B-13 VMU Amendments Draft Ordinance.pdf — original pdf

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 CITY CODE CHAPTER 25-2, SUBCHAPTER E RELATING TO VERTICAL MIXED USE BUILDINGS. PART 1. Section 4.3.3.E. of Chapter 25-2, Subchapter E is amended to read as follows: E. Height, Dimensional and Parking Requirements. 1. VMU building[s] height[are subject to the height restrictions as provided in other sections of this Code]. a. b. A VMU1 building is subject to the height restrictions as provided in other sections of this Code. A VMU2 building may exceed the maximum building height in the base zoning district by a maximum of 30 feet, subject to the compatibility standards of Section 4.3.3.D. 2. Except as provided in Section 4.3.5., a VMU building that meets the exemption and bonus requirements in subsection F below is not subject to certain dimensional standards applicable in the base zoning district. These standards include the following: a. Minimum site area requirements (if applicable); b. Maximum floor area ratio; c. Maximum building coverage; d. Minimum street side yard setback and interior yard setback; and e. Minimum front yard setback; provided, however, that if the right-of- way is less than 60 feet in width, the minimum front yard setback for buildings three or more stories in height shall be 30 feet from the centerline of the street to ensure adequate Fire Department access. For all uses in a VMU building, the minimum off-street parking requirement shall be 60 percent of that prescribed by Appendix A (Tables of Off-Street Parking and Loading Requirements). This reduction may not be used in combination with any other parking reduction. Only the parking requirements for commercial uses are subject to modification through the opt-in/opt-out process in Section 4.3.5. VMU building includes VMU1 building and VMU2 building except as otherwise defined. 3/17/2022 2:04 PM Page 1 of 7 COA Law Department 3. 4. 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 PART 2. Section 4.3.3.F. of Chapter 25-2, Subchapter E is amended to read as follows: F. [Affordability Requirements] Exemption and Bonus Requirements. To be eligible for the dimensional or parking standards exemptions, or building height bonus if applicable, in Subsection E of this section, the residential units in a VMU building shall meet the following [affordability] requirements, which shall run with the land. This ordinance does not amend or repeal graphics or pictures that are used to illustrate various code requirements in the published version of Chapter 25-2, Subchapter E (Design Standards and Mixed Use). Affordability Requirements for Owner-Occupied Units. 1. a. [Five percent of the residential units in the VMU building shall be reserved as affordable, for not less than 99 years from the date a certificate of occupancy is issued, for ownership and occupancy by households earning no more than 80 percent of the current Annual Median Family Income for the City of Austin Metropolitan Statistical Area as determined by the Director of Neighborhood Housing and Community Development Department.] A building qualifies as a VMU1 building when a minimum of ten percent of the residential units within the building are reserved as affordable, for at least 99 years from the date of initial sale, for ownership and occupancy by households earning 80 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Medium Family Income as determined by the Director of the Housing and Planning Department. [In addition, five percent of the residential units in the VMU building shall be reserved, for not less than 99 years from the date a certificate of occupancy is issued, for ownership and occupancy by households earning no more than 100 percent of the Annual Median Family Income.] A building qualifies as a VMU2 building when a minimum of 12 percent of the residential units within the building are reserved as affordable, for at least 99 years from the date of initial sale, for ownership and occupancy by households earning 80 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Medium Family Income as determined by the Director of the Housing and Planning Department. b. c. An applicant for a proposed owner-occupied housing development may elect to meet the affordability requirement without providing income-restricted units onsite by paying a fee in-lieu to the Housing 3/17/2022 2:04 PM Page 2 of 7 COA Law Department 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 Trust Fund. At a minimum the fee-n-lieu shall be equivalent to the required percentage of the total residential units, including the mix of bedrooms required in Section 4.3.5.c., at the rate set in the fee schedule at the time of formal site plan submission. [c]d. The city in its sole discretion may elect to subsidize [an] additional [ten percent of the] for-sale residential units in the building, at an affordability level consistent with criteria and procedures established by the Director of the Housing and Planning Department. 2. Affordability Requirements for Rental Units. a. b. [Ten percent of the residential units in the VMU building shall be reserved as affordable, for a minimum of 40 years following the issuance of the certificate of occupancy, for rental by households earning no more than 80 percent of the Annual Median Family Income.] A building qualifies as a VMU1 building when a minimum of ten percent of the residential units within the building are reserved as affordable, for at least 40 years from the date of issuance of the certificate of occupancy, for lease and occupancy by households earning 60 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Medium Family Income as determined by the Director of the Housing and Planning Department. A building qualifies as a VMU2 building: (i) When a minimum of 12 percent of the residential units within the building are reserved as affordable, for at least 40 years from the date of issuance of the certificate of occupancy, for lease and occupancy by households earning 60 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Medium Family Income as determined by the Director of the Housing and Planning Department; or (ii) When a minimum of ten percent of the residential units within a VMU building are reserved as affordable, for at least 40 years from the date of issuance of the certificate of occupancy, for lease and occupancy by households earning 50 percent or less of the current Austin-Round Rock Metropolitan Statistical Area Medium Family Income as determined by the Director of the Housing and Planning Department. 