20-001 1 ORDINANCE NO. 20-001
2
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA
4 AMENDING LAND DEVELOPMENT REGULATIONS, CHAPTER 1,
5 ARTICLE II, "DEFINITIONS"; AMENDING CHAPTER 1, ARTICLE
6 V, "HOUSING INITIATIVES", SECTION 2, "WORKFORCE
7 HOUSING PROGRAMS"; PROVIDING FOR CONFLICTS,
8 SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE.
9
0 WHEREAS, the Workforce Housing Program was most recently revised on
1 September 19, 2017 as a result of a conversion of the former mandatory inclusionary zoning
2 program into a voluntary density and height bonus program; and
3 WHEREAS, since neither has ever been utilized, staff is of the opinion that the
4 proposed revisions will likely stimulate private sector's interest in the density bonus offered
5 in exchange for participation in the program; and
6 WHEREAS, the current limited interest stems partly from its restricted geographical
7 applicability as only projects located in the Downtown Transit-Oriented Development District
8 can participate in the program and the key proposed change herein expands applicability city-
9 wide; and
o WHEREAS, the City Commission has considered the recommendations and has
I determined and finds that it is in the best interest of the citizens and residents of the City of
'2 Boynton Beach, Florida to approve the amendments to the Land Development Regulations
'3 Workforce Housing Program as contained herein.
'4 NOW THEREFORE,BE IT ORDAINED BY THE CITY COMMISSION OF
5 THE CITY OF BOYNTON BEACH,FLORIDA,THAT:
6 Section 1. The foregoing whereas clauses are true and correct and are now ratified
'7 and confirmed by the City Commission.
'8 Section 2. The Land Development Regulations of the City of Boynton Beach
9 Code of Ordinances, Chapter 1,Article II, Definitions is hereby amended as follows:
0 Chapter I, Article II, Definitions.
t DEED RESTRICTION = &tellAll for sale workforce housing units created under the
2 Workforce Houseing pProgram shall be deed restricted for fifteen (15) years:, recurring. All
3 rental workforce units created under the program shall be deed restricted for fifteen(15)years,
4 non-recurring. The deed restriction shall be recorded and serve to restrict the sales or rental
5 price and/or the income of the purchaser or renter.
6
7 ELIGIBLE OCCUPANT - Relative to the wWorkforce hHousing pProgram contained in
8 these Regulations, it is a person who - • .•.• • -meets income requirements of
9 art-the program_ . _ _ . .•, _ . . . _. _• ._ ! •-•.•
.
0 .. • - - - • - = - • - . - . Priority will be given to persons who have
1 lived or worked within the city limits of Boynton Beach continually for one (1) year
2 immediately prior to the date of application for a workforce housing unit.
•3
-4 LOW INCOME HOUSEHOLD - Under the wWorkforce hIlousing pProgram provisions
-5 of these regulations, it is a household with a gross, combined income belewbetween sixty
•6 percent(60%) and eighty percent(80%) of the . - -. _-•• • • . - • . -
7 hieemeArea Median Income (AMD for Palm Beach County,published annually by the
8 Department of Housing and Urban Development (HUD).
•9
0 MODERATE INCOME HOUSEHOLD - Under the wWorkforce hHousing pProgram
1 provisions of these regulations, it is a household with a gross, combined income between
2 eighty percent(80%)and one hundred twenty percent(120%) of the
3 •• . - • • • -- Area Median Income (AMI) for Palm Beach County, published
4 annually by the Department of Housing and Urban Development(HUD).
5 RESTRICTIVE COVENANT AND AGREEMENT-The covenants that govern the initial
6 sale and rental and subsequent resale and releasing of workforce housing units created under
7 the wWorkforce hHousing pProgram. The term of the restrictive covenant and agreement is
8 fifteen(15)years,recurring,for sale units and fifteen(15)years for rental units,non-recurring.
