SHIP - Affordable Housing Advisory Committee

City of Gainesville SHIP - Affordable Housing Advisory Committee Meeting AGENDA Date: Tuesday, November 14, 2023, 6:00 p.m. Location: Historic Thomas Center, Building B 306 NE 6th Avenue Gainesville, FL Jamie Bell, Aymee Cepeda, Mary Lou Hildreth, Saeed Khan, Reina Saco, Fred Schilffarth, Members: Belinda Smith, Octavia Washington, Charmaine Henry Alternate: Cynthia Chestnut If you have a disability and need an accommodation in order to participate in this meeting, please contact the Office of Equity and Inclusion at (352) 334-5051 at least two business days in advance. TTY (Text Telephone Telecommunication Device) users please call 711 (Florida Relay Service). For Speech to Speech (STS) relay, please call 1-877-955-5334. For STS Spanish relay, please call 1- 877-955-8773. For STS French Creole relay, please call 1-877-955-8707.  Pages A. CALL TO ORDER Agenda Statement: The City of Gainesville encourages civil public speech. Disruptive behavior is not permitted during City Commission and Advisory Board meetings. Please do not bring food, drinks, props, signs, posters, or similar materials into the meeting room. B. ADOPTION OF THE AGENDA C. APPROVAL OF THE MINUTES D. BUSINESS DISCUSSION ITEMS 2023-1019 Adoption of the 2023 Incentives and Recommendations 4 Report (B) Department: Housing and Community Development Description: The City’s Affordable Housing Advisory Committee (AHAC) is to adopt its 2023 Incentives and Recommendations Report (IRR) and authorize staff to submit the IRR to the City Commission. Fiscal Note: In order to continue to receive funding from the State’s SHIP Program, the State requires the City’s AHAC to adopt an IRR each year. Staff anticipates, at least $1,000,000.00 in SHIP allocations to the City for each of the next three Fiscal Years. Recommendation: The Affordable Housing Advisory Committee: 1) receive a presentation from staff; 2) receive public comments; 3) adopt the 2023 Incentive and Recommendations Report; and 4) authorize staff to submit the 2023 Incentive and Recommendations Report, on behalf of the Committee, to the City Commission. 2023-1042 Discussion of IRR Presentation to City Commission (NB) 61 Department: Housing and Community Development Description: The AHAC Chair is to designate a member to present the IRR to the City Commission Fiscal Note: N/A Recommendation: The Chair elect to present the Incentives and Recommendations Report to the City Commission or designate another member to do so. E. PUBLIC COMMENT F. MEMBER COMMENT G. NEXT MEETING DATE Page 2 of 61 H. ADJOURNMENT Page 3 of 61  City of Gainesville Agenda Item Report File Number: 2023-1019 Agenda Date: November 14, 2023 Department: Housing & Community Development Title: 2023-1019 Adoption of the 2023 Incentives and Recommendations Report (B) Department: Housing and Community Development Description: The City’s Affordable Housing Advisory Committee (AHAC) is to adopt its 2023 Incentives and Recommendations Report (IRR) and authorize staff to submit the IRR to the City Commission. Fiscal Note: In order to continue to receive funding from the State’s SHIP Program, the State requires the City’s AHAC to adopt an IRR each year. Staff anticipates, at least $1,000,000.00 in SHIP allocations to the City for each of the next three Fiscal Years. Explanation: Each year, to receive State Housing Initiative Partnership (SHIP) Program funding, State law requires the City’s Affordable Housing Advisory Committee (AHAC) to review the City’s regulations, incentives, plans, policies, and procedures that impact the cost of housing and/or the provision of affordable housing. Based on that review, the AHAC must develop and present the Incentives and Recommendations Report (IRR) to the City Commission. According to State Statutes, this is the primary purpose of the AHAC. The City must submit the IRR to State by December 31st of each year. The AHAC has created an IRR, which is attached to this agenda report. In developing this report, the AHAC has considered citizen and Committee input provided at AHAC meetings beginning in February 2023. Section 420.9076(4) of the Florida Statutes identifies eleven (11) incentives that the IRR must address. The IRR also may recommend other affordable housing incentives, regulations, and/or strategies identified by the AHAC. Strategic Connection: ☐ Goal 1: Equitable Community ☐ Goal 2: More Sustainable Community ☒ Goal 3: A Great Place to Live and Experience ☐ Goal 4: Resilient Local Economy Page 4 of 61  ☐ Goal 5: “Best in Class” Neighbor Services Recommendation: The Affordable Housing Advisory Committee: 1) receive a presentation from staff; 2) receive public comments; 3) adopt the 2023 Incentive and Recommendations Report; and 4) authorize staff to submit the 2023 Incentive and Recommendations Report, on behalf of the Committee, to the City Commission. Page 5 of 61  2023-1019A Incentives and Recommendations Report (IRR) Developed and Presented by the Affordable Housing Advisory Committee (AHAC) November 14, 2023 Page 6 of 61 Purpose • In order to receive SHIP Program funds, the State requires the City to submit an IRR • The IRR is a review of local regulations and incentives that impact the cost of building housing • The IRR is developed by the AHAC & includes their recommendations to the City Commission Page 7 of 61 SHIP Overview • 1992 Sadowski Affordable Housing Act – Chapter 420, Part VII, Florida Statutes • State program and funding source • Funding source for housing programs – Documentary Stamp Tax on Real Estate Transactions – Collections increase when housing prices increase Page 8 of 61  SHIP Requirements • Annual Report • Local Housing Assistance Plan (LHAP) – Program Descriptions – Funding and Budgets – Adopted April 6, 2023 (3-year cycle) • Affordable Housing Advisory Committee (AHAC) • Incentives and Recommendations Report (IRR) – Annual – AHAC presents to City Commission – City Commission accepts &61 sends to FHFC (State) Page 9 of City Program • Homeowner Repair – Less expensive than new – Keeps people in their home • Facilitates aging-in-place – Maintain existing housing • Preserves and stabilizes neighborhoods • Down Payment Assistance – 1st time home buyers (builds wealth) • Mortgage Foreclosure Intervention • Homeowner & homebuyer counseling Page 10 of 61  IRR Overview • AHAC must review 11 incentives that impact the provision of affordable housing – Identified in Ch. 420, Florida Statutes – Focus on LDRs and Comprehensive Plan – Does the City provide these incentives for affordable housing? – Do City regulations unnecessarily increase housing costs? • AHAC may also recommend other strategies • City is not required to implement AHAC recommendations Page 11 of 61 Required to review 1. *Expediting processing of applications 2. *Requiring review of regulations & policies 3. Modifying impact fees 4. Allowing flexibility in densities 5. Reserving infrastructure capacity 6. Allowing accessory residential units 7. Reducing parking & setback requirements 8. Allowing flexible lot configurations (including zero lot line configurations) 9. Modifying street requirements 10. Inventory of locally owned land 11. Support housing developments near work, transportation & retail Page 12 of 61 Main Points • The AHAC has discussed these issues and topics all year. It is familiar with the context and purpose of the IRR • The AHAC has reached a high level of consensus regarding the IRR • Increase engagement with the Community – Meet people where they are – Continue to include AHAC • Educate community about the development process – Including zoning and land development regulations Page 13 of 61 Main Points • Move forward with Inclusionary Zoning – Coordinate with Alachua County – Continue to monitor and revise as needed • Continue to focus on home rehabilitation and weatherization Page 14 of 61 Main Points • Continue and increase focus on preserving the unique qualities of neighborhoods – Continue to focus on threatened or rapidly changing neighborhoods – Continue to study and implement anti- gentrification and anti-displacement measures • Recognize the importance of a reliable, effective, and equitable transportation system. Continue studying ways to improve the current system Page 15 of 61  Recommendation • Adopt the IRR and present it to the City Commission on December 7, 2023. Page 16 of 61 1. Expedited Reviews* • Mandatory Incentive* • The processing of permits or development orders for affordable housing faster than other projects • Currently, the Department of Sustainable Development (Planning and Building) expedites reviews of affordable housing projects – Section 30-3.45 • Recommendation: Continue; Study usage and thresholds Page 17 of 61 2. Review of Policies & Regulations* • Mandatory Incentive* • The establishment of a process by which the City considers, before adoption: – policies, procedures, ordinances, regulations, or plan provisions that might increase the cost of housing • Currently, City has implemented on-going review • Recommendation: Continue Page 18 of 61  3. Modifying Impact Fees • Lowering or waiving the fees for affordable housing • Paying the fees from another source – Such as ConnectFree (Resolution 2023-806) • Charged to new development to help fund infrastructure • Typically used for roads, parks, libraries, fire stations, police stations, utility plants & schools • Technically, the City does not impose Impact Fees • Recommendation: Not Applicable Page 19 of 61 4. Flexible Density • The opportunity to increase the number of units/acre – May reduce the cost/unit • Sometimes related to height and mass • Part of Inclusionary/Exclusionary Zoning Study Page 20 of 61 4. Flexible Density Page 21 of 61 4. Flexible Density • Recommendation: Work with Alachua County to develop inclusionary housing incentives and regulations Page 22 of 61 5. Reserving Infrastructure Capacity • For affordable housing • Currently, City monitors infrastructure capacity and infrastructure use for all development • Currently, City plans ahead for anticipated need • Currently, City invests in transportation projects to enhance mobility options – Including road, bike, pedestrian and transit • Recommendation: Continue Page 23 of 61 6. Accessory Residential Units • Small dwelling on the same lot as a primary single-family unit • Either attached to, or detached from, the primary unit • Also known as: – Mother-in-law apartments/suites – Garage Apartments – Accessory Dwelling Units (ADU) Page 24 of 61 6. Accessory Residential Units • Ordinance amended on September 3, 2020 – Allows in all residential zoning districts – Up to 2 per lot • 1 attached and 1 detached – Up to 850 square feet or 50% of primary structure – Must comply with zoning district standards • Including height and setbacks – Architectural design, character, style, and appearance must be consistent and compatible with the primary structure – May not be sold separately or as a condominium unless properly subdivided Page 25 of 61 6. Accessory Residential Units • Ordinance amended on September 3, 2020 • From June 2021 to July 2023, the City has received 42 Applications and issued 23 Certificates of Occupancy • Recommendation: – Continue monitoring number and location of applications – Develop “pre-approved” or “model” plans – Consider revolving loan fund for affordable units Page 26 of 61 7. Reduced Parking & Setback Requirements • Parking Requirements means the # of parking spaces, not the design or configuration of the spaces • Setback Requirements means the distance from building to property boundary Page 27 of 61 7. Reduced Parking & Setback Requirements • Currently, City allows reduced parking studies • Currently, City allows reduced parking for affordable housing • Currently, reduced setbacks require a variance for individual lots, or a Planned Development for a Subdivision – Provision of affordable housing is not a criteria • Recommendation: Allow reduced setbacks for subdivisions only with the provision of affordable housing Page 28 of 61  8. Flexible Lot Configurations • Including 0-lot line layout – Bldgs on property lines – More usable land – Not allowed w/out special approval • Currently, affordable housing isn’t a justification • Recommendation: Make providing affordable housing a justification for modifying subdivision requirements Page 29 of 61 9. Reduced Street Requirements • Refers to the width and design of streets • Public roads are regulated by the State • Currently, standards are modest and some flexibility exists • Opportunity to discuss additional flexibility for the provision of affordable housing – For some private streets – e.g., allowing gravel, instead of asphalt, for some private streets • Recommendation: Maintain current requirements Page 30 of 61  10. Public Land Inventory • Publicly owned land may be appropriate for affordable or other type of needed housing • Currently, City maintains an Inventory • Currently, City makes surplus & escheated land available to both non-profit and for-profit affordable housing developers • Recommendation: Continue, expand Page 31 of 61  11. Land Use Mix • Are there opportunities (zoning) to facilitate affordable housing & higher residential densities – along major transportation corridors and bus routes? – near employment centers, retail, services, parks, etc.? • See the interactive map on the Department of Sustainable Development’s website • Recommendation: Continue existing mix/pattern Page 32 of 61 Page 33 of 61 12. Employer Assisted Housing • Recommended in Housing Action Plan • Partner with large employers • Long-term implementation time-frames • Recommendation: Study examples from Washington, DC and other jurisdictions Page 34 of 61 13. Promote Homeowner Repair Program • Less expensive than building new housing • Preserves existing housing • Stabilizes neighborhoods • Facilitates aging in place • Federal, State & Local funds may be available • Recommendation: Continue to fund existing program; Explore ways to promote the program by reaching out to local institutions such as neighborhood groups, social service organizations, religious institutions and others Page 35 of 61 14. Engagement & Education • Meet people where they are • Include AHAC • Develop a Planning & development Outreach Program – Imagine GNV, Chapter 8-Our City Government • Continue Pre-Application Neighborhood Workshops Page 36 of 61 15. Preserve Changing Neighborhoods • Continue to implement, study, & evaluate existing programs • Focus on areas most at risk • Study other Cities – Including Milwaukee and Minneapolis/St. Paul Page 37 of 61 16. Transportation System • Recognize the importance of a reliable, effective, and equitable transportation system – Includes cars, buses, bikes, and pedestrians – Impacts location and price of housing – Impacts overall quality of life • Continue to study ways to improve Page 38 of 61  2023-1019B 2023 Incentives and Recommendations Report Developed by the Affordable Housing Advisory Committee For the State Housing Initiatives Partnership Program November 14, 2023 Legislative File #2023-1019 Page 39 of 61  TABLE OF CONTENTS I. Background ………………………………………………………………………………………………………………..1 Composition of AHAC ……………………………………………………………………………………………1 AHAC Mandate ……………………………………………………………………………………………………..2 General Comments ……………………………………………………………………………………………….3 II. Citizen Engagement …………………………………………………………………………………………………..5 III. Incentives & Recommendations …………………………….…………………………………………………..6 Expedited Review ………………………………………………………………………………………………….6 Modification of Impact Fees ………………………………………………………………………………….7 Flexible Density ……………………………………………………………………………………………………..7 Reservation of Infrastructure …………………………………………………………………………………8 Accessory Residential Units ……………………………………………..…………………………...………9 Parking and Setback Requirements ……………………………………………………………………..10 Flexible Lot Configurations …………………………………………………………………………………..11 Modification of Street Requirements …………………………………………………………………..11 Review of Policies that Increase the Cost of Housing ……………………………………………12 Inventory of City Owned Land ………………………………………………………………………………12 Support of Affordable Housing Near Transportation and Employment Centers ……13 IV. Additional Recommendations …………………………………………………………………………..……….13 Consider Employer Assisted Housing Programs ……………………………………………..……..13 Facilitate Homeowner Repair Program …………………………………………………………..…….14 Enhanced Community Engagement and Education ……………………………………………….14 Study Anti-Displacement and Anti-Gentrification Plan ……………………………….…..…….15 Reliable, Effective, and Equitable Transportation System 16 V. City Commission Consideration ……………………………………………………………………….………..16 VI. Attachments ………………………………………………………………………………………………….…………..16 2023 HUD Income Limits ………………………………………………………………………………………17 Generalized Zoning Map …………………………………………………………….…………………………18 AHAC’s Inclusionary Zoning Recommendations ……………………………………………..…….19 Page 40 of 61  City of Gainesville Affordable Housing Advisory Committee 2023 Incentives and Recommendations Report I. Background Chapter 420, Part VII, of the Florida Statutes requires that the City of Gainesville establish an Affordable Housing Advisory Committee (AHAC); and Section 14 of the City Code actually establishes the Committee. The primary purpose of the AHAC is to recommend specific initiatives and incentives to encourage or facilitate affordable housing within the City. The State mandates similar committees for each City and County that receive state funds under the State Housing Initiatives Partnership (SHIP) Program. Within this report, the terms “Low-Income, Very-Low-Income and Extremely-Low-Income” occur several times. While the affordability level of units built with any of the various incentives discussed, must be determined by the Gainesville community, in this report, the terms are defined by the U.S. Department of Housing and Urban Develop Income Limits for 2023. Those limits are shown in the chart contained in Attachment 1. Generally, when this report mentions “affordable housing,” it is referring to housing that is affordable to low- income households, that is households whose combined income is equal to or less than 80% of the Gainesville Area Median, adjusted for family size. More specifically, in this report, “affordable housing” means housing, where the total monthly cost of that housing (including taxes, insurance, utilities, and property owner association fees) is less than 30 percent of the household’s total monthly income. Composition of AHAC The AHAC may consist of nine citizens appointed by the City Commission. One of those citizens must be a City Commissioner, while the remaining eight AHAC members must represent at least six of the following eleven categories: 1. a citizen who is in the home building industry, including affordable housing; 2. a citizen who is in the banking or mortgage banking industry related to affordable housing; 3. a citizen who represents labor engaged in home building, including affordable housing; 4. a citizen who advocates for affordable housing for low-income persons; 5. a citizen who is a for-profit provider of affordable housing; 6. a citizen who is a not-for-profit provider of affordable housing; 7. a citizen who is a real estate professional related to affordable housing; 8. a citizen who serves on the local planning agency; 9. a citizen who resides in the City of Gainesville; 10. a citizen who represents employers within the City of Gainesville; and 11. a citizen who represents essential services personnel. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 1 of 20 Adopted November 14, 2023 Page 41 of 61 AHAC Mandate For the City to remain eligible to receive SHIP Program funds, the AHAC shall annually review the City’s comprehensive plan, land development regulations, ordinances, policies and procedures. Based on that review, the AHAC shall submit an Incentives and Recommendations Report (IRR) to the City Commission. That report shall recommend specific actions or initiatives to encourage or facilitate affordable housing, while protecting the ability of property to appreciate. The recommendations may include the modification or repeal of existing policies, procedures, ordinances, regulations, or plan provisions. Modifications may include exceptions for affordable housing. The recommendations may also include the adoption of new policies, procedures, regulations, ordinances, or plan provisions. Additionally, the AHAC report shall recommend and evaluate the implementation of local housing incentive strategies in the following areas: 1) Expedited processing of approvals of development orders or development permits issued by the City for affordable housing projects, including without limitation, building permits, zoning permits, subdivision approvals, rezonings, certifications, special exceptions, variances, or any other official action of local government having the effect of permitting the development of land for affordable housing. 2) Modification of impact fee requirements, including reduction or waiver of fees and alternative methods of fee payment for affordable housing. 3) Allowance of flexibility in densities for affordable housing. 4) Reservation of infrastructure capacity for housing for low- and very-low-income persons. 5) Allowance of affordable accessory residential units in residential zoning districts. 6) Reduction of parking and setback requirements for affordable housing. 7) Allowance of flexible lot configurations, including zero lot line configurations, for affordable housing. 8) Modification of street requirements for affordable housing. 9) Establishment of a process by which the City considers the impact on the cost of housing before adoption of policies, procedures, ordinances, regulations or plan provisions. 10) Preparation of a printed inventory of locally owned public lands suitable for affordable housing. 11) Support of affordable housing development near transportation hubs and major employment centers and mixed-use developments. 12) Other affordable housing incentives identified by the advisory committee. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 2 of 20 Adopted November 14, 2023 Page 42 of 61 General Comments To begin to address its housing needs, the community should recognize the following factors: 1. Many people discuss housing problems, including the need for more affordable housing, as if they are the same as equity or disparity problems. In fact, they are related, but not the same. Housing problems are a component of, not the whole of, the Gainesville/Alachua County Community’s equity and disparity problems. Providing more affordable housing can help alleviate, but not eliminate, the problem of racial, economic, educational, health, geographic and other disparities. Experience and data, however, suggest that a comprehensive approach, addressing many factors, is needed to even begin dealing with these problems. Those factors include economic development, the educational system, the justice system, the health care system and other factors. 2. The community’s housing problems go beyond just the high cost of housing and the lack of affordable housing. These problems include the lack of housing choice (including size, type, cost, and location), the condition of housing, and the loss of community history and character. 3. There is no quick fix. Any solution will take time. This includes changing community attitudes about housing, changing land use patterns, changing land development regulations, and actually permitting and constructing residential buildings. The City must consider realistic timeframes for changes. 4. Home ownership is a proven method to build wealth in individuals, and in a community. For that reason, homeownership should be encouraged and promoted. However, to truly meet the community’s needs, other viable, affordable options (i.e., rental housing) must also be available. 5. Governments and non-profits cannot solve the community’s housing problems. Even the combined resources of the Federal, State, County and City Governments are insufficient. In other words, the community needs to find a way to engage market forces and to encourage private sector investment in affordable housing. 6. The community has many options available to help address its housing problems. Although none of those options, by itself, will solve the problem. Each option can contribute to the solution. In other words, the community needs to use all the “tools” in its “toolbox” to address housing problems. Historically, however, the Gainesville/Alachua County community has used some, but not all of the available tools. 7. The community has utilized tools such as government funding programs, including LIHTC, SAIL, SHIP, CDBG and HOME; and governmental agencies such as the Gainesville and Alachua County Housing Authorities. Nonprofit organizations (often partially funded by government programs) such as Habitat for Humanity and Neighborhood Housing Development Corporation, have also been an City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 3 of 20 Adopted November 14, 2023 Page 43 of 61  important tool used to provide affordable housing in the Gainesville/Alachua County community. In fact, if it chose to, the community could increase its reliance on these tools by increasing private donations or by approving additional local taxes, fees and/or bonding to increase funding for affordable housing. 