guidelines available at the time the unit is available for occupancy. (iii)Number of bedrooms. Rental and purchase prices of inclusionary units are not linked to the size of the household that rents or purchases the inclusionary unit. Number of bedrooms is used to define a household size linked to the specific unit. The use of “number of bedrooms” for this purpose is explained under the Vermont Housing Data website’s annual maximum rent and purchase price tables entitled “Maximum rent and purchase price affordability thresholds by income and household size”. (2)Renter and Home-buyer Income Eligibility. Income eligibility for an applicant household is determined based on three components: Household Size, Household Income and Annual Median Income (AMI) targets for Inclusionary Units. The AMI amounts for applicants seeking to rent or purchase an Inclusionary Unit shall be determined using the most recent HUD-published income guidelines available at the time the unit is available for occupancy. (a)For renters, households, regardless of household size, are eligible for inclusionary rental units so long as their combined household income does not exceed 80% AMI. (b)For home-buyers, households, regardless of household size, are eligible for inclusionary ownership units so long as their combined household income does not exceed 100% AMI. (3)Flexibility between maximum rent and purchase prices and eligible renter or purchaser households. (a)Eligible renter or purchaser households may rent or purchase an Inclusionary Unit with a rent or purchase price linked to a household size (derived from number of bedrooms) that is not the same as the eligible Household’s size. Examples: ●a two-person household may purchase a three-bedroom house or condominium. ●a three-person household may rent a one-bedroom apartment. (b)Eligible renter or purchaser households may rent or purchase an Inclusionary Unit with an AMI target that is higher than the eligible Household’s AMI percentage. Examples: ●a three-person household whose income is 70% of AMI (for its household size) may rent an apartment for which the rent is targeted to 80% of AMI. ●a two-person household whose income is 90% of AMI (for its household size) may purchase a condominium or house for which the purchase price is targeted to 80% of AMI. (c)Eligible renter or purchaser households may rent or purchase an Inclusionary Unit for which the housing costs exceed 30% of the eligible Household’s income. (4)Alternative Eligibility Criteria. When an affordable housing organization is a partner in a covered development, eligibility may be determined in accordance with program-based eligibility requirements established by the partner housing organization. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 10 (5)Continued Affordability. An inclusionary unit shall remain affordable in perpetuity commencing from the date of initial occupancy, through a deed restriction, restrictive covenant, or through purchase by or a contractual agreement with a local, state or federal housing authority or nonprofit housing agency, to be reviewed by the City Attorney and approved by the City Manager, or their designees, prior to recording in the City of South Burlington Land Records. Any deed restriction, covenant or other instrument or agreement ensuring the continued affordability of inclusionary units shall include: (a)Resale Restrictions. Provisions to ensure the affordability of units offered for sale shall include a formula for limiting the resale price to whatever is the higher of the purchase price the seller paid plus 2% for each year of ownership (non-compounding), or what is affordable to a household at 80% AMI at the time of resale. Eligible households are those having incomes no greater than 100% AMI at the time of purchase. In addition, the City shall have the option to purchase or transfer its option to purchase Inclusionary Ownership Units at each future time of resale. In addition, any covenant shall have language to ensure the continuing affordability of Inclusionary Rental Units if the unit or property offered for sale instead will be offered for rental. (i) The seller or his/her representative shall notify the City Manager or his/her designee of the prospective sale of an Inclusionary Ownership Unit; (ii) The City Manager or his/her designee, in consultation with the members of the Housing Trust Fund Committee, shall then have an exclusive option for thirty (30) days to purchase the Inclusionary Ownership Unit from the seller at a price consistent with the requirements of this subsection unless the City Manager or his/her designee waives the option by declaring in writing an intent not to exercise the option or transfers the option as described in Subsection (D)(5)(a)(iv) of this Article; (iii)If the City Manager or his/her designee, in consultation with the members of the Housing Trust Fund Committee, fails to exercise such option by failing to negotiate and sign a purchase and sale agreement for purchase of the Inclusionary Ownership Unit, or declaring an intent not to exercise such option, the seller shall offer the Inclusionary Ownership Unit for purchase to income-eligible households in accordance with the requirements of subsection 18.01(D)(5)(a) (Affordability Requirements). (iv) On or before a purchase and sale agreement is executed between the seller and the City Manager or his/her designee, s/he may assign the City’s option specified in this subsection to purchase the Inclusionary Ownership Unit to a 501(c)(3) organization whose primary purpose is the supply of affordable housing in perpetuity. Upon the decision to exercise this transfer option, the City Manager or his/her designee shall notify the seller of such assignment. The organization to which the City has assigned the option shall deal directly with the seller and shall have all of the authority of the City Manager, as provided under this subsection. (b)Rent Changes. Provisions to ensure the affordability of Inclusionary Rental Units shall require that annual rent changes not exceed the percentage change in the median household income within the Burlington-South Burlington MSA, when the change is an increase; and that annual rent changes match the percentage change in the median household income within the Burlington-South Burlington MSA, when the change is a decrease. An exception to the limit on increases or required decreases is permitted to the extent that further increases or delayed decreases are made necessary by documented hardship or other unusual conditions. Such exceptions may not take effect until approved in writing by the City Manager or his/her designee; LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 11 (c) Sublet Restrictions. Provisions for inclusionary Rental Units shall prohibit the subletting of units at rental rates and/or to households that exceed affordability limits established pursuant to this section. (6) Reporting Requirements. Annually, the owner of a project that includes inclusionary rental units shall prepare and submit a report to the City Manager that lists the gross rents charged for inclusionary units and household incomes at move-in, based on documentation provided by tenant for owner’s completion of form provided by the City, to certify that Inclusionary Rental Unit rent maximums and household income maximums have been maintained as required. E. Developer Options (1) Options (a) and (b) below are available to developers, upon request, as necessary to address financial hardships based on documentation from a financial institution denying financing or physical site constraints that limit or preclude the incorporation of inclusionary units within a covered development. Options (c) and (d) are available to the developer at his or her discretion. A payment or contribution in lieu of constructing required inclusionary units shall be prohibited. (a) Dedication. The South Burlington City Council, in consultation with the South Burlington Affordable Housing Committee, may accept as an alternative to the development of inclusionary units, a dedication by the developer of equal or greater value, including land and expected inclusionary unit value, that furthers the purposes of this section. An example might be the donation of developable land in the City Center Form Based Codes District that provides accessibility to transit, employment opportunities, and services. (b) Off-Site Construction. The developer of a covered development may comply with the requirements of this section by constructing, within two years of the date of the decision approving the covered development, the required number of inclusionary units on another parcel within the same contiguous underlying zoning district in which the covered development is located , or contracting with another entity to construct the required number of units within the same contiguous underlying zoning district in which the covered development is located. This condition shall not be considered satisfied until certificates of occupancy have been issued for all off-site inclusionary units . Off-site means outside the boundaries of the lot or PUD on which the covered development is located. (c) A developer who constructs inclusionary units having three bedrooms shall receive credit for three inclusionary units for every two three-bedroom inclusionary units constructed. These credit inclusionary units earned under these provisions are ineligible for offset or bonus units. (d) A developer who constructs inclusionary units having four bedrooms shall receive credit for four inclusionary units for every two four-bedroom inclusionary units constructed. These credit inclusionary units earned under these provisions are ineligible for offset or bonus units. F. Offset for Fulfillment of Inclusionary Unit Requirements (1) Residential Unit Offset. To offset an applicant’s fulfillment of this Section’s inclusionary unit requirement is an allotment of one additional dwelling unit for each required Inclusionary Rental Unit that is constructed; or an allotment of two additional dwelling units for each required Inclusionary Ownership Unit that is constructed. This offset shall not be provided for any required unit for which the developer receives approval for the Dedication as described in 18.01(E)(1)(a) herein. (a) Offset residential units are not subject to the inclusionary affordability requirements. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 12 (b)The offset described above shall be approved as long as the total housing units in the specific covered development do not result in non-compliance with Section 15.02(A)(4). Example (1): In a 24-unit owner housing development on a six-acre plot in a R4 district, the developer is required to build two (2) inclusionary units The developer shall receive an offset of four (4) market rate dwelling units, and the project now includes a total of 28 dwelling units. Example (2): In a 36-unit rental housing development on a three-acre plot in a R12 district, the developer is required to build five (5) inclusionary units. The developer shall receive an offset of five (5) market rate dwelling units, and the project now includes a total of 41 dwelling units. (c)Where a zoning district establishes a maximum building coverage of less than twenty percent (20%) and/or a maximum overall lot coverage of less than thirty percent (30%), the applicable maximum coverage in that district shall be increased to accommodate the offset units. For Inclusionary Ownership Units, this increase shall be twenty percent (20%) and for Inclusionary Rental Units, this increase shall be fifteen percent (15%). Example (1): In a zoning district with a maximum building coverage of fifteen percent (15%), the maximum building coverage shall be increased to eighteen percent (18%) to accommodate offset Inclusionary Ownership Units. Example (2): In a zoning district with a maximum building coverage of fifteen percent (15%), the maximum building coverage shall be increased to seventeen and 25/100 percent (17.25%) to accommodate Inclusionary Rental Units. G. Density Bonuses for Exceeding Inclusionary Housing Requirements (1)Applicability. This subsection applies in zoning districts or portions thereof as defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article, in which residential development is allowed. However, density is not a dimensional requirement in the City Center Form Based Code districts, therefore this section is not relevant in those districts. (2)Density Bonuses. When an applicant voluntarily includes, in the base zoning density unit- maximum for the development, more than the number of inclusionary units required under Section 18.01(C)(1), then upon the applicant’s request, the development shall receive, in addition to the offset units, a density bonus. The density bonus shall be one dwelling unit for each voluntary Inclusionary Rental Unit and two dwelling units for each voluntary Inclusionary Ownership Unit, up to a maximum density of 50% more than the base maximum density permitted in the zoning district. In zoning districts where additional density is permitted via Planned Unit Development, the base density shall be defined as the maximum density for the district without use of PUDs. Density bonus dwelling units are not subject to the inclusionary affordability requirements. Example (1): In a 24-unit owner housing development on a six-acre plot in a R4 district, the developer is required to build two (2) inclusionary units. The developer shall receive an offset of four (4) market rate dwelling units, and the project now includes a total of 28 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 8 additional units in this example since the offset units need to be accounted for), the developer includes an additional four (4) inclusionary units in the base zoning density unit-maximum (24) for which the developer receives 12 bonus density units. In sum, the total project includes 36 units, 6 of which are inclusionary (17% of the units) and 30 of which are market rate (83% of the units). LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 13 Example (2): In a 36-unit rental housing development on a three-acre plot in a R12 district, the developer is required to build five (5) inclusionary units. The developer shall receive an offset of five (5) market rate dwelling units, and the project now includes a total of 41 