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Item J01County of Monroe <r BOARD OF COUNTY COMMISSIONERS � Mayor David Rice, District 4 IleOI1da Keys ��x t t 0. Mayor Pro Tern Sylvia J. Murphy, District 5 Danny L. Kolhage, District I P f,< George Neugent, District 2 a Heather Carruthers, District 3 County Commission Meeting May 16, 2018 Agenda Item Number: J.1 Agenda Item Summary #1716 BULK ITEM: Yes DEPARTMENT: Planning/Environmental Resources TIME APPROXIMATE: STAFF CONTACT: Emily Schemper (305) 289 -2506 N/A AGENDA ITEM WORDING: A resolution approving a request by Joel Reed on behalf of Marina Inn Land, LLC for a partial exemption to the County's inclusionary housing requirements, pursuant to Section 139- 1(b)(3) of the Monroe County Land Development Code, on property commonly known as Marina Inn Condominium located at 111, 121, 211, 311, 321, 411 and 421 Beach Road in Ocean Reef, having parcel numbers from 00569471- 000200 to 00569471- 005000. ITEM BACKGROUND: The Marina Inn Condominium property consists of 30 attached residential dwelling units, previously recognized as ROGO- exempt in a Letter of Development Rights Determination (File 4 2014 -042) issued by the County on May 16, 2014. In a Letter of Understanding dated June 24, 2014, staff outlined the applicable portions of the County Comprehensive Plan and Land Development Code regarding the proposed demolition of the existing 30 -unit development and construction of a new 30 -unit development, consisting of a single 3 -story building, new parking areas, modified docking facilities and other site improvements. In this LOU, staff informed the property owner and their consultant about the proposed redevelopment of residential dwelling units being subject to the County's inclusionary housing requirements. In this case, nine (9) of the 30 existing dwelling units would be required to be deed - restricted affordable housing. On February 19, 2016, the Applicant submitted a request for partial exemption from the County Inclusionary Housing regulations. The development is currently under construction. On April 18, 2018, the Applicant submitted an amended application which indicates that 27 of the 30 previously existing units will be reconstructed on site. Under the County's affordable housing inclusionary requirement, 8 of those units should be deed restricted as affordable units, or the applicant can propose other methods of meeting the inclusionary housing requirement. If the applicant rebuilds all pre- existing units as market -rate units, and provides the required affordable units off site, then 30% of the total number of units (on site and off site) must be deed restricted affordable units. In this case the applicant proposes to reconstruct 27 market rate units on site; therefore, 11 affordable housing units off -site are required. Alternative compliance options include: • Deed restriction of existing market -rate dwelling units; • In -lieu fees; and • Land Donation. The applicant has proposed to provide eight (8) affordable units, and is requesting a waiver of the remaining three (3) affordable units required. Pursuant to LDC Section 139- 1(b)(3), the BOCC may reduce, adjust, or waive the inclusionary housing requirements where, based on specific findings of fact, the board concludes one of the following: 1. 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. A petitioner for relief hereunder shall provide evidentiary and legal justification for any reduction, adjustment or waiver of the inclusionary housing requirements. Staff has found that the Applicant has not provided sufficient evidence or legal justification for the proposed reduction in inclusionary housing requirements to recommend approval of the Applicant's request. PREVIOUS RELEVANT BOCC ACTION: On April 19, 2006, the BOCC adopted Ordinance 017 -2006 which established the current inclusionary housing requirements in the Land Development Code. On March 19, 2008, the BOCC adopted Ordinance 011-2008 which amended the current inclusionary housing requirements to allow for compliance through deed - restriction of existing dwelling units. CONTRACT /AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Staff recommends DENIAL based on Goal 601, Policy 601.1.9 and Policy 601.1.13 of the Comprehensive Plan, and the conclusion that the proposed redevelopment project does not meet any of the four (4) criteria in subsection 139- 1(b)(3) that the BOCC may use to reduce, adjust, or waive inclusionary housing requirements. DOCUMENTATION: Draft Resolution Staff Report Exhibit _I to staff report - Application_ File #2016 -030 Exhibit to staff report - LDC139 -1 FINANCIAL IMPACT: Effective Date: 