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Item K4County of Monroe <r BOARD OF COUNTY COMMISSIONERS � Mayor David Rice, District 4 IleOI1da Keys ��x t t 0. Mayor Pro Tem Sylvia J. Murphy, District 5 Danny L. Kolhage, District I P f,< George Neugent, District 2 a Heather Carruthers, District 3 County Commission Meeting March 21, 2018 Agenda Item Number: K.4 Agenda Item Summary #3957 BULK ITEM: No DEPARTMENT: Planning/Environmental Resources TIME APPROXIMATE: STAFF CONTACT: Kevin Bond (305) 289 -2507 N/A AGENDA ITEM WORDING: A resolution by the Monroe County Board of County Commissioners temporarily waiving the inclusionary housing requirements of Section 139 -1(b) of the Monroe County Land Development Code on an emergency basis until March 21, 2020 for like for like repair, redevelopment or replacement; or for units coming into compliance with building, flood, and land development codes, of existing residential dwelling units that were damaged or destroyed as a result of Hurricane Irma ITEM BACKGROUND: The Monroe County Land Development Code defines Inclusionary Housing as "the resulting affordable and /or employee housing created or preserved with the development and /or redevelopment of a parcel where provisions of approved development agreements or orders implement and promote affordable and /or employee housing goals, objectives and policies contained in the plan by requiring set - asides for affordable and/or employee housing units. " Current County regulations provide for an inclusionary housing requirement for residential developments that result in the development or redevelopment of three (3) or more dwelling units or ten or more mobile homes to develop or redevelop at least 30 percent of the units as affordable housing units to implement Goal 601 of the Monroe County Comprehensive Plan and to ensure that the need for affordable housing is not exacerbated by new residential development and redevelopment of existing affordable housing stock. Hurricane Irma struck the Keys on Sept. 10, 2017 as a Category 4 hurricane. No part of the Keys was spared, although Marathon and the Lower Keys from Mile Marker 16 to 40 were hit the hardest. The County suffered significant damage as a result of Hurricane Irma; particularly mobile homes/ manufactured units and homes built prior to recent building codes. Many homes will require repair, redevelopment and /or reconstruction after the storm. Staff has received questions on the application of the adopted inclusionary requirements for parcels with residential developments damaged or destroyed by the storm, with three or more homes [ten or more mobile homes]. Current adopted code, includes broad definitions for development (carrying out of any building activity, the making of any material change in the use or appearance of any structure on land or water...) and redevelopment (rehabilitation, improvement, and /or demolition and replacement of existing development on a site) which encompasses essentially any repair or improvement on a house, other than work which affects only the color or decoration of the exterior of the structure or interior alterations that do not change the use. Based on BOCC discussion and direction on February 21, 2018, staff prepared a resolution that, if passed, would temporarily waive the inclusionary housing requirements of Section 139 -1(b) of the Monroe County Land Development Code on an emergency basis until March 21, 2020 for like for like repair, redevelopment or replacement; or for units coming into compliance with building, flood, and land development codes, of existing residential dwelling units that were damaged or destroyed as a result of Hurricane Irma. The two -year exemption would require proof of the damage or destruction resulting from Hurricane Irma to be documented through County building permits issued no later than March 21, 2020 and would not apply to any property with an active development agreement for the removal and replacement of existing mobile homes with other types of dwelling units, such as allowed by the affordable housing incentive program pursuant to LDC Section 139 -2. PREVIOUS RELEVANT BOCC ACTION: In 2003, the BOCC adopted Ordinance No. 030 -2003 to establish inclusionary housing requirements (amending Section 9.5- 266(b)) for projects consisting of three or more market rate units to develop at least 30% of the residential units beyond the firth two units as affordable. In 2006, the BOCC adopted Ordinance No. 017 -2006 revising the inclusionary housing requirements to include: 1) market rate residential development or redevelopment of three or more dwelling units shall be required to develop or redevelop at least 30% of the residential units as affordable housing, and 2) the removal, replacement or conversion of 10 or more mobile homes shall be required to develop or redevelop at least 30% of the residential units as affordable housing. In 2008, the BOCC adopted Ordinance No. 011 -2008 revising the inclusionary housing requirements to allow an alternative compliance to the inclusionary housing requirements by allowing the developers to deed restrict existing dwelling units as affordable housing in lieu of constructing new affordable units. On February 21, 2018, the BOCC directed staff to draft a resolution that would temporarily waive the inclusionary housing requirements of LDC Section 139 -1(b) on an emergency basis for existing residential dwelling units that were substantially damaged or destroyed as a result of Hurricane Irma. CONTRACT /AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Draft BOCC Resolution LDC Sec 139 -1(b) Inclusionary Housing Requirements FINANCIAL IMPACT: Effective Date: 3/22/18 Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: Grant: County