19-390FILE REFERENCE FORM 1 19-390
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Rescinded by Ordinance No. 20-623 03/31/20 JR
WHEREAS, the City Council of the City of Denton, finds that available affordable housing
within the City limits contributes to a stronger economy and better quality of life for residents; and
WHEREAS, the City of Denton recognizes the need to support low-income households in
securing safe, sanitary and affordable housing; and
WHEREAS, the City of Denton recognizes that financial support of affordable housing
serves a public purpose; and
WHEREAS, the City of Denton has previously adopted resolutions authorizing an impact
fee incentive grant program which the City Council desires to replace with an Affordable Housing
Fee Grant Program; and
WHEREAS, pursuant to the housing program initiatives adopted by the City Council of
the City of Denton as part of the Consolidated Plan for Housing and Community Development,
staff has developed a fee grant program to assist nonprofit housing developers and low-income
homeowners with the building permits and utility fees, including road, water and wastewater
impact fees for homes which qualify as affordable housing; NOW, THEREFORE
' S " E ' C'1'1('),N 1. The City Council approves the Affordable Housing Fee Grant Program
Guidelines which are attached hereto and made a part of this ordinance for all purposes and
authorizes the City of Denton Community Development Division to administer this program. The
attached guidelines shall replace and supersede any previous impact fee incentive grant program
guidelines adopted by the City Council.
SECTION 2. The City Council authorizes the expenditure of general funds by the
Community Development Division, in the amount of $12,000 or less in the form of a grant of
development fees for each single-family unit qualifying in accordance with the Affordable
Housing Fee Grant Program Guidelines.
SECTION 3. On an annual basis, the City Council will approve a budget of $75,000
annually for the Affordable Housing Fee Grant Program.
SECTION 4. This ordinance shall become effective immediately upon its passage and
SECTION
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I'lleri'lotioll to aplo )rve this ordfice ia�iwas made b and seconded
by the ordinance was passed and approved by the
................... . ..... .......
following Vote . . ........ .
Aye
Chris Watts, Mayor:
Gerard Hudspeth, District 1:
Keely G. Briggs, District 2:
Don Duff, District 3:
John Ryan, District 4:
V
Deb Armintor, At Large Place 5:
V/
Paul Meltzer, At Large Place 6:
V
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY:
Nay Abstain Absent
day of 2019�
A", 5k Ie L
V
....................
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CHRIS WA'-1--1 S, MAYOR
CITY OF DE NTO N
AFFORDABLE HOUSING FEE GRANT PROGRAM DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM GUIDELINES
SECTION 1: PURPOSE
The City of Denton seeks to encourage and maintain community diversity by ensuring housing
choice and homebuyer opportunities, to meet the needs of people of different ages, incomes
and/or social and economic backgrounds, and different household and family structures.
Incentives for affordable housing help to:
• Reduce the housing cost burden for low-income families;
• Increase homeownership opportunities for low-income families; and
• Encourage preservation of existing and construction of new affordable housing in Denton.
The purpose of the Affordable Housing Fee Grant Program (the "Program") is to support the
development of quality, accessible, affordable housing for low-income families through a grant
to assist Qualified Nonprofit Developers and homeowners that qualify for city housing programs
with the costs of building permits and utility fees, including road, water and wastewater impact
fees.
SECTION 2: SCOPE
This document sets forth the administrative process for the application, implementation, and
monitoring of the Program, which includes but is not limited to the following:
A. Authorize the Program to assist Qualified Nonprofit Developers and homeowners that
qualify for city housing programs with the cost of building permits and utility fees,
including road, water and wastewater impact fees;
B. Require execution of agreements between the City and Qualified Nonprofit Developers
and/or homeowners to ensure compliance with the Program;
C. Establish eligibility requirements that require the Affordable Housing units be sold to and
owned by a low-income individual or family;
D. Establish compliance requirements for a minimum of ten years for Affordable Housing
units;
E. Set forth a process for submitting a grant request to the City;
F. Establish monitoring requirements for the Program participants and authorize actions in
the event of non-compliance; and
G. Require Program participants to submit periodic reports to evaluate the effectiveness of
the Program.
SECTION 3: INCENTIVES OFFERED TO AFFORDABLE HOUSING QUALIFIED NONPROFIT
DEVELOPERS AND LOW-INCOME HOMEOWNERS
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CITY OF DE NTO N
AFFORDABLE HOUSING FEE GRANT PROGRAM DENTON
Grants available for the Program shall be limited to an amount set by City Council on an annual
basis. All Program grants will be approved or denied solely at the discretion of the City of Denton,
subject to the Program requirements and the availability of funds.
Qualified Nonprofit Developers of Affordable Housing units and homeowners eligible for housing
programs supported by the City's Community Development Block Grant ("CDBG") and HOME
Investment Partnership ("HOME") funds may be eligible for a grant award for some or all of the
following fees up to a maximum per unit cost of $12,000, including but not limited to:
• Building permit fees including plan review, building permits, temporary power, and
fence permits;
• Roadway Impact Fees; and
• Utility Fees including water and wastewater impact fees.
SECTION 4: ELIGIBILITY
In order to qualify for the Program, the following criteria must be met:
A. QUALIFYING ENTITY OR HOMEOWNER
1. Must be a Qualified Nonprofit Developer of Affordable Housing as defined in SECTION
6: DEFINITIONS; or
2. Must be a low-income homeowner eligible for housing programs supported by the
City's CDBG and HOME funds.
Qualified Nonprofit Developers will not be eligible for the Program if the entity owes
city ad valorem taxes, other city debt, or has code or other accessibility violations on
any previous units or projects. Homeowners will not be eligible for the Program if the
homeowner owes city ad valorem taxes or other city debt.
