AGENDA #8

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Comprehensive Plan Amendment Regarding the Calculation of a Payment-in-Lieu in the Affordable Housing Strategy

DATE:                        October 10, 2005

PURPOSE

Adoption of the attached resolution would amend the Comprehensive Plan to better define the payment-in-lieu option for providing affordable housing. 

BACKGROUND

On September 26, 2005, the Council held a public hearing to receive comments on a proposed amendment to the Comprehensive Plan.  The Council did not receive any citizen comments at the public hearing.

DISCUSSION

The Comprehensive Plan states “as a general policy, the Town should encourage developers of residential developments of five or more units to 1) provide 15 percent of their units at prices affordable to low and moderate income households, 2) contribute in-lieu fees, or 3) propose alternative methods so that the equivalent of 15 percent of the units will be available and affordable to low and moderate income households.” (Section 7A-2) No explanation is provided about how in-lieu contributions are to be calculated. 

Proposed Change

The Land Use Management Ordinance (Section 4.5.2) states that one of the four findings the Council must make to approve a Special Use Permit is that the use or development conforms to the general plans for the physical development of the Town as embodied in the Comprehensive Plan.

We recommend the following new language be added to the Comprehensive Plan language (shown by underscoring):

 “As a general policy, the Town should encourage developers of residential development of five or more units to 1) provide at least 15 percent of their units at prices affordable to low and moderate income households; or 2) contribute in-lieu fees where the amount of the payment shall be calculated by multiplying the number of affordable housing units to be provided as calculated in option 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; or 3) propose alternative methods so that the equivalent of 15 percent of the units will be available and affordable to low and moderate income households.  At the same time the Town should continue to seek state enabling legislation for inclusionary zoning (see Strategy 7A-3).”

RECOMMENDATIONS

Planning Board Recommendation:  On September 20, 2005, the Planning Board voted 7-0 to recommend that the Council adopt the attached Resolution.

Manager’s Recommendation:  We recommend that the Council adopt the attached Resolution to amend the Comprehensive Plan to better define the payment-in-lieu option for providing affordable housing. 

ATTACHMENT

1. September 26, 2005 Memorandum to the Mayor and Town Council (p. 4).