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HomeMy WebLinkAboutH.1 - Jan. 13th UpdateAPPENDIX A: Many of the actions identified in the Community Housing Action Plan are already being worked on by City staff and/or community partners. The table below is an attempt to communicate these efforts. Items left blank are not currently in staffs work plan and, if adopted, would be new or additional efforts moving forward. I have marked actions that have more than trivial financial ramifications with a dollar sign ($). One dollar sign would be a minor cost and three dollar signs indicate a fairly expensive proposition. I have noted items that require legal review by a simple (Legal) in the comments. Action Strategy Actions Proposed In The Plan Staff Response 1 General Funds An annual or occasional budget allocation primarily to support staffing, pre- development and gap financing for community housing. 1 Maintain in the short-term until broad-based, reliable funding source is secured. 1 3 mil.'s slated for FY21 Budget. 2 Establish allocation criteria to inform use of the City’s Affordable Housing Fund. 2 Staff is currently working on this and will involve CAHAB. (Legal) 2 Tax Increment Financing (TIF) Allows a local government or redevelopment authority to generate revenues for properties targeted for improvement. As improvements are made within the district, and as property values increase, the incremental increases in property tax revenue are earmarked for a fund. Expenditures of TIF- generated revenues are subject to certain restrictions and must be spent within the district. 1 Use of TIF to support community housing needs to be explored at the local and state levels. 1 CD and ED Staff are discussing the implications and parameters of this action. (Legal) 2 Downtown is considering the use of TIF to incentivize ADUs and 1-bedroom units and/or units that have long-term affordability assurances. 2 The DBID has released a draft program. Staff and CAHAB are commenting. 3 Community Land Trust Community nonprofit owns land, develops housing and provides long-term stewardship for permanent affordability through long- term ground leases. Typically, single family or townhomes for moderate and middle-income households. 1 Consider establishing a Community Land Trust (CLT) organization that has the capability to take on management responsibilities of permanent restrictions. 1 HRDC in cooperation with the Trust for Public Lands are currently exploring this option. Other partners within the state esist and conversations are ongoing. (Legal) 2 Coordinate with existing housing providers with CLT homes to increase efficacy and avoid redundancy. 2 Discussion with potential program partners are ongoing. Action Strategy Actions Proposed In The Plan Staff Response 4 Deed Restricted Housing (Permanent) Dwelling units permanently restricted by occupancy (local employee/resident), income level, and with rent/resale restrictions to retain affordability in rising and high cost housing markets. 1 Transition to a permanent restriction when publicly subsidized community housing units are created. 1 (Legal) 2 Align with other policies: fee waivers and incentives. 2 (Legal) 3 Create a permanent deed restriction that balances long- term affordability with wealth creation. 3 (Legal) 4 Structure the eligibility and occupancy criteria to ensure “fairness.” 4 (Legal) 5 Increase management capacity - begin by evaluating existing capacity, considering adjustments, and/or establishing a new entity, such as a Housing Authority or Community Land Trust. 5 $$$ (Legal) 6 Emphasize customer service, such as one point of contact. 6 5 Inclusionary Zoning Requires that new residential subdivisions and PUD’s include/build homes that are deed restricted for community housing. 1 Revisit Affordable Housing Ordinance: evaluate what has worked and not. 1 Evaluation is ongoing. The current ordinance has a limited scope and is producing available units. 2 Apply to multi-family development, as well as single- family: ownership and rental. 2 This action is mandated within the City's Strategic Plan. (Legal) 3 Incorporate incentives along with housing development requirement. 3 (Legal) 4 Consider addressing up to 120% AMI for ownership. 4 $$$ 5 Require deed restrictions to be permanent. 5 (Legal) 6 Ensure consistency with other development codes. 