9 Section 3. The Land Development Regulations of the City of Boynton Beach
o Code of Ordinances,Chapter 1,Article V,Section 2,"Workforce Housing Program"is hereby
1 amended as follows:
2 ARTICLE V. HOUSING INITIATIVES
3
4 Sec. 2. Workforce Housing Program.
5
6
47 A. Findings.
a 8 1. Housing Cost/Wage Gap. The City Commission recognizes that there is
49 a crowing. cap between housing costs and wages in the city;
0
1 1. Housing Shortage. The City Commission having conducted a Housing
2 Assessment-Study
3
4 4 the _ .. _ - . •_ _ • - - . - ;
5
6 2. Florida Statutes. F.S. § 166.04151 provides that a municipality may
7 adopt and maintain any ordinance that is adopted for the purpose of increasing
8 the supply of workforce housing using land use mechanisms not withstanding
90 any other provision of law;
:1 3. Housing Cost/Wage Gap. The City Commission recognizes that there is
:2 - _ _ •- - ,
:4 34. Public Interest. The City of Boynton Beach has a legitimate public
:5 interest in preserving the character and quality of neighborhoods that require
:6 assuring the availability of workforce housing for low and moderate income
78 persons in the city;
:9 4-5. Sense of Community. The city recognizes that the need to provide
'0 workforce housing is critical to maintaining a diversified and sustainable city
1 having the character and sense of community where people can live and work in
2 the same area; and
14 56. Housing Availability. The city is encouraging the production and
5 availability of workforce housing and at the same time is cognizant that
'6 escalating land costs and rapidly diminishing amounts of land hinder the
8 provision of sufficient workforce dwelling units by the private sector.
9 B. Applicability. The program is voluntary. Developers who choose to
110 participate may be awarded incentives outlined further in this article. The
111 following regulations shall apply only to development applications for projects
112 - - • - -- . . - - e - - _ • . - -
113 :• - .' - - _ - • _ • o.
114 },—with an-the following underlying future land use categories: the density in
115 excess of fifteen (15)dwellinger acre.
116
117 1. Projects with Mixed Use High, Mixed Use Medium, Mixed Use Low and
118 Special High Density future land use classifications are eligible for the program
119 citywide in areas where such classifications are allowed.
1 0 2. Projects implementing recognized affordable housing programs with
1 1 1.00% affordable units are eligible citywide in all future land use classifications
2 except Low Density Residential:
I
3
4
5 C. Provisions. The developer may elect to obtain higher density as part of
6 the DTODD 's 25%a density bonus and/or a height bonus through the
7 construction of the workforce units on-site or off-site, monetary
8 contribution, donation of land or purchase of units to be designated as
9 workforce, subject to the limits and requirements of this article.
2
3 I. Construction of workforce
4 units on-site:
5
6 1. To be eligible for the requested higher density as part of the DTO D D's
7 (25%) density bonus through the construction of workforce units on-site,the
9 developer must incorporate such units into the development as follows:
0 a. Projects located within the Downtown Transit Oriented Development
1 District (DTODD) using DTODD the density bonus of up to 25%alone or in
2 conjunction with the height bonus of one (1) additional story(up to a maximum
3 of 12 feet) shall designate a minimum often-fifteen percent(185%) of the total
4 proposed units as workforce housing units.
6 b. Projects located within the DTODD in the Bovnton Beach Boulevard
7 Overlay with the Mixed Use Medium or Mixed Use High future land use
8 classifications may use the density bonus of up to 25%in conjunction with the height
9 bonus or the height bonus alone;such the height bonus can include two(2)additional
o stories (up to a maximum of 24 feet). . •- . . - • - - - - pojeets-located
. . _ . . • . , Projects using the maximum
2 height bonus shall designateing a minimum of twenty percent (20%) of the total
33 proposed units as workforce housing units.
5 c. Projects located outside of DTODD with Mix Use Medium, Mixed Use
6 Low or Special
7 1-Iigh Density Residential future land use classifications are eligible for a density
8 bonus for up to
9 25%. Such projects shall designate a minimum of ten percent (10%) of the total
0 proposed units as workforce housing units. Properties of three (3) or more acres are
l also eligible for a height bonus of one (1) additional story (up to a maximum of 12
2 feet).
.3
.4 d. Projects with 100%affordable units outside of the DTODD with Medium or
.5 High Density
,6 Residential future land use classifications are eligible for a density bonus
7 of up to 25%.
9 ee. Eligible land use classifications and zoning districts (Table 1-2).
.0
.l
Land Use Zoning
Classification Districts
Medium Density Residential* R-2, R-3 and PUD
High Density Residential* IPUD and PUD
Special High Density Residential 1PUD and PUD
Mixed Use Low MU-land SMU
Mixed Use Medium MU-2 and MU-3
Mixed Use High
MU-4 and MU-Core
2 `Applicable only to projects ittrl000 a llbriable..units.
