HomeMy WebLinkAbout04-09-18 City Commission Packet Materials - A5. The Lakes at Valley West Phase 3 PUD ModificationPage 1 of 27
18127, City Commission Staff Report for The Lakes at Valley West Phase 3
Planned Unit Development (PUD) Modification
Date: Design Review Board (DRB) Meeting on March 28, 2018 at 5:30 pm in the City
Commission Room, City Hall, 121 N. Rouse Avenue, Bozeman, Montana
City Commission public hearing on April 9, 2018 at 6:00 pm in the City Commission Room,
City Hall, 121 N. Rouse Avenue, Bozeman, Montana
Project Description: A major modification to a previously approved Planned Unit
Development application. Relaxations approved with the original approval will
continue with this application. Three further relaxations are proposed regarding
affordable housing.
Project Location: The application applies to Lots 5-12, Lakes at Valley West Phase 3
Subdivision and addressed at 5519-5609 Arnhem Way.
Recommended Motion: Having reviewed and considered the application materials, public
comment, and all the information presented, I hereby move to adopt the findings
presented in the staff report and approve relaxations to 38.43.070.A to allow an
alternate pricing structure targeted at 80% of area median income and 38.43.070.C
to allow alternate household size in relation to bedrooms for determining maximum
sale price and to retain all other applicable code provisions.
Report Date: March 29, 2018
Staff Contact: Chris Saunders, Community Development
Matt Madsen, Community Development
Agenda Item Type: Action (Quasi-judicial)
EXECUTIVE SUMMARY
Unresolved Issues
The proposal raises several policy issues regarding the application of the City’s affordable
housing requirements, currently in Article 38.43 of the municipal code. These questions are
not related to home design or site layout. Detailed analysis begins on page 12. The specific
policy issues that are related to the procedures, incentives, and qualification processes are:
1. An alternative pricing structure for affordable homes is being suggested with two
deviations from the current ordinance. Article 38.43.070 states that homes will be sold
at the 70% Area Median Income price and will be priced based off of an annual
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Development Modification Page 2 of 27
maximum sales price schedule. The applicant is requesting a change to the allowable
sales price that meets the maximum mortgage amounts as described in the Affordable
Housing Manual. This results in a final sales price that is above the required sales price
for purchase by buyers up to 80% AMI. The second is adding a pricing tier to the
Affordable Housing Administrative Manual that prices a 2 bedroom home off of the AMI
for a household size of three instead of two as is currently set out in the Manual.
2. A reduction of $2,000 per year with complete removal after 5 years of the down
payment assistance cash subsidy recapture provision for buyers of affordable homes
pursuant to Article 38.43.160.A.
3. A complete removal of the non-cash subsidy recapture provision for buyers of
affordable homes pursuant to Article 38.43.160.B.
Project Summary
The proposed Planned Unit Development (PUD) modification seeks to revise the previously
approved Lakes at Valley West Phase 3 PUD (Phase 3). PUD relaxations approved in that
project added uses to the existing R-1 district, modified numeric standards of the R-1
district, established an alternate alley standard, and modified block dimensions. Lots 5-12
were approved smaller than standard size in part to support provision of affordable
housing.
After approval of Phase 3 on October 10, 2016, the Commission determined that
requirements for mandatory inclusion of price limited affordable housing apply to future
subdivisions. The developer of Phase 3 is continuing to develop additional phases of the
subdivision. Phases 5 & 6 are subject to the affordable housing requirement.
The applicant proposes to develop Lots 5-12 as price limited affordable housing to meet the
requirements for creation of affordable housing in Phases 5 & 6. As part of their proposed
affordable housing plan they seek relaxations on some of the affordable housing standards.
The site design, architectural design standards, and all other aspects of Phase 3 other than
affordable housing remain as approved originally. The applicant proposal is discussed in
detail under item 21 under Applicable Plan Review Criteria (beginning at pg. 9 of this staff
report).
A PUD is a discretionary approval and the review authority must find that the overall
development is superior to that offered by the basic existing zoning standards. See Section
38.20.030.A.4, BMC. The obligation to show a superior outcome is the responsibility of the
applicant.
Procedural processing requirements for a major modification to an existing PUD include
presentation of the project to the DRB. Due to the limited nature of the requested PUD
modification no issues relating to the scope of the DRB have been identified.
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Development Modification Page 3 of 27
Staff supports approval of the requested relaxation 19. Staff does not support the approval
of requested relaxations 20 and 21. See the analysis beginning on page 9 of the report.
Design Review Board
The Design Review Board (DRB) reviews all PUDs. They recommended approval of the
application at their March 20, 2018 meeting.
Alternatives
1) Recognize the limited scope of the proposed modifications and approve the PUD as
presented by staff with relaxations to Sections 38.43.070 and 38.43.130 to allow an
alternate pricing structure targeted at 80% of area median income and allowed household
size in relation to bedrooms for determining maximum sale price and to retain all other
applicable code provisions.
2) Recommend approval of the PUD with suggested changes after making findings in
support of the suggested changes.
3) Recommend denial of the PUD after making findings in support of the denial.
