A RESOLUTION MODIFYING THE COUNCIL’S EXPECTATIONS FOR AFFORDABLE HOUSING AS A COMPONENT OF NEW DEVELOPMENT PROPOSALS WITH A RESIDENTIAL COMPONENT (2009-01-26/R-7)

WHEREAS, Chapel Hill’s Comprehensive Plan contains the following language: “The Town shall encourage developers of residential developers of 5 or more units to (a) provide 15% of their units at prices affordable to low and moderate income households, (b) contribute in-lieu-fees, (c) propose alternative measures so that the equivalent of 15% of their units will be available and affordable and affordable to low and moderate income households;” and

WHEREAS, development proposals regularly come before the Town Council seeking approval, but without an affordable housing component; and

WHEREAS, on March 6, 2000, the Chapel Hill Town Council adopted a resolution stating that it is the expectation of the Council that applicants seeking approval of rezoning applications containing a residential component will incorporate a “15% affordable” feature into their plans, and that mechanisms will be proposed to assure ongoing affordability of these so-designated dwelling units; and 

WHEREAS, on September 8, 2008, Orange Community Housing and Land Trust petitioned the Council requesting a modification to the Town’s Affordable Housing Policy. 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council revises the Town’s Affordable Housing Policy to read as follows:

WHEREAS, Chapel Hill’s Comprehensive Plan contains the following language: “The Town shall encourage developers of residential developments of 5 or more units to (a) provide 15 percent of their units at prices affordable to low and moderate income households, (b) contribute in-lieu-fees, or (c) propose alternative measures so that the equivalent of 15 percent of their units will be available and affordable to low and moderate income households;” and

WHEREAS, development proposals regularly come before the Town Council seeking approval, but without an affordable housing component;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that it is the expectation of the Council that applicants seeking approval of rezoning applications containing a residential component will incorporate a “15% affordable” feature into their plans, and that mechanisms will be proposed to assure ongoing affordability of these so-designated dwelling units. At its discretion, the Council may accept a payment-in-lieu of all or part of the affordable housing obligation. The payment amount shall be established by Resolution.

BE IT FURTHER RESOLVED that all projects with an affordable housing component must have an Affordable Housing Plan incorporated into an Affordable Housing Performance Agreement to be signed by the applicant, the Town Manager (or designee) and the entity responsible for administration of affordable housing units. 

This the 26^th day of January, 2009.