AN ORDINANCE AMENDING THE CHAPEL HILL LAND USE MANAGEMENT ORDINANCE REQUIREMENTS FOR ALTERNATIVES TO FLOOR AREA RESTRICTIONS FOR MAJOR SUBDIVISION AND PLANNED DEVELOPMENT (2006-05-08/O-4)

WHEREAS, the Council of the Town of Chapel Hill has considered the proposed text amendment to the Land Use Management Ordinance regarding modification to the requirements for alternatives to floor area restrictions for Major Subdivisions and Planned Development and finds that the amendments are warranted in order to achieve the purposes of the Comprehensive Plan;

NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

Section 1. Alternatives to Floor Area Restrictions of the Land Use Management Ordinance are hereby revised to add a new section 3.8.6.3 to read as follows:

“3.8.6.3 Substitution of Payment-in-Kind of Affordable Housing for Floor Area Restrictions

As an alternative to utilizing the affordable housing components options in Section 3.8.6.1, a developer of a Major Subdivision or a Planned Development Housing, which proposed 5-12 single-family or two-family residential lots, may, with the approval of the Town Council, make a payment-in-kind to support the development of affordable housing in the community.

A payment-in-kind shall include any type of infrastructure improvement direct or indirect that upon finding by the Town Council, provides benefit towards the funding or encouragement of affordable housing initiatives.

The amount of the payment-in-kind shall be calculated by multiplying the number of affordable units to be provided as calculated in Section 3.8.6.1 (without dropping fractions) by an estimate of funding that would be needed to make a homeownership opportunity in the proposed development available to individuals and families with annual income at or below 80 percent of the area median income.  The estimate shall be developed in consultation with the Town Manager and approved by the Town Council.  The developer shall provide the payment-in-kind before approval of a final plat for the subdivision or approval of a minor subdivision for the Planned Development-Housing, provided, however, that the Town Manager may allow phasing of the payment-in-kind consistent with the approved phasing of the subdivision.

A developer may make a partial payment in combination with the partial provision of an affordable housing component if the Town Council determines that the combination is appropriate.”

Section 2.  That the amendments shall become effective upon enactment.

This the 8^th day of May, 2006.