Attachment A Tallahassee Affordable Housing Advisorv Committee Report 20 15

----CITY OF

ALLAHASSEE

Affordable Housing Advisory Committee

Report of Recommendations 2015

TABLE OF CONTENTS

Letter from the Affordable Housing Advisory Committee Chair

Executive Summa ry

Analysis and Recommendations

Documents Reviewed

Exhibits:

A. Synopsis of Inclusionary Housing Ordinance Review B. Summary of Affordable Housing Advisory Committee Recommendations C. Notice of Public Hearing to Adopt the Final Report

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October 30, 2015

Dear Mayor and Commissioners:

On behalf of the Tallahassee Affordable Housing Advisory Committee it is a pleasure to submit our housing recommendations for the 2016-2019 Local Housing Assistance Plan and in support of existing City policies. The Committee spent many hours in focused deliberation before unanimously approving the recommendations we send fonvard now for your consideration and approval. We took into consideration existing City regulations, policies, stafrs concerns, and limitations involved in implementation.

We feel these recommendations will allow the City to make gains in providing for the housing needs of those most affected, while operating within its budget and regulatory constraints. We plan to be available at the City Commission meeting when the recommendations are taken up in order to address any questions you may have.

Thank you so much for allowing us to serve our community and the City in this way. We take great pride in the product we are sending forward to you. On behalf of the Affordable Housing Advisory Committee we extend our deep appreciation for your service and your commitment to affordable housing in Tallahassee.

Sincerely,

Bill Goff Affordable Housing Advisory Committee Chair

Executive Summary

Florida State statute 420.9076 requires that each jurisdiction in Florida receiving State Housing Initiatives Partnership (SHIP) funds shall appoint an I I-memb er Affordable Housing Advisory Committee (AHAC). Each member represents a different role in the affordable housing industry. The AHAC is mandated to review Comprehensive Plan Elements , City Ordinances, Land Development Regulations and City Policies and Procedures to identify regulatory barriers to affordable housing; and to recommend incentives to create more affordable housing. The statute requires the AHAC to produce a report to submit to the City Commission by December 3 I of the year before the Local Housing Assistance Plan is due every three years , or forfeit annual allocations of SHIP funds.

The AHAC met nine times between April 2014 and November, 20 15. Committee members reviewed City documents as well as the recommendations made by the 2008 and 2012 AHA Cs. From the discussions at each these meetings, the AHAC developed I 9 recommendations for the 2015 Report of Recommendations. These recommendations address the identified barriers to affordab le housing, which include both regu latory and policy barriers.

During their public meetings, the AHAC members discussed current issues and ex1stmg barriers related to affordable housing need, and the production of affordable housing in Tallahassee. Committee members researched issues , developed issue papers or issue statements, developed recommendations and made presentations to the Committee. In addition, the City Housing Division ' s Special Projects Coord inator , and the City's Director of Economic and Community Development , made presentations to the Committee. The AHAC considered all information presented before voting on recommendations.

Summary Table of Recommendations Each recommendation was discussed and voted on by committee members. Each suggested recommendation in the State Statute 420.9076(4)(a-k) F.S. was considered and integrated into the AHAC recommendations or rejected as a strategy for Tallahassee. Exhibit B is a summary of the 2015 recommendat ions to improve and increa se affordable housing production.

Background. In 2007, the state legislature revived the requirement to establish an Affordable Housing Advisory Committee (AHAC) and developed new duties for the committee. The legislation required cities and counties receiving State Housing Initiatives Partnership (SH IP) funds to appoint an Affordable Housing Advisory Committee or their SHIP funding would be withheld. The Advisory Committee would be required to "review the established policies, procedures , ordinances, land development regulations and the comprehensive plan and recommend specific actions or initiatives to encourage or facilitate affordable housing whi le protecting the ability of the prope11y to appreciate in value." (Section 420.9076, F.S.) In addit ion, sections 420.9076(4)(a-k) , F.S., require the AHAC to consider certain provisions to recommend to the local jurisdiction.

Members of the AHAC The following people were members of the Affordable Housing Advisory Committee during the course of the discussion of recommendations in 2012. The members represented the following categories in which they are actively engaged with affordable housing:

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I. Residential home building industry: 2. Banking or mortgage banking industry: 3. Area of labor within the home building industry: 4. Advocate for low-income persons: 5. For-profit provider of affordable housing: 6. Not-for-profit provider of affordable housing: 7. Real estate professional: 8. Local planning agency representative: 9. Resident of the jurisdiction: 10. Representative of employers in the jurisdiction: 1 I. Representative of "essential services personnel"

as defined by the jurisdiction:

Mr. Bill Goff Mr. Vereen Smith Mr. Carl Calhoun Ms. Ellen Piekalkiewicz Mr. Richard Roberts Ms. Jovita Woodrich Ms. Ann Cleare Mr. Bob De yle Vacant Mr. Jame s McShane

Mr. Kendall Randolph

In 2014 and 2015 , the AHAC held nine public meetings prior to the adoption of the report (March 4, June 25, and September 24, 2014; and January 14, April 22 , May 27, June 24 , August 26, and September 22, 2015) . Meeting minutes are available on the City ' s OnBase system and by public records request in the Office of the Treasurer-Clerk.

At each AHAC meeting , committee members presented on issues they had identified during their review of the City documents, discussed affordable housing needs , and identified baniers to the production of affordable housing. Over the course of the discu ssions , committee members formulated proposed recommendations that they believed would improve the production of affordable housing if implemented by the City Commission. The AHAC discu ssed the recommendations that would potentially be included in the final report and then voted on which recommendations to support.