Match: Insurance Required: Additional Details: If yes, amount: N/A REVIEWED BY: Christine Hurley Completed 03/01/2018 6:11 AM Jaclyn Carnago Completed 03/05/2018 4:55 PM Steve Williams Completed 03/06/2018 10:08 AM Budget and Finance Completed 03/06/2018 10:09 AM Maria Slavik Completed 03/06/2018 11:43 AM Kathy Peters Completed 03/06/2018 12:31 PM Board of County Commissioners Pending 03/21/2018 9:00 AM 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 �Yrf P MONROE COUNTY, FLORIDA MONROE COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION NO. -2018 A RESOLUTION BY THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS TEMPORARILY WAIVING THE INCLUSIONARY HOUSING REQUIREMENTS OF SECTION 139 -1(B) OF THE MONROE COUNTY LAND DEVELOPMENT CODE ON AN EMERGENCY BASIS UNTIL MARCH 21, 2020 FOR THE REDEVELOPMENT OR REPLACEMENT OF EXISTING RESIDENTIAL DWELLING UNITS THAT WERE SUBSTANTIALLY DAMAGED OR DESTROYED AS A RESULT OF HURRICANE IRMA WHEREAS, the Board of County Commissioners is the legislative body of Monroe County, Florida; and WHEREAS, the Monroe County Mayor declared a State of Local Emergency on September 5, 2017 due to Hurricane Irma, a "threat of danger to the populace inhabiting Monroe County" and that the County "may require expedient action in order to protect the health, safety and welfare of the community;" and WHEREAS, Hurricane Irma, a Category 4 hurricane, made landfall in the Florida Keys on September 10, 2017, causing substantial damage to and loss of property; and WHEREAS, the Monroe County Mayor issued other declarations of a State of Local Emergency between September 12, 2017 and October 11, 2017 due to Hurricane Irma, a "threat of danger to the populace inhabiting Monroe County" and that the County "may require expedient action in order to protect the health, safety and welfare of the community;" and WHEREAS, Monroe County experienced a natural disaster, Hurricane Irma, which caused damage to residences, businesses and infrastructure throughout the County; and WHEREAS, pursuant to Section 139 -1(b) of the Monroe County Land Development Code (LDC), the redevelopment of three (3) or more dwelling units on a parcel or contiguous parcels shall be required to develop or redevelop at least 30 percent (30 %) of the residential units as affordable housing units; and the removal and replacement or conversion to a different use of ten (10) or more mobile homes or mobile home spaces on a parcel or contiguous parcels shall require that at least 30 percent (30 %) units be replaced or converted to deed - restricted affordable housing; and Page 1 of 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 WHEREAS, the inclusionary housing requirements did not originally anticipate the widespread damage and destruction from a natural disaster like Hurricane Irma that can occur to existing residential dwellings, which then necessitates their redevelopment or replacement; and WHEREAS, the inclusionary housing requirements were not intended to penalize or burden residential property owners who must involuntarily demolish or remove existing residential dwellings due to substantial damage from a natural disaster like Hurricane Irma; and WHEREAS, the County has experienced significant damage and destruction to existing residential dwellings, including mobile homes, resulting from Hurricane Irma; and WHEREAS, the BOCC wishes to temporarily waive the inclusionary housing requirements set forth in LDC Section 139 -1(b) for property owners who must redevelop or replace their homes that were substantially damaged and destroyed due to Hurricane Irma. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: The inclusionary housing requirements of Section 139 -1(b) of the Monroe County Land Development Code are hereby temporarily waived on an emergency basis until March 21, 2020 for like for like repair, redevelopment or replacement; or for units coming into compliance with building, flood, and land development codes, of existing residential dwellings that were damaged or destroyed due to Hurricane Irma, as follows: 1. Proof of the damage or destruction resulting from Hurricane Irma must be documented through County building permits applied for no later than March 21, 2020. 2. The waiver shall not apply to any property that has an active development agreement for the removal and replacement of existing mobile homes with other types of dwelling units, such as allowed by the affordable housing incentive program pursuant to LDC Section 139 -2. This waiver shall not apply to residential repair, redevelopment or replacement of housing units in permitting prior to Hurricane IRMA, nor shall it apply to residential redevelopment that increases the overall size of a residential unit. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the day of , 2018. Mayor David Rice Mayor Pro Tem Sylvia Murphy Commissioner Danny Kolhage Commissioner George Neugent Commissioner Heather Carruthers Page 2 of 3 I BOARD OF COUNTY COMMISSIONERS 2 OF MONROE COUNTY, FLORIDA 3 4 BY 5 Mayor David Rice 6 (SEAL) 7 8 ATTEST: KEVIN MADOK, CLERK 9 10 11 12 DEPUTY CLERK Page 3 of 3 K.4.b Monroe County Comprehensive Plan Update Chapter 139 AFFORDABLE AND EMPLOYEE HOUSING See. 139 -1. Affordable and Employee Housing; Administration. (a) Generally. (1) Notwithstanding the density limitations in Section 130 -157, the owner of a parcel of land shall be entitled to: a. Develop affordable and employee housing as defined in Section 101 -1, on parcels of land classified as Urban Residential (UR) at an intensity up to a maximum net residential density of 25 dwelling units per acre and on parcels of land classified as Mixed Use (MU) at an intensity up to a maximum net residential density of 18 dwelling units per acre. b. Develop