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Development Modification Page 4 of 27
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 1
Unresolved Issues ............................................................................................................... 1
Project Summary ................................................................................................................. 2
Design Review Board ......................................................................................................... 3
Alternatives ......................................................................................................................... 3
SECTION 1 - MAP SERIES .................................................................................................... 5
SECTION 2 – REQUESTED RELAXATIONS ...................................................................... 7
SECTION 3 - RECOMMENDED CONDITIONS OF APPROVAL ...................................... 8
SECTION 4 - CODE REQUIREMENTS REQUIRING PLAN CORRECTIONS ................. 9
SECTION 5 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 9
SECTION 6 - STAFF ANALYSIS AND FINDINGS ............................................................. 9
Applicable Plan Review Criteria, Section 38.19.100, BMC. ................................................ 9
Applicable Conditional Use Permit Review Criteria, Section 38.19.100, BMC ................. 17
Applicable Planned Unit Development Review Criteria, Section 38.20.090.E, BMC ..... 20
APPENDIX A –PROJECT SITE ZONING AND GROWTH POLICY................................ 24
APPENDIX B – DETAILED PROJECT DESCRIPTION AND BACKGROUND.............. 25
APPENDIX C – NOTICING AND PUBLIC COMMENT ................................................... 25
APPENDIX D - OWNER INFORMATION AND REVIEWING STAFF............................ 25
APPENDIX E –PLANNED UNIT DEVELOPMENT INTENT ........................................... 26
FISCAL EFFECTS ................................................................................................................. 27
ATTACHMENTS ................................................................................................................... 27
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Development Modification Page 5 of 27
SECTION 1 - MAP SERIES
The areas outlined in red in the following image are the lots affected by this application.
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Development Modification Page 6 of 27
Overall Phase 3 Layout
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Development Modification Page 7 of 27
Preliminary Plat Map showing affordable home lots in relation to all lots of Phases 1 through
6. Phases 5-6 are currently undergoing preliminary review.
SECTION 2 – REQUESTED RELAXATIONS
Planned Unit Development Relaxations are included with this application. The applicant
requested relaxations to the following standards. The summary of each relaxation, the
customized zoning district incorporating those relaxations, and the overall reasoning behind
the relaxations is in Section D6 of the PUD submittal. The altered standards are depicted by
lot and described in text in Appendix C of the Design Manual included in the PUD submittal.
Explanatory notes are attached to each section of the municipal code proposed to be altered.
Items 1-18 are a carry-over from the previously approved phases 1 and 2.
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Development Modification Page 8 of 27
Summary List of Relaxations
Code Section Summary of Section
1) 38.08.010.A.2 Intent of R-1 District
2) 38.08.020 Expand Authorized Uses in R-1
3) 38.08.030.A.2 Increase Allowed Lot Coverage and Floor Area
4) 38.08.040.A Reduce Minimum Lot Area
5) 38.08.040.B Reduce Minimum Lot Width
6) 38.08.050.A Reduce Yards
7) 38.08.060 Replace Building Height in R-1 to be the same as R-4
8) 38.22.030 Allow R-1 Accessory Dwelling Units (ADUs) without a Conditional
Use Permit for defined lots
9) 38.23.040.B Allow Increased Block Length
10) 38.23.040.C Allow Smaller Block Width
11) 38.23.040.D.3 Allow Alternate Pedestrian Walk Surface
12) 38.23.040.E Not Require Block Numbering
13) 38.24.060.A Design Standards (length of tangent at intersection)
14) 38.24.060.B Alternate Alley Section to Allow Woonerf
15) 38.23.100.A.2 Reduction to minimum wetland setback
16) 38.23.080.F Increase percentage of front yard allowed for storm water facility
17) 38.25.010.A.5 Allow parking in designated side yards for common parking areas
18) 38.21.060.A.4 Increase the allowed encroachment for a covered deck in front
Yard
19) 38.43.070.A.1&C To provide an alternate calculation for the price point for Lower-
Priced Homes and home occupants compared to number of bedrooms.
20) 38.43.160.A To revise the recapture provision for cash subsidy to the buyer as
down payment assistance from the City of Bozeman with repayment reduced by
$2,000 per year and no repayment required after 5 years.
21) 38.43.160.B To revise the requirements related to non-cash subsidy recapture
and completely remove any recapture from the buyer for the future sale of the
affordable home.
SECTION 3 - RECOMMENDED CONDITIONS OF APPROVAL
Please note that these conditions are in addition to any required code provisions identified
in this report. These conditions are specific to the planned unit development. Additional
conditions may apply to the subdivision of the property being processed concurrently with
this planned unit development.
Recommended Conditions of Approval:
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Development Modification Page 9 of 27
No conditions of approval have been identified.
SECTION 4 - CODE REQUIREMENTS REQUIRING PLAN CORRECTIONS
A. None are identified at this time. Future processing of affordable housing sales will follow the
procedures as existing or as altered by the Commission with this application.
SECTION 5 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for residential planned unit developments
approval with conditions is recommended by staff to the Design Review Board (DRB).
The DRB forwards a recommendation of approval as recommended by staff to the City
Commission for consideration and action.
The City Commission is scheduled to consider the proposal on April 9, 2018.
SECTION 6 - STAFF ANALYSIS AND FINDINGS
Analysis and resulting recommendations are based on the entirety of the application
materials, municipal codes, standards, and plans, public comment, and all other materials
available during the review period. Collectively this information is the record of the review.
The analysis in this report is a summary of the completed review.
Applicable Plan Review Criteria, Section 38.19.100, BMC.
The applicant is advised that unmet code provisions, or code provisions that are not
specifically listed as conditions of approval, does not, in any way, create a waiver or other
relaxation of the lawful requirements of the Bozeman Municipal Code or State law.
In considering applications for plan approval under this title, the advisory boards and City
Commission shall consider the following:
1. Conformance to and consistency with the City’s adopted growth policy
This project is proposing residential uses within a residentially planned area. No conflicts
have been identified with the growth policy future land use designation or goals and
policies. The detail of the applications are at a level of detail not directly established by the
growth policy.
2. Conformance to this chapter, including the cessation of any current violations
There are no known violations on the property. The project proposes several alternative
standards for development within the PUD relating to affordable housing. Analysis of these
alternatives is under criteria 21 of this staff report.
