The purpose of this article is to establish guidelines and criteria for a housing assistance program(s) and ensure that future housing developments contribute to the attainment of providing owner occupied housing or rental housing that is affordable to very low, low and moderate income households within the Town of Davie. It is further the purpose of this article to require certain residential developments to provide inclusionary units, which may include bonus density units, or payment of an in-lieu fee to the affordable housing trust fund. The provisions contained within this article shall be evaluated by the town administrator or his designee annually after the effective date of this section for their effect in the facilitation of development, including that of affordable housing.

(Ord. No. 2008-17, § 4, 5-7-08; Ord. No. 2015-017, § 2(Exh. A), 6-10-15; Ord. No. O2020-002, § 2(Exh. A), 2-5-20)

The following words, terms and phrases when used in this section shall have the meanings ascribed to them as set forth below except where the context clearly indicates a different meaning.

1.

Affordable Housing Trust Fund. Trust fund established by the town for the purpose of collecting the required fees and disbursing funds for affordable housing programs in accordance with the criteria set forth.

2.

Affordable Housing Unit. Housing built with funding from federal, state, local or private resources and designated for affordable housing for moderate, low and very low income households.

3.

Affordable Owner Occupied Housing Unit. A dwelling unit for which the mortgage payment (including principal, interest, taxes and insurance) does not exceed thirty (30) percent of the gross income of the households that meet the income criteria and also meet the other requirements of the town's affordable housing programs.

4.

Affordable Renter Occupied Housing Unit. A dwelling unit for which the rental payment does not exceed thirty (30) percent of the gross income of the households that meet the income criteria and also meet the other requirements of the town's affordable housing programs.

5.

Appreciation. The difference between the original purchase price for a unit and the subsequent price for the sale of the unit by the eligible household minus real estate closing costs.

6.

Assets. All real estate property, stocks, bonds, and cash, or other liquid assets, that are not part of a retirement investment plan or pension plan.

7.

Town. Town of Davie, Florida.

8.

Casualty Reconstruction Units. Residential units which must be reconstructed as a result of damage caused by fires, floods, hurricanes or other acts of God.

9.

Density Bonus Unit. A unit as a result of an increase in density permitted above the per acre established by the Broward County Land Use Plan and the town's comprehensive plan, including the certified future land use map.

10.

Development. A housing development, including any mixed use residential development at one location including dwelling units for which approvals have been granted.

11.

Developer. Any person, firm, partnership, association, joint venture, corporation or any combination of said entities.

12.

Eligible Household. A household that qualifies for participation in an affordable housing program as designated in this article.

13.

First Time Home Buyer. A household in which no person has had ownership of a residence within the past three (3) years.

14.

Flexibility Unit. The difference between the number of dwelling units permitted within a flexibility zone by the Broward County Land Use Plan and the number of dwelling units permitted within the flexibility zone by the town's comprehensive plan, including the certified future land use map.

15.

Household. One person living alone or two or more persons sharing residency whose income is considered for the affordable housing program.

16.

Affordable Housing Program Policies and Procedures. Administrative policies and procedures shall be approved by resolution of the town council.

17.

Inclusionary Housing Plan. The plan submitted by the developer as part of site plan approval that, at a minimum, designates the number of inclusionary units within the residential development.

18.

Inclusionary Unit. A housing unit offered to eligible households and restricted by covenants.

19.

Low Income. Household income fifty-one (51) percent to eighty (80) percent of the median income of Broward County, Florida adjusted for household size.

20.

Market Rate Unit. A unit in a residential development other than those designated as an inclusionary unit.

21.

Moderate Income. Household income eighty-one (81) percent to one hundred twenty (120) percent of the median income of Broward County, Florida and adjusted by household size. Moderate income may also be defined as workforce income.

22.

Owner. The person or persons who hold title to the property as indicated in the Broward County Public Records and is the mortgagor.

23.

Primary Residence. The legal residence of the household and qualifies for homestead exemption, if an owner occupied unit.

24.

Resale Gap. The difference between the required resale price of an inclusionary unit and the original purchase price plus closing costs.

25.