3
4
5
6 2. Household(Income)Type. Twenty-five percent(25%)of the total required
7 workforce housing units shall be set aside for low-income households. Seventy-
8 five percent(75%)of the total required workforce housing units shall be set aside
9 for moderate-income households.
0
1 3. Fractions. If the number of workforce housing units results in a fractional
2 remainder greater than one-half(0.50),the number shall be rounded up. If the
3 required number of workforce housing units results in a fractional number less than
4 one-half(0.50), the number shall be rounded down.
6 4. Number of Units. The workforce housing units provided shall have the
7 same percentage of unit types as market rate units within the development. The
8 unit types include the category of structure(single-family detached and attached,
9 multifamily), for rent versus for sale units, and the number of bedrooms. Relief
o from this provision may be granted if the intended purpose is to address particular
2 needs of the community, substantiated by the provided data/analysis.
3 5. Staff Approval. At the time of application for land use amendment and
4 rezoning,the project must be reviewed and signed off by the Community
5 Improvement Division of the city as part of the site plan approval process for
6 compliance with affordability guidelines and number of units qualifying as
7 workforce.
8
9 6. Site Plan. The site plan shall clearly identify the location of workforce
0 housing
l units. Additionally, tabular data must be included on the site plan showing the
'2 address or unit number,total number of units, number of bedrooms of workforce
.3 housing units and the targeted income levels. This shall be included with the
4 market rate data.
'5
;6 7 Sale Restrictions. Workforce housing units shall be regulated in terms of:
ga. Initial sales price or rent levels; and
io b. Subsequent resale prices or leasing rates.
it
12 c. If compliance with a land development standard would preclude
13 construction of a residential or mixed use development in which workforce housing
14 units are included, pursuant to this chapter, the applicant may submit a proposal for
15 waiver or reduction of the development standard. The applicant shall show that the
16 waiver or reduction of the development standard is necessary to make the
17 workforce housing units economically feasible and that such a waiver will not
9 compromise any of the city's life or safety standards.
0 8. Recording the Restrictive Covenant. Prior to the issuance of any
2 1 building permit,the restrictive covenant and agreement shall be recorded in the
2 2 public records of Palm Beach County. The term of the restrictive covenant shall
2 3 be fifteen (15) yearsjrecurring. A copy of the recorded covenant and
2 4 agreement shall be provided to the city prior to the issuance of the building
56 permit.
2 7 II. In-Lieu and off-site options. - - _ -- . - - . •- -
2 8 workforce-un - • . _. . ._ - . --
J 9 C.I.a/b and C.1.3 above.
20
. 1 1. "I"o encourage construction of workforce units, the number of units for which
2.2 the payment in- lieu can be collected shall increase from ten percent (10%), fifteen
.3 percent (15%) and twenty percent(20%) as indicated in sections C.1.1.c, C.I.1.a.
2 4 and C.1.I.b. respectively,to fifteen percent (15%), twenty percent(20%), and
4 5 twenty five percent(25%) of the total proposed units.
2.6
3.7
. 8 2-1-. Payment In-Lieu(Table 1-3). Contributions per unit listed in the table below
9 shall accrue
. 0 to the Boynton Beach Housing Trust to be utilized to subsidize the creation of
. .1 workforce housing within the city. In-lieu of fees shall be paid in full prior to the
2 issuance of building permit.
3
4
Payment In Lieu of Construction of Workforce Housing Units
(per unit)
For-sale unit $39,293 $82,986
For rent units $4-8, 88- $36,760
5 Note:Payment-in-lieu amounts shall be revised every two(2)years,based on(i)median single-
6 family home sale
2 7 price for Palm Beach County provided by Realtors'Association of the Palm Beaches,and(ii)
2 8 average monthly apartment rent for the Boynton Beach market provided by Reinhold P.Wolff
9 Economic Research,Inc.
0
1 32. Donation of Land. The value of the land shall equal or exceed the total
2 "in-lieu of' fee for all workforce units or shall be of sufficient size to develop the
3 same number of units. The value of the donated land must be verified by a MAI
4 appraisal no more than three(3) months old. The appraisal shall be obtained by
5 developer at developer's cost to verify the value of donated land. The land shall
6 be deeded to the city prior to the issuance of a final certificate of occupancy for
77 the development.
9 43. Off-Site Construction. The workforce housing units may be built off-site,
0 provided they are constructed within the City limits. All off-site workforce housing
2 units shall comply with all sections of these Regulations.
