Z-17-73 Text Amendment to establish Affordable Workforce Housing (Beltline Overlay District)

​DATE:
November 9, 2017


An ordinance by Councilmember Andre Dickens and Kwanza Hall to amend the 1982 Atlanta Zoning Ordinance, as amended, City of Atlanta Code of Ordinances Part 16, so as to add a new chapter 36A entitled "Affordable Workforce Housing (Beltline Overlay District)"; to define certain terms; to provide for related requirements, procedures, and incentives; to amend the 1982 Atlanta Zoning Ordinance, as amended, City of Atlanta Code of Ordinances Part 16. Chapter 28, Section 16-28.023, so as to allow transfer of development rights for unused density bonus; and for other purposes.
The proposed ordinance will amend the text of the Zoning Ordinance in two ways.
First, it creates a new chapter 36A entitled "Affordable Workforce Housing (Beltline Overlay District)". This new chapter mandates that development of new construction of ten (10) or more new residential rental dwelling units within the boundaries of the BeltLine Overlay District set aside a certain percentage of units for affordable housing within the development. This type of mandate is commonly known as inclusionary zoning. The proposed amendment offers density and parking incentives to development covered by the mandate.
Second, it amends Chapter 28 pertaining to transfer of development rights so that excess (i.e. unused) density may be "severed" from the affordable housing development and later transferred to a "receiving" property in need of additional density which would purchase the density rights at fair market value from the affordable housing developer. Both the severance and transfer of such development rights require a special use permit.
Z-          Affordable Workforce Housing
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FINDINGS OF FACTS:
Prooerty location: The proposed amendment is not tied to a specific parcel (i.e. rezoning). It amends the text of the Beltline Overlay District regulations.
Pro ert size and h sical features: The proposed amendment is not tied to a specific parcel. The proposed amendment applies to new construction of ten (10) or more new residential rental dwelling units on the same parcel if such parcel is within the boundaries of the BeltLine Overlay District as defined by Section 16-36.001, et seq.
Surrounding zoning/land uses: The proposed amendment will not change the underlying zoning of any property located within the city limits nor require any change in land use designations.
CDP land use map designation: The Comprehensive Development Plan currently suggests the appropriate areas for all commercial, residential, industrial, live work, neighborhood commercial, special public interest and mixed-use districts for all parcels located within the proposed text amendment. The proposed amendment does not seek to revise the land use designations within any geographical area within the city limits.
PROPOSAL:
The proposal is to define the boundaries of the Beltline Overlay District and set the requirements for parcels being developed with ten (10) or more residential rental dwelling units for the creation of affordable workforce housing.
All improvement of real property in the Affordable Workforce Housing (BeltLine Overlay District), regardless of the number of parcels, upon which ten (10) or more residential rental dwelling units to be constructed at one location, shall comply with the applicable affordability requirement set forth below. The Affordability requirement shall apply for the greater of 20 years from the date of the issuance of the certificate of occupancy; or such longer period from the date of the issuance of the certificate of occupancy, as permitted by state law at the time of the issuance of the building permit.
The affordable workforce housing units shall be substantially similar in construction and appearance (e.g., square footage, type, and brand of appliances, materials used for countertops, flooring, etc.) to the market rate units, and shall not be in isolated areas in the development, but shall be interspersed among market rate units. The number of bedrooms in the affordable workforce housing units (e.g. I bedroom, 2 bedroom, 3 bedroom) shall be proportionate to the number of bedrooms in the market rate units.
(l) At least fifteen percent (15%) of the total residential rental units shall be actively marketed for lease to households having an income, as certified by the prospective tenant(s) at the time of execution of the applicable lease agreement, that does not exceed eighty percent (80%) of the area median income ("AMI") for the family size having the same number of persons as the subject household for the Atlanta-Sandy Springs-Marietta, Georgia Department of Housing and Urban Development ("HUD") Metro Fair Market

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Rent Area (as published by HUD as of the date of the tenant's application). The monthly rent amount (not including utilities and mandatory fees) for each affordable workforce housing unit shall be no more than thirty percent (30%) of the household's monthly gross income as published periodically by HUD; or