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Development Modification Page 10 of 27
3. Conformance with all other applicable laws, ordinances, and regulations
Applications for design and compliance with building permits and related processes are
future events. Compliance will be required as the project advances. No changes to public
utilities or open spaces approved with earlier Commission action will be required.
4. Relationship of site plan elements to conditions both on and off the property
No conflicts have been identified at this time. The approved site layout will continue.
5. The impact of the proposal on the existing and anticipated traffic and parking
conditions
Adequate parking appears to be provided. Parking for each home will be verified when a
building permit is reviewed.
6. Pedestrian and vehicular ingress and egress
Adequate circulation is provided with the overall Phase 3 design. No changes to pedestrian
and vehicular facilities are proposed. The street network provides adequate access and
circulation.
7. Landscaping, including the enhancement of buildings, the appearance of vehicular
use, open space, and pedestrian areas, and the preservation or replacement of natural
vegetation
The pedestrian trail and street networks and open space landscaping remain as initially
approved with Phase 3. The landscaping plan at that time demonstrated compliance with
the landscaping requirements of Article 38.26.
8. Open space
The project includes several open spaces. The required amount of open space has been
provided for each home on the individual lots. Various trails and other open space
improvements have been constructed within the open spaces. The project has provided
open space to meet its PUD performance requirements. See analysis below under the PUD
review criteria.
9. Building location and height
The originally approved PUD for Phase 3 included various relaxations to building setbacks
and height requirements. No changes to those relaxations is requested with this
application.
10. Setbacks
Relaxation No. 18 approved earlier modifies the setbacks for covered decks. No change is
proposed with this application.
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Development Modification Page 11 of 27
11. Lighting
Lighting has already been installed along Durston Road and appropriate internal
intersections. No change to installed lighting is proposed.
12. Provisions for utilities, including efficient public services and facilities
Utilities have already been installed along Durston Road and appropriate internal locations.
No change to installed utilities is proposed.
13. Site surface drainage
Drainage is placed within appropriate locations and is adequate to need. Individual lots will
be graded during home construction.
14. Loading and unloading areas
None are proposed.
15. Grading
The site has little natural contours. Two large artificial lakes already exist on the site which
provide the greatest topographic change. No substantial grading is proposed with this
application. Minor site grading will occur with development of each individual lot.
16. Signage
None is proposed at this time.
17. Screening
No proposed element of the project requires screening. Existing design guidelines for the
development address screening for individual lot development.
18. Overlay district provisions
Not applicable to this application.
19. Other related matters, including relevant comment from affected parties
No public comment has been received at this time.
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Development Modification Page 12 of 27
20. If the development includes multiple lots that are interdependent for circulation
or other means of addressing requirement of this title, whether the lots are either:
Configured so that the sale of individual lots will not alter the approved configuration
or use of the property or cause the development to become nonconforming
or
The subject of reciprocal and perpetual easements or other agreements to which the
City is a party so that the sale of individual lots will not cause one or more elements of the
development to become nonconforming.
Not applicable. The affected lots were created with the Phase 3 subdivision.
21. Compliance with article 38.43 of the Bozeman Municipal Code.
The applicant is requesting relaxations that include the following three points:
Point 1 - To provide an alternate calculation for the price point for Lower-Priced Homes and
home occupants compared to number of bedrooms.
Point 2 - To revise the recapture provision for cash subsidy to the buyer as down payment
assistance from the City of Bozeman with repayment reduced by $2,000 per year and no
repayment required after 5 years.
Point 3 - To revise the requirements related to non-cash subsidy recapture and completely
remove any recapture from the buyer for the future sale of the affordable home.
We address each point in turn.
Point 1 - To provide an alternate calculation for the price point for Lower-Priced Homes
and home occupants compared to number of bedrooms.
The applicant must provide eight Lower-Priced Homes. The applicant proposes the
following:
• Four homes (3 bedroom, 2 bath) (sales price of $225,793):
o Mortgage priced at 80% AMI for a family of four;
o Add $10,000 down payment assistance from City; and
o Add $1,000 buyer contribution.
• Three homes (2 bedroom, 2 bath) (sales price of $199,500):
o Mortgage priced at 80% AMI for a family of three;
o Add $10,000 down payment assistance from City; and
o Add $1,000 buyer contribution.
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• One home (2 bedroom, 1 bath) (sales price of $180,911):
o Mortgage priced at 80% AMI for a family of two;
o Add $10,000 down payment assistance from City; and
o Add $1,000 buyer contribution.
First, the applicant desires to have the required Lower-Priced Homes for phase 5 & 6
approved pursuant to 80% Area Median Income (AMI) rather than 70% AMI. Second, the
applicant requests the pricing structure for the three homes with two bedrooms and two
baths to use a calculation of AMI for a three-person household where currently the AHO and
the Manual do not provide for pricing for a three-person household (pricing provided only
for one-person, two-person and four-person households). Based on the applicant’s proposal
the maximum sales price for a three-person household at 80% AMI would be $188,500. Next,
the applicant proposes to add to the calculated maximum sales price the down payment
contribution from the City as well as a $1,000 contribution from the buyer.
The result of the above is the sales price proposed by the applicant for all eight homes
exceed the sales price calculated from the AHO; thus, the request to relax the AHO’s
requirements through this PUD amendment.
As background, pursuant to the AHO, the pricing structure for the “Lower-Priced” Homes is
calculated based on 70% AMI for a family size that is matched with a set number of
bedrooms. See table on pg. 12, below.
Next, section 38.43.070 of Bozeman Municipal Code provides the formula for pricing Lower-
Price Affordable Homes and Moderate-Priced Affordable Homes:
Sec. 38.43.070. - Pricing of affordable homes.