Reserve Units. Additional permitted dwelling units that are equal to two (2) percent of the total number of dwelling units within a flexibility zone by the Broward County Land Use Plan.

26.

Residential Development. A development at one location of any single family, duplex, townhouse, condominium dwelling, or other residential unit in residential or mix-use developments. Residential development shall include the conversion of rental housing to condominiums or similar residential uses.

27.

Sales Price. The contracted price as designated at closing as the sale price of the residential unit.

28.

Shared appreciation. Percentage of the amount of the appreciation in the value of the affordable housing unit to be shared by the town and owner at the time of resale of the affordable housing unit.

29.

Very Low Income. Household income which is up to fifty (50) percent of the median income of Broward County, Florida, and as adjusted for household size.

30.

Workforce Income. Household income eighty-one (81) percent to one hundred twenty (120) percent of the median income of Broward County, Florida, and adjusted for household size. Workforce income may also be defined as moderate income.

(Ord. No. 2008-17, § 4, 5-7-08; Ord. No. O2020-002, § 2(Exh. A), 2-5-20)

A.

Applicability. All new residential developments of one hundred (100) units or more shall provide inclusionary units as follows:

(1)

Within the Transit Oriented Corridor (TOC) Future Land Use designation, the minimum rate of inclusionary units shall be fifteen (15) percent.

(2)

In all areas of the town outside of the Transit Oriented Corridor, the minimum rate of inclusionary units shall be twenty (20) percent.

(3)

Any required inclusionary units shall be restricted in a manner acceptable to the town attorney to occupancy by eligible households for a period consistent with county, state or federal guidelines, based upon source of funding, of no less than fifteen (15) years.

(4)

When determining the number of required inclusionary units, any decimal fraction less than 0.5 shall be rounded down to the nearest whole number, and any decimal fraction of 0.5 or more shall be rounded up to the nearest whole number.

B.

Density Bonus Units. Any additional units authorized and approved as a density bonus under this article shall not be counted in determining the required number of inclusionary units. Density bonuses shall be calculated in accordance with section 12-574 of this article.

C.

Reserved.

D.

Should the developer opt for payment of a fee in lieu of the inclusionary units, the fee shall be paid in accordance with the requirements of section 12-570 of this article.

E.

Reserved.

F.

After approval of the application for site plan approval but prior to issuance of a building permit for any affordable or market-rate residential units, a declaration of restrictive covenants, in the form approved by the town attorney's office, shall be recorded in the Public Records of Broward County, Florida.

G.

The town administrator or his designee shall maintain a listing of those approved projects that are available for eligible households.

H.

This article shall not apply to residential units that are designated as casualty reconstruction projects.

I.

This article shall not apply to housing developments constructed under designated state and/or federally funded programs for the construction of housing for low and moderate-income seniors.

J.

This article shall not apply to applications for new residential development submitted between May 1, 2011, and May 1, 2015, provided that such development is approved by the town no later than May 1, 2017 and constructed no later than May 1, 2022.

(Ord. No. 2008-17, § 4, 5-7-08; Ord. No. 2011-22, § 2(Exh. A), 6-15-11; Ord. No. 2013-6, § 2(Exh. A), 3-6-13; Ord. No. 2014-23, § 2(Exh. A), 12-2-14; Ord. No. O2020-002, § 2(Exh. A), 2-5-20)

A.

Inclusionary Housing Incentive Offer. Based on the information provided in the Inclusionary Housing Plan submitted pursuant to section 12-575 and any other relevant evidence, the town administrator, or designee, shall prepare an Inclusionary Housing Incentive Offer, providing an itemized list of incentives which in total would be sufficient to compensate the developer for the full amount of the opportunity cost associated with the development of the inclusionary units required by this article as compared to the development of the proposed market-rate units. The Inclusionary Housing Incentive Offer shall be provided to the applicant no later than fourteen (14) days prior to date that the planning and zoning board will first consider the development proposal.

B.

Allowable incentives. The Inclusionary Housing Incentive Offer may include any of the following incentives:

(1)

On parcels designated for residential densities five (5) dwelling units per gross acre or more only, residential density bonuses may be offered as follows:

(a)

Five (5) bonus market rate units for each very low income household unit.