Public Hearing: Adoption of the Final Report The AHAC officially adopted the report by affirmative vote of a majority of the membership at a public hearing on October 21, 2015. Notice of the public hearing to adopt the final report was published in the Tallahassee Democrat (Exhibit C) and posted in City buildings and on the City websit e. The notice contained a summary of the recommendations to create mor e affordable housing. The notice also stated where interested persons could obtain a copy of the final report. The final report was sent to the Directors of the Public Work s Departm ent, Planning Department , Growth Management department , Economic and Community Development Department , City Attorney ' s Office, and the Office of Budget and Policy , for review of the recommended changes to policy-related and regulatory documents.

Pfau for Implementation of Recommendations At the December 2, 2015 City Commission meeting , Commissioner s will be asked to accept the submitted report to comply with the state-mandated December 31, 2015 deadline. The City Commi ssion must review and discuss the AHAC's recommendations and vote to adopt those recommendations they plan to implement by March 31, 2016. City Commissioners may adopt any recommendations into policy or regulatory documents in the 2016 implementa tion phase. Concurrently , the Local Housing Assistance Plan (LHAP) , the document that governs the use of SHIP funds , would be amended to add any new affordabl e housing incentives. Copies of the

final report, any amendments made to City documents and LHAP, and associated City Commission meeting minutes must be submitted to FHFC by May 2, 2016.

The committee members reviewed the City of Tallahassee's Comprehensive Plan Elements, Land Development Regulations, City Ordinances , City Commission Policies, and other City documents. Members discussed ways to increase the availability and production of affordable housing.

ANALYSIS AND RECOMMENDATIONS

Review of Requirements in Sections 420.9076(4)(a-k) Florida Statutes

These provisions require the AHAC to consider ce1tain incentives to recommend to the local jurisdiction. Most of these incentives have already been implemented by the City of Tallahassee. The Affordable Housing Advisory Committee reviewed each of these provisions and , where applicable, identified issues and formulated recommendations.

a) The processing of approvals of development orders or permits, as defined in s. 163.3164(7) and (8),for affordable housing projects is expedited to a greater degree than other projects.

This requirement is addressed in adopted City Commission Policy 710. As stated in Section 7 I 0.03 of this policy, the City Commission has directed that certified affordable housing projects will be given priority status in the land use/growth management process. The policy states that the Growth Management Department will give first priority to certified affordable housing projects in the processing of applications for permits, approvals and certificates issued by Growth Management , as well as limited pmtition subdivisions and Type A site plans.

b) The modification of impact-fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing.

The only impact fee charged by the City of Tallahassee is the transportation concurrenc y fee. The City's adopted Inclusionary Housing Ordinance states that inclusionary housing units are not subject to concurrency review, and therefore are exempt from transportation impact fees. The City also charges fees for water and sewer services. The City may exempt affordable homeownership and rental housing from the payment of water and sewer fees , including the water systems charge , sewer systems charge, tap location fee, and water and sewer tap fees. Instead of the owner or developer of affordable housing paying these expenses, the City pays for them with a forgivable loan using General Revenue funds.

c) The allowance of flexibility in densities for affordable housing.

Tallahassee's Inclusionary Housing Ordinance (!HO) implements policies set forth in the Hou sing and Future Land Use elements of the Comprehensive Plan. Provi sions in the Comprehensive Plan a11d Land Development Regulations set criteria for granting density bonuses in exchange for the construction of affordable housing units. The IHO requires that no less than 10% of the dwelling units in specified large scale developments must be affordable units to qualify for any density bonus. Developers who agree to build affordable housing units under the Inclusionary Housing Ordinanc e may increase the density of the development up to 25% provided that there are no negative environmental impacts or other negative consequ ences.

Tallahassee Affordable Housing Advisory Committee Report 2015

r n addition to the density bonus, other incentives for providing inclusionary housing include: • Design .flexibility including

• choice of housing type , and • alleviation of setback, lot size, buffering, and screen requirements

internal to the development. • Expedited development review. • Reduced transportation concurrency requirements.

The City has also created a Multi-Modal Transportation District (MMTD) in the central core of the City that changed land development regulations and zoning to encourage mixed-us e, higher density development in this area, close to commercial and emplo yment center s.

Issue: Tallahassee's Inclusionary Housing Ordinance has had a limited impact.

Implementation of the IHO has not made a significant contribution to the supply of moderate income housing in the City of Tallahassee. The demand for affordable housing among households in the moderate family income category , defined as cost-burdened household s with incomes of 80+ to 100 percent of area median income, was 5,852 households in 2013 (data are not available for the 70-100 percent range). Development s subject to the IHO have produced only IO units of rental housing to date. All other developments with preliminary plats approved after October 1, 2005, located within areas subject to the IHO, were exempt becau se their DRi s, PUDs , or development agreements had been approved prior to that date . Up to 417 additional units of inclusionary housing may be built pursuant to development agreements executed since October I , 2005, for the Evening Rose, Welaunee Canopy , and Welaunee Toe East development s. At best, no more than 1, 100 to 1,200 additional owner-occupied inclusionary housing units could be built on vacant or significantly under-develop ed land within the areas designated under the !HO. Thus with full implementation of the current IHO, at best the unmet need based on 2013 estimates will likely exceed 3,800 moderate income households. Reducing the development size threshold from 50 unit s to 20 would likely increase the maximum potential supply by no more than 12 inclusionary housing units.

Recommendation: The AHAC recommends the City Commission endorse and encourag e the County Commission adopt an inclusionary housing ordinance that is comparable to the City ' s inclusionary housing ordinance.

Recommendation: Endorse adoption of an inclusionary housing ordinance by Leon County that applies similar threshold s and requirements to those in an amended Tallahassee IHO.

Recommendation: Amend Sec. 9-244(t) of the IHO to eliminate exemption for Lake Protection areas on the FLUM and to specify that the IHO applies to developments within the Lake Protection Node zoning district but not to other areas within the Lake Protection future land use category.

