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HomeMy WebLinkAboutAgenda - Planning Commission - 01/14/2020South Burlington Planning Commission 575 Dorset Street South Burlington, VT 05403 (802) 846-4106 www.sburl.com Meeting Tuesday, January 14, 2020 7:00 pm South Burlington Municipal Offices, 575 Dorset Street AGENDA: 1. Directions on emergency evacuation procedures from conference room (7:00 pm) 2. Agenda: Additions, deletions or changes in order of agenda items (7:02 pm) 3. Open to the public for items not related to the agenda (7:03 pm) 4. Planning Commissioner announcements and staff report (7:06 pm) 5. Continue Review of proposed Land Development Regulation amendments: (7:10 pm) 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. 6. Possible action to approve and submit proposed amendments and Report to City Council (7:25 pm) 7. Transfer of Development Rights Interim Zoning Committee Report work session and recommendations (7:30 pm) 8. Review and possibly approve Chittenden County Regional Planning Commission Unified Work Program (UPWP) candidate projects to City Council (8:45 pm) 9. Staff status Report on PUD/Master Plan/Subdivision Regulations overhaul (8:52 pm) 10. Other Business (8:55 pm) 11. Adjourn (9:00 pm) Respectfully submitted, Paul Conner, AICP, Director of Planning & Zoning South Burlington Planning Commission Meeting Participation Guidelines 1. The Planning Commission Chair presents these guidelines for the public attending Planning Commission meetings to ensure that everyone has a chance to speak and that meetings proceed smoothly. 2. Initial discussion on an agenda item will generally be conducted by the Commission. As this is our opportunity to engage with the subject, we would like to hear from all commissioners first. After the Commission has discussed an item, the Chair will ask for public comment. Please raise your hand to be recognized to speak and the Chair will try to call on each participant in sequence. 3. Once recognized by the Chair, please identify yourself to the Commission. 4. If the Commission suggests time limits, please respect them. Time limits will be used when they can aid in making sure everyone is heard and sufficient time is available for Commission to conduct business items. 5. Side conversations between audience members should be kept to an absolute minimum. The hallway outside the Community Room is available should people wish to chat more fully. 6. Please address the Chair. Please do not address other audience members or staff or presenters and please do not interrupt others when they are speaking. 7. Make every effort not to repeat the points made by others. 8. The Chair will make reasonable efforts to allow everyone who is interested in participating to speak once before speakers address the Commission for a second time. 9. The Planning Commission desires to be as open and informal as possible within the construct that the Planning Commission meeting is an opportunity for commissioners to discuss, debate and decide upon policy matters. Regular Planning Commission meetings are not “town meetings”. A warned public hearing is a fuller opportunity to explore an issue, provide input and sway public opinion on the matter. 10. Comments may be submitted before, during or after the meeting to the Planning and Zoning Department. All written comments will be circulation to the Planning Commission and kept as part of the City Planner's official records of meetings. Comments must include your first and last name and a contact (e-mail, phone, address) to be included in the record. 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com TO: South Burlington Planning Commission FROM: Paul Conner, Director of Planning & Zoning Cathyann LaRose, City Planner SUBJECT: PC Staff Memo DATE: January 14, 2020 Planning Commission meeting 1. Directions on emergency evacuation procedures from conference room (7:00 pm) 2. Agenda: Additions, deletions or changes in order of agenda items (7:02 pm) 3. Open to the public for items not related to the agenda (7:03 pm) 4. Planning Commissioner announcements and staff report (7:06 pm) Library/City Hall/Senior Center Site Plan & Zoning permit issued. The site plan and, following the appeal period, zoning permit for construction of the new municipal complex on Market Street has been issued. Here’s a link to the plans, approvals, and zoning permits (all part of our new online repository) Digitization project update. Having completed scanning of DRB and related files last year, we’re now working on scanning & indexing of zoning permits. The system now includes permits back to 2007. In addition, this past week we’ve issued an RFP for services to scan all of our large-scale plans to be included in this digital record. City Council budget meeting. The City Council’s budget presentations & meetings will take place on Monday, January 13th, with a possible special additional meeting on the 15th if needed. Open Space Interim Zoning Committee public presentation 1/23. The Committee will host a public presentation of their findings on Thursday the 23rd in the evening at the High School. Time TBD. I-89 Corridor Study public meeting 1/30. The CCRPC, in conjunction with member municipalities, is performing an assessment of the I-89 corridor through Chittenden County, including existing and possible interchanges. The first of three public meetings in this phase of the project will take place at South Burlington City Hall on Thursday, January 30th at 6 pm. For more information, visit the project website: https://envision89.com/ 5. Continue Review of proposed Land Development Regulation amendments: 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. See enclosed memo 6. Possible action to approve and submit proposed amendments and Report to City Council (7:28 pm) See notes above. 