affordable and employee housing, as defined in Section 101 -1, on parcels of land classified as Suburban Commercial (SC) at an intensity up to a maximum net residential density of 18 dwelling units per acre and on parcels of land classified as Urban Residential (UR) at an intensity up to a maximum net residential density of 25 dwelling units per acre. C. Develop market rate housing, as defined in Section 101 -1, as part of an affordable or employee housing project in accordance with subsection (a)(8) of this section, provided that on parcels of land classified as Urban Residential (UR), the maximum net residential density shall not be greater than 18 dwelling units per acre. (2) The maximum net residential density allowed per district and by this section shall not require Transferable Development Rights (TDR) for affordable and employee housing and market rate housing developed in accordance with subsection (a)(8) of this section. (3) Market rate housing developed in accordance with subsection (a)(8) below shall be eligible to receive points pursuant to Section 138- 28(a)(6). (4) The requirements of this Land Development Code for the provision of impact fees shall be waived for affordable and employee housing and any market rate housing developed in accordance with subsection (a)(8) of this section. (5) Notwithstanding the provisions of this article, when calculating density, any existing lawfully established or proposed affordable or employee housing on a parcel and the floor area thereof shall be excluded from the calculation of the total gross nonresidential floor area development that may be lawfully established on the parcel, provided, however, that the total residential density allowed on the site shall not exceed the maximum net density for affordable and employee housing. (6) In order for the owner of a parcel of land to be entitled to the incentives for affordable or employee housing outlined in this section and Chapter 138, Articles II and III, the owner must ensure that: 139 -1 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update a. The use of the affordable housing dwelling unit is restricted to households that meet the adjusted gross annual income limits for median- income as defined in Section 101 -1; b. Except as provided for under the special provisions for employer -owned rental housing as set forth under subsection (a)(6)k of this section, if the affordable housing dwelling unit is designed for employee housing, the use of the dwelling is restricted to households that derive at least 70 percent of their household income from gainful employment in the county and meet the adjusted gross annual income limits for median income as defined in Section 101 -1. C. The use of the affordable or employee dwelling unit is restricted for the period specified in Section 101 -1. d. Tourist housing use or vacation rental use of affordable or employee housing units is prohibited. e. The parcel of land proposed for development of affordable or employee housing shall only be located within a tier III designated area or, within a tier III -A (special protection area) designated area that does not propose the clearing of any portion of an upland native habitat patch of one acre or greater in area. f At the time of sale of an owner - occupied affordable unit, the total income of households eligible to purchase shall not exceed 120 percent of the median household income for the county. However, a unit within a class of affordable housing eligibility may only be sold to a household within that same class, i.e., a median income household that purchased a home within this category must sell the home to a qualifying household within the median income category; g. During occupancy of any affordable housing rental unit, not otherwise limited by state or federal statute or rule concerning household income, a household's annual income may increase to an amount not to exceed 140 percent of the median household income for the county. If the income of the lessee exceeds this amount, the tenant's occupancy shall terminate at the end of the existing lease term. The maximum lease for any term shall be three years or 36 months; h. Affordable housing projects shall be no greater than 20 units unless approved by resolution of the county Planning Commission. The Planning Commission's decision may be appealed to the BOCC using the procedures described in Section 102 -185, with the BOCC serving as the appellate body for the purpose of this section only; i. When establishing a rental and sales amount, the county shall assume family size as indicated in the table below. This section shall not be used to establish the maximum number of individuals who actually live in the unit. This table shall be used in conjunction with the eligibility requirements created by Section 101 -1: 139 -2 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update Size of Unit Assumed Family Size Minimum Occupanc Efficiency (no separate bedroom) 1 1 One bedroom 2 1 Two bedroom 3 2 Three bedroom 4 3 Four or more bedroom 5 1 per bedroom j. Except for tenants of employer -owned rental housing, as set forth in subsection (a)(6)k. of this section, the income of eligible households shall be detennined by counting only the first and highest paid 40 hours of employment per week of each unrelated adult. For a household containing adults related by marriage or a domestic partnership registered with the county, only the highest 60 hours of the combined employment hours shall be counted, which shall be considered to be 75 percent of the adjusted gross income. The income of dependents regardless of age shall not be counted in calculating a household's income; and k. In the special case of employer -owned rental housing, as defined in