Recommendation: Amend Sec. 9-245(c) to eliminate the options for locating inclusionary housing outside the primary development and to apply the requirement for dispersal of affordable unit s throughout the development to all areas, not just the MMTD.

Recommendation: Amend Sec. 9-247(a)(5) to spell out the specific requirements for maintaining rents within the standards set in 9-245(i) in this section rather than leaving that to be negotiated as part of the inclusionary housing plan accompanying the site plan and preliminary plat. See those for Evening Rose.

Recommendation: Amend Sec. 9-249 to require that status reports be prepared at least every two years so that this is brought to the attention of the City Commission periodically.

Recommendation: Amend the lnclusionary Housing Ordinance to explicitly direct staff of the Tallahassee-Leon County Planning Department to maintain a map of the areas to which the IHO applies and to require staff to (a) review the designated "selected census tracts" as defined in sec. 9-241 annually based on the most recent American Community Survey (ACS) data published by the U.S. Census Bureau and (b) revise the map as necessary within one month of publication of the ACS data.

Recommendation: Amend the Inclusionary Housing Ordinance to require inclusion of conditions in development agreements executed under the ordinance that "trigger" construction of inclusionary housing units stipulated in the development agreement.

Recommendation: Staff of the City Housing Division shall initiate action to construct up to I 0 inclusionary housing units on the 0.25 acre tract in the Evening Rose Phase II development that was donated to the City by the developer in August 2011 for this purpose.

d) The reservation of infrastructure capacity for housing for very-low-income persons, low-income persons, and moderate-income persons.

The City of Tallahassee currently uses this incentive by allowing developers to buy storm water capacity credits if their property contributes stormwater to one of the regional stom1water facilities. However , this incentive is not widely used for the following reasons: 1) there are few properties which flow into the regional facilities with remaining capacity; and 2) capacity credits tend to be more expensive than treating storm water on-site. Infrastructure capacity was not identified as a barrier to affordable housing.

e) The allowance of affordable accessory residential units in residential Zoning districts.

As provided in Land Development Regulation Chapter 10 Zoning, Article VII Supplementary Regulations, Section I 0-412, the City allows attached and detached accessory dwelling units in residential zoning districts.

t) The reduction of parking and setback requirements for affordable housing.

The IHO provides the following incentives for the construction of affordable housing units: design flexibility, including choice of housing type; and the alleviation of setback, lot size , buffering, and landscaping requirements internal to the development.

In addition , the City reduced parking requirements within the Multi-Modal Transpo1tation District (MMTD), which allows higher density residential land uses.

g) The allowance of flexible lot configurations, including zero-lot-line configurations for affordable housing.

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As stated above, the IHO allows for flexible lot configurations. Within the MMTD , many of the reductions, including setback reductions , were adopted for all development, to encourage cost savings related to higher densities.

Issue: Allow flexibility in lot sizes resulting from resubdivision.

In reviewing the City's Subdivision regulations, the AHAC identified an existing subdivision requirement that limited lot sizes resulting from resubdivisions. By allowing smaller lot sizes through resubdivision, the potential for developing affordable housing , with lower land costs , is increased.

Recommendation: Revise Section 9-62(d) of the Land Development Code as follows: Lots created by resubdivision of an existing lot in a recorded or unrecorded residential subdivision zoned residential preservation (RP- I or RP-2), single family detached residential district (R-1 or R-2) or planned unit development (PUD) within the residential preservation future land use category shall be no less than the minimum lot size of all other lots in the subdivision. If a subdivision was developed in phases , the minimum lot size shall be determined by the lots in the phase affected by the proposed resubdivision.

h) The modification of street requirements for affordable housing.

The AHAC does not want affordable housing in Tallahassee to have different standards than other housing with regard to street requirements. Curbs , gutters , and sidewalks are important for everyone. Fire trucks still need the same mobility in affordable housing developments as in other developments. The AHAC decided not to recommend the modification of street requirements for affordable housing.

i) The establishment of a process by which a local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing.

This process is established in Housing Element Policy 2.1.6. This policy states: "The City shall continue to review its existing rules and regulations, including land use policies, to determine whether or not they have an unwarranted adverse impact in the provision of affordable housing. In addition , the City will institutionalize, as part of its proposed ordinance review process , a review which will identify the impacts, if any, of proposed ordinances, rules, land development codes , policies , programs, and services on the production of new or rehabilitated affordable housing projects.

j) The preparation of a printed inventory of locally owned public lands suitable for affordable housing.

The City ' s inventory of locally owned land that may be used for affordable housing is maintained by the City's Property Management Department. The inventory of city-owned land suitable for affordable housing is available to the public on the City website. The Property Management Department website links to a map with a text box showing the number of properties designated for affordable housing.

Issue: The inventory of locally owned public lands should be more accessible to the public.

The AHAC discussed this issue and agreed that there were too many steps involved in obtaining this information on the City's website. The inventory should be I) updated on a regular basis and 2) more accessible to the public.

Recommendation: Require the Real Estate department to provide , via the internet , an up-to­date list of surplus properties suitable for residential construction or recon struction.

k) Tlte support of development near transportation ltubs and major employment centers and mixed-use developments.

The City of Tallahassee supports mixed -use development, as evidenced in the Future Land Use and Housing Elements of the Comprehensive Plan. As stated above , the MMTD encourages higher-density development and emphasizes alternative transportation such as buses , bicycles, and walking to increase transportation options. Low-income citizens living within the MMTD have the potential to save money by using Star Metro, the City bus. More affordable housing located within the MMTD, near transportation hubs, would be clearly beneficial for low­income residents. Redevelopment within the City should not , however , result in the elimination of affordable housing

Issue: The City could do more to encourage infill development and redevelopment that results in affordable housing, and preserves existing affordable housing.

