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Item S18 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: August 20, 2008 Division: Growth Management and Housing and Community Development Bulk Item: Yes No -1L- Department: Staff Contact Person: Lisa Tennyson/292-4462 AGENDA ITEM WORDING: A public hearing to consider an ordinance by the Monroe County Board of County Conunissioners amending the Land Development Regulations Section 9.5-266(b )(5)c.3 to increase the deed-restriction period for inclusionary housing to 99 years; and Section 9.5-266(b )(5)c. 7 to eliminate the average size requirement, while maintaining the minimum size requirement for inclusionary housing units. ITEM BACKGROUND: The Monroe County Workforce Housing Taskforce recommended this amendment at its April 10, 2008 meeting. PREVIOUS RELEVANT BOCC ACTION: On April 19, 2006, the Board adopted Ordinance 17-2006 establishing "inclusionary housing" requirements for development and redevelopment which was approved by the Florida Department of Community Affairs and which has since been as a new Section 9.5-266 (b). On March 15,2006, the Board adopted Ordinance 009-2006, which went into effect in February 2008, requiring a 99-year deed restriction period for all future affordable and workforce housing (this did not include housing built to comply with inclusionary requirements.) On its June 24, 2008 meeting of the Development Review Committee staff recommended approval of the proposed ordinance. On its June 25, 2008 regular meeting, the Monroe County Planning Commission recommended approval of the proposed text amendment. CONTRACT/AGREEMENT CHANGES: N/A ST AFF RECOMMENDATIONS: Approval TOTAL COST: N/A BUDGETED: Yes No COST TO COUNTY: N/A SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONTH_ Year APPROVED BY: County Atty 2L OMB/Purchasing _ Risk Management DOCUMENTATION: Included -2L Not Required_ DISPOSITION: Revised 8/06 AGENDA ITEM # MEMORANDUM MONROE COUNTY GROWTH MANAGEMENT DIVISION We strive to be caring, professional and fair To: Monroe County Board of County Commissioners From: Townsley Schwab, Acting Director of Planning ancr'f7 Environmental Resources ",... Date: August 4, 2008 RE: Planning Commission Meeting June 25, 2008 Please be advised that the Planning Commission at its June 25, 2008 meeting voted unanimously 5-0 to approve their Resolution No. P37-08 amending Monroe County Code Section 9.5-266 to increase the deed restriction period for affordability for inclusionary housing to 99 years and eliminate the average square footage requirement while maintaining the minimum square footage for requirement for afford affordable dwelling units. ',-" Monroe C-OUD'ty. ()~9~th Ma,.~ge~ent tfi~'is'ion Pag~ 1 ~ ,:'\ \~~: ~;->::' '''- .. '"' Division of Housing and Community Development STAFF REPORT TO: Board of County Commissioners FROM: Lisa Tennyson Affordable Housing Coordinator THROUGH: Andrew Trivette, Division Director Growth Management DATE: July 28, 2008 SUBJECT: PROPOSED TEXT AMENDMENT TO THE MONROE COUNTY LAND DEVELOPMENT REGULATIONS MEETING DATE: August 20,2008 I. PROPOSED AMENDMENT: The proposed amendment increases the deed-restriction period from 30 years to 99 years for affordable units built (or deed-restricted) to comply with inclusionary housing requirements set forth in 9.5-266(b). It also eliminates the requirement that housing units built (or deed- restricted) to comply with inclusionary requirements have an average floor area of 700 square feet. It does, however, maintain the minimum square footage size requirement of 400 square feet. A. Previous County Action: In 2006, the County adopted an inclusionary housing Ordinance 17-2006 relating to trailer parks and other multiple dwelling unit residential developments. The amendment seeks to modify two of its applicability standards by amending section 9.5-266(b)(5)(c) 3 to increase the deed-restriction period, and amending section 9.5-266(b)(5)(c)7 to eliminate the average square footage requirement. In 2006, the County adopted Ordinance 09-2006 relating to affordable housing that increased the deed-restriction period for all affordable housing (but not including inc1usionary units) to 99 years. That ordinance was held up as part of the Tier challenge, but is now in effect. In March 2008, the County adopted an amendment to its inclusionary housing section that clarified that compliance with inclusionary requirements could be met by purchasing existing market rate units and deed-restricting them to affordable uses, in lieu of building new units. That amendment is currently pending with the Department of Community Affairs. On June 25, 2008, the Monroe County Planning Commission heard and approved the proposed text amendment. B. Sponsor: The Workforce Housing Taskforce recommended this amendment at its April 10, 2008 meeting. C. Characteristics of the proposed text amendment: The