3/17/2022 2:04 PM Page 3 of 7 COA Law Department 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 [b]c. As part of the one-time opt-in/opt-out process described in Section 4.3.5., an applicable neighborhood association or neighborhood planning team may request that the affordable rental units be available for renters earning a lower percentage of the annual median family income, to as low as 60 percent of the median family income. VMU projects that file zoning or site plan applications after the effective date of the first interim VMU ordinance and prior to September 1, 2006, will not be subject to this neighborhood affordability customization; and instead shall set aside affordable rental units as required by subsection 2.a. above or provide for affordable units as otherwise agreed to by an applicable neighborhood prior to September 1, 2006, provided that VMU projects are allowed on the applicable site following the completion of the opt-in/opt-out process. [c]d. The city may elect to subsidize [an] additional [ten percent of the] residential units in the building for rental purposes for residents at any level of affordability pursuant to criteria and procedures established by the Director of the Housing and Planning Department. Affordability Definition. For purposes of this subsection, a unit is affordable for purchase or rental if the household is required to spend no more than 30 percent of its gross monthly income on utilities and mortgage or rental payments for the unit as determined by the City's Neighborhood Housing and Community Development Department, based on the current Annual Median Family Income for the Austin Metropolitan Statistical Area. For purposes of this subsection, a unit is affordable for purchase when: (i) The unit is sold to an income-eligible household for an amount not to exceed the corresponding sales prices published annually by the Director of the Housing and Planning Department; and (ii) When determining the maximum affordable sales price, the Director of Housing and Planning Department may include an assumption that a homeowner will be required to pay an ownership association fee. b. For purposes of this subsection, a unit is affordable when the unit is leased to an income-eligible household for an amount not to exceed 3. a. 3/17/2022 2:04 PM Page 4 of 7 COA Law Department 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 the corresponding rental prices published annually by the Director of the Housing and Planning Department. Certification. 4. a. b. c. d. e. f. g. In this section, director means the director of the Housing and Planning Department. The director is responsible for certifying whether a proposed development meets the exemption and bonus requirements. The applicant shall submit an application to the director demonstrating the proposed development meets the exemption and bonus requirements. Before the director may certify the proposed development, the applicant shall execute: (i) (ii) an agreement to preserve the minimum exemption and bonus requirements for the VMU building; and a document for recording in the real property records providing notice of or preserves the exemption and bonus requirements for the VMU building. The form of the document described in Section 4.3.4.d. must be approved by the city attorney. If the director certifies a proposed development under this section, the accountable official is authorized to process a development application for a VMU building. The applicant for a housing development shall pay all fees, provide documentation, and fulfill any pre-occupancy requirements prior to the issuance of a certificate of occupancy for the VMU building. 5. General Provisions. a. In this section, the director means the Director of the Housing and Planning Department. b. The agreement required in Section 4.3.4.d. must, at a minimum: (i) Prohibit discrimination on the basis of an individual’s source of income as defined in Section 5-1-13 (Definitions); (ii) Require dispersion of affordable units throughout the housing development; 3/17/2022 2:04 PM Page 5 of 7 COA Law Department 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 (iii) Require equal access and use of on-site amenities, common areas, and parking facilities; (iv) Require shared access routes for affordable units and market- rate units; (v) Require that affordable units include interior components that are functionally equivalent to market-rate units; and (vi) Require the applicant to incorporate lease provisions related to 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. Unless otherwise approved by the director, the bedroom count for affordable units shall be comparable to the bedroom count for market rate units. At the discretion of the director, two-bedroom or three- bedroom affordable units may count as two or three, one-bedroom (efficiency) affordable units. If the number of units required in this section include less than a whole unit, the unit number is rounded up to the nearest whole unit. Affordable for lease unit locations may be rotated within the building, provided that the total number of required affordable units remains in compliance with the exemption and bonus requirements for the affordability period. Simultaneous Availability of Affordable Units. (i) In a single-phase housing development, affordable units must be available for occupancy concurrently with the market-rate units. (ii) 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 4.3.4.d. c. d. e. f. An applicant for a VMU building shall prepare and follow an affirmative marketing and outreach plan for the duration the affordable period, in a form consistent with the U.S. Department of 3/17/2022 2:04 PM Page 6 of 7 COA Law Department 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 Housing and Urban Development regulations and approved by the Director of the Housing and Planning Department. Affordability Post-Construction Compliance and Penalty. In this section, director means the Director of the Housing and Planning Department. For a rental development, the owner of a VMU building with affordable for lease units shall provide the director with information that allows the director to verify compliance with the exemption and bonus requirements. The information shall be provided on an annual basis and on a form approved by the director. If, for any reason, the director is unable to confirm the VMU building exemption and bonus requirements were met during any 12-month period, the preceding 12 months may not be used to satisfy the VMU building affordability period. For an ownership affordable unit, each homebuyer at the time of purchase shall execute a resale restriction agreement in a form approved by the city attorney for recording in the real property records. 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. [4] Fee for Upper-Level Nonresidential Space. The developers of VMU buildings that contain nonresidential uses above the ground-floor shall pay a fee as set by the City Council for all climate-controlled nonresidential space above the ground floor. At the same time that it sets the amount of the fee, the City Council shall also identify a means by which fees paid pursuant to this section shall be reserved only for expenditure within the area of the City from which they were collected. a. b. c. d. e. 6. 7. 8. [5] Monitoring and Enforcement. The City shall develop procedures to monitor and enforce this Section. 3/17/2022 2:04 PM Page 7 of 7 COA Law Department