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HomeMy WebLinkAboutR2008-023s:\our documcnts4esolu[ionsl08\impac[ fee guidelines.doc RESOLUTION NO A RESOLUTION ADOPTING NEW PROGRAM GUIDELINES TO REDUCE THE AMOUNT OF PER UNIT ASSISTANCE UNDER THE IMPACT FEE INCENTIVE GRANTS PROGRAM TO PAY WATER AND WASTEWATER IMPACT FEES FOR SINGLE FAMILY AFFORDABLE HOUSING RESIDENTIAL UNITS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council passed Resolution No. 98-052 on September 15, 1998 to provide for single family equivalent grants to pay water and wastewater capital recovery fees for thirty-nine affordable housing residential units constructed within the corporate limits of the city by non-profit corporations, provided the units comply with criteria for affordability, habitability, and other requirements established by the City; and WHEREAS, the City Council passed Resolution 2000-046 on September 5, 2000 and as required by Resolution No. 98-052 reviewed the Impact Fee Incentive Grant Program for Affordable Housing and has decided to extend the Program through the 1999-2000, 2000-2001 and for future fiscal years for which funding is allocated by the City Council; and WHEREAS, the Council deems it in the public interest to continue the Impact Fee Incentive Grant Program to promote affordable housing units within the City of Denton and wishes to revise the guidelines to reduce the level of assistance to each unit and thereby increase the number of units assisted under the program; NOW, THEREFORE, THE CITY COUNCIL OF THE C[TY OF DENTON HEREBY RESOLVES: SECTION 1. The attached City of Denton Impact Fee Incentive Grant Program Guidelines and Application Information reducing the level of per unit assistance to $2,500 are hereby approved and shall replace the previous Guidelines. SECTION 2. That save and except as amended hereby, all the sections, sentences, clauses and phrases of Resolutions No. 98-052 and Resolution No. 2000-046 shall remain in full force and effect. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~"-day of , 2008. PE R. McNEILL, MAYOR s:\our documentsUesolutions108\impact (ee guidelines.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. APPROVED AS TO LEGAL FORM: EDW[N M. SNYDER, CITY ATTORNEY B Y: City of Denton Impact Fee Incentive Grant Program Guidelines and Application Information 1. Purpose The Impact Fee Incentive Grant program is established to provide non-profit developers incentives to constmct affordable housing within the City of Denton, for the following purposes: a) To reduce the housing cost burden for low and moderate-income households; b) To provide home ownership opportunities for low and moderate-income households; c) To provide affordable housing for low-mod income, elderly and disabled households; d) To expand affordable housing within the corporate limits of the City of Denton to encourage further employment, increase sales tax revenues, to expand economic development, to enhance the City's property tax base; and e) To provide an incentive to constmct additional affordable housing units in Denton. 2. Definitions The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Affordable housing means owner-occupied single family homes that do not exceed City of Denton Homebuyer Assistance Program loan-to-income guidelines, or housing for low income renter households that costs less than 30% of household income. Low-income household means a household that has an annual income less than 80% of the median household income for the Dallas metropolitan area, adjusted for household size, as per the applicable federal definition or as per the findings of the United States Secretary of Housing and Urban Development, in accordance with 42 USC §12745. Non profit corporation means the equivalent of a "not-for-profit" corporation. It means a corporation no part of the income of which is distributable to its members, directors, or officers and which meets all the requirements of Article 1396 § 1.01, et seq., the Non-Profit Corporation Act, Vemons Annotated Civil Statutes. 3. Incentive Grant Standards A. Qualified Construction 1. New owner-occupied single family housing units, and/or 2. New renter-occupied, elderly or disabled multifamily housing Revised 10/07 B. Qualified Occupants 1. Low and moderate-income households (see Attachment A), and/or 2. Low-income elderly or disabled households C. Qualified Developers Non-for-profit corporations that develop affordable housing D. Qualified Areas 1. Properties within the corporate limits of the City of Denton, and 2. Properties subject to water/wastewater impact fees E. Maximum Housing Cost 1. Price cap ofowner-occupied unit(s) tied to the annual requirements of the City of Denton's Homebuyer Assistance Program or another comparable program. 2. Price cap ofrenter-occupied units may not exceed the fair market rents established by the Denton Housing Authority (DHA), or may not exceed fair market rents established by HUD for the Dallas/Fort Worth area. F. Dwelling Unit Longevity 1. Qualified owner-occupants must maintain ownership and reside in the unit receiving the grant for a minimum period often (10) years. 2. Eligible multi-family housing units must not exceed total housing cost requirements for a period of not less than ten (10) years. G. Other Requirements 1. The affordable housing unit must be served by existing City infrastructure and services. 2. The design and the construction of the affordable housing unit must meet the criteria established by the City of Denton Community Development Division for habitability, affordability, accessibility, water conservation, and energy efficiency. 5. Availability of Incentive Grants Grants available for the encouragement of the construction of affordable housing shall be limited to a maximum of $2,500 per unit. Grants will be available on a first come, first served basis, based upon the date of submittal of an application for an impact fee exemption. 