Fort Walton Beach Council agenda — 06-08-2010 Regular — reading text

authorizing the transfer of the property to the Fort Walton Beach Housing Authority for use as affordable housing. 1. 3. The ordinance specified a distribution of housing units with forty ( 40) units designated for residents earning between eighty and one -hundred -twenty percent ( 80 -120 %) of the area median income and the remaining one -hundred -sixty ( 160) units reserved for residents earning sixty (60) percent of the area median income. 2. DISCUSSION: 2. 1. In 2009, the funding source for the Sound Side affordable housing development changed from Fannie Mae and Freddie Mac tax exempt bonds to a conventional U.S. Department of Housing and Urban Development ( HUD) loan, changing the distribution requirement. 2. 2. The current, more stringent, unit distribution creates an environment that could, under the current financing structure, render the project financially unfeasible. The market study completed earlier this year showed that the project would be successful, if allowed to operate at the guidelines established by HUD. 2. 3. Ordinance No. 1833 revises the housing unit distribution by designating all 200 units to be inhabited by residents earning up to one -hundred -twenty percent ( 120 %) of the area median income. This revision is consistent with the City' s intent to provide affordable housing, while also allowing the market to support the project. 43  2. 4. Ordinance No 1833 was heard before the Municipal Planning Board on June 3, 2010. 3. FINANCIAL INFORMATION: 3. 1. There is no financial impact from Ordinance No. 1833. 4. RECOMMENDATION: 4. 1. Staff recommends that the City Council review and approve Ordinance No. 1833 to amend the distribution of units listed in the transfer of City -owned property to the Fort Walton Beach Housing Authority for the Sound Side affordable housing development to allow residents of all 200 units to earn up to 120 percent of the area median income, which is consistent with the requirements from HUD. 5. ATTACHMENTS: 5. 1. Ordinance No. 1833 6. SIGNATURE BLOCK: 6. 1 Submitted By: y.,- ...._ ...... _....... Timothy Bolduc, CBO, BCA, Building Official 6. 2 Reviewed and Concur: Michael D. Beedie, P. E. Engine Utility Services Director 6. 3 Reviewed for Agenda: ert T. Mearns ty Manager 44  CITY COUNCIL MEETING June 8, 2010 Ordinance on First Reading Ordinance No. 1834 Revision of Sound Side Planned Unit Development. Synopsis: Amends the housing unit distribution up to 120% ofmedian income Agenda Item Number: 11. 2  I ORDINANCE 1834 2 3 AN ORDINANCE OF THE CITY OF FORT WALTON BEACH, 4 PROVIDING FOR AUTHORITY & INTENT; AMENDING SECTION 5 3, SECTION 6, AND SECTION 7 ORDINANCE 1762; OF 6 PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; 7 PROVIDING AN EFFECTIVE DATE. 8 9 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT 10 WALTON BEACH, FLORIDA, AS FOLLOWS: 11 12 SECTION 1. Authority & Intent 13 A. The authority for enactment of this ordinance is pursuant to 14 chapters 166 and 177, Florida Statutes, section 2, City Charter, and chapter 15 12. 47 of the City's Land Development Code. 16 17 B. Ordinance 1762 was adopted on August 20, 2008, for the Sound 18 Side Planned Unit Development. This ordinance is intended to amend certain 19 sections of Ordinance 1762 to revise the distribution of units by income level as 20 specified in the Planned Unit Development. 21 22 SECTION 2. Amendment of Ordinance 1762 23 24 A. Section 3 Findings is hereby amended as follows: 25 26 A. The Sound Side Planned Unit Development is an affordable 27 housing development consisting of 200 residential units, a club 28 house, recreational amenities and a leasing office. The owner shall 29 provide for a continuous period of fifty ( 50) years from the date that 30 the first unit in the development is occupied, and the owner agrees 31 that: 32 33 34 Rt shall be FeRted to family households with househnid 35 0 36 MediaR IRG9Fne3 37 38 Q4 LL the units within the Development shall be rented 39 to family households with household income less than or equal to 40 one -hundred -twenty ( 120 %) percent of the Area Median Income. 