7. Transfer of Development Rights Interim Zoning Committee Report work session and recommendations (7:30 pm) Enclosed are three excerpts from work related to the TDR Inclusionary Zoning Committee’s Report. The Full Report can be found here. The documents are: - The Report’s recommendations - Conceptual map of possible receiving areas - Open Space Interim Zoning Committee Priority Parcel map This item will include a discussion on Tuesday to start the effort to complete the Report and the Commission’s next steps. At this meeting, Commissioners will review the Report’s recommendations; discuss completion of the Report; and begin to review the policy implications of the recommendations. 8. Review and possibly approve Chittenden County Regional Planning Commission Unified Work Program (UPWP) candidate projects to City Council (8:45 pm) Enclosed please find a recommended list of projects from staff, with the Planning Commission’s recommendations incorporated. Following the Commission’s initial review in late 2019, staff met with the CCRPC to identify manners in which capacity for planning projects could be increased through direct assistance and/or project management. The enclosed proposal includes an allocation of the P & Z Department’s consulting budget towards this effort. In order to make additional financial room, the local match for transportation-related projects is proposed to be drawn from DPW’s consulting budget rather than P & Z in order, again, to extend capacity for planning projects. 9. Staff status Report on PUD/Master Plan/Subdivision Regulations overhaul (8:52 pm) Staff will provide a brief summary of where we’re at. Great news! We’ve received drafts of several sections and are working through the details under the umbrella of the Commission’s prior guidance. 10. Other Business (8:55 pm) 11. Adjourn (9:00 pm) 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com TO: South Burlington Planning Commission FROM: Paul Conner, Director of Planning & Zoning SUBJECT: Inclusionary Zoning / Affordable Housing post-hearing modifications DATE: January 14, 2020 Planning Commission special meeting Enclosed with your packet please find the proposed amended LDR language for Inclusionary Zoning and Affordable Housing Density Bonus. This draft incorporates the amendments reviewed and/ requested by the Commission on 12/17 as well as the completion of the legal review. Key to the enclosed documents 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. In the margins, staff has included comments listing change made to the version that the Planning Commission warned a public hearing for back in October (for the hearing on 12/10); those in yellow highlight are about changes made after the PC discussion on 12/17. • Clean version. This version is a completely clean version of what the LDRs would look like if adopted. Summary of changes since December 17th All of the changes below can be found in the document, annotated. 1. 18.01(B)(1)(d) – Applicability. Clarifies, per the PC’s discussion, that the entire area of a parcel or PUD that includes land where Inclusionary Zoning applies would be subject to Inclusionary Zoning 2. 18.01(B)(2)(b) – Covered Development. Clarifies that in addition to standard housing, the inclusionary requirements apply to Congregate Care. Prior drafts referred in some areas to “congregate care” and other areas to “all other forms of permanent housing including congregate care). 3. 18.01(B)(2)(c) – aggregated developments. Added per legal review. Confirms applicability of the Inclusionary Standard and precludes two projects, each of which would be subject to Inclusionary Standards, from having to be aggregated unnecessarily. 1/10/2020 2 4. 18.01(B)(2)(d) – Previously approved master plans. New section to clarify when Inclusionary Zoning applies per the PC’s discussion on 12/17. This section would require that projects for which a complete preliminary plat or site plan application has not yet been received would be subject to the Inclusionary Zoning (including if they had received a Master Plan approval but not yet submitted a preliminary plat). In the case of a Master Plan, it does automatically allow the offset units to be added to the MP as a result, however. This is because under the MP requirements, normally, any increase in the total # of dwelling units would trigger an amendment to the MP. That seemed to be a catch-22. 5. 18.01(C)(2)(a)&(b) – Integration of inclusionary units. This section has been modified to reflect the Commission’s guidance on 12/17 regarding integration of inclusionary units within the development. Staff found some conflicting language in the 12/17 draft regarding the relationship of market rate & inclusionary units that arose from edits made in the week prior. The latest draft is based off the overall intent of the Affordable Housing Committee’s intent (to have a proportionality of market rate and inclusionary bedrooms, and to provide flexibility in how those are delivered) while providing the DRB with guidance on how to assure that the market rate & inclusionary units are effective integrated. See specific notes on changes within the draft. 