AGENDA DATE: 4/19/2023
TITLE:
Title
Proposed Affordable Dwelling Unit Ordinance
BODY
SUBJECT/PROPOSAL/REQUEST: Work session on a proposed Affordable Dwelling Unit Ordinance
ITEM TYPE: Regular Information Item
STAFF CONTACT(S): Richardson, Walker, Rosenberg, Herrick, Dimock, Pethia
PRESENTER (S): Stacy Pethia, Housing Policy Manager
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: On July 7, 2021, the Board of Supervisors approved Housing Albemarle, the County’s new housing policy, but delayed implementation of the following elements until a package of developer incentives to support the construction of affordable housing was approved and implemented:
1) the increased percentage of affordable housing units in residential developments subject to rezonings or special use permits;
2) the increase in compliance periods for affordable housing units; and
3) the new price levels for both affordable for-sale and affordable for-rent units.
Between June and October 2021, staff held four meetings with members of the developer community to discuss the components of an incentives package to support the provision of Affordable Dwelling Units (ADU) and developers’ efforts to meet the County’s affordable housing goals.
On February 16, 2022, the Board held a work session to discuss a proposal for an Affordable Housing Overlay. Based on feedback received during the work session, staff determined that an alternative approach to developer incentives was more appropriate.
On May 4, 2022, the Board held a second work session to discuss affordable housing incentive programs. The focus of this work session was on a possible ADU Program ordinance, which could include developer incentives. As a result of this work session, the Board directed staff to submit a Resolution of Intent (ROI) to consider amending the Albemarle County Zoning Ordinance to include an ADU Program. The Board subsequently adopted an ROI on June 15, 2022 (Attachment A).
STRATEGIC PLAN: Quality Government Operations - Ensure County government’s capacity to provide high quality service that achieves community priorities.
DISCUSSION: Based on feedback received during the May 2022 work session, staff has drafted an ADU Program ordinance (Attachment B) and associated administrative guidelines (Attachment C). The proposed ordinance includes the following components:
1. A requirement that a minimum of 20% of the total units in a development be provided as affordable units;
2. A cash-in-lieu payment amount per unit for projects unable to accommodate affordable housing units
onsite;
3. Restrictions on the pricing of ADUs for periods of 40 years (for-sale ADUs) and 30 years (rental ADUs);
4. Opportunities for nonprofit affordable housing providers to purchase for-sale ADUs not bought by income
qualified households;
5. Annual reporting requirements; and
6. The creation and maintenance of a registration database for income-qualified households eligible for and
interested in affordable housing opportunities.
BUDGET IMPACT: Adoption and implementation of an ADU Program ordinance may impact the County’s budget if financial or other incentives are included in the ordinance. The amount of the impact would depend on the number of developers seeking incentives and the number of affordable units for which they are seeking support.
RECOMMENDATION:
Recommendation
Staff recommends that the Board provide feedback and direction on the proposed ADU Program draft ordinance. Any feedback received during this discussion will guide further development of the program.
ATTACHMENTS:
A - Resolution of Intent
B - Draft Affordable Dwelling Unit Program Ordinance
C - Draft Affordable Dwelling Unit Program Administrative Guidelines