02 C20-2023-037 - SMART Housing Updates Phase 2 Draft Ordinance — 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 ORDINANCE NO. _________________ AN ORDINANCE AMENDING ARTICLE 15 (S.M.A.R.T. HOUSING PROGRAM) OF CITY CODE CHAPTER 25-1 (GENERAL REQUIREMENTS AND PROCEDURES) RELATED TO PROGRAM REQUIREMENTS AND PROVISIONS THAT APPLY TO OTHER AFFORDABLE HOUSING PROGRAMS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF AUSTIN: PART 1. City Code Section 25-1-701 (Definitions) is amended to amend the definition of “Director” to read: (1) DIRECTOR means the director of the City's [Neighborhood] Housing [and Community Development] Department. PART 2. City Code Section 25-1-702 (Administration) is repealed and replaced to read: § 25-1-702 ADMINISTRATION. (A) The director administers, implements, and enforces the S.M.A.R.T. Housing program. (B) The director is authorized to adopt, administer, and implement program guidelines and establish requirements for an application under the program. PART 3. City Code Section 25-1-703 (Program Requirements) is amended to amend Subsection (C), to delete Subsection (D), and to re-letter the remaining subsection to read: § 25-1-703 PROGRAM REQUIREMENTS. (C) Except as provided in Subsection (D), a reasonably-priced dwelling unit is one that is affordable for purchase or rental by a household that meets the housing costs and income qualifications of this subsection. (1) This paragraph provides qualifications on the amount of household income spent on housing costs. (a) Except as provided by Subparagraphs (b) and (c), housing costs of a household may not exceed 30 percent of its gross income. (b) A household may spend up to 35 percent of its gross income on housing costs if a household member receives City-approved homebuyer counseling. (c) A household that complies with other federal, state, or local income eligibility standards is not subject to the expenditure qualifications of Paragraphs (a) and (b). (2) This paragraph provides qualifications on household income. 4/22/25 SMART Housing Program Update Page 1 of 4 COA Law Department 02 C20-2023-037 - SMART Housing Updates Phase 2 1 of 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 (a) (b) If an applicant develops dwelling units for sale, reasonably-priced dwelling units must serve households whose incomes average 80 percent of the median family income or below. [Except as provided in Subparagraph (b), the household income may not exceed 80 percent of the median family income.] If an applicant develops dwelling units for lease, reasonably-priced dwelling units must serve households whose incomes average 60 percent of the median family income or below. [In a Downtown Mixed Use (DMU) or Central Business District (CBD) base zoning district, household income may not exceed: (i) 120 percent of the median family income for an owner-occupied dwelling unit; or (ii) 80 percent of the median family income for a rental dwelling unit.] [(D) For a Vertical Mixed Use (VMU) building, a reasonably-priced dwelling unit is one that meets the affordability requirements of Chapter 25-2, Subchapter E, Section 4.3.3.F (Affordability Requirements).] PART 4. City Code Section 25-1-704 (Fee Waivers) is amended to amend Subsection (B) to read: § 25-1-704 FEE WAIVERS. (B) A developer is eligible for a waiver of the fees if the director determines that the S.M.A.R.T. housing development provides the percentage of reasonably priced dwelling units prescribed by this subsection. (1) (2) (3) (4) If [Except as provided in Subdivision (2): (a) if] at least ten percent of the dwelling units are reasonably priced, the development is eligible for a waiver of 25 percent of the fees.[;] If [(b) if] at least 20 percent of the dwelling units are reasonably priced, the development is eligible for a waiver of 50 percent of the fees.[;] If [(c) if] at least 30 percent of the dwelling units are reasonably priced, the development is eligible for a waiver of 75 percent of the fees.[; and] If [(d) if] at least 40 percent of the dwelling units are reasonably priced, the development is eligible for a waiver of 100 percent of the fees. [(2) The development is eligible for a waiver of 100 percent of the fees if: (a) except as provided in Paragraphs (c) and (d), the development is located within the Urban Roadways boundary described by Chapter 25-2, Subchapter E (Design Standards and Mixed Use), and at least five percent 4/22/25 SMART Housing Program Update Page 2 of 4 COA Law Department 02 C20-2023-037 - SMART Housing Updates Phase 2 2 of 4 69 70 71 72 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 of the dwelling units are reasonably priced and are transferred to a City- approved affordable housing land trust or other similar entity approved by the director; except as provided in Paragraph (c), the development is located outside the Urban Roadways boundary described by Chapter 25-2, Subchapter E (Design Standards and Mixed Use), and at least ten percent of the dwelling units are reasonably priced and are transferred to a City-approved affordable housing land trust or other similar entity approved by the director; the development is a Vertical Mixed Use (VMU) building that complies with the affordability requirements of Chapter 25-2, Subchapter E, Section 4.3.3.F (Exemption and Bonus Requirements); or the development is located in either a Downtown Mixed Use (DMU) or Central Business District (CBD) base zoning district, and at least ten percent of the dwelling units are reasonably priced.] (b) (c) (d) PART 5. City Code Section 25-1-705 (Required Affordability Period) is amended to amend Subsections (A) and (D) to read: § 25-1-705 REQUIRED AFFORDABILITY PERIOD. (A) To be eligible for the S.M.A.R.T. Housing program, unless a longer term is required by law, private agreement, or another provision of this Code, all reasonably priced dwelling units in a S.M.A.R.T. Housing development must remain reasonably priced for the following affordability periods commencing on the date of initial occupancy: [(1) except as provided in Paragraphs (3) and (4), for dwelling units within the University Neighborhood Overlay District, a period of at least fifteen years; (2) (1) except as provided in Paragraphs (3) and (4), for dwelling units outside the University Neighborhood Overlay District:] [(a)] if the unit is owner-occupied, a period of at least one year, or if the owner is receiving federal housing assistance, a period of at least five years; or (2) [(b)] if the unit is a rental unit, a period of at least five years. 98 99 100 [(3) for dwelling units in a DMU or CBD base zoning district, a period of at least 99 years for owner-occupied units, and a period of at least 40 years for rental units; and 4/22/25 SMART Housing Program Update Page 3 of 4 COA Law Department 02 C20-2023-037 - SMART Housing Updates Phase 2 3 of 4 (4) for dwelling units in a VMU building that has or will benefit from an exemption from dimensional standards available under Chapter 25-2, Article 4, Section 4.3.3.E (Dimensional and Parking Requirements), the applicable affordability period set forth in Chapter 25-2, Article 4, Section 4.3.3.F (Affordability Requirements).] (D) Before the [The] director may certify, [require] the applicant [developer] shall comply with Section 4-18-25 (Certification) except that the agreement must, at a minimum, [to execute an agreement and restrictive covenant or other binding restriction on land use that preserves affordability in accordance with the S.M.A.R.T. Housing program. The agreement may] include: (1) terms that require a defaulting applicant to pay the otherwise applicable fees; (2) (3) liquidated damages in an amount up to twice the amount of fees waived, being such an amount that will fairly compensate the City for administrative costs incurred; and liquidated damages that will fairly compensate the City for any breach that results in the loss of reasonably-priced dwelling units during the affordability period. PART 6. This ordinance takes effect on _________________________, 2025. PASSED AND APPROVED § § § _____________________________________ , 2025 Kirk Watson Mayor APPROVED: ______________________ ATTEST: _____________________________ Deborah Thomas Interim City Attorney Erika Brady City Clerk 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 4/22/25 SMART Housing Program Update Page 4 of 4 COA Law Department 02 C20-2023-037 - SMART Housing Updates Phase 2 4 of 4