Residential in Commercial draft language — original pdf

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TITLE 25. - LAND DEVELOPMENT. CHAPTER 25-1. - GENERAL REQUIREMENTS AND PROCEDURES. ARTICLE 15. HOUSING. RESIDENTIAL IN COMMERCIAL DISTRICTS INCENTIVE PROGRAM WORKING DRAFT – SUBJECT TO CHANGE 10/14/2022 ARTICLE 15. HOUSING. Division 5. Residential Uses in Commercial Districts Incentive Program. § 25-1-751 PURPOSE, APPLICABILITY, SHORT TITLE, AUTHORITY, AND CONFLICT. (A) The purpose of this division is to establish a voluntary incentive program that allows residential uses in commercial districts. (B) This division applies within the zoning jurisdiction. (C) This division may be cited as "Residential in Commercial Development (D) The director may adopt, implement, and enforce: (1) program guidelines; and (2) administrative rules in accordance with Chapter 1-2 (Administrative Program". Rules). (E) A provision of this title that is specifically applicable to a residential- commercial development governs over a conflicting provision of this title. § 25-1-752 DEFINITIONS. In this division, (1) CREATIVE SPACES means XXXX. (2) CREATIVE SPACE OPERATOR means a person who owns or manages a (3) MARKET RATE UNITS means a rental or ownership dwelling unit that is creative space. not an affordable unit. Austin, Texas, Land Development Code (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 1 of 8 TITLE 25. - LAND DEVELOPMENT. CHAPTER 25-1. - GENERAL REQUIREMENTS AND PROCEDURES. ARTICLE 15. HOUSING. RESIDENTIAL IN COMMERCIAL DISTRICTS INCENTIVE PROGRAM WORKING DRAFT – SUBJECT TO CHANGE 10/14/2022 (4) MFI means median family income as defined in Section 25-1-701 (Definitions) for the Austin-Round Rock metropolitan statistical area. § 25-1-753 ELIGIBILITY. (A) A proposed development is eligible for this program if the development: (1) meets the requirements in this division; and (2) is new construction; or (3) will redevelop a site without existing creative spaces or multi-family structures; or (4) complies with the requirements in Subsection (C). (B) A creative space is existing if the space has operated for at least 10 years. (C) Redevelopment of a Site with Existing Spaces and Structures. (1) A proposed development that will require the applicant to redevelop existing creative spaces is eligible for this program if: (a) the proposed development: (i) meets the standards imposed in this subsection; (ii) will replace all existing creative spaces that were operating the previous year with comparable-sized creative spaces; and (b) the applicant provides creative space operators with: (i) (ii) notice and information about the proposed development on a form approved by the director; relocation benefits that are consistent with the Federal Uniform Relocation Assistance and Real Acquisition Policies Act of 1970, 42 U.S.C.A. 4601, et seq.; and (iii) an option to lease a creative space of comparable size and affordability following the completion of redevelopment. (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 2 of 8 TITLE 25. - LAND DEVELOPMENT. CHAPTER 25-1. - GENERAL REQUIREMENTS AND PROCEDURES. ARTICLE 15. HOUSING. RESIDENTIAL IN COMMERCIAL DISTRICTS INCENTIVE PROGRAM WORKING DRAFT – SUBJECT TO CHANGE 10/14/2022 (2) A proposed development that will require the applicant to redevelop or rebuild an existing multi-family structure is eligible for this program if: (a) the existing multi-family structure requires extensive repairs and for which rehabilitation costs will exceed 50 percent of the market value, as determined by the building official; (b) the proposed development will replace all existing units that were affordable to a household earning 80 percent MFI or below in the previous year and have at least as many bedrooms; and (c) the applicant provides current tenants with: (i) (ii) notice and information about the proposed development on a form approved by the director; and relocation benefits that are consistent with Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C.A. 4601, et seq.; and (iii) the option to lease a unit of comparable affordability and size following completion of redevelopment. § 25-1-754 AFFORDABILITY REQUIREMENTS. (A) For a development with rental dwelling units, at least 10 percent of the rental dwelling units must serve households whose incomes are 60 percent MFI or below. (B) For a development with owner-occupied dwelling units, at least 10 percent of the owner-occupied dwelling units must serve households whose incomes are 80 percent MFI or below. (C) If the number of units required in this section includes less than a whole unit, the unit number is rounded up to the nearest whole unit. (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 3 of 8 TITLE 25. - LAND DEVELOPMENT. CHAPTER 25-1. - GENERAL REQUIREMENTS AND PROCEDURES. ARTICLE 15. HOUSING. RESIDENTIAL IN COMMERCIAL DISTRICTS INCENTIVE PROGRAM WORKING DRAFT – SUBJECT TO CHANGE 10/14/2022 (D) The minimum affordability period for rental dwelling units is 40 years following the last certificate of occupancy required for the development. (E) The minimum affordability period for owner-occupied dwelling units is 99 years following the issuance of a certificate of occupancy for the owner- occupied dwelling unit. (F) In a multi-phased development, the director may begin the minimum affordability period upon the issuance of the last certificate of occupancy for each phase (G) The applicant for a proposed rental development: (1) shall incorporate lease provisions that are consistent with: (a) (b) (c) the U.S. Department of Housing and Urban Development (HUD) Section 8 Tenant-Based Assistance Housing Choice Voucher (HCV) Program related to the termination of tenancy by owner; any lease addendum required as a condition to receive city or Austin Housing Finance Corporation (AHFC) funds; and a tenant’s right to organize that are consistent with 24 C.F.R. 245.100, the lease addendum required as a condition to receive City of Austin Housing Finance Corporation funds, or City Code requirement; and24 C.F.R. § 245.100 related to a tenant's right to organize; and (2) may not discriminate on the basis of an individual 's source of income as defined in Section 5-1-13 (Definitions). (H) Simultaneous Availability of Affordable Units. (1) In a single-phase housing development, affordable units must be available for occupancy concurrently with the market-rate units. (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 4 of 8 TITLE 25. - LAND DEVELOPMENT. CHAPTER 25-1. - GENERAL REQUIREMENTS AND PROCEDURES. ARTICLE 15. HOUSING. RESIDENTIAL IN COMMERCIAL DISTRICTS INCENTIVE PROGRAM WORKING DRAFT – SUBJECT TO CHANGE 10/14/2022 (2) For a multi-phase housing development, an applicant must submit a development phasing plan that demonstrates how the market rate units and the affordable units will be made available concurrently. This plan must be included as an attachment to the agreement described in Section (X). § 25-1-755 CERTIFICATION. (A) If the director certifies that a proposed development meets the requirements of this division, the accountable official is authorized to process a development application consistent with provisions applicable to a commercial-residential development. (B) Before the director may certify that a proposed development meets the requirements of this division, the applicant shall execute: (1) an agreement to preserve the minimum affordability period and related requirements imposed by this division; and (2) a document for recording in the real property records that provides notice of or preserves the minimum affordability requirements imposed by this division. (C) The form of the documents described in Subsection (B) must be approved by the city attorney. § 25-1-756 POST-CONSTRUCTION REQUIREMENTS AND PENALTY. (A) For a development with rental dwelling units, the property owner or the property owner's agent shall provide the director with information that allows the director to verify compliance with the affordability requirements. The information shall be provided on an annual basis and on a form approved by the director. (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 5 of 8 TITLE 25. - LAND DEVELOPMENT. CHAPTER 25-1. - GENERAL REQUIREMENTS AND PROCEDURES. ARTICLE 15. HOUSING. RESIDENTIAL IN COMMERCIAL DISTRICTS INCENTIVE PROGRAM WORKING DRAFT – SUBJECT TO CHANGE 10/14/2022 (B) If, for any reason, the director is unable to confirm that the affordability requirements were met during any 12-month period, the preceding 12 months may not be used to satisfy the minimum affordability requirements in Section 25-1-XXXX (Affordability Requirements). (C) A person commits an offense if the person fails to comply with the requirement in Subsection (A). A culpable mental state is not required, and need not be proved. A person commits a separate offense for each day the person fails to provide the documentation. Each offense is punishable by a fine not to exceed $500. Subchapter C, Article 2, Division 2. Requirements for All Districts. § 25-2-519 COMMERCIAL-RESIDENTIAL DEVELOPMENT. (A) (B) In this section, a commercial-residential development is a development certified under Section XXXXX (Certification) and participating in the Residential in Commercial Development Program. Except as provided in Subsection (C), a commercial-residential development is a permitted use under Section 25-2-491 (Permitted, Conditional, and Prohibited Uses) in the following commercial base districts: (1) Commercial Liquor Sales (CS-1); (2) General Commercial Services (CS); (3) Community Commercial (GR); (4) Neighborhood Commercial (LR); (5) General Office (GO); and (6) Limited Office (LO). (C) A commercial-residential development is prohibited when the property is: (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 6 of 8  (2) subject to a regulating plan that does not allow residential uses on (1) zoned “V”; or the property. (D) Standards. (1) Multifamily residential use, a townhouse residential use, a condominium residential use, a group residential use. (a) In a neighborhood office (NO) base district, the minimum site area for each dwelling unit is: 3,600 square feet, for an efficiency dwelling unit; 4,000 square feet, for a one bedroom dwelling unit; and 4,400 square feet, for a dwelling unit with two or more bedrooms. (b) In a limited office (LO) or neighborhood commercial (LR) base district, the minimum site area for each dwelling unit is: 1,600 square feet, for an efficiency dwelling unit; 2,000 square feet, for a one bedroom dwelling unit; and 2,400 square feet, for a dwelling unit with two or more bedrooms. (c) In a general office (GO), community commercial (GR), general commercial services (CS), or commercial services - liquor sales (CS-1) base district, the minimum site area for each dwelling unit is: 800 square feet, for an efficiency dwelling unit; 1,000 square feet, for a one bedroom dwelling unit; and 1,200 square feet, for a dwelling unit with two or more bedrooms. (i) (ii) (iii) (i) (ii) (iii) (i) (ii) (iii) (2) Except as provided in (D)(3), a commercial-residential development must comply with the height restrictions applicable to the base zoning district. (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 7 of 8  A commercial-residential development that includes commercial uses on the ground floor may exceed the height restrictions applicable to the base zoning district by five feet provided the ground floor uses are not part of a live/work unit. (E) Other Density Bonus Programs. If a commercial-residential development is also eligible to utilize a separate density bonus program that grants density bonuses for the provision of on-site affordable dwelling units or for the payment of a fee-in-lieu for affordable housing, then the commercial-residential development may comply with the least restrictive site development requirements if all affordable dwelling units are provided on-site. The total number of affordable dwelling units provided on-site must equal or exceed the number of on-site affordable dwelling units required by the Residential in Commercial Development Program and the other density bonus program (3) (1) (2) (Supp. No. 158) Created: 2022-09-28 16:13:09 [EST] Page 8 of 8