HomeMy WebLinkAbout18- Affordable Housing Agreement - Islands, LLC - West Winds SW Subdivision J-640
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Charlotte Mills - Gallatin County, MT misc
98.0
Inter-office Original to: �I'I IN
of Bozeman
City Clerk
PO Box 1230 PLATTED L-
Bozeman MT 59771-1230
AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT made and entered into this 28th day of December 2018, by and between
the CITY OF BOZEMAN, a self-governing municipal corporation organized and existing under its
Charter and the laws of the State of Montana with offices at 121 N. Rouse Avenue, Bozeman, Montana
59771-0640, hereinafter referred to as "City", and ISLANDS, LLC, P.O. BOX 11078, BOZEMAN MT
59719, hereinafter referred to as "Landowner."
WITNESSETH:
WHEREAS, Landowner is owner in fee of a tract of real property, hereinafter referred to as the
WEST WINDS SW SUBDIVISION situated in Gallatin County, Montana, and more particularly
described as follows:
Lots 2, 3, and 4 of the Amended Plat Of Lot 1 And Lot 2 Of Block 1 And Lot 1 Of Block 4 Of
West Winds Major Subdivision Phase 4 And Lot 1 Of Block 3 And Lot 1 Of Block 4 Of West
Winds Major Subdivision Phase 5, [Plat J-493A], located in the Northwest one-quarter of
Section 2, T. 2 S., R. 5 E. of P.M.M., City of Bozeman, Gallatin County, Montana.
WHEREAS, it is the intent and purpose of the Subdivider to meet the conditions of preliminary
plat approval, Planning Application No. 17583, for the Final Plat application of WEST WINDS SW
West Winds SW Affordable Housing Agreement Page 1 of 6
SUBDIVISION (application 18461), to subdivide 10.982 acres and create seventy-two (72) single
household residential lots, one(1)common open space lot, and the remaining areas as public streets and
alleys; and
WHEREAS, paragraph 38.380.100.E of the Bozeman Municipal Code requires recordation of
the affordable housing plan in conjunction with final plat; and
WHEREAS,the parties have determined that it is in the best interests of the City and Landowner,
and in furtherance of the public health, safety and welfare of the community to enter into and implement
this Agreement.
WITNESSETH:
IN CONSIDERATION of the mutual covenants and agreements herein contained, the parties
hereto agree as follows:
1. Recitals
The above recitals are true and correct.
2. Agreement
The Landowner has proposed and the City has approved an affordable housing plan which is
attached as Exhibit A to this agreement. Recording of this agreement including Exhibit A satisfies the
requirements of 38.380.100.E of the Bozeman Municipal Code. Landowner agrees the affordable
housing plan is a binding agreement between the City and the City may enforce the affordable housing
plan against the Landowner or its successors in interest to any parcel subject to the affordable housing
plan. Landowner agrees the affordable housing plan is binding on Landowner's successors. The
Landowner is required pursuant to 38.380.100.13, BMC to implement the affordable housing plan.
West Winds SW Affordable Housing Agreement Page 2 of 6
3. Additional Terms
The parties recognize these documents must be filed and of record with the Gallatin County Clerk
and Recorder prior to the sale of any land within the WEST WINDS SW SUBDIVISION and concurrent
with recording of the final plat for the WEST WINDS SW SUBDIVISION.
4. Governing Law and Venue
This agreement shall be construed under and governed by the laws of the state of Montana. In
the event of litigation, venue is in the Eighteenth Judicial District Court, in and for County of Gallatin,
State of Montana.
5. Attorney's Fees
In the event it becomes necessary for either party to this Agreement to retain an attorney to
enforce any of the terms or conditions of this Agreement, then the prevailing party shall be entitled to
reasonable attorney's fees and costs, to include the salary and costs of in-house counsel including City
Attorney.