A. The city will calculate on an annual basis the maximum sales price a developer may
charge for each category of affordable home required by this article as follows:
1. Lower-priced homes. The sales price for lower-priced homes affordable to buyer-
households with incomes from 65 percent to 80 percent of AMI will be calculated
based on a household income of 70 percent of AMI.
2. Moderate-priced homes. The sales price for moderate-priced homes affordable to
buyer-households with incomes from 81 percent to 100 percent of AMI will be
calculated based on a household income of 90 percent of AMI.
This provision in the AHO indicates the pricing for Lower-Priced Homes is based on a
household income of 70% of AMI.
However, the Affordable Housing Administrative Manual (the “Manual”) adopted by the City
Commission by resolution creates a second tier of pricing for Lower-Priced Homes based on
80% of AMI:
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Development Modification Page 14 of 27
“Schedule for AHO Maximum Home Price
The AHO establishes pricing tiers for Affordable Homes (Lower-Priced Homes and
Moderate- Priced Homes). The pricing tier for Lower-Priced Homes includes a category
for an AHO Maximum Price calculated based on household income of 70% AM, a
category for an AHO Maximum Price calculated based on household income of 80% AMI,
and a category for and AHO Maximum Price calculated based on household income of
90% AMI. The city will calculate the Maximum Home Prices for each category on an
annual basis using the formulas detailed below and also contained in Exhibit C: Template
for Maximum Home Price Schedule. The city will publish the Maximum Home Price
Schedule for the three price categories within 30 calendar days of HUD's annual release
of income limits by household size derived from an annual recalculation of the Area
Median Income for Gallatin County, and become effective the date of publication. The
Director of Community Development is authorized to establish and publish this schedule.”
(Emphasis added) (NOTE: the categorization of a pricing tier at 90% AMI included in the
Manual incorrectly refers to Lower-Priced Homes; according to the AHO this tier is only
available for Moderate-Priced Homes).
According to the Manual, a category for an AHO Maximum price at the 80% AMI would meet
the standards and requirements of the AHO for Lower-Priced Homes. Correspondingly, the
current pricing structure for “Lower-Priced” homes as adopted by the Director of Community
Development pursuant to the requirements of the AHO and the Manual includes the 80%
AMI price tier as is shown in the following chart:
2017 Affordable Homes Pricing Chart
Allowed Sales Prices
Studio
(AMI for 1-
person
household)
1-2 Bedroom
(AMI for 2-
person
household)
3+ Bedroom
(AMI for 4-
person
household)
Lower-Priced Home at 70% AMI $128,092 $143,622 $181,982
Lower-Priced Home at 80% AMI $151,119 $169,911 $214,793
Moderate-Priced Home at 90%
AMI
$174,147 $188,108 $246,421
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Clearly, the Manual provides a pricing tier for Lower-Priced Homes at 80%.
The second portion of the applicant’s request applies only to the 2 bedroom/2 bathroom
houses. To obtain the applicant’s desired sales price for the 2 bedroom/2 bath houses, the
applicant requests to add a new category of AMI for these 2-bedroom/2-bath houses using
AMI for a three-person household. This category was not included in the AHO or the
Manual (see the below chart adopted in the Manual). The applicant suggests the maximum
mortgage for a Lower-Priced 2 bedroom/2 bath homes at 80% AMI for a three-person
household is $188,500.
The Administrative Manual Section 3, Page 8 provides the following chart for home size and
AMI:
Home Size AMI Used:
Zero-Bedroom/Studio One-person household
One-Bedroom Two-person household
Two-Bedroom Two-person household
Three-Bedroom or larger Four-Person household
For all three housing types provided (1 bedroom, 2 bedroom, and 3 bedroom), the applicant
bases the proposed sales price on a couple factors. First, the applicant is calculating the
sales price by looking at the maximum allowable monthly mortgage. Apart from the request
to add the 3 person AMI for the 2 bedroom 2 bath homes this approach is consistent with
the AHO and the Manual. Then, to get the actual affordable sales price, as stated above, the
applicant adds the City’s down payment assistance and a $1,000 contribution from the
buyer. The applicant suggests this is consistent with the Manual. For example, for the four
homes with 3 bedrooms, the applicant proposes to use $214,793 as the sales price allowed
based on the maximum monthly mortgage. While this number matches the amount in the
City’s current schedule, the applicant then adds $11,000 in down payment assistance
($10,000 from the City and $1,000 from the buyer) resulting in a proposed sales price of
$225,793.
To understand the relationship between maximum affordable mortgage and maximum
sales price we provide the following. In the Exhibits to the Manual, Bozeman Housing
Affordability Worksheet, section 3h, gives a maximum affordable mortgage amount for
buyers in the different AMI categories. The applicant used the maximum affordable monthly
mortgage amount to determine the maximum sales price that is affordable for buyers at
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80% AMI; which is clearly above the AHO’s required threshold for pricing of “Lower-Priced”
Homes at 70% AMI but matches the pricing for Lower-Priced Homes at 80% AMI. Based on
this worksheet created by the City, the applicant priced the homes by using the maximum
allowable mortgage and not the actual maximum sales price established by the City.
Maximum affordable monthly mortgage includes real estate taxes, homeowners insurance,
private mortgage insurance, homeowner association fees and principal and interest
payments on a mortgage based on 4.5% interest rate.
The result is the sale prices requested by the applicant are higher than would be based
solely on the formula provided in the AHO. Again, the applicant suggests the City should be
basing the actual sales price on a calculated affordable mortgage; essentially, the applicant
suggests the affordability of a home should be based on what the buyers can pay in a
mortgage notwithstanding any down payment assistance.
