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ORDINANCE NO. 19-15 An Ordinance of the City Council of the City of Whitefish, Montana, amending Ordinance No. 19-10 to correct an error. WHEREAS, on June 3, 2019, the Whitefish City Council adopted Ordinance No. 19-10, adding a new Section to Chapter 1, General Zoning Provisions, of Title 11, Zoning Regulations, of the Whitefish City Code to establish the Whitefish Legacy Homes Program; and WHEREAS, it recently came to staffs attention that there is an error in § 11-lA-6-B-3 of Ordinance No. 19-10; and WHEREAS, Exhibit A identifies the error and the correction; and WHEREAS, it will be in the best interests of the City of Whitefish and its inhabitants to adopt the proposed amendment to Ordinance No. 19-10. NOW, THEREFORE, be it ordained by the City Council of the City of Whitefish, Montana, as follows: Section 1: All of the recitals set forth above are hereby adopted as Findings of Fact. Section 2: The City Council hereby approves an amendment to Ordinance No. 19-1 0 to correct an error as shown in Exhibit A. Section 3: In the event any word, phrase, clause, sentence, paragraph, section or other part of the Ordinance set forth herein is held invalid by a court of competent jurisdiction; such judgment shall affect only that part held invalid, and the remaining provisions thereof shall continue in full force and effect. Section 4: This Ordinance shall take effect thirty (30) days after its adoption by the City Council of the City of Whitefish, Montana, and signing by the Mayor or Deputy Mayor thereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF WHITEFISH, MONTANA, THIS 15TH DAY OF JULY 2019. ATTEST: CD , 4 1 q --:IDt , )'Lp Michele Howke, City Clerk ---PAGE BREAK--- 11-lA-1: EXHIBIT A Whitefish City Code Title 11 - Zoning Regulations Chapter IA - Whitefish Legacy Homes Program PURPOSE: The purposes of this Chapter are to: A. Implement the Whitefish Strategic Housing Plan; B. Promote the construction of Legacy Homes that are permanently affordable to the community's workforce; C. Retain opportunities for people that work in the city to also live in the city; D. Provide a full-range of housing choices for a variety of ages, income levels and family sizes; E. Ensure residents and future generations can afford to reside within the city; and F. Encourage new development to achieve a reasonable balance between market rate housing and affordable housing through the use of incentives and other means to help offset potential costs. 11-lA-2: GENERAL AFFORDABLE HOUSING REQUIREMENTS: A. Applicability: The requirements of this Chapter apply to the following developments unless exempt under section 1 l-1A-2(E): 1. Major Subdivisions(§ 12-3-3A); 2. Minor Subdivisions(§ 12-3-3B); 3. Residential Planned Unit Developments 1 l-2S-2A); 4. Mixed Use Planned Unit Developments with more than one residential unit 11-2S-2B); and 5. Conditional Use Permits for residential development, including Administrative Conditional Use Permits. B. Number of Affordable Units: Twenty percent (20%) of all new dwelling units in a residential or mixed-use development must be affordable units. If application of the twenty percent (20%) requirement results in a fractional unit, an in-lieu fee may be paid for the fractional unit or rounded up to the next full unit. C. Deed Restrictions: To ensure permanent affordability, all affordable units will be subject to deed restrictions which will be a condition of approval for all preliminary plats, planned unit developments and conditional use permits. D. Affordability: Affordable units must be provided for a range of household sizes and EXHIBIT A - Page 1 ---PAGE BREAK--- incomes relative to the area median income, as updated annually by the United States Department of Housing and Urban Development. 1. Rental Units: The following requirements apply to affordable rental units: a. Rents charged must be affordable to households earning 60% to 80% of the area median income. b. For each income range, the maximum rent charged shall be calculated as set forth in the Whitefish Legacy Homes Program Administrative Procedures. c. The affordable rental units must be dispersed throughout the 60% to 80% range propo1tionately such that the average of all units is affordable to households earning 70% of area median income. 2. Ownership Units: The following requirements shall apply to affordable ownership units: a. Ownership units must be affordable to households earning 80.01 % to 120% of the area median income. b. The initial sales price of affordable ownership units shall calculated as set forth in the Whitefish Legacy Homes Program Administrative Procedures. c. The affordable ownership units must be dispersed throughout the 80.01 % to 120% range proportionately such that the average of all units is affordable to households earning 100% of area median income. E. Exemptions: The following developments are exempt from the requirements of this Chapter: 1. Residential dwelling units that do not require approval of a discretionary land use permit by the City Council; 2. Subdivision of one lot into no more than one additional lot; 3. Construction of accessory dwelling units(§ 11-3-1); 4. Minor Subdivision, Waiver of Preliminary Plat(§ 12-3-3C); and 5. Units restricted by deed or other manner for long-tenn occupancy that meet a different housing program's eligibility criteria, at the discretion of the City. 11-lA-3: DEVELOPMENT STANDARDS: A. Relationship of Affordable Units to Market Rate Units: 1. Mixed Dwelling Unit Types: In developments with a mixture of housing types, including, without limitation, single-family detached units, townhomes, duplex, and EXHIBIT A - Page 2 ---PAGE BREAK--- triplex, the affordable units must be comprised of the different housing types in the same proportion as the market rate units. 2. Detached Dwelling Units: In developments contammg only single-family detached units, up to one-half of the affordable units may be attached single-family units ( duplex, triplex, townhouse). 