A RESOLUTION AMENDING THE TOWN’S 2000 COMPREHENSIVE PLAN TO BETTER DEFINE THE PAYMENT-IN-LIEU OPTION FOR PROVIDING AFFORDABLE HOUSING (2005-10-10/R-10)

WHEREAS, The Town of Chapel Hill Comprehensive Plan, adopted by the Town Council on May 8, 2000, provides specific goals, objectives, and policies regarding the provision of affordable housing; and

WHEREAS, Section 7-A of the Comprehensive Plan does not provide a description of the payment-in-lieu option for providing affordable housing; and

WHEREAS, the Town Council desires a more specific description of the payment-in-lieu option for providing affordable housing in the Comprehensive Plan;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that Section 7A-2, Paragraph 2, of the Comprehensive Plan be amended as follows, (new 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).”

This is the 10^th day of October, 2005.