1. Al least ten percent (10%) of the total residential rental units shall bc actively marketed for lease to households having an income, as certified by the prospective tenant(s) at the time of execution of the applicable lease agreement, that does not exceed sixty percent (60%) of the AMI for the family size having the same number of persons as the subject household for the Atlanta-Sandy Springs-Marietta, Georgia HUD Metro Fair Market Rent Area (as published by HUD as of the date of the tenant's application). The monthly rent amount (not including utilities and mandatory fees) for each affordable workforce housing unit shall be no more than thirty percent (3()%) of the household's monthly gross income as published periodically by HUD.
2. In lieu of compliance with the on-site affordability requirement, the Applicant may elect to pay an in-lieu fee to the City to be deposited into the BeltLine Affordable Workforce Housing In-Lieu Fee Trust Fund prior to issuance of a building permit. In-lieu fees are a public record and are assessed per BeltLine Subarea and are calculated yearly to reflect the current market. Rates will be published and available on the City of Atlanta Department of City Planning website no later than June I of each year and will be effective July I of that same year. The in-lieu fees plus administrative costs are based on the approximate cost of construction of replacement affordable workforce housing units that were not built on-site.

Units actively marketed for lease in accordance with the terms of the LURA shall be considered to be in compliance with the requirements of this Chapter 36A.
INCLUSIONARY ZONING INCENTIVES
Developers will be able to selectfrom thefollowing incentives

1. Density bonus
   1. 15% Additional Floor Area Ratio (FAR)
   2. Transfer of Development Rights within the Westside Affordable Housing Overlay District (unused density bonus can be transferred to other property owners)
   3. Increase of maximum parking commensurate with the density bonus
   4. Only obligated to comply with open space requirements set by underlying zoning district before bonus
2. Parking Incentives
   1. Residential uses will have no minimum parking required
   2. Non-residential uses in a mixed-use development will receive a 25% parking reduction
3. Application Review
   1. Administrative Review will advance to the top of staff's SAP review queue.

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1. "Major Projects Meeting" will bc organized in which representatives from all departments that will review the permit arc convcncd for a pre-application meeting to identify potential issues and clucidatc expectations

CONCLUSIONS:

1. Compatibility with Comprehensive Development Plan (CDP): timing ot development:

The proposed legislation is compatible with the adopted 2016 CDP which ranks affordable housing among the highest needs and opportunities identificd among all the needs and opportunities in the comprehensive plan. (2016 CDP pg. 7). Further, the CDP identifies a lack of workforce housing as a particular need in the City and notes that current land use policies do not promote affordable housing and as a result, some affordable housing stock is being lost. (2016 CDP pg. 39). The housing strategy for Atlanta in the CDP shows that there is a need for work-force housing affordable to those making 50%" 140% AMI and includes inclusionary zoning as a new policy tool to best help Atlanta achieve its housing goals. (2016 CDP pg. 47). The proposed text amendment mandates workforce housing to be created in the market in which affordable housing is rapidly decreasing—the BeltLine Overlay. The proposed text amendment furthers the goals and objectives of the CDP.

1. Availability of and efTect of public facilities and services: referral to other agencies: Since no development projects are being proposed as part of the text amendment, these considerations are not applicable.
2. EfTect on character of the neighborhood:

The proposed text amendment will have a positive on the character of neighborhoods within the BeltLine Overlay District. Parcels that will be developed will include a mix of incomes and maintain affordable housing options for new and existing residents in the Beltline Overlay District. In addition, the proposed text amendment will allow existing residents to age in place, stabilize the affected neighborhoods, and decrease commuting times.

1. Suitability of proposed land use:

This proposed land use is suitable. The allowable uses of properties within the Beltline Overlay District would not change from their current uses. Staff believes the Beltline Overlay District is appropriate for the area.

1. Effect on adjacent property:

The proposed text amendment will promote diverse and mixed-income housing options including affordable workforce housing for new and existing residents.
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1. Economic use of current zoning:

As most land usc regulations, the proposed a:nendmcnt, as a general proposition, will impose some additional cost on development. This additional cost can be offset, at least in part, by inccntivcs set forth in thc proposed amendment. More importantly, property within the BeltLinc Ovcrlay District has increased significantly since District creation, has high economic value, and is expected to continue to rise relative to other parts of the City. On the balance. the public health safely and welfare secured by this proposed amendment outweighs any additional cost on development.

1. Compatibility with policies related to tree preservation:

The proposed amendment will not affect policies related to tree preservation. Any development subject to the proposed amendment must meet current tree ordinance requirements to obtain a building permit.
STAFF RECOMMENDATION: APPROVAL of the Substitute Ordinance