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Item O04 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY REVISED TIME CERTAIN Meeting Date: October 16, 2002 Division: District 1 Bulk Item: Yes No Department: Commissioner Dixie M. Spehar AGENDA ITEM WORDING: Approval to refer to staff and Planning Commission to review as an amendment to Section 9.5-4(A-5) and (M-lO), and Section 9.5-266(a), (b), and (c), Monroe County Code; revising the definition of affordable housing, amending eligibility requirements, and providing a family size calculation for rental units. Upon approval from the Planning Commission, this amendment will be brought to a public hearing before the Board of County Commissioners for input on the proposed ordinance. ITEM BACKGROUND: The existjng provisions on affordable housing have resulted in an imbalance between affordable and moderate housing, thereby decreasing the availability of housing to a large proportion of people employed at moderate incomes. This ordinance is designed to alleviate that imbalance. PREVIOUS REVELANT BOCC ACTION: Prior provisions for affordable housing and employee housing. CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: TOTAL COST: BUDGETED: Yes No COST TO, COUNTY: REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Arty ~ OMB/Purchasing Risk Management - - '/~ ~. ~ltW (Commissioner IXle M. Spehar) DIVISION DIRECTOR APPROVAL: DOCUMENTATION: Included X To Follow Not Required_ AGENDA ITEM # ill DISPOSITION: Revised 2/27/01 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY TIME CERTAIN Meeting Date: October 16, 2002 Division: District 1 Bulk Item: Yes No Department: Commissioner Dixie M. Spehar AGENDA ITEM WORDING: Request Approval to advertise a public hearing to adopt an ordinance revising Section 9.5-4(A-5) and (M-lO), and Section 9.5-266(a), (b), and (c), Monroe County Code; revising the definition of affordable housing, amending eligibility. requirements, and providing a family size calculation for rental units. ITEM BACKGROUND: The existing provisions on affordable housing have resulted in an imbalance between affordable and moderate housing, thereby decreasing the availability of housing to a large proportion of people employed at moderate incomes. This ordinance is designed to alleviate that imbalance. PREVIOUS REVELANT BOCC ACTION: Prior provisions for affordable housing and employee housing. CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: Approval to advertise for public hearing in Key Largo on November 13,2002 at 5:01PM. TOTAL COST: BUDGETED: Yes No COST TO COUNTY: REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Atty ~ OMB/Purchasing _ Risk Management_ DMSIONDIRECTORAPPROVAL: i/~~, In. · L.~ (Commissio~xle M. Spehar) DOCUMENT A TION: Included X To Follow Not Required_ AGENDAITEM#M DISPOSITION: Revised 2/27/01 OCT-04-02 16:52 FROM:MONROE COUNTY ATTY OFFICE 10:3052823516 PAGE 1/8 ORDINANCI! NO. -2002 AN ORDINANCE AMENDING SECTION 9.S-4(A-S), AND eM-10), AND SECTION 9.5..266 (a), (b) and (e) MONROE COUNTY CODe; PROVIDING FOR A REVISED DEFINITION OF AFFORDABLE HOUSING; TO AMeND APPLICANT EUGIBIUTY REQUIREMENTS: TO PROVIDE A FAMILY SIZE CALCULADON FOR RENTAL UNITS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF INCONSISTENT PI\OVlSIONS: PROVIDING FOR AN EFFECTIV~ DAlE. WHEREAS, the Monroe County Board of County Commissioners finds that the need for affordable and employee housing has become persistent and affects a large proportion of employees in Monroe County, and WHEREAS, the Monroe County Board of County Commissioners wish to create opportunities for wanting families to obtain affordable, dean and safe housing; and WHEREAS, the Monroe County Board of County Commissioners finds that adjustments are needed to distinguish income requirements among low income, median income, and moderate income employee housing; and WHEREAS, the Monroe County Board of County Commissioners finds that a revision of the County's affordable housing regulations is necessary to address an imbalance in affordable versus moderate housing; and WHEREAS, the Monroe County Board of County Commissioners finds that a revision of the County's affordable housing regulations would promote the health, safety and welfare of the citizens of Monroe County; now, therefore BI! IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONRO! COUNTY. FLORIDA, that: Section 1. Section 9.5-4 (A-S) of Monroe County Code Is amended to read as follows: (A-S) Affordable Housing refers to residential dwelling units that meet the following requirements : · Contain less than or equal to one thousand three hundred (1,300) square feet of