6 This effort is ongoing. (Legal) 6 Public/Private/ Institutional Partnerships Public/institutional organizations partnering with the private sector for development expertise to build community housing on publicly owned site. May be vacant or under-utilized land. May also include institutional properties. 1 Establish criteria to prioritize site(s). 1 Efforts are in process. 2 Understand partner and site constraints. 2 Efforts are in process. (Legal) 3 Facilitate partnerships. 3 Efforts are in process. 4 Issue Request for Proposals with desired community housing outcomes. 4 Efforts are in process. (Legal) 5 Keep prioritized list for future housing opportunities. 5 Efforts are in process. Action Strategy Actions Proposed In The Plan Staff Response 7 Homebuyer Assistance Down payment assistance of grants or second mortgages for qualified buyers. Can be used for restricted or market units. 1 Build upon existing program through the City, HRDC, Habitat for Humanity. 1 This effort is ongoing. 2 Seek local funding to serve households up to 120% AMI. 2 3 Community education program – financial literacy and assistance options. 3 $ 4 Work with employers to assist employees. Technical assistance, loan/grant options, administration, etc. 4 $ 8 Permanent Supportive Housing (PSH) and Transitional PSH pairs housing with supportive services to transition chronically homeless into home security. Transitional housing provides temporary assistance to bridge the gap from homelessness to permanent housing. 1 Inform developers of PSH incentives/opportunities. 1 2 Identify needs (HRDC). 2 3 Form housing group to advocate for more state funds. 3 4 Implement FUSE model to more efficiently and effectively provide services (HRDC). 4 This effort is ongoing. 9 Fee Waivers / Deferral Water/sewer, building permit or other fees waived in part or whole or deferred until occupancy/sale to reduce upfront cost to build. General funds or other source need to cover cost if fees waived or reduced and/or for the deferral period. 1 Update Affordable Housing Ordinance to reflect how fee waiver is implemented. 1 Efforts are in process. (Legal) 2 Structure fees to incentivize desired development (e.g. lower fees for smaller ownership and for-rent units, etc.). 2 (Legal) 3 Explore options to cover the cost of reduced fees – general fund, tax increment financing (TIF), etc. 3 $ (Legal) 4 Create an upfront schedule of all fees for developments – predictability. 4 5 Ensure homes benefit the community (deed restricted) if get reduced fees. 5 (Legal) Action Strategy Actions Proposed In The Plan Staff Response 10 Co-op Housing Common ownership and management of purpose- built communities. As related to preserving mobile home parks, residents form a corporate entity that purchases the park, placing the responsibility of park maintenance in the hands of the residents. Residents can self- organize to purchase or seek assistance. NeighborWorks Montana can provide assistance in Montana. 1 Explore as a means to preserve mobile home parks. 1 This tool is currently available. 2 Reach out to NeighborWorks Montana through HRDC 2 3 Explore how the program works. 3 4 Verify that it can work in Bozeman/with Bozeman area mobile home parks, including evaluating parks and residents for interest and feasibility. 4 This tool is currently available. 11 Land Banking Acquiring land for eventual community housing development. Acquisition may occur through purchase, trades, life estates, donation (non- profits), in-lieu requirements. 1 Establish criteria to prioritize sites(s). 1 2 Inventory potential opportunities. 2 3 Understand constraints. 3 (Legal) 4 Include vacant, underutilized, redevelopment. 4 12 Employer Assisted Housing Employers providing housing support to employees. May be direct employee support (help with housing search, down payment, rent/mortgage, relocation) or master lease/buy/construct units. 1 Need education of and outreach to employers – present options and educate on tools available. 1 2 Hold symposium/education session. May be led by Chamber, Prospera, employers that currently have assisted housing programs in place, or another. 2 3 Gauge interest in options from employers. Use information from the employer survey from the Needs Assessment as a starting point. 3 4 Find leaders to carry forward 4 Action Strategy Actions Proposed In The Plan Staff Response 13 Removal of Regulatory Barriers Updating/modifying code provisions and procedures that impair community housing development. For example, ensuring codes are consistent, simplifying applications. Complete code review and rewrite might be required. 