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: REVIEWED BY: Mayte Santamaria Skipped Emily Schemper Completed Assistant County Administrator Christine Hurley 05/01/2018 11:53 AM Steve Williams Completed Jaclyn Carnago Skipped Budget and Finance Skipped Maria Slavik Skipped Kathy Peters Completed Board of County Commissioners Pending 03/01/2018 6:30 AM 04/30/2018 11:00 PM Completed 05/01/2018 4:10 PM 05/01/2018 9:46 PM 04/30/2018 10:57 PM 04/30/2018 10:57 PM 05/01/2018 9:47 PM 05/16/2018 9:00 AM 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 47 48 MONROE COUNTY, FLORIDA RESOLUTION NO. -2018 A RESOLUTION BY THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS DENYING A REQUEST BY JOEL REED ON BEHALF OF MARINA INN LAND, LLC FOR A PARTIAL WAIVER TO THE INCLUSIONARY HOUSING REQUIREMENTS, PURSUANT TO SECTION 139- 1(B)(3) OF THE MONROE COUNTY LAND DEVELOPMENT ODE, ON PROPERTY COMMONLY KNOWN AS M INN CONDOMINIUM LOCATED AT 111, 121, 211, 31 1, 41 AND 421 BEACH ROAD IN OCEAN REEF LEGALLY DESCRIBED AS UNITS 501, 502, 503, 504 5, 07, 508, 509,510,511,512,513,514,515,51 529 6 517 1 , 19,52 522, 523, 524, 525, 526, 527, 528, A MAR CONDOMINIUM, ACCORDING T HE DECLARATIO CONDOMINIUM THEREOF A CORD IN FICI RECORDS BOOK 728, PAG S TH GH 458; A AMENDED IN OFFICIAL RECORDS 59 T PAGE 9, AS FURTHER AMENDED IN OFFICIAL RDS BOOK 1457 AT PAGE 1612 AND A MENT RECO IN OFFICIAL RECORDS BOOK 2678, P AS AFFE NOTICE OF QUIT CLAIM ASSIG ECL S RIGHTS RECORDED IN OFFICIAL COR 2 8, PAGE 400, OF THE PUB RECORDS RO TY, FLORIDA, AND EX W REOF A THE CO OMINNM PLANS AS RE DED ONDOM M GRAPHICS BOOK 2 OF dwelling units ai Ocean Reef Club ►S OF M E COUNTY, FLORIDA; UNDIVI INTEREST IN COMMON AID DECLARATION OF A URTENANCE TO THE ABOVE HAVING REAL ESTATE NUMBERS 06 00569471- 005000. is an existing development consisting of 30 attached residential including parking areas, driveways and docking facilities within ucted in 1977; and WHEREAS, t*e' Marina Inn property is located at 111, 121, 211, 311, 321, 411 and 421 Beach Road in Ocean Reef, and WHEREAS, on May 16, 2014, a Letter of Development Rights Determination (LDRD) (File 4 2014 -042) was issued determining that 30 permanent residential dwelling units were lawfully established on the property and are exempt from ROGO; and WHEREAS, the property owner is proposing to demolish the existing 30 -unit residential development and construct a new 27 -unit market rate residential development; and BOCC Resolution No. -2018 File 4 2016 -030 Inclusionary Housing Exemption 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 47 48 WHEREAS, Section 139- 1(b)(2)a. of the Monroe County Land Development Code (LDC) provides inclusionary housing standards that are applicable to the development or redevelopment of permanent residential units and would require that at least 30% of the existing units be redeveloped as affordable housing; and WHEREAS, LDC Section 139- 1(b)(3)c. allows any developer or property owner who believes that they may be eligible for relief from the strict application of the inclusionary housing requirements to petition the Board of County Commissioners for relief, and WHEREAS, the Board of County Commissioners makes th� lowing Findings of Fact: 1. Pursuant to LDC Section 139- 1(b)(3)b., the W oflWty Commissioners may reduce, adjust, or waive the inclusionary housing reqilLre tits; an 2. Based on LDC Section 139- 1(b)(2 existing market -rate dwelling units. a. These units were not mobile home umt b. The applicant would be required to p and /or employee housing units; and c. The applicant is proposin rovide and receive a waiver for the ' g 3. Prior to applicant must i inclusionary hoi 4. The A a. Th P c ub the issuance of bui tai rval of the of ect The p� employee The 27 exi isting aft 5. In dar of fact, the LDC Section 139- 1(b)(3)b., based on the above specific findings v Commissioners concludes that: 1. Strict a4lication of the requirements would not produce a result inconsistent with the plan or the purpose and intent of subsection 139 -1(b); 2. Due to the nature of the proposed residential development, the development does not further Comprehensive Plan policies and the purpose and intent of subsection 139 - 1(b) through means other than strict compliance with the requirements set forth herein; 3. The developer or property owner has not demonstrated an absence of any reasonable relationship between the impact of the proposed residential development and requirements of subsection 139 -1(b); and BOCC Resolution No. -2018 File 4 2016 -030 Inclusionary Housing Exemption t following e applicant is propos redevelop 27 S, rov en ( 1) deed - restricted affordable eight (8)W required (11) affordable units