10-CPA-05 Affordable Housing Plan
Town of Cary, North Carolina
Comprehensive Plan Amendment Staff Report
10-CPA-05 Adoption of the 2020 Affordable Housing Plan
Town Council
October 28, 2010
Amendment Request
This is a request to adopt the 2020 Affordable Housing Plan as an additional element of the Comprehensive Plan. The intent of the 2020 Affordable Housing Plan is to provide a comprehensive, 10-year guide for the development of a townwide affordable housing program with related policies and ordinances. If adopted, it will supersede the existing Town of Cary Affordable Housing Plan adopted May 11, 2000; therefore, staff also requests that upon adoption of the 2020 Affordable Housing Plan, it is referenced henceforth in the Comprehensive Plan as such.
Cary’s Comprehensive Plan is a compilation of many separate plans that together describe the Town’s official vision for Cary in the coming years. The plans that make up the Comprehensive Plan address issues such as growth management, land use, transportation, historic resources and open space preservation.
BACKGROUND
In 1998, the Cary Town Council recognized that the high level of growth and development that had occurred since the 1980s may have impacted the accessibility and affordability of housing in the community. The Town Council recognized the value and benefits of providing affordable housing options for many citizens living and working within the town limits of Cary and directed the formation of a task force to undertake a community-wide population and housing needs assessment. Based on the assessment, the task force recommended the development of an Affordable Housing Plan to Town Council and council adopted the existing Town of Cary Affordable Housing Plan on May 11, 2000. The Plan included an analysis of the Town of Cary’s housing market, goals, and strategies to preserve and create affordable housing.
Since the adoption of the Plan in 2000, the Town of Cary has since made considerable strides towards preserving and creating affordable housing for low- and moderate-income individuals and families. However, further appreciation in housing values since 2000 has significantly limited housing opportunities for many of Cary’s working residents. In 2008, in reaction to community concerns, the Cary Town Council approved and funded the preparation of the Cary 2020 Affordable Housing to provide a comprehensive, coordinated approach to affordable housing.
In June 2008, the Town hired Swiger Consulting, Inc., a planning, economic and community development consulting firm based in Stroudsburg, Pennsylvania as the prime consultant to prepare the 2020 Affordable Housing Plan. The principal investigator/project manager is Dr. Ernest Swiger and includes two sub-consultants: Dr. Ned Murray, Professor and Associate Director of Florida International University Metropolitan Center, Miami, Fla., and Carol Hertweck-Lowy, Housing & Community Development Services, Inc., Belvidere, N.J. The consulting team works under the guidance and direction of Town staff in the Planning Department. The Town’s project team is made up of staff from the Planning Department and a Stakeholder Advisory Group consisting of members representing the local government, financial industry, nonprofit organizations and a development and landscaping architecture firm. The Stakeholder Advisory Group provided guidance, valuable input and feedback in the development of the 2020 Affordable Housing Plan.
The planning process began in August 2008 with a kickoff tour of the Town’s affordable housing developments and a work session with the Town Council. Since then, four work sessions with Town Council and one with the Planning & Zoning Board were facilitated to present the research findings, demonstrate the stratification of housing needs, and introduce implementation strategies to further expand affordable housing opportunities within the Town of Cary.
While the 2000 Affordable Housing Plan established eight (8) broad goals to increase affordable housing opportunities, completed an assessment of the housing inventory, and provided examples of best practices utilized across the country, it did not include specific implementation strategies to execute affordable housing initiatives. The methodology employed for the 2020 Cary Affordable Housing Plan involved a housing market analysis of the Town of Cary and surrounding Wake County to determine the key housing demand and supply factors and conditions that impact short- and long-term affordability. The study team conducted a series of interviews with Town officials and the community Stakeholder Advisory Group to gain a general overview and understanding of the Town’s evolving housing market with specific focus on the eight years since the adoption of the 2000 Plan. The study team then conducted a review of existing Town housing and planning documents, including the 2000 Town of Cary Affordable Housing Plan, Consolidated Housing and Community Development Plan, FY 2004 – FY 2009 and the Town of Cary Land Development Ordinance.
The proposed affordable housing implementation strategies of the 2020 Cary Affordable Housing Plan build on many of the goals initially proposed in the 2000 Plan. Many of the strategies and the full “Toolkit” included in the 2000 Plan can be supported by affordable housing “best practice” case studies throughout the country. Therefore, the aim of the 2020 Plan is to re-state many of these strategies within the current housing market context and propose a “package” of implementation strategies from a comprehensive policy, funding, and programmatic standpoint.
Additional Contract Services
In addition to the Swiger Consulting firm’s contract, they were also commissioned to complete the Town’s 2010 – 2014 Consolidated Housing and Community Development Plan and FY2010 Annual Action Plan. In order to receive the Community Development Block Grant (CDBG) funds, the U.S. Department of Housing and Urban Development (HUD) requires that the Town conduct adequate Citizen Participation prior to the adoption of both the Consolidated Plan and Annual Action Plan to gather information on the specific needs and projects of interest to our low- and moderate-income community. This process is accomplished through community meetings and at least one public hearing before the governing body. As in the past, the citizen participation process included input from Town departments, two advertised neighborhood meetings in the low- and moderate-income community, and a required public hearing before Town Council. It is through these citizen participation efforts that feedback from the community was solicited not only to assess its community development needs, but also the Town’s overall effort to address the myriad of housing needs.