proposed amendment will increase the deed restriction period for inclusionary housing units from 30 years to 99 years, so that in the future, all forms of affordable housing (including inclusionary units, ground lease properties and individual homes built with affordable RaGas) will now be deed-restricted for 99 years. The proposed amendment will also eliminate the average size requirement for inclusionary units. Currently, the code requires a minimum size of 400 square feet for inclusionary housing units and an average size of all units of 700 square feet. The amendment will require builders/developers to build their required number of units at the required minimum size but relieve them of having to build one or two of those units at a bigger size simply to meet the average size requirement. II. ANALYSIS: A. Consistency with the Land Development Regulations County requirements for amendments to the land development regulations: Pursuant to Section 9.5-511(d)(5)b of the Monroe County code, the Board of County Commissioners may consider the adoption of an ordinance enacting proposed changes to the text or maps based on one or more of the following factors, for which the following justification is provided: (i) Changed projections (e.g., regarding public service needs) }rom those on which the text or boundary }VGS based; None. (ii) Changed assumptions (e.g., regarding demographic trends); 2 The County has encouraged preservation of affordable housing stocks through required redevelopment of a percentage of dwelling units in residential development and redevelopment projects as "affordable" units and protecting their long-term affordability. (iii) Data errors, including errors in mapping, vegetative types and natural features described in Volume 1 of the plan; None. (iv) New issues; The County adopted an inclusionary housing ordinance in 2006 and clarifications to that ordinance strengthen and better facilitate its purpose. This amendment does that. (v) Recognition of a needfor additional detail or comprehensiveness; or The Workforce Housing Taskforce and County staff have recognized that modifying some of the applicability standards for inclusionary housing by increasing the deed-restriction period and eliminating the average size requirement can fully serve the overall intent of the County's inclusionary housing ordinance and lend planning stability and options for potential housing developers and thereby encourage continued activity in the affordable housing development and redevelopment area. (vi) Data updates. None. B. Consistency with the Principles for Guiding Development in the Florida Keys Area of Critical State Concern The proposed text amendment is consistent with the Principles for Guiding Development as a whole and is not inconsistent with any principle. Specifically, the amendment furthers: Principle (a) To strengthen local government capabilities for managing land use and development so that local government is able to achieve these objectives without the continuation of the area of critical state concern designation. Principle (j) To make available adequate affordable housing for all sectors of the population of the Florida Keys. And 3 Principle (1) To protect the public health, safety, and welfare of the citizens of the Florida Keys and maintain the Florida Keys as a unique Florida resource. III. FINDINGS OF FACT AND CONCLUSIONS OF LAW: 1. The proposed text amendment is justified by three of the factors in Section 9.5-511 of the Monroe County Code, which the BOCC may consider for amending the land use regulations: (ii) Changed assumptions (e.g.. regarding demographic trends); (iv) New issues; and (v) Recognition of a needfor additional detail or comprehensiveness. 2. The proposed text amendment is consistent with the following Principles for Guiding Development in the Florida Keys Area of Critical State Concern: Principles (a), (j) and (I) 3. The proposed text amendment is in the interest of the public welfare. The amendment to the land development regulations contribute to the set of overall programs and policies designed to preserve and protect the County's existing and future affordable housing stock. IV. ST AFF RECOMMENDATION Approval. 