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 13 additional units in this example since the offset units need to be accounted for), the developer includes an additional thirteen (13) inclusionary units in the base zoning density unit-maximum (36) for which the developer receives 13 bonus density units. In sum, the total project includes 54 units, 18 of which are inclusionary (33% of the units) and 36 of which are market rate (67% of the units). Example (3): In a 40-unit owner housing development on a ten-acre plot in a R4 district, the developer is required to build four (4) inclusionary units. The developer shall receive an offset of eight (8) market rate dwelling units, and the project now includes a total of 48 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 12 additional units in this example since the offset units need to be accounted for), the developer includes an additional six (6) inclusionary units in the base zoning density unit-maximum (40) for which the developer receives 12 bonus density units. In sum, the total project includes 60 units, 10 of which are inclusionary (17% of the units) and 50 of which are market rate (83% of the units). Example (4): In a 40-unit rental housing development on a 10-acre plot in a R4 district, the developer is required to build six (6) inclusionary units. The developer shall receive an offset of six (6) market rate dwelling units, and the project now includes a total of 46 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 14 additional units in this example since the offset units need to be accounted for), the developer includes an additional fourteen (14) inclusionary units in the base zoning density unit-maximum (40) for which the developer receives 14 bonus density units. In sum, the total project includes 60 units, 20 of which are inclusionary (33% of the units) and 40 of which are market rate (67% of the units). H. Affordable Housing Density Bonuses for Developments with Fewer than 12 Dwelling Units (1) Applicability. This subsection applies in zoning districts or portions thereof as defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article, in which residential development is allowed. However, since density is not a dimensional requirement in the City Center Form Based Code District, this section is not relevant in that District. (2) Density Bonus. For applications that include at least three (3) but fewer than twelve (12) dwelling units (calculated using the base zoning density unit-maximum for the development), where the developer has opted to construct one or more inclusionary units any approval shall, upon request of the applicant, include a density bonus over the base zoning density. The density bonus shall be one dwelling unit for each inclusionary rental unit and two dwelling units for each inclusionary ownership unit included voluntarily, up to a maximum density of 50% more than the base density. The density bonus units are not subject to the inclusionary affordability requirements. *I. Administration and Compliance (1) Application Requirements. In addition to other submission requirements applicable to proposed projects specified within this bylaw, applications under this section shall include the following information: (a) A site or subdivision plan that identifies the number, locations, types, and sizes of inclusionary units in relation to market rate units; LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 14 (b)Documentation supporting the allocation of inclusionary and market rate units, including inclusionary unit set aside calculations; (c)A description of each unit’s type, floor area, number of bedrooms, estimated housing costs, and other data necessary to determine unit affordability; (d)A list of proposed options, if any, to be incorporated in the plan, as provided for under Subsection (E) (Developer Options) of this Article; (e)Documentation regarding household income eligibility; (f)Information regarding the long-term management of inclusionary units, including the responsible party or parties, as required to ensure continued affordability; (g)Draft legal documents required under this section to ensure continued affordability; (h)Construction timeline for both inclusionary and market rate units; and (i)Other information as requested by the Administrative Officer to determine project compliance with inclusionary zoning requirements. (2)(3) Ongoing Compliance. The City of South Burlington Housing Authority, if any; or City Manager or his/her designee or another municipal entity; or a bona fide qualified non-profit organization, as determined by the South Burlington City Council, shall be responsible for the on-going administration of the inclusionary units as well as for the promulgation of such rules, regulations, and/or procedures as may be necessary to implement this program. The Housing Authority, or City Manager or his/her designee, or other municipal entity, or non-profit organization shall define and implement eligibility priorities, continuing eligibility standards and enforcement, and rental and sales procedures. (3)Program Evaluation. In order to monitor and track the success of inclusionary zoning in meeting the purposes of this section and the City’s affordable housing goals and targets, the City Manager or his/her designee shall: (a)Collect and maintain income eligibility guidelines, mortgage interest rate information, and other information necessary to meet the requirements of this section; (b)Monitor and maintain records regarding the status of inclusionary units developed under this Section 18.01; and (c)Prepare an annual written report for distribution to the South Burlington City Council and Planning Commission and posting on the City’s website, to be considered in a public meeting, that summarizes the status of covered projects and inclusionary units approved to date, and sets forth program findings, conclusions, and recommendations for any changes that will increase the effectiveness of inclusionary zoning. 18.02 Affordable Housing Density Bonus A.Purpose. One of the adopted Comprehensive Plan goals is the availability of quality housing and quality affordable housing to attract and retain a qualified work force. The following provisions are established to enable the City of South Burlington to ensure a supply of standard housing available at below-market rate purchase prices or rents. In this way, a choice of housing opportunities for a variety of income groups within the City can be created in accordance with the Comprehensive Plan and these Regulations. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 15 B.Applicability. This section shall apply in any Zoning District in which residential development is permitted, with the exception of the applicable locations defined in Section 18.01 (B)(1) (Applicability - Zoning Districts and Locations) of this Article. C.Density Increase. On a case by case basis and as part of the Planned Unit Development application, the Development Review Board may grant an increase in residential density over the base zoning density, in order to create below market rate housing. The density increases shall be approved on the following criteria and standards: (1)Affordable Housing Development. The Development Review Board may grant a density increase of no more than fifty percent (50%) in the total number of allowed dwelling units for an Affordable Housing Development. The total of Affordable Housing units shall be at least half of the total proposed dwelling units. Where the total proposed dwelling units is an uneven number, the total of below market rate units shall be calculated as at least the total proposed dwelling units, less one (1), divided by two. Such application shall be subject to Article 14, Site Plan and Conditional Use Review, and Article 15, Subdivision and Planned Unit Development Review. (2)Mixed Rate Housing Development. The Development Review Board may grant a density increase of no more than twenty-five percent (25%) in the total number of allowed dwelling units for a Mixed Rate Housing Development. For each additional market-rate dwelling unit produced as a result of the density increase, one (1) qualifying comparable Affordable Housing unit must be provided. Such application shall be subject to Article 14, Site Plan and Conditional Use Review, and Article 15, Subdivision and Planned Unit Development Review. Table 13-9 Example of Affordable Housing Bonus Calculation Affordable Project: Mixed-Rate Project: 50% of Total Units Affordable 25% of Bonus Units Affordable Acres 8.35 8.35 Base Density 12 12 Base Units 100.2* 100.2* Bonus Units 50 25 Total Units 150 125 Net Density 17.98 14.99 Affordable Units 74 13 Market Rate Units 74 112 *Partial units always round DOWN to the lower whole number of units D.Criteria for Awarding Density Increase. In addition to the standards found in Article 14, Site Plan and Conditional Use Review, and Article 15, Subdivision and Planned Unit Development Review, the following standards shall guide the Development Review Board: (1)The density upon which a bonus may be based shall be the total acreage of the property in question multiplied by the maximum residential density per acre for the applicable zoning district or districts. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 16 (2)Within the Residential 1 and Residential 2 zoning districts, the provisions of this Section 13.14 shall apply only to properties of five (5) acres or more, and the maximum allowable residential density with or without such a density increase shall be four (4) dwelling units per acre. (3)Development Standards. (a)Distribution. The affordable housing units shall be physically integrated into the design of the development in a manner satisfactory to the Development Review Board and shall be distributed among the housing types in the proposed housing development in the same proportion as all other units in the development, unless a different proportion is approved by the Development Review Board as being better related to the housing needs, current or projected, of the City of South Burlington. (b)Minimum Floor Area. Minimum Habitable Area per affordable dwelling unit shall be no smaller than 70% of the amount of the Habitable Areas of comparable market-rate units in the housing development. (c)Plan for Continued Affordability. The standards set forth in Section 18.01(D)(5) and (6) shall apply. (4)Administration. The City of South Burlington Housing Authority, if any, the City Manager and/or his/her designees, or a bona fide qualified non-profit organization shall be responsible for the on-going administration of the affordable housing units as well as for the promulgation of such rules and regulations as may be necessary to implement this program. The Housing Authority or non-profit organization will determine and implement eligibility priorities, continuing eligibility standards and enforcement, and rental and sales procedures. E.Housing Types. The dwelling units may at the discretion of the Development Review Board be of varied types including one-family, two-family, or multi-family construction, and studio, one-bedroom, two-bedroom, three-bedroom and four-bedroom apartment construction. 18.03 Housing Preservation A.Purpose. The intent of this Section is to achieve one or more of these goals: (1) To promote the health, safety and general welfare of the community by preserving existing housing stock in residential neighborhoods, particularly the supply of affordable and moderately-priced homes through the use of housing retention requirements as referenced in South Burlington’s 2016 Comprehensive Plan; (2)To reduce and mitigate the demolition and conversion to nonresidential use or nonuse of residential structures, and to maintain housing that meets the needs of all economic groups within the City particularly for those of low and moderate income; (3)To meet the specific mandates of 24 V.S.A. Section 4302(11) related to housing opportunities for safe and affordable housing for all Vermonters and to meet the needs of the diverse social and income groups in each Vermont community; (4)To support the retention of housing units in the City; (5)To promote the health safety and welfare of the community by preserving the residential character of neighborhoods; and, LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 17 (6) To offset the loss of housing by requiring replacement of housing units with new construction, conversion of nonresidential to residential use or a contribution to the City of South Burlington Housing Trust Fund. B. Applicability. Except as otherwise provided in sub-section C (Exemptions), this Section 18.03 of these Regulations is applicable to the loss, demolition or conversion to a nonresidential use or nonuse (for example a vacant lot) of any dwelling unit in the City. This includes without limitation any of the following: (1) any dwelling unit that is demolished, removed, or declared unfit for habitation pursuant to any order, decision or other action of the City or State that is caused by unreasonable neglect or deferred maintenance of an existing or prior owner(s); (2) any dwelling unit that is demolished or removed pursuant to any municipal, State or Federal program, including any air traffic or airport noise mitigation and compatibility program; and/or, (3) the loss, demolition or conversion to nonresidential use or non-use of any other form of permanent housing, including but not limited to housing units contained within a housing facility that is permitted as a congregate care facility, except group homes, residential care facilities, or skilled nursing facilities as defined in these Regulations. C. Exemptions. This Section shall not be applicable to: (1) The redevelopment of a dwelling unit or any other form of permanent housing, including but not limited to housing units contained within a housing facility that is permitted as a congregate care facility, within a two (2) year period. Any applicant for a demolition permit seeking to avail themselves of this exemption shall be required to obtain a Certificate of Occupancy within two (2) years of the date of issuance of the demolition permit thereby demonstrating redevelopment of the dwelling unit and restoration of the residential use on the same parcel. (2) Any dwelling unit ordered demolished or declared unfit for habitation because of damage caused by civil commotion, malicious mischief, vandalism, natural disaster, fire, flood or other causes beyond the owner’s control. (3) Dwelling units existing in the following zoning districts: City Center Form Based Code, Industrial – Open Space, Mixed Industrial & Commercial, Swift Street, Institutional-Agricultural, Parks & Recreation, Municipal, Commercial 1-AIR, Airport, and Airport-Industrial. (4) The conversion of a duplex to a single-family home. (5) As of the initial effective date of this Section, any dwelling units: (a) For which the Burlington International Airport / City of Burlington has obtained Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant funding approval for the acquisition, demolition or removal pursuant to the FAA’s Part 150 Noise Compatibility Program. This includes the dwelling units identified in FAA AIP grant numbers, AIP-94, AIP-105, and AIP-109 whether or not these dwelling units have been purchased or removed as of January 1, 2018. (b) Indicated on the 2009 Burlington International Airport Part 150 Noise Inventory and Re-Use Plan “Proposed Property Acquisition Program” map, Figure 4: Detailed Acquisition Plan, dated April 23, 2009. See Appendix H for a complete listing of properties by address. (6) The removal of accessory dwelling units. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 18 D. Approval. Notwithstanding any other provision of these Regulations and unless otherwise exempt under sub-section C of this Section, no dwelling unit shall be removed, demolished, or converted to a nonresidential use or nonuse, without receipt of a zoning permit in accordance with this Section. In addition to any other submission requirements in these Regulations, the applicant shall submit as part of a zoning permit application under this Section: (1)A statement certifying the number of dwelling units to be demolished or converted to nonresidential use and the number of bedrooms existing within each of these units; (2)A demonstration of compliance with tenant or occupant notice and relocation provisions of applicable state and federal law; and (3)A demonstration of compliance with sub-section E, F and G (if applicable) of this Section. E. Housing replacement requirement. In addition to any other requirements for approval under these Regulations, approval of the zoning permit referred to in Sub-section D above requires the replacement of each dwelling unit that is to be removed, demolished, or converted to nonresidential use or nonuse with a replacement dwelling unit. Any dwelling unit approved under Section 18.01 or 18.02 shall not qualify as a replacement dwelling unit. This replacement requirement may be satisfied in one of the following ways: (1)Construction of a new dwelling unit in accordance with sub-section F of this Section; (2)The conversion of a non-residential building to residential use in accordance with sub-section F of this Section; or, (3)Contribution to the Housing Trust Fund. Payment to the City of South Burlington’s Housing Trust Fund for each dwelling unit that is removed, demolished, or converted to nonresidential uses or nonuse in an amount equal to twenty-five percent (25%) of the higher of (1) the most recent assed valuation the premises as modified by the CLA (Common Level of Appraisal) or (2) the most recent sales price of the premises. F.Replacement Dwelling Unit Requirement. In addition to the foregoing, all replacement dwelling units built pursuant to this Section must meet the following requirements: (1)Each replacement dwelling unit shall have at least the same number of bedrooms as the dwelling unit being replaced; (2)Each replacement dwelling unit must be located within the City of South Burlington; (3)Each replacement dwelling unit must receive a Certificate of Occupancy within eighteen (18) months of the date on which the zoning permit referenced in Sub-section D above is approved; (4)Each rental replacement dwelling unit(s) must be maintained either as a Group Home or as a leased “Affordable Housing” unit, as that term is defined in Article 2 of these Regulations to prospective occupants who are income eligible at the time they first lease the unit, for a period of not less than twenty (20) years from the date of first occupancy. (5)Each non-rental replacement dwelling unit(s) must be offered for sale either: (a)At or below the fair market value of the dwelling unit that was removed, demolished, or converted to nonresidential use or nonuse, as determined either (i) by an appraisal provided by the applicant, or (ii) by the City’s latest assessed value of the premises including the dwelling unit that was removed, demolished, or converted to nonresidential use or to nonuse; or (b)As an “Affordable Housing” unit, as that term is defined in Article 2 of these Regulations, to prospective purchaser/occupants who are income eligible at the time they purchase the unit. Any such LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 19 unit shall be subject to a covenant restricting the sale of the dwelling unit for a twenty (20) year period to an owner/occupant who qualifies by income. (6)Income eligibility for replacement units described in this subsection shall be determined based on income guidelines, as adjusted for household size, published annually by the U.S. Department of Housing and Urban Development (HUD) for the Burlington-South Burlington Metropolitan Statistical Area (MSA), or on program-based income eligibility requirements established by a partnering housing organization. The income eligibility shall be determined using the most recent income guidelines available at the time a unit is available for occupancy. G. Performance Guaranty/Letter of Credit. When an applicant proposes to construct a new replacement dwelling unit or convert a non-residential building to a replacement residential unit, the applicant must post a performance guaranty in the form of a letter of credit, or other security acceptable to the City Attorney, in the amount equivalent to the amount the applicant would have been required to contribute to the City of South Burlington’s Housing Trust Fund if the applicant had chosen that option pursuant to Sub-section E(3), above. Such a performance guaranty shall be valid for no more than two (2) years, after which the full amount due shall be provided to the City of South Burlington’s Housing Trust Fund if a replacement dwelling unit satisfying the conditions of this Section has not been granted a Certificate of Occupancy as a dwelling unit. H. Administration. The City of South Burlington Housing Authority, if any, or a bona fide qualified non- profit organization approved by the City of South Burlington following demonstration of its qualifications shall be responsible for the on-going administration of this section as well as for the promulgation of such rules and regulations as may be necessary to implement this section. The Housing Authority or non-profit organization will determine and implement eligibility priorities, continuing eligibility standards and enforcement, and rental and sales procedures. I.Violations. In the event of a violation of this Section, an enforcement action in accordance with Article 17 shall commence and the requirements of this Section shall apply in addition to any other remedies available to the City by law. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT South Burlington Land Development Regulations 1 LDR-19-13A: Modify Standards and Expand Applicable Area for Inclusionary Zoning LDR-19-13B: Modify Standards and Reduce Applicable Area for Affordable Housing Density Bonus ARTICLE 2: DEFINITIONS 2.02 Specific Definitions … Affordable housing. this shall meanHousing that is either of the following:A dwelling unit: (A) Owned: (1) The sales price for which does not exceed the maximum price for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington Metropolitan Statistical Area as defined by the United States Department of Housing and Urban Development (Burlington-South Burlington MSA); and (2) For which the total annual cost of ownership, including principal, interest, taxes, condominium association fees and insurance, does not exceed 30% of the gross annual income of a household at 80% of the median income for the Burlington-South Burlington MSA at the time of purchase; and (3) Which is owned by its inhabitants, whose gross annual household income at time of purchase does not exceed 100% of the median income for the Burlington-South Burlington MSA; and (4) The sales price for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA;Housing that is owned by its inhabitants, whose gross annual household income does not exceed eighty percent (80) of the median income for the Burlington-South Burlington Metropolitan Statistical Area (MSA), as defined by the United States Department of Housing and Urban Development, and the total annual cost of the housing, including principal, interest, taxes and insurance, is not more than thirty percent (30%) of the household’s gross annual income; or (B) Housing that is rRented by its inhabitants: (1) The rent for which does not exceed the maximum price calculated for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; and (2) For which the total annual cost of renting, including rent, utilities, and condominium association fees, does not exceed thirty percent (30%) of the gross annual income of a household at 80% of the median income for the Burlington-South Burlington MSA at the time of initial occupancy; and (3) Which is rented by its inhabitants whose gross annual household income at time of initial occupancy does not exceed 80% of the median income for the Burlington-South Burlington MSA; and LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 2 (4)The rent for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA. whose gross annual household income does not exceed eighty percent (80%) of the median income for the Burlington-South Burlington Metropolitan Statistical Area (MSA), as defined by the United States Department of Housing and Urban Development, and the total annual cost of the housing, including rent, utilities, and condominium association fees, is not more than thirty percent (30%) of the household’s gross annual income This definition, however, does not apply to housing projects covered under inclusionary zoning, pursuant to 24 VSA Section 4414(7). See Section 18.01 (Inclusionary Zoning). Affordable housing development. A housing development of which at least fifty percent (50%) of the dwelling units are aAffordable Hhousing units, pursuant to Section 18.02 of this ordinance. Habitable Area. The finished areas or spaces of a dwelling unit that are heated (and, where air conditioning is available, cooled) with the rest of the dwelling unit. Household. A group of between one (1) and four (4) unrelated individuals, or one (1) or more individuals related by blood, marriage, adoption and/or fosterage, occupying a dwelling unit and living as a single housekeeping unit. For the purposes of Inclusionary Zoning, the Household Size is the total number of individuals (adults and children) in the household that will occupy an Inclusionary Unit, regardless of each individual household member’s relationship, if any, to other members of the household. Household Income. The household income for an applicant seeking to rent or purchase an Inclusionary Unit is the total combined annual cash income, whether earned (for example, salary, wages, tips, or commissions) or unearned (for example, benefits, unemployment compensation, interest, dividends) of each household member. Inclusionary ownership unit. A dwelling unit: (1)The sales price for which does not exceed the maximum price for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington Metropolitan Statistical Area (MSA), as calculated using a United States Department of Housing and Urban Development (HUD) formula that defines a unit-specific household size based on dwelling unit size (i.e. number of bedrooms); and (2)Which is owned by its inhabitants, whose gross annual household income at time of purchase does not exceed 100% of the median income for the Burlington-South Burlington MSA, adjusted for athe household size; and (3)The sales price for which shall remain perpetually affordable atto households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; Note the unit-specific household size based on the number of bedrooms and the actual household size of the purchasing household do not have to be the same. Inclusionary rental unit. A dwelling unit: (1)The rent for which does not exceed the maximum price calculated for a household with a gross annual income that does not exceed 80% of the median income for the Burlington-South Burlington MSA, LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 3 to which the unit is targeted, as calculated using a HUD formula that defines a unit-specific household size based on dwelling unit size (i.e. number of bedrooms) to which the inclusionary unit is targeted; and (2) Which is rented by inhabitants whose gross annual household income at time of initial occupancy does not exceed 80% of the median income for the Burlington-South Burlington MSA, adjusted for the household size; and (3) The rent for which shall remain perpetually affordable to households with a gross annual household income that does not exceed 80% of the median income for the Burlington-South Burlington MSA; Note the unit-specific household size based on the number of bedrooms and the actual household size of the renting household do not have to be the same. Inclusionary Unit. A dwelling unit that is either an Inclusionary Ownership Unit or an Inclusionary Rental Unit. Mixed-rate housing development. A housing development that has both market rate and below market rateAffordable Housing dwelling units, pursuant to Section 18.02 of these regulations. Article 15 SUBDIVISION and PLANNED UNIT DEVELOPMENT REVIEW … 15.02 Authority and Required Review A. Authority (6) The modification of the maximum residential density for a zoning district shall be permitted only as provided in the applicable district regulations and/or for the provision of affordable housing pursuant to Section 18.01 and 18.02 13.14 of these Regulations. Article 17 ADMINISTRATION and ENFORCEMENT … 17.03 Certificates of Occupancy A. Certificate of Occupancy Required. It shall be unlawful to use, occupy or permit the use or occupancy of any land or structure or part thereof created, erected, changed, converted, or wholly or partly altered or enlarged in its use or structure until a certificate of occupancy has been issued therefor by the Administrative Officer conditioned upon the requirements below. B. Certificate of Occupancy Not Required. Certificates of occupancy shall not be required for single- family or two-family dwellings, except as specifically listed below: (1) Certificates of Occupancy are required for single and two family dwellings within the Floodplain Overlay (Zones A, AE, and A1-30) Subdistrict. (2) Certificates of Occupancy are required for inclusionary single and two-family dwellings that are Inclusionary Units within the applicable locations defined in Section 18.01(B)(1) (Applicability - Zoning Districts and Locations City Center FBC District. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 4 (3)Certificates of Occupancy are required for dwelling units constructed in accordance with Section 18.03(C)(1) of these Regulations. (4)Certificates of Occupancy are required for replacement dwelling units built in accordance with Section 18.03 of these Regulations. ARTICLE 18 AFFORDABLE HOUSING STANDARDS 18.01 Inclusionary Zoning A.Purpose. Inclusionary zoning to provide affordable and moderate income housing in the applicable locations defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article the City Center Form Based Codes District of the City of South Burlington has been adopted pursuant to 24 VSA § 4414(7) for the following purposes: (1)To be a City that is affordable for people of all incomes, lifestyles, and stages of life through the preservation and development of a variety of housing in diverse, accessible neighborhoods, consistent with the South Burlington Comprehensive Plan, as most recently amended; (2)To implement policies that support achievement of housing goals, objectives, and targets included in the South Burlington Comprehensive Plan as most recently amended; (23)To affirmatively address the current and anticipated need for affordable housing units among low- and moderate-income South Burlington households that pay more than 30% of their income on housing, as described in state law (24 VSA § 4303(1)); (34)To mitigate the impacts of market-rate housing development that is unaffordable to low- and moderate-income households on the cost and supply of land and infrastructure available for affordable housing development in the City Center Form Based Codes Districtapplicable locations; (45)To promote the integrated development of mixed-income housing in the applicable locationsCity Center Form Based Codes District, including a range of housing options needed to strengthen, diversify, and contribute to the vitality of City Center and the South Burlington community; (56)To ensure thatpromote the development of affordable housing opportunities that are available in the City Center Form Based Codes District, which is or will belocations accessible to goods and services and served by existing or planned public transit services; (67)To ensure that affordable housing units developed under inclusionary zoning remain perpetually affordable. (78)To provide integrated development incentives that contribute to the economic feasibility of providing affordable housing units, including eliminating maximum residential densities, minimum lot sizes, and minimum parking requirements for residential units within the City Center Form Based Codes District. B.Applicability (1)Zoning Districts and Locations. Inclusionary Zoning shall apply in the following areas (see also Figure 18-1): LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 5 (a) All zoning districts that permit residential development and underlie the Transit Overlay District; (b) The parts of the Center City Form-Based Code district that do not underlie the Transit Overlay District; (c) The land in the vicinity of Hinesburg Road that does not underlie the Transit Overlay District and is bounded by Interstate 89 in the southerly direction and the Transit Overlay District in the northerly direction; and (d) The entire area of a parcel or PUD, whichever is greater, that includes land located in any one of the areas listed in Subsections (B)(1)(a)-(c) of this Article. FIGURE 18-1 INCLUSIONARY ZONING APPLICABLE AREA LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 6 (2)Covered Development. (a)Except as otherwise provided in this bylaw, the provisions of this section shall apply in the locations defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article within the City Center Form Based Codes District to any development, notwithstanding any phasing of the development, that will result in the creation of twelve (12) or more total dwelling units through subdivision, Planned Unit Development, new construction, or the conversion of an existing structure or structures from non-residential to residential use. (b)In addition, the provisions of this section shall apply to any development within the locations defined in Subsection (B)(1) that will result in the creation of twelve (12) or more units of permanent housing as a congregate care facility, with the exceptions in (3)(b) below. These housing units shall be treated as rental dwelling units for purposes of determining the minimum percentage that must be Inclusionary Rental Units. No Residential Unit Offset or Density Bonus may apply for any type of housing unit for which these regulations do not establish a numerical density limitation. When a development includes both dwelling units and housing units permitted as congregate care housing, the number of required inclusionary units shall be determined by the sum of the dwelling units and the housing units contained in the congregate care facility, and distributed proportionally between the two uses. Example: in a development with 40 congregate care housing units and 20 rental residential dwelling units, six (6) of the congregate care housing units are required to be Inclusionary units and three (3) of the residential dwelling units are required to be Inclusionary units. (c)For purposes of this requirement, two or more developments shall be aggregated and considered as one development subject to this section if: (a i) The developments are located on abutting properties; and (b ii) The developments are owned or controlled by the same person; and (iii)Each of the developments was or is subject to Inclusionary Zoning requirements under Land Development Regulations adopted by the City; and (iv)One or more of the developments consists of fewer than twelve (12) dwelling units; and, (ciii)Either: (iI) The developments will undergo subdivision, construction, or conversion of an existing structure or structures from non-residential to residential use within the same five-year period, which period shall be measured from the date a proper and complete application is first submitted, or (IIii) A master plan exists, as approved by the City, which includes two or more of the developments. (d)Previously Approved Master Plans (i)The provisions of this section shall apply in the locations defined in Subsection (B)(1) of this Article to any portion of a Master Plan approved after January 1, 2020, that will result in the creation of twelve (12) or more total dwelling units for which the City has not received a complete application for preliminary plat approval and/or site plan approval. The addition of offset residential units allowed under Section F of this Article alone shall not be considered a deviation of the master plan pursuant to Section 15.07(D) of these regulations that requires amendment of the master plan. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 7 (ii) The provisions of this section shall apply in the locations defined in Subsection (B)(1) of this Article to any portion of an approved master plan proposed for an amendment that includes an increase in the number of dwelling units and/or adding land to the master plan. (23) Exemptions. The following developments are exempt from these requirements: (a) Projects that are developed by an educational institution for the exclusive residential use and occupancy of its students. (b) Institutional, group homes or group quarters housing, including long-term care facilities. (c) The redevelopment of existing dwelling units in a project that produces no additional units. C. Inclusionary Units (1) For covered development, at least five fifteen percent (15%) of the total dwelling units offered for rent or sale, including units offered for sale in fee simple, shared, condominium or cooperative ownership, shall be affordable to households having incomes no greater than 80% of the area median income (AMI) adjusted for household size. An additional five percent (5%) of the total dwelling units shall be affordable to households having incomes no greater than 100% of the AMI adjusted for household size. An additional five percent (5%) of the total dwelling units shall be affordable to households having incomes no greater than 120% of the AMI adjusted for household size. Inclusionary Rental Units and at least ten percent (10%) of the total dwelling units offered for sale, including units offered for sale in fee simple, shared, condominium or cooperative ownership, shall be Inclusionary Ownership Units. Prior to or upon request for the Certificate of Occupancy the applicant shall notify the City whether the units will be Inclusionary Rental Units or Inclusionary Ownership Units so that the City, or its designee, may confirm that the offered rents or sales prices meet these requirements prior to issuance of the Certificate of Occupancy. In addition: (a) Where the application of this formula results in a fractional dwelling unit, that fractional dwelling unit shall be rounded to the nearest whole number (fractions that are greater than n.00 but less than n.50 are rounded down; fractions that are greater than or equal to n.50 but less than n+1.00 are rounded up). (b) When a covered development results in 12 or more lots that are sold prior to development, 10% of the lots must include deed restrictions that satisfy these inclusionary zoning requirements. (b) When the developer proposes to build at least 12 but fewer than 17 housing units, the requirement will be to include two (2) affordable dwelling units one of which shall be affordable to households whose incomes are no greater than 80% of AMI adjusted for household size and the other shall be affordable to households whose income is no greater than 100% of AMI adjusted for household size. (c) When the developer is required to build a number of affordable dwelling units where the number of affordable dwelling units calculated by multiplying the total number of units by 15% is not evenly divisible by three, the first “remaining” dwelling unit must be affordable at the 80% AMI level adjusted for household size and, where applicable, the second “remaining” dwelling unit must be affordable at 100% AMI level adjusted for household size. Example: The developer is required to build 13 affordable dwelling units. Four dwelling units must be affordable at the 80% of AMI adjusted for household size, four dwelling units must be affordable at the 100% of AMI adjusted for household size; four dwelling units must be affordable at the 120% of AMI adjusted for household size; and the “remaining” dwelling unit must be affordable at the 80% AMI adjusted for household size. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 8 (2)Inclusionary units required under this section shall be: (a)Constructed on site, unless off-site construction is approved under Subsection (E)(1)(b) (Off- Site Construction) of this Article, and integrated among market rate units in the development. (b)Integrated into the overall project layout and Ssimilar in architectural style and outward appearance to market rate units in the proposed development. (i)Inclusionary units shall be physically integrated into and complement the overall layout, scale, and massing of the proposed development; this criterion may be achieved in a single building or multiple buildings. (ii)Inclusionary units shall be constructed with the same exterior materials and architectural design details quality as those of the market rate units in the development used in market rate construction. The exterior amenities and landscaping provided for the inclusionary units shall be similar to those provided for the market rate units in the development.Similar exterior amenities and landscaping shall also be provided. However, the exterior dimensions of the inclusionary units may differ from those of the market rate units. (iii)Inclusionary units shall be no less energy efficient than market rate units; inclusionary units may differ from market rate units with regard both to interior amenities and to gross floor area. The average (mean) gross floor area of all inclusionary units, however, shall not be less than 70% of the average (mean) gross floor area of market rate units; (iv)Inclusionary units may differ from market rate units with regard to both interior amenities and amount of Habitable Area. However, the minimum Habitable Area of inclusionary units shall be 450 square feet for studios, 650 square feet for 1-bedroom units, 900 square feet for 2- bedroom units and 1,200 square feet for three (3) or more bedrooms. If the average (mean) area of the Habitable Area of the market rate units is less than the minimum area required for the Habitable Area of inclusionary units, then the Habitable Area of the inclusionary units shall be no less than 90% of the average (mean) Habitable Area of the market rate units. (v)Inclusionary units developed as part of a housing development of predominantly market rate duplexes and/or multi-family dwellings may be of varied types. Inclusionary units developed as part of a predominantly-single-family housing development may be accommodated in buildings containing up to four (4) dwelling units that have the appearance of single family homes through their scale, massing, and architectural style. (iv) Inclusionary Units developed as part of a single- family housing development may be accommodated in duplexes or multi-family dwellings that resemble market rate single-family dwellings, as allowed within the City Center Form Based Codes District. (vi)There shall be no indications from common areas that these units are inclusionary units. (vii)The average (mean) number of bedrooms in the inclusionary units shall be no fewer than the average number of bedrooms in the market rate units. For projects involving 50 or more dwelling units, the applicant shall provide a revised estimate to the Administrative Officer at each interval of 50 dwelling units; the revised estimate shall account for the differences in estimates vs. actuals for the units permitted to date and shall apply to inclusionary units for which the Administrative Officer has not issued a zoning permit. