AGENDA #14
MEMORANDUM
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
J. B. Culpepper, Planning Director Gene Poveromo, Development Coordinator |
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SUBJECT: |
Response to Petition from Radway Design Associates – Request for Minor Change to Special Use Permit Modification |
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DATE: |
June 27, 2007 |
PURPOSE
This report responds to a May 17, 2007 petition from Radway Design Associates requesting a minor change to the Residences at Chapel Hill North Special Use Permit Modification (Attachment 1). The minor change would clarify provisions of the Special Use Permit Modification regarding affordable housing.
Adoption of the attached Resolution A would endorse the Town Manager’s opinion that this request can be considered a minor change to the approved Special Use Permit Modification.
BACKGROUND
On April 11, 2007, the Council approved the Special Use Permit Modification for the Residences at Chapel Hill North authorizing construction of 123 dwelling units (Attachment 3). The proposed Residences at Chapel Hill North is located east of the Chapel Hill North Shopping Center off of Perkins Drive.
Stipulation 5 in The Residences at Chapel Hill North Special Use Permit Modification describes an affordable housing component that in general, requires the following:
1) At the Issuance of a Certificate of Occupancy: an initial payment-in-lieu to the Town’s Affordable Housing Fund of approximately $400,000; and
2) At conversion from rental to condominium units: a second payment-in-lieu or an offer of affordable-for-sale dwelling units.
The May 17, 2007 letter from the applicant seeks to insert further descriptive information into the Special Use Permit document that specifies a ratio of one- and two-bedroom units. The applicant is requesting that the Town Manager considers this request as a minor modification of the Special Use Permit.
MINOR MODIFICATION OF SPECIAL USE PERMIT
The Land Use Management Ordinance provides guidance for minor changes to a Special Use Permit that may be approved administratively. Under the regulations in the Land Use Management Ordinance, the Town Manager is authorized to make minor changes to Special Use Permit Modifications according to Section 4.5.4 of the Land Use Management Ordinance (Attachment 2).
APPLICANT’S PROPOSAL
The applicant has requested that a minor change be made to the approved Special Use Permit Modification to specify a ratio of one-bedroom and two-bedroom dwelling units. The applicant is proposing to add this bedroom ratio to stipulation 5 in the approved Special Use Permit as shown below in the bold and underlined text:
Option 1: Permanently Affordable Condominium Units – Affordable units for ownership shall be deeded to an affordable housing provider, according to Town Inclusionary Zoning and Affordable Housing standards and shall be approved by the Town Manager prior to recordation of the condominium plat. The required number of affordable units shall be based on a formula that credits the developer/owner for the initial payment-in-lieu.
Number of Affordable Housing Units Required with Condo Conversion (F) = Affordable Housing Obligation (B) less the initial payment in lieu (D) divided by required subsidy of the $75,000 (E) [Formula: F = B – (D4E)]
Type of Affordable Housing Units shall be 2/3rd one-bedroom units and 1/3rd two-bedroom units. Fractions of units shall be rounded in favor of the provision of 2 bed-room units.
Option 2: Payment-In-Lieu with Condo Conversion - If a payment-in-lieu of affordable ownership units is proposed, in addition to the initial payment-in-lieu of affordable rental units, the payment shall be calculated at such time the development converts to condominium ownership. The additional payment-in-lieu shall be provided to the Town’s Revolving Acquisition Fund prior to recordation of the condominium plat. The total payment amount shall be based on the funding (subsidy) necessary, as determined by the Town Manager, for a local non-profit housing organization to make a dwelling unit affordable (At the time of this approval, April 2007, an affordable housing subsidy was calculated as $75,000 per dwelling unit.). The total payment shall be equal to the funding (subsidy) multiplied by the number of required affordable units, according to the following formula:
Payment-in-lieu of condo conversion (G) = Affordable Housing Units Required with Condo Conversion (F) multiplied by a to be determined subsidy required by Affordable Housing Provider (H) [Formula: G = F X H]
Type of Affordable Housing Units for calculating a payment-in-lieu shall be 2/3rd one-bedroom units and 1/3rd two-bedroom units. Fractions of units shall be rounded in favor of the provision of 2 bed-room units.
Staff Comment: We believe the issues related to the request by the Residences at Chapel Hill North are: 1) whether the request would be a minor change or Major Modification of the Special Use Permit Modification; and 2) the justification for the proposed change to the approved Special Use Permit Modification.
Regarding the regulations (Section 4.5.4 Land Use Management Ordinance), this request does not propose a change in the boundaries, change of use, increase in floor area or parking, substantial physical or structural changes, substantial changes to access and circulation, or substantial changes to landscaping.
We have reviewed the record of the proceedings of the original application. The public record during the approval process reflect an affordable housing proposal based on 15 percent affordable units comprised of 2/3 one-bedroom dwelling units and 1/3 two-bedroom dwelling units. We believe that the requested change to the approved Special Use Permit Modification does not change the substance or intent of the Permit. We believe that the request could be considered a minor change and that it would also be reasonable to conclude that the requested change would not require evidentiary support in addition to that presented at the Public Hearing for the original Special Use Permit Modification.
With respect to the justification for the proposed change, we concur with the applicant’s statement in their letter that the information concerning the bedroom ratio was inadvertently left out of the recommended resolution. We also believe that the requested change to the Special Use Permit is an important component in calculating a payment in lieu or required bedroom/unit type if the project converts to condominium ownership.
RECOMMENDATION
We recommend that the Council adopt the attached Resolution A, endorsing the Manager’s opinion that clarifying the ratio of one- and two-bedroom affordable dwelling units is a minor change. Following the Council endorsement of the staff opinion, we would administratively approve a minor change to the Special Use Permit Modification for the Residences at Chapel Hill North to adjust the affordable housing provisions of the Special Use Permit Modification.
Alternatively, the Council could conclude that the proposal is not a minor change and advise the Town Manager (please see Resolution B). In that circumstance, the applicant would need to submit a Special Use Permit Modification application or choose to keep the existing Special Use Permit Modification unchanged.
ATTACHMENTS
1. Request from the Radway Design Associates dated May 17, 2007 (p. 6).
2. Section 4.5.4 of the Land Use Management Ordinance (p. 9).
3. Approved Special Use Permit Modification (p. 11).