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Home My WebLink About9. FYI Workforce Housing Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Wendy Thomas, Director of Community Development SUBJECT: Workforce Housing Ordinance Update MEETING DATE: December 22, 2014 AGENDA ITEM TYPE: FYI BACKGROUND: The Community Development Department is working with Werwath Consultants to engage stakeholders in order to effectively assess the existing Workforce Housing Ordinance and recommend changes to City policies, programs and ordinances to enhance and encourage the production of affordable housing within the community. On June 3, 2013, the City Commission instructed staff to amend the existing Workforce Housing Ordinance to change the effective date to December 31, 2014. A copy of the final ordinance (Ordinance 1866) is attached for your reference. The ongoing work by the consultant, staff and stakeholders to craft a revised program which reflects the desire of the commission to formulate an effective implementable understandable workforce housing creation program results in a unique situation where an ordinance is suspended, will soon be active and will likely be replaced. The pending ordinance doctrine allows the City the ability to continue the suspension of the existing ordinance based on the knowledge that a replacement ordinance is being developed for commission consideration. Report prepared December 16, 2014 318 00 CO. ORDINANCE NO. 1866 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, TO AMEND ARTICLE 10.08 OF THE BOZEMAN MUNICIPAL CODE, WORKFORCE HOUSING. NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Bozeman, Montana: Section I Legislative Findings: WHEREAS, on July 16, 2007, Ordinance 1710 was finally adopted to establish standards and procedures for provision of workforce housing to income qualified households through the subdivision and zoning review processes of the City; and WHEREAS, since the adoption of Ordinance 1710, the residential real estate market in the City has undergone a significant correction, resulting in reductions in market prices for lots and housing units; and WHEREAS, the two year workforce housing program review required by Sec. 10.08.120 was postponed because no subdivision or site plan applications that were subject to the Page I of 5 319 program standards and procedures were submitted within the period from August, 2007 to August, 2009; and WHEREAS, two subdivision applications that were subject to the workforce housing program standards and procedures, provided the opportunity to review the program as intended by See, 10.08.120; and WHEREAS, the deferral of applicability of Article 10.08 allowed City Staff and the Community Affordable Housing Advisory Board (CAHAB) to conduct a Housing Needs Assessment to analyze the local residential real estate market and recommend appropriate policies which final draft was received on March 6, 2012; and WHEREAS, the Housing Needs Assessment recommends on page 42 that the workforce housing regulations not be reinstated; WHEREAS, the subsequent Affordable Housing Action Plan dated May 14, 2012 recommends on page 11 the continued suspension ofthe workforce housing regulations; and WHEREAS, after proper notice, the City Commission held a public hearing on June 3, 2013, to receive and review all written and oral testimony on possible amendments to or repeal of Article 10.08. Section 2 That Section 10.08.030, Bozeman Municipal Code shall be amended to read as follows: 10.08.030. Applicability: A. 1.A developer of a subdivision that includes residential lots for which preliminary plat is submitted on or after Decenibpr .31 20 and which will result in development of ten or more residential lots shall provide a lot or lots for the construction of 0.4 dwelling units per net acre of development for the workforce housing program. Page 2 of 5 320 Multiple developments or projects by the same applicant or responsible party within any consecutive 12 month period on parcels held in contiguous ownership at the time of the initial development that in the aggregate equal or exceed ten residential lots shall be subject to this section, 2.Any site plan including residential condominiums on lots created or annexed on or after Decenibq.r,3J,, 2014 ith a gross projectwi area of more than 5 acres shall provide or shall cause to be provided 0.4 dwelling units per net acre of development for the workforce housing program. Multiple site plans by the same applicant or responsible party within any consecutive 12 month period that in the aggregate exceed a gross project area of 5 acres shall be subject to this section. B. Project Size: 1.Subdivisions with fewer than ten lots or condominium site plans with a gross project area of 5 acres or less: No workforce housing requirements. 2.Subdivisions with ten or more lots or condominium site plans on lots created or annexed on or D ea'ib(,,,r 3 1, 2014, with a gross project area ofmore than 5 acres: 0.4 dwelling units per net acre of development in the subdivision must be dedicated to workforce housing requirements excluding any additional dwelling units approved through a density bonus subject to the provisions of Section 17.02 040. Section 3 That Section 10.08.120, Bozeman Municipal Code shall be deleted: 10.08. 120. Program Review The WEOEfer-ee Hetising Pfegfam esla-blished herein shall be r-eviewed twe yea after beeeming appheable and ameally thereafter-te determine its effeefiveness and te detefffiine if the meehanies ef the pr-egfarn are fe W ta impese an unr,easonable bur-den an either-the pai4ies produeing the heasing er-the an th ufelias4ig it. The ini4al Werkfar-ee 14eiising Pregfam review shall be-V—--V ad by Oetaber- 15, 2014 Getober- i§, for-the applieability pefied ffem Septembei: 1, 20 1 2 Aii st 24P. Section 4 Repealer Page 3 of 5 321 All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 5 Savings Provision The City Commission having found that it is in the public interest to suspend the application of the workforce housing policy to a date certain; this ordinance is intended to release any development from its responsibilities previously incurred under Article 10.08, BMC. Otherwise this ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 6 Severability That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be -unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 7 Codification The provisions of Sections 2 and 3 shall be codified as appropriate in Chapter 10, Buildings and General Regulations, of the Bozeman Municipal Code. All references within the Bozeman Municipal Code shall be revised to reflect the changes in this ordinance. Section 8 Effective Date This ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 3rd day of June, 2013. Page 4 of5 322 SEAN A. BECKER Mayor ATTEST:C S AE a City ler IE 3 APPR. VE A /TO FORM: r O ULLIVA Ci ttorney FINALLY PASSED,ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the 17"' day of June, 2013. The effective date of this ordinance is July, 17, 2013. SEAN A. BECKER Mayor ATTEST. A t",Fro roM1y Syr 0 54r L i S A LMT, CMC Ci e s 0 APPROVED AS TO FORM: t 4 n t a 4 GREG , ULLIVAN City Attorney Page 5 of 5 323