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HomeMy WebLinkAbout006 - Appendix E - Affordable Housing PlanWallace Works Affordable Housing Plan 01.13.2025 Project Description Wallace Works is a mixed-use development addressing "missing middle" housing in the industrial Northeast Historic district of Bozeman. Wallace Works seeks to address an urgent and growing need for attainable housing in Bozeman while embracing the mixed-use and diverse architectural character of the NEHMU district. As a whole the Wallace Works Project which previously got approval under applicatfons 22-156 (Site Plan) & 24-175 (MOD Applicatfon) proposes to provide 65 dwelling units including 6 live- work units for entrepreneurs and artfsts, 11 rowhomes, and 48 apartments above street level. In total, Wallace Works is projected to provide 72,647 gross square feet of new constructfon. 5,832 square feet of which are dedicated to commercial use and 66,815 square feet of which is dedicated to residentfal use. This project is also proposing to utflize the Shallow Affordable Housing Incentfves by dedicatfng 10% of the units at 80% of AMI (for rent). The Applicant is partnering with HRDC in order to offer these units first to the local workforce, individuals and families that qualify within the 80% AMI price range. Response to Affordable Housing Plan Requirements (38.380.040) 1.Informatfon required. a. The total number of affordable homes, and market rate homes in the proposed development. Response: The project proposes to construct 65 total units. 10% of the total units (7 total) will be deed restricted for 30 years at 80% of AMI for Gallatin County. b. The table in 38.380.020 to be applied to the affordable housing plan. Response: This project will only meet the requirements for the Shallow Incentives outlined in table 38.380.020-2 (below). This project is a mixed-use project containing multi-household dwellings. Of the dwellings proposed 10% of them (7 units) will be provided at 80% of AMI for a period of 30 years. c. The number of bedrooms in each proposed low income affordable home, and market rate home in the development. Response: This project proposed a mix of studio, one-bedroom, two-bedroom and four- bedroom units. 10% of the units, which breaks down 4 Studio units and 3 one-Bedroom units. The studio and one-bedroom units make up the majority of the unit mix in the project and as such those two units types have been selected for the affordable units. The remaining 58 units will be market rate. The mix of bedrooms is 21 Studios (32% of total), 25 One-beds (38% of total), 15 Two-beds (23% of total) and 4 four-beds (6%). 4 of the Studios and 3 of the One-beds will be dedicated as the Affordable units. That leaves 17 Studios, 22 One-beds, 15 Two-beds and 4 Four-beds for market rate. The Studio and One-bed units were chosen as they combined make up the largest portion of the unit mix. d. Whether each affordable home will be offered for rental or for sale. Response: These units will be offered for rent. e. The locatfon of affordable lots or units in the development. Response: The affordable units will be throughout the building but will be primarily located on the lower levels. The intention is to mix the market rate and affordable units together, so there is no distinguishable difference between the units. f. The applicable AMI and maximum rental or sales price applicable to each low income affordable home. Response: The project will have 10% of the units at 80% AMI in Gallatin County, which for 2023 correlates to $$1,526 for the Studio units & $1,744 for 1-bedroom units. These rent prices will be evaluated each year for compliance with 80% of AMI. g. A descriptfon of the requested incentfves from sectfon 38.380.030. Providing 10% Response: The Applicant is requesting to take advantage of the Shallow Incentives, specifically the parking reduction to one space per unit as allowed under section 38.380.030.C.3.D. The code, before any reductions, would require this project to provide 84 parking spaces. The Shallow Incentives will reduce the overall parking metric to 65 spaces. Please note the parking associated with commercial use was not reduced with these incentives. h. Any other informatfon that is reasonably necessary to evaluate the compliance of the affordable housing plan with the requirements of this division, as determined by the review authority. Response: No other information has been identified at this time. i. If the development is to be constructed in phases: (1) The required informatfon may include specific commitments for the first phase of development and estfmates for later phases of development, provided the combinatfon of committed and estfmated low-income affordable homes in the development equals or exceeds the minimum required to qualify for the incentfves requested. Response: This project is not broken into phases in the traditional sense where later phases would be years later. This project is broken into two phases primarily to allow for building sequencing to occur. Construction will begin shortly after review and approval of the site plan and building permit submittal, which is likely in early 2025. Once the project starts construction it will not stop until all buildings are complete. The goal is to have buildings be able to be occupied as they are finished rather than having units sit empty while the remaining buildings wrap up. (2) As the number of low-income affordable homes for each later phase is finalized, the developer must submit an update to the affordable housing plan including or updatfng the informatfon required in this sectfon. The review authority shall review and approve, approve with conditfons, or deny the update using the criteria in this sectfon. Response: Please see response above. This project doesn’t have phasing in the traditional sense that certain buildings won’t start construction for a number of years. The phasing with this project is more sequencing than anything. Once the project starts construction it will not stop until all the buildings are complete. By sequencing the project this will allow the complete buildings to be occupied while the remaining buildings are still under construction. 2.Development standards for affordable homes. a. The number of affordable homes must meet or exceed the minimum standards needed to qualify for the applicable incentfve in sectfon 38.380.030. Response: The applicant is going above and beyond the requirements necessary for the Affordable Housing Incentives. The applicant is providing significantly more affordable units than is required. b. The mix of bedrooms per unit in affordable homes must be as similar as possible to the mix of bedrooms per unit of the market-rate homes in the development. Response: This project is comprised of a mix of bedrooms with studios making up 32% and one Bedrooms making up 38% of the unit mix. For this reason we have allocated an equal distribution of studios and one bedrooms for our affordable units. c. Access to shared amenitfes and services by residents of the affordable homes must be the same as to those in market rate homes in the development. Response: All the shared amenities within and around the building will be open to all the residents of the Wallace Works project. d. If the development is to be constructed in phases, and the developer has requested affordable housing incentfves, at least 75 percent of the dwelling units in each phase must be affordable homes, unless the city has received adequate legal or financial assurance that any shortiall during earlier phases will be constructed before approval of the final phase of development. Response: Please see response above. This project doesn’t have phasing in the traditional sense that certain buildings wont start construction for a number of years. The phasing with this project is more sequencing than anything. Once the project starts construction it will not stop until all the buildings are complete. By sequencing the project this will allow the complete buildings to be occupied while the remaining buildings are still under construction. This requirement doesn’t appear to be applicable as we are not constructing the project in phases.