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HomeMy WebLinkAbout011 - Appendix E - Affordable Housing Plan 5/19/25, 10:45 AM Re:Wallace Works AHO Covenant Timing-Tyler Steinway-Outlook � OUtI00IC Re: Wallace Works AHO Covenant Timing From Tyler Steinway < > Date Mon 5/19/2025 8:33 AM To Erin George < >; < > Cc Audrey Chorak < >; Zachary Moon < >; Brit Fontenot < > Thanks Erin! I hope you had a good weekend! We are also in agreement with this change. We will be prepared to record a covenant prior to occupancy. Thank you, Tyler Tyler Steinway,AICP � Senior Planner Intrinsik Architecture, Inc. 106 East Babcock Street Suite 1A Bozeman, Montana 59715 0. Direct: M. From: Erin George< > Sent: Friday, May 16, 2025 4:53 PM To:Tyler Steinway< >; < > Cc:Audrey Chorak< >; Zachary Moon < >; Brit Fontenot <bfontenot@ BOZE MAN.N ET> Subject:Wallace Works AHO Covenant Timing You don't often get email from . Learn whv this is important Tyler& Erik, I'm writing today to confirm my agreement with Brit's attached decision to allow the Wallace Works project (#24532)to record the affordable housing restrictive covenants as a condition of occupancy per the 2025 version of the AHO, rather than prior to final plan approval as the prior version of the ordinance required. Given this was a site plan condition,the City Attorney instructed that I also needed to consent to this decision. Please document your consent to the proposed timing by responding to this email. Sincerely, Erin George, AICP Director � Community Development about:blank?windowld=SecondaryReadingPane42 1/2 5/19/25, 10:45 AM Re:Wallace Works AHO Covenant Timing-Tyler Steinway-Outlook City of Bozeman � 20 East Olive St. � P.O. Box 1230 � Bozeman, MT 59771 P: � C: � E: � about:blank?windowld=SecondaryReadingPane42 2/2 To: Director of Community Development Fr: Brit Fontenot, Director of Economic Development Date: March 31, 2025 RE: Approval of Applicability and Affordability Requirements Pursuant to Ordinance 2025-001 for Community Development Project 24532 Wallace Works Pursuant to Sec. 38.200.O10.H, BMC, as the duly appointed Director of Economic Development, I must oversee, review, and as needed approve, approve with conditions or deny, and manage after approval the following development elements and processes pursuant to BMC Divisic�n �8.�50, Affordable Housing. Project 24532, Wallace Works, submitted an application for review pursuant to Ordinance 2105 on September 27, 2024. On March 13, 2025 Ordinance 2025-001 replaced elements of Ordinance 2105 in Division 38.380. Pursuant of the pending ordinance doctrine, I hereby approve the recording of the restrictive covenants as a condition occupancy per Ordinance 2025-001, rather than a condition of site plan approval per Ordinance 2105. If you determine the application is appropriate for approval, I request you include in your approval of the project site plan the following conditions: Section 38.380.020 Applicability and Affordability Requirements: D. Each affordable dwelling must be maintained as affordable pursuant to the adopted affordable housing plan and the compliance document required pursuant to 38.380.030 for no less than fifty (50)years. The affordability period begins to run at the issuance of a certificate of occupancy for each building wherein affordable dwellings are provided. For subdivisions that rely on an incentive, the affordability period does not begin at the time final plat is recorded; rather, the affordability period for each affordable dwelling begins at the time each affordable dwelling in the subdivision receives a certificate of occupancy. Please include a copy of this memorandum and the approved affordable housing plan in the file for the Proj ect. 1 � Page MT ��� � ��� AFFORDABLE HOUSING PLAN APPLICATION Project Development Name: Project Description: Property Information Property Address: Property Owner: Legal Description: Property Geo-Code: Current Zoning: County Tax ID#: Applicant Information Name: Business Name: Business Address: Business Phone: Cell Phone: Email: Please attach a contact list of all other property owners, business partners, developers and/or investors associated with this project, with the above information provided for each. Affordable Housing Number of Residential Units Total: Number of Bedrooms Total: Number of Affordable For-Sale Units: Number of Affordable Bedrooms: AffordabilityTargets(120%AMI Minimum): Number of Affordable Rental Units: Number of Affordable Bedrooms: AffordabilityTargets(80%AMI Minimum): Affordability targets and Area Median Income information will be updated on an annual basis, in accordance with annual AMI updates by the US Department of Housing and Urban Development(HUDJ. Incentives Please include a complete list of all incentives requested in your affordable housing plan narrative. Submit the affordable housing plan along with your development application. Please visit the Development Center for more information and to submit your application via ProjectDox. AFFORDABLE HOUSING PLAN APPLICATION 1 r�-r i�'�C � ���/�► ��II SIGNATURES This application must be signed by both the applicant(s) and the property owner(s) (if different). I (we), by signature below, certify that the information supplied in this application is, to the best of my (our) knowledge, true, accurate, and complete, and is provided for the purpose of obtaining approval to receive affordable housing incentives. I (we) understand that failure to comply with the terms of the Affordable Housing Ordinance may result in revocation of an award. I (we) understand the work to be undertaken must be in accordance with all applicable requirements of the Bozeman Municipal Code and any special conditions established by the approval authority and must receive all required approvals prior to commencing the work. An approved affordable housing plan is a binding contract between the developer and the developer's successors in interest to the lot or dwelling, and must be included in a separate written agreement between the developer and the City, or incorporated into another recorded document in which the developer is required to implement the affordable housing plan. Applicant(s) (Print Name) j�2-���-�l�° Signature of Applicant Date Property Owner(s) (Print Name) ,�� U '� � Signature of Property Owner Date AFFORDABLE HOUSING PLAN APPLICATION 2 MT ��+L t �`��/�1 �'VI ADDITIONAL INFORMATION 1. Project Narrative Provide an overview of the project in narrative format.The narrative must include a description of the following aspects of the project: ■ Type of Residential Units o Total number and individual square footage of residential units; type of residential units (e.g. for-sale, rental, condominium, single-family, etc.); number and type of parking spaces provided; and construction phasing. ■ Prolect Timeline o Include anticipated dates for site