6. Waiver
No waiver by either party of any breach of any term, covenant or agreement shall be deemed a
waiver of the same or any subsequent breach of this same or any other term, covenant or agreement. No
covenant, term or agreement shall be deemed waived by either party unless waived in writing.
7. Invalid Provision
The invalidity or unenforceability of any provision of this agreement shall not affect the other
provisions hereof, and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted.
West Winds SW Affordable Housing Agreement Page 3 of 6
8. Modifications or Alterations
No modifications or amendment of this Agreement shall be valid unless evidenced by a writing
signed by the parties hereto.
8. No Assignment
It is expressly agreed that the Landowner shall not assign this Agreement in whole or in part
without prior written consent of the City.
9. Successors
This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties
hereto and their respective heirs, successors and assigns and specifically to any subsequent purchaser of
the WEST WINDS SW SUBDIVISION.
10. Covenants to Run with the Land
The parties intend that the terms of this Agreement shall benefit the WEST WINDS SW
SUBDIVISION and shall be covenants running with the land.
The undersigned Landowner affirms that they have authority to enter into this Agreement and to
bind themselves to this Agreement.
**End of Agreement except for Signatures"
IN WITNESS WHEREOF,the parties hereto have caused this agreement to be executed the day and
year first above written.
West Winds SW Affordable Housing Agreement Page 4 of 6
LANDOWNER
r
r
ISLANDS LLC
By: W. Mark Easton
STATE OF MONTANA )
:ss
COUNTY OF GALLATIN )
On this 28th day of December, 2018, before me, the undersigned, a Notary Public for the State
of Montana,personally appeared Mark Easton known to me to be the ►V1"bw of
ISLANDS LLC, and acknowledged to me that he executed the same for and on behalf of ISLANDS
LLC.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and
year first above written.
SEAL
" SHANNON L KLOOSTERHOF
v`a�Klops r',
?�. •. , Notary Public
gTARIq��=:for the State of Montana �..
- Residing at: (Printed Name Here)
*' SF,A1..��; Bozeman, Montana Notary Public for the State of µ�<� •••• My Commission Expires:
�FM \` March 17,2021 Residing at p}Q,XYem . VAX
My Commission Expires: ?>' li •2D'Ll
(Use 4 digits for expiration year)
West Winds SW Affordable Housing Agreement Page 5 of 6
THE CITY OF BOZEMAN
A' l�
BY-t4ARTINXATSEN,
DIRECTOR OF COMMUNITY DEVELOPMENT
CITY OF BOZEMAN
STATE OF MONTANA )
:SS
County of Gallatin )
On this ;Lq day of Qzt_yrjl" 2018, before me, a Notary Public for the State
of Montana, personally appeared Martin Matsen, known to me to be the person described in and
who executed the foregoing instrument as Director of Community Development for the City of
Bozeman, whose name is subscribed to the within instrument and acknowledged to me that he
executed the same for and on behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal on the day and
year first written above.
L KL00STERHOF Notary Public Vm lY L C �/�`AO Y\,A q�C�N KI OOS L
;. ?o•. •,rf�;
N��oupi.4 :�'_for the State of Montana (Printed Name Here)
Bozemadintvgto: Notary Public for the State of Montana
9 �� P My Commission Expires: Residing at
OF
March 17,2021 My Commission Expires:
(Use 4 digits for expiration year)
West Winds SW Affordable Housing Agreement Page 6 of 6
Retum to:
B.0 Z E MAN MT City of Bozeman Community Development
20 East Olive Street
Community Development Bozeman MT 59715 AH
AFFORDABLE HOUSING PLAN APPLICATION
The City of Bozeman's Affordable Housing Ordinance requires that any new subdivision development,
site plan or annexation of 10 units (single detached or attached townhomes) or larger are required to
submit an Affordable Housing Plan. This application is to be submitted in conjunction with a
development plan. Please also provide a site plan highlighting the proposed affordable housing lots.