4 ORDINANCE NO. - 2008 AN ORDINANCE BY THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS AMENDING SECTION 9.5-266 OF THE MONROE COUNTY CODE TO INCREASE THE DEED RESTRICTION PERIOD FOR AFFORDABILITY FOR INCLUSIONARY HOUSING TO 99 YEARS; ELIMINATING THE AVERAGE SQUARE FOOTAGE REQUIREMENT WHILE MAINTAINING THE MINIMUM SQUARE FOOTAGE REQUIREMENT FOR AFFORDABLE DWELLING UNITS; PROVIDING FOR SEVERABILITY AND REPEAL OF INCONSISTENT PROVISIONS; PROVIDING FOR SUBMISSION TO THE DEPARTMENT OF COMMUNITY AFFAIRS; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners has considered the comments of the public, recommendations of the Planning Commission, recommendations of County Staff and the Workforce Housing Task Force; and WHEREAS, the Board of County Commissioners makes the following Findings of Fact: 1. The Florida Legislature has found and declared that: (a) There exists in counties and municipalities of the state a severe shortage of housing affordable to residents of low or moderate income, including the elderly; that the existence of such condition affects the health, safety, and welfare of the residents of such counties and municipalities and retards their growth and economic and social development; and that the elimination or improvement of such condition is a proper matter of state policy and state concern and is for a valid and desirable public purpose. See S 163.335(6), F.S. (b) Within this state there is a shortage of housing available at prices or rentals which many persons and families can afford, and a shortage of capital for investment in such housing. This shortage constitutes a threat to the health, safety, morals, and welfare of the residents of the state, deprives the state of an adequate tax base, and causes the state to make excessive expenditures for crime prevention and control, public health, welfare, and safety, fire and accident protection, and other public services and facilities. See S 159.602(1), F.S. (c) Such shortage cannot be relieved except through the encouragement of investment by private enterprise and the stimulation of construction and rehabilitation of housing through the use of public financing and the provision of low-cost loans to purchase affordable housing. See S 159.602(2), F.S. (d) The failure of the state to commit sufficient resources to address the severe housing problems has resulted in many residents of this state continuing to live in substandard or unaffordable housing or without shelter. See S 420.0002(2), F,S. (e) Escalating land and predevelopment costs and project financing contribute to the overall cost of housing and tend to restrict the development of housing affordable to very-low-income persons, low- income persons, and moderate-income persons. See S 420. 420.0002(7), F.S. (f) It is necessary to create inducements and opportunities for private and public investment in such activities in this state with appropriate planning, land use, and construction policies necessary for the public welfare. See S 420.502(5), F.S. (g) Existing state housing programs do not provide an adequate remedy to meet current or future housing needs. See S 420.0002(8), F.S. (h) As a matter of public policy, special programs are needed to stimulate public and private enterprises to build and rehabilitate housing in order to provide decent, safe, and sanitary conditions for very-low-income persons, low-income persons, and moderate-income persons. See ~ 420.0002(9), F.S. (i) Decent, safe, and sanitary housing for persons of very low income, low income, and moderate income are a critical need in the state. See S 420.6015(2), F.S U) New and rehabilitated housing must be provided at a cost affordable to such persons in order to alleviate this critical need. See S 420.6015(2), F.S. (k) For these reasons, private capital and existing state housing programs do not provide an adequate remedy to this situation. (I) New and rehabilitated housing must be provided at a cost affordable to such persons in order to alleviate this critical need. See S 420.6015(2), F.S. (m) For these reasons, private capital and existing state housing programs do not provide an adequate remedy to this situation. 2. Monroe County and its municipalities have a mutual interest in preservlllg and providing affordable and workforce housing countywide. 3. There is limited land suitable for residential development remaining in the County. 4. The County has implemented land development regulations requiring residential development and redevelopment to have an affordable housing component and which requires those affordable/workforce housing units be deed-restricted for a period of thirty (30) years. 5. The County has expended considerable resources in encouraging the creation and preservation of affordable housing and has initiated a program of long-term ninety-nine (99) year leasing of County-owned real property acquired for affordable and workforce housing uses. Such leases have been designed for use with both for-profit and not-for-profit developers of affordable and workforce housing, 6. The County has initiated a requirement that all future affordable and workforce housing dwelling units be deed-restricted for a period of ninety-nine (99) years. 7. The implementation of this ordinance will protect and preserve in perpetuity the segment of the housing stock that is available to low, median, and moderate-income residents and critical workforce. 8. These amendments to the land development regulations are necessary to ensure that, despite the limited availability of developable lands, the County's existing and future housing stock includes adequate affordable housing opportunities. 