(b)

Three (3) bonus market rate units for each low income household unit.

(c)

One (1) bonus market rate unit for each moderate income household unit.

(2)

Reduction or waiver of town development review fees.

(3)

Reduction or waiver of town building permit fees.

(4)

Reduction or waiver of town water or sewer utility connection fees.

(5)

Reduction or waiver of town impact fees.

(6)

Expedited review of town development applications and building permit applications.

(7)

Expedited building inspection services.

(8)

Town financial contributions from appropriate revenue sources, such as the Affordable Housing Trust Fund, Community Development Block Grant and State Housing Initiative Partnership funds.

(9)

Variances, special permits, design waivers and similar actions approved by Town Council.

C.

Final reconciliation of requirements and incentives. As part of the review of the site plan or other relevant development application involving compliance with this article, the town council shall consider the Inclusionary Housing Incentive Offer and incorporate the offer into the conditions of approval, modify the offer as otherwise authorized by this article or reject the offer. If for any reason the final Inclusionary Housing Incentive Offer is insufficient to fully compensate the developer for the amount of inclusionary housing units required by this article, the town council shall waive all or part of the inclusionary housing requirements set forth in section 12-573.A as necessary to ensure that the developer is not required to provide inclusionary housing units without compensation.

(Ord. No. O2020-002, § 2(Exh. A), 2-5-20; Ord. No. O2021-030, § 2(Exh. A), 11-3-21)

Editor's note— Ord. No. O2020-002, § 2(Exh. A), adopted Feb. 5, 2020, repealed the former § 12-574 and enacted a new § 12-574 as set out herein. The former § 12-574 pertained to density bonuses and derived from Ord. No. 2008-17, § 1, adopted May 7, 2008; and Ord. No. 2014-23, § 2(Exh. A), adopted Dec. 2, 2014.

A.

Every residential development to which this section applies shall include an inclusionary housing plan as part of the application submittal for site plan approval.

B.

The inclusionary housing plan shall include the following:

(1)

The number, location, structure (attached, semi-attached or detached), and size of the proposed market rate and inclusionary units and the basis for calculating the number of inclusionary units;

(2)

A site plan depicting the location of the inclusionary units and the market rate units;

(3)

The income levels to which each inclusionary unit will be made affordable;

(4)

The methods to be used to advertise the availability of the inclusionary units;

(5)

For a phased development, a phasing plan that provides for the timely development of the number of inclusionary units proportionate to each proposed phase of development;

(6)

An estimate of the initial sales price and/or the initial monthly rental price of each proposed dwelling unit;

(7)

An assessment of the developer's opportunity cost associated with the development of the inclusionary units required by this Article as compared to the development of the proposed market-rate units. In the case of "for sale" units, the differential shall be based on the anticipated sales price of each dwelling unit at the time of the initial sale, whereas in the case of rental units, the differential shall be based on the total profit anticipated for each unit twenty (20) years from the date of completion;

(8)

Any additional information reasonably requested by the town administrator or his designee to assist with evaluation of the inclusionary housing plan.

C.

The housing inclusionary plan shall be approved as part of the site plan approval.

(Ord. No. 2008-17, § 4, 5-7-08; Ord. No. O2020-002, § 2(Exh. A), 2-5-20)

Inclusionary units built pursuant to this article shall conform to the following standards:

A.

Design. Except as otherwise provided in this article, inclusionary units may be included in a residential development or offsite and must be comparable in construction quality and exterior design to the market rate units constructed as part of the development. Inclusionary units may be smaller in aggregate size and may have different interior finishes and features than market rate units so long as the interior features are of good quality and consistent with contemporary standards for new housing.

B.

Size of Units. The unit mix (bedroom count per unit) of the inclusionary units must be proportional to the unit mix (bedroom count per unit) of the overall project. When measurements determining the unit mix of inclusionary units result in any decimal fraction less than 0.5 shall be rounded down to the nearest whole number, and any decimal fraction of 0.5 or more shall be rounded up to the nearest whole number.

C.

Timing of Construction. A certificate of occupancy for inclusionary units must be issued concurrently with or prior to the certificate of occupancy of market rate units of the development. In phased developments, inclusionary units may be constructed and occupied in proportion to the number of units in each phase of the residential development.

