HomeMy WebLinkAboutAffordable Housing Plan, additional materialsPart I. Overview and Background
Executive Summary
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During the recent recession, home prices and rents became more available and affordable, although
rental housing has since become somewhat more expensive and harder to find. A decline in the number
of people employed reduced incomes and demand for housing. But at the same time, losses of income
made housing harder to afford for some Bozeman residents. ��
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According to the 2010 (,ensus, the number of Bozeman households paying ove
housing increased substantially during the 2000s. Over 6,000 households -28
O% of their incomes for
if homeowners and
49% of renters —were living in unaffordable housing, measuring by that widely accepted 30 % -of- income
benchmark. The numbers of homeless people and special populations needing affordable housing also
increased in recent years.
This affordable housing action plan endorses four major strategies to be carried out over the next five
years:
Increase and preserve the supply of affordable housing. The goals of this plan include building 240
affordable rental units. Amore tentative goal is set for construction of subsidized homes for sale –only
28 homes —and that number to be built only if the market strengthens. To help strengthen the for -sale
home market, the plan calls for providing down payment assistance to 100 low- and moderate - income
buyers of modestly priced existing and new homes. The plan also calls for helping 125 low- income
Bozeman homeowners repair their homes, and weatherizing 350 homes and rental units in the
county area. Bozeman's first -ever green building guidelines for affordable housing are included in this
plan.
Consider amendments to City regulations. This plan endorses a continued suspension of the City's VIP",
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Workforce Housing Ordinance, but sets out criteria for considering reinstatement of the ordinance wherf A
the for -sale housing market strengthens. The plan also calls for consideration of other regulatory
changes: (1) deferring or subsidizing impact fees for affordable housing, (2) allowing the creation of
smaller lots with narrower frontage, (3) re- platting of existing subdivisions that have requirepts that
builders consider burdensome, (4) reviewing current ordinances regulating accessory dwellifi'f�gs.;'(5)
clarifying the zoning status of group homes and (6) studying possible ordinance changes to encourage
preservation of mobile home parks.
Assure financial and organizational caQaci
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. To carry out the goals of this plan, local nonprofit housing
organizations will need to access a substantial amount of currently-available federal funds managed by
the State of Montana. The federal Low - Income Housing Tax Credits are a major resource for building
affordable rental housing but have not been used in Bozeman for seven years; a goal was set to
City of Bozeman Affordable Housing Action Plan for 2012 -2016 /11�`' �Paget2'7`���,,U�
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encourage the development of 200 rental units using this program, as well as funding from other
sources to build 40 affordable apartments for seniors:- 'another goal is to maximize the effectiveness of
the City's Workforce Housing Fund, by establishing new requirements and priorities for distributing
funding. The plan also calls for an increased effort to provide technical assistance to nonprofit housing
organizations in Bozeman, to increase their capacity.
Share crucial market data and report on progress. lastly, to better assure that the plan is successfully
implemented, several other goals are established: (1) following new, definitive protocols for updating
targets for affordable home prices and rents, (2) implementing, if feasible, an annual rental market
survey to better inform developers and nonprofits about demand, and (3) publishing an annual report
on progress versus the goats of the action plan.
Guiding Principles for This Affordable Housing Plan
The housing element of Bozeman's Community Plan, adopted in 2009, declared certain principles that
broadly define what is meant by affordable housing, why it is important, -and what kinds of actions
should be taken, as follows.
• All residents should have access to decent and affordable housing.
• Successful delivery of affordable housing should not be measured only by sale prices and rents,
but its performance in terms of minimizing energy use and maintenance costs.
• There is no single home price or benchmark that defines "affordable" housing."
Affordability
for
residents of various incomes levels
should be based on ability to pay, since
affordability
is a
function of
both
housing costs and
income.
• The solutions to providing affordable housing should involve using diverse approaches and
mechanisms.
� Availability of housing for residents of all income levels is essential for attracting and retaining
the employers that provide the jobs that are essential to the community's prosperity.
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These continue to be sound, comprehensive pr inciples to guide the community's affordable housing
initiatives and the goals of this Affordable Housing Action Plan. For purposes of this plan, affordable
rental housing is defined as having rents not exceeding 30% of household income, and affordability for
homeowners is a housing payment not exceeding 339'0 of household income. The affordable housing
activities proposed in this plan are intended to serve residents who, without interventions, pay more
than that, are homeless, or at risk of being homeless.
City of Bozeman Affordable Housing Action Plan for 2012 -2016 Page 3