The URL can be used to link to this page

Home My WebLink About07-17-17 City Commission Packet Materials - A5. Resolution 4808, Amending the Affordable Housing Manual Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Martin Matsen, Director of Community Development SUBJECT: Commission Resolution 4808 amending the City of Bozeman Affordable Housing Ordinance (AHO) Administrative Manual to: 1) eliminate the references to minimum square footages and rely solely on the minimums already required by applicable building codes currently adopted by City of Bozeman; and 2) remove references to 80 percent Area Median Income (AMI) in reference to pricing in the AHO Administrative Manual to maintain consistency with the Ordinance. MEETING DATE: July 17, 2017 AGENDA ITEM TYPE: Action MOTION: “Having considered the staff memorandum, public comment, and all information presented, I hereby move to adopt Resolution 4808, amending the Affordable Housing Ordinance Administrative Manual to eliminate all references to minimum building square footage for affordable homes and to eliminate all references to 80 percent Area Median Income pricing in the Manual.” BACKGROUND: 1.) Minimum Square Footages: The City of Bozeman Affordable Housing Ordinance (AHO) Administrative Manual adopted by Resolution 4659 (2/8/2016) outlines minimum square footage requirements that are intended to ensure livability for residents and compatibility for neighbors. Page 13 of the Administrative Manual outlines the specific minimum “heated building areas” based on the number of bedrooms. For example a two-bedroom detached home is required to have a minimum heated area of 800 square feet. The current text offers very limited flexibility to grant exceptions in cases only where there are market-rate smaller homes: “Notwithstanding these requirements, the Director of Community Development may grant exceptions to these requirements for developments containing market-rate “small houses” that are smaller than these minimums.” (Page 13). Minimum square footage references should be eliminated from the Manual. The building codes currently adopted by City of Bozeman will ensure that affordable units are treated the exact same as market-rate units in terms of minimum size requirements. As stated in the Preface, the International Residential Code is “founded on the principles intended to establish provisions consistent with the scope of a residential code that adequately protects public health, safety, and welfare….” 30 As developers and builders begin to apply the design standards in the Manual to potential projects in Bozeman and continue to follow national market trends, they have a deeper understanding that homes significantly smaller than those listed in the Manual are desirable for a variety of reasons. For some, a smaller square footage may be the only way to enter the Bozeman housing market. Others may be looking to simplify their lives by downsizing their homes and decreasing their environmental footprint. The City’s adopted growth policy supports this amendment. Page F-12 of the Community Plan states that “Bozeman has diligently worked to remove the elements of exclusionary regulations from its standards.” This first bullet point further discusses that how the minimum floor area for dwellings is usually far in excess of actual need. The Plan goes further to state: “Calculations by the Building Division in 2007 indicate that under the City’s adopted regulations a three bedroom home could be permitted which only required 565 square feet of built area. Such small homes are not actually being constructed in Bozeman. Nationally there is a growing small home movement which is emphasizing quality of design and a simper less consumptive lifestyle. Such factors affect the cost of constructing housing” (Page F-12) Today’s applicable IRC (2012) would allow even smaller square footages than quoted in the Community Plan. Additionally, the City of Bozeman Cottage Housing Ordinance is intended to “… achieve the goals and objectives of the Land Use and Housing chapters of Bozeman's growth policy and the goals of the Inclusionary Housing Ordinance, article 38.43. Cottage housing enables higher density development by allowing smaller lots, smaller home sizes, and clustered home sites, which are subject to design standards. This housing development option encourages more efficient use of land and energy” (UDC 38.22.240.A.1). However, if this ordinance is used to create a community land trust with 100 percent of the units affordable, then there are no market-rate units to justify an exception to the minimum required square footages. In summary, with this amendment, well-intended but unnecessary barriers to affordability will be eliminated from the Manual while existing building code requirements will continue to protect individuals whether they are in market-rate or affordable units. 