This Section outlines the development process, requirements, and incentives available to residential developments designated as Affordable Housing Developments (AHDs). The original intent of Chapter 14 was to implement Ordinance No. 94-08, as amended, entitled, "Affordable Housing Incentive Plan," adopted by the City Commission on January 18, 1994. This Chapter continues to serve as the primary section of the CDC for citywide affordable housing incentives in accordance with recommendations made by the City's Affordable Housing Advisory Committee.

Assisting and providing affordable housing increases rental housing and home ownership opportunities by reducing the total cost of housing in the marketplace:

A.

Ensures the availability of sufficient and affordable rental housing by providing incentives to stimulate production;

B.

Permits households to freely choose among the different housing options and tenures which are available in an unrestricted market; and

C.

Encourages a balanced and mixed economic community.

(Ord. No. 2023-04, § 2, 2-7-2023)

A.

Affordable housing - Quality-designed housing for which monthly rents or monthly mortgage payments including taxes and insurance do not exceed 30 percent of that amount which represents the percentage of the median annual gross income for the households as indicated in Sections 420.9071(20), (21), and (30), Florida Statutes. However, it is not the intent to limit an individual household's ability to devote more than 30 percent of its income for housing, and housing for which a household devotes more than 30 percent of its income shall be deemed affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. This term also includes housing provided by a not-for-profit corporation that derives at least 75 percent of its annual revenues from contracts or services provided to a state or federal agency for low-income persons and low-income households; that provides supportive housing for persons who suffer from mental health issues, substance abuse, or domestic violence; and that provides on-premises social and community support services relating to job training, life skills training, alcohol and substance abuse disorders, child care, and client case management.

B.

Density bonus agreement - An agreement binding the parties to provide additional housing density in exchange for certain provisions or restrictions on certain units and/or the development during the term of the agreement.

C.

Land use restriction agreement - An agreement binding the parties to limit the use of property to a particular use for the term of the agreement.

D.

Set-aside requirement (set-aside units) - Minimum number or percent of units in a residential development that must be set-aside as qualified units in return for incentives provided by the City.

E.

Qualified unit - Set-aside unit occupied by an income eligible household. For such units, the rent or sales price of owner-occupied homes cannot exceed the maximum amounts established by this Chapter.

F.

Affordable housing development (AHD) - A residential development that receives incentives through the City in exchange for the provision of affordable housing that is receiving incentives from one or more of the following affordable housing codes or programs:

•

Chapter 14 - Affordable Housing of this CDC;

•

Section 7.2 - Major Activity Centers of this CDC;

•

The West Bay Drive or Clearwater-Largo Road Community Redevelopment District Plans;

•

The City's Home Improvement or Home Replacement Programs; or

•

A program for which the developer has provided documentation that the development will be required to have affordable set-aside units through another non-City funding source, such as Low Income Housing Tax Credits, the Pinellas County Housing Finance Authority Multi-Family Bond Program, or the Penny IV Pinellas Affordable Housing Program.

G.

Very-low-income household - One or more natural persons or a family that has a total annual gross household income that does not exceed 50 percent of the median annual income adjusted for family size for households within the metropolitan statistical area, the county, or the nonmetropolitan median for the state, whichever is greatest. With respect to rental units, the very-low-income household's annual income at the time of initial occupancy may not exceed 50 percent of the area's median income adjusted for family size. While occupying the rental unit, a very low-income household's annual income may increase to an amount not to exceed 140 percent of 50 percent of the area's median income adjusted for family size.

H.

Low-income household - One or more natural persons or a family that has a total annual gross household income that does not exceed 80 percent of the median annual income adjusted for family size for households within the metropolitan statistical area, the county, or the nonmetropolitan median for the state, whichever amount is greatest. With respect to rental units, the low-income household's annual income at the time of initial occupancy may not exceed 80 percent of the area's median income adjusted for family size. While occupying the rental unit, a low-income household's annual income may increase to an amount not to exceed 140 percent of 80 percent of the area's median income adjusted for family size.

I.

Moderate-income household - One or more natural persons or a family that has a total annual gross household income that does not exceed 120 percent of the median annual income adjusted for family size for households within the metropolitan statistical area, the county, or the nonmetropolitan median for the state, whichever is greatest. With respect to rental units, the moderate-income household's annual income at the time of initial occupancy may not exceed 120 percent of the area's median income adjusted for family size. While occupying the rental unit, a moderate-income household's annual income may increase to an amount not to exceed 140 percent of 120 percent of the area's median income adjusted for family size.

