Inclusionary HousingModel Ordinances

October 24, 2008

Jennifer Czysz, Senior Planner

NH Office of Energy and Planning

Jill Robinson, Senior Planner

Rockingham Planning Commission

Creating Affordable Housing

Smaller Lot Sizes

Increased Density

Cluster Development

Mixed Use

Village Plan Alternative

TIF Districts

Public/Private PartnershipsMulti-Family HomesManufactured HomesSmaller HomesAccessory UnitsInclusionary Zoning

Inclusionary Zoning

Innovative Land Use Controls-RSA 674:21 (k)

NH RSA 674:21 IV (a) Definition

Inclusionary Zoning is a “voluntary incentive” that can “induce the property owner to produce housing units which are affordable to persons or families of low and moderate income.”

The Regulatory Crux

Incentive based

Developer must receive something of value which allows the purchase price to be lower.

A quid pro quo

This is a carrot – developers can NOT be required to build affordable units

Examples

Amherst – Greater density in exchange for smaller lots

Chester – Three developments – result: 18% of units reserved as affordable

Exeter – One development – result: 33% of units reserved as affordable

Nashua – New and very clear ordinance

Model Ordinance Contents

Purpose and Authority

Applicability

Definitions

Incentives

Requirements

Assurance of Continued Affordability

Administration, Compliance, Monitoring

Purpose and Authority

…to encourage and provide for the development of affordable housing…

Supporting DocumentationMaster PlanRegional Housing Needs Assessment

Innovative Land Use - RSA 674:21 (k)

RPC Model

Adds this language: To comply with the requirements of SB 342, An Act establishing a mechanism for expediting relief from municipal actions which deny, impede, or delay qualified proposals for workforce housing

This law will become RSA 674:58-61

RPC Model

Adds this language: In the course of implementing this Article, the Town of ___ has considered the region’s affordable housing needs as described in the Rockingham Planning Commission’s Housing Needs Assessment.

RPC Model: From Should to Shall

New law changes RSA 672:1 III-e:

…Opportunity for development of such housing including so-called cluster development and the including so-called cluster development and the development of multi-family structures, shoulddevelopment of multi-family structures, should shall not be prohibited or unreasonably discouraged by use of municipal planning and zoning powers or by unreasonable interpretation of such powers.

Applicability

Permitted LocationSpecified Zones,All Residential Zones, orTown-wide

Permitted UsesConditional Use Permit (RSA 674:21,I)More efficient than a special exceptionActs like a site-specific overlay or floating

zone

RPC Model: Applicability

New law states that workforce housing must be allowed in a majority, but not necessarily all of the land area that is zoned to permit residential uses within the municipality (674:59)

New Law: How Much Multi-family?

“This paragraph shall not be construed to require a municipality to allow for the development of multifamily housing in a majority of its land zoned to permit residential uses.”

Translation: you don’t have to allow multifamily in all of the 51%.

342 Pop Quiz: Multi-family is:

2 or more dwelling units

3 or more dwelling units

5 or more dwelling units

Definitions

Affordable HousingHousing Cost Burden – 30%

Differentiate between Renter and Owner Occupied

IncomeLow < 50% AMILow to Moderate 50-80% AMIModerate 80-100% AMI

New Law and RPC Model: Workforce Housing

Housing which is intended for sale and which is affordable to a household with an income of no more than 100 percent of the median income for a 4-person household

Rental housing which is affordable to a household with an income of no more than 60 percent of the median income for a 3 person household

Incentives

Possibilities include:

Density Bonuses

Fee Waivers

Utility Provision

Relaxed Regulations

Expedited Permit/Application Review

Financial Assistance – Reduced Land Cost

Growth Control/Phasing Exemptions

Incentives: ILU Model

Affordable Housing Categories and Incentives

Housing Type Set Aside

Density Bonus/ Minimum Site

Frontage Reduction

Low Income Rental Housing 15 to 25% 15 to 25%Moderate Income Rental Housing 20 to 30% 15 to 25%Low Income Owner-occupied Housing 5 to 10% 15 to 25%Moderate Income Owner-occupied Housing 10 to 20% 15 to 25%Moderate to Median Income Owner-occupied Housing 15 to 25% 15 to 25%

Incentives: RPC Model

Density bonus provision is an example only, town must consider if this bonus should be supplemented by other incentives. Town should audit regulations to see if regulations create barriers to reasonable and realistic opportunities.

Requirements

Compatibility of Style

Interspersed Throughout

Project Phasing

Income and Asset Certification

Project Affordability Verification

RPC Model: Adds Procedural Requirements

Key requirement: applicant must be given opportunity to establish cost of complying with conditions and the effect of compliance on the economic viability of the proposed project. 674:60 II.

Assurance of Continued Affordability

Binding Commitment

Maximum Resale Value

Maximum Rent Increase

Documentation of RestrictionsPlanning Board RecordsRegistry of Deeds

Administration, Compliance and Monitoring

Establish Administrative Entity

Certificate of Occupancy Requirements

Establish Monitors

Annual Reporting Requirements

Thank You!

Jennifer Czysz, Senior PlannerNH Office of Energy and Planning

(603) 271-2155jennifer.czysz@nh.gov

Jill Robinson, Senior PlannerRockingham Planning Commission

(603) 778-0885jrobinson@rpc-nh.org