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 9 (viii) Unfinished space within an Inclusionary Ownership Unit that is not initially constructed as bedroom, but which can be converted to such, may count as a bedroom. No more than one (1) bedroom per inclusionary ownership unit may be counted in this manner. (c) Constructed and made available for occupancy concurrently with market rate units. The applicant shall provide a proposed phasing plan demonstrating concurrent development and occupancy of the market rate units and the inclusionary units. The Development Review Board may attach conditions necessary to assure compliance with this section and may, based on documentation from a financial institution denying financing or on physical site constraints, approve a plan allowing non-concurrent construction of the inclusionary units. Buildings containing the last 10% of market rate units shall not receive certificates of occupancy until certificates of occupancy are issued for all buildings containing inclusionary units, including when the inclusionary units are provided off-site as provided for in Subsection (E)(1)(b) (Off-Site Construction) of this Article. D. Affordability Requirements. The basis for determining maximum rental and purchase prices for inclusionary units and applicant rental or purchaser household eligibility for accessing inclusionary units under this section are described below. The data used to determine the incomes, rents and purchase prices is updated annually by U.S. Department of Housing and Urban Development (HUD). The Vermont specific data is updated annually on the Vermont Housing Data website, managed by the Vermont Housing Finance Agency, in a table titled “Maximum rent and purchase price affordability thresholds by income and household size”. Refer to this table in administration of this section. (1) Affordability Determinations. Inclusionary units required under this section shall be affordable and marketed to income-eligible eligible households as follows (a) Maximum rent and purchase prices. (a) For Inclusionary Rental Units, the maximum monthly rent that may be charged is one-twelfth of 30% of the targeted Area Median Income (80%) corresponding to the size of the specific unit (measured in number of bedrooms). When any component of the rental housing costs is excluded, the maximum rent that may be charged is reduced accordingly. (b) For Inclusionary Ownership Units, the maximum monthly housing cost that the owner(s) may be required to pay is one-twelfth of 30% of the targeted Area Median Income (80%) corresponding to the size of the specific unit (measured in number of bedrooms). (a)(c) Maximum rent and purchase price calculation. Maximum Rents and Purchase Prices for Inclusionary Units are calculated based on three components: housing costs, area median income targets, and the number of bedrooms in the inclusionary unit. Housing costs for inclusionary units shall not exceed 30% of annual household income, adjusted for household size. (i) Housing costs used to calculate the affordability of inclusionary units shall include: (I) For Inclusionary Rental Units – rent (inclusive of any condominium or homeowners’ association fees) and utilities (water, electricity and heating costs). (II) (ii) For sale Inclusionary Ownership Units – mortgage principal and interest, annual property taxes, average annual homeowner’s insurance premiums, and average annual mortgage insurance premiums, and 50% of annual condominium or homeowners’ association fees. i. (b) Income eligibility shall be determined based on income guidelines, as adjusted for household size, published annually by the U.S. Department of Housing and Urban Development (HUD) for the Burlington-South Burlington Metropolitan Statistical Area (MSA), or on program- LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 10 based income eligibility requirements established by a partnering housing organization. The AMI shall be determined using the most recent income guidelines available at the time a unit is available for occupancy. (ii)Area Median Incomes (AMI) Targets. HUD estimates the Area Median Income for households residing in the Burlington-South Burlington Metropolitan Statistical Area (MSA) and, in addition, for households of varying sizes residing in the MSA. HUD also calculates AMI ratios, including 80% AMI, for households of varying sizes in the MSA. HUD publishes this AMI-based annual household income information annually. Maximum rents and sales prices shall be determined using the most recent HUD-published income guidelines available at the time the unit is available for occupancy. (iii)Number of bedrooms. Rental and purchase prices of inclusionary units are not linked to the size of the household that rents or purchases the inclusionary unit. Number of bedrooms is used to define a household size linked to the specific unit. The use of “number of bedrooms” for this purpose is explained under the Vermont Housing Data website’s annual maximum rent and purchase price tables entitled “Maximum rent and purchase price affordability thresholds by income and household size”. Table 18-1 HUD Formula for Determining Maximum Rents and Purchase Prices Unit Size Household Size Equivalent1 Efficiency/Studio 1 One-Bedroom Unit 1.5 Two-Bedroom Unit 3 Three-Bedroom Unit 4.5 Four-Bedroom Unit 6 (d)With respect to inclusionary units offered for sale, sale prices shall be calculated based on an available fixed rate, 30-year mortgage, consistent with a blended rate for banks or other lending institutions offering mortgages in South Burlington, or a lower Vermont Housing Finance Agency (VHFA) rate if the developer can guarantee the availability of VHFA mortgages at this rate for all 1 The maximum allowable rent or sales price is based on the designated AMI level (80%, 100%, or 120%) corresponding to the “Household Size Equivalent” in the table above that matches the number of bedrooms in the housing unit. The result is that the maximum rent or sales price for a particular affordable unit is the same for all eligible households seeking to rent or purchase that affordable housing unit. For example, the maximum rent or sales price for a one-bedroom inclusionary unit is determined using the average of the applicable AMI level for one- and two-person households. Note that the applicant household’s income is not used to determine the maximum rent or sales price of a particular inclusionary housing unit. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 11 required inclusionary units. The calculated price shall assume a down payment of no more than 5% of the purchase price. (2) Renter and Home-buyer Income Eligibility. Income eligibility for an applicant household is determined based on three components: Household Size, Household Income and Annual Median Income (AMI) targets for Inclusionary Units. The AMI amounts for applicants seeking to rent or purchase an Inclusionary Unit shall be determined using the most recent HUD-published income guidelines available at the time the unit is available for occupancy. (a) For renters, households, regardless of household size, are eligible for inclusionary rental units so long as their combined household income does not exceed 80% AMI. (a)(b) For home-buyers, households, regardless of household size, are eligible for inclusionary ownership units so long as their combined household income does not exceed 100% AMI. (3) Flexibility between maximum rent and purchase prices and eligible renter or purchaser households. (a) Eligible renter or purchaser households may rent or purchase an Inclusionary Unit with a rent or purchase price linked to a household size (derived from number of bedrooms) that is not the same as the Eeligible Household’s size. Examples: ● a two-person household may purchase a three-bedroom house or condominium. ● a three-person household may rent a one-bedroom apartment. (b) Eligible renter or purchaser households may rent or purchase an Inclusionary Unit with an AMI target that is higher than the eligible Household’s AMI percentage. Examples: ● a three-person household whose income is 70% of AMI (for its household size) may rent an apartment for which the rent is targeted to 80% of AMI. ● a two-person household whose income is 90% of AMI (for its household size) may purchase a condominium or house for which the purchase price is targeted to 80% of AMI. (c) Eligible renter or purchaser households may rent or purchase an Inclusionary Unit whosefor which the housing costs exceed 30% of the Eeligible Household’s income. (4) Alternative Eligibility Criteria. When an affordable housing organization is a partner in a covered development, eligibility may be determined in accordance with program-based eligibility requirements established by the partner housing organization. (25) Continued Affordability. An inclusionary unit shall remain affordable in perpetuity commencing from the date of initial occupancy, through a deed restriction, restrictive covenant, or through purchase by or a contractual agreement with a local, state or federal housing authority or nonprofit housing agency, to be reviewed by the City Attorney and approved by the City Manager, or their designees, prior to recording in the City of South Burlington Land Records. Any deed restriction, covenant or other instrument or agreement ensuring the continued affordability of inclusionary units shall include: LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 12 (a)Resale Restrictions. Provisions to ensure the affordability of units offered for sale shall include a formula for limiting the resale price to whatever is the higher of the purchase price the seller paid plus 2% for each year of ownership (non-compounding), or what is affordable to a household at 80% AMI at the time of resale. equity appreciation to an amount not to exceed 25% of the increase in the unit’s value, as determined by the difference between fair market appraisals of the unit at the time of purchase and the time of resale, with adjustments for improvements made by the seller and the necessary costs of sale, as may be approved by the City Manager Eligible households are those having incomes no greater than 100% AMI at the time of purchase. In addition, the City shall have the option to purchase or transfer its option to purchase Inclusionary Ownership Units at each future time of resale. In addition, any covenant shall have language to ensure the continuing affordability of Inclusionary Rental Units if the unit or property offered for sale instead will be offered for rental. (i) The seller or his/her representative shall notify the City Manager or his/her designee of the prospective sale of an Inclusionary Ownership Unit; (ii) The City Manager or his/her designee, in consultation with the members of the Housing Trust Fund Committee, shall then have an exclusive option for thirty (30) days to purchase the Inclusionary Ownership Unit from the seller at a price consistent with the requirements of this subsection unless the City Manager or his/her designee waivesd the option by declaring in writing an intent not to exercise the option or transfers the option as described in Subsection (D)(5)(a)(iv) of this Article; (iii)If the City Manager or his/her designee, in consultation with the members of the Housing Trust Fund Committee, fails to exercise such option by failing to negotiate and sign a purchase and sale agreement for purchase of the Inclusionary Ownership Unit, or declaring an intent not to exercise such option, the seller shall offer the Inclusionary Ownership Unit for purchase to income-eligible households in accordance with the requirements of subsection 18.01(D)(5)(a) (Affordability Requirements). (iv) On or before a purchase and sale agreement is executed between the seller and the City Manager or his/her designee, s/he may assign the City’s option specified in this subsection to purchase the Inclusionary Ownership Unit to a 501(c)(3) organization whose primary purpose is the supply of affordable housing in perpetuity. Upon the decision to exercise this transfer option, the City Manager or his/her designee shall notify the seller of such assignment. The organization to which the City has assigned the option shall deal directly with the seller and shall have all of the authority of the City Manager, as provided under this subsection. (b)Rent IncreasesChanges. Provisions to ensure the affordability of Inclusionary rRental uUnits shall require that limit annual rent changes not exceedincreases to the percentage increase change in the median household income within the Burlington-South Burlington MSA, when the change is an increase; and that annual rent changes match the percentage change in the median household income within the Burlington-South Burlington MSA, when the change is a decrease. An exception to the limit on increases or required decreases is permitted to the extent that further increases or delayed decreases are made necessary by documented hardship or other unusual conditions. , and shall provide that no rent increase Such exceptions may not take effect until it has received the written approval of approved in writing by the City Manager or his/her designee; (c)Sublet Restrictions. Provisions for inclusionary rRental uUnits shall prohibit the subletting of units at rental rates and/or to households that exceed affordability limits established pursuant to this section. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 13 (36) Reporting Requirements. Annually, the owner of a project that includes inclusionary rental units shall prepare and submit a report to the City Manager that lists the gross rents charged for inclusionary units and the household incomes at move-in, based on documentation provided by tenant for owner’s completion of form provided by the City, to certify that Inclusionary Rental Unit rent maximums and household income maximums haveincomes of unit tenants, and certifies that unit affordability has been maintained as required. E. Developer Options (1) Options (a) and (b) below are available to developers, upon request, as necessary to address documented financial hardships based on documentation from a financial institution denying financing or physical site constraints that limit or preclude the incorporation of inclusionary units within a covered development. Options (c) and (d) are available to the developer at his or her discretion. A payment or contribution in lieu of constructing required inclusionary units shall be prohibited. (a) Dedication. The South Burlington City Council, in consultation with the entity designated by the City Council (for example, a permanent South Burlington Affordable Housing Committee or South Burlington Affordable Housing Board), may accept as an alternative to the development of inclusionary units, a dedication by the developer of equal or greater value, including land and expected inclusionary unit value, that furthers the purposes of this section. An example might be the donation of developable land in the City Center Form Based Codes District that provides accessibility to transit, employment opportunities, and services. (b) Off-Site Construction. The developer of a covered development may comply with the requirements of this section by constructing, within two years of receiving a permitthe date of the decision approving for the covered development, the required number of inclusionary units on another site parcel within the same contiguous underlying zoning district in which the covered development is located City Center Form Based Codes District, or contracting with another entity to construct the required number of units within the same contiguous underlying zoning district in which the covered development is located. This condition shall not be considered satisfied until certificates of occupancy have been issued for all off-site inclusionary units in the City Center Form Based Codes District. Off-site means outside the boundaries of the lot or PUD on which the covered development is located. (c) A developer who constructs inclusionary units having three bedrooms shall receive credit for three inclusionary units for every two three-bedroom inclusionary units constructed. These credit inclusionary units earned under these provisions are ineligible for offset or bonus units. (d) A developer who constructs inclusionary units having four bedrooms shall receive credit for four inclusionary units for every two four-bedroom inclusionary units constructed. These credit inclusionary units earned under these provisions are ineligible for offset or bonus units. F. Offset for Fulfillment of Inclusionary Unit Requirements (1) Residential Unit Offset. To offset an applicant’s fulfillment of this Section’s inclusionary unit requirement is an allotment of one additional dwelling unit for each required Inclusionary Rental Unit that is constructed; or an allotment of two additional dwelling units for each required Inclusionary Ownership Unit that is constructed. This offset shall not be provided for any required unit for which the developer receives approval for the Dedication as described in 18.01 (E).(1)(a) herein. (a) Offset residential units are not subject to the inclusionary affordability requirements. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 14 (b)The offset described above shall be approved as long as the total housing units in the specific covered development do not result in non-compliance with Section 15.02(A)(4). Example (1): In a 24-unit owner housing development on a six-acre plot in a R4 district, the developer is required to build two (2) inclusionary units The developer shall receive an offset of four (4) market rate dwelling units, and the project now includes a total of 28 dwelling units. Example (2): In a 36-unit rental housing development on a three-acre plot in a R12 district, the developer is required to build five (5) inclusionary units. The developer shall receive an offset of five (5) market rate dwelling units, and the project now includes a total of 41 dwelling units. (c)Where a zoning district establishes a maximum building coverage of less than twenty percent (20%) and/or a maximum overall lot coverage of less than thirty percent (30%), the applicable maximum coverage in that district shall be increased to accommodate the offset units. For Inclusionary Ownership Units, this increase shall be twenty percent (20%) and for Inclusionary Rental Units, this increase shall be fifteen percent (15%). Example (1): In a zoning district with a maximum building coverage of fifteen percent (15%), the maximum building coverage shall be increased to eighteen percent (18%) to accommodate offset Inclusionary Ownership Units. Example (2): In a zoning district with a maximum building coverage of fifteen percent (15%), the maximum building coverage shall be increased to seventeen and 25/100 percent (17.25%) to accommodate Inclusionary Rental Units. G. Density Bonuses for Exceeding Inclusionary Housing Requirements (1)Applicability. This subsection applies in zoning districts or portions thereof as defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article, in which residential development is allowed. However, density is not a dimensional requirement in the City Center Form Based Code districts, therefore this section is not relevant in those districts. (2)Density Bonuses. When an applicant voluntarily includes, in the base zoning density unit- maximum for the development, more than the number of inclusionary units required under Section 18.01(C)(1), then upon the applicant’s request, the development shall receive, in addition to the offset units, a density bonus. The density bonus shall be one dwelling unit for each voluntary Inclusionary Rental Unit and two dwelling units for each voluntary Inclusionary Ownership Unit, up to a maximum density of 50% more than the base maximum density permitted in the zoning district. In zoning districts where additional density is permitted via Planned Unit Development, the base density shall be defined as the maximum density for the district without use of PUDs. Density bonus dwelling units are not subject to the inclusionary affordability requirements. Example (1): In a 24-unit owner housing development on a six-acre plot in a R4 district, the developer is required to build two (2) inclusionary units. The developer shall receive an offset of four (4) market rate dwelling units, and the project now includes a total of 28 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 8 additional units in this example since the offset units need to be accounted for), the developer includes an additional four (4) inclusionary units in the base zoning density unit-maximum (24) for which the developer receives 12 bonus density units. In sum, the total project includes 36 units, 6 of which are inclusionary (17% of the units) and 30 of which are market rate (83% of the units). LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 15 Example (2): In a 36-unit rental housing development on a three-acre plot in a R12 district, the developer is required to build five (5) inclusionary units. The developer shall receive an offset of five (5)market rate dwelling units, and the project now includes a total of 41 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 13 additional units in this example since the offset units need to be accounted for), the developer includes an additional thirteen (13) inclusionary units in the base zoning density unit-maximum (36) for which the developer receives 13 bonus density units. In sum, the total project includes 54 units, 18 of which are inclusionary (33% of the units) and 36 of which are market rate (67% of the units). Example (3): In a 40-unit owner housing development on a ten-acre plot in a R4 district, the developer is required to build four (4) inclusionary units. The developer shall receive an offset of eight (8) market rate dwelling units, and the project now includes a total of 48 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 12 additional units in this example since the offset units need to be accounted for), the developer includes an additional six (6) inclusionary units in the base zoning density unit-maximum (40) for which the developer receives 12 bonus density units. In sum, the total project includes 60 units, 10 of which are inclusionary (17% of the units) and 50 of which are market rate (83% of the units). Example (4): In a 40-unit rental housing development on a 10-acre plot in a R4 district, the developer is required to build six (6) inclusionary units. The developer shall receive an offset of six (6) market rate dwelling units, and the project now includes a total of 46 dwelling units. In order to receive approval for the maximum 50% density increase (which equates to a maximum of 14 additional units in this example since the offset units need to be accounted for), the developer includes an additional fourteen (14) inclusionary units in the base zoning density unit-maximum (40) for which the developer receives 14 bonus density units. In sum, the total project includes 60 units, 20 of which are inclusionary (33% of the units) and 40 of which are market rate (67% of the units). H. Affordable Housing Density Bonuses for Developments with Fewer than 12 Dwelling Units (1)Applicability. This subsection applies in zoning districts or portions thereof as defined in Subsection (B)(1) (Applicability - Zoning Districts and Locations) of this Article, in which residential development is allowed. However, since density is not a dimensional requirement in the City Center Form Based Code Districts, this section is not relevant in that District. (2)Density Bonus. For applications that include at least three (3) but fewer than twelve (12) dwelling units (calculated using the base zoning density unit-maximum for the development), where the developer has opted to construct one or more inclusionary units any approval shall, upon request of the applicant, include a density bonus over the base zoning density. The density bonus shall be one dwelling unit for each inclusionary rental unit and two dwelling units for each inclusionary ownership unit included voluntarily, up to a maximum density of 50% more than the base density. The density bonus units are not subject to the inclusionary affordability requirements. * FI. Administration and Compliance (1)Application Requirements. In addition to other submission requirements applicable to proposed projects specified within this bylaw, applications under this section shall include the following information: LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 16 (a)A site or subdivision plan that identifies the number, locations, types, and sizes of inclusionary units in relation to market rate units; (b)Documentation supporting the allocation of inclusionary and market rate units, including inclusionary unit set aside calculations; (c)A description of each unit’s type, floor area, number of bedrooms, estimated housing costs, and other data necessary to determine unit affordability; (d)A list of proposed options, if any, to be incorporated in the plan, as provided for under Subsection (E) (Developer Options) of this Article; (e)Documentation regarding household income eligibility; (f)Information regarding the long-term management of inclusionary units, including the responsible party or parties, as required to ensure continued affordability; (g)Draft legal documents required under this section to ensure continued affordability; (h)Construction timeline for both inclusionary and market rate units; and (i)Other information as requested by the Administrative Officer to determine project compliance with inclusionary zoning requirements. (2)Compliance Officer. The Administrative Officer (AO) is responsible for certifying, in writing, whether a development application is in compliance with the inclusionary zoning requirements specified in Subsection (FJ)(1) (Application Requirements) of this Article. In cases in which the AO determines the application is not in compliance, he or she shall specify the areas of non-compliance. (3)Ongoing Compliance. The City of South Burlington Housing Authority, if any; or City Manager or his/her designee or another municipal entity; or a bona fide qualified non-profit organization, as determined by the South Burlington City Council, shall be responsible for the on-going administration of the inclusionary units as well as for the promulgation of such rules, regulations, and/or procedures as may be necessary to implement this program. The Housing Authority, or City Manager or his/her designee, or other municipal entity, or non-profit organization shall define and implement eligibility priorities, continuing eligibility standards and enforcement, and rental and sales procedures. (3)Program Evaluation. In order to monitor and track the success of inclusionary zoning in meeting the purposes of this section and the City’s affordable housing goals and targets, the City Manager or his/her designee shall: (a)Collect and maintain income eligibility guidelines, mortgage interest rate information, and other information necessary to meet the requirements of this section; (b)Monitor and maintain records regarding the status of inclusionary units developed under this Section 18.01; and (c)Prepare an annual written report for distribution to the South Burlington City Council and Planning Commission and posting on the City’s website, to be considered in a public meeting, that summarizes the status of covered projects and inclusionary units approved to date, and sets forth program findings, conclusions, and recommendations for any changes that will increase the effectiveness of inclusionary zoning. LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 17 18.02 Affordable Housing Density Bonus A. Purpose. One of the adopted Comprehensive Plan goals is the availability of quality housing and quality affordable housing to attract and retain a qualified work force. The following provisions are established to enable the City of South Burlington to ensure a supply of standard housing available at below-market rate purchase prices or rents. In this way, a choice of housing opportunities for a variety of income groups within the City can be created in accordance with the Comprehensive Plan and these Regulations. B. Applicability. This section