Section 101 -1, employees shall be eligible as tenants of the affordable rental housing, if the income of each tenant, as detennined following the requirements in subsection (a)(6)j. of this section, is not more than the 80 percent of the median income adjusted gross income for households within the county. The tenants of this affordable employee housing shall be required to derive at least 70 percent of their income from within the county. The maximum occupancy of employer - owned rental housing for employees shall be no more than two tenants per bedroom; with a maximum of three bedrooms per unit. The total monthly lease charged tenants for each dwelling unit shall not exceed 30 percent of the median adjusted gross annual income for households within the county, divided by 12. (7) Commercial apartment dwelling units, as defined in Section 101 -1, shall only be eligible for the incentives outlined in this section if they meet the requirements of subsection (a)(6) of this section for employee housing. (8) If an affordable or employee housing project or an eligible commercial apartment designated for employee housing contains at least five dwelling units, a maximum of 20 percent of these units may be developed as market rate housing dwelling units. The owner of a parcel of land must develop the market rate housing dwelling units as an integral part of an affordable or employee housing project. In order for the market rate housing dwelling units to be eligible for incentives outlined in this section, the owner must ensure that: a. The use of the market rate housing dwelling unit is restricted for a period of at least 30 years to households that derive at least 70 percent of their household income from gainful employment in the county; and b. Tourist housing use and vacation rental use of the market rate dwelling unit is prohibited. 139 -3 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4b Monroe County Comprehensive Plan Update (b) (1) Purpose and intent. The purpose of this subsection (b), consistent with Goal 601 of the Comprehensive Plan, is to ensure that the need for affordable housing is not exacerbated by new residential development and redevelopment of existing affordable housing stock. The intent of this subsection is to protect the existing affordable housing stock, to permit owners of mobile homes and mobile home spaces to continue established mobile home uses consistent with current building and safety standards and regulations and to ensure that, as residential development, redevelopment and mobile home conversions occur, Comprehensive Plan policies regarding affordable housing are implemented. (2) Applicability. Except as provided in subsection (b)(3) of this section, the inclusionary housing requirements set forth below shall apply. Detenninations regarding the applicability of this subsection shall be made by the Planning Director. For purposes of calculating the number of affordable units required by this subsection, density bonuses shall not be counted and only fractional requirements equal to or greater than .5 shall be rounded up to the nearest whole number. a. Residential developments, other than mobile home or mobile home spaces covered by subsection (b)(2)b. of this section, that result in the development or redevelopment of three or more dwelling units on a parcel or contiguous parcels shall be required to develop or redevelop at least 30 percent of the residential units as affordable housing units. Residential development or redevelopment of three units on a parcel or contiguous parcels shall require that one developed or redeveloped unit be an affordable housing unit. For the purpose of this section, and notwithstanding subsection (b)(2)b. of this section, any dwelling unit exceeding the number of lawfully established dwelling units on site, which are created by either a THE or ROGO allocation award, shall be considered developed units. b. The removal and replacement with other types of dwelling units of ten or more mobile homes that are located on a parcel or contiguous parcels and/or the conversion of mobile home spaces located on a parcel or contiguous parcels into a use other than mobile homes shall be required to include in the development or redevelopment a number of affordable housing units equal to at least 30 percent of the number of existing units being removed and replaced or converted from mobile home use or, in the event the new use is nonresidential, to develop affordable housing units at least equal in number to 30 percent of the number of mobile homes or mobile home spaces being converted to other than mobile home use. Removal and replacement or conversion to a different use of ten mobile homes or mobile home spaces on a parcel or contiguous parcels shall require that three units be replaced or converted to deed - restricted affordable housing. C. In calculating the number of affordable housing units required for a particular project, or phase of a project, all dwelling units proposed for development or 139 -4 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4b Monroe County Comprehensive Plan Update redevelopment or mobile homes or mobile home spaces to be converted from mobile home use since the effective date of the ordinance from which this section is derived shall be counted. In phased projects, the affordable housing requirements shall be proportionally allocated among the phases. If a subsequent development or redevelopment is proposed following a prior development approved on the same property as it existed as of the effective date of the ordinance from which this section is derived, which prior development did not meet the compliance thresholds set forth in subsection (b)(2)a. or (b)(2)b. of this section, the requirements of