three (3) reqllogjkordable units. ection 13�F(b). osed redevelopment, the trate compliance with the conditions /circumstances: ele m association consisting of 30 dwelling units ;and L rede meat W isanticipated to increase the need for affordable or nits were not and are not serving as mobile homes or as stock. Page 2 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 Law: 4. The strict application with the requirements set forth in subsection 139 -1(b) would not improperly deprive or deny the developer or property owner of constitutional or statutory rights. WHEREAS, the Board of County Commissioners makes the following Conclusions of 1. The applicant does not meets criteria 1, 2, 3, and /or 4 as outlined in LDC Section 139- 1(b)(3)b.; and 'A� 2. Based on the Findings of Fact, the Board of County that the applicant is not eligible for relief from the y housing requirements. NOW THEREFORE, BE IT RESOL COMMISSIONERS OF MONROE COUNTY, Fl Section 1. The request by Joel Reed, on befi waiver to the County's inclusionary housing requirery Monroe County Land Development Code, is DENIED. PASSED AND ADOPTED by the Florida at a regular meeting held on the 16 Mayor David Rice Mayor Pro Tem S Commissioner Commissio Commissioner Ge ATTEST: KEVIN MADOK, CLERK COUNTY F'for a partial 1(b)(3) of the of Monroe County, BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA BY Mayor David Rice Deputy Clerk BOCC Resolution No. -2018 File 4 2016 -030 Inclusionary Housing Exemption iiss7oners has determined ation of the inclusionary Page 3 of 3 MEMORANDUM MONROE COUNTY PLANNING & ENVIRONMENTAL RESOURCES DEPARTMENT To: Monroe County Board of County Commissioners Through: Emily Schemper, AICP, CFM, Acting Senior Director of Planning & Environmental Resources From: Cheryl Cioffari, AICP, Principal Planner Date: April 30, 2018 Subject: A request by Joel Reed on behalf of Marina Inn Land, LLC for a partial waiver to the County's inclusionary housing requirements, pursuant to Section 139- 1(b)(3) of the Monroe County Land Development Code, on property commonly known as Marina Inn Condominium located at 111, 121, 211, 311, 321, 411 and 421 Beach Road in Ocean Reef having Real Estate Numbers from 00569471- 000200 to 00569471- 005000. (File 2016 -030) Meeting: May 16, 2018 1 L REQUEST 2 Joel Reed, on behalf of the property owner Marina Inn Land, LLC, (the Applicant), is 3 requesting a partial waiver to the County's inclusionary housing requirements, pursuant to 4 Section 139- 1(b)(3) of the Monroe County Land Development Code, on property commonly 5 known as Marina Inn Condominium located at 111, 121, 211, 311, 321, 411 and 421 Beach 6 Road in Ocean Reef. The requested approval is associated with the proposed redevelopment 7 of the existing 30 attached residential dwelling units on the property. The Applicant is 8 proposing to re -build 27 market rate dwelling units on the site (rather than 30). k+y 9 10 11 12 Subject Propertv (center) overlaid with Land Use District (Zoning) Map, 2015 Aerial II. BACKGROUND INFORMATION BOCC Staff Report 5/16/18 File 4 2016 -030 Inclusionary Housing Exemption Page 1 of 8 I Applicant: 2 Property Owner /Applicant: Marina Inn Land, LLC 3 Agent: Joel Reed; RC3World, Inc. 4 Location: 5 Address 111, 121, 211, 311, 321, 411 & 421 Beach Road, Ocean Reef 6 Legal Description: Units 501, 502, 503, 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 7 514, 515, 516, 517, 518, 519, 520, 521, 522, 523, 524, 525, 526, 527, 528, 529 and 530 in 8 Marina Inn Condominium, according to the Declaration of Condominium thereof as recorded 9 in Official Records Book 728, Pages 383 through 458; as amended in Official Records Book 10 759 at Page 95, as further amended in Official Records Book 1457 at Page 1612 and 11 Amendment recorded in Official Records Book 2678, Page 801, as affected by Notice of 12 Quit Claim Assignment of Declarant's Rights recorded in Official Records Book 2668, Page 13 400, of the Public Records of Monroe County, Florida, and exhibits thereof and the 14 Condominium Plans as recorded in Condominium Graphics Book 2, of the Public Records of 15 Monroe County, Florida; together with the undivided interest in common property described 16 in said Declaration of Condominium to be an appurtenance to the above described units 17 Real Estate Numbers: Real Estate Numbers from 00569471- 000200 to 00569471- 005000 18 Size of Site: 125,057 square feet / 2.87 acres of upland according to a survey by Longitude 19 Surveyors, LLC revised on September 24, 2015 20 Land Use Map (Zoning) District: Urban Residential (UR) and Suburban Commercial (SC) 21 Future Land Use Map (FLUM) Designation: Residential High (RH) and Mixed 22 Use /Commercial (MC) 23 Tier Designation: None 24 Flood Zone: AE -9 25 Existing Uses: Attached residential dwelling units, accessory uses including parking areas, 26 docking facilities and driveways. 