8. Funding for government funded housing programs is inconsistent and insufficient to meet the demand for affordable housing. In Gainesville and Alachua County, local government administered programs include home repair, home replacement, down payment assistance, mortgage foreclosure intervention, rental assistance, eviction prevention, and counseling and training (for more information, visit the City’s Housing and Community Development Division website at https://www.gainesvillefl.gov/Government- Pages/Government/Departments/Housing-Community-Development or the County’s Housing Programs website at https://alachuacounty.us/Depts/CSS/House/Pages/housing.aspx). Some federal and state programs (e.g., Low-Income Housing Tax Credits and State Apartment Incentive Loan) occasionally subsidize the development of large affordable rental housing complexes, usually 60 to 200 units (for more information, visit the Florida Housing Finance Corporation’s website at https://www.floridahousing.org/home). Smaller nonprofits build 10 to 20 single family homes per year. The two Public Housing Authorities provide approximately 900 units of public housing and nearly 2,800 housing vouchers each year. 9. Besides funding programs, the City and County can also use regulatory incentives and requirements such as inclusionary zoning to encourage the private for-profit sector to build affordable housing. Those incentives and regulations can include flexible zoning that allows density and height bonuses in exchange for providing affordable housing, and planned development requirements for the provision of affordable housing. While still funding nonprofit organizations and government programs, the City and County have begun to study the potential costs and benefits of implementing inclusionary zoning policies. Essentially, the City has not yet determined what combination of incentives and regulations are necessary for the private sector to agree to include affordable housing in new developments. That is because the City has almost never offered any such incentives. Although the use of these incentives and regulations is often discussed in the City’s Comprehensive Plan, implementing those incentives requires adopting land development regulations. Even in the few instances when incentives have been included in the land development regulations, these provisions are seldom used or re-evaluated (See the Density Bonus Manual). To better evaluate the possibility of using regulatory incentives and requirements, the City retained a consultant to study and recommend an Inclusionary/Exclusionary Housing Policy. That report was presented to the City Commission on January 6, 2022, and provides a foundation for the City’s current Inclusionary Zoning initiative. 10. In May 2019, the Florida Legislature passed House Bill 7103 (HB7103). That bill amended existing statutes regarding Inclusionary Zoning (IZ). IZ is the requirement that a portion of each new residential development be affordable. Specifically, HB7103 mandated that in order for a City or County to require that a development contain affordable units, the City or County must use incentives to “fully offset all costs” to a developer associated with creating those affordable units. In other words, prior to HB7103, Cities and Counties had the option of requiring IZ without providing any incentives to developers. HB7103, added the requirement that Cities and Counties that mandate IZ, also provided incentives to City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 4 of 20 Adopted November 14, 2023 Page 44 of 61  developers. Those incentives may include (but are not limited to) density bonuses, reduced or waived fees, or other incentives. 11. Our community’s reliance on nonprofit organizations and government funding programs has resulted in few affordable housing options for most low-income residents. Those options include large rental apartment complexes (often located East of Main Street, where land values are lower), and older homes whose “life” has been extended through a home repair program. In contrast, a well-designed incentive program could result in a portion of many new developments, all around the City, housing low-income households. In other words, more location choices for low-income residents. 12. Many of the issues related to land development in general, and housing and affordable housing in particular, can be complicated and confusing. The same term often has different meanings to different people. City and County representatives have a responsibility to try to communicate in simple, clear language. The Community, in general, would benefit from a better understanding of the entire development process. While methods such as providing additional funds or providing more support to nonprofits can be useful ways to create affordable housing, they are not within the scope of this report. This document focuses on regulatory incentives and regulations that impact the cost of housing and the availability of affordable housing. To that end, the AHAC aims to identify ways to encourage affordable housing that are cost effective, environmentally sound, socially equitable and supportive of broad community goals. Beyond this report, the AHAC will seek to continue further study and dialogue on this subject. We welcome the input, ideas and suggestions of our entire community in this endeavor. II. Citizen Engagement AHAC provided citizens and stakeholders several opportunities to contribute to the development of this report. Those opportunities began with two AHAC public meetings, at which AHAC discussed incentives and recommendations to address housing and housing related problems. AHAC began each of these meetings at 6:00 p.m. and ended them between 7:30 p.m. and 8:00 p.m. These meeting were conducted on September 12, 2023 and October 10, 2023 at the Thomas Center, Building B, 306 NE 6th Avenue. The City used several strategies to inform the public of these meetings. Perhaps most importantly, the City developed a direct email distribution list consisting of approximately 220 addresses to personally invite people to the October meeting. That email distribution list included neighborhood representatives, nonprofit organizations, the media, the development community, lenders, City staff, members of other advisory boards, individuals who previously requested to be notified or had expressed interest in housing issues, and others. The email for the October meeting included a Draft of the City’s 2023 IRR. In addition, the October 4, 2023 edition of GNV News (a City-produced newsletter with approximately 10,000 subscribers) contained a notice of the City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 5 of 20 Adopted November 14, 2023 Page 45 of 61 meeting. Finally, the City posts notices of all AHAC meetings on the City’s website and various social media platforms. Subsequently, on November 14, 2023, the AHAC held a public hearing to receive public input regarding the IRR. The AHAC’s IRR was presented at the public hearing and, after receiving public comment, approved by the AHAC. In addition to the public notice methods used for the two previous public meetings, the public hearing was noticed as a public hearing in the Gainesville Sun. III. Incentives & Recommendations 1) The processing of approvals of development orders or permits, as defined in s.163.3164 for affordable housing projects is expedited to a greater degree than other projects. Discussion Since October 2022, Section 30-3.45 (Table III) of the City’s Land Development Code has allowed new multi-family developments that meet certain criteria to be approved by staff, rather than being reviewed by the Development Review Board or the Plan Board. The criteria are that the project must contain 51 or more units, at least 15% of which are reserved for households with incomes of 80% AMI or less, and the project does not request any variances. This is important because many housing developers, including affordable housing developers, cite the delay and uncertainty of taking projects to review boards for approval as adding significant cost to the development process. Many such boards meet monthly and often have difficulty obtaining a quorum. Since the changes to Section 30-3.45, only two projects that meet the criteria to take advantage of those changes have applied for development plan approval. Despite the potential reduction in delay and uncertainty, the developers of both of those projects chose to build 100% market rate projects, rather than include the 80% AMI units. In addition, the City’s Building Department offers some modest incentives to developers of affordable housing. Those incentives begin with the City’s Housing and Community Development (HCD) Department. HCD staff certifies as “Affordable Housing Projects” residential projects that meet at least one of the following criteria: 1. they are funded by SHIP, CDBG, HOME, The American Rescue Plan Act, Low-Income Housing Tax Credits, the State Apartment Incentive Loan Program, or similar programs; 2. they are built by nonprofit affordable housing providers like Habitat for Humanity and Neighborhood Housing Development Corporation; 3. they are built by a governmental or quasi-governmental agency that provides affordable housing (like a Public Housing Authority); or 4. they have executed a legally binding document (e.g., a deed restriction) ensuring that the project will provide affordable housing. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 6 of 20 Adopted November 14, 2023 Page 46 of 61  When reviewing and inspecting HCD-certified Affordable Housing Projects, the City’s Building Department moves those projects to “the front of the line,” and reduces the maximum review period from 15 to 7 days, thus expediting them to a greater degree than other projects. AHAC Recommendation The Planning and Building Departments should continue their current programs to expedite affordable housing projects, including keeping track of the number of projects that take advantage of, or do not take advantage of, these incentives. In addition, the City should study the advantages and disadvantages of reducing the thresholds needed to move a project from board review to staff review. Currently, for multi-family projects, those thresholds are that the project must contain 51 or more units, at least 15% of which are reserved for households with incomes of 80% AMI or less. 2) Modification of impact fee requirements including reduction or waiver of fees and alternative methods of fee payment. Discussion The City does not require the payment of impact fees for new development. However, the GRU requires the payment of connection charges in order to connect to their centralized water and wastewater systems. For residential development, those connection charges can be thousands of dollars per unit. On September 7, 2023, the City Commission approved Resolution Number 2023-806 which governs the City’s ConnectFree Program. That program generates revenues for that can be used to subsidize the costs of connecting to GRU water and wastewater systems. Resolution Number 2023-806 clarifies that the ConnectFree Program can pay water and wastewater connection charges for new affordable housing units. AHAC Recommendation Consistent with Resolution 2023-806, the City should use ConnectFree revenue to pay water and wastewater connection charges for new affordable housing units. 3) Allowance of flexibility in densities for affordable housing. Discussion By most measures (including age, wealth, income, and household size) Gainesville is a diverse community with diverse types of households and diverse housing needs. Therefore, to effectively serve its market, Gainesville needs a diverse housing stock, including (but not limited to) the following housing types:  Detached single-family homes on large lots;  Detached single-family homes on small lots;  Mobile homes;  Courtyard homes;  Accessory dwelling units;  Small complexes of attached homes (2-10 units);  Townhomes; and  Multiple-family complexes. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 7 of 20 Adopted November 14, 2023 Page 47 of 61  Although the City’s current Land Development Regulations (LDRs) allow a wide variety of densities, and housing types, those LDRs limit most of the City’s residential land area to detached single-family homes (See Attachment 2). The EZ/IZ Study (completed in December 2021) noted that, “In Gainesville, 63% of residential parcels allow for the construction of only one housing unit.” As detailed in the study, that development pattern incentivizes building larger, more expensive homes and can result in units that meet the needs of, and are affordable to, higher income households, but is not compatible to the development of housing that is affordable to the community’s moderate- and low-income residents. In other words, in most of Gainesville, it is not economically feasible to build housing types other than detached single- family homes, and luxury student apartments. Therefore, for a large part of the community, the existing and developing housing stock does not match the community’s housing needs, particularly for its lower income residents. Nevertheless, Gainesville’s experience with raising density limits has been mixed. Generally, increasing density limits increases development potential and boosts property values, both of which can spur development and redevelopment. While there are several benefits of development and redevelopment, they can increase the cost of both land and housing, and reduce the amount of affordable housing. This often results in the displacement of low-income renters and property owners. At the same time, increased density limits are often a windfall for developers and large property owners. To address this issue, the City commissioned the previously mentioned EZ/IZ Study, which contains recommendations regarding both reducing exclusionary zoning and creating inclusionary zoning. To date, the City has not been able to implement most of the exclusionary zoning recommendations. The exception is the increased allowances for accessory dwelling units, which actually precedes the completion of the EZ/IZ Study. Currently, the City is reviewing several proposals to implement inclusionary zoning requirements. Attachment 3 is a chart containing AHAC’s recommendations regarding those proposals. AHAC Recommendation The City should continue to work with the County to implement inclusionary zoning incentives and requirements. As part of that implementation, the City should continue to emphasize community engagement and education. 4) Reservation of infrastructure capacity for housing for low- and very-low-income persons. Discussion The City plans ahead to ensure that there is adequate infrastructure capacity to accommodate all new development. Part of that planning includes extensive coordination with various Federal, State, Regional and County Agencies. At present, GRU maintains sufficient water and wastewater treatment capacity. Every new development is required to demonstrate that it provides the minimum stormwater retention level of service through either on-site retention or a coordinated system. For automobiles, nearly all roads in the City operate at or better than the adopted level of service. The Transportation Mobility Program Area allows for development, such as urban redevelopment and infill development, to occur along roads that operate below their adopted level of service. Although the City may permit the development, the exemption does not relieve the developer from various improvements stated in the Transportation Mobility Element of the Comprehensive Plan. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 8 of 20 Adopted November 14, 2023 Page 48 of 61  AHAC Recommendation Continue to monitor current and projected infrastructure needs. Identify and utilize adequate funding sources to enhance network connectivity and integration of transportation modes to meet future housing needs and enhance mobility and accessibility. 5) Allowance of accessory residential units in residential zoning districts. Discussion The City’s land development code defines an Accessory Dwelling Unit (ADU) as “an independent self- contained dwelling unit with kitchen and bathroom facilities, on the same lot as an associated primary use or structure. An ADU may be within, attached to, or detached from a primary structure.” ADUs, are essentially the same as accessory residential units. On September 3, 2020, the City Commission adopted Ordinance #190988, which increased allowances for ADUs in several ways, including removing most of the restrictions on ADUs in single family zoning districts, and allowing up to two ADUs, with some restrictions, on a lot. ADUs cannot be required to be affordable to low-income households. In fact, sometimes they are not affordable to low-income households. Nevertheless, they were historically an effective means to provide mixed-income housing widely dispersed throughout the City. In fact, some ADUs currently exist in several of the City’s older single-family neighborhoods. A potential benefit of ADUs is that they can provide affordable housing at little government cost, in neighborhoods where it is otherwise costly or impractical to create new affordable housing. These include neighborhoods that are close to employment centers, healthcare services, financial services, recreational services, educational services, and transportation services. ADUs can also generate a revenue stream to existing homeowners, making their home ownership more affordable and funding better property maintenance (as long as the homeowner that built the ADU maintains ownership of the property). Traditionally, many Gainesville residents have had major concerns about the impacts of ADUs on neighborhood quality of life. Those concerns are greatest in the neighborhoods close to the University of Florida, where many anticipate that the demand for ADUs is the highest. The conversion of owner occupied units to rental units has already had a large negative impact on many aspects of these neighborhoods. As a result, for many years, residents coordinated to create a vocal and well-organized opposition to any attempts to expand allowances for ADUs. It may be too soon to measure the impact of Ordinance #190988. For the time period since that ordinance was adopted, the City has experienced neither a large increase in affordable residential units, nor a large increase in student rentals within traditionally single family neighborhoods. In the first 12 months since the ordinance went into effect, the City received only six applications for ADU permits. During the June 2021 to July 2023 time period, however, ADU applications have increased to 42 (23 have actually been built and received a Certificate of Occupancy). At this point, however, the information does not include how many of those ADU applications have been diverted from the general community for students or Airbnb customers. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 9 of 20 Adopted November 14, 2023 Page 49 of 61  In addition, based on the experience of other cities, the HAP and other documents suggest that Gainesville could partner with other local organizations (such as banks, credit unions, housing authorities, and nonprofit organizations) to develop a revolving loan fund to help property owners build ADUs that meet certain conditions. Those conditions would include a requirement that the units must be rented to income qualified households, at affordable rates, for a certain amount of time. AHAC Recommendation The City should continue to work to educate the community about ADUs, including developing, and making available, “pre-approved” building plans. In addition, the City should consider ways to partner with other local organizations (such as banks, credit unions, housing authorities, and nonprofit organizations) to develop a revolving loan fund to help property owners build ADUs that meet certain conditions. Those conditions would include a requirement that the units must be rented to income qualified households, at affordable rates, for a certain amount of time. 6) Reduction of parking and setback requirements for affordable housing. Discussion The City’s Comprehensive Plan and the Land Development Code, allow for reduced parking requirements, where appropriate. In instances where analysis demonstrates that a proposed use will generate less parking than the minimum required by City ordinances, a City process allows for the reduction of required parking spaces. The City’s current parking regulations require fewer parking spaces for low- and moderate-income housing. City code currently requires one parking space per bedroom for market rate multiple-family housing. In contrast, reducing setbacks currently requires a variance for individual lots or a Planned Development Approval for a subdivision. In both instances, the provision of affordable housing is not a criteria for approval. For subdivisions, this is an instance, like additional density, where the City controls an item of value to some developers. For that reason, the City could adopt an incentive, essentially stating that reduced setbacks are available only when a certain amount of affordable housing is provided. AHAC Recommendation The City should continue reduced parking requirements for affordable housing. Additionally, the City should revise its land development code to make reduced setbacks for Planned Development Subdivisions available only if a certain amount of affordable housing is provided. Finally, the City should also consider allowing reduced setbacks for subdivisions that provide a certain amount of affordable housing (and perhaps meet certain other standards), without requiring those subdivisions to go through the entire Planned Development process. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 10 of 20 Adopted November 14, 2023 Page 50 of 61 7) Allowance of flexible lot configurations, including zero lot line configurations, for affordable housing. Discussion Zero lot line developments have no required setbacks on one or more sides. Consequently, they allow the use of a greater percentage of the lot. As a result, the allowance of zero lot line developments in appropriate locations can lower overall housing costs by reducing land costs. In general, City regulations that control the creation of subdivisions have little flexibility in terms of lot configurations unless an applicant incurs the additional expense of going through the Planned Development process. Applicants, however, may request that some subdivision requirements be modified for certain reasons. Those reasons are described in the code and currently include factors such as unusually steep topography. The code does not include the provision of affordable housing as a criterion for modifying subdivision requirements. Again, this is one of the few instances where the City has some leverage to offer something of value in exchange for affordable housing. For that reason, the City could revise its land development code to make the provision of a certain amount of affordable housing one of the justifications for modification of subdivision requirements. AHAC Recommendation The City should revise its land development code to make the provision of a certain amount of affordable housing one of the justifications for modification of subdivision requirements. 8) Modification of street requirements for affordable housing. Discussion Many older City neighborhoods have thrived with narrower street widths, even including on-street parking and two-way traffic. Nevertheless, the width, design and materials of public roads and streets are regulated by the State and cannot be modified by the City. There is, however, some flexibility within those regulations. Developers are encouraged to select alternative street specifications (including reductions in pavement widths) for all residential development, to reduce construction costs while benefiting the environment. Flexibility also exists for right of way widths, pavement widths, turn around dimensions, intersection curb radii, reduced curb and gutter requirements, etc. Modified street requirements, can reduce construction costs for all housing, including affordable housing. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 11 of 20 Adopted November 14, 2023 Page 51 of 61  AHAC Recommendation The City should maintain its current street requirements which are consistent with State guidelines. Flexibility currently exists within the State’s guidelines for addressing modified street requirements for affordable housing. 9) Establishment of a process by which the City considers before adoption policies, procedures, ordinances, regulations or plan provisions that increase in the cost of housing. Discussion The City has implemented an ongoing review of local policies, ordinances, regulations and comprehensive plan provisions that affect the cost of housing. Through this process, the City reviews new regulations to determine their potential impact on affordable housing. When appropriate and feasible, the City mitigates for negative impacts. As part of this process, the City reviews and evaluates zoning and other housing regulations to reduce the chances that they would limit housing opportunities for lower-income groups within the City. Petitions that regulate land use are required to include a fiscal impact statement regarding the impact of proposed development on affordable housing in the City. AHAC Recommendation The City should continue this review process. 10) Preparation of an inventory of locally owned public lands suitable for affordable housing. Discussion A Land Rights Coordinator (LRC) within the City’s Department of Sustainable Development maintains an inventory of City-owned lands, including land that may be appropriate for residential uses. If those lands are not needed for another use, such as an infrastructure project, they are considered to be available for affordable housing. The LRC routinely shares that inventory with various City departments and with other governmental and nonprofit agencies that provide affordable housing. The inventory is also available on the City’s website, and can be accessed by clicking on the following link: Planning & Development Welcome to the City of Gainesville (gainesvillefl.gov). In addition, as recommended in the City’s Housing Action Plan, the Land Rights Coordinator and a Geographic Information Systems (GIS) Specialist in the City’s Department of Sustainable Development have worked together to identify land owned by other public or private nonprofit agencies (e.g., the Alachua County School District, the University of Florida, or Santa Fe College) that is appropriate for residential uses and is within City limits. AHAC Recommendation The City should continue to maintain and update an inventory of locally owned public and private nonprofit lands suitable for affordable housing. In addition, the City should continue to share the inventory with other governmental and nonprofit agencies that provide affordable housing. As noted in the City’s Housing Action Plan, in the future, the City should also analyze under-utilized private for-profit lands (e.g., some parking lots) to determine if they may be appropriate for residential uses. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 12 of 20 Adopted November 14, 2023 Page 52 of 61 11) Support of affordable housing development near transportation hubs, major employment centers and mixed-use developments. Discussion The City’s Comprehensive Plan and Land Development Regulations provide for, and sometimes require, mixed-uses and higher residential densities in appropriate urban areas. In that way, the City allows for and encourages affordable housing near a mix of uses, including major transportation facilities, employment centers, and retail centers. When implementing Planned Development zoning districts near employment and activity centers such as Butler Plaza, the City requires a portion of the new residential units to be affordable. AHAC Recommendation Continue to support affordable housing development near transportation hubs, major employment centers and mixed-use developments. IV. Additional Recommendations 1) Consider Employer Assisted Housing Programs Discussion The City’s Housing Action Plan suggests that the City of Gainesville can work with the University of Florida, UF Health, Santa Fe College, North Florida Regional Medical Center, Alachua County Schools, and other large employers to create an Employer-Assisted Housing (EAH) Program to support workforce housing for low- and moderate-income employees. An EAH Program could include a broad partnership with developers, lenders, and other 501(c)(3) housing organizations to help promote and administer the program. Employers could offer their employees a payroll savings matching grant that could go along with the City’s down-payment and closing cost assistance to help overcome the initial barrier to homeownership. They could also offer rental assistance or security deposit assistance to their employees. Other options for EAH programs include gap financing, land donation, or simply sponsoring homebuyer education and counseling services for employees. The HAP uses Washington D.C. and Howard University as an example of a City and a large employer working together to develop a mutually beneficial project. The HAP specifically mentions Trellis House, a large mixed income housing multi-family housing project, located near campus. AHAC Recommendation The City should consider reaching out to other large employers to discuss and study the pros and cons of EAH; and share information about how to build affordable housing and/or subsidize access to affordable housing for income-qualified employees. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 13 of 20 Adopted November 14, 2023 Page 53 of 61  2) Facilitate Homeowner Repair Program Discussion The AHAC received much public input, and has personally observed that many owner-occupied homes are not taking advantage of the City’s Homeowner Repair Program. Residents and staff have cited several reasons for this (including lack of awareness of the program, lack of computers for online applications, fear of potential liens on the property, and others). AHAC Recommendation The City should consider different ways to reach this specific market. This could mean meeting people where they are, or “on their own turf.” More specifically, the City should consider asking neighborhood institutions like churches, community centers, and neighborhood associations for help in reaching potential home repair recipients. 3) Enhanced Community Engagement and Education AHAC Recommendation The City should continue to study ways to increase meaningful community engagement as early as possible in the development process. This is especially relevant for initiatives that set the rules for development (e.g., the Comprehensive Plan, the Future Land Use Map, the Zoning Map, and LDRs). The goal is to use public engagement to develop plans and rules that reflect the community’s vision. Too often, the current system results in frustration from both the existing residents and the development community, particularly the affordable housing development community (both non-profit and for-profit). To begin to address this problem, the AHAC recommends the following:  The City should continue to require and improve “pre-application neighborhood workshops.” These workshops are a requirement that a developer meet with the community surrounding and/or affected by the development. However, these workshops are not a substitute for the City’s responsibility engage the community before setting zoning and land development regulations; and  The City should create a planning and development outreach program. A core principle of this program should be to “meet people where they are.” This means that, in contrast to the City holding a meeting, City staff should attend a neighborhood or advocacy group’s regular meetings. This program should provide key concepts related to planning, zoning, and development. After completing the program, participants should have a basic understanding of zoning and LDRs. They should also know how to determine the zoning of any parcel in the City. Eventually, both City staff and participants should be able to describe the group’s vision, and how that vision fits into the overall community vision. Furthermore, both staff and participants should recognize whether or not the existing zoning and LDRs fit with the overall community vision. If not, City staff and the community should discuss realistic, proactive options to change or mitigate the existing zoning and LDRs. All participants in this program (including City staff) should recognize the complexity of the subject and be willing to take the time required to gain the needed understanding. The importance of a program like this is recognized in Imagine GNV, the draft new Comprehensive Plan that the City has developed. In particular, Chapter 8 – Our City Government (Where We Are and How We Got Here) provides strategies for outreach programs to increase community City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 14 of 20 Adopted November 14, 2023 Page 54 of 61  engagement and education. Those strategies can be viewed by clicking on the following link: Our City Government | Imagine GNV (konveio.com), (see the strategies under Outcome 1). 4) Study Anti-Displacement and Anti-Gentrification Plans Discussion One of the AHAC’s and the community’s biggest concerns with new development incentives, including allowances for some multi-family housing types in single-family areas, is the potential for the displacement of existing moderate- and low-income households in order to build student apartments and more expensive homes. The City has already implemented some programs to help address this issue. These programs include the following:  The My Neighborhood Program: The City offers up to $50,000.00 towards the purchase of a home, or lot to build on, within certain neighborhoods. The program is available to former residents who lived in the neighborhood for at least three years prior to 2011. The eligible neighborhoods are Greater Duval, Cedar Grove II, Porters, Sugarhill, Springhill, Fifth Avenue, Pleasant Street, North Lincoln Heights, and Heartwood (added on September 28, 2023). During Fiscal Year 2022-23 (October 1, 2022 to September 30, 2023), the City received four applications, all within the Greater Duval Neighborhood.  The Heirs’ Property Assistance Program: The City coordinates with Legal Firms to provide free probate legal assistance to owners of heirs’ property located within the boundaries of the Gainesville Community Reinvestment Area. During Fiscal Year 2022-23 (October 1, 2022 to September 30, 2023), the seven applicants were successfully probated.  The Legal Assistance for Eviction Prevention Program: The City coordinates with a nonprofit organization to provide several types of direct legal assistance to income qualified households facing possible eviction. Since this program began, it has assisted 89 households; 41 of those were during Fiscal Year 2022-23 (October 1, 2022 to September 30, 2023).  