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Agenda 11/13/2018 Item #16D1411/13/2018 EXECUTIVE SUMMARY Recommendation to approve and submit the 2018 State Housing Initiatives Partnership (SHIP) Incentive Review and Recommendation report to Florida Housing Finance Corporation as required by Section 420.9076 (4), Florida Statute. OBJECTIVE: To comply with Section 420.9076 (4), Florida Statute and provide a triennial report that evaluates the implementation of affordable housing incentives in eleven (11) required areas. CONSIDERATIONS: Collier County, as a SHIP recipient, is to prepare a report every three (3) years that reviews established affordable housing policies, procedures, ordinances, land development regulations, and the local Comprehensive Plan. At a minimum, the Affordable Housing Advisory Committee (AHAC) shall submit a report to the Board of County Commissioners (Board) that evaluates the implementation of the eleven (11) statutorily required affordable housing incentives. The report is a joint effort between County staff and the AHAC. The eleven (11) specific incentives are: Expedited Permitting for affordable housing, Impact Fee Waivers, Deferrals, or Modification, Density Flexibility, Reservation of Infrastructure, Allowance of Accessory Dwelling Units, Reduction of Parking and Setbacks Requirements, Flexible Lot Configurations, Modification of Street Requirements, Oversight of policies, regulations, and other provisions that could impact housing affordability, Locally Owned Public Land Inventory, and Proximity of Development Near Transportation, Employment, and Mixed-Use. AHAC has reviewed all these required incentives, and considered many others, since 2016, during the joint efforts to develop the Community Housing Plan accepted by the Board in October 2017. The Collier County 2018 Incentive Review and Recommendation (Draft) Report was provided to AHAC members at their October 1, 2018 meeting. An updated Report was provided a public hearing at the AHAC meeting on October 22, 2018. An advertisement and summary of the Triennial Report, and notice of the AHAC meeting, was published in the Naples Daily News on October 17, 2018. In addition, the Triennial Report was also made available on the Community & Human Services (CHS) website. There were no written or oral public comments received prior to or at the October 22, 2018 public meeting. The 2018 Triennial report was reviewed, discussed, and recommended, by a 6-0 vote, for Board approval. The Report is due to the Florida Housing Finance Corporation by December 31st, 2018. The Board has ninety (90) days from submittal of the Triennial Report to take action on the recommendations and amend the Local Housing Assistance Plan (LHAP) to include new or amended incentives. In early 2019, staff will present a new three (3) year SHIP LHAP for Board review and adoption, incorporating additional incentives for the development of housing that is affordable for community residents. FISCAL IMPACT: The Triennial report is a SHIP statutory requirement. There is no Fiscal impact. LEGAL CONSIDERATIONS: This Item is legally sufficient and requires a majority vote for Board action. -JAB GROWTH MANAGEMENT IMPACT: The SHIP Program assists Collier County in addressing goals and objectives in the Housing Element of the Growth Management Plan. RECOMMENDATION: To approve and submit the 2018 SHIP Incentive Review and Recommendation report to Florida Housing Finance Corporation as required by Section 420.9076 (4), Florida Statute. Prepared By: Susan Golden, Sr. Housing and Grants Coordinator, Community and Human Services Division 16.D.14 Packet Pg. 1793 11/13/2018 ATTACHMENT(S) 1. AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (DOCX) 2. [linked] Community Housing Plan Final 032218-1420 (PDF) 16.D.14 Packet Pg. 1794 11/13/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.14 Doc ID: 7127 Item Summary: Recommendation to approve and submit the 2018 State Housing Initiatives Partnership (SHIP) Incentive Review and Recommendation report to Florida Housing Finance Corporation as required by Section 420.9076 (4), Florida Statute. Meeting Date: 11/13/2018 Prepared by: Title: – Community & Human Services Name: Susan Golden 10/22/2018 12:30 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 10/22/2018 12:30 PM Approved By: Review: Community & Human Services Leslie Davis Additional Reviewer Completed 10/22/2018 4:40 PM Community & Human Services Cormac Giblin Additional Reviewer Completed 10/23/2018 11:24 AM Community & Human Services Maggie Lopez Additional Reviewer Completed 10/23/2018 6:26 PM Community & Human Services Kristi Sonntag CHS Review Completed 10/24/2018 12:53 PM Public Services Department Kimberley Grant Level 1 Reviewer Completed 10/25/2018 9:13 AM Public Services Department Todd Henry Level 1 Division Reviewer Completed 10/25/2018 12:51 PM Grants Erica Robinson Level 2 Grants Review Completed 10/25/2018 2:15 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 10/25/2018 2:44 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 10/25/2018 4:37 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 10/26/2018 8:17 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 10/26/2018 8:34 AM County Attorney's Office Emily Pepin CAO Preview Completed 10/26/2018 8:47 AM Grants Therese Stanley Additional Reviewer Completed 10/26/2018 11:57 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 11/04/2018 3:34 PM Board of County Commissioners MaryJo Brock Meeting Pending 11/13/2018 9:00 AM 16.D.14 Packet Pg. 1795 0 | P a g e 2018 Collier