AGENDA #11

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	J.B. Culpepper, Planning Director
	Loryn Clark, Housing and Neighborhood Services Coordinator
SUBJECT:	Response to Petition from the Inclusionary Zoning Task Force Regarding the Task Force Report
DATE:	January 22, 2007

PURPOSE

The purpose of this memorandum is to respond to a petition submitted by the Inclusionary Zoning Task Force to the Council on November 20, 2006. 

The attached resolution would establish a process for developing an Inclusionary Zoning Ordinance. 

The attached ordinance would allocate funds to hire a consultant to prepare a draft Inclusionary Zoning Ordinance.

BACKGROUND

During the development of the Town’s Land Use Management Ordinance, enacted January 27, 2003, the Council considered, but did not include, inclusionary zoning provisions.  In September 2001, the Town’s consultant, Mark White, provided a memorandum to the Council with advice as to how inclusionary zoning could be included in the Land Use Management Ordinance. 

On April 27, 2005, the Council held a work session on the Comprehensive Plan Affordable Housing Strategies.  At that time, the Council decided to initiate a process to consider drafting an inclusionary zoning ordinance, and established a Council Committee to draft a proposal.  The Council also decided to appoint a citizens’ committee to help develop the draft.

Based on the Council Committee’s recommendations, on June 27, 2005 the Council adopted a resolution to create a Task Force to work on the development of an Inclusionary Zoning Ordinance for the Town.  

Also on June 27, 2005, we presented a report to the Council regarding a proposed work plan for affordable housing initiatives. One element of the work plan was to develop an inclusionary zoning ordinance for Chapel Hill.   The Council adopted a resolution that included a schedule for preparing an inclusionary zoning ordinance.   The memorandum also recommended steps to be undertaken to develop an inclusionary zoning ordinance.  

On September 22, 2005, the Council adopted the following charge for an Inclusionary Zoning Task Force:

• To evaluate the data and reports collected by staff pertaining to the local housing market and need for additional affordable housing;
• To determine the need and justification for an inclusionary zoning ordinance;
• To evaluate ordinances that have been enacted or proposed in other communities; and
• To make a recommendation to the Town Council on the content of an inclusionary zoning program and ordinance for Chapel Hill. 

SUMMARY OF REPORT

On November 20, 2006, the Inclusionary Zoning Task Force presented a draft ordinance to the Council.  Important elements of the document include:

• Comprehensive strategies for achieving affordable housing in developments involving five or more new housing units;
• Allowance of density credits to offset costs;
• Continued insistence on permanent affordability;
• Expansion of mechanisms to ensure permanent affordability to include more than the land trust model; and
• Service to households below (and up to) 80 percent of the area median income. 

The Task Force also recommended that the Town:

• Establish a new Town board to make ongoing recommendations on affordable housing related issues: and
• Hire a consultant well versed in issues of municipal ordinances and inclusionary zoning to help the Town bring the draft ordinance to satisfactory final form. 

The Task Force’s report also identifies the following areas that require the Council to make policy decisions:

• Density credits
• Income levels for affordable housing units or lots
• Price of affordable units or lots
• Affordability controls; resale of affordable housing units or lots

DISCUSSION

The Task Force report raises questions and issues that require additional analysis and expertise.  We agree with the Task Force’s recommendation that the Council consider hiring a consultant to analyze these issues, and prepare an ordinance in final form for public review that is consistent with the elements proposed by the Task Force.  We recommend that the Council hire the law firm of White and Smith, LLC.  Principal Mark White drafted the Town’s Land Use Management Ordinance that was adopted by the Council in 2003, and previously drafted an inclusionary zoning ordinance for the Town.  Mr. White is also well versed in North Carolina state law.  We estimate the cost of this service to be between $15,000 and $25,000.

Proposed Process

We recommend the following schedule for review of an Inclusionary Zoning Ordinance:

January 22, 2007	Council authorize staff to contract with White and Smith, LLC to draft ordinance and review of the draft ordinance by the Planning Board
January – March 2007	Preparation of draft by consultant
April 3, 2007	Planning Board review of draft ordinance
May 14, 2007	Public Hearing on draft ordinance
June 11, 2007	Council consideration of an inclusionary zoning ordinance

We believe that this proposed schedule would provide sufficient opportunity for the public to comment on a proposed ordinance, and would also provide the Council with the opportunity to discuss the issues identified by the Task Force as those that require policy decisions. 

RECOMMENDATION

That the Council adopt the attached resolution to establish a process for developing an Inclusionary Zoning Ordinance.  We also recommend that the Council enact the attached ordinance to allocate funds to hire a consultant to prepare a draft Inclusionary Zoning Ordinance.

ATTACHMENTS

1. November 20, 2006 Memorandum to the Mayor and Council from the Inclusionary Zoning Task Force (begins new page 1).