Considering the above, Staff nevertheless recognizes the applicant relied upon City
prepared materials for the affordable housing program and that the Manual does not
recognize the opportunity to calculate maximum mortgage or sales price based on three-
person AMI and, through this PUD process, supports the applicant’s proposal with respect
to pricing. .
Through working with HRDC, the applicant secured qualified buyers between the 60 to 80%
AMI level for the first 3 homes based on the pricing structure that is provided for in the
applicants Affordable Housing Plan. These are the first Affordable Homes to be sited and
built through the mandated Affordable Housing Ordinance and therefore are helping to
work through the current ordinance to develop an effective and efficient process for the
city, city’s agent and developers/builders. Staff recommends the commission approve the
relaxation to 38.43.070.A.1 and 38.43.070.C pricing structure for the 8 affordable homes
located in this Planned Unit Development to meet the requirements of Lower-Priced
Affordable Homes in phases 5 & 6. This recommendation is specific to this PUD application
and is not a precedent for other applications.
Point 2 - To revise the recapture provision for cash subsidy to the buyer as down payment
assistance from the City of Bozeman with repayment reduced by $2,000 per year and no
repayment required after 5 years.
Buyers that receive a cash subsidy from the city in the form of down payment assistance of
up to $10,000 are required to repay any cash subsidies that are realized through the
purchase of an affordable home at the time of subsequent resale, refinance or non-
compliance. This repayment is to be used by the city to replenish the Affordable Housing
Fund for future incentives; including down payment assistance. The applicant is requesting
a revision to this provision to have a graduated repayment reduction of $2,000 per year
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with complete removal after 5 years. The fiscal effect for the city would be a loss of
$10,000 per affordable home from the Affordable Housing Program Fund. Altering this
requirement will benefit one homebuyer and negatively affect future buyers who could
have benefited from recycled funds. It is in the best interest of the city to follow along with
the ordinance to develop a revolving affordable housing fund. Staff recommends that the
commission deny the relaxation to 38.43.160.A based off of the need to develop a revolving
Affordable Housing Fund through subsidy recapture.
Point 3 - To revise the requirements related to non-cash subsidy recapture and completely
remove any recapture from the buyer for the future sale of the affordable home.
Buyers of homes through the City of Bozeman’s Affordable Housing program are required to
repay any non-cash subsidies that are realized through the purchase of an affordable home
on subsequent resale, refinance or noncompliance. This non-cash subsidy is the difference
between 98% of the appraised value of the home and the affordable sale price and is due
upon subsequent sale or refinance of the Affordable Home. The applicant is requesting
removal of this subsidy recapture completely. The fiscal effect for the city will be an
estimated value of approximately $14,000 per affordable home. These funds are needed to
generate a revolving affordable housing fund that can be used for future affordable housing
program in the City of Bozeman. Altering this requirement will benefit one homebuyer and
negatively affect future buyers who could have benefited from recycled funds. Staff
recommends that the commission deny the relaxation to 38.43.160.B based off of the need
to develop a revolving Affordable Housing Fund through subsidy recapture.
22. Phasing of development
Phase 3 has final approval and the plat has been filed. This project is not dependent on any
other phase of the development but is being proposed to the benefit of Phase 5 & 6 of the
Lakes at Valley West.
Applicable Conditional Use Permit Review Criteria, Section 38.19.100, BMC
E. In addition to the review criteria of section 38.19.100, the review authority shall, in
approving a conditional use permit, determine favorably as follows:
1. That the site for the proposed use is adequate in size and topography to
accommodate such use, and all yards, spaces, walls and fences, parking, loading and
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landscaping are adequate to properly relate such use with the land and uses in the
vicinity;
The individual lots have been determined to be adequate for development as individual
townhomes. . The existing lakes have been used as design features and are integrated into
the development. Landscaped area are coordinated with adjacent property and within the
proposed development. Parking is provided on each lot and along the public streets. Special
areas are designated along the Woonerf.
The previously approved relaxations allow a tighter development pattern. The resulting
designs for homes require substantial care to conform to the Design Manual. Appropriate
designs have been created.
2. That the proposed use will have no material adverse effect upon the abutting
property. Persons objecting to the recommendations of review bodies carry the burden of
proof;
The use as townhomes is consistent with the general character of the area as housing. No
adverse impacts to abutting properties have been identified.
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3. That any additional conditions stated in the approval are deemed necessary to
protect the public health, safety and general welfare. Such conditions may include, but
are not limited to:
a. Regulation of use;
b. Special yards, spaces and buffers;
c. Special fences, solid fences and walls;
d. Surfacing of parking areas;
e. Requiring street, service road or alley dedications and improvements or appropriate
bonds;
f. Regulation of points of vehicular ingress and egress;
g. Regulation of signs;
h. Requiring maintenance of the grounds;
i. Regulation of noise, vibrations and odors;
j. Regulation of hours for certain activities;
k. Time period within which the proposed use shall be developed;
l. Duration of use;
m. Requiring the dedication of access rights; and
n. Other such conditions as will make possible the development of the city in an
orderly and efficient manner.
No additional conditions related to the DRC scope of review have been identified.
F. In addition to all other conditions, the following general requirements apply to
every conditional use permit granted:
1. That the right to a use and occupancy permit shall be contingent upon the
fulfillment of all general and special conditions imposed by the conditional use permit
procedure; and
2. That all of the conditions shall constitute restrictions running with the land use,
shall apply and be adhered to by the owner of the land, successors or assigns, shall be
binding upon the owner of the land, his successors or assigns, shall be consented to in
writing, and shall be recorded as such with the county clerk and recorder's office by the
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property owner prior to the issuance of any building permits, final plan approval or
commencement of the conditional use.
