COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 180721
Requiring that projects which are primarily residential in
nature and are seeking economic incentives in the nature of the capture and
redirection, or abatement or exemption of taxes to contain a minimum of fifteen
(15) percent of the projects’ total number of units being deemed affordable for
households having incomes equal to or below seventy percent (70%) of the median
income for all households within Kansas City, Missouri. ** This item will be
held off the agenda**
WHEREAS, in November, 2017, the City Council
passed unanimously Resolution No. 170825 that directed the City Manager to
provide information on the overall state of housing policy at the federal,
state and local levels; and
WHEREAS, Resolution No. 170825 also directed the
development of a report on the overall state of housing resources, housing
policy, programs and funding options for the City, including the role of
affordable housing in the development of the City; and
WHEREAS, in May, 2018, the City Council passed
Ordinance No. 180370, establishing a definition of “affordable housing” for
purposes of implementing the scoring system for certain projects seeking
certain economic incentives; and
WHEREAS, the
City Council recently mandated a minimum number of affordable units be required
as a part of their approval of financial incentives and tax abatement for the
construction of new housing units in the City; and
WHEREAS, the City Council continues to recognize
the need for the creation of affordable housing units, particularly for households
earning incomes below the median income
for all households within Kansas City, Missouri, as estimated and reported by
the American Community Survey 5-Year Estimates; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That all development projects which are
primarily residential in nature and are seeking economic incentives in the
nature of the capture and redirection, or abatement or exemption of taxes for
the development of residential units are to be required, subject to Section 3
herein, to contain at least fifteen (15) percent of the total number of
residential units being created as units deemed affordable for households
having incomes equal to or below seventy percent (70%) of the median income for
all households within Kansas City, Missouri, as estimated and reported by the
American Community Survey 5-Year Estimates and that for each such development
project, the developer shall be required to execute an agreement to rent those
residential units deemed affordable to persons or families whose household
incomes are equal to or below seventy percent (70%) of the above-described
median income throughout the period of time that the development is receiving
any benefit from the economic incentives granted.
Section 2. That the definition of affordable housing for
the purposes of this ordinance is as follows: a household having income equal
to or below seventy percent (70%) of the median income for all households
within Kansas City, Missouri, as estimated and reported by the American
Community Survey 5-Year Estimates, as updated from time-to-time, would be able
to afford if it were to expend not more than thirty percent (30%) of such
income for the mortgage or rent, including other housing expenses such as
property taxes, insurance, and utilities.
Section 3. In the event a project developer is unable or
unwilling to meet the affordable housing requirement established in Sections 1
and 2 of this ordinance, the project developer shall make a payment in lieu of
the affordable housing unit provision to the Shared Success Fund, as
established in Second Committee Substitute for Ordinance No. 160383, As
Amended.
Section 4. The City Council shall establish the in-lieu
per-unit cash payment on written recommendation by the City Manager and adopt
it as part of the City’s schedule of fees. The per-unit amount shall be based
on an estimate of the actual cost of providing an affordable housing unit using
actual construction cost data from current developments within the City and
from adjoining jurisdictions. At least once every three years, the City Council
shall, with the written recommendation of the City Manager, review the per-unit
payment and amend the schedule of fees.
Section 5. For purposes of this ordinance, affordable
housing shall comply with the following criteria:
(a) That all units
qualifying as affordable housing shall be on the principal project site and
shall not be off site from the project.
(b) That affordable
housing units be mixed with, and not clustered together or segregated in
any way from, market-rate units.
(c) That all units
qualifying as affordable housing either be at least one-bedroom units in size,
or be equal to or share the same size as at least 25 percent of units to be
constructed on the project site.
(d) If the project
development contains a phasing plan, the phasing plan shall provide for the
development of affordable housing units concurrently with the market-rate
units. No phasing plan shall provide that the affordable housing units built
are the last units in an Affordable Housing Development.
(e) The exterior
appearance of affordable housing units shall be made similar to market-rate
units by the provision of exterior building materials and finishes
substantially the same in type and quality.
(f) The project
developer must covenant with City and successors in interest that the units
remain affordable for a period of not less than the entire duration of time
during which the project developer or its successors in interest receive tax
abatements or redirections from the City and related taxing jurisdictions.
Section 6. That this
ordinance shall be reviewed by the City Council not later than two years from
the effective date of this Ordinance with the review of the minimum percentage
of the total number of residential units being created as units deemed
affordable for households having incomes equal to or below seventy percent (70%)
of the median income for all households within Kansas City, Missouri, as
estimated and reported by the American Community Survey 5-Year Estimates.
_____________________________________________
Approved as to
form and legality:
___________________________________
Galen Beaufort
Assistant City
Attorney