Item #2 - S.M.A.R.T. Housing Amendments Phase 2 presentation — original pdf

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Codes and Ordinances Joint Committee S.M.A.R.T. Housing Amendments Phase 2 Brendan Kennedy, Program Manager Housing Department S.M.A.R.T. Housing S.M.A.R.T. Housing Incentives ▪ Waiver of certain development fees ▪ DSD review times are shortened; S.M.A.R.T. Housing development permits are prioritized for case management ▪ Gatekeeper requirement for new construction seeking most affordable housing approvals 3 S.M.A.R.T. Housing Requirements ▪ At least 10% of units priced at or below 80% MFI for sale or lease (= 25% fee waiver) – Scales up to 40% of units affordable = 100% fee waiver ▪ Requires AEGB 1-Star certification and additional accessibility/visitability standards ▪ Requires transit proximity, with options for waiver set in Code 4 Initiation – Resolution No. 20230720-129 ▪ Phase 1: Amend Section 25-1-704 so that fees eligible for a waiver under the S.M.A.R.T. Housing program would be identified as part of the annual fee ordinance ▪ Phase 2: Amend Title 25 as needed to improve the operation and functionality of the S.M.A.R.T. Housing program. 5 Proposed Amendments Amendment #1 – Land Restriction Process ▪ Amend § 25-1-705 (D) to require affordability restrictions to be executed prior to certification – Establishes consistency between programs – Ensures applicants are aware of and bound to requirements at an earlier stage 7 Amendment #2 – CLT exemption ▪ Amend § 25-1-704 (B)(2)(a-b) to remove exemption for land dedicated to City-approved CLT. – Presents significant administrative burdens and frequently infeasible to implement – Underutilized by dedicated CLT entities 8 Proposed Amendment #3 – Rental MFI ▪ Amend § 25-1-703 (C)(2)(a) to lower affordable rental MFI from 80% MFI to an average 60% MFI – Establishes consistency between programs by requiring 60% MFI rental – Reduces confusion on affordability from permit reviewers – Meets Department’s programmatic goals to target 60% MFI and below affordability – Income averaging still accommodates "workforce housing" when deeper affordability levels are provided 9 Amendment #4 – Remove Outdated Provisions ▪ Remove in their entirety: – § 25-1-702 (B), a requirement to notify TPW of all S.M.A.R.T. developments – § 25-1-703 (D),§ 25-1-704 (B)(2)(c), and § 25-1-705 (A)(4), an automatic 100% fee waiver for Vertical Mixed Use developments – This provision is inconsistent with move to 60% MFI for rental – § 25-1-705 (A)(1), which has been superseded by more recent University Neighborhood Overlay ordinances 10 Amendment #4– Remove Outdated Provisions cont’d ▪ Remove in their entirety: – § 25-1-703 (C)(2)(b) 25-1-704 (B)(2)(d), and § 25-1-705 (A)(3), establishing different affordability requirements for properties located in DMU or CBD zones – This provision is inconsistent with move to 60% MFI for rental – Provision may be reevaluated for alignment with DDBP in future phases 11 Moving Forward – Potential Future Amendments Potential "Phase 3" – Comprehensive updates ▪ Stakeholders have expressed interest in a comprehensive evaluation and update to the S.M.A.R.T. Housing program ▪ Comprehensive updates would require a level of engagement, staff time and resources beyond the scope of this resolution ▪ Staff memo to Mayor and Council outlines limitation of current amendments 13 Potential "Phase 3" – Comprehensive updates cont’d ▪ Potential topics to explore in Phase 3: – Evaluate fee waiver impacts on general fund – Review green building, accessibility, and visitability requirements for updates – Consider expanding S.M.A.R.T. to new typologies and aligning with recent Code amendments – Consider adjusting fee waivers for mixed-use developments 14 Thank You Brendan Kennedy, Program Manager Brendan.Kennedy@austintexas.gov