3. Subdivision Only: In developments that involve only the subdivision of land, the affordable unit types must be consistent with the needs identified at the time of approval. Unless an alternative means of compliance is approved by the City Council as set forth in section 11-lA-4, the applicant must provide a financial guarantee as set forth in the Whitefish Legacy Homes Program Administrative Procedures that will be released upon issuance of the certificate of occupancy for that affordable unit. 4. Ownership Type: The proportion of affordable ownership units and affordable rental units must be the same as that of the market rate units. 5. Number of Bedrooms: Affordable units must have the same proportion of studio, one-, two-, and three-bedroom dwelling units as in the market rate units, provided the proportion is responsive to the needs identified at the time of approval. Three-bedroom affordable units satisfy this requirement for market units with four or more bedrooms. B. Quality, Size and Amenities of Affordable Units: 1. Quality of Units: The exterior of affordable units must be constructed with similar quality, design and materials to the market rate units and must be architecturally compatible with surrounding development. Storage space, balconies, decks, and private yards similar to market rate units must be provided. 2. Size of Units: The sizes of affordable units may vary but the minimum square footage and the minimum average square footage must comply with the standards set forth in the Whitefish Legacy Homes Program Administrative Procedures. 3. Access to Amenities: When affordable units are provided onsite, the owners and renters of the affordable units must have access to amenities equal to that of the owners and renters of the market rate units. Such amenities include, but are not limited to, parks, outdoor play areas, pools, exercise facilities, clubhouses and similar on-site amenities. C. Location and Timing: 1. Location of Affordable Units: Affordable units must be distributed evenly throughout the development to achieve integration and avoid concentration or segregation of the affordable households. 2. Timing of Construction: The construction of onsite affordable units must be timed such that the units shall be constructed and pass final inspection concurrently or prior to the market rate units in the development. When construction is phased, affordable units must be constructed and offered for sale in proportion to market rate EXHIBIT A - Page 3 ---PAGE BREAK--- units. 3. Timing of Marketing: Onsite affordable units must be marketed concurrently with or prior to the market rate units in the development. 11-lA-4: ALTERNATIVE MEANS OF COMPLIANCE: A. When Allowed: In certain circumstances, the City may approve alternatives to constructing affordable units onsite. Circumstances include, but are not limited to: 1. High levels of property tax; 2. High homeowner's association dues; 3. A predominance of short-term rentals; 4. Onsite development consisting of condominiums; and 5. Location far from schools, transit, or shopping. B. Approval: Proposed alternative means of compliance must be incorporated into a housing mitigation plan and approved by the City Council or by the Zoning Administrator if the applicant is seeking an administrative conditional use permit. C. Offsite Housing: 1. The construction of affordable units by the applicant or the applicant's partner off site may be an alternative means of compliance if the applicant can demonstrate that: a. Implementation of a proposed alternative means of compliance would not overly concentrate affordable units in an area or within the proposed development in a location where such a concentration would be inappropriate given present and anticipated future conditions; b. There is adequate existing infrastructure to support the affordable units in the proposed location; c. Public facilities can serve the proposed offsite affordable units or the commitment to provide such service has been confirmed; d. There is a need or market for affordable units in the location proposed; e. The property where the affordable units are proposed to be located is suitable for residential use and development; and f. The proposed alternative means of compliance provides an overall greater public benefit than if the affordable units were constructed within the development. 2. Unit size, quality, design and timing of construction of the offsite affordable EXHIBIT A - Page 4 ---PAGE BREAK--- units must be set forth in the approved housing mitigation plan. 3. The ratio of affordable units relative to market rate units in a development remains 20:80 when offsite units are approved. 4. Purchasing an existing offsite market rate unit to satisfy the requirement for an affordable unit is prohibited. D. In Lieu Fees: 1. Fees in lieu of affordable units may be an alternative means of compliance if the applicant can demonstrate that: a. The proposed cash payment creates funds that will further the goals of this Chapter; and b. The proposed cash payment provides a greater overall public benefit than if the affordable units were constructed within the development. 2. Fees in lieu of affordable units are assessed at 1.5 times the percentage of on-site units required by this Chapter and are calculated by applying the methodology set forth in the Whitefish Legacy Homes Program Administrative Procedures. 3. An administrative charge of 10% of the fee in lieu is assessed to cover the cost associated with administering the fee to further the goals set forth in this Chapter. E. Land in lieu: Land in lieu may be an alternative means of compliance if the applicant is not constructing residences and can demonstrate that: 1. The appraised value of property to be dedicated is equal to or greater than the fee in lieu of affordable units that would have been required; 2. The property to be dedicated will further the goals of this Chapter.; and 3. The property to be dedicated provides a greater overall public benefit than if the affordable units were constructed within the development. F. Clustering: Clustering on a development site may be approved if the applicant can demonstrate clustering would enhance the neighborhood, would provide convenient access to trails, public transportation or employment, or would otherwise exceed the requirements set forth in this Chapter. G. Other Alternatives: A combination of the above alternative means of compliance or other alternatives may be approved if the applicant can demonstrate the proposed means of compliance would provide a greater overall public benefit than if the affordable units were constructed within the development. 