6. 18.01(C)(2)(c) – phasing of construction of inclusionary units. This section has been augmented to require an application to provide a proposed phasing plan to the DRB and a specific allowance for the DRB to attach conditions. With this in place, we were able to remove the requirement for the “last 10% of units” which is problematic in its implementation. 7. 18.01(G)(2) Density Bonuses. Added “maximum” to density, and added “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” per PC discussion 12/17/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 1 ARTICLE 2 DEFINITIONS 2.02 Specific Definitions Affordable housing. Housing that is either of the following: (A) Owned by its inhabitants, whose gross annual household income does not exceed one- hundred percent (100%) 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 (HUD), 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) Rented by its inhabitants whose gross annual household income does not exceed eighty percent (80%) of the median income for the Burlington-South Burlington MSA, as defined by HUD, 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 units are affordable to households at 80% AMI for rentals and homeownership. This definition, however, does not apply to housing projects covered under inclusionary zoning, pursuant to 24 VSA §4414(7), and Section 18.01 of this ordinance. 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 inhabitants whose gross annual household income does not exceed 80% of the median income for the Burlington-South Burlington Metropolitan Statistical Area (MSA), which is calculated using a 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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 2 (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 inhabitants whose gross annual household income does not exceed 80% of the median income for the Burlington-South Burlington MSA, to which the unit is targeted, and which is 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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 3 18. AFFORDABLE HOUSING STANDARDS 18.01 Inclusionary Zoning 18.02 Affordable Housing Density Bonus 18.03 Housing Preservation 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 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: (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; ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 4 (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. (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 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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 5 (i) 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 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. 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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 6 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 the area of the above-grade living space. However, the minimum area of the above-grade living space 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. However, if the average (mean) area of the living space of the market rate units is less than the minimum area required for the living space of inclusionary units, then the area of the inclusionary units shall be no less than 90% of the average (mean) area of the market rate units. (v) Inclusionary units developed as part of a housing development of market rate duplexes 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 duplexes or multi- family dwellings provided that they have the appearance of single-family dwellings. (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. (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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 7 (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 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 linke d 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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 8 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. (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- ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 9 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; (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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 10 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. (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. 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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 11 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). 