3 54. Purchase Market Rate Units. Purchase an equivalent number of existing
4 market rate units to be deeded to the city or sold to eligible households. Such units
5 shall be deed restricted to comply with the Workforce Housing Ordinance. The
4 6 developer may retain the title to off-site units subject to recordation of a city
7 approved deed restriction.
9 D. The following requirements shall apply to built or purchased
0 workforce units: I. Rental Housing Units.
1 1. Recording of the Restrictive Covenant. A restrictive covenant shall be
2 recorded in the public records specifying the income level served, rent levels,
3 reporting requirement and all restrictions applicable to the workforce housing
4 units. All leases on workforce housing units shall contain language incorporating
5 the restrictive covenant applicable to the workforce housing units and shall
6 reference the recorded restrictive covenant. The restrictive covenant shall remain
77 in force for fifteen (15) years.
9 2. Rental Rates.
0
a. Units targeted to low income households at sixty percent(60%)to eighty
2 percent (80%) of the A?vll t Et t - - -t. -
3
-
3 shall not have rental rates that exceed one hundred percent (100%) of the HUD
4 determined fair market rent for the area.
5
6 b. Units targeted to moderate income households at eighty percent
7 (80%)to the one hundred twenty percent(120%)of the AMI the-City-of
8 t: = :. - -• - - shall not exceed one hundred
9 percent(100%) of the HUD determined fair market rent for the area.
0
2 3. Tenant Income Qualification. Tenant income qualification records shall
3 be maintained on-site and a yearly report shall be forwarded to the Community
4 Improvement Division of the City of Boynton Beach for compliance
5 determination.
.6
77 II. For-Sale Housing Units.
.9 1. Restrictive Covenant. All deeds shall include the restrictive covenant
'0 applicable to workforce housing units. All sales contracts shall state that the unit
.1 is part of a workforce housing program and subject to the Land Development
.2 Regulations of the city. The restrictive covenant shall remain in force for fifteen
'3 (15) years, recurring. The form of deed for workforce housing units shall be
'4 approved by the City Attorney.
'6 2. Resale. The restrictive covenants shall state that during the affordability
'7 term,the resale of a workforce housing unit shall be subject to the following
'9 resale requirements.
10 a. All workforce housing unit owners shall notify the city immediately that
i 1 the unit is for sale. The city shall have first right of refusal to purchase the unit.
:12 Upon receipt of notice that a valid offer has been made on the unit, the city shall
3 1,3 have fifteen (15) days to invoke its right of refusal to purchase the units.
304
305 b. All workforce housing units are to be resold only to low or moderate
306 income qualified households at an attainable housing cost for each targeted
307 income range.
308
309 3. Required Occupancy. Purchasers of workforce housing units shall be
310 required to occupy the unit.
3 2 4. Closing Costs. No charges or fees shall be imposed by the seller on the
3 3 purchaser of a workforce housing unit which is in addition to or more than charges
4 imposed upon purchasers of market rate units, except for administrative fees
5 charged by the city/CRA, or their designee.
6
7 5. Sales Price Calculations. Sales prices for workforce housing units will be
9 calculated on the basis of:
0 a. An available fixed-rate thirty(30)-year mortgage, consistent with a
I "blended rate" for Palm Beach County banks, and/or the Florida Housing Finance
$ 2 Authority. A lower rate may be used in calculating workforce housing prices if the
1 3 developer can guarantee the availability of fixed-rate thirty(30)-year mortgage at
this lower rate for all workforce housing units required for the covered project;
$ '6 b. A down payment of no more than ten percent(10%) (including any
3 7 down payment assistance provided by SHIP or other sources) of the purchase
8 price;
0 c. A calculation of property taxes; and
• 2 d. A calculation of homeowner insurance, mortgage insurance,
33 homeowner association fees, property management fees and other closing costs.
5 6. Compliance. Prior to request for final certificate of occupancy for the
6 development, the developer shall provide to the city's Community Improvement
3 7 Department, or designee, documentation sufficient to demonstrate compliance
3;8 with the workforce housing program. Such documentation shall include but is not
3 9 limited to information regarding the identity and income qualification
0 documentation for all occupants of the workforce housing units,proof of
$ 1 recordation of restrictive covenant in approved form.