27 Existing Vegetation / Habitat: Scarified /developed land, adjacent to manmade canals. 28 Community Character of Immediate Vicinity: Uses within 300 feet include single - family 29 residences, residential condominiums, mixed use (residential and commercial) properties, 30 Carysfort Grille, tennis courts, a marina and various common areas of Ocean Reef Club. 31 32 III. RELEVANT PRIOR COUNTY ACTIONS 33 34 ■ The Marina Inn buildings were originally developed through County Building Permit 4 35 C2793 issued in June 1977. Certificates of Occupancy were issued in November 1977. 36 37 ■ On May 16, 2014, a Letter of Development Rights Determination (LDRD) (File 4 2014 -042) 38 was issued determining that 30 permanent residential dwelling units were lawfully 39 established on the property and are exempt from ROGO. 40 41 ■ On June 24, 2014, a Letter of Understanding (File 4 2014 -072) was issued outlined the 42 applicable portions of the County Comprehensive Plan and Land Development Code 43 regarding the proposed demolition of the existing 30 -unit development and construction of a k+y BOCC Staff Report 5/16/2018 File 4 2016 -030 Inclusionary Housing Exemption Page 2 of 8 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 new 30 -unit development, consisting of a single 3 -story building, new parking areas, modified docking facilities and other site improvements. In the LOU, staff informed the property owner and their consultant about the proposed redevelopment of residential dwelling units being subject to the County's inclusionary housing requirements. In this case, nine (9) of the 30 existing dwelling units would be required to be deed - restricted affordable housing. ■ On February 12, 2016, the agent submitted a request (File 4 2016 -024) to amend the prior LOU based on revised plans with a smaller building footprint. ■ On October 7, 2016, the County issued a Letter of Development Rights Determination (File 4 2016 -031) for nonresidential floor area on the ground floor of the existing Marina Inn building. ■ On February 19, 2016, the agent submitted the subject Inclusionary Housing Exemption Request, which originally asked that all inclusionary requirements for the redevelopment of the 30 -unit Marina Inn Condominium be waived. On February 21, 2018, the Applicant amended the request to ask for a waiver for 3 of the required 11 affordable units. On April 18, 2018, the Applicant submitted updated backup data and analysis. ■ The agent and property owner have submitted several building permit applications to the County related to the proposed redevelopment, some of which cannot be approved or issued until the inclusionary housing requirements have been satisfied or an exemption or waiver is approved by the Board of County Commissioners (BOCC). IV. ANALYSIS OF REQUESTED EXEMPTION/WAIVER Pursuant to Section 139- 1(b)(2) of the Monroe County Land Development Code (LDC), the proposed redevelopment of 27 existing residential dwelling units is subject to the inclusionary housing requirements. Pursuant to LDC Section 139- 1(b)(2)a., residential developments, other than mobile home or mobile home spaces covered by LDC Section 139 - 1(b)(2)b., that result in the development or redevelopment of three (3) or more dwelling units on a parcel or contiguous parcels shall be required to develop or redevelop at least 30% of the residential units as affordable housing units unless a waiver is granted by the BOCC. The Applicant is requesting a partial waiver to LDC Section 139 -1(b). As indicated in the amended application submitted on February 21, 2018, and through a letter dated April 18, 2018 (as shown in Exhibit 1), the Applicant indicated that the project is proposed to be redeveloped with 27 of the original 30 residential dwelling units. Furthermore, the Applicant has proposed to partially comply with LDC Section 139- 1(b)(2)a. by providing eight (8) affordable dwelling units off -site (27 units X 0.30 = 8.1 affordable units) to fulfill the inclusionary housing requirement. In cases where all redeveloped units on site are maintained as market rate units, and the required affordable units are provided off site, the Code requires the applicant to provide 30% of the total number of units as affordable. Therefore, pursuant to LDC Section 139- 1(b)(4), in order to maintain a 70 %/30% ratio of market rate units to affordable units, a total of eleven affordable dwelling units off -site are required (27 market BOCC Staff Report 5/16/2018 File 4 2016 -030 