B. AFFORDABILITY REQUIREMENTS
1. The price set for the Affordable Housing unit must meet affordability requirements as
defined in SECTION 6: DEFINITIONS.
C. OCCUPANCY REQUIREMENTS
1. Must be low-income individuals or families as defined in SECTION 6: DEFINITIONS.
2. Homebuyer(s) and homeowner(s) must live in the affordable housing unit for at least
ten years.
D. PROPERTY/UNIT REQUIREMENTS
1. The Affordable Housing unit must be a new single-family residential unit developed
by a Qualified Nonprofit Developer and/or a new or existing single-family residential
unit qualifying for a housing program supported by the City's CDBG or HOME funds.
CITY OF DE NTO N
AFFORDABLE HOUSING FEE GRANT PROGRAM DENTON
2. The Affordable Housing unit must meet the requirements of all applicable City Codes
and regulations.
E. GEOGRAPHIC LIMITATIONS
The City of Denton seeks to encourage an equitable distribution of Affordable Housing in
all parts of Denton.
1. Qualified Nonprofit Developer(s) seeking the Affordable Housing Fee Grant must
demonstrate it has made reasonable attempts to reduce the isolation of income
groups within geographic areas by expanding and disbursing affordable housing
throughout the City of Denton. Preference will be given to projects that promote the
spatial deconcentration of affordable housing opportunities. Projects that do not
promote an equitable distribution of Affordable Housing may be eligible for the
Program if the Qualified Nonprofit_Developer demonstrates that there are limited
options for geographic deconcentration due to limited availability of affordable
parcels of land, owner choice for location of home, projects retain property already
used for Affordable Housing, etc.
SECTION 5: AFFORDABLE HOUSING FEE GRANT APPLICATION PROCESS
Qualified Nonprofit Developers and homeowners requesting to participate in the Program must
submit a completed Affordable Housing Fee Grant Developer Application to the Community
Development Division and enter into an agreement with the City of Denton that require the
applicant and the Affordable Housing unit to comply with the Program.
A. To obtain certification of agreement compliance ("Authorization Form") the following
documentation is required:
1. Completed Affordable Housing Fee Grant Program Application for each Affordable
Housing Unit project property location must be provided to the Community
Development Division at least 2 weeks prior to application for permits. The fees
eligible under the Program are:
a. Building Permit Fees:
i. Plan review;
ii. Building permits;
iii. Temporary power; and
iv. Fence permits;
b. Roadway Impact Fees, when applicable; and
c. Utility Fees, including Water and Wastewater Impact Fees.
2. The Program grant approval will be based upon verification that the proposed
Affordable Housing unit and the applicant are eligible for the Program.
3. After review by City staff for compliance with the Program, an agreement, note, and
deed of trust will be prepared by Community Development and approved by the City
Manager.
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CITY OF DE NTO N
AFFORDABLE HOUSING FEE GRANT PROGRAM DENTON
4. Upon the execution of the required documents by the applicant, the City Manager will
execute the documents and the Community Development Division manager will
provide an Authorization Form to the Building Official identifying the service
addresses of the Affordable Housing units selected to receive grants. The
Authorization Form must be made before the issuance of a building permit authorizing
the start of construction of the Affordable Housing unit.
B. Program grant funds will not normally be provided directly to the applicant. The amount
of applicable grant funding will be transferred by the Community Development Division
to the appropriate department upon issuance of an Authorization Form. If permit fee
payments have been made by the applicant on the units that have been awarded a grant,
the Community Development Division will process a reimbursement.
C. If the Affordable Housing unit does not comply with the agreement, note, and deed of
trust during the term of the agreement, the applicant is required to repay the grant to the
City. Once the grant is approved, to avoid repayment of fees, the Affordable Housing
unit(s) must meet the minimum requirements, including:
1. Complete repair/renovation/construction within 15 months of the issuance of the
Authorization Form.
2. Provide prior to sale:
a. Verification of the homebuyer's income eligibility;
b. Copy of new home contract indicating final cost of the single-family residential
unit; and
c. Copy of Homebuyer's Mortgage Commitment Letter.
3. Unit will be subject to property inspections.
4. Applicant will provide records and reports requested by the City. Income information
for new homeowners over the course of the agreement must be available for review
by the Community Development Division staff.
SECTION 6: DEFINITIONS
The following words, terms, phrases, when used in these Affordable Housing Fee Grant Program
Guidelines, shall have the meanings ascribed to them in this section, except where the context
clearly indicates a different meaning:
A. Affordable Housing:
Affordable Housing means owner -occupied single family residential homes owned or sold
to a low-income family which housing qualifies for the City of Denton CDBG and HOME
housing assistance programs or has a purchase price and an estimated appraised value at
acquisition that does not exceed value limits established and published annually by U.S.
Department of Housing and Urban Development in Section 92.254(a)(2)(iii) of the Final
Rule of the HOME regulations, as amended.
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CITY OF DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM
B. Single Family Residential:
A stand-alone single -unit family residence detached from other housing structures, and
does not include a multi -family residential dwelling.
C. Qualified Nonprofit Developer:
1. A nonprofit organization that develops housing for low-income individuals and
families as a primary activity to promote community -based revitalization of the
municipality; or
2. A nonprofit corporation described by 26 U.S.C. Section 501(c)(3) that:
a. has been incorporated in this state of Texas for at least one year;
b. has a corporate purpose to develop affordable housing that is stated in its articles
of incorporation, by-laws, or charter;
c. has at least one-fourth of its board of directors residing in Denton; and
d. engages primarily in the building, repair, or sale of housing for low-income
individuals and families.
D. Low -Income Individuals and Families:
An individual or family whose annual income is less than eighty percent (80%) of the area
median income, with allowable adjustments, as determined and annually updated by U.S.
Department of Housing and Urban Development.
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