9. The proposed amendments to the Land Development Regulations are consistent with and further goals, objectives and policies of the Year 2010 Comprehensive Plan. 10. On June 24, 2008 the Development Review Committee heard and approved this proposed text amendment. 11. On June 25, 2008, the Monroe County Planning Commission heard and approved this proposed text amendment. . 2 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: Section 1. The preceding findings support its decision to approve the amendments to the Land Development Regulations of the Monroe County Code as provided herein. Section 2. Section 9.5-266(b)(5)c.3. is amended as follows: 3. Except as specifically provided otherwise herein, affordable housing dwelling units are restricted for a period of at least thirty (30) ninety-nine (99) years to households that meet the requirements of 2. above; and Section 9.5-266(b )(5)c. 7. is amended as follows: 7. Each affordable unit provided pursuaht to subsection (b )(2) shall contain a minimum of four hundred (400) square feet of habitable floor area and the Q','erage enclosed habitable floor area of all units so provided shall be at least seven hundred (700) square feet; and Section 3. Section 4. If any section, subsection, sentence, clause, item, change, or provision of this ordinance is held invalid, the remainder of this ordinance shall not affected by such validity. Section 5. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of said conflict. Section 6. This ordinance shall be transmitted to the Secretary of State and by the Planning Department to the Department of Community Affairs pursuant to Chapter 163, Florida Statutes. Section 7. This ordinance shall become effective as provided by law. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 20th day of August, 2008. Mayor Mario Di Gennaro Mayor Pro Tern Charles "Sonny" McCoy Commissioner Sylvia Murphy Commissioner George Neugent Commissioner Dixie Spehar BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA BY MARIO Dr GENNARO, MAYOR (SEAL) ATTEST: DANNY L. KOLHAGE, CLERK DEPUTY CLERK APPROVED AS TO FORM: 3 PLANNING COMMISSION RESOLUTION NO. P37-08 A RESOLUTION BY THE MONROE COUNTY PLANNING COMMISSION RECOMMENDING APPROVAL OF AN AMENDMENT TO THE MONROE COUNTY LAND DEVELOPMENT REGULATIONS AMENDING SECTION 9.5- 266 OF THE MONROE COUNTY CODE TO INCREASE THE DEED RESTRICTION PERIOD FOR AFFORDABILITY FOR INCLUSIONARY HOUSING TO 99 YEARS; ELIMINATING THE AVERAGE SQUARE FOOTAGE REQUIREMENT WHILE MAINTAINING THE MINIMUM SQUARE FOOTAGE REQUIREMENT FOR AFFORDABLE DWELLING UNITS; PROVIDING FOR SEVERABILITY AND REPEAL OF INCONSISTENT PROVISIONS; PROVIDING FOR SUBMISSION TO THE DEPARTMENT OF COMMUNITY AFFAIRS; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Monroe County Planning Commission has considered the comments of the public, recommendations of County Staff and the Workforce Housing Task Force; and WHEREAS, on June 25, 2008, the Monroe County Planning Commission heard and approved this proposed text amendment. NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY PLANNING COMMISSION: Section 1. The preceding findings support its decision to recommend approval of the amendments to the Land Development Regulations of the Monroe County Code as provided herein. Section 2. Section 9.5-266(b)(5)c.3. is amended as follows: 3. Except as specifically provided otherwise herein, affordable housing dwelling units are restricted for a period of at least thirty (30) ninety-nine (99) years to households that meet the requirements of 2. above; and Section 3. Section 9.5-266(b)(5)c.7. is amended as follows: 7. Each affordable unit provided pursuant to subsection (b )(2) shall contain a minimum of four hundred (400) square feet of habitable floor area and the ayocage enclosed habitable floor area of all units so pro';ided shall be at least se'len hundred (700) square feet; and Section 4. If any section, subsection, sentence, clause, item, change, or provision of this ordinance is held invalid, the remainder of this ordinance shall not affected by such validity. Section 5. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of said conflict. Section 6. This ordinance shall be transmitted to the Secretary of State and by the Planning Department to the Department of Community Affairs pursuant to Chapter 163, Florida Statutes. Section 7. This ordinance shall become effective as provided by law. PASSED AND RECOMMENDED FOR ADOPTION by the Monroe County Planning Commission at a regular meeting held on the 25th day of June, 2008 Randolph D. Wall, Chair James D. Cameron, Vice Chair John Marston, Commissioner Donna Windle, Commissioner Jeb Hale, Commissioner yes yes yes yes yes PLANNING COMMISSION OF MONROE COUNTY, FLORIDA By Randolph D. Wall, Chair Signed this day of ,2008. APPROVED AS TO FORM: 2