subsection (b)(2)a. or (b)(2)b. of this section shall be met as part of the subsequent development for all units proposed for development or redevelopment after the effective date of the ordinance from which this section is derived. (3) Exemptions and waivers. a. The following uses shall be exempt from the inclusionary housing requirements set forth in subsection (b)(2)a. of this section: affordable housing, employee housing, nursing homes, or assisted care living facilities. b. The BOCC may reduce, adjust, or waive the requirements set forth in this subsection (b) where, based on specific findings of fact, the board concludes, with respect to any developer or property owner, that: I. Strict application of the requirements would produce a result inconsistent with the Comprehensive Plan or the purpose and intent of this subsection; 2. Due to the nature of the proposed residential development, the development furthers Comprehensive Plan policies and the purpose and intent of this subsection through means other than strict compliance with the requirements set forth herein; 3. The developer or property owner demonstrates an absence of any reasonable relationship between the impact of the proposed residential development and requirements of this subsection (b); or 4. The strict application with the requirements set forth herein would improperly deprive or deny the developer or property owner of constitutional or statutory rights. Any developer or property owner who believes that he may be eligible for relief from the strict application of this section may petition the BOCC for relief under this subsection (b)(3) of this section. Any petitioner for relief hereunder shall provide evidentiary and legal justification for any reduction, adjustment or waiver of any requirements under this section. (4) Alternate compliance. 139 -5 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4b Monroe County Comprehensive Plan Update a. Compliance with this subsection may be achieved through the deed - restriction of existing dwelling units requiring that the affected units remain subject to the county's affordable housing restrictions for a period not less than the period prescribed in subsection (5)(c)3., below, according to administrative procedures established by the county. The following example is set forth to illustrate potential application options: Example: Owner /developer has 100 development rights Option 1: Owner /developer may build up to 70 market rate units and shall build 30 affordable units (using conventional compliance method.) The owner's 100 development rights yield a ratio of 70 market rate units and 30 affordable units. Option 2: Owner /developer may build up to 70 market rate units and shall purchase and deed - restrict 30 existing market rate units (in lieu of building 30 new affordable units.) The owner's 100 development rights again yield a ratio of 70 market rate units to 30 affordable units. Option 3: Owner /developer may build up to 100 new market rates. If the developer wishes to use all 100 development rights for market rate development, his inclusionary compliance requirement to purchase and deed - restrict existing market rate units increases, and in this case for example, calculates to 43 total affordable units. (The owner's 100 development rights yield a ratio of 100 market rate units to 43 affordable units, which is equivalent to the ratio of 70 market rates to 30 affordables: 100/43 = 70/30.) b. In -lieu fees. The developer of a project subject to the requirements of this subsection (b) may contribute a fee in -lieu of the inclusionary housing requirements for all or a percentage of the affordable housing units required by subsection (b)(2). The developer shall pay per unit in -lieu fees the current maximum sales price for a one - bedroom affordable unit as established under Section 139 -1(a). All in -lieu fees shall be deposited into the affordable housing trust fund and spent solely for the purposes allowed for that fund. The developer, along with any corresponding in -lieu fees, shall transfer to the county ownership of the associated ROGO- exempt development rights for any affordable unit(s) required by this section for which the in -lieu fee option is used. C. Land donation. Upon the acceptance of the BOCC of a proposed onsite or offsite parcel (or parcels), a developer may satisfy the requirements of this subsection by donating to the county, or other agency or not - for - profit organization approved by the board, one IS or URM lot for each unit required 139 -6 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update but not provided through actual construction or in -lieu fees (or a parcel or parcels of land zoned other than IS or URM as long as the donated parcel(s) will support the development of an appropriate number of affordable units). Lots or other parcels so provided shall not be subject to environmental or other constraints that would prohibit immediate construction of affordable housing units. The developer, along with any corresponding donated parcel(s), shall transfer to the county ownership of the associated ROGO allocations or ROGO- exempt development rights for any affordable unit(s) required under this section. (5) Applicable standards. a. Incentives. All incentives and bonuses provided by the land development and other regulations for the construction of affordable housing shall be available to builders of affordable housing provided pursuant to this subsection (b) including, but not limited to, density and floor area ratio bonuses, residential ROGO allocation set asides and points, and impact fee waivers. b. Developer financial responsibility. 