D.

At least twenty-five (25) percent of the inclusionary units shall incorporate Uniform Federal Accessibility Standards (i.e. be ADA compliant).

(Ord. No. 2008-17, § 4, 5-7-08; Ord. No. O2020-002, § 2(Exh. A), 2-5-20)

Editor's note— Ord. No. O2020-002, § 2(Exh. A), adopted Feb. 5, 2020, repealed § 12-577, which pertained to expedited review of plans and derived from Ord. No. 2008-17, § 4, adopted May 7, 2008.

A.

The inclusionary unit requirement of section 12-573 may satisfied by developer by paying an "in lieu" fee to the town to be deposited into the town's affordable housing trust fund.

B.

The "in lieu" fee shall be established by resolution of the town council based on either the typical production cost for affordable units or the average affordability gap within the regional housing market. The "in lieu" fee methodology shall be reviewed periodically and may be adjusted as needed based on current or projected market conditions.

C.

The "in lieu" fee shall be paid in one (1) of the following methods:

1.

Single lump sum, paid prior to the issuance of a certificate of occupancy for the first new residential unit.

2.

For-sale units only: Incremental payments, pro-rated on a building-by-building basis as established at the time of site plan approval.

3.

Rental units only: Incremental payments, based on an agreement acceptable to the town attorney, providing for graduated payments based on expected project income within a period of no more than three (3) years after issuance of a certificate of occupancy.

4.

Other such agreement approved pursuant to section 12-579 (alternative compliance).

The fee shall be reviewed periodically and may be adjusted by resolution of the town council based on housing market conditions and affordable housing assistance strategies.

(Ord. No. 2008-17, § 4, 5-7-08; Ord. No. 2015-017, § 2(Exh. A), 6-10-15)

A.

While a provision of the required inclusionary housing units "on-site" is the preferred form of compliance, the Town of Davie may allow other forms of compliance which may include, but are not limited to, the donation of land for affordable housing development, the donation of funding sufficient to develop the required inclusionary units, or the rehabilitation of existing residential units. To exercise this provision, a proposal in the form of a developer's agreement must be submitted to the town administrator or his designee for review and recommendation to the town council.

B.

In other cases, where compliance with the ordinance is impractical, the applicant may petition, through a developer's agreement process explaining why the applicant cannot meet the requirements of the ordinance and how they intend to mitigate. The town council shall be empowered to make a quasi-judicial determination that substantial evidence exists to grant relief from the provisions of this article. Any council approval must be sought by a developer prior to the DRC committee review.

(Ord. No. 2008-17, § 4, 5-7-08)

No household may purchase or lease an inclusionary unit unless the household is an eligible household pursuant to the requirements of this article and the eligible household must occupy the housing unit as its primary residence.

(Ord. No. 2008-17, § 4, 5-7-08)

A.

Initial Sales Price. The initial sales price of an inclusionary unit to an eligible household shall be set such that the monthly mortgage payment, including interest and property taxes, permits the unit to be an affordable housing unit for the family size in accordance with the town's affordable housing policies and procedures.

B.

Transfers of property under the following circumstances shall be allowed and are not subject to restrictions included in this program provided that the property is still the primary residence of the subsequent owner of record.

1.

Transfers by inheritance to the purchaser-owner's spouse or offspring; or

2.

Transfers to a spouse as part of a divorce proceeding; or

3.

Acquisition of ownership or interest therein in conjunction with marriage.

Any other transfers shall be treated as if there is a sale of the property and the applicable provisions of this article shall control.

C.

Resale Price of Inclusionary Unit. The maximum sales price for an inclusionary unit shall be in accordance with the town's affordable housing policies and procedures. Any resale of an inclusionary unit during the fifteen-year period in accordance with the recorded covenant shall be sold to an eligible household. The price must be set such that the monthly mortgage payment, including interest and taxes, permits the unit to be an affordable housing unit for the family size in accordance with the town's affordable housing policies and procedures.

D.

Rental Prices.

1.