habitable space; and · Meet all applicable requirements of the United States Depart~ent of Housing and Urban Development minimum property standards as to room sizes, fixtures, landscaping and building materials, when not in conflict with applicable laws of Monroe County; and · Restricted for a twcmty ',ea... fifty-year period to use by households that meet the requirements as stated below. .OCT-04-02 16:52 FROM:MONROE COUNTY ATTY OFFICE 10:3052823516 PAGE 2/8 (a) Generallv, affordable housing for a rental dwelling unit shall mean a dwelling unit whose monthly rent. not includin9 utilities. does not exceed 30 percent of tha~ amount which represents either 60 (very low income) or 80 (low income) ~r 120 (moderate incomel.nercent of the monthly median household incom~ for Monroe County. For an owner-occuRied dwelllnq unit, "affordable hOUSing" shall mean a dwelling unit whose monthly mortgage pavment (includina taxes and Insurance.. but not including utilities) does not exceed 33 percent of the amoynt that reDresents 120 percent of the monthly median household inmme for Monro@ County. However, in any case# the sales price shall not exceed four and one-quarter times the annual median household income for Monroe County (b) Affordable housing very low income shall be a rental dwelling unit whose monthly rent. not including utilities. does not exceed 30 percent of the amount which represents 60 percent of the monthly median household income for Monroe County, as Qrovided for in subsection 1. . (k) Affordable hQusing rental low income shall me~n a dwelling unit whose monthly rent. not including utilities, does not exceed 30 percent of the amount which represents 80 percent of the monthly median household income for Monroe CountY, as provided for in subsection 1. Cd) Affordable hOI)Sing rental moderate income shall mean a dwelling unit whose month Iv rent. not including utilities. does not exceed 30 percent of the amount which represents 120 percent of the monthly median household income, provided that such units are located with housing development prQjects of twenty (20) yniq or fewer. as provided for in subsection 1. (e) Affordable housing mixed income shall be a rental dweJlin9 unit whose montblv renta' fJayment. not 'ncluding utilities. does not exceed ~O percent of the amount which represents 120 oercent of the monthly median hQusehold income, provided that the mixed Income affordable housing development in which the dwelling units are located also contain dwelling units which meet the definition of low and/or very low income affordable housing in those proportions required by Federal and State of Florida law. as provided for in subsection 1. (0 Affordable housing owner occupied moderate income shalL mean a dwelling unit occupied only by a moderate income bousehold whose income does not exceed 120 percent of the median gross annual household in,om~ for Monroe County. as provided for in subsection 1. (a) Affordable housing trust fund shall mean the tru~t fund established and maintained by the county for revenues from fees in lieu of constructing affordable housing, and revenues from another SOurce earmarked for the trust fund by land development re9ulatfon~ ordinance or donation. (h) Median hQusehold income shall mean the median hou~ehold income publiShed for Monroe County on an annual basis by the U.S. Department of Housing and Urban Develooment. 0) Median income. eligibility, rental rates and Qualifying incomes shall mean a table of ellgibi/itv requirements compIled each year by the Planning Department 2 . OCT~04-02 16,53 FROM,MONROE COUNTY ATTY OFFICE 10,3052823516 PAGE 3/8 bctsed upon th~ meai!!n household income published for Monroe County on an annual basis by the U.S. Department of Housin9 and Urban Development. The Co~ntY shall relv upon this table to determine maximum rental rates and maximum househ~ld incomes eligible for affordable housing. Section 2. Section 9.5-4 (M-10) Monroe County Code, is amended to read as follows: eM-IO) Median household income means the median of household income pel" houscf:tefd !He. {os aekFMiflea ffem time to time to be R'lCsjaA 8't. t:he l:J .c:. CeflSI::JS -'6F the Florida SbtisBml ABstFaEt. published for Monroe County on an annual basis by the U.S. Deoartment of Housing and Urban Development. Section 3. Section 9.5-266 Monroe County Code, is amended to read as follows: Sec. 9.5:"266. Affordable housing; employee housing. (a) Affordable Housing: (1) Notwithstanding the density limitation in section 9.5-262, the owner of a parcel of land shall be entitled to develop affordable housing as defined in section 9.5-4(A-5). Affordable housing