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17381, Staff Report for the Affordable Housing – Condominiums Text
Amendment
Public Hearing Date: Zoning Commission/Planning Board – September 5, 2017
City Commission – September 18, 2017
Project Description: A text amendment to revise Article 38.43, Affordable Housing, of the
Bozeman Municipal Code. These amendments, if adopted, would make the
requirements of Article 38.43 not applicable to condominium units.
Project Location: Applicable throughout the entire city.
Recommendation: Approval
Recommended Zoning Commission Motion: Having reviewed and considered the
application materials, public comment, and all the information presented, I hereby
adopt the findings presented in the staff report for application 17381 and move to
recommend approval of the text amendment.
Recommended City Commission Motion: Having reviewed and considered the application
materials, public comment, and all the information presented, I hereby adopt the
findings presented in the staff report for application 17381 and move to provisionally
adopt Ordinance 1980.
Report Date: August 31, 2017
Staff Contact: Martin Matsen
Agenda Item Type: Action - Legislative
EXECUTIVE SUMMARY
Unresolved Issues
None
Project Summary
The City adopted Ordinance 1922 on December 7, 2015. Section 1 of Ordinance 1922
repealed Chapter 10, Article 8, of the Bozeman Municipal Code, Workforce Housing, in its
entirety. Section 2 of the Ordinance added a temporary Article 38.43, Affordable Housing,
with voluntary standards for the provision of affordable housing and available incentives for
meeting those standards. Section 3 of the Ordinance added Article 38.43 as mandatory
requirements if specific contingencies detailed in Section 10 of the Ordinance occurred by
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specified dates. Sections 1 and 2 were effective on February 5, 2016. Section 3 of the
Ordinance had a contingent effective date of 30 days after the occurrence of one of the
contingencies listed in Section 10.
The first contingency in Section 10 of Ordinance 1922 which would cause Section 3 to go
into effect was “[i]f less than 14 (fourteen) affordable homes, as defined in Section 2 of this
Ordinance, are constructed and sold as single household detached dwellings and sold
cumulatively throughout the city prior to September 12, 2016 and of these 14 affordable
homes no less than four (4) qualify as lower-priced homes.” This date was revised to June
12, 2017 by the adoption of Ordinance 1954 on September 7, 2016.
As the June 12, 2017 date approached, several questions were raised regarding how
condominiums were affected by the mandatory regulations in Section 3 of Ordinance 1922.
On July 10, 2017 the Director of Community Development reported to the City Commission
that an insufficient number of affordable homes had been constructed by June 12, 2017, and
that pursuant to Section 10, Article 38.43 would become mandatory on July 12, 2017. At
that meeting, the Commission directed an amendment to Article 38.43 be prepared to remove
condominiums from the affordable housing regulations until a more comprehensive
evaluation of affordable housing and potential revisions to the regulations could be prepared.
The effect of this amendment, if adopted, is that condominium units would not be included in
the definition of “market rate home” for purposes of applying the requirements of Article
38.43, and would not meet the definition of “affordable home” for purposes of satisfying the
requirements of Article 38.43.
Alternatives
1. Adoption of the ordinance as submitted.
2. Revision of the ordinance prior to adoption.
3. Continuation of the public hearing.
4. Do not approve the ordinance.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 1
Unresolved Issues ............................................................................................................... 1
Project Summary ................................................................................................................. 1
Alternatives ......................................................................................................................... 2
SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 4
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SECTION 2 - STAFF ANALYSIS AND FINDINGS ............................................................. 4
Section 76-2-304, MCA (Zoning) Criteria ......................................................................... 4
Subdivision ......................................................................................................................... 6
Section 76-1-606, MCA (Effect of Growth Policy on Subdivision Regulations) .............. 6
Section 76-3-102, MCA (Subdivision Purposes)................................................................ 6
Section 76-3-501, MCA (Subdivision Purposes)................................................................ 7
PROTEST NOTICE FOR ZONING AMENDMENTS ........................................................... 8
APPENDIX A - NOTICING AND PUBLIC COMMENT ...................................................... 9
APPENDIX B – APPLICANT INFORMATION AND REVIEWING STAFF ...................... 9
FISCAL EFFECTS ................................................................................................................... 9
ATTACHMENTS ..................................................................................................................... 9
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SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for a zone map amendment, the Staff recommends
approval as submitted.
The Zoning Commission will hold a public hearing on this text amendment on September 5,
2017 and will forward a recommendation to the Commission on the Zone Map amendment.
The City Commission will hold a public hearing on the text amendment on September 18,
2017. The meeting will be held at 121 N. Rouse Avenue, Bozeman. The meeting will begin
at 6 p.m.
