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Agenda 12/14/2021 Item #16D11 (2021 State Housing Initiatives Parnership Incentive Strategies Report)12/14/2021 EXECUTIVE SUMMARY Recommendation to approve and submit the 2021 State Housing Initiatives Partnership Incentive Strategies Report to Florida Housing Finance Corporation and Florida Housing Coalition as required by Florida Statute Section 420.9076 (4). OBJECTIVE: To comply with Section 420.9076 (4), F.S. and provide an annual report that evaluates the implementation of affordable housing incentives in eleven (11) required areas. CONSIDERATIONS: Collier County, as a State Housing Initiatives Partnership (SHIP) program recipient, must prepare an annual report that reviews established 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 local governing body (the Board) that evaluates the implementation of the eleven (11) required affordable housing incentives. The report is a joint effort between Community and Human Services Division (CHS) staff and the Affordable Housing Advisory Committee (AHAC). This required Incentive Strategies Report had been due to Florida Housing Finance Corp (FHFC) every three (3) years but in 2020, HB 1339 made this an annual requirement of the SHIP program. The eleven (11) incentives to be reviewed are: Expedited Permitting (for housing that is affordable), Modification of Impact Fees, Flexible Densities, Reservation of Infrastructure Capacity, Parking and Setbacks Requirements, Accessory Dwelling Units, Flexible Lot Configurations, Modification of Street Requirements, Process of Ongoing Review (provisions that could impact housing affordability), Public Land Inventory, and Development Near Transportation. AHAC meets monthly and has reviewed the required eleven (11) incentives. Some of these eleven (11) required areas of the review were addressed in the 2017 Community Housing Plan (CHP). Based upon the recommendations in the 2017 CHP, some of the required incentives were in the process of being implemented and have been reviewed and evaluated by County staff and Development Services Advisory Committee (DSAC) and forwarded to the Planning Commission and Board of County Commission for their review and approval. A draft Incentive Report was presented at a public hearing of AHAC on November 1, 2021. An advertisement and summary of the SHIP Incentives Strategies Report, and notice of the AHAC meeting, was published in the Naples Daily News on October 25, 2021. In addition, the Incentive Strategies Report was also made available on the CHS website. There were public comments received at the November 1, 2021 public hearing or prior to the meeting. The SHIP report was reviewed and discussed by AHAC with unanimous approval to forward the report to the Board for acceptance and submittal to FHFC. The Board of County Commissioners has ninety (90) days from the submittal of the SHIP Incentives Report to act on the recommendations and amend the Local Housing Assistance Plan to include any new or amended incentives. In the spring of 2022, staff will present an updated three-year SHIP Local Housing Assistance Plan (LHAP) for Board review and adoption incorporating incentive strategies for the development of housing that is affordable for community residents. FISCAL IMPACT: The SHIP Incentive Strategies Report is a statutory requirement. There is no funding impact. Packet Pg. 1705 16.D.11 12/14/2021 LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board action. -JAB GROWTH MANAGEMENT IMPACT: The State Housing Initiative Partnership (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 2021 State Housing Initiatives Partnership Incentive Strategies Report to Florida Housing Finance Corporation and Florida Housing Coalition as required by Florida Statute Section 420.9076 (4). Prepared By: Susan Golden, Sr. Housing and Grants Coordinator, Community and Human Services Division ATTACHMENT(S) 1. SHIP Incentive Strategies Rpt w-JAB rev 11.22 (DOCX) Packet Pg. 1706 16.D.11 12/14/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.13.11 Doe ID: 20470 Item Summary: Recommendation to approve and submit the 2021 State Housing Initiatives Partnership Incentive Strategies Report to Florida Housing Finance Corporation and Florida Housing Coalition as required by Florida Statute Section 420.9076 (4). Meeting Date: 12/14/2021 Prepared by: Title: — Community & Human Services Name: Susan Golden 11/01/2021 2:26 PM Submitted by: Title: Manager - Federal/State Grants Operation — Community & Human Services Name: Kristi Sonntag 11/01/2021 2:26 PM Approved By: Review: Community & Human Services Leslie Davis Additional Reviewer Community & Human Services Maggie Lopez Additional Reviewer Community & Human Services Jacob LaRow Additional Reviewer Community & Human Services Todd Henry CHS Review Operations & Veteran Services Kimberley Grant Additional Reviewer Public Services Department Todd Henry Public Services Department Grants Erica Robinson Level 2 Grants Review Public Services Department Dan Rodriguez PSD Department Head County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Growth Management Operations Support Christopher Johnson County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Grants Therese Stanley Additional Reviewer County Manager's Office Amy Patterson Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 11/01/2021 2:39 PM Completed 11/08/2021 8:28 AM Completed 11/08/2021 10:34 AM Skipped 11/10/2021 7:43 AM Completed 11/10/2021 5:44 PM Completed 11/12/2021 9:02 AM Completed 11/19/2021 8:57 AM Completed 11/19/2021 11:54 AM Completed 11/22/2021 4:30 PM Completed 11/23/2021 7:59 AM Additional Reviewer Completed Completed 11/23/2021 10:54 AM Completed 11/30/2021 12:50 PM Completed 12/03/2021 1:37 PM 12/14/2021 9:00 AM Packet Pg. 1707 16.D.11.a ncentive Strategies Report Template AFFORDABLE HOUSING ADVISORY COMMITTEE REPORT TO BOARD OF COUNTY COMMISSIONERS SHIP AFFORDABLE HOUSING INCENTIVE STRATEGIES SUBMITTED TO: COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS (BCC) SUBMITTED TO: ROB DEARDUFF FLORIDA HOUSING FINANCE CORPORATION DATE SUBMITTED: 12/14/2021 PREPARED BY: COLLIER COUNTY COMMUNITY & HUMAN SERVICES & AFFORDABLE HOUSING COMMITTEE (AHAC) BACKGROUND As a recipient of State Housing Initiative Partnership funds, Collier County established an Affordable Housing Advisory Committee in 1993 (Ordinance No. 93-19) and repealed and replaced early versions with Ordinance No. 2013-27 as required by the Florida Statutes, Sec. 420.9076. The AHAC is responsible for reviewing and evaluating local plans, policies, procedures, land development regulations, the Comprehensive Plan, and other aspects of the City/County housing activities that impact the production of affordable housing. Further, the AHAC is specifically directed by the SHIP Statute to consider and evaluate the implementation of the incentives set out at Florida Statutes, Sec. 420.9076 (4)(a)-(k). Based on the AHAC evaluation, it may recommend to local government that it make modifications of, exceptions to, or creation of new plans, policies, procedures, and other governing vehicles which would encourage production of affordable housing. If approved by the BCC, the recommendations will be used to amend the Local Housing Assistance Plan (LHAP) and the local Comprehensive Plan Housing Element. COMMITTEE COMPOSITION The BCC appointed or re -appointed members to the Committee via Ordinance No. 2020-27 recognizing the requirement to appoint an elected official and. Section 420.9076 (2), Florida Statutes, liststhe categories from which committee members must be selected. Each AHAC must have a locally elected official from the county or municipality participating in the SHIP program. The locally elected official must be a City or County Commissioner. The elected official will count as a member of the AHAC for purposes of meeting the number of members requirements. There must be at least eight committee members with representation from at least six of the following categories: 1 Packet Pg. 1708 16.D.11.a (a) A citizen who is actively engaged in the residential home building industry in connection with affordable housing. (b) A citizen who is actively engaged in the banking or mortgage banking industry in connection with affordable housing. (c) A citizen who is a representative of those areas of labor actively engaged in home building in connection with affordable housing. (d) A citizen who is actively engaged as an advocate for low-income persons in connection with affordable housing. (e) A citizen who is actively engaged as a for -profit provider of affordable housing. (f)A citizen who is actively engaged as a not -for -profit provider of affordable housing. (g)A citizen who is actively engaged as a real estate professional in connection with affordable housing. (h)A citizen who actively serves on the local planning agency pursuant to s. 163.3174. If the local