Recommendation: Add policies in the comprehensive plan Future Land Use and Housing elements and in the IHO to require and/or provide additional incentives for the provision and preservation of affordable housing in infill and urban redevelopment projects , especially within the Multi-Modal Transportation District (MMTD).

Additional Recommendations.

A. Affordable Housing Trust Fund

The Affordable Housing Trust Fund is a non-recurring funding source that is used to develop affordable housing in Tallahassee. Because these funds are limited , they are used to leverage other public and private financing and are typically used for bridge loans. Historically , the AHTF has been used to support and promote homeownership as a community development tool. Through its discussions , the AHAC identified some concerns related to the use of this fund , including the need to publicize AHTF policies , procedures and financial statement ; the need for a qualified team to review projects proposing to use trust fund dollar s; greater oversight of project implementation , and an annual review.

Issue: Publish the AHTF policies and financial statements, provide increased oversight with regard to the use of AHTF dollars, and conduct an annual review.

Recommendation: The Affordable Housing Trust Fund (AHTF) policy , procedure s, and financial statement should be published on the Housing Division website and/or linked to a corresponding website.

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Recommendation: As the Fund is a limited resource a comprehensive analysis of the scope , nature , and feasibility of any project should be executed by a qualified team. The analysis should include , but not limited to, a historical review of past AHTF projects, a determination that other funding sources are not available for the project , the ability of the participants to successfully execute the project and re-pay the loan in full in a timely manner.

Recommendation: As the custodian for the Affordable Housing Trust fund the City needs to provide a greater degree of oversight of the implementation of the approved projects.

Recommendation: The City Commission shall review annually the status of the approved Affordable Housing Trust Fund and the funding allocations.

B. Southwood ORI Affordable Housing Account

Most of the Southwood subdivisions are covered by a 1999 Development of Regional Impact (ORI) fina l development order (DO) issued in April 1999. Under that development order, St. Joe/Arvida L.P. agreed to "pay a voluntary housing assistance fee of $160 for each single­family residential unit constructed and developed for sale on the ORI property. " St. Joe Company deposits funds annually into an escrow account at SunTrust Bank based on the number of lots platted each year. Pursuant to the DO, housing assistance funds may be used for (1) the acquisition of land; (2) a program for down payment assistance to Low Income (LI) or Very Low Income (VU) homebuyers; (3) payment of points for LI or VLI homebuyers; (4) the rehabilitation of existing LI or VLI housing; or (5) construction of new LI or VLI housing by private Deve lopers or not-for-profit housing agencies." The DO also stipulates that funds are to be disbursed "to a program(s) mutually acceptable to the City, the County , and the Developer. " However, the DO further states that " If agreement on that program(s) is not reached within one year of the date of receipt of the fee proceeds to be disbursed, then the local government of jurisdiction , after public comment , shall determine how the funds are disbursed to encourage affordable housing in proximity to the project [emphasis added]." The City has not requested use of any of the funds to date. The account had a balance of$244 ,192 as of June 30, 2015.

Issue: The management of in-lieu payments from the Southwood ORI development agreement should be improved.

Recommendation: Staff of the City Housing Division and the City-County Planning Agenc y shall work with the Tallahassee Affordable Housing Advisory Committee to develop a strategy for utilizing the funds deposited in the Southwood ORI affordable housing escrow account and implement it as expeditiously as possible.

C. Preservation of the Existing Housing Stock to Create Affordable Housing, with Emphasis on Extremely Low Income and Supportive Housing

In Tallahassee and Leon County , a tremendous gap currently exists between the extremely low­income (ELI) population and the number of truly affordable rental units (with no more than 30% of income going to rent) for that ELI population. Instead of paying under 30% of income to rent , 87% of the 19,258 ELI households in Leon County pay over half their income to housing. An appropriate rent for this population would be $348 , but the median rent in Leon County is $977. Currently, there are 17,691 ELI households in Leon County paying more than $348 per month for rent. "Cost burden " is the percentage of household income spent for

mortgage costs or gross rent. According to HUD programs, households spending more than 30 percent of income for these housing costs are considered to be "cost-burdened." Households spending more than 50 percent are considered to be "severely cost-burdened." Housing is generally considered to be affordable if the household pays less than 30 percent of income. 1

This shortfall is inconsistent with the City's Comprehensive Plan, which gives priority to "leverage and coordinate resources to preserve affordable housing and quality of life. " Increasing the supp ly of supportive housing, and other types of affordable housing, can stabil ize and revitalize neighborhoods that are affected by blight and vacancy, improve broader neighborhood property values, and provide a cost -effective, permanent so lution to homelessness (when compared to temporary shelters) that can save up to $36,000 a year per person. Increasing the supp ly of suppo1tive housing and affordable ELI housing makes tangible improvements on the lives of tenants, as they have increased funds to buy necessary food and products and improved physical and mental health. Simply put, people in support ive, affordable housing live more stable and productive lives.

To achieve these goals , the City should focus on preservation and rehabilitation of the existing housing stock . These activities have shown to be a cost-effective means of providing affordable housing. Generally , the cost per unit for rehabilitating an affordable unit is less than the cost of building new affordable units. Suppo1ting rehabilitation also allows housing providers to serve the lowest income groups , including ELI households and persons in need of supportive housing.

Issue: The City should prioritize the creation of affordable supportive housing and affordable housing for Extremely Low Income persons and families, through preservation and rehabilitation.

Recommendation: The City should focus on and prioritize redevelopment and the rehabilitation of the existing housing stock for affordable purchase and rental housing.