41 42 B. Section 6 Plat of Subject Property is hereby amended as follows; 43 44 The subject property shall be platted as " Sound Side 45 Apartment Homes" a Planned Unit Development. The plat shall 46 comply with the provisions of chapter 177, Florida Statutes ( 2007) 1 45  47 and sections 12. 62. 01, et seq., and 12. 63. 01, et seq., of the City's 48 Land Development Code. The project's new address shall be 20 49 Carson Drive; SE, Fort Walton Beach, Florida. 50 51 C. Section 7 Adoption and conditions to Sound Side, A Planned Unit 52 Development is hereby amended as follows; 53 54 H. The Breakdown for unit distribution by income found on page 55 22, under dwelling types, will be used for a suggested guideline 56 The proiect will be an housing proiect and shall be affordable 57 rented to familv households with household income less than or 58 equal to one -hundred- twenty ( 120 %I 59 60 61 SECTION 3. CONFLICTING PROVISIONS 62 If any other ordinance, or parts of any other ordinance, or provision of the 63 Land Development Code are in conflict with this ordinance, the provisions of this 64 ordinance shall prevail. 65 66 67 SECTION 4. SEVERABILITY 68 Should any section, part, or provision of this ordinance be declared by a 69 court of competent jurisdiction to be invalid, such decision shall not affect the 70 validity of the remainder, as a whole or any part, other than that part declared to 71 be invalid. 72 73 SECTION 5. EFFECTIVE DATE 74 This Ordinance is effective upon by the approval City Council and 75 signature of the Mayor. 76 77 78 79 80 Adopted Mike Anderson, Mayor 81 82 83 84 Attest: 85 Approved for form and legal sufficiency. 86 87 88 Helen Spencer, City Clerk Toni L. Craig, City Attorney 2 46  CITY OF FORT WALTON BEACH MEMORANDUM To: Robert T. Mearns, City Manager From: Timothy Bolduc, C. B. O., Building Official Through: Michael D. Beedie, P. E., Engineering & Utility Services Director Date: May 25, 2010 Subject: Ordinance No. 1834 to Amend the Distribution of Units within the Sound Side Affordable Housing Development 1. BACKGROUND: 1. 1. City Council adopted Ordinance No. 1762 on October 28, 2008, approving the Planned Unit Development ( PUD) for Sound Side Apartment Homes. The development consists of the removal of 50 low- income public housing units and the construction of 200 affordable housing units in the Germany Terrace subdivision at Carson Drive SE and Third Street SE. 1. 2. The ordinance addresses the distribution of units based on the area median income of its residents. The distribution of units in the ordinance is separated into three categories, those residents making equal to or less than sixty ( 60 %) of the median income, and those residents making between sixty ( 60 %) and one -hundred -twenty percent ( 120 %) of the area median income. 2. DISCUSSION: 2. 1. In 2009, the funding source for the Sound Side affordable housing development changed from Fannie Mae and Freddie Mac tax exempt bonds to a conventional U.S. Department of Housing and Urban Development (HUD) loan, changing the distribution requirement. 2. 2. The current, more stringent, unit distribution creates an environment that could, under the current financing structure, render the project financially unfeasible. The market study completed earlier this year showed that the project would be successful, if allowed to operate at the guidelines established by HUD. 2. 3. Ordinance No. 1834 revises the housing unit distribution by designating all 200 units to be inhabited by residents earning up to one -hundred -twenty percent ( 120 %) of the area median income. This revision is consistent with the City' s intent to provide affordable housing, while also allowing the market to support the project. 47  2. 4. The Municipal Planning Board heard Ordinance No. 1834 on June 3, 2010. 3. FINANCIAL INFORMATION: 3. 1. There is no financial impact from Ordinance No. 1834. 4. RECOMMENDATION: 4. 1. Staff recommends that the City Council review and approve Ordinance No. 1834 to amend the distribution of units stated in the Planned Unit Development for the Sound Side affordable housing development to allow residents of all 200 units to earn up to 120 percent of the area median income, which is consistent with the requirements from HUD. 5. ATTACHMENTS: