HomeMy WebLinkAbout2020-24 Amending Resolution 2006-131
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P I.
RESOLUTION NO.2020-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
AMENDING RESOLUTION 2006-13
RECITALS:
A. WHEREAS, The City of Ashland recognizes that a healthy and sustainable community is
contingent on diversity, equality, and a sense of community among its residents; and
B. WHEREAS, The City of Ashland values the ability of people of all ages and abilities, across
a variety of diverse backgrounds and professions, to live in our community and have equal
and fair housing rental and purchase opportunities in the City; and
C. WHEREAS, The City of Ashland understands that ongoing efforts to improve the affordable
housing program are essential to ensure the availability of moderately -priced dwelling units
that families and individuals earning 60 to 120 percent of the area median income (AMI) can
afford; and
D. WHEREAS, in 1993, the City of Ashland passed Resolution 1993-39 which established
affordable housing income levels and rental and purchased cost levels; and
E. WHEREAS, in 2005, the City of Ashland passed Resolution 2005-46 which amended
Resolution 1993-39 and required provisions for homeowner and maintenance fees to be
included in the affordability calculations for its affordable housing program; and
F. WHEREAS, in 2006, the City of Ashland passed Resolution 2006-13 which amended
Resolution 2005-46 and contained provisions establishing rent levels or purchase price levels
for households earning 60%, 80% 100% or 120% of the area median income (AMI); and
G. WHEREAS Resolution 2006-13 established rent levels for households earning 60% Area
Median Income (AMI) using a formula based on 23% of a qualifying families income, and
the current resolution seeks to replace the maximum rental amount formula with the U.S.
Department of Housing and Urban Development (HUD) HOME program rent index for
households earning 60%AMI and 80%AMI in the Medford -Ashland Metropolitan Service
Area, and allow for the Low Income Housing Tax Credit (LIHTC) rent index to be applied
to rental units developed under the LIHTC program; and
H. WHEREAS, resolution 2006-13 required Principal, Interest, Taxes and Insurance
RESOLUTION NO.2020-24
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(PITI) and Home Owner Association (HOA) Dues to be included in the maximum housing
costs of eligible households in the affordability calculations for the purchasing part of its
affordable housing program; and
I. WHEREAS resolution 2006-13 established a maximum resale purhace price formula which
including Principal, Interest, Taxes and Insurance (PITI), Home Owner Association Dues,
and "percent of household income". This resale formula created significant variation in
forcasting future sales prices, and the current resolution seeks to replace the maximum resale
purhace price formula with a fixed-rate (1.5%) annual appreciation formula which provides
greater predictability and clarity in future resale value; and
J. WHEREAS the City of Ashland City Council is able to reduce the costs of building
affordable housing by deferring the amount of development fees and System Development
Charges, and the current Resolution establishes the terms of affordability and recapture
provisions for deferred fees and charges for qualified ownership units that remain in the
affordable housing program for at least 30 years but less than 60 years.
NOW THEREFORE THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
Resolutions 1993-39, 2005-46, and 2006-13 are hereby amended in their entirety as follows:
SECTION 1. GENERAL ELIGIBILITY RENTAL AND PURCHASED HOUSING
1.1 All qualifying ownership or rental units required to be affordable through density
bonuses, annexation, zone change, condominium conversion, or other land use approval under
the Ashland Land Use Ordinance ALUO shall not be eligible to receive a waiver of the
Community Development and Engineering Services fees associated with the development of said
affordable units unless a waiver is approved by the Ashland City Council.
1.2 All qualifying ownership or rental units required to be affordable through density
bonuses, annexation, zone change, condominium conversion, or other land use approval under
the ALUO shall be eligible to receive a deferral of the System Development Charges associated
with the development of said affordable units.
1.3 All qualifying ownership or rental units voluntarily provided as affordable to low income
households consistent with section 1.1 and 1.2 above shall be eligible for a System Development
Charge Engineering Service and Community Development Fee deferral or waiver without
obtaining approval from the Ashland City Council.
RESOLUTION NO.2020-24
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1.4 System Development Charges, Engineering Services and Community Development Fees,
may be deferred or waived when units are sold or rented to low income persons. For purposes
of this subsection, "low-income persons" means:
a. With regard to rental housing persons with an income at or below 60 percent of the
area median income as determined by the United States Department of Housing and
Urban Development, and
b. With regard to home ownership housing and lease to purchase home ownership
housing persons with an income at or below 80 percent of the area median income as
determined by the United States Department of Housing and Urban Development. ,
1.5 Affordable Housing Units covered under this Resolution can only be sold or rented to
occupant households from the same income category as the original purchasers or renters for a
period of not less than 30 years for ownership units, or 60 years for rental units, or as required
through the condition of approval for a unit required to be affordable through a land use
approval.
2. RENTAL HOUSING - Units designated for affordable rental housing in developments
which have qualified for density bonuses, annexation, zone change, condominium conversion, or
other land use approval under the ALUO shall be rented to individuals or households whose
annual income is consistent with the target income identified in the planning approval. Incomes
shall be qualified at either the 60% or 80% median income levels for households in the Medford
- Ashland Metropolitan Statistical Area (MSA)_ This figure shall be known as the "qualifying
household income" and shall be determined by the City's Department of Community
Development in May of each year from the annual family incomes published by the U.S_
Department of Housing and Urban Development HUD for the Medford Ashland Metropolitan
Service Area MSA.
2.1 Area Median Income — 60% and 80%. The rent charged for &ae-lraffordable rental housing
benefiting households earning up to and including 60% Area Median Income (AMI), or 80%
AMI or less, shall comply with the maximum rents based on number of bedrooms in the unit(s)
as established by U.S. Department of Housing and Urban Development (HUD) for the HOME
program within the State of Oregon.
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a. For the purposes of the Ashland Affordable Housing Program, the HOME program
"Low Rent" limit shall apply to units targeted toward households earning 60% of Area
Median Income or less.
b. For the purposes of the Ashland Affordable Housing Program, the HOME program
"High Rent" limit shall apply to units targeted toward households earning greater than
60% Area Median Income up to and including 80% of Area Median Income.
c. For the purposes of the Ashland Affordable Housing Program Low -Income Housing
Tax Credit (LIHTC) assisted affordable rental housing units, subject to rent control
through the LIHTC program, may utilize the rent limits established by the LIHTC
program as an alternative to the rent levels established by the HOME program. Upon
completion of the LIHTC compliance period the applicable maximum rent levels
established in either 2.1.a or 2. Lb shall apply through the remaining term of affordability.
d.The City's Department of Community Development shall maintain a table of maximum
rent levels based on number of bedrooms and qualifying household incomes in
compliance with the U.S. Department of Housing and Urban Development (HUD) for the
HOME program, and shall annually make available an updated table in May of each year.
e. Affordable housing projects developed under the Low -Income Housing Tax Credit
Program shall provide the City with the maximum rental amounts for covered affordable
units on an annual basis throughout the established period of affordability.
2.2 Owner s Obligation. The owner of the affordable rental housing shall sign a 60-year
agreement or longer depending on the period of affordability established through the -land use
approval under the Ashland Land Use Ordinance with the City of Ashland that guarantees these
rent levels will not be exceeded and that the owner will rent only to households meeting the
income limits. The agreement shall bind subsequent owners who purchase the rental housing
during the established period of affordability. The agreement shall also require the owner to
allow the unit to be rented to HUD Section 8 qualified applicants and agree to accept rent
vouchers for all of the affordable units when applicable. The City shall file the agreement for
recordation in the County Clerk deed records Jackson County Oregon.
2.2.1 Certification of qualifying occupants. The owner of record or the designated agent of the
record owner shall annually, or at any change of occupancy, file with the City of Ashland a
signed certificate stating the occupants of the record owner's rental housing units continue to be
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qualified households or are a household that qualified at its initial occupancy within the meaning
of this Resolution and any amendment made to it. The City of Ashland shall provide the record
owner or the record owner's agent,with access to a form to complete and sign to comply with
this provision.
3. PURCHASED HOUSES — QUALIFYING. Units designated for affordable housing
available for purchase in developments which have qualified for density bonuses, annexation,
zone change, condominium conversion, or other land use approval under the ALUO must satisfy
two criteria.