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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 12 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; (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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 13 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 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 below market rate 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 rate 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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 14 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 above grade living area per affordable dwelling unit shall be no smaller than 70% of the average above grade living area of the comparable market-rate units in the housing development. (c) Plan for Continued Affordability. The standards for 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; ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 15 (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 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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 16 (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 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: ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 17 (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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 18 NOTE - The following includes Inclusionary Zoning amendments to other LDR Articles: 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 DRAFT South Burlington Land Development Regulations 1 ARTICLE 2 DEFINITIONS 2.02 Specific Definitions Affordable housing. this shall meanHousing that is either of the following: (A) Housing that is oOwned by its inhabitants, whose gross annual household income does not exceed eighty one-hundred percent (80100%) 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 (HUD), 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 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 DevelopmentHUD, 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 units are affordable to households at 80% AMI for rentals and homeownershiphousing units. This definition, however, does not apply to housing projects covered under inclusionary zoning, pursuant to 24 VSA §Section 4414(7), and Section 18.01 of this ordinance. 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 Housing Inclusionary ownership unit. A dwelling unit: (1) The sales price for which does not exceed the maximum price for inhabitants whose gross annual household income does not exceed 80% of the median income for the Burlington-South Burlington Metropolitan Statistical Area (MSA), which is calculated using a HUD formula that defines a unit-specific household size based on dwelling unit size (i.e. number of bedrooms); and Commented [A1]: Minor wording clarifications per legal review 12/12/2019 Commented [A2]: Consolidated existing definition of “household” and proposed new term “household size” per legal review 12/12/2019 Commented [A3]: Proposed version included a new definition, for inclusionary housing. Removed and consolidated into other definitions per legal review, 12/12/2019 Commented [A4]: Definition reworded per legal review, 12/12/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 2 (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 inhabitants whose gross annual household income does not exceed 80% of the median income for the Burlington-South Burlington MSA, to which the unit is targeted, and which is 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. Commented [A5]: Definition reworded per legal review, 12/12/2019 Commented [A6]: Minor rewording per legal review 12/12/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 3 18. AFFORDABLE HOUSING STANDARDS 18.01 Inclusionary Zoning 18.02 Affordable Housing Density Bonus 18.03 Housing Preservation 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: (a) All zoning districts that permit residential development and underlie the Transit Overlay District; ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 4 (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. (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 Commented [A7]: Staff recommended clarification per 12/17/2019 memo to Commission 1/8/2020 Commented [A8]: Added by AHC during public hearing review period, 12/4/2019 Commented [A9]: Reworded per legal review 12/12/2019 Commented [A10]: Added per PC discussion 12/17/2019 Commented [A11]: Added by AHC during public hearing review period to clarify how congregate care and other dwellings not treated as “residential” for density purposes in the regulations are regulated Commented [A12]: Clarified that this applies only to congregate care (prior versions referred to “all other forms of permanent housing, including but not limited to congregate care” and then later only referenced congregate car. 1/2/2020 Commented [A13]: Added per legal review. Confirms applicability of the Inclusionary Standard and precludes two projects, each of which would be subject to Inclusionary Standards, from having to be aggregated unnecessarily. 1/10/2020 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 5 (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 an approved master plan 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. (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. Commented [A14]: Section added per PC discussion 12/17/2020 to clarify the point at which Inclusionary Zoning applies. Commented [A15]: Consolidation of terms and minor rewording per legal review 12/12/2019 Commented [A16]: Added by AHC as during public hearing review period 12/4/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 6 (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. (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 the area of the above-grade living space. However, the minimum area of the above-grade living space 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. However, if the average (mean) area of the living space of the market rate units is less than the minimum area required for the living space of inclusionary units, then the area of the inclusionary units shall be no less than 90% of the average (mean) area of the market rate units. (v) Inclusionary units developed as part of a housing development of market rate duplexes 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 duplexes or multi- family dwellings provided that they have the appearance of single-family dwellings. (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. Commented [A17]: This section has been modified from prior versions per PC discussion as noted (12/17/19) Commented [A18]: Added language “complement the overall layout, scale, and massing of the proposed development” and reworded. Replaces prior drafts. 