AGENDA #5e

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	J.B. Culpepper, Planning Director Loryn Clark, Housing and Neighborhood Services Coordinator
SUBJECT:	Status Report on the Development of an Inclusionary Zoning Ordinance
DATE:	September 10, 2007

PURPOSE

The purpose of this memorandum is to update the Council on the development of an Inclusionary Zoning Ordinance.

BACKGROUND

On November 20, 2006, the Inclusionary Zoning Task Force presented a report including a draft ordinance to the Council.  Important elements of the report 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% of the area median income. 

On January 22, 2007, the Council adopted a resolution to establish a process for developing an Inclusionary Zoning Ordinance.  At that time, the Council also adopted an ordinance to allocate up to $25,000 to hire a consultant to prepare a draft Inclusionary Zoning ordinance.

DISCUSSION

As authorized by the Council, the Town entered into a Performance Agreement with White and Smith, LLC to develop an Inclusionary Zoning Ordinance consistent with the elements proposed by the Inclusionary Zoning Task Force. 

We continue to work with the members of the Inclusionary Zoning Task Force and the consultant to develop a draft ordinance.  As we develop the ordinance, we recognize that there are key issues that must be discussed in detail before proceeding to a public hearing. We also believe that we would benefit from additional review and discussion by the Inclusionary Zoning Task Force. 

NEXT STEPS

We are working with the consultant to develop a draft ordinance.  Once revised, the draft will be reviewed by the members of the Inclusionary Zoning Task Force.  When the Task Force recommends moving forward with the draft ordinance, we would return to the Council with a proposed schedule for review by the Planning Board and a recommended date for a Public Hearing.