4. Grant Approval Process A. The Impact Fee Incentive Grant Program will be administered by the City's Community Development Division. Revised 10/07 B. The Community Development Division is authorized to collect any information necessary to determine compliance with the grant requirements. C. Applicants must complete the application and execute the application certification prior to consideration for an exemption(s). D. Participant Developers must execute the following documents Attachments B, C, and D): i. Impact Fee Incentive Grant Agreement ii. Note iii. Deed of Trust F. Upon approval of the application and execution of the documents listed above, the City Manager will execute the Impact Fee Incentive Grant Agreement. The agreement will be forwarded to the Community Development Division. G. Upon execution of the Impact Fee Incentive Grant Agreement, submission of a receipt showing payment of the impact fees by the applicant developer, and completion of the approved unit, the City of Denton Community Development Administrator will initiate reimbursement of up to $2,500 to the developer. H. if [he applicant fails to finish construction of the affordable housing unit within fifteen months after certification, the Community Development Division Manager may revoke the award. IMPACT FEE INCENTIVE GRANT APPLICATION Applications will be reviewed by the Community Development Division on a first- come, first-served basis. Applicants for the Impact Fee Incentive Grant Program must submit the following information and an executed copy of the "Application Certification to: Community Development Division 601 E Hickory Street Ste B Denton, Texas, 76205 , Please ca11940-349-7235 for application assistance. Applicant Information , 1. Name, address and telephone number of the nonprofit organization 2. Name and telephone of executive director or contact person 3. List of Board of Directors members and officers including contact information. 4. Attach documentation of incorporation and 501(c)(3) nonprofit status including Articles of Incorporation, and letter from Secretary of State's Office showing corporation currently in good standing and any Revised 10/07 documentation from internal revenue service showing tax exempt, non- profit status. II. Development Information 1. Name of development 2. Location (Please provide a general location and a legal description of the property.) Attach a map showing the site. 3. Describe the current status of the project -zoning issues, property acquisition, site preparation, building plans, required permits/approvals, projected start of construction and completion dates. Attach documentation ofsite control. 4. Provide a project budget including a list of all financing sources. Attach copies of award letters or other documentation ofsecured financing. 5. Other: a. Number of affordable single family units b. Number of affordable multifamily units (elderly & disabled) c. Copy of building permit for project d. Copy of receipt for payment of impact fees III. Affordability Information 1. Describe how the organization will establish and enforce the required period of affordability for the unit(s). 2. What is the household income level of the project beneficiaries? 3. Describe the organization's household income verification procedures. 4. Attach a rent schedule for each affordable rental unit. 5. Attach a price schedule for each affordable owner unit. Revised 10/07 City of Denton Impact Fee Incentive Grant Program Application Certification I, the undersigned duly authorized representative of a Texas not-for-profit corporation which meets the requirements of the Texas non-profit corporation act, (the "Applicant") owner of the proposed residential developmentdescribedintheattacheddocuments, do hereby make application to the City of Denton for (amount). I do hereby and declare, certify and represent as follows: 1. The applicant intends to construct single family units to be sold to qualified homebuyers or construct and operate a unit multi-family rental residential development (the Development) to be located within the City of Denton, Texas at (address of unit) and desires that the City Provide grants of public funds to assist the Development from payment ofwater/wastewater impact fees in accordance with the Impact Fee Incentive Grant Program Guidelines. 2. The Applicant has received a copy of the Impact Fee Incentive Grant Program Guidelines with accompanying attachments, has reviewed the documents and hereby agrees to comply with all terms and provisions of the guidelines. 3. The Applicant has submitted a completed copy of the Impact Fee Incentive Grant Program Application and to the best of my knowledge, the information contained therein is true and correct. 4. The Applicant, if awarded an incentive grant, hereby agrees to execute a grant agreement (Attachment B) with the City of Denton for receipt of the grant. The Contract contains such provisions as are necessary to carry out the requirements of the Impact Fee Incentive Grant Program. 5. Before issuance of the Certification of Impact Fee Incentive Grant approval, the Applicant will execute a Note (Attachment C) payable to the City of Denton in the amount of the number of incentive grants granted times $2,500 and a Deed of Trust (Attachment D) and or restrictive covenant as required, sufficient to assure that the unit(s) receiving the incentive grant will be occupied by an eligible family with income below 80% of the median family income for the Dallas area and requiring an affordability period often years for owner-occupied housing and multifamily housing. If the unit is not occupied within 15 months of the issuance of the Certificate of Impact Fee Incentive Grant Program approval, the Applicant will not be reimbursed for the $2,500 per unit of impact fees paid on the project. Revised 10/07 Based on the foregoing, the Applicant requests that the City of Denton grant the requested exemption in accordance with the Impact Fee Incentive Grant Program Guidelines. WITNESS MY HAND THIS DAY OF APPLICANT BY: Title: Witness Date Revised 10/07