units may be developed on parcels of land classified as Urban Residential CUR) at an intensity up to a maximum net density of twenty-five (25) dwelling units per acre without regard to the transferable development rights (TOR) requirements which may be imposed by these regulations. (2) Attached or detached affordable housing units may be developed in all other land use districts as set forth and provided in division 2, sections 9.5-232 through 9.5-255, up to the maximum net density established for that district without regard to the transferable development rights (TOR) requirements which may be imposed by these regulations. (3) Before any certificate of occupancy may be issued for any structure, portion or phase of a projects subject to this section, restrictive covenant(s), limiting the required number of dwelling units to households meeting the income criteria described in paragraph (4)a. or (4)b. of this subsection running in favor of Monroe County and enforceable by the county, shall be filed in the official records of Monroe County. The covenant(s) shall be effective for tweAty (20) fifty (50) years but shall .not commence running until a certificate of occupancy has been issued by the building official for the dwelling unit or units to which the covenant or covenants apply. (4) In order for the owner of a parcel of land to be entitled to the incentives outlined in this section, and division 1.5, article IV, the owner must ensure that: 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 subsection 9.5-4(5); and, b. If the affordable housing dwelling unit is designated for employee housing or commercial apartments; the use of the dwelling is restricted to households that 3 OCT-04-02 16:53 FROM:MONROE COUNTY ATTY OFFICE 10:3052823516 PAGE 4/8 derive at least seventy (70) percent of their household income for gainful employment in Monroe County: and meet the adjusted gross annual income f/mits for median-income as defined in subsection 9.S-4(A-S); and c. The use of the affordable housing dwelling unit is restricted for a period of at least tweAty {29) fifty (51)) years to households that meet the requirements of paragraph (4)a. or b. above; and, &: l"Ae si2e af aft affsF6able housing dwelliAg l::IAit sRall be limited by a C8f18itiaA te be placed Oft tA€: Elevelef3FfleRt permit .,NRich restriets Nle habitable space of the- t:lRit to a maximum 8f aRE: tRal:lsaR~ three hundred (l,3QG) SEll:lafe feet fer a period af at least iweRt'! (20) years. Section 4. Sec. 9.5-266(a)(5) is renumbered by Section 5 below and a new subparagraph (a)(5) is inserted as follows: (5) a. Generallv. Residenti~1 or mixed use projects offered at market rate shall be required to develop at least 30 percent (ofl units of at least 400 square feet each as affordable. but may contribute a fee in lieu of each unit to the affordable housinS} trust fund, if approved by the County Commission. The per unjt fee shall be $40,000.00 (representing construction cost. less land cost. of a 400 square foot unit). Vested units shall be subject to this subsectlon if not otherwise governed by law or aqreement. b. Unkage of prQiects. Two development prQjects may link to allow the affordable housing requirement of one development project to be built a the site of another project. so lono as the affordable housing requirement of the latter development is fulfilled as well. Written proQf of the project Iinkage shall be supplied by th~ developer to the County Commission at the time of the first site plan approval. The prQject cgntalnlng the affordable units must be built either before or simultaneously with the project without. or with fewer than. the reouired affordable units. In addition. if a develoger 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. Written proof of the linkage must be supplied by the develoller to the County Commission at the time of the subsequent development's site plan approval. Unkage shall not be available if either (fevelopment is entirely or in Qart to be constructed by gublic funds. Finally. all Iinka9es under this subsection may occur within the county or on a site within the county and on a site in the incorporated cities of Key West, Marathon and Iil@morada, subject to an inter/ocal agreement. ,. Demonstration ot continuing affordablllty. Demonstration of continuing affordability shall be by deed restriction that effed:ivelv runs with the land and is binding on owners. suc~sors in ownership. or assigns. The deed r~striction shall be in a form grQvided by the county and shall be for a period of at least s6 years. It shall be recorded in the county records. d. Rsoortina Requirements. Owners