SECTION 2 - STAFF ANALYSIS AND FINDINGS
In considering applications for approval under this title, the advisory boards and City
Commission shall consider the following criteria. As a code amendment is a legislative
action, the Commission has broad latitude to determine a policy direction.
Because the amendments affect zoning as well as subdivision applications, an analysis of
both zoning and subdivision criteria is included below.
Section 76-2-304, MCA (Zoning) Criteria
In considering the following criteria the analysis must show that the amendment
accomplishes criteria A-D or are neutral. Criteria E-K must be considered and may be found
to be affirmative, neutral, or negative. A favorable decision on the proposed application must
find that the application meets all of criteria A-D and that the positive outcomes of the
amendment outweigh negative outcomes for criteria E-K.
A. Be in accordance with a growth policy.
Yes. Objective G-2.1: Ensure that development requirements and standards are efficiently
implemented, fairly and consistently applied, effective, and proportionate to the concerns
being addressed.
Objective 3.3. – Promote the development of a wide variety of housing types, designs, and
costs to meet the wide range of residential needs of Bozeman residents.
Implementation Policy 2a: Review and evaluate for effectiveness, and as necessary modify,
each City program or policy at least every five years.
A review of the present ordinance has identified concerns regarding how condominiums are
treated under the ordinance. As written, a condominium project can trigger the requirement
to participate in the affordable housing program, while disallowing condominiums as a form
of affordable housing that would meet the required provision of affordable housing. This
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places an uneven burden on providers of housing which is inconsistent with the above noted
elements from the growth policy. Housing remains a vitally important element of the
community. A broad review of the affordable housing policy has been proposed. This review
will enable consideration of how to correctly include condominiums as part of the overall
affordable housing program. Until such review can be conducted it is appropriate to pass the
present amendments to avoid inconsistencies in applying the affordable housing requirements
in Article 38.43.
B. Secure safety from fire and other dangers.
Neutral. The proposed amendment does not change setbacks, flood prevention standards, or
other regulations for physical hazards such as fire.
C. Promote public health, public safety, and general welfare.
Neutral. The proposed amendment does not amend sanitation standards, park requirements,
or other standards related to this criterion.
D. Facilitate the provision of transportation, water, sewerage, schools, parks and other
public requirements.
Neutral. The proposed amendments address application of affordable housing regulations. No
changes to code provisions addressing these or other public facilities are included with the
amendments.
E. Reasonable provision of adequate light and air.
Neutral. The proposed amendments do not alter any setback or other standards which address
this criterion.
F. Effect on motorized and non-motorized transportation systems.
Neutral. The proposed amendments do not alter the standards that address this criterion.
G. Promotion of compatible urban growth.
Neutral. This criterion addresses the uses allowed in a given area. The amendments do not
change the uses allowed within zoning districts nor do they amend the zoning map.
H. Character of the district.
Neutral. The amendments do not change the uses allowed within zoning districts nor do they
amend the zoning map. The subject matter of the amendment is condominiums.
Condominiums are a form of ownership of property and can occur in any zoning district and
for any type of land use.
I. Peculiar suitability for particular uses.
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Neutral. The proposed amendments do not alter the zoning map or allowed uses within
zoning district. The change will not prohibit the construction of any type of allowed use
within a zoning district.
J. Conserving the value of buildings.
Neutral. The amendments are expected to have little if any impact on existing buildings. The
proposed change removes the requirement that might have been applied had an apartment
building been converted to condominiums. At this point, it is unknown and speculative as to
how this requirement might have affected building value.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Neutral. The proposed amendments do not alter the zoning map or allowed uses within
zoning district. The change will not prohibit the construction of any type of allowed use
within a zoning district.
Subdivision Criteria
In considering the following criteria, the application must be evaluated against subdivision
criteria 1-17. A favorable decision on the proposed application must find that the positive
outcomes of the amendment outweigh negative outcomes for criteria 1-17.
Section 76-1-606, MCA (Effect of Growth Policy on Subdivision Regulations)
1. Subdivision regulations adopted after a growth policy has been adopted must be
made in accordance with the growth policy.
Yes. See Zoning Criterion A. above.
Section 76-3-102, MCA (Subdivision Purposes)
2. Promote the public health, safety, and general welfare by regulating the
subdivision of land.
Yes. The proposed amendments resolves an identified inconsistency in applying the
affordable housing requirements as written to condominiums. There are larger amendments
needed to establish necessary procedures for condominiums to apply the affordable housing
program. Removing condominiums from the applicability of Article 38.43 will serve the
general welfare by resolving the inconsistency in the regulations until all required elements
for the appropriate treatment of condominiums can be created. At that time, a separate
amendment to consider the overall revisions to the program to address condominiums will be
considered.
