04/06/2009 Council Packet - Laserfiche WebLink

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• Longevity of price restrictions. Ordinances that allow the "discount" to expire after the first sale essentially grant a windfall profit to the original buyer, preventing the "subsidy" of a density bonus from being passed on to future buyers. Density bonuses essentially can help to make more housing more affordable to certain buyers. Some programs restrict price appreciation through the establishment of land trusts. Generally a nonprofit affordable housing developer works with the city or its HRA to acquire land or existing homes, build or rehabilitate housing, and administer a long -term affordability program. Requested Council Direction The council should conclude if it wants to place affordable housing as its first priority in new residential subdivisions or take a holistic approach to attaining all the public values addressed in the Comp Plan. Staff recommends that, rather than a "stand alone" ordinance, affordable housing be incorporated into the PUD ordinance. With a PUD, the city council can weigh all public values listed in Policy 5, and use incentives on a case by case basis. Revising the PUD ordinance is a lengthy, systematic process involving staff, consultants, advisory boards and city council. A first step would be to consider the laundry list of potential incentives and ascertain which ones should be used to encourage affordable housing. Those incentives include, but are not limited to: Density bonuses Reducing street and right -of -way widths Reducing floor area and parking requirements Trunk utility and stormwater management fee credits Staging plan flexibility Streamlining city approval process Financial incentives such as TIF and reduced fees Participating in Livable Communities Local Housing Incentives Program Partnering with programs offered by the County HRA, State, MHFA and nonprofits to fund development of affordable housing Attachment(s) 1. Current Affordability Limits 6 • • •