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HomeMy WebLinkAboutChapter 10 Compliance and Asset Limitation Sec. 10.08.050. - Compliance. A. A development meeting the applicability criteria defined in section 10.08.030 is required to provide lots and/or building areas for construction of workforce housing units (WHUs) for homeownership according to this article and may meet its obligations according to one or a combination of the methods established below. B. Workforce housing detached single household home (DSHH) lots and workforce housing attached single housing unit (ASHU) lots shall be sized according to the matrix found in section 10.08.060 and shall be priced at $12.00 per square foot in 2007 and increase annually at the lesser of four percent or the increase in the AMI for that year. Periodic review of the annual increase shall be completed by the city and shall not be greater than the lesser of four percent annually or the increase in the AMI over that time period. 1. Density calculations. a. The required number of for sale WHUs is calculated at 0.4 units per net lot area of development in acres. b. Where the fractional calculated required WHU lots are greater than one-half, the developer shall be required to provide the next full lot. 2. Specified use calculations. a. A minimum of 30 percent of the required WHUs must be DSFHs. b. The remaining required WHUs may be either DSFHs or ASFUs. c. Rounding of units will be in favor of DSFH. 3. Deed restriction. a. The WHUs shall be deed-restricted to meet UDO and workforce housing unit program requirements. b. If the actively marketed DSF lot is not sold within one year of final plat approval, the deed restriction shall be removed. c. If the actively marketed DSFH or ASFU is not sold within six months of receiving an occupancy permit from the city building division, the deed restriction will be removed. 4. Marketing. a. All lots and WHUs shall be actively marketed by the developer and/or builder in the appropriate print media and on the city's website. b. WHU lots shall be actively marketed concurrently with the market rate lots. 5. Methods of compliance. a. The developer shall provide the required number of lots for construction of DSFH and ASFU. The lots shall be actively marketed at the same time as the other lots are marketed and not later than commencing at final plat approval. b. Off-site workforce dwelling unit lots. (1) The developer of a subdivision may provide WHU lots off site for the production of the same number and type of WHUs required for the development of the developer's subdivision. The land must be suitable for construction, without abnormalities and with complete environmental review accepted by the city. It must be economically feasible to develop the required number of units on the site. The site must be appropriately zoned and improved with infrastructure (including curbs, gutters, water, sewer, and storm drainage) to city standards. Excessive aggregation of WHUs shall be discouraged. (2) The developer may opt to build WHUs in another location within the city. When developed in excess of required WHUs or in advance of the development for which the WHUs will be required, such WHUs will be accepted as credit toward required units in a future application. This process is known as "banking units." The banked units must be pre-approved by the workforce housing program administrator. (3) Existing housing may be used to fulfill the requirements defined in Option #1 provided in subsection B.5.b(1) of this section. Such housing must be located within the city, be zoned for residential use, have clear title, be in good repair and available for immediate habitation. The conversion to condominiums of existing rental multifamily housing will not be considered for compliance with the requirements of subsection B.5.b(1) of this section, unless such conversions were completed on or before December 31, 2006. (4) "Bonus lots" gained from reduced park land may not be sold until WHU construction commences. (5) 80 percent of the WHUs in any phase of a multiphase development must be built before the next phase may be commenced, excepting infrastructure installation common to both phases. c. Individualized program. A developer may opt for an individualized program which must provide, at a minimum, the same number of units required under subsection B.5.b(1) of this section. An individualized program will be subject to standard review by city staff, boards, the commission, and the public. There will be one additional public meeting with the city's affordable housing advisory board (CAHAB). This meeting will review: (1) Project feasibility. (2) Overall benefits and drawbacks of the project. (3) Compliance with the affordable housing policy priority needs. The CAHAB will make a recommendation to the city commission on each individualized program. The commission will make the final decision in conjunction with preliminary plat review. d. Cash in lieu. The developer may pay a fee to the city of three times the value per lot of the lots required to be provided at reduced prices in subsection B.5.b(1) of this section. Money received through the cash in lieu option shall be used to provide down payment assistance and dwelling units for the priority populations identified in the city's periodic housing needs assessment and to cover administrative costs. 25 percent of any cash in lieu collected through this article will be set aside for park land acquisition; maintenance and enforcement of park land development requirements after adequate administrative costs are withdrawn. 6. Waiver. A developer may request a waiver form the requirements of this article. A waiver request must be submitted to the community affordable housing advisory board simultaneously with application for preliminary plat subdivision review. The CAHAB will make a recommendation to the city commission on each waiver request, which will make a final decision. (Ord. No. 1710, § 2(17.02.040), 7-16-2007) Sec. 10.08.100. - Buyer qualification. A. Before a household may register in the lottery for the opportunity to purchase a WHU, they must meet the following requirements: 1. Buyer loan pre-qualification. All program applicants must be pre-qualified upon credit evaluation (credit scores from all three credit bureaus or acceptable non-traditional scores) by a city-approved lender. The applicant must obtain a letter of pre-qualification from the city-approved lender that is no more than 90 days old. Once the applicant is pre-approved by the workforce housing program authority and a city approved lender, they will be placed into the lottery. The applicant will remain pre-qualified until selected in the lottery. Once selected, if the applicant's pre-qualification letter is older than 90 days, the applicant will be given one week to obtain pre-qualification again. After one week, the selection lapses and new buyers are selected. If the applicant's letter is less than 90 days old at time of selection, the applicant does not have to obtain re-qualification from a city approved lender. The city shall cooperate with the Road To Home program and local lenders to assist in maintaining the prequalified list. 2. Household income. The current total household income for the household may not exceed 120 percent of area median income for a household of four. For households larger than four, the income cap will be 120 percent for the size of that household. 3. Asset limits. The applicant must verify that they have sufficient liquidity to bridge the gap between the loan amount and the home's purchase price; however, total liquid household assets are limited to $100,000.00 and non-liquid assets are limited to $150,000.00. Applicants are not allowed to own any other homes or residential property anywhere. This provision eliminates any applicants who own rental or investment property. 4. Household size. There will be no minimum or maximum household size limits for the program except as defined by local, state or federal law. 5. Residency requirement. All applicants must be residents of or employees working in Gallatin County or demonstrate that they are moving to the area for a specific job when they apply for the program. 6. Homebuyer's education. Applicants must complete a homebuyer's education program of the city's choice.