3.1. They shall only be sold to occupant households whose:
a. Annual income is consistent with the target income identified in the land use approval
under the Ashland Land Use Ordinance for the development. Incomes shall be qualified
at the applicable 60° 80%, 100%, or 120% median income levels for households based
on number of people per household as adjusted annually by the Department of Housing
and Urban Development for the Medford - Ashland Metropolitan Service Area.
i. The maximum monthly payment for a covered unit shall be established to not
exceed the affordability limits, established; by average household size by the
covered units number of bedrooms as indicated in following table:
Studio 1-person household income for the designated income level
1 Bedroom 2-person household income for the designated income level
2 Bedroom 3-person household income for the designated income level
3 Bedroom 5-person household income for the designated income level
Households with a greater or lesser number of occupants shall remain eligible for
covered units but the sale price shall not be adjusted due to household size above
the limits established above.
b. Net assets, excluding pension plans and IRA's and excluding the down payment and
closing costs, do not exceed $25,000 for a household or $175,000 if one household
member is 65 years old or older. The asset limitations herein shall increase annually per
the Consumer Price Index for All Urban Consumers, West Region (All Items), as most
recently published by the Bureau of Labor Statistics.
c. Maximum initial purchase price shall be determined upon entering the affordable
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housing program. The formula will not exceed more than 30% of the monthly income for
the target income level indicated in 3.1 (a)(i) on total housing costs which includes and
PITI and any homeowners or regular maintenance fees. The formula will assume an
interest rate that is consistent with the Oregon Bond Rate Advantage program as updated
by the State of Oregon Housing and Community Services Department.
d. Maximum resale price will be calculated using the current seller's initial purchase
price plus an additional 0.125% of said initial purchase price for each full month the
current seller has owned the home. .
3.2. They shall remain affordable as follows:
a. The purchasers of the affordable housing units shall agree to the City of Ashland
Affordable Housing Resale Restriction Agreement establishing a period of affordability
of not less than 30 years. After the completion of 30 years of affordability the
homeowner can sell the unit at market rate upon paying back the amount of deferred
System Development Charges (SDCs), Community Development Fee, and Engineering
Services Fee, including an assessment of inflationary cost impacts. The inflationary cost
impacts for deferred charges and fees shall be an annual assessment for each year the unit
was in the affordable housing program utilizing the Engineering News Record (ENR)
Construction Index for Seattle Washington inflation rate at the time of sale. In no event
will a purchaser be required to sell the unit subject to the aforementioned Agreement for
less than his or her original purchase price plus any applicable closing costs and realtor
fees.
b. or housing financed by Farmer Home Administration FHA the affordability shall be
assured by the FHA's recapture provisions FHA which require sellers to repay FHA for
all the subsidies accrued during the period the sellers resided in the housing unit.
c. For purchasers of the affordable ownership housing units that maintain qualified
ownership beyond the required thirty (30) year term of affordabililty, the deferred System
Development Charges, Community Development Fee, Engineering Fee, and calculated
inflationary cost owed will be reduced by one thirtieth (1/30) for each year after the first
30 years of affordability, and upon completion of 60 years of affordability the deferred
charges and fees will be forgiven in their entirety.
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r
ght to Opt -In. Homeowners of affordable housing units covered under the Ashland
able Housing Program, which have a resale restriction covenant that references a prior
resolution, may voluntarily choose to amend the existing resale restriction covenant to be subject
to the terms of the current resolution, including maximum resale formula and fee recapture
assessments, effecteive on the date the resale restriction covenant is amended.
SECTION 2. Resolution 2006-13 is replaced in its entirety upon passage of this resolution.
SECTION 3. This resolution was duly PASSED and ADOPTED this � day of Dt
2020 and takes effect upon signing by the Mayor.
ATTEST:
210 /1w
Melissa Huhtala, City Recorder
'i^
SIGNED and APPROVED this �` ^ day of: Qa4:3V020.
L
(Ji hn Stromberg, Mayor
Reviewed as to form.
David H. Lohman, City Attorney
r � 4
RESOLUTION NO.2020-24
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