Rental prices are established per income level type and size as detailed in the inclusionary housing plan and leased to eligible households. The monthly price will be an affordable housing unit at the time of lease signing in accordance with the town's affordable housing policies and procedures.

2.

After the signing of the first lease with an eligible household, renewal leases may be granted in the following circumstances per household income type:

(a)

Very low income household's annual anticipated gross income may increase to an amount not to exceed one hundred forty (140) percent of fifty (50) percent of the applicable median income adjusted for family size.

(b)

Low income household's annual anticipated gross income may increase to an amount not to exceed one hundred forty (140) percent of eighty (80) percent of the applicable median income adjusted for family size.

(c)

Moderate income household's annual anticipated gross income may increase to an amount not to exceed one hundred forty (140) percent of one hundred twenty (120) percent of the applicable median income adjusted for family size.

(d)

Upon request of the town, the eligible household shall submit documentation in a form acceptable to town, and as outlined in the town's affordable housing policies and procedures, that the household is eligible to continue as an eligible household occupying an inclusionary unit.

E.

Should the owner-occupied inclusionary unit become non-homestead property, the inclusionary unit shall be considered the same as a unit that has been sold and the town shall be paid the shared equity as if the unit were sold. If the shared equity is not paid the town within ninety (90) days after notice to the owner of record, the town may place a lien against the property.

(Ord. No. 2008-17, § 4, 5-7-08)

A.

The eligible household must be a first time homebuyer if purchasing a unit.

B.

For the purchase of a residential unit, at least one (1) adult member of the eligible household must be employed in the Town of Davie or a resident for one year of the Town of Davie and have been employed for at least one (1) full year prior to any application under the designated affordable housing program.

C.

For participation in a rental program, at least one (1) adult member of the eligible household must be employed in the Town of Davie or be a resident of the Town of Davie for one year.

D.

The household income must meet the income criteria for either very low income, low income or moderate income as defined in section 12-572 of this article.

E.

The assets of the eligible household must not exceed fifty thousand dollars ($50,000.00).

F.

The eligible household must occupy the affordable housing unit within the town limits of the Town of Davie.

(Ord. No. 2008-17, § 4, 5-7-08)

A.

The initial priority for inception of the program shall be given to the following:

1.

Davie Police, Fire Department employee or general employees of the Town of Davie.

2.

Broward County Public School employees working at a school in Davie.

3.

Licensed health professionals working in Davie.

4.

Davie residents currently living in substandard housing or permanently and involuntarily displaced by condominium conversion or mobile home park closure

5.

Residents employed by the Town of Davie.

6.

First time homebuyers who meet income criteria.

B.

Any and all changes to the priorities for participation in the program shall be subject to approval by resolution of the Davie Town Council; however, nothing shall preclude other eligible households from applying for the affordable housing programs and being considered for the town's affordable housing programs.

(Ord. No. 2008-17, § 4, 5-7-08)

A.

Davie residents currently living in substandard housing, overcrowded units, or cost burdened housing.

B.

Davie residents permanently and involuntarily displaced.

(Ord. No. 2008-17, § 4, 5-7-08)

The town shall establish an affordable housing trust fund for the purpose of collecting any and all funds related to the town's affordable housing programs pursuant to this article. Such funds shall include but not be limited to payment of fees in lieu of inclusionary units, shared appreciation dollars collected at the closing of sales of designated properties, money derived from bonding, and any fees generated by county ordinance, state or federal law.

A.

The funds collected for deposit in the affordable housing trust fund may be utilized but shall not be limited to the following affordable housing programs:

1.

Acquisition and construction of affordable housing units;

2.

Down payment assistance to eligible households;

3.

Resale gap for inclusionary units;

4.

Enhancement of county, state and federal affordable housing programs; and

5.

Rehabilitation of existing affordable housing units.

B.

The town council may from time to time by resolution authorize additional programs which may be funded through the affordable housing trust fund.

C.

The town administrator, or his designee, shall provide the required supervision for the affordable housing trust account and the town administrator or his designee shall oversee the account. A financial status report on the affordable housing trust account shall be provided to the town council on or before October 1 of each calendar year.

(Ord. No. 2008-17, § 4, 5-7-08)