11-lA-5: HOUSING MITIGATION PLAN: A. Application: An applicant must submit a proposed housing mitigation plan with the EXHIBIT A - Page 5 ---PAGE BREAK--- applicant's first application for development approval. B. Requirements: The housing mitigation plan must describe how the applicant intends to comply with the requirements of this Chapter, and must contain the following information, as applicable: 1. Total number of market rate units and affordable units; 2. Square footage of the total development and each unit; 3. How the requirements of this Chapter will be met, including unit types, sizes, number of bedrooms, target income category, and initial sales price or rental p1ices; 4. The incentives intended to be used for the development; 5. Location of the affordable units within the development by type and size and justification for clustering, if proposed; 6. Proposed schedule of market rate units and affordable units, including issuance of building permits; 7. Any proposed alternative methods of compliance; 8. Standardized deed restrictions provided by the city; 9. Homeowners association and fees; 10. Site plan; 11. Unit designs; 12. Amenities; and 13. Any other information deemed necessary by the city. C. Approval: The housing mitigation plan must be approved by the City Council or by the Zoning Administrator if the applicant is seeking an administrative conditional use permit. Compliance with the housing mitigation plan is a condition of approval for development. D. Amendment: 1. Any substantive modification of or amendment to the housing mitigation plan requires the City Council's approval. Substantive modification or amendment includes, but is not limited to, a reduction in the size of affordable units, a change in the timing or phasing of and a change in the method of complying with the requirements of this Chapter. 2. Minor modifications of or amendment to the housing mitigation plan may be approved by the Zoning Administrator upon written notice that the proposed EXHIBIT A - Page 6 ---PAGE BREAK--- modification or amendment is inconsequential to the development and to the achievement of the goals set forth in this Chapter. E. Failure to Comply: Failure to comply with the approved housing mitigation plan constitutes a failure to comply with the conditions of approval and may result in the revocation of the development approval. 11-lA-6: INCENTIVES: A. An applicant for a conditional use permit for a development that will provide affordable units onsite or will satisfy the requirements of this Chapter through an alternative means of compliance is entitled to receive the following incentives: 1. 20% reduction in parking requirements for all units with at least two bedrooms; 2. 10% increase in maximum building height; 3. 10% increase in maximum lot coverage; and 4. 20% increase in density. B. An applicant for subdivision approval for a development that will provide affordable units onsite or will satisfy the requirements of this Chapter through an alternative means of compliance is entitled to receive the following incentives: 1. 20% reduction in minimum lot size; 2. 20% increase in density; 3. W¼--10% reduction in minimum lot width; and 4. 10% increase in maximum lot coverage. C. An applicant for a planned unit development that will provide affordable units onsite or will satisfy the requirements of this Chapter though an alternative means of compliance is entitled to receive either the incentives set forth in section 11-lA-6-A or section 11-lA-6-B, but not both. 11-lA-7: ADMINISTRATION: A. Administrative Procedures: The City is authorized to develop, maintain and enforce the Whitefish Legacy Homes Program Administrative Procedures to implement this Chapter. B. Contents: The Whitefish Legacy Homes Program Administrative Procedures may include the following provisions: 1. Application submittal requirements to comply with this Chapter, including minimum requirements for housing mitigation plans; EXHIBIT A - Page 7 ---PAGE BREAK--- 2. A housing mitigation plan template; 3. The method used to determine the initial sales price of affordable ownership units; 4. The method used to determine the maximum rent charged for affordable rental units; 5. Minimum design requirements including the mm1mum residential square footages according to the number of bedrooms; 6. The method for determining fees associated with this Chapter, including cash in lieu payments; 7. A methodology for evaluating property dedications as an alternative means of compliance; and 8. Any other matter deemed necessary by the city. C. Adoption: The Whitefish Legacy Homes Program Administrative Procedures shall be adopted by resolution of the City Council and shall be amended from time to time as deemed necessary. D. No Taking of Property Without Just Compensation: It is the intention of the city that the application of this Chapter not result in an unlawful taking of private prope1ty without the payment of just compensation. 1. Any applicant who feels that the application of this Chapter would result in such an unlawful taking must apply to the City Council for an adjustment of the requirements imposed by this Chapter in the applicant's housing mitigation plan. 2. The burden of proof is on the applicant to establish that the requirements of this Chapter would result in an unconstitutional taking without just compensation pursuant to the applicable laws of the United States and the State of Montana. If it is determined by the City Council after a public hearing that application of the requirements of this Chapter would result in an unconstitutional taking without just compensation, the City Council will alter, lessen or adjust the requirements or as applied to the particular development under consideration such that there is no unlawful uncompensated taking. EXHIBIT A - Page 8