County Board of County Commissioners Affordable Housing Advisory Committee STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) TRIENNIAL REPORT NOVEMBER 13, 2018 16.D.14.a Packet Pg. 1796 Attachment: AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (7127 : 2018 State Housing Initiatives Partnership (SHIP) 1 | P a g e Florida State Statute 420.9076 (4) requires that all local governments participating in the State Housing Initiatives Partnership (SHIP) program review and evaluate the implementation of eleven (11) affordable housing incentives identified in 420.9076(4)(a)-(k). The following eleven incentives are identified in State Statute and must be reviewed and evaluated by the Affordable Housing Advisory Committee (AHAC) every three years. Existing Incentives in use in Collier County 1 Expedited Permitting - The processing of approvals of development orders or permits for affordable housing projects is expedited to a greater degree than other projects, as provided in s.163.3177 (6)(f)3 2 Impact Fee Waivers or Modifications – The modification of impact-fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing 3 Density Flexibility – The allowance of flexibility in densities for affordable housing 4 Parking and Setbacks - The reduction of parking and setback requirements for affordable housing 5 Flexible Lot Configurations – The allowance of flexible lot configurations, including zero-lot-line, for affordable housing 6 Street Requirements – The modification of street requirements for affordable housing 7 Ongoing Oversight – The establishment of a process by which a local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing 8 Land Bank Inventory – The preparation of a printed inventory of locally owned public lands suitable for affordable housing 9 Proximity - The support of development near transportation hubs and major employment centers and mixed-use developments (activity centers, density bands and strategic opportunity sites) Incentives not in use in Collier County 10 Reservation of Infrastructure - The reservation of infrastructure capacity for housing for very- low income persons, low income persons, and moderate-income persons 11 Accessory Dwelling Units - The allowance of affordable accessory residential units (granny flats, mother-in-law quarters, guest cottages) in residential zoning districts 16.D.14.a Packet Pg. 1797 Attachment: AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (7127 : 2018 State Housing Initiatives Partnership (SHIP) 2 | P a g e Incentive Description Incentives and AHAC Review Comments AHAC Recommendation 1 Expedited Permitting – The processing of approvals of development orders or permits, as defined in Sec. 163.3164(7) and (8), F.S. for affordable housing projects is expedited to a greater degree than other projects (See Senate Bill 2011 – SB 176) In accordance with F.S. 553.791(7)(9), no more than 30 business days after receipt of a permit application, the local building official shall issue the requested permit or provide a written notice to the permit applicant identifying the specific plan features that do not comply with the applicable codes, as well as the specific code chapters and sections. The County’s Growth Management Department reviews and refines the building permit process with input from the Development Services Advisory Committee (DSAC) and the public. In 2012 the Board approved a staff augmentation contract with a private provider to assist building division staff during times of elevated permitting requests. The Community Housing Plan, developed by AHAC and the Stakeholders Committee, and approved by the BCC on October 25, 2017, included new recommendations to improve the existing Expedited Permitting process. Current incentive status (1) On February 27, 2018, the Board of County Commissioners approved Resolution 2018-40 to improve the Expedited Development Review process based upon the Stakeholder Committee and AHAC recommendations. (2) Enhanced Expedited Permitting (Fast Tracking) has been implemented with affordable housing developers having successfully utilized the improved process. 2 Impact Fee Waivers or Modifications – The modification of impact-fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing Individuals or organizations constructing new affordable housing units to benefit very low, low and moderate-income persons and households are eligible for the deferral of impact fees per LDC Sec 74-401. Impact Fee deferrals or waivers have historically been allowed since 1993. However, Resolution No. 2008-97, restricted the use of the remaining funds for deferral of County Impact Fee suspending the program for single family, owner- occupied affordable housing developments. On June 23, 2015, the BCC accepted a recommendation to reinstate the impact fee deferral program for single family residences. The 2017 Community Housing Plan (CHP) recommended improvements to the Impact Fee Deferral program which the Board adopted via Ordinance 2018-28 on February 27, 2018. Current incentive status (1) Ordinance 2018-28 was adopted 2/27/18 to clarify and strengthen the Impact Fee Deferral program. Future opportunities: (1) Explore options to retain existing AH units by renewing or extending existing incentives, or creating new incentives, in exchange for the AH unit remaining affordable under the requirements and obligations of AH agreements. (2) Consider an impact fee reduction based on affordable housing proximity to activity centers/Strategic Opportunity Sites; or as part of a mixed income/mixed use development. (3) Consider increasing the length of the deferral (currently 10 years) to maintain affordability of units for a longer period. 