Inclusionary Housing Model Ordinances

1. Inclusionary HousingModel Ordinances October 24, 2008 Jennifer Czysz, Senior Planner NH Office of Energy and Planning Jill Robinson, Senior Planner Rockingham Planning Commission

2. Smaller Lot Sizes Increased Density ClusterDevelopment Mixed Use Village Plan Alternative TIF Districts Public/Private Partnerships Multi-Family Homes Manufactured Homes Smaller Homes Accessory Units Inclusionary Zoning Creating Affordable Housing

3. 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 ownerto produce housing units which are affordable to persons or families of low and moderate income.”

4. 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

5. 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

6. Model Ordinance Contents • Purpose and Authority • Applicability • Definitions • Incentives • Requirements • Assurance of Continued Affordability • Administration, Compliance, Monitoring

7. Purpose and Authority • …to encourage and provide for the development of affordable housing… • Supporting Documentation • Master Plan • Regional Housing Needs Assessment • Innovative Land Use - RSA 674:21 (k)

8. 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

9. 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.

10. 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 development of multi-family structures, shouldshall not be prohibited or unreasonably discouraged by use of municipal planning and zoning powers or by unreasonable interpretation of such powers.

11. Applicability • Permitted Location • Specified Zones, • All Residential Zones, or • Town-wide • Permitted Uses • Conditional Use Permit (RSA 674:21,I) • More efficient than a special exception • Acts like a site-specific overlay or floating zone

12. 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)

13. 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%.

14. 342 Pop Quiz: Multi-family is: • 2 or more dwelling units • 3 or more dwelling units • 5 or more dwelling units

15. Definitions • Affordable Housing • Housing Cost Burden – 30% • Differentiate between Renter and Owner Occupied • Income • Low < 50% AMI • Low to Moderate 50-80% AMI • Moderate 80-100% AMI

16. 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

17. Incentives Possibilities include: • Density Bonuses • Fee Waivers • Utility Provision • Relaxed Regulations • Expedited Permit/Application Review • Financial Assistance – Reduced Land Cost • Growth Control/Phasing Exemptions

18. Incentives: ILU Model Affordable Housing Categories and Incentives

19. 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.

20. Requirements • Compatibility of Style • Interspersed Throughout • Project Phasing • Income and Asset Certification • Project Affordability Verification

21. 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.

22. Assurance of Continued Affordability • Binding Commitment • Maximum Resale Value • Maximum Rent Increase • Documentation of Restrictions • Planning Board Records • Registry of Deeds

23. Administration, Compliance and Monitoring • Establish Administrative Entity • Certificate of Occupancy Requirements • Establish Monitors • Annual Reporting Requirements

24. Thank You! Jennifer Czysz, Senior Planner NH Office of Energy and Planning (603) 271-2155 jennifer.czysz@nh.gov Jill Robinson, Senior Planner Rockingham Planning Commission (603) 778-0885 jrobinson@rpc-nh.org