Inclusionary Housing Exemption Page 3 of 8 k+y 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 rate units / 11 affordable units = 70% market rate units / 30% affordable units). The Applicant is proposing to provide 8 affordable units off-site, and has requested the BOCC waive the remaining three (3) units required by the LDC. Pursuant to LDC Section 139-1(b)(3), the BOCC may reduce, adjust or waive the requirements set forth in LDC Section 139-1(b) where, based on specific findings of fact, the BOCC concludes, with respect to any developer or property owner, that: 1. Strict application of the requirements would produce a result inconsistent with the Comprehensive Plan or the purpose and intent of this subsection; Applicant: Response: We believe that by the strict application of this section of the code to this project ect does riot meet the purpose of this subsection of the Monroe County Code. The purpose below as outlined in Section 139-1(b)(1) is expressly geared towards making sure that affordable housing is not exacerbated by NEW residential development and redevelopment of existing affordable housing stock. Our project does not fit either criteria. It is not ot 0 1: not considered new residential development and nev r served as affordable lousing cons] residential e I stock, but rather is redevelopment of an existing 30 unit market rate residential condominium that did not serve as affordable housing stock. Section 13,9 indusionai�, Housmq Requirements, Purpose and Intent "The purpose of this subsection (b), consistent with Coal 601 of the Comprehensive Plan, is to ensure that the need for affordable housing is riot exacerbated by new residentiai deve!oprnent and redevelopment of existing of ordob!e housing stock. The intent of this subsection is to protect the existing affordable housing stock to permit owner of mobile homes and mobile home spaces to continue established mobile home uses consistent with the current building and safety standards and requLitions and to ensure that, as rasidenti,-1 development, redevelopment and mobile home conversions occur Comprehensive Plan policies regarding affordable housing araimpiemented.' GOAL 601 Monroe Countysha;) adopt piograms and pulicies to facilitate access by iesidents to '9dE- 13 ;' crecent and s'tructural(ysoLfnd ; and ffiat , -quate and aff ord b)e h ausing ffiat is s f , meets the needs of the pc' puiation ba'sed on type, tenure Charicteristics, anit size 1 nd in L F. I :iividua� preferences. ('S, §' 163-3777(6)('f)% I) Objective 601,3 Monroe County shall continue implementation efforts to e-limfnate substandard h ous) . r�g and to preserve, consenle and enhance the existing housing, stock, mciuding historic structures and sites. IFS, § 163.3177(6)( -3.1 Goal 601 and Objective 601.3 of the Comprehensive plan speak to the County adopting programs and policies to facilitate access by residents to affordable housing. Our project furthers these goals by providing 8 additional affordable housing units. BOCC Staff Report 5/16/2018 File 4 2016-030 Inclusionary Housing Exemption Page 4 of 8 JZo 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 Staff: Strict application of the inclusionary housing requirements to the proposed redevelopment of 27 attached market rate residential dwelling units would not produce a result inconsistent with the Comprehensive Plan or the purpose and intent of LDC Section 139- 1(b)(1). Staff agrees that the 27 existing dwelling units were not and are not serving as mobile homes or as existing affordable housing stock. However, the Applicant's assertion only responds to one aspect of the purpose and intent as established in LDC Section 139- 1(b)(1). The purpose of the inclusionary housing subsection 139 - 1(b), 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 inclusionary housing is three -fold: 1) to protect existing affordable housing stock; 2) 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 3) to ensure that as residential development, redevelopment and mobile home conversions occur, Comprehensive Plan policies regarding affordable housing are implemented. Furthermore, Goal 601, Policy 601.1.9 and Policy 601.1.13 of the Comprehensive Plan require the County to: "facilitate access by residents to adequate and affordable housing;" "maintain land development regulations... to encourage affordable housing;" and "maintain land development regulations on inclusionary housing." Goal 601: Monroe County shall adopt programs and policies to facilitate access by residents to adequate and affordable housing that is safe, decent, and structurally sound, and that meets the needs of the population based on type, tenure characteristics, unit