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Item I22May 14 01 11:10a Commissioner Williams (305) 289-6306 p,3 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY ADD -ON Meeting Date: Wednesday, June 20, 2001 Division: BOCC Bulk Item: Yes ^ No XX Department: Comm. Nora Williams AGENDA ITEM WORDING: 1. Approval of special resolution and actions resulting from latest Department of Community Affairs Affordable Housing Summit, June 5, 2001. 2. Approval of funding for county -wide affordable housing planner. ITEM BACKGROUND: PREVIOUS REVELANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: TOTAL COST: BUDGETED: Yes _ No XX COST TO COUNTY: REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Atty _ OMB/Purchasing Risk Management DIVISION DIRECTOR APPROVAL: DOCUMENTATION: DISPOSITION: Revised 2/27/01 Included -Ypk)d&&V—'j a� (Nora Williams, Commissioner) To Follow XX Not Required_ AGENDA ITEM # _' a a County of Monroe Growth Management Division 2798 Overseas Highway Suite 410 Marathon, Florida 33050 Voice: (305) 289 2500 FAX: (305) 289 2536 MEMORANDUM TO: Board of County Commissioners FROM: Timothy J. McGarry, AICP Director of Growth Manag e DATE: June 19, 2001 Board of County Commissioners Mayor George Neugent, District 2 Mayor Pro Tern Nora Williams, District 4 Comm. Charles "Sonny" McCoy, Dist. 3 Comm. Murray E. Nelson, District 5 Comm. Dixie M. Spehar, District 1 SUBJECT: Growth Management Division Staff Update and Suggestions on Proposed Comp Plan and LDR Changes Overview To prepare for her update to the Commission at its June 20, 2001, meeting, Commissioner Nora Williams, Land Use Liaison requested the Growth Management Division staff to prepare an update and responses to the initial list of proposed Comprehensive Plan and Land Development Regulations (LDRs) changes approved conceptually by the BOCC in March 2001. The information provided to Commissioner Williams for her status report is contained in this memorandum. Purpose Each proposed change in the Comprehensive Plan or Land Development Regulations identified in the list approved in concept by the BOCC for submittal to DCA is addressed as well as the need for a comprehensive plan amendment for the long-range plan approach for eventual build -out. For each proposal, an update on the progress of any amendments being prepared in response to the proposed change is provided; any staff concerns or issues with the proposal are identified; any needed action or direction by the BOCC is recommended; and a time frame by which the amendments will be in effect or before the BOCC is identified. 20 Year Land Acquisition and Affordable Housing Plan The Growth Management Division staff believes that the significance and importance of developing and implementing a long-range "end -game" approach for land acquisition, build -out, and affordable housing, as espoused in Commissioner William's document Securing Our Future: A 20 Year Plan, requires that the preparation of such a plan be initiated and directed by first amending the existing Comprehensive Plan. The proposed approach to addressing eventual Page 1 of 8 T, Z ;t' build -out of the Keys is a significant and fundamental shift in the policy direction of the existing Comprehensive Plan. The focus of the present comprehensive plan is primarily one of reaction to pressing short-term issues and deficiencies, both manmade and natural, while delaying to the future, the more politically difficult and critical decisions, which will face the County as it must come to grips with the need to balance environmental quality with quality of life issues. The proposed approach recognizes that the County must now move forward to squarely and aggressively focus on the long-term build -out issues of property rights, provision of affordable housing and preserving and conserving environmental and natural resources commensurate with sustainable development principles and practices. This amendment would provide a solid and sound policy basis for coordinating and directing the completion of various elements of this ambitious effort, some of which were outlined in the "additional actions" part of the "Statement from the Board of County Commissioners Concerning Affordable Housing," approved on April 18, 2001, by the BOCC. The amendment should provide a commitment and policy direction on such policy issues as changes to ROGO (see elsewhere in this report), incorporation of the of the Carryout Capacity Study, Hurricane Evacuation Update, community master plans resulting from Livable CommuniKeys Program, land acquisition, and affordable housing. It would serve as a tangible demonstration of the County's resolve and commitment to addressing its future and be a valuable lobbying tool for seeking extensive legislative and financial support from the state and federal governments. Most importantly, the plan amendment process itself will provide opportunities for the community's involvement in the key decisions affecting its future and vision for that future. It will provide an opportunity for the BOCC to forge a consensus among its members and the community in addressing the critical issues facing the County in implementing the "end game." Recommendation: The BOCC should request that staff prepare an amendment(s) to the Comprehensive Plan that provides a sound policy basis and direction for development of a 20- year land acquisition and affordable housing plan for the ultimate build -out of the