1/8/2020 Commented [A19]: This section was reworded to provide these minimums as the default, and providing an exception for the 90% rather than a either/or. 1/8/2020 Commented [A20]: Section updated from prior versions to clarify intent. 1/8/2020 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 7 (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. (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: Commented [A21]: Prior version had two options: to have bedrooms in the same proportion for inclusionary or market rate, or to meet the average. The second option (meet the average) encompasses the first option, so not necessary. 1/8/2020 Commented [A22]: Reworded per PC discussion 12/17/2020 Commented [A23]: This section has been augmented to require an application to provide a proposed phasing plan to the DRB and a specific allowance for the DRB to attach conditions. With this in place, we were able to remove the requirement for the “last 10% of units” which is problematic in its implementation. 1/10/2020 Commented [A24]: Minor rewording per legal review 12/12/2019 Commented [A25]: Minor rewording per legal review 12/12/2019 Commented [A26]: Minor rewording in this section per legal review 12/12/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 8 (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- 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 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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 9 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 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. Commented [A27]: Minor rewording per legal review 12/12/2019 Commented [A28]: Minor rewording per legal review 12/12/2019 Commented [A29]: Minor rewording per legal review 12/12/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 10 (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: (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 Commented [A30]: Added by AHC during public hearing review period 12/4/2019 Commented [A31]: Minor rewording throughout this subsection of most recent draft per legal review 12/12/2019 Commented [A32]: Added by AHC during public hearing review period 12/4/2019. PC concurred 12/17/2019 Commented [A33]: Clarification added by AHC during public hearing review period 12/4/2019 Commented [A34]: Added by AHC during public hearing review period 12/4/2019 Commented [A35]: Added for clarification by the AHC during public hearing review period 12/4/2019 Commented [A36]: Minor rewording per legal review 12/12/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 11 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. (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. Commented [A37]: Added by AHC during public hearing review period 12/4/2019 Commented [A38]: Added by AHC during public hearing review period 12/4/2019 Commented [A39]: Minor rewording per legal review 12/12/2019 Commented [A40]: Reworded by AHC during public hearing review period 12/4/2019 Commented [A41]: Minor rewording of this section per legal review 12/12/2019 Commented [A42]: AL: With addition of (B)(1)(d) for split lots, should the same contiguous underlying zoning district be considered whichever of (B)(1)(a)-(c) is applicable? Commented [A43R42]: Yes. Commented [A44]: Added “or PUD” per legal review 1/8/2020 Commented [A45]: Added by AHC during public hearing review period 12/4/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 12 (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. (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. 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). Commented [A46]: Added by AHC during public hearing review period 12/4/2019 Commented [A47]: Minor rewording of this section per legal review 12/12/2019 Commented [A48]: Minor rewording per legal review 12/12/2019 Commented [A49]: Added “maximum” to density, and added “. 