HomeMy WebLinkAbout12-17-18 Public Comment - K. Thane - West Winds Affordable Housing PlanFrom:Kevin Thane
To:Agenda
Subject:Comment on West Winds Affordable Housing Plan
Date:Monday, December 17, 2018 2:06:43 PM
I am concerned that the reason for the recommendation by CAHAB that the West
Winds Subdivision be denied is misstated in the packet being presented to the
Commission for consideration at the December 17th meeting. The packet information
on page 385 states:
CAHAB recommended the denial of the Affordable Housing Plan on October 10,
2018. The denial is based off of the plan not meeting Section 38.380.090 Minimum
design and construction standards for affordable homes with the exact construction of
the number of homes as estimated in the plan.
The reason for the CAHAB recommendation for denial was that the homes proposed
did not have a mix of bedrooms per unit as similar as possible (given rounding of
numbers) to the mix of bedrooms per unit of the market-rate homes in the
development, as required by 38.380.090.A.
Page 384 of the Commission packet mixes the selling price of a 2 bedroom lower
priced affordable home with the Cash-in-Lieu rate of a 3 bedroom lower priced
affordable unit and leaves the thought that somehow the claimed 2.8 unit overbuild of
2 bedroom units compensates for not building the number of 3 bedroom houses
required by the ordinance.
In review:
The ordinance requires that for this development, 7.2 lower priced affordable units
must be built and of those 7.2 units, 3.48 should be 2 bedroom and 3.71 should be 3
bedroom. The plan indicates that six 2 bedroom lower priced affordable units will be
built and that Cash-in-Lieu will be paid at the 3+ bedroom rate for 1.2 units. This
means that of the total 7.2 units there still needs to be compensation for the 2.51
three bedroom units that are not being built and have not had any Cash-in-Lieu
contributed for their absence. To solve this dilemma, the difference in the Cash-in
Lieu for a 3 Bedroom unit should be subtracted from the Cash-in-Lieu for a 2
Bedroom unit and that amount times 2.51 should be contributed by the developer to
the Affordable Housing Fund, in addition to the $117,467.00 required for the 1.2 units
not being built.
1 to 2 Bedroom Cash-
in-lieu amount $55,453.00
3+ bedroom Cash-in-
lieu amount $97,889.00
Difference $42,436.00
Units needed to bring
ratio of units with 3
bedrooms into
compliance
2.51
Cash-in-lieu needed to
compensate for
building all 2 bedroom
units
$106,514.36
Cash-in-lieu needed to
compensate for not
building 1.2 units $117,467.00
Total Cash-in-lieu
required $223,981.36
Kevin Thane
3432 S 29th Ave
Bozeman