1. If a developer does not elect to meet the requirements of subsection (b)(2) of this section through alternative compliance as set forth in subsection (b)(4) of this section, or obtain approval for an adjustment to, a partial exemption from or a waiver of strict compliance pursuant to subsection (b)(3) of this section, the developer must post a bond equivalent to 110 percent of the in -lieu fees that otherwise would have been required through the in -lieu alternate compliance option prior to the issuance of a building pennit for any market rate units. The county shall retain any bond money or guaranties in escrow until the affordable housing is completed, or for a period of three years, whichever comes first. Upon the issuance of certificates of occupancy for the affordable housing units, the county shall release to the developer any bonds or guaranties relating to the portion of the inclusionary housing requirement satisfied. If the developer has not satisfied the requirements of this section by completing the required affordable housing units within three years, all or the corresponding portion of the bond funds shall be forfeited to the affordable housing trust fund. 2. If the applicant elects to pursue alternative compliance as set forth in subsection (b)(4) of this section, any in -lieu fees must be paid or parcels donated prior to the issuance of a building pennit for any market rate unit. Standards. Affordable housing provided pursuant to subsection (b)(2) of this section shall comply with the standards set forth below and applications for development projects subject to these requirements and developers and property 139 -7 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update owners shall provide to the county infonnation and necessary legal assurances to demonstrate current and continued compliance with these provisions, consistent with the applicable enforcement mechanisms set forth in subsection (f) of this section, as amended or supplemented from time to time. The county may institute any appropriate legal action necessary to ensure compliance with this subsection. Affordable housing units required pursuant to subsection (b)(2) of this section are restricted to sales prices and annual rental amounts for households that shall not exceed the adjusted gross annual income limits for moderate- income owner - occupied or rental housing, as defined in Section 101 -1; Affordable housing units may be sold or rented only to persons whose total household income does not exceed the adjusted gross annual income limits for moderate - income as defined in Section 101 -1; Except as specifically provided otherwise herein, affordable housing dwelling units are restricted for a period of 99 years to households that meet the requirements of subsection (b)(5)c.2. of this section; Affordable housing units provided pursuant to subsection (b)(2) of this section may be provided on -site, off -site or through linkage with another off -site project as provided in subsection (c) of this section; Affordable housing units may not be used for tourist housing or vacation rental use; Each affordable unit provided pursuant to subsection (b)(2) of this section shall contain a minimum of 400 square feet of habitable floor area and the average enclosed habitable floor area of all units so provided shall be at least 700 square feet; Each affordable unit provided pursuant to subsection (b)(2) shall contain a minimum of 400 square feet of habitable floor area; and during occupancy of any affordable housing rental unit, not otherwise limited by state or federal statute or rule concerning household income, a lessee household's annual income may increase to an amount not to exceed 140 percent of the median household income for the county, to be annually verified. If the income of the lessee household exceeds this amount, the occupancy shall tenninate at the end of the existing lease term. The maximum lease for any teen shall be three years or 36 months; When detennining eligibility criteria, the county shall assume family size as indicated in the table set forth in subsection (a)(6)i. of this section. That table shall not be used to establish the maximum number of individuals who actually live in the unit, but shall be used in conjunction with the eligibility requirements created by the definition of "affordable housing" in Section 101 -1; The income of eligible households shall be detennined by counting only the first and highest paid 40 hours of employment per week of each 139 -8 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update unrelated adult. For a household containing adults related by marriage or a domestic partnership registered with the county, only the highest 60 hours of the combined employment hours shall be counted, which shall be considered to be 75 percent of the adjusted gross income. The income of dependents regardless of age shall not be counted in calculating a household's income; and 10. The county will not issue certificates of occupancy for market rate units associated with development or redevelopment projects subject to the provisions of this subsection (b) unless and until certificates of occupancy have been issued for required affordable housing units, lot donations are complete, or in -lieu fees have been paid as provided herein. (6) Monitoring and review. The requirements of this subsection (b) shall be monitored to ensure effective and equitable application. Every two years following the effective date of the ordinance from which this section is derived, the planning director shall provide to the BOCC a report describing the impact of this subsection on the provision of affordable housing and other market or socioeconomic conditions influencing or being influenced by these requirements. Issues such as affordability thresholds, inclusionary requirements, and