Recommendation: The City of Tallahassee shall promote and facilitate the rehabilitation of existing properties to provide permanent supportive housing 2 and/or extremely low-income affordable housing that explicitly serve low-income, homeless and spec ial needs populations. 3

1 The Shim berg Center for Affordable Housing, University of Florida.

2 Permanent supponive housing, as defined in 24 CFR Section 578.3, means pe1manent housing in which supportive services are provided to assist homeless persons with a disability to live independently.

3 Extremely-low-income persons, as defined in Section 420.004(9), Florida Statutes, means one or more natural persons or a family whose total annual household income does not exceed 30 percent of the median annual adjusted gross income for households within the state. The Florida Housing Finance Corporation may adjust this amount annua lly by rule to provide that in lower income counties, extremely low income may exceed 30 percent of area median income and that in higher income counties, extremely low income may be less than 30 percent of area median income.

Tallahassee Affordable Housing Advisory Committee Report 2015

Documents Reviewed

1. C ity Commission Policies

2. City Code of Ordinances

3. Land Development Regulations

4. The 2030 Comprehensive Plan

5. Local Housing Assistance Plan, 2013-2016

6. Consolidated Plan 2010-2015

7. Annua l Action Plan 2013-2014

8. Concurrency Management System Policy and Procedures Manual

9. Community Redevelopment Area Plans

Exhibit A

Synopsis of lnclusionary Housing Ordinance Review

Robert Deyle , Member, Tallahassee-Leon County Planning Commission 4

Tallahassee's Inclusionary Housing Ordinance (IHO) implements policies set forth in the Housing and Future Land Use elements of the Comprehensive Plan. Future Land Use Policy 2.1.14 defines criteria for granting density bonuses in exchange for the construction of affordable housing units. It requires that no less than I 0% of the dwelling units in a development must be affordable units to qualify for any density bonus. Joint Housing Policy l .2.2[JH] cross references that policy. Tallahassee Housing Policy 2.1.4 also cross references the density bonus policy in the Future Land Use Element as well as defining other developer incentives to promote affordable housing production.

Tallahassee Housing Policies 1.2.4 through 1.2.6 [H] provide the detailed framework for the city's IHO including the following:

• Designation of the target area for the IHO as selected census tracts where the median family income is higher than the "median family income" for Leon County ;

• Identifying in-lieu payments as an alternative to providing affordable housing units within the primary development for "small and medium size developments ;"

• Requiring provision of affordable housing by all Planned Developments and Developments of Regional Impact (DRis).

The IHO includes the following substantive objectives (Sec. 9-240 Ta llahassee Land Development Code):

• Increase affordable home ownership opportunities within the city;

• Stimulate the private sector production of housing available to families within the range of 70 percent to I 00 percent of the area median income, or lower; 5

• Facilitate and encourage development that includes a range of housing oppo11unities through a variety of residential types, forms of ownership, and home sales prices; and

4 Dr. Deyle is the Local Planning Agency's ex officio representative on the AHAC. The Local Planning Agency has not reviewed this report by Dr. Dey le.

5Households earning less than 70 percent of the area median family income qualify as eligible households only under conditions stipulated in section 9-241. Amendments to the ordinance adopted in February 2007 (Ordinance 07-0-07 AA) added these provisions and added a detailed sales price methodology.

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• Encourage the even and widespread distribution of affordable housing opportunities throughout all p01tions of the community, including within new developments in fastest growing areas of the community.

The strategies in the IHO designed to achieve these objectives apply to new development projects with 50 or more residential units intended for sale and owner occupancy within the following areas (see Figure 1 ):

• The urban services area, located within selected census tracts where "the median family income is greater than the countywide median , based upon the most recently published Census or HUD data" (sec. 9-241; 9-242) ,

• Zoning districts that implement the planned development future land use category, and

• Developments of regional impact (DRls).

The requirements applicable to these developments include (Sec. 9-245):

• Providing a minimum often percent of the units at prices no greater than the maximum purchase price and with purchase prices averaging not greater than the average sales price.

• Locating the required units within the primary development, at an alternative location within the same census tract or, in a contiguous selected census tract, so long as the off­site location is within the urban service area. Developments within the planned development future land use category and DRis must locate the required units within the primary development . Inclusionary units for development projects within selected census tracts in the Multi-Modal Transportation District (MMTD) must be dispersed throughout the development with no more than two contiguous parcels designated for inclusionary units.

• As alternatives to providing inclusionary housing units , the owner /developer of projects within selected census tracts that are not within Planned Development zoning districts or DRis, may

o pay a fee in-lieu to the city at rates specified in the ordinance ,

o provide 1.5 multi-family rental units per each owner-occupancy unit not otherwise provided,

o provide to the city or its designated agent , one residential lot per each owner ­occupancy unit not otherwise provided

• Exempt projects include those detailed in section 9-244.

The ordinance also includes incentives for providing inclusionary housing (sec. 9-246) including

• A 25 percent density bonus for any development providing inclusionary housing - this applies both to those developments required to provide inclusionary housing as well as other developments located within the selected census tracts that choose to do so voluntarily (sec. 9-242(d)).

• Design flexibility including choice of housing type, alleviation of setback , lot size , buffering, and screen requirements internal to the development

• Reduced parking requirements within the MMTD

• Expedited development review

• Possible deviations to development standards

• Reduced transportation concurrency requirements

The City Manager is required to present a status report to the City Commission on implementation of the IHO every two years or as needed.

Findings

1. The City of Tallahassee has not routinely updated the areas to which the IHO requirements apply as directed by section 9-241. Planning staff, in consultation with housing staff have fina lized an update based on the U.S. Census Bureau's American Community Survey (see Figure 1 ).

2. The City Manager has apparently provided few if any status reports to the City Commission since the ordinance was adopted in October 2005, despite direction to do so in section 9-249. Staff reports that this is because ofso little activity, but that in and of itself is important information.