of affordable housing projects or units sh~" furnish the Planning Director or his designee with annual information necessary 4 QCT-04-02 16:54 FROM:MONROE COUNTY ATTY OFFICE ID:3052823516 PAGE 5/8 e. Compliance with antidiscrimination policy. AU property owners offering affordable housin9 under this division shall comply with the antidiscrimination policy of Monroe County. Section 5. Sec. 9.5-266(5) and (6) are renumbered as follows: ~ !ID The eligibility of a potential owner-occupier or renter of an affordable housing dwelling unit or an affordable housing dwelling unit designated as a commercial apartment or employee housing, shall be determined 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 utilized an affordable housing ROGO allocation; or b. At the time the potential renter applies to occupy a residential unit that utilized an affordable housing ROGO allocation. t67 ill The Planning department shall: a. ReView the lease agreement for an affordable housing unit on an annual basis to ensure that the rent for the unit does not exceed the affordable rent standard for the unit pursuant to subsection 9.5-4(A-S); and, b. Review the lease agreement and letter of employment and/or occupation license of an occupant of a commercial apartment or employee housing on an annual basis to ensure that the occupant is gainfully employed in Monroe County. c. Review annual verification statement from business certifying that employee housing is occupied by employees meeting income criteria in subsection 9.5- 266(a)(4)b. The planning department will review the lease agreement for the unit on an annual basis to ensure that the rent for the unit does not exceed the affordable rent standard for the unit pursuant to [sub]section[s] 9.5-4(A-5} and 9.5-266. Section S. Sees. 9.S-266(8) through (12) are created to read as follows: (8) Affordab/~ Housing Trust Fund. The affordable housing. trust fund (referred to as the "trust fundO) is established. The trust fund shall be maintained with funds earrTJarked for the trust fund for the DU'1'ose of promoting affordable housinQ in the county an~ ilia cities of Monroe County. Monies received by the trust fund shall not be cOmmjngled with general operating funds of the county. The trust fund shall be used for the follOwing: a. Finandal aid to developers as project grants for affordable housing construction: b. F'inant;ial aid to eligible homebuyers as mortgClge assistance; ~ Financial incentive for the conversion of transient units to affordable residential units: 5 OCT-04-02 18.64 FROM.MONROE COUNTY ATTY OFFICE 10.3062923618 PACE 8/S do Direct investment in or leverage to housing affordabilitv through site aCQuisition. housing devefopment ~nd housing conservation: Qr e. Other affordable housing, j2ur.goses from time to time established by resolution of the County Commission. (9) Household Requirements. The following eli9ibility requirements shall be required of households or persons to Qualify for affordable housing' units to the extent lawful: a. The household or person shall derive at least 70 oercent of its or his/her total Lncome from gainful employmenj; in the countvr or establish eligibility as provided in subsection f. below. b. At the time of lease of low income affordable housin9 unit. the total income of ~1i9ible household Or persons shalf not exceed 100 percent of the median householg income for the county. c. During occupancy Qf any low income affordable housinQ. a household's income may increase to an amount not to exceed 120 percent of the median household income for the county. In such event. the tenant'5 occupancy shall terminate at the e,nd of the existing lease term. d. At the time of sale of an owner-occupied affordable unit. the total income of eligrble households or persons shall npt ~xceed 120 percent of the median household income for the county. e. During occupancy of any affordabl~ hou~ing rental unit, a household's annual income may increase to an amount not to exceed 140 Qercent of the median household income for the county. In such event. the tenant's occupanCY shall terminate at the end of the f:xisting lease term. f. EligibilitY is based on proof of legal residence In the county for at least one consecutive year. g. Priority shall be given to families of four or more members for larger sized affordable housin9 units. h. The applicant shall execute a. sworn affidavit stating the applicant's intention to OCCUDY the dwellinq unit. i. The income of eligible households shall be determined by counting only the first and hi9he~t paid 40 hours of employment per week of each unrelated adult. For a household containing adults