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HomeMy WebLinkAbout10.c Affordable Housing Plan 10-01-2019Bridger View Redevelopment Preliminary Plat and PUD Application Section 10.c Affordable Housing Plan Bridger View Affordable Housing Plan 10.01.2019 10.c Affordable Housing Plan Introduction This Affordable Housing Plan is submitted as a component of the Preliminary Plat Application for the Bridger View Redevelopment. The plan may be further clarified as the development progresses with any adjustments captured in the Final Plat Applications. The Bridger View Redevelopment proposes to provide 62 homes on the site of the former Bridger View Trailer Park, adjacent to the Story Mill Community Park. The developer is utilizing an innovative housing model that meaningfully addresses Bozeman’s housing affordability challenge, mixing subsidized homes that households earning from 70-120% of the Area Median Income can afford to purchase with market rate homes. In this mixed-income neighborhood, all units will be the same size and built to the same quality standards, making the market and subsidized units indistinguishable. Not only will the development meet the requirements of the affordable housing ordinance, but the neighborhood will also contribute to our community’s “missing middle” housing stock. According to the City’s Affordable Needs Assessment: “An estimated 5,405 to 6,340 housing units for residents and employees are needed by 2025, or an average of about 770 to 905 units per year. About 50% of the housing needed should be priced below market: 2,775 to 3,255 units (395 to 465 per year). This means ownership housing mostly priced below $350,000 (150% AMI).” This Affordable Housing Plan specifically addresses those homes which will meet the requirements of the City’s Affordable Housing Ordinance. Homes priced at levels that “missing middle” households can afford will be addressed in the accompanying Community Housing Plan. A Community Land Trust entity will be established to permanently maintain the affordability and protect the philanthropic investment for all subsidized homes in the Bridger View neighborhood. The Community Land Trust entity will be described in greater detail in the Community Housing Plan. 1. Number of affordable homes proposed in each affordable home category and number of market- rate homes. The Bridger View Redevelopment proposes 62 total homes, consisting of townhomes, condominiums and single household detached homes. Ten (10) of the homes are condominiums, which are exempt from the Affordable Housing Ordinance (AHO), leaving 52 homes subject to the AHO. Bridger View Redevelopment – Unit Mix Bridger View Affordable Housing Plan 10.01.2019 Condominiums Townhomes/ Single- household Total Lower-priced homes 0 5 5 "Missing Middle" homes 5 21 26 Market rate homes 5 26 31 Total 10 52 62 Five (5) homes will be Lower-priced Homes meeting the Affordable Housing Ordinance (AHO) requirements, with a .2 pay-in as determined by the City’s published chart. 52 townhomes/single household homes x 10% = 5.2 homes required Twenty-six (26) homes will be sold at prices that “Missing Middle” households can afford to purchase (discussed in the Community Housing Plan) with the remaining 31 homes sold at market rates. 2. The number of bedrooms in each affordable home Of the five affordable homes meeting the AHO, one home will be a one-bedroom, 3 homes will be two-bedrooms, and 1 home will be a three bedroom. Bedroom Mix of Lower Priced Homes 1-bedroom 2-bedroom 3-bedroom Lower-priced homes 1 3 1 This unit mix is consistent with the mix of bedrooms within the neighborhood. 3. Anticipated Pricing and deed restrictions The five lower-priced homes meeting the AHO requirements will be priced in accordance with the City’s published AHO pricing schedule. The investment in the affordability of the lower- priced homes will be maintained in perpetuity utilizing a 75-year ground lease (located in Appendix 10.e) managed by the new Community Land Trust as described in the Community Housing Plan. 4. Location of affordable homes in the development (lots in the plat or units within a site plan) Lower-priced homes will be intermixed with the townhomes and detached homes, throughout the site and evenly distributed by phase. Lower-priced homes will not be included within the condominium units. However, the different classification of homes will be evenly distributed throughout the neighborhood and built the same so that all the homes are equivalent and Bridger View Affordable Housing Plan 10.01.2019 indistinguishable. The final location of the Lower-priced homes meeting the AHO will be identified as part of the Affordable Housing Plan submitted with Final Plat. 5. Timing of delivery of the affordable homes in relation to the market-rate homes in the development HRDC is constructing the infrastructure and homes in the Bridger View neighborhood in three phases. The Lower-priced Homes meeting the AHO will be evenly distributed by phase to be delivered concurrently with the market rate homes. The final location of the AHO homes will be identified as part of the Affordable Housing Plan submitted with Final Plat. 6. Marketing plan describing how affordable homes will be offered to the public; The development of the Bridger View neighborhood includes the establishment of a new CLT stewardship entity to preserve the investment in affordability. This CLT will actively market the Lower-priced homes to income-qualified residents using best practices, including homeownership education to help buyers understand the unique financing and ownership structure of the community land trust model. 7. Plan for construction of affordable homes in phased developments. HRDC is constructing the infrastructure and homes in the Bridger View neighborhood in three phases. The Lower-priced Homes meeting the AHO will be evenly distributed by phase to be delivered concurrently with the market rate homes. The final location of the AHO homes will be identified as part of the Affordable Housing Plan submitted with Final Plat. 8. Any other information that is reasonably necessary to evaluate the compliance of the affordable housing plan with the requirements of the affordable housing ordinance. The proposed project meets the requirements of the AHO, while substantially exceeding it through the accompanying Community Housing Plan. The Bridger View neighborhood will make a meaningful contribution to Bozeman’s Community Housing needs through the inclusion of homes that households earning median incomes (between 80 and 120% of AMI) can afford to purchase. In addition to providing quality homes that residents can afford, the development team is committed to keeping the lower-priced and missing middle homes affordable in perpetuity via a new Community Land Trust entity, ensuring that the investments necessary to achieve affordability endure for generations.