3 Density Flexibility – The allowance of flexibility in densities for affordable housing The developer may request increased density when including affordable housing in the proposed development via the Affordable Housing Density Bonus Program, codified by Ordinance No. 04-41, as Land Development Code (LDC) 2.06.00 et seq, which density bonus can only be granted by the Commission and utilized by the Developer in accordance with the strict limitations and applicability of said provisions. Current incentive status (1) County staff have prepared Growth Management Plan and Land Development Code changes to increase the affordable housing density bonus to allow up to 12 additional units to the base density for a max of 16 du/acre. 16.D.14.a Packet Pg. 1798 Attachment: AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (7127 : 2018 State Housing Initiatives Partnership (SHIP) 3 | P a g e During the development of the 2017 Community Housing Plan, AHAC and the Stakeholders Committee reviewed the existing program and recommended increasing the maximum allowed density bonus. The Board of County Commissioners agreed to the proposed changes on February 27, 2018. (2) Changes to the Growth Management Plan were approved by the BCC on 7/10/18 and transmitted to the State DEO in July 2018. (3) Adoption & Implementation hearings to the Land Development Code will occur in late 2018 and early 2019. 4 Parking and Setbacks – The reduction of parking and setback requirements for affordable housing The county has several procedures in place whereby developers may request reduction of parking and setback requirements for all uses, including affordable housing. In the case of redevelopment projects, deviations are allowed when applied through the site development plan (SDP) review. For projects that use a rezone process such as a Planned Unit Development (PUD), deviations are allowed as part of that process. Parking, setbacks and other cost-saving infrastructure changes were reviewed during the development and adoption of the Community Housing Plan in 2016-2017. Current incentive status (1) The Community Housing Plan (CHP) recommended that the “…County continue to explore and refine the list of regulatory relief items and present a full list to the Board for approval through the applicable LDC or GMP amendment cycles.” (2) Recommendations to provide regulatory relief, based upon Phase 3 of the Community Housing Plan implementation, were provided to the County Commission on October 9, 2018. 5 Flexible Lot Configurations – The allowance of flexible lot configurations, including zero-lot-line configurations for affordable housing Zero lot configuration allowed as use in PUD’s and as Conditional Use elsewhere per 4.02.04 of the LDC under cluster housing. In preparing the 2017 Community Housing Plan, it was recommended that the County consider amending the LDC to adopt some elements of “smart code” after the completion of the four geographic re-study areas. Current incentive status (1) The County Re-Study of four distinct geographic areas is still under way. Future flexibility may be provided as recommendations make their way through the Growth Management Plan (GMP) and Land Development Code (LDC) amendment process in 2019. 6 Street Requirements – The modification of street requirements for affordable housing Street requirements for affordable housing are considered as deviations in the PUD approval process and variances in the conventional zoning process, on a case by case basis. Cross-section widths can be modified by the County Engineer administratively per 6.06.01.N of the LDC. As discussed in the Community Housing Plan (CHP) process in 2016-2017, street requirements could be addressed with Parking, Setback and Flexible Lot Configuration review and possible “Smart Code” future amendments to the LDC or GMP. Current incentive status (1) The Community Housing Plan recommended that the “…County continue to explore and refine the list of regulatory relief items and present a full list to the Board for approval through the applicable LDC or GMP amendment cycles.” (2) Regulatory relief recommendations, as part of Phase 3 of the CHP, were presented to the BCC on October 9, 2018. 7 Ongoing Oversight – The establishment of a process by which a local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing An ongoing process for review of local policies, ordinances, regulations and plan provisions that increase the cost of housing prior to their adoption is in place. Collier County requires all items which have the potential to increase the cost of housing to be prepared and presented to the Collier County Board of County Commissioners with the amount of the increase or decrease mentioned in the executive summary under fiscal impact. The County regularly utilizes the existing entities and processes undertaken by the AHAC, the Planning Commission, and the Development Services Current incentive status (1) On a case by case basis add a Fiscal Impact to Affordable Housing section to specifically discuss impact of cost on housing affordability. 16.D.14.a Packet Pg. 1799 Attachment: AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (7127 : 2018 State Housing Initiatives Partnership (SHIP) 4 | P a g e Advisory Committee to review and examine impacts on the cost of housing. 