3. The 2007 amendments to the ordinance deleted reference to the Critical Planning Area (CPA) and Target Planning Area (TPA) and substituted zoning districts that implement the Planned Development future land use category.

4. The principal household income target range of the ordinance , 70 to 100% of the area median income (AMI) , extends 10 percent lower than the moderate income category used by the Florida Housing Data Clearinghouse, i.e. 80+ to 100% AMI.

Tallahassee Affordable Housing Advisory Committee Report 2015

5. The extant demand for affordable housing among households in the moderate family income category, defined as cost-burdened households with incomes of 80+ to I 00 % AMI , was 5,852 households in 2013 (see Tab le 1).6

6. Only one residential development within the area designated by the IHO has constructed new inclusionar y housing units since adoption of the ordinance by the City Commission on October 1, 2005: Evening Rose Phase I bui lt 10 two-bedroom rental townhouses pursuant to a development agreement executed January 22 , 2007. In a subsequent agreement adopted by the City Commission (08-31 -1 1 ), the developer donated a 0.25 acre parcel designated for inclusionar y housing in the Phase II PUD as compensation for some relief from required concurrency mitigation payment s. The City was to build inclusionary housing on that parcel , but no units have been built to date.

7. All other developments with preliminary plats approved after October I , 2005, located within areas subject to the !HO, were exempt because their DRis , PUD s, or development agreements (DAs) had been approved prior to that date (see Figure 2 and Table 2).

8. Most of the Southwood subdivisions are exempt from the !HO because they are covered by a 1999 Development of Regional Impact (ORI) final development order issued in Apri l 1999.

a. Under that development order, St. Joe/Arvida L.P. agreed to "pay a voluntary housing assistance fee of$ I 60 for each single-family residential unit constructed and developed for sale on the ORI proper ty" (sec. 16.c.).

b. According to Abraham A Prado, Director of Development for The St. Joe Company , those funds are deposited annually into an escrow account at SunTrust Bank based on the number of lots platted each year. ( ema il to Greg Harden , 9/30/ 15)

c. Prado reports that the city has not requested use of any of the funds to date.

d. The account had a balance of $244 , 192 as of June 30, 20 15.

e. Section 16.c. of the DO also stipulates that funds are to be disbursed "to a program(s) mutually acceptable to the City, the County, and the Developer. " However, the DO further states that "If agreement on that program(s) is not reached within one year of the date of receipt of the fee proceeds to be disbursed , then the local government of jurisdiction, after public comment , shall determine how the funds are disbursed to encourage affordable housing in proximity to the project."

f. The DO describes possible uses as follows: "The program(s) may include but need not be limited to: ( 1) the acquisition of land ; (2) a program for down payment

6 "Cost-burdened" households pay more than 30% of income for rent or mortgage costs (Florida Housing Data Cleari nghouse, 20 I 5). In 2013 , 37,091 Tallahassee households (49%) paid more than 30% of income for housing. By comparison, 43% of household s statewide were cost-burdened. A total of 22,125 hou seholds in Tallahassee (29%) paid more than 50% of income for housing in 20 13.

assistance to Low Income or Very Low Income homebuyers; (3) payment of points for LI or VLI homebuyers; ( 4) the rehabilitation of existing LI or VLI housing; or (5) construction of new LI or VLI housing by private Developers or not-for-profit housing agencies."

9. Up to 417 additional units of inclusionary housing may be built pursuant to development agreements executed since October 1, 2005:

a. Up to 10 units to be built as part of Evening Rose Phase II on land owned by the city pursuant to the January 2007 development agreement

b. 126 owner-occupied units, 189 rental units, or some combination of the two pursuant to the Welaunee Canopy PUD agreement approved April 2011.

c. 145 owner-occupied units, 218 rental units, or some combination of the two pursuant to the Welaunee Toe-East PUD agreement approved February 2014.

I 0. No more than l , 172 additional owner-occupied inclusionary housing units could be built on vacant or significantly under-developed land within the areas designated under the IHO (see Table 3) based on maximum allowable densities without consideration of possible site-specific development constraints. Applying the IHO multiplier of 1.5 for rental units, the maximum could extend to 1,758 additional rental inclusionary housing units.

11. Reducing the threshold for applying the IHO requirements from developments with at least 50 new owner-occupied residential units to at least 25 would yield a maximum of 8 additional inclusionary owner-occupied residential units ( 12 rental) from property parcels of at least I 0 acres located within the areas designated under the IHO. This lower threshold would capture two additional "under-developed" lots cu1Tently containing only one or two single-family residences.

a. Four inclusionary units from a 12-acre parcel with RP-I zoning

b. Four inclusionary units from an 11-acre parcel with RP-1 zoning

12. All three of the executed development agreements that commit developers to building inclusionary housing units have included density bonuses pursuant to the provisions of the IHO: (I) Evening Rose , (2) Welaunee Canopy PUD, and (3) Welaunee Toe-East PUD.

Other Questions to Answer

1. What outcomes have other communities achieved with similar inclusionary housing initiatives? How do those initiatives differ from the Tallahassee IHO?

2. What initiatives have other communities taken to promote production of new inclusionary housing and/or preservation of existing affordable housing through infill and urban redevelopment projects?

Tallahassee Affordable Housing Advisory Committee Report 2015

3. How do the pricing formulas in the IHO ensure that the cost burden is not too large?

References Cited

Florida Housing Data Clearinghouse. 2015. Retrieved from http: //flhousingdata.shimberg.ufl. edu/ index.html.

