AGENDA CAPTION:
Title
Consider approval of Resolution 2018-118R, approving amendments to the Affordable/Workforce Housing Policy relating to the definition of workforce housing and the criteria for the Low Income Housing Tax Credit Policy; and declaring an effective date.
Body
Meeting date: June 19, 2018
Department: Planning and Development Services
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: The City Council approved an amendment to the policy for Low Income Housing Tax Credit (LIHTC) projects on March 7, 2017
City Council Strategic Initiative: [Please select from the dropdown menu below]
Workforce Housing
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☒ Land Use - Direct Growth, Compatible with Surrounding Uses
☒ Neighborhoods & Housing - Diversified housing options to serve citizens with varying needs and interests
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Vision San Marcos - A River Runs Through Us
Background Information:
Workforce Housing has been identified as a City Council strategic initiative and the workforce housing subcommittee has been meeting regularly to advance this initiative. Two initial recommendations from these meetings include:
• Redefining the definition of workforce housing to coincide with the Area Median Income,
• Amending the policy for Low Income Housing Tax Credit Projects in order to provide more criteria and a robust application and consideration process for these projects.
Definition of Workforce Housing
The purpose of redefining the definition of workforce housing to coincide with the Area Median Income is to better target income brackets between 80% and 140% of Area Median Income. Federal funding through the department of Housing and Urban Development is available for households earning up to 80% of median income and current programs are targeted to assist households in this range. By redefining the definition of workforce housing to coincide with Area Median Income the City is able to broaden its efforts to reach moderate income households preparing for home ownership.
Low Income Housing Tax Credit Policy
The City amended the Low Income Housing Tax Credit Policy in March 2017 to suspend applications for all non age-restricted large multi-family projects. Since that time the City has worked to improve development regulations and standards and to better define the housing needs of the City. The purpose of this amendment is to establish criteria and a more rigorous application process for Low Income Tax Projects to ensure that housing needs in the City are being met and that potential projects are adding value to the community.
The proposed amendment includes a requirement to meet at least 5 of the following 8 criteria, including criteria #1, to receive a positive staff recommendation for a resolution of support.
1. No exemption from local taxes is provided.
2. The proposed units address a housing need identified in this housing policy or in the City’s current consolidated plan for HUD programs.
3. The project is located within a high or medium intensity zone on the preferred scenario map.
4. The project is not proposed to develop under a legacy district on the City’s current zoning map.
5. The project is located within half a mile (.5) walking distance from services such as grocery, medical facilities, and schools.
6. The project is located within one quarter mile (.25) walking distance of a proposed or existing bus stop on a current or planned transit route.
7. The project is renovating or redeveloping an existing multifamily complex or under-performing development.
8. The project is mixed income and provides at least 20% market rate units.
Council Committee, Board/Commission Action:
The Workforce Housing committee recommended an amendment to the affordable housing policy to define workforce housing and to amend the policy for Low Income Housing Tax Credit Projects.
Alternatives:
N/A
Recommendation:
Staff recommends adoption of the amended policy as presented.