8 Land Bank Inventory – The preparation of a printed inventory of locally owned public lands suitable for affordable housing Florida Statute 125.379, Disposition of County property for affordable housing, requires the preparation of a printed inventory of locally owned public lands suitable for affordable housing. Collier County has completed this process and maintains a list of locally owned properties. Resolution 2007-172 and Resolution 2010-123 directs the use of surplus land and directs those funds derived from the sale of such property be placed in the Affordable Housing Trust Fund. In 2018, two parcels of County owned property were included in a Request for Information (RFI) for the development of housing that is affordable. This process has continued with independent review by a local firm, formation of a joint subcommittee, and future Board direction anticipated in late 2018 and early 2019. In addition, five (5) other county-owned parcels were advertised for invitation for sealed bids for affordable housing development. The results will be presented to the County Commission later in 2018. Current incentive status (1) Based upon a Community Housing Plan recommendation, the BCC has directed staff to proceed with establishing a community land trust (CLT). (2) On February 27, 2018, the BCC adopted Resolution 2018-39 to consider co-location of affordable housing with future county public facility land acquisition efforts. Future Opportunities: (1) Encourage other public entities such as the school district, the City of Naples and the City of Marco Island, and area Fire Districts, to look at their available land for co-location of affordable housing (2) Utilize funds in the affordable housing trust fund to consider purchasing land suitable for affordable housing. (3) Encourage collaborative partnerships among nonprofit and for-profit businesses interested in addressing housing affordability. (4) Continue initiatives on the two County owned parcels (Bembridge & Manatee). 9 Proximity – The support of development near transportation hubs and major employment centers and mixed-use developments (activity centers, density bands and strategic opportunity sites) The County currently addresses this incentive through additional density offered in designated density bands and activity centers. It is noted that while this opportunity exists, the development community has not taken advantage of the density for affordable housing. This topic was also reviewed during the 2016- 2017 Community Housing Plan process. Specific suggestions from the Stakeholders and AHAC included “Strategic Opportunity Sites”, higher densities in Activity Centers & Strategic Opportunity Sites, and integration of bus routes with affordable housing locations, amongst others. Current Incentive Status (1) The concepts of Strategic Opportunity Sites, increased density in Activity Centers and Strategic Opportunity Sites, conversion of commercial to residential, increased density in Community Redevelopment Agency acres, linking transportation and affordable housing, and other concepts remain under discussion with the Board of County Commissioners. 10 Reservation of Infrastructure – The reservation of infrastructure capacity for housing for very-low income persons, low income persons, and moderate-income persons Not a current incentive as presently there is no policy or need to reserve infrastructure for future development in Collier County. Incentive is not proposed for adoption. 11 Accessory Dwelling Units (ADUs) - The allowance of affordable accessory residential units in residential zoning districts Not a current incentive. The use of these units, sometimes referred to as mother-in-law suites, granny flats or ADUs, is addressed in the County code under the term “guest cottage”. Maintain current guest house code. Future opportunities: (1) A development known as Rural Lands West is proposing a pilot program for ADUs. (2) At a later date, research the Palm Beach County pilot program for “cottage homes” and City of Rockledge cottage home regulations and present findings to AHAC. 16.D.14.a Packet Pg. 1800 Attachment: AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (7127 : 2018 State Housing Initiatives Partnership (SHIP) 5 | P a g e The Collier County Board of County Commissioners invited the Urban Land Institute (ULI) to come to Collier County in early 2017 to assist in the development of a community-wide approach to address the housing affordability challenges. The Urban Land Institute Advisory Services Panel spent a week in Collier County to study housing affordability and provide recommendations. The final ULI Panel Report included 35 specific recommendations to assist in addressing the housing affordability challenges. The Collier County Board of County Commissioners provided direction to staff to explore 27 of the 35 recommendations. The outcome of the work by the Stakeholders Committee, Affordable Housing Advisory Committee, and staff was the acceptance of the Collier County Community Housing Plan - October 25, 2017. The Community Housing Plan (CHP) includes a multitude of recommendations that have been brought back to the BCC and the community for direction in three phases – February 27, 2018, April 24, 2018 and October 9, 2018. The Community Housing Plan, the SHIP LHAP and the HUD 5-Year Consolidated Plan will continue to guide Collier County’s efforts to address housing affordability in the coming years. The Community Housing Plan – October 25, 2017 is attached as an exhibit to the 2018 SHIP Triennial Report. 16.D.14.a Packet Pg. 1801 Attachment: AHAC appr 2018 SHIP Triennial rpt - KS CG 10-22-18 AHACmtg-KG (7127 : 2018 State Housing Initiatives Partnership (SHIP)