Table 1: Households by Income and Cost Burden, Tallahassee, 2013

Amount of Income · Pa.id for Hous ing

Household Income as Percentage of Area Median Income 0-30 % 30-50 % sm~or more

<=30% AM I 1100 S32 1~717

30.01-50% AMI 1.!70 ,., ... ,..,c t:. i"': ... ~ 1~7

50,01-80% AMI .!·lt. 9 6C3? 1€~8

8-0.01 +% AMI 32 172 C"'... L .... ..., '"'O- E02

To tal '.?8$$ 1 J.!.~5€ 2212~

Source: Florida Housing Data Clearinghouse (2015).

Table 2: Residential Subdivisions of 50 of More Dwellin g Units with Preliminary Plat s Approved Since October 1, 2005

Number of Residential Units IHO Affordable Housing

Subdivision Permitted Status Applicability Units Built Southwood 565 Un impro ved No - 1999 ORI 0 Unit 35 Maj. Mod.

Ox Bottom Crest 183 Unimpro ved No -2004 PUD 0

Bull Run Unit V and 167 t>50% unit s built No -200 2 DA 0

VI

Bull Run Unit V 124 Built out No - 200 2 DA 0

Replat

Southwood Un it 32 101 <50% units built No - 1999 ORI 0

Eve nin g Rose 99 <50% units built Yes - 2007 DA 10

Southwood Un it 29 89 Built out No - 1999 ORI 0

South wood Unit 31 69 t>50% unit s built No - 1999 ORI 0

Ox Bottom Meadows 67 Unimpro ved No - 2004 PUD 0

Replat

Southwood Unit 30 56 Built out No - 1999 ORI 0

Southwood Unit 26 56 Built out No - 1999 ORI 0

Tallahassee Affordable Housing Advisory Committee Report 2015

Table 3: Maximum Inclu sionary Hou sing Pot ential of Remainin g Vacant Land under Current Inclu sionar y Hou sing Ordinance Pro visions

Maximum Number of Potential

Maximum Potential Owner-Occupied lnclusionary

Pow erhou se (Welaun ee) 900 2, 172 Heel Critical Area Plan

271

St. Joe/ Arvida 783 2,302 Critical Plan 230

St. Joe/ Arvida 154 1,230 R-3 123

Engli sh Famil y Enterpri ses/John Colin English 176 780 PUD 78

Retir ement Centers of America

15 120 R-3 12

Ex isting SF large lot 14 109 R-3 1 I

TOTAL: 1,265

Figure 1. . Housm . g Requirements App I y, 2015 . Where lnclus1onary .

Areas .• , ' 'I / ,.. ~,.,. ~ Legend

South em Strategy Area

: 1{ -j_/~=======:::--1

N ==~===-~~~~na1ry Inclusionary ,.. ,o o o 75 1.s Areas Where _ ements Apply 3

Miles . Housing Requir A !!" " '""'"'"' f.:.i',./:..·_.i~~l •• 0 tobtr6 , 20 1~ .,. . Map Up d~lod . C

Tallahassee Affordable Housing Advisory Committee Report 2015

Figure 2. Residential Subdivisions Issued in the City of Tallahassee October I , 2005 through June 30, 2015

j Legend Res idential <!'. Subdivisions

Southern Stnttegy Are-a Issued in the

·· ·· -··· u,t,an Service Nea City of Tallahassee

•• •····· • Oty of Tallohossee October 1, 2005 • June 30, 2015

IJ•• •U)l•M♦ r•h .-t• r, qu;,.,u 10 p,r.:,~uj• ln,c.luuo1u1y H ttt,u lno

~ 1. UO ttlllUOVCU

........ 4 If • .,,. •• ,., • W•'>•• • ♦ rh•• • •6 •

.. < r, .. > ! ,. 0 • .,_ , .,, • · 19'>' ••

" N Areas Where Inclusionary ) Ult ..... - ...... 4••~---0 0,7!\ I,~ .. , ,,_, 1 #" .,. <0 •••• 1r· )t . ........ , ... ,.. .... " 1'1\1.tt •,i 1if Housing Requirements Apply -~==----~ "•• .. . ... . ·•~· . '. . ,, •· .. .. A

Exhibit B

Summary of 2015 Affordable Housing Advisory Committee Recommendations

1 The City Commission should endorse and encourage the County Commission to adopt an Inclusionary Housing Ordinance (IHO) that is comparable to the City's IHO.

2 Endorse adoption of an inclusionary hou sing ordinance by Leon County that applies similar threshold s and requirements to those in an amended Tallahassee IHO.

3 Amend Sec. 9-244(f) of the IHO to eliminate exemption for lake protection areas on the Future Land Use Map and to specify that the IHO applies to developments within the Lake Protection Node zoning district but not to other areas within the Lake Protection future land use category.

4 Amend Sec. 9-245(c) to eliminate the options for locating inclusionary housing outside the primary development and to apply the requirement for dispersal of affordable units throughout the development to all areas not just the MMTD.

5 Amend Sec. 9-247(a)(5) to spell out the specific requirements for maintaining rents within the standards set in 9-245(i) in this section rather than leaving that to be negotiated as part of the inclusionary housing plan accompanying the site plan and preliminary plat. See those for Evening Rose.

6 Amend Sec. 9-249 to require that status reports be prepared at least every two years so that this is brought to the attention of the City Commission periodically.

7 Amend the IHO to explicitly direct staff of the Tallahassee-Leon County Planning Department to maintain a map of the areas to which the IHO applies and to require staff to (a) review the designated "selected census tracts" as defined in sec. 9-241 annually based on the most recent American Community Survey (ACS) data published by the U.S. Census Bureau and (b) revi se the map as necessary within one month of publication of the ACS data.

8 Amend the IHO to require inclusion of conditions in development agreements executed under the ordinance that "trigger" construction of inclusionary housing units stipulated in the development agreement.