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 per PC discussion 12/17/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington 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 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: Commented [A50]: Minor rewording per legal review in this section 12/12/2019 Commented [A51]: Staff removed section on limited parking minimum as they are no longer relevant 12/12/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 14 (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. Commented [A52]: Section removed per legal review: Since covered developments are reviewed as part of a PUD, etc., the review and decision administration is already covered elsewhere in the LDR. 12/12/2019 Commented [A53]: Added by AHC during public hearing review period 12/4/2019 Commented [A54]: Added by AHC during public hearing review period 12/4/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 15 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 rate 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 rate 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 Commented [A55]: Added by AHC during public hearing review period 12/4/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 16 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 floorabove grade living area per affordable dwelling unit shall not be lessbe no smaller than 70% of the average above grade living area of the comparable market-rate units in the housing development. (c) Plan for Continued Affordability. The standards for 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; Commented [A56]: Changed by AHC during public hearing review period 12/4/2019 Commented [A57]: AHC replaced prior proposal during public hearing review period 12/4/2019 Commented [A58]: Added by AHC during public hearing review period 12/4/2019 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 17 (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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 18 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 ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 19 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. ARTICLE 18 AFFORDABLE HOUSING STANDARDS DRAFT South Burlington Land Development Regulations 20 NOTE - The following includes Inclusionary Zoning amendments to other LDR Articles: 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. (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. Commented [A59]: Added by AHC during public hearing review period 12/4/2019 Commented [A60]: A portion of the proposed language in this section was removed due to redundancy per legal review 12/12/2019 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 ***** 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 will 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. draft 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. • 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; draft 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. draft TDR IZ Committee Report Recommendations For Planning Commission Discussion January 14, 2020 TDR IZ Committee Report Recommendations A. Expand the TDR marketplace to Receiving Areas outside the SEQ: • Establish Receiving Areas in zones outside the SEQ using a TDR Overlay District Map or other mapping tool and/or areas not identified by the Interim Zoning Open Space Committee as high priority for conservation. Attachment F provides a draft map for consideration. The map uses TDRs in conjunction with current zoning to increase residential density and, in some cases, business uses not currently permitted. Privately owned lots within specific areas have been flagged as recommended receiving areas. This current draft would add an unknown number of TDRs to the marketplace. • If TDRs are sent beyond the SEQ, they will by nature increase density beyond current zoning and beyond the expectations of affected neighborhoods. B. Create new definitions for the use of a “dwelling unit”: • Amend SB LDRs to establish a maximum square footage per dwelling unit. Owners or developers could build larger units in exchange for the purchase of a requisite number of TDRs. • Amend SB LDRs to allow for an increase in Lot Coverage in exchange for the purchase of a requisite number of TDRs. • In circumstances where a developer requests a waiver from the DRB for additional building density/lot coverage and the DRB is inclined to grant such waiver the developer is required to purchase a requisite number of TDRs in exchange for the waiver. C. Add new Sending Areas: • Designate areas in the SEQ that are presently Receiving Areas as Sending Areas to the extent a parcel is identified by the Interim Zoning Open Space Committee as high priority for conservation. • Add new Sending Areas that are outside of the SEQ to the extent a parcel is identified by the Interim Zoning Open Space Committee as high priority for conservation. D. Certain Receiving Areas in the SEQ would no longer be designated as such: • Sensitive areas in the SEQ identified by Interim Zoning Open Space Committee that are not “highest priority” could be developed, but not permitted to add units beyond their base density. E. Balance Supply and Demand • There should be an attempt to ensure a balance between capacity for TDR usage and the supply in order to create a fair and well-functioning TDR market. As such, the Committee recommends that some attempt be made to estimate the potential total demand under the revised proposal. If necessary, the City might consider changing the formula of value. This could be done by revising the current TDR formula of 1 TDR per 0.83 acres in each Sending Area to more than 0.83 acres per TDR. F. Retire TDRs • The City could purchase and retire TDRs from select parcels that have the highest conservation value as indicated by the Interim Zoning Open Space Committee. G. Connect Buyers and Sellers • The City should evaluate best practices to connect buyers and sellers of TDRs to create a fair TDR marketplace. 