Keys. Time Frame: If the BOCC supports this recommendation, the staff anticipates that the draft amendments could be ready for submittal to the Development Review Committee by August and reach the BOCC by later this fall.. Comp Plan and LDR Changes Lower ROGO Boundaries for affordable housing and sharing of nutrient reduction credits: This proposal is contained in the proposed Rule change (new sections 28-20.101 and 28-20.200) and would allow affordable housing ROGO allocations and nutrient reduction credits to be transferred across ROGO planning boundaries and, even municipal boundaries, if the County and municipality enter into a memorandum of agreement. The proposed Rule would amend both the County's Comprehensive Plan and Land Development Regulations; however, it is unnecessary to include reference to nutrient reduction credits in the LDRs. Recommendation: None Page 2 of 8 Time Frame: The Rule should become effective sometime in October of this year. Increase percentage of affordable housing set aside to allow for at least eighty units to be set aside per year for affordable housing projects: The current LDRs allow the number of ROGO allocations reserved for affordable housing to be increased at a maximum of 30 percent per year. This limitation was deliberately placed in the ordinance to minimize the disruption to the ROGO process, which abrupt changes would create. At the present time, the County will have available within the next six months to a year: 201 lost allocations dedicated specifically for affordable housing; the restoration of the County's annual allocation under the proposed Rule with all 37 ROGO allocations being dedicated solely for affordable housing; and approximately 40 affordable ROGO allocations which have continued to be rolled over in the system. Add these numbers to the 31 ROGO allocations (20 percent of allocation) to be made available in ROGO Year 10, the total number of affordable ROGO housing available in Year 10 may reach over 300 units, which is more affordable housing allocations than the total awarded in the previous nine years. ROGO and too a major extent development regulations are not a constraint to affordable housing, the lack of money is. Artificially constraining the supply for market housing may only increase the cost of the existing housing stock and pressures for the conversion of affordable to market rate housing. The current regulations already allow for a gradual increase in the annual ROGO allocation for affordable housing. The staff believes that ROGO does not need to be further modified at this time, especially since the proposed change in approach to long-term development of the County increases the desirability for fundamental changes in the ROGO system. Recommendation: At this time, the BOCC should not pursue a LDR amendment to allocate at least 80 units per year for affordable housing, but should continue to monitor the situation and increase affordable housing allocations in response to the needs of public and private affordable housing providers. Time Frame: N/A • Make affordable housing an allowable use on properties zoned suburban commercial (SC): The staff has prepared amendments to the LDRs to allow for affordable housing designated for working households to be constructed as a principal use in the SC zoning district. The staff anticipates that this draft will be submitted to the Development Review Committee to initiate the amendment process shortly. Recommendation: None Time Frame: The staff anticipates that the proposed LDR amendment allowing affordable employee housing as a principal use within the SC district will be brought to the BOCC by September of this year. • Add ROGO points for no- or low-cost option with real environmental impacts: Although providing more opportunities for low cost incentives to improve the score of ROGO applicants may appear on the surface to enable households with less economic Page 3 of 8 means to compete in ROGO, it will have little or no effect unless higher income households are excluded from being eligible for the same points. The changes in ROGO are already in place, which award households ROGO points for dwellings ("modest housing") of 1,300 square feet or less in habitable space (+2 points), modular housing (+2 points) and residential structures built on non -waterfront property (+1 point). Another consideration is the monitoring the use and maintenance of these environmental improvements which can be an administrative nightmare. For instance, residences that have been awarded ROGO points for a cistern as a secondary water source have been known to sell these same cisterns after the certificate of occupancy has been issued to other property owners. Since the County Growth Management Division is seriously considering proposing to make ROGO a true lottery system to replace the current system when it ends in July 2002, the staff believes further tinkering is not worthwhile or productive. Recommendation: The BOCC should drop this proposal from further consideration and development. Time Frame: N/A Expand donated lots that qualify for ROGO points to include lots in acquisition areas throughout the County: The staff believes that this approach has merit if applied to "new" acquisition areas that the County intends to identify and approve for resource conservation and protection purposes. Currently an effort is underway in working with local, state, and federal agencies as part