AGENDA #7
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Land Use Management Ordinance Text Amendment – Modifications to Housing Floor Area Restrictions for Major Subdivisions and Planned Development Regarding Payment-in-Kind for Affordable Housing
DATE: May 8, 2006
PURPOSE
The enactment of the attached Ordinance A would amend the Land Use Management Ordinance to allow for payment-in-kind for affordable housing.
BACKGROUND
A payment-in-kind, as a substitute for on-site affordable housing, would include any type of infrastructure improvement, which the Council determines provides benefit towards the funding or encouragement of affordable housing initiatives. If the Council wishes to pursue a payment-in-kind, the amount of the payment-in-kind could be calculated in a manner similar to the process used to determine a payment-in-lieu of affordable housing. We recommend language that would specify that the estimate of value of the payment-in-kind be based on the estimate of funding that would be needed to make a homeownership opportunity in the proposed development available to individuals or families with annual incomes at or below 80 percent of the area median income.
On April 19, 2006, the Council held a Public Hearing to receive comments on the proposed amendment to the Land Use Management Ordinance. A copy of the April 19 memorandum is attached.
ISSUES RAISED
There were no issues raised during the April 19 Public Hearing regarding the proposed Land Use Management Ordinance Text Amendment.
RECOMMENDATIONS
Planning Board Recommendation: The Planning Board reviewed the proposal on March 21, 2006 and voted 8-0 to recommend approval of the text amendment proposal. Please refer to the attached Summary of Planning Board Action (Attachment 3).
Manager’s Recommendation: We recommend that the Council enact the attached Ordinance A to amend the Land Use Management Ordinance to modify the requirements for Housing Floor Area Restrictions for Major Subdivisions and Planned Development and to allow an applicant to provide a payment-in-kind in lieu of size-restricted dwelling units. Ordinance A would also provide a mechanism to determine the equivalent amount of the payment-in-kind.
ATTACHMENTS