32
3 7. Resale Requirements. To maintain the availability of workforce housing
4 units which may be constructed or substantially rehabilitated pursuant to the
5 requirements of this program,the following resale conditions shall be imposed on
6 the workforce housing units and included in the deed and restrictive covenant
7 recorded in the Public Records of Palm Beach County:
9 a. Location of Units. All workforce housing units constructed or substantially
rehabilitated under this program shall be situated within the development so as not
.1 to be in less desirable locations than market-rate units in the development and
.2 shall, on average, be no less accessible to public amenities, such as open space, as
.3 the market-rate units.
.4
.5 b Integration. Workforce housing units within a development shall be
.6 integrated with the rest of the development and shall be compatible in exterior
.7 design and appearance, construction, and contain comparable HV/AC systems as
8 market rate units.
'9
0 c. Construction Phasing. The construction schedule for workforce housing
1 units shall be consistent with or precede the construction of market rate units.
.2 All workforce housing units must be deeded to the City, deed-restricted, or
3 receive a certificate of occupancy prior to issuance of more than eighty percent
.4 (80%) of the certificate of occupancies in the subject development.
5 d. Lot Premiums. There shall be no lot premiums charged on the workforce
6 housing units. e. Sales Price. All required workforce housing units shall be
.7 offered for sale or rent at an
attainable housing cost for each of the targeted income ranges.
0 f. City Approval. The city, its successors and assigns may enforce the
1 covenants. No amendments to the restrictive covenant shall be made unless by
'2 written instrument approved by the city.
'4 E. Monitoring and Compliance.
'6 1. Qualified Buyers. Final approval conditions: Final conditions of approval
7 shall specify that the workforce housing units are sold to buyers whose income
8 does not exceed one hundred twenty percent(120%)of the-Boynton-Beach
'9 ed an ho 5ehol ' e AM1. The conditions will also specify the
:0 requirements for reporting to the city's Community Improvement Division on
:1 buyer eligibility, housing prices, as well as any applicable requirement to record
: :2 the restrictive covenant or to enforce resale restrictions.
:3
:4 2. Surety. Developers may substitute surety as outlined in Chapter 2,Article
: :5 III, Section 6, Land Development Regulations, in the amount of one hundred ten
:6 percent(110%) of the developers' obligation for workforce housing provision
: :7 according to this section. The city shall, at all times, have the authority to draw
:8 upon the surety to enforce the provisions of this article should the applicant be in
9 default of these requirements,
.1 3. Enforcement. The city may enforce the requirements of the Workforce
'2 Housing Ordinance through any cause of action available at law or equity,
'3 including but not limited to seeking specific performance, injunctive relief,
'4 rescission of any unauthorized sale or lease,during the term of the restrictive
: '5 covenant.
'6
:'7 4. Annual Report. The Community Improvement Department shall submit an
: '8 annual report to the City Commissioners indicating the status of the Workforce
'9 Housing Ordinance, including but not limited to the revenues accrued to the
10 Housing Trust Fund,the number of units created, leased and sold.
III
• 112 Section 4. Each and every other provision of the Land Development Regulations
• X13 not herein specifically amended, shall remain in full force and effect as originally adopted.
• 04 Section 5. All laws and ordinances applying to the City of Boynton Beach in
• 115 conflict with any provisions of this ordinance are hereby repealed.
• 06 Section 6. Should any section or provision of this Ordinance or any portion
• i17 thereof be declared by a court of competent jurisdiction to be invalid, such decision shall not
• 118 affect the remainder of this Ordinance.
• 119 Section 7. Authority is hereby given to codify this Ordinance.
0 Section 8. This Ordinance shall become effective immediately.
4 1 FIRST READING this J yytay of r1 , 2019.
2 SECOND, FINAL READING AND PASSAGE this 744
day o c , 2020.
43
4 4 CITY OF BOYNTON BEACH, FLORIDA
45
4 6 YES NO
47
4 8 Mayor—Steven B. Grant ✓
9
4 o Vice Mayor—Justin Katz ✓
41
2 Commissioner—Mack McCray
3
• 4 Commissioner—Christina L. Romelus 1/
5
• 6 Commissioner—Ty Penserga
7
8
9 VOTE SD
o AT EST:
-
4 J O 4
3 Cr stat Gibson, MMC
(7
4 City Clerk 1920 ;,�.
5 U
6 (Corporate Seal)
S:\CA\Ordinances\LDR Changes\Workforce Housing Program(2019XCDRV 19-008)-Ordinance.docx