1. PROJECT DESCRIPTION
Development Name:West Winds SW Subdivision
Description:73 Lot Residential Subdivision (72 Residential Lots + 1 Open Space Tract)
Property Owner
Name: SID716 LLC
Full Address: 20 W. Haley Springs Rd. Bozeman, MT 59718
Phone: (406) 581-9644 Email: mark@eastonconcrete.com
Applicant
Name: Islands LLC
Full Address: PO Box 12037 Bozeman, MT 59719
Phone: (406) 581-9644 Email: mark@eastonconcrete.com
Representative
Name: Trever McSpadden c/o Haystack Development, Inc.
Full Address: PO Box 1793 Bozeman, MT 59771
Phone: (406)640-6020 Email: tever@haystackdevelopment.com
Property
Full Street Address: 3270 Breeze Ln., 1553 Windward Ave. & 1345 Windward Ave.
Full Legal Description:_Lots 1 &2 of Block 1 and Lot 1 of Block 4 of the Amended Plat of Lot 1 and Lot 2 of Block 1
Current Zoning:—R_3_Y_____�
Current Use: Vacant
Community Plan Designation: Residential
Affordable Housing Required Materials Page 1 of 7 Revision Date 04-06-2018
Required Forms: I Al, AH Recommended Forms:
BOZ E MAN MT
Community Development AH
1. QUANTITY AND TYPE OF AFFORDABLE HOUSING UNITS
The City of Bozeman's Affordable Housing Ordinance requirements:
- 10% of all units must be built lower priced (70% AMI) or
- 30% of all units must be built moderately prices (90% AMI) or
- A combination of lower priced and moderately priced home to meet the requirements
Townhomes Detached Homes Total
Total Units in Development 30 42.0 72
Market Rate Units 24 42.0 66
Lower Priced Units - 10% of Total or 6.0 0.0 6.0
Moderate-Priced Units - 30% of Total 0.0 0.0 0.0
Fractional Units (Cash-in-Lieu) 1.2 0.0 1.2
When entering numbers into the above table, if required number- of units is as a decimal, the
developer/builder has the option to round up to the next whole number of units or pay cash-in-lieu
to cover- that partial unit.
- Example:(14 total units = 1.4 lower-priced, build 2 or build 1 and pay .4 * Cash-in-Lieu Rate)
2. CITY OF BOZEMAN MAXIMUM HOME PRICE & CASH-IN-LIEU SCHEDULE - 2017 AMI
Pricing for homes in the Affordable Housing Program are set annually and are based off of the US
Department of Housing & Urban Development's (HUD) annual Area Median Income (AMI).
2018 Maximum Home Prices
Studio 1-2 Bedroom 3+Bedroom
(1-Person HH) (2-Person HH) (4-person HH)
Lower-Priced Home-70%AMI $151,346 $173,291 $216,589
Moderate-Priced Home-90%AMI $204,558 $233,936 $292,297
2018 Cash-in-Lieu Rates
Formula Townhomes Detached Homes
(Median Market Rate Sale Price - Lower-Priced $229,374 - $173,291 $314,407 - $216,518
Home Sales Price)
Cash-in-Lieu $55,453 $97,889
2018 Fractional Fee Scale in Dollars
.1 .2 .3 .4 .5 .6 .7 .8 .9
1 or 2 bdrm 5,545 11,091 16,636 25,607 27,727 33,272 38,817 44,362 49,908
3+ bdrm 9,789 19,578 29,367 39,156 48,945 58,733 68,522 78,311 88,100
Affordable Housing Required Materials Page 2 of 7 Revision Date 04-06-2018
Required Forms: I Al, AH Recommended Forms:
BOZ E MAN MT
Community Development AH
3. ELIGIBLE INCENTIVES (CHECK THOSE THAT APPLY BASED ON PROPOSED UNITS)
❑✓ Expedited Permit Review (All AH)
❑✓ Reduced Minimum Lot Sizes (All AH)
❑✓ Down Payment Assistance (70% AMI Sales Price & up to 80% AMI Buyer)
✓l Impact Fee Subsidy (70% AMI)
✓❑ Simultaneous Construction of Housing and Infrastructure (70% AMI)
✓❑ Reduced Parking (70% AMI)
E✓ Reduction of Parkland (70% AMI)
Explain the incentives being requested:
1. Expedited Permit Review:A request to expedite the review, construction and subsequent delivery of the 6 affordable
housing units (70%AMI)early in the project(projected start date of November 2018)as indicated in 4.1 below.