33 Attachment F – TDR Overlay District Map Recommended Zoning with TDR Overlay R2 —> R7 = 1. PURPLE R4 —> R7 = 7, ORANGE R4 —> “Transition Zone” = A, B 12 & 13 LIGHT BLUE (when R7/C1) (LIGHT GREEN when R7 only) (YELLOW When INSIDE Neighborhood Like Shelburne RD “secondary”) R7/C1 —> R12/C1 = 6 DARK RED R7/C2 —> R12/C2 = 3. LIGHT PINK IA —> R7 = 14a. DARK GREEN outline Unassigned But Opportunity = 2, 5, 9, 14, 16, RED OUTLINE Plann Comm considering changes. Include TDRs? (Paul’s Pink Map) 17 BRIGHT PINK https://www.arcgis.com/home/webmap/viewer.html?webmap=981146b29160450aa194e05f3104d33b&extent=- 73.2422,44.4126,-73.0416,44.4834 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com MEMORANDUM TO: South Burlington Planning Commission FROM: Paul Conner, Director of Planning & Zoning SUBJECT: FY ‘21 CCRPC Unified Planning Work Program projects DATE: January 14, 2020 Planning Commission meeting The Chittenden County Regional Planning Commission (CCRPC) is seeking input on possible transportation planning-related projects they should undertake in their next fiscal year in support of South Burlington. Based on feedback from the Planning Commission in November and a subsequent meeting with the CCRPC to discuss resources, staff is recommending the project below. The Commission’s action would be to approve and submit to the City Council for their approval. One important clarification received from the CCRPC based on our meeting: this UPWP list can include both transportation projects (funded via Federal transportation dollars, with a local match) and requests for CCRPC planning staff time (paid for at a specified rate from City funds). Proposed FY 2021 UPWP project applications: The lists below are categorized by type of project, per the CCRPC’s request, and each is ranked in proposed order of priority (also requested by the CCRPC). Transportation A. Complete existing projects as funded in FY 2020 - Traffic Overlay District / Transportation Impact Fee - Tilley Drive Network Study - Queen City Park Road Bicycle/Pedestrian Facility [note: these were all approved for funding for FY 2020. While we expect these to be completed by the end of FY 20, if they do extend into FY ’21, then completion of these are the top priority] B. Scoping Study of City Intersections likely needing future upgrades Summary: this project would scope alternatives for 2-3 roadway intersections that the City has identified as being likely candidates for upgrades in the coming years due to city objectives and/or new development. 2 Scoping would include examining options for signals vs roundabouts and examining how to appropriately balance needs of trucks, cars, bicycles, and pedestrians based on land uses, site conditions, and overall city transportation goals. By scoping these intersections now, the City can be positioned to have a publicly-vetted plan in place if and when the upgraded intersection is warranted. This could take place through City investment or developer-requirement. Candidate intersections would be determined at the start of the project, but could include locations such as Old Farm Road / Kimball Ave; Spear Street / Quarry Hill Road; Hinesburg Road / Meadowland Dr (in coordination with the Agency of Transportation); and Swift Street / Spear Street. Sources: Comprehensive Plan (identified intersections in Future Transportation Map); completed corridor studies (Spear Street Corridor Study; Tilley Drive Network Study, Dorset Street Corridor Study) Estimated cost: $20,000 City Match: $4,000 City Match Source: Public Works Special Project Fund C. Scoping Study of Undergrounding of Utilities – Williston Road South Side from Hinesburg Road to Dorset Street Summary: This project would perform a scoping-level assessment of moving overhead utilities along the south side of Williston Road to underground. Utilities along Dorset Street, Market Street, and Garden Street all are or will be underground. This project would be complementary to the above-ground improvements under design along this same segment – improvements to pedestrian & bicycles, landscaping, and lighting. The project also complements the narrow build- to-zones along this corridor in the City Center Form Based Code T4 District. Source: Comprehensive Plan; Williston Road Streetscape Project Estimated cost: $25,000 City Match: $5,000 City Match Source: Public Works Special Project Fund D. Bike Ped Infrastructure Data phase 2: evaluation criteria & field verify Summary: The City & CCRPC recently completed a mapping inventory of the city’s bicycle path segments, including type, side of the street, and location of existing & anticipated connections. Phase II of this project would add data fields and catalogue existing conditions in preparation for future infrastructure improvement projects. Specifically, data fields and field assessment of bridge condition, recreation path width and condition, and street/path integration would be collected. Source: Bike/Ped Committee 3 Estimated cost: $10,000 City Match: $2,000 City Match Source: Public Works Special Project Fund Planning & GIS Projects A. Planning Technical Assistance Summary: This project would reserve CCRPC staff time to provide support for selected planning & land use projects. Specific projects will be drawn from the Department’s and Planning Commission’ work plan, and may include direct technical assistance in developing planning & GIS projects, and/or project management of consultant projects identified by the City. May include