acquisition, project start and completion, as well as other project milestones. Multi-phase projects must include details for each phase. The timeline should also identify any critical or time-sensitive dates as well as any time constraints facing the applicant. ■ Construction Information o Size of any existing structure to be demolished or rehabbed;size of any new construction; types of construction materials (structural and finish); delineation of square foot allocation by use. ■ Affordable Housin� Information o The City of Bozeman has established goals to increase the supply of affordable housing in the city. Provide a detailed narrative response to each criterion and include supporting documentation to include a description of the affordable housing elements of the project. ■ Sustainability Features o Please describe any sustainable features. Not required, but highly encouraged 2. Site Maps and Building Plans The Applicant must submit a completed Conceptual Review Application (CONR) with the Planning Department, in accordance with appropriate application procedures. The Conceptual Review application must include, at minimum: ❑ Photographs of project site and/or building ❑ For requests of smaller lot sizes per the AHO incentives, please provide preliminary platting information showing the proposed affordable lots that will be deed restricted ❑ Map showing the location of the site and its immediate surroundings ❑ Proposed development plans including site plans, floor plans indicating square footage, layout, and building elevations ❑ Description of parking accommodations for residential units ❑ Estimated date of occupancy ❑ Anticipated off-site infrastructure improvements, including anticipated costs ❑ Copy of Concept Review comments AFFORDABLE HOUSING PLAN APPLICATION 3 M7 CRITERIA FOR AFFORDABLE HOUSING PLAN To qualify for low income affordable home incentives,the developer must submit to the City an affordable housing plan that includes the information and complies with the standards in this section. The review authority may approve the affordable housing plan if the review authority finds that it includes the information required for the city to confirm compliance with the standards and criteria in the AHO. Please note the plan sheet number and title in ProjectDox depicting or describing each criterion. Affordable Home Incentive Requirements Information Required ❑ 1. The total number of affordable homes, and market rate homes in the proposed development ❑ 2. The table in 38.380.020 to be applied to the affordable housing plan � 3. The number of bedrooms in each proposed low income affordable home, and market rate home in the development ❑ 4. Whether each affordable home will be offered for rental or for sale ❑ 5. The location of affordable lots or units in the development ❑ 6. The applicable AMI and maximum rental or sales price applicable to each home ❑ 7. A description of the requested incentives from section 38.380.040 � 8. Any other information that is reasonably necessary to evaluate the compliance of the affordable housing plan with the requirements of the AHO Phased Construction (If ApplicableJ 9. The required information may include specific commitments for the first phase of � development and estimates for later phases of development, provided the combination of committed and estimated low income affordable homes in the development equals or exceeds the minimum required to qualify for the incentives requested 10. 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 updating the information required in this section. The review authority shall review and approve, approve with conditions, or deny the update using the criteria in this section Development Standards for Affordable Homes � 11. The number of affordable homes must meet or exceed the minimum standards needed to qualify for the applicable incentive in section 38.380.030 � 12. 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 � 13. Access to shared amenities and services by residents of the affordable homes must be the same as to those in market rate homes in the development 14. Ifthe development is to be constructed in phases,and the developer has requested affordable � housing incentives, 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 shortfall during earlier phases will be constructed before approval of the final phase of development AFFORDABLE HOUSING PLAN APPLICATION 4 Wallace 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 applications 22-156 (Site Plan) &24-175 (MOD Application) proposes to provide 65 dwelling units including 6 live- work units for entrepreneurs and artists, 11 rowhomes, and 48 apartments above street level. In total, Wallace Works is projected to provide 72,647 gross square feet of new construction. 5,832 square feet of which are dedicated to commercial use and 66,815 square feet of which is dedicated to residential use.This project is also proposing to utilize the Shallow Affordable Housing Incentives by dedicating 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.Information 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. IAffordable Homes Required Shallow Incentives � Minimum PeYcentage of HomeS MaximUm Pefcentage o(AMI Duration Rental Dwellings For-Sale Dwellings(includes condominiums) rype of Mousing Single-HouseholdDetached7welling =5. 8046ofaMl �20=:ofAMi =�30years Single-HouseholdAtt [�,:�:-I'_ __�. ._ �','I _.�.`AM = - -, . miwci-r:iseroid�,�ei r; __ _ -'.�i _-�r.� __ __ 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 215tudios(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 location 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 description of the requested incentives from section 38.380.030. 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 information 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 idenfified at this time. i. If the development is to be constructed in phases: (1)The required information may include specific commitments for the first phase of development and estimates for later phases of development, provided the combination of committed and estimated low-income affordable homes in the development equals or exceeds the minimum required to qualify for the incentives requested. Response:This project is not broken into phases in the tradifional 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 updating the information required in this section.The review authority shall review and approve, approve with conditions, or deny the update using the criteria in this section. 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 incentive in section 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 amenities 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 incentives, 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 shortFall 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.