2. Down Payment Assistance:A request to allow future buyers access to this program and up to $10,000/unit of
financial assistance.
3. Impact Fee Subsidy:A request to offset the overall cost of construction for the 6 housing units (70%AMI) upon
delivery.
4. Reduction of Parkland: A request to account for the amount of parkland improvements-in-lieu required to satisfy the
parkland dedication required by subdivision.
4. AFFORDABLE HOUSING PLAN
The Affordable Housing Plan must include answers to the following questions.
1. Explain the timing of the delivery of the affordable homes in relation to the market-rate homes in
the development?
The 6 housing units will be included in the first stage of site development,tentatively scheduled for November of 2018
upon recording of the final plat. The applicant is estimating a construction period of approximately 8 months with
considerations given to the weather establishing a delivery estimate of June 2019.
As noted above, the applicant is requesting expedited plan review to facilitate this objective. As proposed,the
affordable housing units will be sold concurrently and in proportion to the sale of unimproved lots and/or market rate
homes.
Affordable Housing Required Materials Page 3 of 7 R v s o Dat 04-06-2018
Required Forms: I At, AH Recommended Forms:
BOZ E MAN MT
Community Development AH
2. Construction of affordable homes is required to be consistent with the makeup of the rest of the
homes in the development. What is the mix of 1, 2 and 3+ bedrooms among market rate units
and how will the affordable homes that are being proposed match with that?
Townhomes Detached Homes
1 BDR 2 BDR 3+ BDR 1 BDR 2 BDR 3+ BDR Total
Market Rate Units 18 6 14 28 66
Lower-Price-Units 6 6
Moderate-Priced Units
Note: Housing products are assumed for the purposes of this plan. Individual lot development may
vary over time.
3. Explain the construction plan for the affordable homes in the development including any
timelines for the projects
As noted above, the objective is to begin construction of all 6 of the affordable housing units as early as
possible. The applicant will begin construction after the recording of the subdivision plat and upon receiving a
building permit. Tentative estimates include a start date of November 2018 with an 8 month construction period
and a delivery estimate of June 2019.
4. Does the site have any unusual features (terrain, wetlands, rock outcroppings, streams, etc.)
a. List any unusual features here.
The site does not include any unusual physical features.
Affordable Housing Required Materials Page 4 of 7 R v s o Dat 04-06-2018
Required Forms: I Al, AH Recommended Forms:
BOZ E MAN MT
Community Development AH
5. Are there any other special features within the development (how does the project meet the
green building/renovation guidelines, cottage housing, common open space, dedicate parks,
etc.)?
a. List any special features here.
These homes will have access to the various park improvements that have been made to facilitate the
implementation of the West Winds Master Park Plan. These improvements were required as part of the subdivision
process and include the completion of the trail corridor north of Winter Park Street that extends to Public Park#4
where the installation of a new tot-lot will be completed in 2018.
6. Explain the marketing plan for the sale of the affordable homes in the development. If you are
going to be working with any partners, please list them here. (Possible partners include HRDC,
the City of Bozeman, etc.)
The applicant will be working with both the HRDC and the City of Bozeman to market and sell the 6 affordable
homes proposed with this plan. Strategies include the following:
1. Promotion of the available units on the Multiple Listing Service (MLS);
2. Detailing the affordability restrictions per the City of Bozeman Housing Rules; And
3. Utilization of the HRDC housing programs such as Homebuyer Education, Down Payment Assistance, Home
Ownership Counseling and Homebuyer Certification based on City of Bozeman eligibility criteria.