9 Staff of the City Housing Divi sion shall initiate action to construct up to 10 inclusionary housing units on the 0.25 acre tract in the Evening Rose Phase 11 development that was donated to the City by the developer in August 2011 for this purpo se.

Tallahassee Affordable Housing Advisory Committee Report 2015

Summary of 2015 Affordable Housing Advisory Committee Recommendations

10 Revise Section 9-62( d) of the Land Development Code as follows: Lots created by resubdivision of an existing lot in a recorded or unrecorded residential subdivision zoned residential preservation (RP-1 or RP-2) , single family detached residential district (R-1 or R-2) or planned unit development (PUD) within the residential preservation future land use category shall be no less than the minimum lot size of all other lots in the subdivision. If a subdivision was developed in phases , the minimum lot size shall be determined by the lots in the phase affected by the proposed resubdivision.

Require the Real Estate department to provide , via the internet, an up-to-date list of surplus properties suitable for residential 11 construction or reconstruction.

Add policies in the comprehensive plan Future Land Use and Housing elements and in the IHO to require and /or provide additional incentives for the provision and preservation of affordable housing in infill and urban redevelopment projects,

12 especially within the Multi-Modal Transportation District (MMTD).

The Affordable Housing Trust Fund (AHTF) policy , procedures, and financial statement should be published on the Hou sing 13 Division website and/or linked to a corresponding website.

As the AHTF is a limited reso urce , a comprehensive analysis of the scope, nature , and feasibility of any project should be executed by a qualified team. The analysis should include , but not limited to, a historical review of past AHTF projects, a

14 detennination that other funding sources are not available for the project , the ability of the participants to successfully execute the project and re-pay the loan in full in a timely manner.

As the custodian for the AHTF, the City needs to provide a greater degree of oversight of the implementation of the approved 15 projects.

The City Commission shall review annually the status of the approved AHTF and the funding allocations. 16

Staff of the City Housing Division and the City-County Planning Agency shall work with the Tallahassee Affordable Housing 17 Advisory Committee to develop a strategy for utilizing the funds depo sited in the Southwood Development of Regional Impact

affordable housing escrow account and implement it as expeditiously as possible.

Summary of2015 Affordable Housing Advisory Committee Recommendations

The City shou ld focus on and prioritize redevelop ment and the rehab ilitation of the existing housing stock for affordable purchase 18 and rental housing.

The City of Tallahassee shall promote and facilitate the rehabilitation of existing properties to provide permanent supportive 19 housing and/or extreme ly low-income affordable housing that expl icitly serve low-incom e, homeless and spec ial needs

populations.

Exhibit C.

N8tice cf PubHc Hearing City of Tallahassee Affordable Housing Advisory Committee

To Adopt Final local Housing Strategy Recommendations

Notice ,, hereby g"en 1hat 1he Affordable Hou sing Advisory Comm ittee (AHACi will hold a publi c he,.nng pur>LJant 10 Sec. 420 .90i6, f!on da Statutes. on WecJnesday, Octobef' 21, 2015, at 11 :30 a.m. in the Growth Management Conference Room, first Floor of the Frenchtown Renaissance Building (435 N. Macomb Street) to ,1dop1 a lo<.,11 housing inc-enti,e strategy recnn1mendat1un report to present to the City Comm·» u11

Summarv ui tne top.cs and reo1nimendat1ons to be considered by AH AC <1t the public heanng

• Making thP Affordable Housing T,ust Fund Policy and financial ~tctcments available on the Ct:y·, website.

• Creatr,)n 0f a te,1111 to ,eview applications for Alfordable Housing Trust funds. • Llllhution ni iuno, depo'1ted 1n the Southwood DRI affurd,,ble housing PScrow

account. • Priont1zing redevelopmeflt and rehabilitation of the existing houw1g stock • Promntinp, supporl ive hous111g and liuu~1ng for extremely 'ow inLorne pe1so11s. • Rcv1<1ng tht• C,1y·, hdusmnary Housing Ordinance (IHO) • focourn g:ng Lc,1n County to adopt an IHO comparable to the ritv's IHO . • lnc1P,a1111g nppor!Jn,t1e, for affo1dable housing construction by allowing smaller

!ot siles th1ough re,ubd1v1sion.

The ,\HAC will 1.,ke public coni111ent at the public hearing. Fur more specific infor1nat1on abo111 recommendations or to obta111 a copy of the recommendations, including prooosed wcornmendations, please contact Julie Evans at 891-6500, email 1ulie ev;,ns@Lalgov.com, or stop by th<> Housing Division ,n thP. Frenchtown l~ena1ssance Center at 43'> N. Macomb Street, 3rd Floor, dunng regular business rrn.rrs. Plea,;e ,10te tlrata drl,llonal recnmmendat,ons may be presemed and adopted Jt tht~ puiJl,r. h(:1 nring.

NO'IICF: l'lfASf lll' ADVISED that if a person decides to appeal any decision made by tl,e Al➔.A.C with rt.'spe<:t to any mallet cnnsiderPd at this heanng, such person will need a recurcl oi these proceedings; and, ior this purpose, such pe~on may nePd to ensU'e that a \'Prbat1m record of the pru~eedings 1s m.idt• , which record indicates the testin,ony and evidence upon which the appeal is to be ba,,cd. The AHAC does not provide or prepare such a rew1d. See Section 286 .0105. Florida Statutes.

A1>yrn'c m•,:dmg 1,,ng11age translation or disab,lt ty arconimodat:ons to review the rP,ommer. daltom, or to ancnd the public hea11ng should contac t julie Evans at 8S0-891-6 SOO Interested parties needing seNices for he,iring 1n1p~irment should call 1he City's TDD relay at 711 at lea,! •Ill-hours prior to the start oi the meeting. excluding w,:ekends and holida1•<

{',.

~LAHASSEE l,, ._.