The Homeowner Education Program: The City coordinates with a nonprofit organization to provide a series of legal presentations, usually one each quarter. Each session focuses on a limited number of legal topics related to homeownership.  The Land Donation Program: The City donates land to organizations that build affordable owner- occupied housing. The City uses deed restrictions to ensure that many of these homes will be permanently affordable. During Fiscal Year 2021-22 (October 1, 2021 to September 30, 2022), the City donated 4 lots to this program. During Fiscal Year 2022-23 (October 1, 2022 to September 30, 2023), the City donated 6 lots to this program.  The Community Land Trust Program: The City is working with a nonprofit organization that acquires, develops, and manages land for permanently affordable owner-occupied housing. During Fiscal Year 2022-23 (October 1, 2022 to September 30, 2023), the City donated 4 vacant lots to this program. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 15 of 20 Adopted November 14, 2023 Page 55 of 61  AHAC Recommendation To further address this issue, the AHAC recommends that the City consider taking the following actions:  Continue to study and evaluate the programs described above.  Research and study how other Cities and Counties deal with this problem.  Identify and obtain Anti-Displacement and Anti-Gentrification Plans from other jurisdictions (e.g., Milwaukee, and Minneapolis/St. Paul).  Analyze neighborhood market and demographic data to determine to what degree displacement may be occurring in Gainesville’s neighborhoods.  Determine if, how, and to what degree, the City can require new development to document, and possibly mitigate, impacts on existing residents. Those impacts can include direct displacement, increasing rents, and increasing property values. Ultimately, the City should consider developing an Anti-Displacement/Anti-Gentrification Plan that can be useful whenever and wherever development pressures threaten to displace existing residents. 5) Reliable, Effective, and Equitable Transportation System Discussion Based on personal experience and public input, the AHAC recognizes the importance of transportation systems. Those systems impact the location and price of housing, as well as the overall quality of life of City residents. AHAC Recommendation The City should continue to study ways fund and improve its transportation system. This applies to all types of transportation modes (such as buses, cars, and bikes) and infrastructure (such as roads, sidewalks, and bus stops). V. City Commission Consideration The AHAC will submit this report to the City Commission on December 7, 2023. VI. Attachments 1. 2023 HUD Income Limits 2. Generalized Zoning Map (2023) 3. AHAC’s Inclusionary Zoning Recommendations—April 18, 2023 City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 16 of 20 Adopted November 14, 2023 Page 56 of 61  Attachment 1 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) INCOME LIMITS FOR GAINESVILLE MSA 2023 CITY OF GAINESVILLE FAMILY SIZE EXTREMELY VERY LOW LOW LOW INCOME INCOME (Persons) (30% MFI*) (50% MFI*) (80% MFI*) 1 $18,200 $30,350 $48,550 2 $20,800 $34,700 $55,500 3 $23,400 $39,050 $62,450 4 $26,000 $43,350 $69,350 5 $28,100 $46,850 $74,900 6 $30,200 $50,300 $80,450 7 $32,250 $53,800 $86,000 8 $34,350 $57,250 $91,550 *Fiscal Year 2023 Median Family Income (MFI) = $85,600 CDBG/HOME Effective: 06/15/2023 City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 17 of 20 Adopted November 14, 2023 Page 57 of 61  Attachment 2 City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 18 of 20 Adopted November 14, 2023 Page 58 of 61  Attachment 3 AHAC’s Inclusionary Zoning Recommendations—April 18, 2023 Program Element Current City AHAC Additional Comments Community would prefer a deeper level of affordability and a larger number of Set Aside and affordable units; AHAC recommendation 10% affordable unit at At least 10% affordable Affordability is to match the City's recommendation 80% AMI units at up to 80% AMI Requirements at this time due to the limited profit margins for developers presented in the Consultant's report. Establish in lieu option The community expressed an interest in with documentation excluding any additional affordable provided that there are housing development in East Gainesville Establish in-lieu fee no other options ("set a and only allowing it in West Gainesville; option, set at $120-160k high bar"); make however, the Committee would like to per affordable unit that In-Lieu Fee calculation for fee level ensure affordable development is would have been built clear and transparent; geographically close to new under IZ; adjust fee level adjust fee level every 2 development, but not limited to one every 2 years years; add geographic specific side of town. There was general constraint a la sidewalk concern over how the fees should be onion. spent. Apply IZ requirements to Apply IZ requirements multifamily to multifamily Development Scale No additional comments. developments with ten developments with ten or more units. or more units. -Voluntary opt-in for -Mandatory Citywide. geographies outside of -Incentives applicable to IZ policy. all new development Applicability -Incentives applicable to No additional comments. that meets IZ policy. non-market rate units. -Not applicable to -Not applicable to existing development. existing development. The two most popular options were 99 years and the life of the building. Most Affordability 99 years. Life of the building. participants were in favor of the life of Term/Duration the building as long as it is well defined in the code. Follow existing HUD Follow existing HUD Unit Pricing No additional comments. guidelines. guidelines. Ensure affordable units Ensure affordable units Ensure units are dispersed throughout Unit Characteristics are identical to market- are identical to market- the development; avoid "concentration rate units. rate units. of poverty". Concurrency of Include concurrency Include concurrency No additional comments. Delivery requirement. requirement. Adopt normal rounding Adopt normal rounding Functional Units rules; rounding up for rules; rounding up for No additional comments. fraction units above 0.5. fraction units above 0.5. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 19 of 20 Adopted November 14, 2023 Page 59 of 61  Program Element Current City AHAC Additional Comments Potential tiered incentive structure to Additional N/A trade extra set aside or N/A Recommendation 1 deeper affordability for more incentives The City and County should coordinate to ensure consistency Additional N/A between IZ policies in N/A Recommendation 2 order to minimize development migration from one to the other. City staff should evaluate a separate ownership-focused IZ Additional N/A policy to address N/A Recommendation 3 additional areas of affordable housing needs. City staff should evaluate "special needs population"-focused IZ Additional N/A policy to address N/A Recommendation 4 additional areas of affordable housing needs. City staff should evaluate additional public-private Additional partnership N/A N/A Recommendation 5 opportunities, beyond IZ policies, to augment the City's limited affordable housing budget. City of Gainesville Affordable Housing Advisory Committee, 2023 Incentives and Recommendations Report Page 20 of 20 Adopted November 14, 2023 Page 60 of 61  City of Gainesville Agenda Item Report File Number: 2023-1042 Agenda Date: November 14, 2023 Department: Housing & Community Development Title: 2023-1042 Discussion of IRR Presentation to City Commission (NB) Department: Housing and Community Development Description: The AHAC Chair is to designate a member to present the IRR to the City Commission Fiscal Note: N/A Explanation: The AHAC will present the IRR to the City Commission on December 7, 2023. The Chair of the AHAC, or a member designated by the Chair, takes the lead in presenting the IRR to the City Commission. Although one member takes the lead, all AHAC members are encouraged to attend and participate in the discussion of the item. Strategic Connection: ☐ Goal 1: Equitable Community ☐ Goal 2: More Sustainable Community ☒ Goal 3: A Great Place to Live and Experience ☐ Goal 4: Resilient Local Economy ☐ Goal 5: “Best in Class” Neighbor Services Recommendation: The Chair elect to present the Incentives and Recommendations Report to the City Commission or designate another member to do so. Page 61 of 61