The necessary recording of documents occurred after original approval of Phase 3. No
additional recording is required if no additional conditions are imposed.
Applicable Planned Unit Development Review Criteria, Section 38.20.090.E, BMC
Sections D6 and D16 of the application presents the applicant’s response to these criteria.
In addition to the criteria for all site plan and conditional use reviews, the following criteria
will be used in evaluating all planned unit development applications.
a. All development. All land uses within a proposed planned unit development shall be
reviewed against, and comply with, the applicable objectives and criteria of the
mandatory "all development" group.
(1) Does the development comply with all city design standards, requirements and
specifications for the following services: water supply, trails/walks/bike ways, sanitary
supply, irrigation companies, fire protection, electricity, flood hazard areas, natural gas,
telephone, storm drainage, cable television, and streets?
Except for those standards proposed for relaxation it appears the application conforms.
(2) Does the project preserve or replace existing natural vegetation?
The site has been substantially disturbed by previous development. There are some existing
wetland areas within proposed open spaces which will remain largely undisturbed except
for installation of pedestrian trails. There will be substantial placement of new vegetation
within the open spaces and parks. Wetland areas in the open spaces were previously
reviewed and approved with a 404 permit. The permit has been closed. The project
provides a buffer along Aajker Creek which will lessen disturbance of that vegetation.
(3) Are the elements of the site plan (e.g., buildings, circulation, open space and landscaping,
etc.) designed and arranged to produce an efficient, functionally organized and cohesive
planned unit development?
Yes, the proposal appears cohesive and has a variety of coordinating elements ranging from
design standards to physical street configurations.
(4) Does the design and arrangement of elements of the site plan (e.g., building
construction, orientation, and placement; transportation networks; selection and placement
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of landscape materials; and/or use of renewable energy sources; etc.) contribute to the
overall reduction of energy use by the project?
The project has lot layouts which are favorable to installation of solar systems. Such systems
are not proposed at this time. Individual site designs have not been completed. The site will
be integrated in to the existing and developing pedestrian and bicycle network which will
enable travel without motor vehicles. The site is on the western edge of the City at this time
and there are few services or employment locations in near proximity at this time.
(5) Are the elements of the site plan (e.g., buildings, circulation, open space and landscaping,
etc.) designed and arranged to maximize the privacy by the residents of the project?
The site designs for individual lots are not known at this time. They will be designed
individually. The Design Manual provides guidelines in this area which appear to address
this criterion.
(6) Park land. Does the design and arrangement of buildings and open space areas
contribute to the overall aesthetic quality of the site configuration, and has the area of park
land or open space been provided for each proposed dwelling as required by section
38.27.020.
The project has a surplus balance of parkland from prior dedications. 2.97 acres of parkland
is required and the applicant is propose that 7.23 acres of parkland is dedicated with these
Phases. The application for Phases 5 & 6 shows a parkland surplus for the overall Lakes at
Valley West development. The standard has been met.
(7) Performance. All PUDs shall earn at least 20 performance points.
With a PUD, Section 38.20.090.E.2.a.7 requires at least 20 performance points for the
subject property. There are 11 options provided in the UDC to meet this requirement.
Points can be met using any combination of on-site and off-site open space or other options
listed in the code. The Preliminary PUD must specify how the performance points are being
met. Phase 3 met this requirement with dedication of open space with public access.
Open space provisions for phased PUD developments: If a project is to be built in phases,
each phase shall include an appropriate share of the proposed recreational, open space,
affordable housing and other site and building amenities of the entire development used to
meet the requirements of section 38.20.090.E.2. The appropriate share of the amenities for
each phase shall be determined for each specific project at the time of preliminary approval
and shall not be based solely upon a proportional or equal share for the entire site.
The Lakes at Valley West Phase 5 and 6 PUD now under separate review proposes to satisfy
the performance requirement solely with additional open space. The application satisfies
the requirement. Public access to the open space will be provided by easement.
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A total of 20 performance points is the minimum requirement. A point is earned for each
percent of project area provided as open space and 1.25 points is earned is public access to
the open area provided. The overall Lakes at Valley West development will provide 7.7% of
project area for public parks over and above the area required to meet the requirements of
38.27. The project will provide 23% of the overall project area as open space with a public
access easement. Collectively, these two actions represent a substantial excess of
performance points beyond the required 20 points.
A PUD may also earn points from affordable housing. This can only earned for going over
and above the affordable housing required by 38.43, BMC. Although this application does
seek approval for affordable housing it is to be used to meet the minimum obligation of
Phase 5&6 and therefore does not earn performance points from affordable housing.
However, this application is the first development using the required affordable housing
provisions of 38.43, BMC. This is a learning process for the City as adopted regulations are
applied for the first time. The City has learned several things through this process that will
aid in program improvements and refinement.
(8) Is the development being properly integrated into development and circulation patterns
of adjacent and nearby neighborhoods so that this development will not become an isolated
"pad" to adjoining development?
The overall property is well integrated into the arterial and collector system. Local streets
provide additional connectivity. The two lakes and associated stream and wetland areas are
substantial barriers which limit connectivity. Trail connections have been placed to improve
connectivity to Bronken Park and its trails. This current phase continues the trail networks.
Approval of the additional relaxations requested with the modification to Phase 3 will not
alter these patterns.
b. Residential. Planned unit developments in residential areas (R-S, R-1, R-2, R-3, R-4,
RMH and R-O zoning districts) may include a variety of housing types designed to enhance
the natural environmental, conserve energy, recognize, and to the maximum extent
possible, preserve and promote the unique character of neighborhoods, with provisions
for a mix of limited commercial development. For purposes of this section, "limited
commercial development" means uses listed in the B-1 neighborhood service district
(article 10 of this chapter), within the parameters set forth below. All uses within the PUD
must be sited and designed such that the activities present will not detrimentally affect
the adjacent residential neighborhood. The permitted number of residential dwelling
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units shall be determined by the provision of and proximity to public services and subject
to the following limitations:
(1) On a net acreage basis, is the average residential density in the project (calculated for
residential portion of the site only) consistent with the development densities set forth in the
land use guidelines of the city growth policy?