related by marriaae or a domestic ~rtnershlD registered with the county, only the highest 60 hours of the combined employmen~ shall be counted. The income of dependen~ regardless of age shall not be counted in calculating a household's income. k. The Board of County Commissioners may review a hou~~hQld's income and unique circumstances to determine eligibility and conformance with the intent of .thls 6 OCT-04-02 18:54 FROM:MONROE COUNTY ATTY OFFICE ID:3052823518 PAGE 7/8 ordinance to aSSure that oeoole in need are not excluded anq people without ne@Q are not included. (10) Accessory Unit lnn/I. In all land use districts of the County. except Native Area. Sparsely Settled. Mainland Native... Improved Subdivision. Recreational vehicle: Offshore Island, Military F~cilities and Pirk ~nd R~fiJge land use districts the .county .Board of County Commissioners desires to encourage the addition of affordable housin~ on the second story of commercial properties and in association with institutions to romote employee housing. Such development shall Qe knQwn CIS CLc~~ry unit infill~ T~n@nt5 shall be eligible Qerson~ under Section 9.5. 266{h). Applicants under this section may grovjd~ two bicycle or scooter parking spaces per unit as 2m alternative to applyJna to th; county for Darkina variances. provided that units are 600 square feet or less. The countY shall process applications under this section in the same manner as multifamily units or as a conditional use of multifamily is not allowed. (11) Communitv housing development organization. The Board of County Commission~rs may e~l1li~h a nonprofit community housin9 development organization (CHDO). Dursuant to federal regulations governing such organizations, to serve as developer of affordable housing units on county-owned pmgertY located in community redevelopment areas, Including or located in the incorporated part of th~ C9ynty I upon interlocal agreement. In such event, the county may delegate to the community housing development organization all or ~rtial administration of the affordable housing trust fund. (12) Family size.~When establishing a rental and sales amount. one shaUassume family size as indicated in the table below. This section shall not be used to establish the mctximum number of individuals who actually liv~ in the ynit. Size of Unit Assumed Filmily Size Minimum Occupancy EffIciency (no separate bedroom) 1 1 One bedroom 2 1 Two bedroom 3 2 Three bedroom 4 3 Four or more bedrooms 5 1 per bedroom ~ection 5. Sec. 9.5-266(6)(b) is amended to read as follows: (6)(b).c..ul Employee Housing. Any person undertaking the development of multifamily dwellings, hotels, motels, or other structures to be devoted to commercial or office use, destination resorts or structures devoted to Industrial use in any district except Suburban Residential (Limited), Mainland Native, Conservation, and Improved Subdivision shall provide for employee housing In the manner set forth in detail in the form of specific 3MeRSFReRts te t:I=Iese land development re~t::JlatieAS VJAieh May ae recommended bOt the Affordable He~siR~ Task Feree for the Florida Kc',s net later thaft.- eigRteeR (18) FA8Rth:s at tflC- Elate 8f these I3fe\/isisRS or June I, 1990. in Section 9.5.266(a).. Affordable housing projects are exempt from this requirement. Section J. If any section, subsection. sentence, clause, item, change, or provision Of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such validity. 7 OGT-04-02 16:55 FROM:MONROE COUNTY ATTY OFFICE ID:3052823516 PAGE a/a section 4. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of said conflict. Section 5. This ordinance shall be filed in the Office of the Secretary of State of FJoridCl, but shall not become effective until CI notiaa is issued by the Department of Community Affairs or Administrative Commission approving the ordinance. Section 6. This ordinance shall be transmitted by the Planning Department to the Department of Community Affairs to determIne the consistency of this ordinance with the Florida Statutes. Section 7. The Director of Growth Management is hereby directed to forward a copy of this ordinance to the Municipal Code Corporation for incorporation in the Monroe County Code of Ordinances once this ordinance is in effect. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Rorida, at a regular meeting of said 80ard held on the day of , 2002. Commissioner MCCoy Commissioner Nelson Commissioner Neugent Commissioner Rice Commissioner Spehar (SEAl) Attest: DANNY L.KOLHAGE, Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNlY, FLORIDA By Deputy Clerk By Mayor/Chairperson JdordAfford2 DATE Ni~~2 8