1 Implement a biannual code revision process to make it easier for boards, committees, development professionals and the general public to suggest revisions to address current and future community housing needs. 1 This effort is underway 2 Ensure process is predictable, transparent, useful and that codes produce what we want. 2 (Legal) 3 Engage third party to edit, reorganize and reformat the UDC to be more streamlined, functional and user friendly. Remove duplicative language and inconsistencies. 3 $$$ (Legal) 4 Engage third party to review all city codes, regulations and policies to identify disconnects and recommend methods to resolve. 4 $$$ (Legal) 5 Explore revisiting Engineering Design Standards and Specifications Policy to allow more compact development standards. 5 $$ (Legal) 6 Explore adding code section for Moveable Tiny Homes. Coordinate at the state level. 6 (Legal) 14 Accessory Dwelling Units (ADU) An ADU is a second smaller home sharing a lot with a single-family or townhome residence. Some examples include an apartment over a garage, a tiny house in the backyard, or a basement apartment. Accessory dwellings that may be restricted for use by residents and employees require compliance monitoring. 1 Explore removing special use permit requirement for a detached ADU in R-1 zone to allow by-right. 1 This effort is underway and will be in front of the Commission for the April 2020 UDC change cycle. 2 The city has taken steps to decrease the cost of ADUs, educate the community about these cost reductions and explore opportunities for additional reductions (i.e. permitting, impact fees, parking regulations). 2 3 Make pre-engineered ADU designs available for free – only a building permit needed to construct. 3 $ 4 Deed-restrict units that receive an incentive/public break to build to ensure community benefit – e.g., require long term rental, resident/employee occupancy. 4 (Legal) Action Strategy Actions Proposed In The Plan Staff Response 15 Low Income Housing Tax Credits (LIHTC) A federal program that creates an incentive to finance rental housing for households below 60% AMI. 1 Work with the “Complete Count Committee” to assist with the 2020 census count. An “Entitlement Community”, or city with a population of 50,000, receives increased and direct tax credit allocations. 1 Efforts are underway. 2 Get Bozeman representation on the Montana Board of Housing. 2 3 Align regulations and zoning with Qualified Census Tracts to encourage LIHTC development. 3 16 Taxes Dedicated to Housing Sales, property, lodging, short-term rental fee, real estate transfer, excise tax, vacancy tax, unit demolition or conversion fees. Voter approval required in most states. Revenue stream can be used for most housing- related activities. Approval requires extensive public education. 1 Pursue either a mill levy or bond issue. 1 (Legal) 2 Coordinate with a comprehensive education campaign. 2 3 Consider citywide Special District. 3 (Legal) 4 Evaluate what entity should hold funds collected (City, new Housing Trust fund, etc.). 4 (Legal) 5 Evaluate who should administer allocation of funds, taking into consideration accountability requirements with the use public funds. 5 (Legal) 6 Establish allocation criteria that considers: scoring system, leverages funds, aligns with income targets, requires permanent affordability. 6 17 Commercial Linkage Requires new commercial development to provide housing or pay fees for a portion of employees needed to fill the new jobs generated by the development. Nexus study is required to determine the mitigation requirement. Fluctuates with building activity. 1 Conduct Nexus Study to evaluate the potential impact of linkage on community housing and businesses. 1 $$ 2 Consider the impact on business growth and the impact on the community of doing nothing (status quo). 2 3 Identify peer communities and evaluate what has worked and not worked: learn from others. 3 4 Make it easy for employers to build housing today if they want to: e.g. continue to encourage residential above commercial or on same lot. 4 All commercial zones currently allow residential uses. Inclusion of residential uses are always encouraged. Action Strategy Actions Proposed In The Plan Staff Response 18 Pre-Approved PUD / Flexible Development Standards 1 1 2 2 3 3 19 Explore up-zoning opportunities & Strategies 1 1 2 2 3 3