The purpose of a comprehensive plan amendment is to evaluate the appropriateness of a proposed land use and/or other issue, need, or opportunity for the subject parcel(s) of land. Specific development requirements related to the technical aspects of land development, such as access, stormwater management, road improvements, utility line placement, road connectivity and landscape plantings, are not considered during the comprehensive plan amendment process. However, all of these development issues must be addressed for compliance with existing requirements specified in the Land Development Ordinance (LDO) when the site or subdivision plan is submitted. All such requirements can be found at http://www.amlegal.com/library/nc/cary.shtml.
Background Information
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Applicant |
Town of Cary | ||
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Agent |
N/A | ||
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Acreage |
N/A | ||
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General Location |
The Plan’s recommendations apply to all of Cary’s incorporated area and the Town’s extra-territorial jurisdiction (ETJ). | ||
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Hearings / Meetings |
Public Hearing |
Public Hearing |
Town Council |
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Existing Land Use Plan Designation |
N/A | ||
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Requested Land Use Plan Designation |
N/A | ||
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P&Z Recommendation |
The Board voted unanimously (6-0) to recommend approval of the plan after removal of the EHAP. | ||
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Town of Cary Staff Contact |
Tracy Stone-Dino, Senior Planner | ||
Subject Parcels
The Plan’s recommendations apply to all of Cary’s incorporated area and its extra-territorial jurisdiction (ETJ).
SUMMARY TABLE OF PROPOSED PLAN ACTIONS
The table below summarizes all the proposed implementation strategies set forth in this plan (full description of each strategy can be found in Chapter V of the draft plan).
The far-left column references the affordable housing goals. The middle column cites the affordable housing goals proposed in the 2020 Affordable Housing Plan and endorsed by Town Council. The far-right column indicates affordable housing implementation strategies not being recommended by Town Council, but may be considered in the future.
It should be noted that implementation of the actions will require, in most cases, numerous steps, including preparation of draft proposals for internal review (Legal, Budget, affected operating departments), review by Town boards and commissions, stakeholder reviews, and public comment periods. In many cases, such as when an amendment to the Town’s land development ordinance is proposed, one or more public hearings will be required before the proposal reaches council for their review and adoption.
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AFFORDABLE HOUSING GOALS (Adopted May 11, 2000) |
The following are affordable housing implementation strategies proposed in the 2020 AH Plan and endorsed by Town Council: |
The following are affordable housing implementation strategies proposed in the 2020 AH Plan that are not recommended by Town Council, but may possibly be considered in the future: |
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1. Provide a full range of housing choices for all income groups, families of various sizes, seniors, and persons with special challenges. |
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Stewardship Fee |
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2. Promote the preservation of the Town of Cary's existing housing stock through housing rehabilitation resources to maintain the affordable housing that already exists in the community. |
Owner-Occupied Housing Rehabilitation |
Rental Rehab Program |
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3. Facilitate the creation of a reasonable proportion of the Town of Cary's housing as affordable units through additional homeownership opportunities for individuals and families earning between 60% and 80% of the area median income and affordable apartments for individuals and families earning up to 60% of the area median income. |
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Inclusionary Zoning |
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4. Strive for innovation and partnerships in the creation of model ordinances, policies, and programs in the area of providing expanding housing opportunities for low- and moderate-income persons. |
Partner with nonprofit organizations |
Target Infill development |
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5. Facilitate the affordable housing activities of other entities within the Town of Cary, including construction of affordable housing units, rehabilitation of existing housing, homeownership training, and marketing of assistance programs. |
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Inclusionary Zoning |
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6. Encourage the location of high density housing within walking and convenient commuting distance of employment, shopping, and other activities, or within a short walk of a bus or transit stop, through "mixed use" developments, residences created on upper floors of nonresidential downtown buildings, and other creative strategies. |
Inclusionary Zoning | |
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7. Actively participate in the renewal of neighborhoods suffering from physical deterioration or from the inequitable distribution of public resources in the past. |
Partner with nonprofit organizations |
Target Infill development |
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8. Assure a quality living environment and access to public amenities for all residents, present and future, of the Town of Cary, regardless of income. |
Owner-Occupied Housing Rehabilitation |
Stewardship Fee |
NOTE: Please see the draft for full description of implementation strategies.
Applicable Comprehensive or Area Plan Requirements
A. Land Use Plan: N/A
B. Comprehensive Transportation Plan: N/A
C. Parks & Greenways Master Plan: N/A
D. Open Space and Historic Resources Plan: N/A
E. Affordable Housing Plan: The proposed affordable housing implementation strategies of the 2020 Cary Affordable Housing Plan build on many of the goals and strategies initially proposed in the 2000 Plan. The following are the Affordable Housing goals that will undergird the proposed implementation strategies:
1. Provide for a full range of housing choices for all income groups, families of various sizes, seniors, and persons with special challenges.