planning agency is comprised of the governing board of the county or municipality, the governing board may appoint a designee who is knowledgeable in the local planning process. (i)A citizen who resides within the jurisdiction of the local governing body making the appointments. (j)A citizen who represents employers within the jurisdiction. (k)A citizen who represents essential services personnel, as defined in the local housing assistance plan. The appointed AHAC Committee members are included here, along with their category affiliation. Name Category Represented Date Appointed 1 Rick LoCastro Elected Official 1/12/2021 2 Mary Waller Resident in Jurisdiction (RE) 11/15/16; 10/27/20 3 Steve Hruby Residential Home Bldg Industry 6/12/07; 10/8/19 4 Litha Berger Real Estate Professional 10/13/15; 10/8/19 5 Jennifer Mitchell Essential Service Personnel 11/12/2019 6 John Harney Advocate for Low Income Persons 10/27/2020 7 Joseph Trachtenberg Employer within Jurisdiction 5/25/2021 8 Bernardo Barnhart Resident in Jurisdiction (Imm) 5/25/2021 9 Vacant TBD — Resident* Future BCC appointment- 12/14/21 Agenda 10 Vacant TBD-Non-Profit Provider of Affordable Housing* Future BCC appointment - 12/14/21 Agenda 11 Vacant TBD-Labor — representative of those areas of labor actively engaged in home building in connection with affordable housing* Future BCC appointment - 12/14/21 Agenda *These categories are based on applications presented to the Board on December 14, 2021. If appointments are made, these areas will be updated prior to submittal of this report. AFFORDABLE HOUSING RECOMMENDATIONS The AHAC has reviewed local government plans, policies, and procedures; ordinances; regulations; statutes; and the comprehensive plan, among other documents applicable to housing that is affordable, toevaluatetheir impacts on housingthat is affordable housing. Further, the AHAC has specifically considered and evaluated the strategies set out at Florida Statutes, Sec. 420.9076 (4)(a)-(k). Based on this review and evaluation, the AHAC has formulated 2 Packet Pg. 1709 16.D.11.a recommendations to the County Commission that it incorporates into its housing strategy certain changes designed to encourage production of housing that is affordable. The AHAC, from its review, consideration, evaluation, and recommendations, drafts and submits this report to the County Commission, to Florida Housing Finance Corporation, and the Florida Housing Coalition, which details the scope of its work and the resulting recommendations. From the review and evaluation of the local government documents, the AHAC makes these recommendations to the County Commission that it incorporate into its housing strategy the following: RECOMMENDATION 1 Meeting Synopsis: The County's Affordable Housing Advisory Committee (AHAC) has reviewed various staff and consultant (Johnson Engineering) recommendations to provide development standards and regulatory relief for housing that is affordable. Eight (8) development standard deviations were approved by the BCC via Ordinance No 2021-05 on February 9, 2021. AHAC has reviewed and provided input on four (4) additional initiatives during the second and third quarters of 2021. Existing Strategy: None AHAC Recommendation: Adoption of four (4) Regulatory Relief Initiatives spearheaded by CHS consultant, Johnson Engineering. These Initiatives include: (a) permit housing that is affordable by right in Commercial Zoning Districts, (b) increase allowed density in Activity Centers from 16 du/ac to 25 du/ac, (c) for any properties designated as Strategic Opportunity Sites (SOS) allow a maximum density of 25 du/ac, (d) establish a policy to encourage higher density along transit corridors. Schedule for Implementation: These 4 initiatives are currently under staff review. Proposed public hearings to discuss regulatory relief initiatives before the Planning Commission and BCC are anticipated during the first and second quarter of 2022. RECOMMENDATION 2 Meeting Synopsis: Existing Strategy: AHAC Recommendation: Schedule for Implementation: The AHAC has reviewed, considered, and evaluated the following the strategies provided in the SHIP Statute at Section 420.9076 (4), Florida Statutes: (a) The processing of approvals of development orders or permit, as defined in Florida Statutes, Sec, 163.3164(7), (8), for affordable housing projects is expedited to a greater degree than other projects. (b) The modification of impact -fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing. (c) The allowance of flexibility in densities for affordable housing. (d) The reservation of infrastructure capacity for housing for very low-income persons, low-income persons, and moderate -income persons. (e) The allowance of affordable accessory residential units in residential zoning districts. (f) The reduction of parking and setback requirements for affordable housing. (g) The allowance of flexible lot configurations, including zero -lot -line configurations for affordable housing. (h) The modification of street requirements for affordable housing. (i) The establishment of a process by which a local government considers, before adoption, policies, 3 Packet Pg. 1710 16.D.11.a procedures, ordinances, regulations, or plan provisions that increase the cost of housing. (j) The preparation of a printed inventory of locally owned public lands suitable for affordable housing. (k) The support of development near transportation hubs and major employment centers and mixed -use developments. EXPEDITED PERMITTING Meeting Synopsis: Issue was discussed on September 131h and October 4, 2021. One AHAC member indicated that Pasco County has successfully used Accela Automation software to manage coordination of all elements of process and approvals for property development. These changes have cut review times and cost for development and have led to greater interest and participation by builders and developers in Pasco County. Existing Strategy: Collier County has had an Expedited/Fast Track permitting process in place for housing that is affordable since 2007. Based upon AHAC and community stakeholders' input during the development of the 2017 Community Housing Plan (CHP), the Expedited Permitting process was reviewed and updated with the adoption of Resolution 2018-40 on February 27, 2018. AHAC Recommendation: No changes recommended at the present time. Schedule for Implementation: Resolution 2018-40 has been implemented and affordable housing developers have successfully utilized the improved process. MODIFICATION OF IMPACT FEES Meeting Synopsis: Impact Fees were discussed September 131h and October 4, 2021. Some members were aware of communities that base impact fees on the square footage of each home, thereby having a lower impact fee for housing that is affordable. Other members indicated that discounting impact fees would be helpful for reduction of the total cost of homes that are affordable. However, eliminating impact fees can led to a structure which does not provide enough revenue to provide the basic infrastructure necessary to cover the cost of streets, water, sewer, etc. Homes that are affordable should make a contribution to the infrastructure of the community. Other members have noted that the current Impact Fee Deferral system does not work well for affordable rental housing development and should be modified to better match the financing timeframes of Low -Income Housing Tax Credit (LIHTC) properties and other affordable rental developments. Existing Strategy: Collier County has had an Impact Fee Deferral program in place for housing that is affordable since the late 1980s. Based upon recommendations from the 2017 Community Housing Plan, the Impact Fees Deferral program was modified and improved via Ordinance No. 2018-28 on February 27, 2018. AHAC Recommendation: In 2022, review opportunities to increase the length of the deferral period for rental housing to provide consistency with various financing sources. Schedule for Implementation: During the first quarter of 2022, consider fact finding and rental housing developers needs related to the existing Impact Fee Deferral program. Determine when Collier County consultant is scheduled to review countywide Impact Fee programs. FLEXIBLE DENSITIES Meeting Synopsis: Densities have been discussed in relationship to the Johnson Engineering regulatory relief proposals in the spring and summer of 2021 and at the September 13`h and October 4, 2021 meetings. One member of AHAC wanted to ensure that green space would continue to be a requirement along the transit corridors. Development of up to twenty-five units per acre, without provision for significant green space of any kind, may cause public outcry against "excessive urbanization", which may be considered out of character for Collier County. 