The property is planned a Residential and zoned as R-1. The R-1 district has a standard
minimum lot size of 5,000 sq. ft. This provides a base net density of 8.7 dwellings per acre.
Appendix A of this report describes the range of planned residential densities of between 6
and 32 dwellings per acre in Bozeman. Approved density of Phase 3 complies with the
growth policy and this standard. No change in density will result from this application.
(2) Does the project provide for private outdoor areas (e.g., private yards, patios and
balconies, etc.) for use by the residents and employees of the project which are sufficient in
size and have adequate light, sun, ventilation, privacy and convenient access to the
household or commercial units they are intended to serve?
Private spaces are provided on each lot. The central open spaces provide additional light
and ventilations to adjacent lots.
(3) Does the project provide for outdoor areas for use by persons living and working in the
development for active or passive recreational activities?
Yes, private open spaces and dedicated park land are provided.
(4) If the project is proposing a residential density bonus as described below, does it include
a variety of housing types and styles designed to address community wide issues of
affordability and diversity of housing stock?
The project includes a diversity of housing types. Relaxation 2 allows additional housing
types within the R-1 zoning district and Relaxation 8 enables inclusion of accessory dwelling
units without a conditional use permit on specific lots. The proposed relaxations for
affordable housing do not alter the approved density in Phase 3.
(5) Is the overall project designed to enhance the natural environment, conserve energy and
to provide efficient public services and facilities?
Yes. The approved Design Manual provides for sustainability elements. The site has been
annexed for many years and is served by municipal services. Additional on-site extensions of
services were provided as is expected with new development.
(6) Residential density bonus. If the project is proposing a residential density bonus (30
percent maximum) above the residential density of the zoning district within which the
project is located and which is set forth in article 8 of this chapter, does the proposed project
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exceed the established regulatory design standards (such as for setbacks, off-street parking,
open space, etc.) and ensure compatibility with adjacent neighborhood development? The
number of dwelling units obtained by the density bonus shall be determined by dividing the
lot area required for the dwelling unit type by one plus the percentage of density bonus
sought. The minimum lot area per dwelling obtained by this calculation shall be provided
within the project. Those dwellings subject to chapter 10, article 8, shall be excluded in the
base density upon which the density bonus is calculated.
Approved density complies with the growth policy and this standard as applied to phase 3.
(7) Limited commercial. If limited commercial development, as defined above, is proposed
within the project, is less than 20 percent of the gross area of the PUD designated to be used
for offices or neighborhood service activities not ordinarily allowed in the particular
residential zoning district?
No limited commercial is proposed.
(8) Does the overall PUD recognize and, to the maximum extent possible, preserve and
promote the unique character of neighborhoods in the surrounding area?
Yes, the approved Phase 3 integrates with the neighborhood character.
APPENDIX A –PROJECT SITE ZONING AND GROWTH POLICY
Zoning Designation and Land Uses: The subject property is zoned “R-1” (Residential Single
Household Low Density District). The intent of the R-1 residential single-household low
density district is to provide for primarily single-household residential development and
related uses within the city at urban densities, and to provide for such community facilities
and services as will serve the area's residents while respecting the residential character and
quality of the area.
Adopted Growth Policy Designation: The Future Land Use Map of the Bozeman
Community Plan designates the subject property to develop as “Residential.” The
“Residential” classification designates places where the primary activity is urban density
dwellings. Other uses which complement residences are also acceptable such as parks, low
intensity home based occupations, fire stations, churches, and schools. High density
residential areas should be established in close proximity to commercial centers to facilitate
the provision of services and employment opportunities to persons without requiring the
use of an automobile. Implementation of this category by residential zoning should provide
for and coordinate intensive residential uses in proximity to commercial centers. The
residential designation indicates that it is expected that development will occur within
municipal boundaries, which may require annexation prior to development.
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The dwelling unit density expected within this classification varies between 6 and 32
dwellings per net acre. A higher density may be considered in some locations and
circumstances. A variety of housing types can be blended to achieve the desired density.
Large areas of single type housing are discouraged. In limited instances the strong presence
of constraints and natural features, such as floodplains, may cause an area to be designated
for development at a lower density than normally expected within this category. All
residential housing should be arranged with consideration of compatibility with adjacent
development, natural constraints, such as watercourses or steep slopes, and in a fashion
which advances the overall goals of the Bozeman growth policy. The residential designation
is intended to provide the primary locations for additional housing within the planning area.
APPENDIX B – DETAILED PROJECT DESCRIPTION AND BACKGROUND
The Lakes at Valley West Planned Unit Development proposes to modify the existing Valley
West development. The developed portion of that project exists east of Cottonwood Road.
The original Valley West development included Bronken Park and the Baxter Creek Natural
Area. This property which is the subject of the current application has been physically
altered over time to accommodate two lakes and adjacent wetlands that were required as
wetland mitigation area for the phases of Valley West east of Cottonwood Road.
This area has always been a planned phase of Valley West, but the approved PUD design
has changed over time. Phases 5 and 6 are the final phases of the Lakes at Valley West
Subdivision. A total in all phases of 65 acres with 215 residential lots and 246 dwelling units
make up the subdivision.
