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City of Missoula, Montana Item to be Referred to City Council Committee Committee: PAZ Item: Small Lots Date: 5/6/10 Prepared by: Bob Jaffe Initiated by: Bob Jaffe Action Required: Forward the following proposal to the planning board for consideration: Add a new sub-section to 20.05.040 Development Options, titled: C. Subsidized Development (three or more dwelling unit project): The subsidized development option is available in the RM2.7, RM1.5, RM1-45, RM1-35, RMH and RM0.5 districts. It allows smaller parcel size and other flexible building standards in exchange for 50% of the project developed under a subsidy program of the US Department of Housing and Urban Development (HUD) or the Montana Board of Housing (MBOH) for residents whose incomes fall below 80% of the area median as determined by HUD. In return, the subsidized development option allows a moderate density bonus This option only applies to parcels that contain or will contain detached residential units meeting the building type descriptions of detached house (20.05.030.B.1) or lot line (detached) house (20.05.030.B.2). Parcel and building standards for subsidized development can be found in 20.05.050 (Table 20.05-3). Recommended Motion: I move that the proposal to add sub-section C, Subsidized Development, to section 20.05.040 Development Options, be forwarded to the planning board for consideration. Timeline: Referral to committee: 5/6/10 Committee discussion: 5/12/10 Council acts to set hearing: na Public Hearing: na Deadline: na Background and Alternatives Explored: I believe it is in the City’s interest to promote affordable housing. The intent of this proposal is to add an additional tool in the toolbox for builders to create small homes on small lots which in turn will be more affordable. Unlike some of the tools used in the past, this proposal only will apply to developments where some percentage of the homes are required to be affordable. The easiest way to ensure this is to require that the homes be subsidized through HUD. This way the various HUD restrictions will be in place and we have existing mechanisms to implement these restrictions. ---PAGE BREAK--- This proposal is not intended to cure our affordable housing problems. It is only one additional piece in the puzzle that can be used by our CHDOs and other developers. Financial Implications: Attachments: Table 20 050 3 Draft Revised Subsidized