J.

Area Median Income (AMI) - The median gross annual income, adjusted for household size, for Pinellas County (Tampa-St. Petersburg Metropolitan Statistical Area).

K.

Maximum Income Limit - The maximum gross annual household income adjusted for household size for the maximum income level to be served by the AHD (e.g., 50% or 80% of area median income). Unless otherwise required for specific funding sources provided through the City for the AHD, the median annual income for set-aside units shall be based on the annually released Maximum Income Limits established by the Florida Housing Finance Corporation for the State Housing Initiatives Partnership (SHIP) Program, adjusted for household size for Pinellas County (Tampa-St. Petersburg Metropolitan Statistical Area).

L.

Maximum Rent Rates - Unless otherwise required for specific funding sources provided through the City for the AHD, the Maximum rent rates for set-aside rental units shall be based on annually released Maximum Rental Limits established by the Florida Housing Finance Corporation for the State Housing Initiatives Partnership (SHIP) Program, adjusted for the number of bedrooms in the units, for Pinellas County (Tampa-St. Petersburg Metropolitan Statistical Area).

M.

Maximum Purchase Price (Sales Limit) - Unless otherwise required for specific funding sources provided through the City for the AHD, the Maximum Purchase Price for set-aside owner-occupied units shall be based on annually released Maximum Purchase Price limit established by the Florida Housing Finance Corporation for the State Housing Initiatives Partnership (SHIP) Program.

N.

Affordability Period (Period of Affordability) - The number of years the development or property must maintain all affordability requirements of the incentives provided.

(Ord. No. 2023-04, § 2, 2-7-2023)

Single-family, small-type and medium-type housing, and multi-family residential developments, and single-family and small-type and medium-type infill lots are eligible for designation as an AHD, provided the following minimum criteria are met:

A.

Applicant/builder requirement - The applicant must be the site developer and/or builder of the development, or their authorized agent, unless adequate provisions are in place to ensure the cost savings gained from an AHD subdivision accrue to the future lower income buyer.

B.

Quality design and unit distribution - The applicant must commit to quality design and achieve comparable unit distribution for qualified units. Building materials and finishes of the interior and exterior of the affordable housing dwelling units shall be consistent with market-rate units in the development.

C.

Consistency with Plans -

(1)

For projects within the CLR-CRD: Consistent with the requirements of the Clearwater Largo Road Community Redevelopment Plan (CLR-CRD) and furthers the intent of the Plan.

For projects within the WBD-CRD: Consistent with the requirements of the West Bay Drive Community Redevelopment District Plan (WBD-CRD) and furthers the intent of the Plan.

For projects within an SAP: Consistent with the requirements of the Special Area Plan and furthers the intent of the Plan.

(2)

Consistent with the Housing Element of the City of Largo Comprehensive Plan.

D.

Access - The development must be physically connected to the street and sidewalk network of the surrounding community. Projects utilizing density bonuses in this Chapter that are located outside of Activity Centers and designated Multi-Modal Corridors must demonstrate that there is access to mass transit within a half mile of the project site.

E.

Design Compatibility - The development must be compatible with, and integrated into, the scale and character of the surrounding community.

(Ord. No. 2023-04, § 2, 2-7-2023; Ord. No. 2025-01, § 29, 12-17-2024)

Housing that specifically serves people with special needs shall receive the incentives for income-eligible individuals, provided appropriate documentation is furnished as proof that the development is sponsored by a private nonprofit organization and the Department of Housing and Urban Development has provided a Binding Letter of Commitment.

(Ord. No. 2023-04, § 2, 2-7-2023)

A.

Funding Assistance - Developers seeking funding assistance for an AHD must apply through the City's Affordable Housing Development Program. Eligibility criteria and funding terms are provided through the Affordable Housing Development Program. Based on funding availability, funding can be used to assist developments with acquisition, rehabilitation, site clearance, reconstruction/new construction, impact fees (non-waived impact fees), and building permit fees. Applicable periods of affordability for any awarded funding will be guided by the policy documents for that funding source.

B.

Density bonus - Density bonuses to reduce per unit land costs are available to the site developer based upon the percentage of qualified Set-Aside units provided. See Table 14-2. In order to utilize an affordable housing density bonus, the developer must enter into an affordable housing density bonus agreement requiring the developer, its successors and assigns to maintain a certain ratio of AHD units, providing for fees for failure to maintain said ratio, providing for security for the payment of said fees, providing that the agreement shall be recorded and construed as a covenant running with the land binding all successor owners of the site, and providing for a period of affordability. The affordable housing density bonus agreement shall be subject to the review and approval of the City Commission and City Attorney.