the impacts of these provisions on the affordable housing inventory and housing needs in the county shall be addressed, in addition to other matters deemed relevant by the director. (c) Linkage of projects. Two or more development projects that are required to provide affordable housing may be linked to allow the affordable housing requirement of one development project to be built at the site of another project, so long as the affordable housing requirement of the latter development is fulfilled as well. The project containing the affordable units must be built either before or simultaneously with the project without, or with fewer than, the required affordable units. Sequencing of construction of the affordable component of linked projects may be the subject of the planning department or the planning commission's approval of a project. In addition, if a developer builds more than the required number of affordable units at a development site, this development project may be linked with a subsequent development project to allow compliance with the subsequent development's affordable unit requirement. The linkage must be supplied by the developer to the planning commission at the time of the subsequent development's conditional use approval. Finally, all linkages under this subsection may occur between sites within the county and in the cities of Key West, Marathon and Islamorada, subject to an interlocal agreement, where appropriate; however, linkage must occur within the same geographic planning area, i.e., lower middle and upper keys. All linkages must be approved via a covenant running in favor of the county, and if the linkage project lies within a city, also in favor of that city. The covenant shall be placed upon two or more projects linked, stating how the 139 -9 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update requirements for affordable housing are met for each project. The covenant shall be approved by the BOCC and, if applicable, the participating municipality. (d) Affordable housing trust fund. The affordable housing trust fund (referred to as the "trust fund ") is established. The trust fund shall be maintained with funds eannarked for the purposes of furthering affordable housing initiatives in municipalities and unincorporated areas of the county. Monies deposited into the trust fund shall not be commingled with general operating funds of the county. The trust fund shall be used only for the following: (1) Financial aid to developers as project grants for affordable housing construction; (2) Financial aid to homebuyers as mortgage assistance, including, but not limited to, loans or grants for down payment assistance; (3) Financial incentives for the conversion of transient units to affordable residential units; (4) Direct investment in or leveraging housing affordability through site acquisition, housing development and housing conservation; or (5) Other affordable housing purposes as may be established by resolution of the BOCC, which shall act as trustees for the fund. The BOCC may enter into agreements or make grants relating to the use of trust funds with or to the county housing authority or other local government land or housing departments or agencies, a qualified community housing development organization or nonprofit or for - profit developer of affordable or employee housing, or a municipality within the county. (e) Community housing development organization. The BOCC may establish a nonprofit community housing development organization (CHDO), pursuant to federal regulations governing such organizations, to serve as developer of affordable housing units on county -owned property, including or located in the municipalities of the county, upon interlocal agreement. In such event, the county may delegate to the community housing development organization all or partial administration of the affordable housing trust fund. (f) Administration and compliance. (1) Before any building permit may be issued for any structure, portion or phase of a project subject to this section, a restrictive covenant shall be approved by the Assistant County Administrator and county attorney and recorded in the office of the clerk of the county to ensure compliance with the provision of this section running in favor of the county and enforceable by the county and, if applicable, a participating municipality. The following requirements shall apply to these restrictive covenants: a. The covenants for any affordable or employee housing units shall be effective for a period of at least 99 years. 139 -10 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update b. The covenants shall not commence running until a certificate of occupancy has been issued by the building official for the dwelling unit or dwelling units to which the covenant or covenants apply. (2) Restrictive covenants for housing subject to the provisions of this section shall be filed that require compliance with the following: a. Restricting affordable housing dwelling units to households meeting the income requirements of subsection (a)(6)a. of this section; b. Restricting employee housing dwelling units to households meeting the income and employment requirements of subsection (a)(6)b. of this section; C. Restricting market rate housing dwelling units to households meeting the employment requirements of subsection (a)(8)a. of this section; and d. Prohibiting tourist housing use or vacation rental use of any housing developed under the provisions of this section. (3) The eligibility of a potential owner - occupier or renter of an affordable, employee or market rate housing dwelling unit, developed as part of an employee or affordable housing project, shall be detennined by the planning department upon