4. Production of distributable marketing materials to facilitate outreach to eligible buyers through the City of
Bozeman and the HRDC.
Affordable Housing Required Materials Page 5 of 7 R v s o Dat 04-06-2018
Required Forms: I At, AH Recommended Forms:
BOZ E MAN MT
Community Development AH
7. Plan for the construction of Affordable Homes in a phased development. The Affordable Homes
being built need to be consistent with the market-rate homes in development. If the exact
number of units in a phased development is not known, the developer may estimate the total
number of affordable homes (if not a phased development, do not fill out this part).
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Studio/1 Bedroom
2 Bedroom
3 Bedroom
This subdivision is proposed as a single phase.
8. If Affordable Homes are not being built there may be two alternatives:
a. Cash-in-lieu may be used as an alternative means to satisfy the requirements of the
Affordable Housing Ordinance (1922). Approval must be received from the Affordable
Housing Program Manager. Cash-in-lieu will be determined at time of application based
on the current AMI for the area. (describe cash-in-lieu plan below if requesting this
option):
Cash-in-lieu is being requested for a portion of the overall obligation to account, in part, for the challenge of
delivering an odd number of units (7.2) in a 2-unit product. As a result, the applicant is proposing a cash-in-lieu
amount of$117,467.00 based on the following formula:
$97,889.00 (3+ BR Rate) + $19,578.00 (3+ BR Fractional Rate at .2 units) _ $117,467.00
b. Land-donations may be used as an alternative means to satisfy the requirements of the
Affordable Housing Ordinance (1922). Approval must be received from the Affordable
Housing Program Manager. Land donation values and amount will be determined at time
of application based of the current AMI for the area. (describe land-donation plan below if
requesting this option):
Not applicable to this request.
Affordable Housing Required Materials Page 6 of 7 R v s o Dat 04-06-2018
Required Forms: I At, AH Recommended Forms:
B 07 E M A 10,
Community Development AH
9. The submission of a final affordable housing building permit form (AHB) is required in addition
to other required documents at the time of building permit application.
10. I hereby certify and attest to the following:
a. I am an authorized representative of the property owner/developer
b. I understand that this AHO plan, when approved, will become part of a recorded
development agreement in which I will agree to comply with all requirements of the AHO
ordinance and Administrative Procedures including but not limited to:
i. Requirements for design, timing of delivery, marketing and sale of AHO Homes
ii. Required AHO prices and maximum qualifying incomes of buyers that are in effect
at the time of marketing and sale of the homes and the requirements for timing and
amounts of payment of cash-in-lieu and or acceptance and transfer of donated
property.
Submitted this the - �lt�_'day of;:6ft_!____, 20_ 1?_by
---------- --- ----------------------------------------------- --- a =- 8----
SigZa of Developer, Owner or Representative Date
--- -- � -7 -------------------------------
Printed or Typed Name
City Staff Recommendation for Approval of the AHO Plan (to be signed only for the final AH plan)
I hereby recommend this AHO Proposal foi- approval by the City of Bozeman
--1--4--- ----- (/' --- -----_�_�--—------------------------- ---���6
Signature of Affordable Housing Program Manager Date
-----------------------------------------------------------------
Printed or Typed Name
(0 -- 1� -!$
-------- ---- ---- ------------------------------------------- --------------------
Sign ure of Community Development Director Date
----t-- q��-� ,� hAA------ ---ran- ------------------------
Printed or Typed Name
CONTACT US
Alfred M.Stiff Professional Building phone 406-582-2260
20 East Olive Street 59715 (FED EX and UPS Only) fax 406-582-2263
PO Box 1230 planning@bozeman.net
Bozeman,MT 59771 www.bozeman.net
Affordable Housing Required Materials Page 7 of 7 Revision Date 04-06-2018
Required Forms: Recommended Forms:
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