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Attachment IV 14 ATTACHMENT B Affordable Housing Task Force Recommendations (Submitted by Aldermen Coleman, Slade, and Johnson, December 4, 2012) At the close of four meetings, the Affordable Housing Task Force identified two areas of recommendations to share with the full Board of Aldermen: modify the Land Use Ordinance (LUO) to allow more flexibility in the way that developers can meet the Town's affordable housing goals, and consider ways to create funds to use toward affordable housing. With regard to potential amendments to the LUO, the Task Force focused on two distinct areas: A) the payment in -lieu option and B) the small house (size - limited) requirement. The full complement would include the following four elements. 1) Reduce the number of affordable units from 15 percent to 12 percent, while also reducing the cost of the unit from 80 percent AMI to 65 percent AMI (Area Median Income). 2) Add more flexibility to the program by allowing developers to build some units and pay some payment in lieu fees for other units —but requiring a minimum of 5% built units 3) Retain the density bonus only for the built units, allow developers to use the affordable housing density bonus ratio only for those units actually constructed (units paid for using the in -lieu of option would not count toward the density bonus allotment), providing the bonus only on built units provides an incentive for developers to build more houses and make fewer payments in lieu. 4) Examine the existing provision in the LUO that allows developers to build some affordable housing units in the 40 percent required open space area, and consider possible modifications. For example, allow developers, who agree to construct the full 12 percent of affordable units, to construct a portion of those units in the open space area so long as the open space is not less than 20 percent of the project site. The Task Force also discussed the issue of federal and state affordable housing funds, which have diminished significantly during the economic recession and are unlikely to return to earlier levels. The Town may wish to consider an affordable housing bond or allocating existing funds from Town resources to use toward an affordable housing purpose, such as buying land or establishing a revolving loan program. Another potential use of affordable housing funds would allow the Town to purchase affordable units, which have received their certificates of occupancy (CO) but have not yet been purchased to a qualified homebuyer through the Community Home Trust program. Developers have indicated that the holding costs for developers waiting for these housing to be purchased can become a substantial burden. A number of other ideas were discussed, some of which the Board may wish to consider as part of a more comprehensive approach toward a long -term affordable housing strategy. These include up- zoning for density increases, particularly in key locations along public transportation routes. And, finally, creating or encouraging the creation of an affordable housing advocacy group —a private or non - profit coalition building effort to continue to keep the issue in the forefront and to promote local affordable housing needs within the community and to state and federal legislators.