The Lakes at Valley West strives to create a unique pocket neighborhood with small lots and
alley (woonerf) access. A detailed Design Manual has been prepared. The first three phases
have completed review and are platted. Phase 4 is in the process of final plat. Home
construction is well underway in all platted phases. The modification to Phase 3 will provide
a specific price limited housing component.
APPENDIX C – NOTICING AND PUBLIC COMMENT
Noticing has been provided. Notice was provided at least 15 and not more than 45 days
prior to the City Commission public hearing.
APPENDIX D - OWNER INFORMATION AND REVIEWING STAFF
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Owner: The Lakes at Valley West, Bozeman, Two, LLC, 2880 Technology Blvd., Bozeman MT
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Applicant: Kilday & Stratton, Inc., 2880 Technology Blvd., Bozeman MT 59718
Report By: Chris Saunders, Community Development Manager
APPENDIX E –PLANNED UNIT DEVELOPMENT INTENT
Sec. 38.20.010. Intent.
A. It is the intent of the city through the use of the planned unit development (PUD)
concept, to promote maximum flexibility and innovation in the development of land and
the design of development projects within the city. Specifically, with regard to the
improvement and protection of the public health, safety and general welfare, it shall be the
intent of this chapter to promote the city's pursuit of the following community objectives:
1. To ensure that future growth and development occurring within the city is in accord with the
city's adopted growth policy, its specific elements, and its goals, objectives and policies;
2. To allow opportunities for innovations in land development and redevelopment so that
greater opportunities for high quality housing, recreation, shopping and employment may
extend to all citizens of the city area;
3. To foster the safe, efficient and economic use of land and transportation and other public
facilities;
4. To ensure adequate provision of public services such as water, sewer, electricity, open space
and public parks;
5. To avoid inappropriate development of lands and to provide adequate drainage, water
quality and reduction of flood damage;
6. To encourage patterns of development which decrease automobile travel and encourage trip
consolidation, thereby reducing traffic congestion and degradation of the existing air
quality;
7. To promote the use of bicycles and walking as effective modes of transportation;
8. To reduce energy consumption and demand;
9. To minimize adverse environmental impacts of development and to protect special features
of the geography;
10. To improve the design, quality and character of new development;
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11. To encourage development of vacant properties within developed areas;
12. To protect existing neighborhoods from the harmful encroachment of incompatible
developments;
13. To promote logical development patterns of residential, commercial, office and industrial
uses that will mutually benefit the developer, the neighborhood and the community as a
whole;
14. To promote the efficient use of land resources, full use of urban services, mixed uses,
transportation options, and detailed and human-scale design; and
15. To meet the purposes established in section 38.01.040
FISCAL EFFECTS
Approval of this application will enable certain lots to qualify for affordable housing
expenditures. The affordable housing program has previously been approved and budgeted by
the City Commission. Depending on the decisions made on this application affordable housing
funds may or may not be recouped and recycled for future affordable housing projects.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715.
Application materials
City Commission packet materials from November 13, 2017
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Commission Memorandum
REPORT TO: Mayor and City Commission
FROM: Chris Saunders, Community Development Manager Martin Matsen, Community Development Director
SUBJECT: Affordable Housing impact fee support - The Lakes at Valley West
Subdivision
MEETING DATE: November 13, 2017
AGENDA ITEM TYPE: Consent
RECOMMENDATION: That the City Commission approve impact fee support from the affordable housing fund for up to four lots in the Lakes at Valley West subdivision dependent on proof of sale to an income qualified household with appropriate recapture of housing support per
the affordable housing administrative manual.
RECOMMENDED MOTION LANGUAGE (if moved to Action Agenda): Having reviewed
and considered the staff memorandum, application materials, public comment, and all the information presented, I hereby move to approve impact fee support from the affordable housing
fund for up to four lots in the Lakes at Valley West subdivision dependent on proof of sale to an
income qualified household with appropriate recapture of housing support per the affordable
housing administrative manual.
BACKGROUND: Four phases of the Lakes at Valley West Subdivision (LVWS) were platted prior to the effective date of the affordable housing requirements in Article 38.43, BMC. The
LVWS project includes a mix of housing types and lot sizes. Providing options for more affordable
housing has been an argument in application and review of planned unit development for the
LVWS.
There are two future phases remaining in LVWS where compulsory affordable housing will apply. The owners of LVWS wish to begin construction of qualifying affordable homes for sale to
qualifying households in the earlier phases which have received final plat. These homes will be
counted towards the obligation for phases 5 and 6. They are working with HRDC to identify
qualifying persons and have identified candidates. They have submitted building permits for four
homes. Impact fees are the same for all four homes. The amount due for each home is listed under Fiscal Effects.
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The four properties for which impact fee support is requested are 5583, 5575, 5567, and 5557
Arnhem Way. Financial support for affordable housing is authorized under Sections 2.06.1700.H
and 38.43.040, BMC. Under the provisions of 38.43.040 for incentives and 38.43.160 recapture of
subsidies the down payment assistance and impact fee support is required to be repaid on sale of the property. The necessary agreement will be recorded with the sale. The affordable housing administrative manual describes the necessary agreements.
The CAHAB reviewed this proposal and recommended approval of the funding.
UNRESOLVED ISSUES: None identified.
ALTERNATIVES: None suggested or proposed.
FISCAL EFFECTS:
Fire Impact Fee $178.33
Sewer Impact Fee $673.15
Street Impact-Gen $2,932.39
Water Impact Fee $1,298.02
Total impact fees for all four homes is $20,327.56. Upon sale, the fees will be repaid to the City. The current fund balance for the affordable housing fund is $476,872. The City appropriated
200,000 in the current fiscal year for support of affordable housing.
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Report compiled on: November 6, 2017
Attachments: Request for Impact fees
Floor plans and elevations
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