submittal of an affidavit of qualification to the planning department. The form of the affidavit shall be in a form prescribed by the planning department. This eligibility shall be detennined by the planning department as follows: a. At the time the potential owner either applies for affordable housing ROGO allocation, or applies to purchase a unit that used affordable housing ROGO allocation; or b. At the time the potential renter applies to occupy a residential unit that used an affordable ROGO allocation. (4) Except as provided in subsection (f)(5) of this section, the property owner of each affordable employee or market rate housing dwelling unit, developed as part of an affordable or employee housing project, shall be required to annually submit an affidavit of qualification to the planning department verifying that the applicable employment and income requirements of subsection (f)(2) of this section are met. The annual affidavit of qualification shall be in a form prescribed by the Planning Director and shall be filed by the property owner upon receiving written notification by certified mail from the planning department. (5) The owner - occupant of an affordable, employee, or market rate housing dwelling unit, developed as part of an affordable or employee housing project, who has received a homestead exemption as provided for under the state statutes, is not required to submit an annual affidavit of qualification as required above in subsection (f)(4) of this section if that owner - occupant was qualified previously by the planning department. Prior to any change in ownership (including, but not limited to: sale, 139 -11 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update assignment, devise, or otherwise), the owner - occupant shall be required to provide documentation to the planning department in a form prescribed by the planning director proving that the potential occupying household is eligible to occupy that unit prior to a change in ownership of the property. (6) Failure to submit the required annual verification as required in subsection (f)(4) of this section or failure to provide documentation prior to change in ownership required in subsection (f)(5) of this section shall constitute a violation of the restrictive covenant, the conditions of the certificate of occupancy and this Land Development Code. (7) The restrictive covenants for affordable and employee housing required under this section shall be approved by the Assistant County Administrator and county attorney prior to the recording of the covenant and issuance of any building permit. (8) Upon written agreement between the Planning Director and an eligible governmental or nongovernmental entity, the Planning Director may authorize that entity to administer the eligibility and compliance requirements for the Planning and Environmental Resources Department under subsections (f)(3), (f)(4), (f)(5) and (f)(6) of this section. Under such an agreement, the eligible entity is authorized to qualify a potential owner - occupier or renter of affordable, employee, or market rate housing developed as part of an employee or affordable housing project, and annually verify the employment and /or income eligibility of tenants pursuant to subsection (f)(2) of this section. The entity shall still be required to provide the Planning and Environmental Resources Department, by January 1 of each year, a written certification verifying that tenants of each affordable, employee, or market rate housing meet the applicable employment and income requirements of subsection (f)(2) of this section. The following governmental and nongovernmental entities shall be eligible for this delegation of authority: a. The county housing authority, not - for - profit community development organizations, pursuant to subsection (e) of this section, and other public entities established to provide affordable housing; b. Private developers or other nongovernmental organizations participating in a federal /state housing financial assistance or tax credit program or receiving some form of direct financial assistance from the County; or C. Nongovernmental organizations approved by the BOCC as affordable housing providers. (9) Should an entity fail to satisfactorily fulfill the terms and conditions of the written agreement executed pursuant to subsection (f)(6) of this section, the Planning Director shall provide written notice to the subject entity to show cause why the agreement should not be tenninated within 30 days. If the entity fails to respond or is unable to demonstrate to the satisfaction of the Planning Director that it is 139 -12 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016 K.4.b Monroe County Comprehensive Plan Update meeting the teens and conditions of its agreement, the agreement may be tenninated by the Planning Director within 30 days of the written notice. (g) Interlocal affordable rate of growth allocation agreements. The BOCC may authorize interlocal agreements between the County and the cities of Marathon, and Key West, and Islamorada, Village of Islands for the purpose of sharing residential rate of growth affordable housing allocations. The interlocal agreements may be based upon a specific project proposal within one or more jurisdictions or may be for a specific allocation of units on an annual basis, from the county to a municipality or from a municipality to the county. All allocations made available to a jurisdiction must meet the applicable affordable housing requirements of the receiving jurisdiction's land development regulations and affordable housing ordinances. <The remainder of this page intentionally left blank> 139 -13 Keith and Schnars, P.A. Land Development Code: Final Adopted Version April 13, 2016