HomeMy WebLinkAboutCity Commission Meeting of Bozeman, Montana Agenda Packet 2007-02-12 18-00_71-74_Affordable Housing Task Force
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Ron Brey, Assistant City Manager
Chris Kukulski, City Manager
SUBJECT: Workforce Housing Task Force Special Presentation
MEETING DATE: February 12, 2007
RECOMMENDATION: This presentation is for public and Commission information
purposes. The proposal is complex and detailed and this sort of presentation is necessary for the
proposal and all its interconnected elements to be understood. Most substantive provisions are
coordinated and interdependent. The proposal must function as a whole.
The actions requested of the Commission are to hear the presentation, ask questions and
otherwise become familiar with the provisions of the recommended ordinance. This is also an
opportunity to ask the task force for consideration or reconsideration of matters of concern, if
any.
The other action requested of the Commission is to direct the staff to take the steps necessary to
bring this ordinance back for adoption. There is a significant legal question pertaining to the
definition of household. We need to be sure that we are able to use the regulatory definition
from the UDO as proposed, rather than being bound by definitions from the Fair Housing Act.
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Courts have made the distinction between the two definitions and resolution may be clear but it
is a necessary remaining step along with the general legal review we would always obtain in
conjunction with a proposal like this.
There are also planning issues that must be addressed in conjunction with the adoption of this
program. Reduced minimum lot sizes and zero lot line construction are provided as cost offsets
for Workforce Housing Units in all zoning districts including R-1.
The staff recommends that the Commission hear the presentation, obtain any necessary
clarifications, request that the task force address outstanding issues (if any), and direct the
staff to bring the matter back as soon as possible after legal review and planning
identification of needed UDO revisions. The recommended timeframe should allow for an
effective date before June 30, 2007 to meet the July 1, 2007 implementation date in the
proposed ordinance.
BACKGROUND: In August, 2007, the Commission appointed a twelve member workforce
housing task force to identify, if possible, improvements to the workforce housing ordinance
considered for adoption at that time. The initial charge gave the task force 60 days to complete
their task. The task force membership was constructed to include diverse viewpoints concerning
workforce housing. Membership included expertise in affordable housing programs in
Bozeman, mortgage lending, affordable housing construction, development, engineering, design,
workforce housing needs, clergy, real estate, and employers. The group met seventeen times
beginning on September 9, 2006, with meetings often running 3 to 4 hours. Numerous
subcommittees convened over the course of this effort as well, and individual assignments were
often completed from meeting to meeting by individual task force members.
The task force examined each element of the original ordinance in detail. Close scrutiny resulted
in the identification of numerous unforeseen issues. Each of these in turn was examined closely
with various approaches considered and rejected along the way. What you have before you
represents the CONSENSUS recommendation of the task force.
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FISCAL EFFECTS: There are important and complicated requirements for administration of
this program. Monitoring banked units and lots, administration of cash-in-lieu collections,
development and monitoring of quality of construction requirements, deed restriction oversight,
oversight of condominium construction and covenants to assure eligibility for FHA and Fannie
Mae financing, and other administrative responsibilities make it likely that the services of an
FTE will be required to administer the program. The recommended implementation date of July
1, 2007 was established in part to allow time for the City to prepare the administrative
mechanisms needed to run the program. The draft specifies that cash-in-lieu funds will be
available for administrative costs and the big box task force recommended that the affordable
housing portion of big box economic mitigation fund collections be dedicated to first time home
ownership programs. This workforce housing ordinance will establish just such a program.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
Ron Brey, Assistant City Manager Chris A. Kukulski, City Manager
Attachments: Cover letter, Rationale
statement, Shared responsibility
chart, recommended ordinance text,
and cost offsets and incentives table.
Report compiled on: February 7,
2007
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