of the Comprehensive Plan Task Force to identify these acquisition areas. Such a change would not require any amendments to the Comprehensive Plan or LDRs. However, the staff is concerned about initiating changes to award ROGO points to areas which are to be acquired primarily to "extinguish" development rights without having the results of the Carrying Capacity Study and other supporting information to determine ultimate build -out scenarios or options. Furthermore, as discussed previously, the staff firmly believes that with the end of the present ROGO system, the County should move forward to a true "lottery" system, which the staff believes is much more equitable and fair. Such a new ROGO system can only be appropriately put in place after the County has reached some consensus on build -out issues (where and how many residential and transient residential units and non-residential should be accommodated over 20 years and still achieve the sustainable development goals of the County) and designated specific geographic areas of the Keys for in -fill development and acquisition. The location, types, and of intensity of this development will be more beappriopriately addressed in the Livable CommuniKeys master planning program. Progress continues to be made refining the parcel layer of the County's Geographic Information System (GIS), which will enable the County staff with assistance of other state and federal agencies to begin work on the identification of these acquisition and development in -fill areas. Page 4 of 8 Recommendation: The BOCC should direct staff to continue its efforts on identification of land acquisition areas and areas suitable for further development to bring forward to the Board for approval in accordance with the comprehensive plan amendment to be prepared for the 20 year land acquisition and affordable housing plan discussed previously. Time Frame: The staff anticipates that working with the Comprehensive Plan Task Force, that additional land acquisition areas for natural resources conservation and preservation can be identified for approval by the BOCC by September 2001; areas needed to be acquired primarily for extinguishing of development rights will be recommended to the BOCC as will be outlined in the proposed comprehensive plan amendment. Allow mobile or manufactured homes designed for 150 mph winds on affordable housing properties: This proposal causes some concern for the Growth Management Division for several reasons. It would encourage mobile homes in areas and zoning districts where it is now prohibited, which will require amending the Comprehensive Plan. The staff is concerned that manufactured housing is not a better alternative than modular housing, which is only slightly more expensive and is not incompatible with conventionally built housing. Affordable housing is already a Not -In -My -Backyard issue, by allowing mobile homes in areas that now exclude them will only increase the resistance to affordable housing. Lastly, although manufactured housing can be modified to handle a 150 mph peak wind load, it is still more susceptible to damage from debris and flying objects than conventional and modular housing. Such damage can easily destroy the integrity of the mobile home to withstand wind and rain in a storm. Recommendation: The BOCC should drop this proposal from further consideration. Time Frame: N/A Create an affordable housing overlay zone: Essentially the ability for affordable housing to receive higher density bonus including proposed changes to allow employee housing with a density bonus in SC districts achieves the intent of an overlay zone. If the BOCC is looking for a different approach, such as allowing attached housing for affordable housing projects in IS zoned areas, the staff needs some direction. However, the staff believes the an affordable housing overlay zone may be an option to address part of the problem of the conversion of affordable housing to market rate housing (see next item). Recommendation: The BOCC should provide further direction to staff on the concept of an affordable housing overlay zone, if it believes that the proposed LDR changes to the SC district are insufficient. Time Frame: The staff anticipates that draft LDR changes allowing for density bonus for employee housing will be before the BOCC in September of this year. Page 5 of 8 • Don't allow modest/affordable housing to be replaced by significantly larger, non - affordable housing, by making "replacement unit" for existing housing comparable in square footage, if original house was below the square footage allowances for affordable housing: An aggressive land acquisition program and further restrictions on the availability of property for development in the Keys will not only increase the value of existing residences, but place greater pressure on conversion of these structures with larger ones. At this time, the staff is unsure how or should these conversions can be legally restricted while at the same time not incurring the wrath of property owners; however, further research needs to be done on this issue. One major loophole in the Comprehensive Plan and LDRs (Section 9.5-268) is the provision that entitles any lawfully established principal dwelling unit to be replaced no matter what the density provisions of the zoning district in which it located. Although this policy is intended to protect homeowners and permanent residents from losing