MEMORANDUM

AGENDA #6

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Public Hearing: Development Ordinance Text Amendment Regarding Mixed Housing

DATE: March 20, 2000

INTRODUCTION

This Public Hearing has been scheduled for the Town Council to consider a proposed Development Ordinance text amendment. The proposal would require that a percentage of homes in new residential developments be below a particular size.

BACKGROUND

June, 1998 At a discussion of the Comprehensive Plan Revision, the Council asked Council Members Bateman and Brown to investigate the possibility of devising a new ordinance to require a mixture of housing types for new developments.

January 16, 1999 Council Members Bateman and Brown submitted a memorandum to the Council, with suggested goals and with examples from other communities. The memorandum was referred to the Town Manager for comment and discussion. The three suggested goals were:

1. Require a mixture of housing types and sizes and establish a ratio for such to accommodate low, moderate and higher income levels within new developments.

2. Develop a means to keep the low- and moderate-income level housing affordable for those income levels past initial homeownership.

3. Develop ways to encourage design diversity within proposed developments.

April 12, 1999 The Manager provided a report to the Town Council, offering comments on the ideas presented in January, 1999, and providing examples from other communities. The Council asked the Manager to come back with some concrete suggestions and proposals of ways to achieve the goals provided by Council members Bateman and Brown, with a suggested ordinance revision proposal to achieve the goals.

October 11, 1999 The Council referred the issue to the Town Manager, with direction that the Manager draft an amendment to the Development Ordinance. The proposal was to require a mix of dwelling unit size in new developments, to be modeled after a recently enacted ordinance in Carrboro.

January 10, 2000 The Town Council adopted a resolution calling a Public Hearing for tonight to consider a change to the Development Ordinance, which would require a mix of dwelling unit sizes in new residential developments. A copy of the January 10, 2000 Memorandum (resubmitted from November 22, 1999) is attached.

DISCUSSION

Ordinance A would amend the Development Ordinance, following the Carrboro model, to require the following for major new subdivisions:

· For a major subdivision proposal or a Planned Development-Housing (Special Use Permit) with 13-20 single-family and two-family residential lots, at least 15% of the dwelling units shall contain no more than 1,350 square feet of floor area and an additional 10% of the dwelling units shall contain no more than 1,100 square feet of floor area at the time that the units are initially conveyed.

· For a major subdivision proposal or a Planned Development-Housing (Special Use Permit) with 21 single-family and two-family residential lots or more, at least15% of the dwelling units shall contain no more than 1,100 square feet of floor area and an additional 10% of the dwelling units shall contain no more than 1,350 square feet of floor area at the time that the units are initially conveyed.

We note that this requirement would not necessarily result in the provision of housing that is affordable to families of low and moderate income.

We also note that the Council, if it enacts this kind of restriction, may not want to allow future additions or expansions to a size-limited dwelling. Ordinance A would allow expansions after one year, as Carrboro does. Ordinance B would not allow expansions at all.

Finally, we note that there has been little analysis regarding whether or not this kind of restriction would be likely to survive a legal challenge. The Council may want to ask the Town Attorney to do further research on that question prior to final Council consideration.

RECOMMENDATION

The Council has asked for a draft ordinance that would place restrictions on the size of a specified percentage of dwelling units in new subdivisions, modeled after a recently adopted Carrboro ordinance. That appears here as Ordinance A.

If the Council wishes to enact this kind of restriction on the size of dwellings, we would recommend adoption of Ordinance B. Ordinance B would permanently restrict the size of affected units. Ordinance A would allow expansion after one year of occupancy.

ATTACHMENTS

Summary of Planning Board Action (p. 8).
Copy of January 10, 2000 Memorandum to Council, with attachments (p. 9).