working directly with City committees under the overall direction of the Planning & Zoning Department. City Payment: up to $25,000 City Match Source: Planning & Zoning Consultants B. Climate Action Plan Impact Evaluation Program Summary: In November the Energy Committee provided a memo (enclosed) discussing the need for a climate action plan impact evaluation program, to update methodologies used for prior tracking efforts and to bring consistency to measures used across municipalities. Staff recommends that the proposal provided by the Energy Committee be shared with the CCRPC as a candidate to qualify as a Regional project, meaning that its application would extend to multiple municipalities. Funding for regional projects include no required local match beyond regular dues. Data Collection Requests A. Traffic Counts at 5-6 locations Summary: The City annually requests traffic counts at a handful of locations, to be determined in the spring. B. Field Assessment of Highway Ordinance Restrictions Summary: The City Council recently updated the Traffic & Parking Ordinance. Included in the update was a need to field verify the location of certain restrictions. This project would include a field inventory and GPSing of the following: no parking and restricted parking areas, stop signs , yield signs, and speed limit areas. Data collected would be inputted into GIS format for use compatible with existing roadway datasets. Estimated cost: $5,000 City Match: $1,000 City Match Source: Public Works Special Project Fund 19 Gregory Drive, South Burlington, Vermont 05403 | www.southburlingtonvt.gov 1 TO: Paul Conner, Director of Planning & Zoning, City of South Burlington FROM: South Burlington Energy Committee SUBJECT: Developing a carbon emissions tracking framework to support climate action planning DATE: November 21, 2019 _____________________________________________________________________________________ The Energy Committee requests that the City of South Burlington request assistance from the Chittenden County Regional Planning Commission (CCRPC) to develop a carbon emission tracking program to support the City’s effort to achieve its climate action goals. In August 2017 the City adopted a resolution committing the City to achieving climate emission reductions called for by the Paris Accord. The resolution also committed the City to developing a Climate Action Plan to achieve these goals. An effective plan requires that we have reliable estimates of past and current climate emissions and the capacity to measure the City’s progress toward reducing the carbon emissions. The City also needs such a tracking program to evaluate the relative climate impacts of alternative action proposals. The Energy Committee assigns a high priority to developing an effective climate emission tracking program. In 2009 the Energy Committee commissioned a Greenhouse Gas Emissions Report for South Burlington that provided an initial assessment of the scale and sources of the City’s contribution to climate emissions. Similarly, the CCRPC has developed county-wide estimates for 2011 and 2016, estimates which provide some information on individual municipality emissions. These studies produced valuable information on the scale and major sources of climate emission. Unfortunately, the 2009 South Burlington study and the more recent CCRPC studies use estimating procedures and methodologies for many important sources of climate emissions that are different from the procedures used by the current CCRPC data sets. Because the methodologies differ, it is not possible to develop a view on how the City’s GHG emissions have changed over time. New metrics are needed that provide effective measures of changes in emissions from important energy uses. Good information is available on electricity and natural gas use but the methods for estimating transportation impacts and the impacts of building heating and operations that use light oil and propane are lacking. We do not have satisfactory measures for tracking South Burlington emissions from existing transportation activities and from building heating activities that use oil and propane. We note that the City of Burlington has developed metrics to support the implementation of its Net Zero Energy Plan that may help. 19 Gregory Drive, South Burlington, Vermont 05403 | www.southburlingtonvt.gov 2 We propose that the City request the assistance of the CCRPC with developing a climate action plan impact evaluation program that will take advantage of existing effective methods but will develop new impact measurement tools that address weaknesses in current climate emission estimates. We suggest that CCRPC help is needed so that we develop a tracking program that is adequate to the task and that is compatible with efforts of neighboring Chittenden County municipalities to implement similar climate action programs. In developing these tools, the key will be to ensure that the methodology remains consistent year-over-year so that the rate of change in GHG emissions can be measured. We suggest that effective collaboration with the CCRPC will produce a tracking program that many Chittenden County municipalities will find useful and that will enable the CCRPC to monitor climate action progress county-wide. We request that you request technical assistance from the CCRPC to help South Burlington establish a climate action tracking program.