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3. Prevent the overcrowding of land.
Neutral. The amendments do not increase the allowed density of construction of new
buildings; nor does it restrict the provision of required utilities and services to support new
construction.
4. Lessen congestion in the streets and highways.
Neutral. See zoning criteria D and F, and subdivision criterion 3 above.
5. Provide adequate light, air, water supply, sewage disposal, parks and recreation
areas, ingress and egress, and other public improvements.
Neutral. See zoning criteria D and E above.
6. Require development in harmony with the natural environment.
Neutral. The proposed amendments do not alter any standards or criteria for watercourses,
flooding areas, wildlife habitat, or other issues related to the natural environment.
7. Protect the rights of property owners.
Neutral. The proposed amendments do not change due process requirements or other
protections for the rights of property owners.
8. Require uniform monumentation of land subdivisions and transferring interests
in real property by reference to a plat or certificate of survey.
Neutral. The proposed amendments do not affect this criterion. The Unit Ownership Act
provides for the required procedures to create and transfer condominiums.
Section 76-3-501, MCA (Subdivision Purposes)
This section requires local governments to adopt regulations that reasonably provide for:
9. Orderly development within the jurisdictional area.
Neutral. The proposed amendments do not alter street layout, block configuration, or other
standards that enable orderly development.
10. Coordination of roads within subdivided land with other roads, both existing
and planned.
Neutral. The proposed amendments do not alter street standards for construction or location.
11. Dedication of land for roadways and for public utility easements.
Neutral. The proposed amendments address the exclusion of condominiums from the City’s
affordable housing regulations. Road dedication or utility easement requirements are not
affected.
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12. Improvement of roads.
Neutral. The proposed amendments do not alter street standards for timing of or method of
construction or location.
13. Provision of adequate open spaces for travel, light, air and recreation.
Neutral. No changes to the park dedication or natural resource protection regulations are
included with these amendments.
14. Adequate transportation, water and drainage.
Neutral. See the responses above in both zoning and subdivision review criteria related to
these topics. E.g. zoning criteria D and F and subdivision criteria 4, 5, and 11.
15. Regulation of sanitary facilities, subject to section 76-3-511, MCA.
Neutral. No changes to regulations of sanitary facilities are included with these amendments.
16. Avoidance or minimization of congestion.
Neutral. See subdivision criteria 3, 4, 5, 10, and 11 and zoning criteria D and E.
17. Avoidance of subdivision which would involve unnecessary environmental
degradation and the avoidance of danger or injury to health, safety, or welfare by
reason of nature hazard or the lack of water, drainage, access, transportation, or other
public services or would necessitate an excessive expenditure of public funds for the
supply of such services.
Neutral. The amendments do not alter any standard or criteria which is used to determine
whether property is suitable for subdivision or the relative ease or difficulty of providing
public services.
PROTEST NOTICE FOR ZONING AMENDMENTS
IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE
OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT
AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A
PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT
BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING
MEMBERS OF THE CITY COMMISSION.
The City will accept written protests from property owners against the proposal
described in this report until the close of the public hearing before the City
Commission. Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s)
of real property within the area affected by the proposal or by owner(s) of real property that
lie within 150 feet of an area affected by the proposal. The protest must be in writing and
must be signed by all owners of the real property. In addition, a sufficient protest must: (i)
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contain a description of the action protested sufficient to identify the action against which the
protest is lodged; and (ii) contain a statement of the protestor's qualifications (including
listing all owners of the property and the physical address and legal description of the
property), to protest the action against which the protest is lodged, including ownership of
property affected by the action. Signers are encouraged to print their names after their
signatures. A person may in writing withdraw a previously filed protest at any time prior to
final action by the City Commission. Protests must be delivered to the Bozeman City
Clerk, 121 North Rouse Ave., PO Box 1230, Bozeman, MT 59771-1230.
APPENDIX A - NOTICING AND PUBLIC COMMENT
Noticing was provided by publication in the legal notices of the Bozeman Daily Chronicle.
Notice was provided at least 15 and not more than 45 days prior to the Zoning Commission
and City Commission public hearings. Notice was further provided by publication of the
Commission’s agenda on the City’s website and in the Bozeman Daily Chronicle. The
hearing is scheduled for September 18, 2017.
APPENDIX B – APPLICANT INFORMATION AND REVIEWING STAFF
Applicant: City of Bozeman, PO Box 1230, Bozeman MT 59771
Report By: Martin Matsen, Director of Community Development
FISCAL EFFECTS
No presently budgeted funds will be changed by this text amendment.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715.
Draft ordinance