Agenda 05-11-2021; 15 - Options to Expand Affordable Housing Incentives and Opportunities

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3 MEMORANDUM TO: Board of County Commissioners FROM: James Bryan, Staff Attorney DATE: February 4, 2021 SUBJECT: Options for Increasing Affordable Housing in Orange County Through the Unified Development Ordinance ATTACHMENT(S): Affordable Housing Report, Incentives & Opportunities Chart, Framework Chart, Regulatory Process Chart, Survey Summary BACKGROUND: The County Attorney was asked to report to the Board on all available options to incentivize affordable housing in Orange County, focusing on potential changes to the Unified Development Ordinance. This report aims to build upon a similar response from October 2019 by providing a list of actionable items as well as incorporating feedback from the development community. James Bryan, the staff attorney who works most with the Planning Department was tasked with this item. While a list of seventeen actionable incentives and opportunities are included, staff sees four as being the most fruitful although some would be controversial and others would require assistance from the towns. In no particular order these are: First, the initiation of an updated comprehensive plan likely followed by the adoption of a more modern UDO. Second, seek expansion to existing special legislation to allow for an increased density bonus program allowing for payment in lieu of construction or donation of land. Third, initiate discussion with stakeholders in the Joint Planning Agreement ("JPA") and Water Sewer Management Planning Boundary Agreement ("WSMPBA") to allow exceptions for affordable housing. Fourth, revise major subdivisions to be an administratively reviewed process. The Incentives & Opportunities Chart is a compilation of seventeen potential options. The Framework Chart lists traditional regulatory or financial incentive, indicating the statutory limitations and comparison to other jurisdictions. The Regulatory Process Chart demonstrates the review process and the multiple decision points along the way. The Survey Summary describes the feedback from developers. Affordable housing is a ubiquitous issue that could seemingly endlessly benefit from further consideration. Some communities, most recently Apex, utilize outside consultants to provide guidance. The longstanding history of housing here and elsewhere also makes it a worthwhile topic for consideration under the lens of racial equity. While staff did receive feedback from the development community, much of that is anecdotal. At the Board's direction, staff can compile comparison data for abutting jurisdictions and seek more concrete financials. In addition to this report, on October 1, 2019 Michael Harvey, Current Planning Supervisor, provided a memorandum to the Board discussing the Development of Affordable Housing in Orange County, which addressed many of the same items found in this report. Mr. Harvey's report may be viewed here. Should the Board wish to further explore any of these seventeen items the County Attorney's office will work with the Planning Department to bring them forward as expeditiously as possible.