shall apply in any Zoning District in which residential development is permitted, with the exception of the applicable locations defined in Section 18.01 (B)(1) (Applicability - Zoning Districts and Locations) of this ArticleCity Center Form Based Codes District. C. Density Increase. On a case by case basis and as part of the Planned Unit Development application, the Development Review Board may grant an increase in residential density over the base zoning density, in order to create below market rate housing. The density increases shall be approved on the following criteria and standards: (1) Affordable Housing Development. The Development Review Board may grant a density increase of no more than fifty percent (50%) in the total number of allowed dwelling units for an Affordable Housing Development. The total of below market rateAffordable Housing units shall be at least half of the total proposed dwelling units. Where the total proposed dwelling units is an uneven number, the total of below market rate units shall be calculated as at least the total proposed dwelling units, less one (1), divided by two. Such application shall be subject to Article 14, Site Plan and Conditional Use Review, and Article 15, Subdivision and Planned Unit Development Review. (2) Mixed Rate Housing Development. The Development Review Board may grant a density increase of no more than twenty-five percent (25%) in the total number of allowed dwelling units for a Mixed Rate Housing Development. For each additional market-rate dwelling unit produced as a result of the density increase, one (1) qualifying comparable below market rateAffordable Housing unit must be provided. Such application shall be subject to Article 14, Site Plan and Conditional Use Review, and Article 15, Subdivision and Planned Unit Development Review. Table 13-9 Example of Affordable Housing Bonus Calculation Affordable Project: Mixed-Rate Project: 50% of Total Units Affordable 25% of Bonus Units Affordable Acres 8.35 8.35 Base Density 12 12 Base Units 100.2* 100.2* Bonus Units 50 25 Total Units 150 125 Net Density 17.98 14.99 Affordable Units 74 13 Market Rate Units 74 112 *Partial units always round DOWN to the lower whole number of units LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 18 D.Criteria for Awarding Density Increase. In addition to the standards found in Article 14, Site Plan and Conditional Use Review, , and Article 15, Subdivision and Planned Unit Development Review, the following standards shall guide the Development Review Board: (1)The density upon which a bonus may be based shall be the total acreage of the property in question multiplied by the maximum residential density per acre for the applicable zoning district or districts. (2)Within the Residential 1 and Residential 2 zoning districts, the provisions of this Section 13.14 shall apply only to properties of five (5) acres or more, and the maximum allowable residential density with or without such a density increase shall be four (4) dwelling units per acre. (3)Development Standards. (a)Distribution. The affordable housing units shall be physically integrated into the design of the development in a manner satisfactory to the Development Review Board and shall be distributed among the housing types in the proposed housing development in the same proportion as all other units in the development, unless a different proportion is approved by the Development Review Board as being better related to the housing needs, current or projected, of the City of South Burlington. (b)Minimum Floor Area. Minimum gross floor Habitable Area area per affordable dwelling unit shall not be lessbe no smaller than 70% of the amount of the Habitable Areas of comparable market- rate units in the housing development. (c)Plan for Continued Affordability. The standards set forth in Section 18.01(D)(5) and (6) shall apply. (i)Plan for Continued Affordability. The standards for Section 18.01(D)(2) shall apply. (4)Administration. The City of South Burlington Housing Authority, if any, the City Manager and/or his/her designees, or a bona fide qualified non-profit organization shall be responsible for the on-going administration of the affordable housing units as well as for the promulgation of such rules and regulations as may be necessary to implement this program. The Housing Authority or non-profit organization will determine and implement eligibility priorities, continuing eligibility standards and enforcement, and rental and sales procedures. E.Housing Types. The dwelling units may at the discretion of the Development Review Board be of varied types including one-family, two-family, or multi-family construction, and studio, one-bedroom, two-bedroom, three-bedroom and four-bedroom apartment construction. 18.03 Housing Preservation A.Purpose. The intent of this Section is to achieve one or more of these goals: (1) To promote the health, safety and general welfare of the community by preserving existing housing stock in residential neighborhoods, particularly the supply of affordable and moderately-priced homes through the use of housing retention requirements as referenced in South Burlington’s 2016 Comprehensive Plan; (2)To reduce and mitigate the demolition and conversion to nonresidential use or nonuse of residential structures, and to maintain housing that meets the needs of all economic groups within the City particularly for those of low and moderate income; LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 19 (3)To meet the specific mandates of 24 V.S.A. Section 4302(11) related to housing opportunities for safe and affordable housing for all Vermonters and to meet the needs of the diverse social and income groups in each Vermont community; (4)To support the retention of housing units in the City; (5)To promote the health safety and welfare of the community by preserving the residential character of neighborhoods; and, (6)To offset the loss of housing by requiring replacement of housing units with new construction, conversion of nonresidential to residential use or a contribution to the City of South Burlington Housing Trust Fund. B. Applicability. Except as otherwise provided in sub-section C (Exemptions), this Section 18.03 of these Regulations is applicable to the loss, demolition or conversion to a nonresidential use or nonuse (for example a vacant lot) of any dwelling unit in the City. This includes without limitation any of the following: (1)any dwelling unit that is demolished, removed, or declared unfit for habitation pursuant to any order, decision or other action of the City or State that is caused by unreasonable neglect or deferred maintenance of an existing or prior owner(s); (2)any dwelling unit that is demolished or removed pursuant to any municipal, State or Federal program, including any air traffic or airport noise mitigation and compatibility program; and/or, (3)the loss, demolition or conversion to nonresidential use or non-use of any other form of permanent housing, including but not limited to housing units contained within a housing facility that is permitted as a congregate care facility, except group homes, residential care facilities, or skilled nursing facilities as defined in these Regulations. C. Exemptions. This Section shall not be applicable to: (1)The redevelopment of a dwelling unit or any other form of permanent housing, including but not limited to housing units contained within a housing facility that is permitted as a congregate care facility, within a two (2) year period. Any applicant for a demolition permit seeking to avail themselves of this exemption shall be required to obtain a Certificate of Occupancy within two (2) years of the date of issuance of the demolition permit thereby demonstrating redevelopment of the dwelling unit and restoration of the residential use on the same parcel. (2) Any dwelling unit ordered demolished or declared unfit for habitation because of damage caused by civil commotion, malicious mischief, vandalism, natural disaster, fire, flood or other causes beyond the owner’s control. (3) Dwelling units existing in the following zoning districts: City Center Form Based Code, Industrial – Open Space, Mixed Industrial & Commercial, Swift Street, Institutional-Agricultural, Parks & Recreation, Municipal, Commercial 1-AIR, Airport, and Airport-Industrial. (4) The conversion of a duplex to a single-family home. (5) As of the initial effective date of this Section, any dwelling units: (a)For which the Burlington International Airport / City of Burlington has obtained Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grant funding approval for the acquisition, demolition or removal pursuant to the FAA’s Part 150 Noise Compatibility Program. This LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 20 includes the dwelling units identified in FAA AIP grant numbers, AIP-94, AIP-105, and AIP-109 whether or not these dwelling units have been purchased or removed as of January 1, 2018. (b)Indicated on the 2009 Burlington International Airport Part 150 Noise Inventory and Re-Use Plan “Proposed Property Acquisition Program” map, Figure 4: Detailed Acquisition Plan, dated April 23, 2009. See Appendix H for a complete listing of properties by address. (6)The removal of accessory dwelling units. D. Approval. Notwithstanding any other provision of these Regulations and unless otherwise exempt under sub-section C of this Section, no dwelling unit shall be removed, demolished, or converted to a nonresidential use or nonuse, without receipt of a zoning permit in accordance with this Section. In addition to any other submission requirements in these Regulations, the applicant shall submit as part of a zoning permit application under this Section: (1)A statement certifying the number of dwelling units to be demolished or converted to nonresidential use and the number of bedrooms existing within each of these units; (2)A demonstration of compliance with tenant or occupant notice and relocation provisions of applicable state and federal law; and (3)A demonstration of compliance with sub-section E, F and G (if applicable) of this Section. E. Housing replacement requirement. In addition to any other requirements for approval under these Regulations, approval of the zoning permit referred to in Sub-section D above requires the replacement of each dwelling unit that is to be removed, demolished, or converted to nonresidential use or nonuse with a replacement dwelling unit. Any dwelling unit approved under Section 18.01 or 18.02 shall not qualify as a replacement dwelling unit. This replacement requirement may be satisfied in one of the following ways: (1)Construction of a new dwelling unit in accordance with sub-section F of this Section; (2)The conversion of a non-residential building to residential use in accordance with sub-section F of this Section; or, (3)Contribution to the Housing Trust Fund. Payment to the City of South Burlington’s Housing Trust Fund for each dwelling unit that is removed, demolished, or converted to nonresidential uses or nonuse in an amount equal to twenty-five percent (25%) of the higher of (1) the most recent assed valuation the premises as modified by the CLA (Common Level of Appraisal) or (2) the most recent sales price of the premises. F.Replacement Dwelling Unit Requirement. In addition to the foregoing, all replacement dwelling units built pursuant to this Section must meet the following requirements: (1)Each replacement dwelling unit shall have at least the same number of bedrooms as the dwelling unit being replaced; (2)Each replacement dwelling unit must be located within the City of South Burlington; (3)Each replacement dwelling unit must receive a Certificate of Occupancy within eighteen (18) months of the date on which the zoning permit referenced in Sub-section D above is approved; (4)Each rental replacement dwelling unit(s) must be maintained either as a Group Home or as a leased “Affordable Housing” unit, as that term is defined in Article 2 of these Regulations to prospective LDR-19-13A & LDR-19-13B Inclusionary Zoning & Affordable Housing DRAFT Approved by Planning Commission 2020-01-28 Land Development Regulations 21 occupants who are income eligible at the time they first lease the unit, for a period of not less than twenty (20) years from the date of first occupancy. (5) Each non-rental replacement dwelling unit(s) must be offered for sale either: (a) At or below the fair market value of the dwelling unit that was removed, demolished, or converted to nonresidential use or nonuse, as determined either (i) by an appraisal provided by the applicant, or (ii) by the City’s latest assessed value of the premises including the dwelling unit that was removed, demolished, or converted to nonresidential use or to nonuse; or (b) As an “Affordable Housing” unit, as that term is defined in Article 2 of these Regulations, to prospective purchaser/occupants who are income eligible at the time they purchase the unit. Any such unit shall be subject to a covenant restricting the sale of the dwelling unit for a twenty (20) year period to an owner/occupant who qualifies by income. (6) Income eligibility for replacement units described in this subsection shall be determined based on income guidelines, as adjusted for household size, published annually by the U.S. Department of Housing and Urban Development (HUD) for the Burlington-South Burlington Metropolitan Statistical Area (MSA), or on program-based income eligibility requirements established by a partnering housing organization. The income eligibility shall be determined using the most recent income guidelines available at the time a unit is available for occupancy. G. Performance Guaranty/Letter of Credit. When an applicant proposes to construct a new replacement dwelling unit or convert a non-residential building to a replacement residential unit, the applicant must post a performance guaranty in the form of a letter of credit, or other security acceptable to the City Attorney, in the amount equivalent to the amount the applicant would have been required to contribute to the City of South Burlington’s Housing Trust Fund if the applicant had chosen that option pursuant to Sub-section E(3), above. Such a performance guaranty shall be valid for no more than two (2) years, after which the full amount due shall be provided to the City of South Burlington’s Housing Trust Fund if a replacement dwelling unit satisfying the conditions of this Section has not been granted a Certificate of Occupancy as a dwelling unit. H. Administration. The City of South Burlington Housing Authority, if any, or a bona fide qualified non- profit organization approved by the City of South Burlington following demonstration of its qualifications shall be responsible for the on-going administration of this section as well as for the promulgation of such rules and regulations as may be necessary to implement this section. The Housing Authority or non-profit organization will determine and implement eligibility priorities, continuing eligibility standards and enforcement, and rental and sales procedures. I. Violations. In the event of a violation of this Section, an enforcement action in accordance with Article 17 shall commence and the requirements of this Section shall apply in addition to any other remedies available to the City by law. 