2. Promote the preservation of the Town of Cary’s existing housing stock through housing rehabilitation resources to maintain the affordable housing that already exists in the community.
3. Facilitate the creation of a reasonable proportion of the Town of Cary’s housing as affordable units through additional homeownership opportunities for individuals and families earning between 60% and 80% of area median income and affordable apartments for individuals and families earning up to 60% of the area median income.
4. Strive for innovation and partnerships in the creation of model ordinances, policies, and programs in the area of providing expanding housing opportunities for low- and moderate-income persons.
5. Facilitate the affordable housing activities of other entities within the Town of Cary, including construction of affordable housing units, rehabilitation of existing housing, homeownership training, and marketing of assistance programs.
6. Encourage the location of high density housing within walking and convenient commuting distance of employment, shopping, and other activities, or within a short walk of a bus or transit stop, through "mixed use" developments, residences created on the upper floors of nonresidential downtown buildings, and other creative strategies.
7. Actively participate in the renewal of neighborhoods suffering from physical deterioration or from the inequitable distribution of public resources in the past.
8. Assure a quality living environment and access to public amenities for all residents, present and future, of the Town of Cary, regardless of income.
F. Growth Management Plan: N/A
TOWN COUNCIL PUBLIC HEARING COMMENTS
No comments from the general public.
TOWN COUNCIL DISCUSSION
Council Robinson reiterated that Inclusionary Zoning was not being recommended by the Town Council.
CHANGES SINCE TOWN COUNCIL PUBLIC HEARING
There were no changes made to the draft plan prior to the Planning and Zoning Board public hearing on August 16, 2010.
CHANGES SINCE PLANNING AND ZONING BOARD PUBLIC HEARING
The second public hearing for the 10-CPA-O5 2020 Affordable Housing Plan took place on Monday, August 16, 2010.
There were four (4) organizational representatives who spoke in favor of the plan during the public hearing.
The Planning & Zoning Board expressed some concerns about the finalization of the draft and suggested to distinguish items being referenced as future resources and the strategies being endorsed.
The Planning & Zoning Board tabled their decision to forward agenda item to Town Council until the draft was finalized and comments from their discussion were addressed.
The 2020 Affordable Housing Plan was finalized and comments and suggestions from the Planning and Zoning Board were incorporated. The finalized plan was presented to P&Z at their September 20, 2010 meeting
Attached is the final copy of the 2020 Affordable Housing Plan.
CHANGES SINCE PLANNING AND ZONING BOARD MEETING
The 10-CPA-O5 2020 Affordable Housing Plan was presented to the board on Monday, September 20, 2010.
The changes and modifications to the 2020 Affordable Housing Plan was presented. The Planning and Zoning Board had a discussion in regards to the Employee Homeownership Assistance Program (EHAP) and its applicability to the plan. The discussion centered on whether to raise the qualifying income from 80% of the area median income (AMI) to 120% of the AMI to better link with existing home prices in Cary. The Planning and Zoning Board decided to vote on the changes to the EHAP separately from the remainder of the Affordable Housing Plan. The Planning and Zoning Board voted 5-1 to recommend increasing the qualifying income for the Employee Homeownership Assistance Program from 80% of the area median income to 120% of the area median income. The Board voted unanimously (6-0) to recommend approval of the remainder of the Affordable Housing Plan.
STAFF ANALYSIS
Following the discussion at the Planning and Zoning Board meeting, staff has further examined the intent and purpose of the Employee Homeownership Assistance Program. Staff has clarified that EHAP is an employee benefit and not an affordable housing program. Accordingly the recommendation to consider increasing the EHAP’s household income eligibility from 80% to 120% of the AMI has been deleted from the 2020 Affordable Housing Plan. If any future changes or amendments to the Employee Homeownership Assistance Program are to be proposed they will be presented to council as a separate request.
CRITERIA FOR CONSIDERATION IN REVIEWING COMPREHENSIVE PLAN AMENDMENTS
Section 3.2.2(B) of the Land Development Ordinance states that “Proposals to amend the Comprehensive Plan shall be evaluated based upon whether the amendment is necessary in order to address conditions including, but not limited to, the following:”
- A change in projections or assumptions from those on which the Comprehensive Plan is based;
Staff finds that the population data, average housing prices and other data that form the basis for the existing Affordable Housing Plan is significantly out of date.
- Identification of new issues, needs, or opportunities that are not adequately addressed in the Comprehensive Plan;
The recent financial crisis has caused permanent changes to the ways housing is developed and financed making it more difficult for lower income to obtain housing.
- A change in the policies, objectives, principles, or standards governing the physical development of the Town or any other geographic areas addressed by the Comprehensive Plan; or
- Identification of errors or omissions in the Comprehensive Plan.
STAFF RECOMMENDATION
Staff recommends that the Town Council adopt the Affordable Housing Plan update as revised.