Agenda - 02-15-1999 - 2 - Laserfiche WebLink

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Feb -15 -99 05:45P Town of Carrbovo 919 968 7737 P_04 14 t-1 • Attachment A ALEX ZAI >;:RON [06 W CA SA ST -2 CARP,GORO, NC, 27510 Memo--Zz -- t_ To:•$oari! of aldermen Fr. Alderman AlexZ2tfron Rc: QiversitroffaffordabiO housing as Included In 97.98 action agenda AN INCLUSIONARY HOUSING PROPOSAL FOR CARRIDOW f. A FEW N01-ES ON INCLUSIONARY HOLIVNGIZONING POLICIES - inctusionary zoning/housing portcy" Is a term used to describe a series of mechanisms used by govern ments --c+ ally oiues'Ind counties to induce developers by incerdiive or Muifemerd to indude a percentage of moderately priced dwetrsngs in new developments. The application and structure of tndusionery housing requirements is generally regarded to have been Initiated by a series of court cases in New Jorsay in the 1970's. In these cases, the stete of NewJerszy fi,ed the town of Mount Laurel, claiming that d'S exclusionary zoning' ordinances "oh Imposed minimum iot4ze and dwelling -unit square footage MQuirOments eftectvely constituted a Public policy of disc urination against lower income residents and minorities thereby violating feral fair hotising guldefines. in the final case (NJ Y. Mount Laurel II) The court agreed with the s atc's posrl -ion and mauired the city of Mount Lt urel to rwmoVe It's exdus!Qnary por -ties, and hunther ordered that cemective measures be taken to ametlolate the past effecXs of Mount Laurel's poticies. The mechanism that w-2S devised Is an oWinance requiring developers In the cry to construct a cedAia peroentage of new dwstrrnns to be-.sold at or betow a specified price level. This mechanism, known as indusionary zoning iM9since bem adopted by other governments around the country to ttelp cotred the ell'ed of v6away Inflation of housing prices In Wet tented markets, most notalAy In California. 2. LOCAL APPLICATION: - Cincurnstadees in southern Orartigll County. and tastOOM and Chapel bill in pscticutar am si=r to those In other areas becoming poptflar witA t+etlrees aitif wealthy iknmipsarrts. Namely. tYtat demand for expensive. lt=ty housing has driven a patierr5'of inflation to housing costs vNc h has far outstripped the rise in other Irving costs And salaries. Aowrdir►Q to an sri;de in the Ne%l and Observer (3128198) the average sales price for homes Sold in January'96 in Ofange Cc -asmty was $213,319 -dhe ftighesl average In the Trlang!e. Ac-.;ording to figures putA'fs1hed by the Grange County Economic Development Comcnission, housing prices have risen over 1@QM over a V year period. This series of indicators makes southern Orange County an, ideal candidate for the impiernentation of an effective strategy to intervene in the markelplaoc to cool the Kationa.ti trend