2.) Inconsistent References to AMI: Currently, the Manual references an option for 80 percent AMI (related to pricing) while the Ordinance very specifically places 65-80 percent AMI at 70 percent for pricing and 81-100 percent AMI at 90 percent for pricing. This presents a confusing conflict for pricing and should be amended for consistency and clarity. Page 8 of the manual says: "The AHO establishes three levels of AHO Maximum Prices... corresponding to 70% (effective), 80% (effective) and 90% AMI. (Except for the AHO Maximum Price for 80% AMI, the AMI benchmarks for pricing are set at 10% below the corresponding max incomes in order to permit a wider range of buyers to qualify...)" The recommended language is: "The AHO establishes two levels of maximum prices... corresponding to 70% and 90% AMI. The benchmarks for pricing are set 5% below and 10% above the "lower-priced home" sales price and 9% below & 10% above the "moderate-priced" sales price to permit a wider range of buyers to qualify." With the adoption of Resolution 4659, Staff anticipated revisions of the Manual as the Affordable Housing program developed and housing, regulatory, and best practice conditions changed. ALTERNATIVES: 1) Adopt the resolution to amend the administrative manual; or 2) Do not adopt the resolution to amend the administrative manual; or 31 3) As directed by the Commission. FISCAL EFFECTS: None at this time. Attachments: Resolution 4808 Report compiled on: July, 11, 2017 32 Page 1 of 3 COMMISSION RESOLUTION NO. 4808 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING THE AFFORDABLE HOUSING ORDINANCE (AHO) ADMINISTRATIVE MANUAL TO ELIMINATE ALL REFERENCES TO MINIMUM SQUARE FOOTAGES FOR AFFORDABLE HOMES AND TO RELY SOLELY ON THE MINIMUM SQUARE FOOTAGE REQUIRED FOR ALL HOMES BY EXISTING, ADOPTED BUILDING CODES AND TO REVISE INCONSISTENT REFERENCES TO AREA MEDIAN INCOME (AMI) IN THE ADMINISTRATIVE MANUAL. WHEREAS, Section 38.43.140 of the Bozeman Municipal Code (BMC) authorizes the creation of an Administrative Manual to implement and enforce the City’s Affordable Housing Ordinance; and WHEREAS, on February 8, 2016, the City adopted by Resolution 4659, the “City of Bozeman Affordable Housing Ordinance (AHO) Administrative Manual; and WHEREAS, the City has determined that it is in the best interest of Affordable Housing to remove the minimum square footage requirements in the Administrative Manual and to rely solely on existing building code requirements (International Building Code) which will continue to protect individuals equally whether they are in market-rate or affordable units; and WHEREAS, the City has determined that the Administrative Manual should be revised to eliminate inconsistent references to Area Median Income (AMI) based on specific AMI thresholds for lower-priced and moderate-priced homes codified in the AHO; and 33 Resolution 4808, Amending the Affordable Housing Ordinance Administrative Manual Page 2 of 3 WHEREAS, the City Commission has given due consideration to the issue of how best to administer the City’s regulations and having held a public hearing on July 17, 2017 to receive public comment; and WHEREAS, the City Commission finds that it is in the best interest of the proper administration of the City’s Chapter 38, Unified Development Code, BMC to amend the Bozeman Affordable Housing Ordinance Administrative Manual to eliminate all minimum square footage requirements and revise inconsistent AMI references. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that Section 1 All references to minimum square footages be removed from the Bozeman Affordable Housing Ordinance (AHO) Administrative Manual. Section 2 All references to 80 percent Area Median Income (AMI) be removed from the Bozeman Affordable Housing Ordinance (AHO) Administrative Manual to coordinate with AMI prices set forth in the Affordable Housing Ordinance. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 17th day of July, 2017. ___________________________________ CARSON TAYLOR Mayor ATTEST: ________________________________________ ROBIN CROUGH City Clerk 34 Resolution 4808, Amending the Affordable Housing Ordinance Administrative Manual Page 3 of 3 APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 35