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com South Burlington Planning Commission Proposed Land Development Regulations Amendment & Adoption Report Amendments approved by the Planning Commission January 28, 2020 In accordance with 24 V.S.A. §4441, the South Burlington Planning Commission has prepared the following report regarding the proposed amendments and adoption of the City’s Land Development Regulations. Outline of the Proposed Overall Amendments The South Burlington Planning Commission held a public hearing on Tuesday, December 10, 2019 to consider the following amendments to the South Burlington Land Development Regulations: A.LDR-19-13A: Modify existing Inclusionary Zoning requirements and extend applicability to include all lands that underline the Transit Overlay District, all lands within the City Center Form Based Code District, and all lands in the vicinity of Hinesburg Road and Old Farm Road that are north of I-89 and are outside the Transit Overlay District. B.LDR-19-13B: Modify Affordable Housing Density Bonus standards as follows: (1) reduce applicable area to only those areas not subject to proposed Inclusionary Zoning standards [LDR- 19-13A], and; (2) adjust requirements for income eligibility and continued affordability for all remaining parts of the City. Subsequent to the hearing, the Planning Commission made modifications to the amendments. Brief Description and Findings Concerning the Proposed Amendments The proposed amendments have been considered by the Planning Commission for their consistency with the text, goals, and objectives of the City of South Burlington’s Comprehensive Plan, adopted February 1, 2016. For each of the amendments, the Commission has addressed the following as enumerated under 24 VSA 4441(c): “…The report shall provide a brief explanation of the proposed bylaw, amendment, or repeal and shall include a statement of purpose as required for notice under section 4444 of this title, and shall include findings regarding how the proposal: (1)Conforms with or furthers the goals and policies contained in the municipal plan, including the effect of the proposal on the availability of safe and affordable housing. 2 (2)Is compatible with the proposed future land uses and densities of the municipal plan. (3)Carries out, as applicable, any specific proposals for any planned community facilities.” Brief explanation of the proposed bylaw. The proposed bylaw would extend and modify the Inclusionary Zoning requirements in the City Center Form Based Code District to encompass all lands within the Transit Overlay District and portions of land north of I-89 in the vicinity of Hinesburg Road & Old Farm Road, and would modify income eligibility & continued affordability standards in the Affordable Housing Density Bonus standards elsewhere in the City. Where Inclusionary Zoning requirements are extended, they would replace the Affordable Housing Density Bonus standards. Specifically, Inclusionary Standards include the following structure: •Required for projects with 12 or more new dwelling units. •10% of homeownership units, 15% of rental units, and 10% of vacant lots must be affordable in perpetuity at prices/rents affordable to households earning 80% of Area Median Income (AMI). For ownership units, actual income eligibility would be up to 100% of AMI. •Developer Offsets and Incentives. One additional market rate unit for every one required inclusionary unit (rentals) and two additional market rate units for every one required inclusionary unit (ownership) would be granted above the maximum zoning for the district. In zoning districts with very low lot and building coverage limitations, these limitations are proportionally increased to accommodate offset units. •Developer Bonus: A develop providing a greater proportion of dwelling units at or below 80% of AMI and meeting inclusionary requirements receiving additional market rate units at the same ratios as for offset units, up to maximum total increase of 50% density increase. Note: this figure is unchanged from the current maximum allowable bonus. •Alternatives available to developer: land dedication in lieu of inclusionary unit construction and off-site construction of inclusionary units. •Units must remain affordable at the rates described above in perpetuity upon resale or new tenants, adjusted for inflation. Outside of the Inclusionary Zoning applicable areas, the proposed amendment would allow households earning up to 100% of AMI to purchase a dwelling unit; units would be required to remain affordable to households earning 80% of AMI, and continued affordability standards would mirror those for Inclusionary Zoning. (1)Conforms with or furthers the goals and policies contained in the municipal plan, including the effect of the proposal on the availability of safe and affordable housing. The proposed amendments are intended to support the economic integration of housing in a manner that both supports affordability objectives and is attainable by the development community. The Comprehensive Plan includes the following objectives and strategies: Vision & Goals: Be affordable, with housing for people of all incomes, lifestyles, and stages of life; 3 Objective 2. Offer a full spectrum of housing choices that includes options affordable to households of varying income levels and sizes by striving to meet the housing targets set forth in this Plan. Strategy 4. Implement a variety of tools and programs to foster innovative approaches to preserving and increasing the City’s supply of affordable and moderate income housing. Potential tools should be explored and could include form-based codes that would allow a variety of residential and mixed use building types, transferable development rights, neighborhood preservation overlay districts, household definition regulations, inclusionary zoning, bonuses and incentives, waivers and expedited review processes, and/or a housing retention ordinance. Strategy 10. Develop strategies that can lead to the availability or development of more housing that is affordable to middle income, working residents and families in the City… Strategy 13. Target for construction, by 2025, of 1,080 new affordable housing units - 840 housing units affordable to households earning up to 80% of the AMI and 240 housing units affordable to households earning between 80% and 120% of the AMI. (2)Is compatible with the proposed future land uses and densities of the municipal plan. The proposed amendments would replace existing allowances of density bonuses of either 25% or 50% with an inclusionary requirement. The requirement is accompanied by an offset allowance of 15%-20% in density increase (rental & ownership) as an incentive to applicants as required under 24 VSA Chapter 117. In addition, applicants electing to provide a greater proportion of dwelling units at the Inclusionary Zoning eligibility thresholds would receive additional market rate units for each. The maximum total density increase in that instance would be 50%, commensurate with the current maximum. The Comprehensive Plan includes the following relevant objective: Objective 39. The majority of all new development will occur within the Shelburne Road, Williston Road, and Kennedy Drive Corridors, and other areas within the Transit service area. (3)Carries out, as applicable, any specific proposals for any planned community facilities. The amendments do not impact specific proposals for any planned community facilities. 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com Acceptance of Completed Study 2020 Interim Zoning Open Space Committee Final Report WHEREAS, on November 13, 2018, the City Council adopted Interim Bylaws, which indicated a need to accomplish several tasks while the Interim Bylaws were in effect, including: “Undertake an analysis of undeveloped open spaces, forest blocks and working landscapes and update the prioritization of these lands for conservation, permanent open space, and/or recreation;” and WHEREAS, one of the purposes of the Interim Bylaws was to allow for a period of study and analysis so that the City may determine which South Burlington parcels are most critical to the City’s environmental and economic goals, and thereafter “can assess whether, and possibly how, the current Land Development Regulations or tools, regulatory or nonregulatory, require amendment and act accordingly”; and WHEREAS, the City Council formed an Interim Zoning Open Space Committee (the “Committee”) and established its membership to undertake the identified tasks and noted that the April 2014 Open Space Report provides a basis for the work to be accomplished by the Committee; and WHEREAS, the Committee met in public meetings throughout 2019, undertook analyses, held community meetings, and prepared a draft final Report; and WHEREAS, the Committee presented its findings to the Planning Commission in December 2019 and its findings and draft Report to the City Council in January 2020, and made certain technical corrections thereto before submitting the “Final Report of the Interim Zoning Committee to the South Burlington City Council” dated March 6, 2020 (the “Report”) to the City Council. NOW THEREFORE, 1.The City Council hereby acknowledges receipt of and accepts the Report. 2.In accepting the Report, the Council thanks the volunteer members of the Committee for their efforts and hard work in developing the Report and its recommendations. 3.In accepting the Report, the Council acknowledges the completion of the Report and the conclusion of the work of the Committee. 4.In accepting the Report, the Council states and affirms that the Report is intended for planning purposes only. The Report’s results and recommendations may be used and applied in the development of future City policy via regulatory or non-regulatory means. The Report itself, however, carries no policy weight without further action by the Planning Commission and/or the Council and should not be considered to be a regulatory document or supporting documentation thereto. Approved this _______ day of July, 2020. _______________________ __________________________ _____________________ Helen Riehle, Chair Tim Barritt, Clerk David Kaufman _______________________ __________________________ Meaghan Emery, Vice Chair Thomas Chittenden TO: Kevin Dorn, City Manager FROM: Ilona Blanchard, Community Development Director SUBJECT: Council review of South Burlington Public Library and City Hall sign concept (180 Market Street). DATE: July 2, 2020 BACKGROUND: The 180 Market Street project is currently in the construction phase. The City Council recently selected a name for the building: South Burlington Public Library and City Hall. The design team is working on completing the design work in order that the granite panels over the entrance can be prepared to receive the sign. The designers have been working diligently on the preparation of the design with the following objectives in mind: •Make the sign readable and clear to people passing by in front of the building, in the roadway and on the shared use path across the street. •Ensure that the sign endures for the life of the building (100 years but at least 50). •Reinforce and enhance the building presence. •Create a sign worthy of the material it is embedded in (Vermont granite). The architecture team looked at a variety of options: uppercase, lowercase, the City Municipal Logo, “and” or “&”, above the granite seam, below the seam, justified, centered, over the door, over the awning, over the fenestration, etc. Full size print outs of letters were held up by the contractor on the building for a sense of legibility by font style, size and weight. Due to the quality of the background (stone) the recommendation is for individual three-dimensional metal letters to be anodized to match an existing color on the building, rather than affixed to a background panel. Background, Continued, Page 2 The fonts are the same as the City municipal corporate logo, but are not the same weight, case or spacing. Too strong an association will result in a stale looking sign when the logo and logo lettering is refreshed (ideally in less than 50 years). All letters are uppercase. This reinforces the vertical and horizontal lines of the building while still being immediately identifiable (using some lowercase and called attention to the sign over the building). An ampersand was chosen over the word “AND” because since the word “and” falls near the middle of the sign and becomes the dominant word removing focus from “PUBLIC LIBRARY” and “CITY HALL” reducing legibility. The street number will be above the deposit drop box in the serif font. Sizing will be coordinated with the size of the deposit box and fire safety requirements. RECOMMENDATION: Approve the concept and provide any comments. ATTACHMENTS: None; to be provided COB Thursday. Note that perspective view will be provided so the overall impression may be viewed, but that an assessment of readability is best achieved in a scale printout at the height of the sign. ADDITIONAL CONSIDERATION The concept, once approved, will still need to be refined. The architects will work over the next week to select the exact letter size based on the color of metal and its ability to stand out against the stone, and letter spacing in order to be able to affix the letters without compromising the granite (there are seams to be avoided) and obtain the best legibility. Staff will also obtain a sign permit from Planning and Zoning.