size and individual preferences. [F.S. § 163.3177(6)(f)l., 3.] Policy 601.1.9: Monroe County shall maintain land development regulations which may include density bonuses, impact fee waiver programs, and other possible regulations to encourage affordable housing. Policy 601.1.13: Monroe County shall maintain land development regulations on inclusionary housing and shall evaluate expanding the inclusionary housing requirements to include or address nonresidential and transient development and redevelopment based on specific data and analysis. The Applicant proposes partial compliance by constructing 27 market -rate residential dwelling units on -site and providing eight (8) affordable dwelling units off -site, rather than the required 11. The Applicant is proposing to provide approximately 22.8% rather than the required 30% inclusionary housing. 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 therein; BOCC Staff Report 5/16/2018 File 4 2016 -030 Inclusionary Housing Exemption Page 5 of 8 k+y 5 1 2 Applicant: Response: This project as part of the Ocean Beef Club community furthers plan Cornprehensrve Plan: Policies and the purpose and intent of this subsection through: the following: 1. Ocean Reef club currently provides housing for over 350 Persons. [ocean Reef Club provides affordable housing for the ernployrees of the club through staff housing options onsite at Ocean Reef club. 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 . The number of units at Ocean Reef Club has been long established along with the rights to re- build these units. The only developmentthat is taping place is the redevelopment of exiting units. There is no new development in Ocean Reef beyond the number of residential units that has been established and either built or vested_. Therefore, there is no additional impacts and pressures for affordable housing then existed at the time of initial development. Staff: As stated for item 1, previously, Goal 601, Policy 601.1.9 and Policy 601.1.13 of the Comprehensive Plan require the County to: "facilitate access by residents to adequate and affordable housing;" "maintain land development regulations... to encourage affordable housing;" and "maintain land development regulations on inclusionary housing." The nature of the proposed redevelopment of 27 existing residential dwelling units does not hinder the Comprehensive Plan policies and the purpose and intent of LDC Section 139 -1(b). Staff acknowledges that the existing dwelling units are not mobile homes and are not serving as existing affordable housing stock. The Applicant asserts that Ocean Reef Club currently provides employee /affordable housing onsite for over 350 persons. However, the Applicant fails to demonstrate how the proposal to provide eight (8) rather than the required 11 affordable dwelling units furthers Comprehensive Plan policies and the purpose and intent of LDC Section 139 -1(b). Specifically, LDC Section 139- 1(b)(1) requires that as residential redevelopment occurs, 30% of the total number of units are redeveloped as affordable housing. The Applicant has not provided specific data or evidence that supports the claim that affordable housing needs are provided by alternative means. 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; or BOCC Staff Report 5/16/2018 File 4 2016 -030 Inclusionary Housing Exemption Page 6 of 8 k+y y I Applicant: Response: There is no reasonable relationship between the project and the impacts of the proposers residential development and the requirements of this subsection. Replacing 2) None of the existing 30 market rate residential units served as affordable housing. of - 3G market rate residential does not exacerbate the need for affordable housing units in fact it lowers it by the virtue of less market rate units being redeveloped., s does s a -stock that was being used as affordable housing. 3) This • r providing s a` additional aff• .. • ° housing through mitigation. 3. Ocean Reef Club .. vides affs r housing for over 350 employees of - club through staff housing options onsite at Ocean Reef club. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Staff: The Applicant asserts that there is no reasonable relationship between the impact of the proposed residential redevelopment and requirements of LDC Section 139 -1(b). Staff agrees that the 27 dwelling units were not and are not serving as existing affordable housing stock. However, LDC Section 139- 1(b)(2) requires that as residential properties are redeveloped, Comprehensive Plan policies regarding affordable housing are implemented, and specifically states that residential developments that result in the redevelopment of three or more dwelling units shall be required to redevelop at least 30 percent of the residential units as affordable housing units. The Applicant has proposed to provide eight (8) of the eleven (11) required deed - restricted affordable housing units. The Applicant asserts that the reduction of existing market -rate housing redeveloped on the site from 30 units to 27 units does not exacerbate the need for affordable housing; rather, the demand is decreased. Furthermore, the Applicant states that the location of Ocean Reef club allows affordable housing needs to be met by populations that live in Miami -Dade County. Access from Miami -Dade is facilitated by a dedicated bus line. BOCC Staff Report 5/16/2018 File 4 2016 -030 Inclusionary Housing Exemption Page 7 of 8 k+y 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 However, the Applicant has not provided specific data to prove or disprove this claim, and has not provided evidence to show that the construction work created by the redevelopment project will not generate additional need for affordable housing. 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. Applicant: No response. Staff: The developer and property owner do not claim, nor have they demonstrated, that the strict application of the inclusionary housing requirements would improperly deprive or deny the developer or property owner of constitutional or statutory rights. Pursuant to LDC Section 139- 1(b)(3)c., any developer or property owner who believes that they may be eligible for relief from the strict application of LDC Section 139 -1(b) may petition the BOCC for relief under LDC Section 139- 1(b)(3). Any petitioner for relief hereunder shall provide evidentiary and legal justification for any reduction, adjustment or waiver of any requirements under LDC Section 139 -1(b). In addition, the property owner may seek alternative compliance pursuant to LDC Section 139- 1(b)(4) or linkage of projects pursuant to LDC Section 139 -1(c). An excerpt of LDC Section 139 -1 is attached as Exhibit 2. V. RECOMMENDATION Based on Goal 601, Policy 601.1.9 and Policy 601.1.13 of the Comprehensive Plan, and the conclusion that the proposed redevelopment project does not meet any of the four (4) criteria in subsection 139- 1(b)(3) that the BOCC may use to reduce, adjust, or waive inclusionary housing requirements for waivers, staff recommends DENIAL to the Board of County Commissioners of the request for a partial waiver to the County's inclusionary housing requirements, pursuant to Section 139- 1(b)(3) of the Monroe County Land Development Code, for the proposed Marina Inn redevelopment project. VL EXHIBITS 1. Application and updated backup and analysis (File 4 2016 -030) 2. LDC Section 139 -1(b) and 139 -1(c) BOCC Staff Report 5/16/2018 File 4 2016 -030 Inclusionary Housing Exemption Page 8 of 8 k+y Monroe County Comprehensive Plan Update (b) Inclusionary housing requirements. (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. Determinations 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 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: 1. 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. C 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 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 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. L If a developer does not elect to meet the requirements of subsection (b)(2) of this section through alterative 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 permit 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 permit for any market rate unit. C 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 Monroe County Comprehensive Plan Update owners shall provide to the county information 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. 1. 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; 2. 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; 3. 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; 4. 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; 5. Affordable housing units may not be used for tourist housing or vacation rental use; 6. 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; 7. 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 terminate at the end of the existing lease term. The maximum lease for any term shall be three years or 36 months; 8. When determining 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; 9. The income of eligible households shall be determined 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 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 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 earmarked 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