HomeMy WebLinkAbout10-02-17 City Commission Packet Materials - A8. Ordinance 1980 Provisional, Condos Removed from Affordable HousingPage 1 of 9
17381, Staff Report for the Affordable Housing – Condominiums Text
Amendment
Public Hearing Dates: Zoning Commission/Planning Board – September 5, 2017
Zoning Commission – September 19, 2017
City Commission – October 2, 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 Planning Board/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: September 25, 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repealed Chapter 10, Article 8, of the Bozeman Municipal Code, Workforce Housing, in its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
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requirements if specific contingencies detailed in Section 10 of the Ordinance occurred by
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.
Planning Board and Zoning Commission
The Planning Board conducted a public hearing on September 5, 2017 to consider the
ordinance. They recommended approval of the text amendment by a unanimous vote of 6-0.
The Zoning Commission not having a quorum due to a member needing to recuse himself
from consideration did not act on the amendment. No public comment was received.
The Zoning Commission conducted a public hearing on September 19, 2017. The
recommended approval of the text amendment by a unanimous vote of 3-0. No public
comment was received.
The audio and video of the two meetings can be found
at https://www.bozeman.net/services/city-tv-and-streaming-audio.
Alternatives
1. Adoption of the ordinance as submitted.
2. Revision of the ordinance prior to adoption.
3. Continuation of the public hearing.
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4. Do not approve the ordinance.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 1
Unresolved Issues ............................................................................................................... 1
Project Summary ................................................................................................................. 1
Planning Board and Zoning Commission ........................................................................... 2
Alternatives ......................................................................................................................... 2
SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 4
SECTION 2 - STAFF ANALYSIS AND FINDINGS ............................................................. 4
Section 76-2-304, MCA (Zoning) Criteria ......................................................................... 4
Subdivision Criteria ............................................................................................................ 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 Planning Board held a public hearing on this text amendment on September 5, 2017 and
forwards a favorable recommendation to the Commission on the text amendment
The Zoning Commission held a public hearing on this text amendment on September 5, 2017
and September 19, 2017 and forwards a favorable recommendation to the Commission on the
text amendment.
The City Commission will hold a public hearing on the text amendment on October 2, 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.
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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
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.
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I. Peculiar suitability for particular uses.
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 Planning
Board/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 City Commission hearing is scheduled for October 2, 2017.
No public comment has been received to date.
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
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Page 1 of 6
ORDINANCE NO. 1980
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA AMENDING THE UNIFIED DEVELOPMENT CODE, CHAPTER 38 OF
THE BOZEMAN MUNICIPAL CODE, TO REMOVE CONDOMINIUMS FROM THE
APPLICABILITY OF ARTICLE 43, AFFORDABLE HOUSING
WHEREAS, on February 5, 2016, the Bozeman City Commission adopted Ordinance
1922, which added a new Article 43 regarding affordable housing; and
WHEREAS, Article 43 requires certain development projects proposing ten or more
market-rate homes to include a certain percentage of affordable homes at prices affordable to
households with incomes at or below a percentage of area mean income (AMI); and
WHEREAS, the definition of “market-rate home” in Article 43 includes condominiums,
so that condominiums in a development must be counted toward the ten or more dwelling units
that will cause the development to be subject to Article 43; and
WHEREAS, the definition of “affordable home” in Article 43 does not include
condominiums, so that the sale of condominiums does not satisfy the requirements of Article 43.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
Section 1
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That Article 43, Affordable Housing, is amended to remove condominium units from the
application of Article 43, and to clarify certain language, as follows:
Sec. 38.43.030. – Applicability.
. . .
E. Exemptions. Developments comprised exclusively of rental housing units are exempt
from these requirements this article.
Sec. 38.43.040. – Definitions.
1. Affordable housing or affordable homes. A dwelling for purchase by an owner-occupant
that requires no more than 33 percent of a household’s income for housing payments and
meets the definition of a lower-priced home or moderate-priced home. For purposes of
this article, “affordable housing” or “affordable home” does not include condominium
units.
. . .
7. Market-rate home. Any dwelling for purchase subject to this article which is not an
affordable home, including detached dwellings, attached town houses, and condominium
units but not including housing units that are developed for exclusive use as a rental. The
number of market-rate homes in a development is used to determine the required number
of affordable homes, as described in this article. For purposes of this article, “market rate
home” does not include condominium units.
. . .
Sec. 38.43.060. – Number of affordable homes required.
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The number of affordable homes a developer is required to build is a percentage of the
total dwellings market-rate homes proposed in the development plan.
A. The developer may:
1. Build and sell lower-priced homes. Ten percent of the total dwellings constructed
within the subdivision or site plan must be lower-priced homes built and sold at price
targets as established by the city pursuant to section 38.43.070 to households with
incomes at or below 80 percent of AMI; or
2. Build and sell moderate-priced homes. 30 percent of the total dwellings proposed must
be moderate-priced homes sold at price targets as established by the city pursuant to
section 38.43.070 to households with incomes from 80 percent to 100 percent of AMI;
or
3. Build and sell a mix of both types of affordable homes. If a developer proposes a mix
of both lower-priced and moderate-priced homes, the developer starts with the ten
percent calculation for lower-priced homes. For each lower-priced home eliminated
from the resulting number, the developer may substitute three moderate-priced homes.
The distribution of homes between the two categories of affordable homes will be
identified in the affordable housing plan required by section 38.43.100.
. . .
Sec. 38.43.070. – Pricing of affordable homes.
. . .
B. Affordable home sales price schedule.
. . .
3. Considerations. The following factors will be considered by the city in calculating the
sales price schedule. The director of community development may make de minimis
exceptions to application of these factors:
. . .
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c. The maximum monthly payment will be 33 percent of gross monthly income. The
maximum monthly payment will include costs directly applicable to a mortgage
such as payment of principal, interest, as well as assumptions for typical costs of
taxes, public assessments, property insurance premiums, mortgage insurance
premiums (assuming the higher of either government or private mortgage
insurance), and homeowner/condominium association fees;
. . .
Section 2
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of
the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 3
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 4
Severability.
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That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 5
Codification.
This Ordinance shall be codified as indicated in Section 1.
Section 6
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the 2nd day of ________________, 2017.
____________________________________
CARSON TAYLOR
Mayor
ATTEST:
____________________________________
ROBIN CROUGH
City Clerk
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FINALLY PASSED, ADOPTED, AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 2017. The effective date of this ordinance is __________, __, 2017.
_________________________________
CARSON TAYLOR
Mayor
ATTEST:
_______________________________
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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