4 Packet Pg. 1711 16.D.11.a Existing Strategy: Throughout most of Collier County, residential zoning has a base density of 4 units per acre. Collier County has had an affordable housing density bonus program since 1990 Ordinance No.. 90-89. As a result of the 2017 Community Housing Plan and AHAC, Collier County amended its Land Development Code (LDC) to increase density for units that are affordable through Ordinance No. 2019-02 adopted February 12, 2019. The Affordable Housing Density Bonus (AHDB) program now provides up to 16 units per acre. AHAC Recommendation: Recommendation #1 approval of the proposed regulatory relief initiatives to increase density in Activity Centers from 16 du/ac to 25 du/ac, on sites designated as Strategic Opportunity Sites allow a maximum density of 25 du/ac and adopt a Transportation Policy to prioritize higher density along transit corridors. Schedule for Implementation: It is anticipated that these proposed increases in density may be heard by the Planning Commission and the BCC in the first and second quarter of 2022. RESERVATION OF INFRASTRUCTURE CAPACITY Meeting Synopsis: Collier County does not reserve infrastructure capacity. Existing Strategy: Collier County does not reserve infrastructure capacity. AHAC Recommendation: No changes are proposed. Implementation: None PARKING AND SETBACK REQUIREMENTS Meeting Synopsis: These topics have been discussed since the development of the Community Housing Plan (CHP). Existing Strategy: The County currently has two processes where developers can request a reduction of parking and setback requirements. Deviations from existing requirements can be requested through the Site Development Plan (SDP) process or the rezoning to Planned Unit Development (PUD) process. Recommendations to modify some setback requirements for housing that is affordable were included in Ordinance No. 2021-05 amending the LDC, adopted February 9, 2021. AHAC Recommendation: No changes are recommended at the current time. Schedule for Implementation: None AFFORDABLE ACCESSORY RESIDENTIAL UNITS Meeting Synopsis: Accessory Dwelling units are discussed from time to time when a news article is shared with AHAC members. During the September and October 2021 meetings, the following comments were received from AHAC members: There is an opportunity to create affordable housing by exploring the idea of allowing accessory dwellings in the Estates area (eastern Collier Co). It appears Pasco decided to explore the idea in 2018, while Sarasota seemed non -committal but perhaps willing to review the idea and Palm Beach allows it. I'd be interested to know where Pasco and Sarasota are on the topic at this time. Developing accessory dwelling units, while useful, are likely to be significant only for the ranchette properties in the county. The existing four units per acre properties which comprise most neighborhoods in the county aren't big enough to have space for these residences Existing Strategy: Collier County does not allow for the rental of Accessory Dwelling Units (ADUs) LDC Section 5.03.03. The County only allows construction of "Guesthouses" on large single family lots of with a minimum lot size of 43,560 square feet. AHAC Recommendation: There is no consensus at the present time on this issue, but Accessory Dwelling Units 5 Packet Pg. 1712 16.D.11.a should come back to AHAC at a future date with more information on Pasco, Sarasota, and Palm Beach counties and the City of Rockledge "cottage homes". Schedule for Implementation: Additional information and AHAC discussion should occur in the second quarter of 2022. FLEXIBLE LOT CONFIGURATIONS Meeting Synopsis: This strategy was discussed extensively with the adoption of the 2017 Community Housing Plan. At that time, it was recommended that the County consider adopting some elements of "smart code". Through this process, amendments were made to the LDC in February 2021 with the adoption of Ord. 2021-05. Existing Strategy: Zero lot line development is allowed in Planned Unit Development (PUDs) and as a Conditional Use under Cluster Housing. Recently Ordinance 2021-05 clarified that Cluster Development of housing that is affordable does not require a Conditional Use in the RMF-6 Zoning District but is allowed by right. AHAC Recommendation: No new recommendations at the present time. Schedule for Implementation: None MODIFICATION OF STREET REQUIREMENTS Meeting Synopsis: As part of the regulatory relief proposed in the 2017 Community Housing Plan, modifications to street requirements have been discussed in 2019-2021. Existing Strategy: Historically, street requirements for affordable housing developments are considered, on a case -by -case basis, as deviations in the PUD approval process or variances in the conventional zoning process In February 2021, Ordinance 2021-05 added a new section to the LDC to allow design deviations for housing that is affordable, including modifications to internal, privately maintained roadways and sidewalks. AHAC Recommendation: No new recommendations at the present time. Schedule for Implementation: None PROCESS OF ONGOING REVIEW Meeting Synopsis: AHAC discussions on this topic included the following comments: Ongoing implementation and enforcement for new processes and LDC require permanent dedicated County staff. Any changes made will require monitoring to ensure the rules continue to be followed. In addition, educating and promoting a favorable environment for developers and builders will draw more partners into working in the County. Closer coordination between GMD, zoning, planning and CHS is critical for the success of process changes and approval for developments. The silos currently in place need to be broken down. The new coordination created will reduce or eliminate many of the repeated review cycles which are required today. Existing Strategy: Community & Human Services staff monitor the BCC, Planning Commission and Development Services Advisory Committee (DSAC) meetings regarding issues that may impact housing affordability in Collier County. AHAC Recommendation: No changes are purposed at this time. Schedule for Implementation: None PUBLIC LAND INVENTORY Meeting Synopsis: Public lands discussion has occurred regularly at AHAC meetings since 2018. This is a topic of 11 Packet Pg. 1713 16.D.11.a great interest to AHAC members. Existing Strategy: The County's Real Property office maintains a list of county owned properties as required by FS 125.379. This inventory is circulated to County Departments for review and determination if properties are needed to implement Department operations or program mandates. Available properties are presented to the BCC and advertised for sale in the local newspaper. In 2018, two County owned parcels known as Bembridge and Manatee were part of a Request for Information (RFI) process with multiple developers submitting proposals for the development of the 5-acre Bembridge site. In 2019, through an ITN process, the County selected McDowell Housing Partners to construct 82 units of affordable rental housing. During 2018-2019, the BCC decided not to move forward with proposals for the Manatee site. In 2019, the County acquired the defunct Golden Gate Golf Course. In 2020 through an ITN process, the County selected Rural Neighborhoods, Inc to develop a portion (25+ acres) of this publicly owned property for affordable rental housing for seniors, veterans, and Essential Service Personnel (ESP). The Developers of both parcels have entered a 99-year land lease with the County. AHAC Recommendation: AHAC members have discussed revisiting the Manatee property at a future date. The Committee provided a letter to the County Commissioners requesting that they reestablish the joint Parks and Recreation & AHAC subcommittee to review the feasibility of co -locating a park and housing that is affordable on this large parcel. The BCC adopted Resolution 2018-39 to encourage the co -location of public facilities and housing that is affordable. Schedule for Implementation: AHAC will continue to request meetings with the BCC, Parks officials and advisory board to discuss the Manatee property. SUPPORT OF DEVELOPMENT NEAR TRANSPORTATION HUBS Meeting Synopsis: Discussed during the spring and summer of 2021 as part of the consultant's, Johnson Engineering, regulatory relief, and development standards modifications to the LDC. Existing Strategy: This issue was reviewed during the development of the 2017 CHP with recommendations for the County to consider integration of bus routes (CAT) with affordable housing locations, development of Strategic Opportunity Sites and higher housing densities in existing Activity Centers. AHAC Recommendation: Approve the recommended new policy for the Transportation Element to prioritize higher density along transit corridors ranging from 13 du/ac to 25 du/ac. Schedule for Implementation: This recommendation is currently under staff review and is anticipated to be heard by the Planning Commission and BCC during the first quarter of 2022. 7 Packet Pg. 1714