Residences at Chapel Hill North

Staff Preliminary Recommendation – Affordable Housing

February 12, 2007

• Provision of Affordable Housing:  That the developer shall provide Affordable Housing that includes the following items:
  1. Required Affordable Units: Provision of no less than 15% (19) of the proposed dwelling units as affordable dwelling units.
  2. Eligibility of Renters or Owners: Eligible low and moderate income households must have annual income between 60 and 80 percent of the area median 3-person family income for the Durham Metropolitan Statistical Area (MSA). Section 8 vouchers may be accepted for these units. If units are converted to condominiums, for ownership, eligible low and moderate income households must have annual income no greater than 80 percent of the area median 3-person family income for the Durham Metropolitan Statistical Area (MSA).
  3. Rental Rates of Affordable Units: Rental rates shall not exceed current Section 8 Fair Market rents (including utilities) as published by the U.S. Department of Housing and Urban Development, according to the number of bedrooms in each unit.
  4. Marketing of Affordable Units: That the owner or management company shall enter into a “good faith” marketing agreement, with one or more local non-profit affordable housing organizations, to ensure that the affordable units intended for rent are rented to eligible low-income renters. As a component of the agreement, the owner or management company shall work with local non-profit affordable housing organizations to advertise affordable units and recruit eligible renters. That the owner and management company may rent to non-qualified renters if after 90 days of advertising to qualified households, there are no qualified renters available, if the participating local nonprofit organization agrees that an appropriate effort to market the affordable unit to qualified renters.
  5. Units may be rented to non-qualified renters for up to one year at which point the owner and management company may rent to non-qualified renters again if after 60 days of advertising to qualified households, there are no qualified renters available, if the participating local nonprofit organization agrees that an appropriate effort to market the affordable unit to qualified renters.
  6. Size and Distribution of Affordable Units: The units shall be located throughout the development, dispersed among the market units, and shall be 65% 1-bedroom dwelling units and 35% 2-bedroom dwelling units.
  7. Affordable Unit Deed Restrictions: That the applicant shall record deed restrictions to ensure that the affordable units remain affordable in perpetuity to low income households, whether rental or for sale units, including a mechanism to minimize the impact of monthly fees (such as a “transfer fee” to supplement condominium fees), said restrictions to be approved by the Town Manager prior to the issuance of the first Certificate of Occupancy.
  8. Construction Timeline for Affordable Units: That Certificates of Occupancy shall not be issued until a proportionate percentage of affordable units (15%) are available for occupancy, compared to the number of market units constructed.
  9. Affordable Housing Annual Report: That the applicant shall provide an annual report to the Town including detailed historical data in tabular format that includes, for example, units rented, unit rates, incomes of renters, units not rented to qualified renters, date of lease expiration, and other data the Town may determine necessary.
  10. Minor Changes to Affordable Housing Program: Minor changes to the affordable housing program proposed by the property owner, as conditioned in the approved Special Use Permit, in consultation with one or more local affordable housing advocacy organizations, of the Town Manager’s choosing, and may be approved by the Town Manager if consistent with the Town’s adopted Affordable Housing goals and guidelines.