§ 17.40.790. Requirements for inclusionary housing.

A.

Construction. The set aside for affordable or workforce housing shall be:

	Rental at 60% MHI or less	Rental at Greater than 60% MHI to 80% MHI	Rental at Greater than 80% MHI to 100% MHI (available in the UZO only)	For-sale at Greater than 60% MHI to 80% MHI	For-sale at Greater than 80% MHI to 100% MHI (available in the UZO only)
Single-family and Two-family uses	12.5% of total residential units	15% of total residential units	17.5% of total residential units	10% of total residential units	15% of total residential units
Multi-family uses less than 3 stories	12.5% of total residential floor area	15% of total residential floor area	17.5% of total residential floor area	10% of total residential floor area	15% of total residential floor area
Multi-family uses (3 to 6 stories)	10% of total residential floor area	12.5% of total residential floor area	15% of total residential floor area	n/a	n/a
Multi-family uses (≥ 7 stories)	7.5% of total residential floor area	10% of total residential floor area	12.5% of total residential floor area	n/a	n/a
The office of economic opportunity and empowerment with assistance from the finance department may approve a mixture of MHI levels, provided the mixture is equivalent to the set asides above. The equivalency of the mixture of MHI levels and the approval shall be documented in the inclusionary housing plan.
For the purposes of this Article, the residential floor area shall be the net leasable residential floor area.

 

B.

In Lieu Construction.

1.

In lieu of meeting the inclusionary housing incentives on site, construction at the same rates included in subsection A of this section may be provided within the following distances from the development that is providing inclusionary housing:

i.

One mile along the corridor, if the development that is providing inclusionary housing is on a multimodal corridor designated in the Major and Collector Street Plan, excluding expressways, freeways and ramps.

ii.

A half mile, if the development that is providing inclusionary housing is not on a multimodal corridor designated in the Major and Collector Street Plan, excluding expressways, freeways and ramps.

iii.

In lieu construction shall not be permitted at an alternate location if the inclusionary housing plan demonstrates that the alternate location's census tract market rate prices or rental rates for comparable units are affordable to a household at 100% MHI.

2.

Use and occupancy permits for the affordable and/or workforce units shall be issued prior to the issuance of any use and occupancy permit for principal project.

C.

In Lieu Contribution. There is hereby established a housing incentives fund to be maintained as an administrative account by the finance department for the purpose of funding the incentives grant program. In lieu of meeting the inclusionary housing incentives for rental units on site, prior to the issuance of building permits, an in lieu contribution may be provided to the housing incentives fund as follows:

Within the UZO	Outside of the UZO
Per square foot equivalent of 50% of the affordable sales price at 100% MHI for Davidson County 12.5% of the total residential floor area in a rental project.	Per square foot equivalent of 50% of the affordable sales price at 80% MHI for Davidson County 10% of the total residential floor area in a rental project.
The affordable sales price shall be determined by the Office of Economic Opportunity and Empowerment with assistance from the Finance Department annually based on:  a. A maximum down payment of 5.0%,  b. Current Year MHI thresholds adjusted for household size published by HUD,  c. Prior six-month average rate of interest based on the Fannie Mae Yield on 30-year mortgage commitments (price at par) plus one-half point (0.5%) spread,  d. 30-year mortgage term,  e. Any homeowner fees, taxes and insurance, and  f. Typical unit size.

 

(Ord. BL2016-133 § 1, 2016)