their residences in cases of an "act of God," it also allows developers to buy out over density affordable housing developments, such as mobile home parks, and rebuild with market rate housing at higher densities than allowed under the LDRs. After hashing over several alternatives, the staff believes that one option has some merit which would go a long way to protecting some of the affordable housing stock. The staff is considering through amendments to the comprehensive plan and LDRs to create an "affordable housing overlay zone" for all existing mobile home and trailer parks. These parks are typically owned by a property owner, who leases out spaces for placement of trailers. The trailers are generally owned by their occupants. The overlay zone would protect the density of these parks, which are typically over density as long as they are retained for mobile homes or restricted to affordable housing. If the parks are to be redeveloped for conventional or modular housing, then an affordable housing deed restriction would have to be placed on the property to retain the density. Section 9.5-268 will also need to be revised to limit the on -site density replacement entitlement of these mobile home parks. Recommendation: The BOCC should request the staff to continue its efforts to develop this approach to protecting and conserving existing affordable housing stock, as well as other possible policies and regulations. Time Frame: The staff anticipates that proposed comprehensive plan and LDR amendments would come before the BOCC this fall. • Link any new commercial development to the production of affordable housing, either physical production of that housing or a monetary cost set -aside: In the proposed Nonresidential Rate of Growth Ordinance (NROGO) provisions have been included to require a nominal impact fee of $1 to $2 per square feet of new or transferred commercial floor area for the Employee Fair Share Impact Fee. These fees are intended to write down the costs of permitting and connection fees. For now, the proposed fees are minimal due to the limited nature of the new development to be allowed under the proposed system and the need for further study to identify an appropriate employee housing linkage that is both fair, reasonable, and legally defensible. Page 6 of 8 Although it may seem to be just a simple matter of establishing some high fee schedule per square foot, further study is needed to establish in quantifiable terms the linkage between nonresidential development and need for employee housing. The law is very clear that in the establishment of any impact,fees, that the development (e.g., businesses) must have caused a need for a facility (e.g., additional service workers increases the need for additional employee housing) and that the development must benefit (e.g. additional service workers can be accommodated to serve the businesses by the provision of additional affordable housing) from the provision of this facility (e.g., additional employee housing). This linkage will be further examined as part of a land use market study for commercial and transient residential development, which is to be completed over the next 12 months. Recommendation: None Time Frame: The proposed NROGO ordinance will be before the BOCC by July or August, it is anticipated that with the completion of the nonresidential land use market study sometime this year, proposed amendments to the Employee Fair Share Impact Fee ordinance could be prepared later this year. Any new multiple -unit market rate residential development should include a mix of market -rate and affordable housing and should have caps on square footage to encourage modest housing: The staff has already prepared proposed amendments to the LDRs to provide for a mix of market rate and affordable housing. The proposed amendments will be shortly submitted to the Development Review Committee to initiate the approval process. Recommendation: None. Time Frame: The staff anticipates that proposed amendments to the LDRs to allow a mix of housing will be before the BOCC in September. Create incentives to encourage redevelopment of existing commercial space to affordable housing. The existing LDRs already allow for the redevelopment of existing commercial space to affordable housing, except that commercial floor space can be traded for dwelling units; however, a property owner is required to go through ROGO for the dwelling units. Although, commercial space can not be traded for dwelling units, the proposed NROGO will allow demolition and off -site transfer of this floor space which will help encourage the redevelopment of obsolete commercial space to affordable housing. In addition, the staff has prepared proposed amendments to the LDRs that provide incentives for the development of employee housing by reducing the development penalty for developers of commercial development in Suburban Commercial Districts. The proposed incentive will allow up between 2,000 and 4,000 square feet of floor area to be exempted in determining the development density for employee housing constructed on the same parcel. Page 7 of 8 Recommendation: None Time Frame: The staff anticipates that the proposed LDR amendments on NROGO will be before the BOCC in July and the proposed amendments on changes in SC zoning district by September of this year. cc: James L. Roberts, County Administrator Mark Rosch, Executive Director, Land Authority Page 8 of 8