ORDINANCE A

(Expansion Allowed After One Year)

AN ORDINANCE AMENDING THE CHAPEL HILL DEVELOPMENT ORDINANCE REGARDING RESTRICTIONS ON THE SIZE OF NEW HOMES IN RESIDENTIAL SUBDIVISIONS AND PLANNED DEVELOPMENT-HOUSING PROPOSALS

WHEREAS, the Council of the Town of Chapel Hill has considered the proposed amendment to the Chapel Hill Development Ordinance to impose restrictions on the size of new dwelling units in new residential subdivisions, and finds that the amendments are appropriate due to changed or changing conditions in a particular area or in the jurisdiction generally and achieve the purposes of the Comprehensive Plan; and

WHEREAS, the Town Council seeks to expand opportunities for provision of moderately priced housing;

NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

Section 1. Article 13 of the Chapel Hill Development Ordinance is hereby amended by adding a new Subsection 13.11 to read as follows:

“13.11 Major Subdivision and Planned Development-Housing Floor Area Restrictions

Major Subdivisions and Planned Development-Housing proposals which create residential building lots shall restrict the floor area of single- and two-family dwelling units in the following manner:

· For a major subdivision or a Planned Development-Housing proposal with 13-20 single-family or two-family residential lots, at least 15% of the dwelling units shall contain no more than 1,350 square feet of floor area and an additional 10% of the dwelling units shall contain no more than 1,100 square feet of floor area at the time that the units are initially conveyed.

· For a major subdivision or a Planned Development-Housing proposal with 21 single-family or two-family residential lots or more, at least15% of the dwelling units shall contain no more than 1,100 square feet of floor area and an additional 10% of the dwelling units shall contain no more than 1,350 square feet of floor area at the time that the units are initially conveyed.

Each lot that is large enough for only a single-family dwelling unit or that is limited by restrictive covenants to development only with a single-family dwelling unit shall be deemed to house one single-family dwelling unit. Each lot that is large enough for a two-family dwelling unit or that is allowed by restrictive covenants to develop with a two-family dwelling shall be deemed to house two dwelling units. The minimum number of size-limited units shall then be determined by multiplying the maximum number of dwelling units permissible within the development proposal as determined herein by the percentage specified above (resulting fractions shall be dropped).

The subdivision preliminary and final plats and the Planned Development-Housing proposals minor subdivision plats shall indicate clearly each lot on which a size-limited unit must be constructed, and the builder, developer and purchaser shall be bound by the limitation.

No Zoning Compliance Permit or Building Permit shall be issued for the construction of any dwelling unit on any lot that has been designated as a lot on which a size-limited unit must be constructed unless the proposed dwelling conforms to the limitation of this section. Notwithstanding the foregoing, this section shall not prevent the purchaser of any size-limited unit, or any successor to such purchaser, from enlarging the dwelling unit at any time following one year after the issuance of the initial Certificate of Occupancy for the unit.

This section shall not apply to any major subdivision or Planned Development proposal that has been approved by the Town Council prior to the effective date of this ordinance."

Section 2. That all ordinances and portions of ordinances in conflict herewith are hereby repealed.

Section 3. That these amendments shall become effective upon adoption.

This the __ day of __________, 2000.

ORDINANCE B

(No Future Expansions)

AN ORDINANCE AMENDING THE CHAPEL HILL DEVELOPMENT ORDINANCE REGARDING RESTRICTIONS ON THE SIZE OF NEW HOMES IN RESIDENTIAL SUBDIVISIONS AND PLANNED DEVELOPMENT-HOUSING PROPOSALS

NOW, THEREFORE, BE IT ORDAINED by the Council of the Town of Chapel Hill as follows:

WHEREAS, the Town Council seeks to expand opportunities for provision of moderately-priced housing;

Section 1. Article 13 of the Chapel Hill Development Ordinance is hereby amended by adding a new Subsection 13.11 to read as follows:

“13.11 Major Subdivision and Planned Development-Housing Floor Area Restrictions

Major Subdivisions and Planned Development-Housing proposals which create residential building lots shall restrict the floor area of single- and two-family dwelling units in the following manner:

No Zoning Compliance Permit or Building Permit shall be issued for the construction of any dwelling unit on any lot that has been designated as a lot on which a size-limited unit must be constructed unless the proposed dwelling conforms to the limitation of this section, nor shall any Zoning Compliance Permit or Building Permit be issued authorizing the expansion of any such size-limited unit beyond the limits described above.

This section shall not apply to any major subdivision or Planned Development proposal that has been approved by the Town Council prior to the effective date of this ordinance."

Section 2. That all ordinances and portions of ordinances in conflict herewith are hereby repealed.

Section 3. That these amendments shall become effective upon adoption.

This the __ day of __________, 2000.