C.

Alternative development standards - Projects receiving the AHD designation are eligible to use alternative development standards to reduce construction and site preparation costs. Alternative design standards will be incorporated into the site plans for the Development Order.

D.

Expedited Review - The processing of approvals of development orders or permits, as defined in Section 163.3164(15)—(16), Florida Statutes, for affordable housing projects shall be expedited to a greater degree than other projects.

E.

Affordable Housing Impact Fee Waiver Program - Unless the Affordable Housing Impact Fee Waiver Program time period is changed by resolution, a waiver of the Parkland and Recreation Facilities Impact Fee shall be waived for a period of five (5) years from adoption of Ordinance 2023-25. Developers/property owners can apply to the City's Affordable Housing Impact Fee Waiver Program for the Parkland and Recreation Facilities Impact Fee waiver for dwelling units that will be sold or rented to households earning no more than 80% of Area Median Income (AMI), adjusted for household size, and for which sales prices or rental rates are at or below the following limits:

(1)

Owner-Occupied Units: Dwelling units sold for home ownership must be sold at no greater than the Homeownership Sales Price Limits for the Home Investment Partnership (HOME) Program established by the US Department of Housing and Urban Development (HUD) at the time of re-sale to an income-eligible household.

(2)

Rental Units: Dwelling units must be rented by an income-eligible household for no more than the Maximum Rent Limits, adjusted for number of bedrooms, for the SHIP Program in effect for households at the 80% AMI level at the time of rental. In accordance with the SHIP Program requirements, the portion of rent paid by the tenant household must not exceed the SHIP rent. If a rent subsidy from another source provides gap funding between the lease and the amount paid by the tenant, such documentation shall be kept on record by the property owner.

(3)

Affordability Period for Impact Fee Waiver Program: The length of time these affordability requirements will be in effect to fulfill waiver requirements is ten (10) years from initial occupancy (initial sale to homeowner or final Certificate of Occupancy date for rental units). An Affordable Housing Impact Fee Agreement shall be recorded on the property.

(Ord. No. 2023-04, § 2, 2-7-2023; Ord. No. 2023-25, § 3, 4-18-2023)

A.

Review process - Chapter 3 of this CDC defines the applicable level of review.

B.

Applicant's responsibilities - Failure to comply with conditions listed on the staff report or obtain permits required from outside agencies such as Pinellas County, Florida Department of Transportation, and Southwest Florida Water Management District may result in delays and possible denial of a DO.

C.

Alternative development standards - Projects receiving the AHD designation are eligible to use alternative development standards, which may be applied to the AHD project to reduce construction and site preparation costs. Alternative development standards include use of the affordable housing density bonus, or differentiated site design standards as provided in Section 14.2.2 and 14.2.3. A density bonus agreement shall be required for all AHDs receiving density bonuses in accordance with Section 14.2.4. All alternative development standards will be incorporated into the site plans for the development order.

D.

Expedited Review - The processing of approvals of development orders or permits, as defined in Section 163.3164(15)—(16), Florida Statutes, for affordable housing projects shall be expedited to a greater degree than other projects.

(Ord. No. 2023-04, § 2, 2-7-2023)

Impact and development fees may be paid on behalf of the builder/developer as follows:

A.

DO/permit fees - Qualifying Set-Aside units and AHD infill lots requiring a Development Permit only shall not be required to pay fees for review and approval of development plans.

B.

Impact fees - The builder/developer may apply for funding through the City's Affordable Housing Development Program to assist with the following impact fees for set-aside units: Multimodal, Sewer, Water, Parkland and Recreation Facility, and Radon. Funding amounts under Section 14.1.7 are contingent on funding availability and the terms of the Affordable Housing Development Program. The Multimodal impact fee may be reduced for qualified affordable housing projects meeting the requirements for the low-income household reduction established by Section 150-40, Schedule A and Schedule B of the Pinellas County Land Development Code.

(Ord. No. 2023-04, § 2, 2-7-2023)

Density bonuses shall be permitted in all land use designations that allow residential uses. Density bonuses will not be granted for property within a Coastal High Hazard Area or Special Flood Hazard Area, as those terms are defined in Chapter 7 of the CDC. The density bonuses available in Table 14-1 are applicable to properties not within the City's Community Redevelopment Districts or Special Area Plans that includes density bonuses specific to those areas. The bonus shall not exceed the maximum density of the next highest land use designation. The use of the density bonus shall not require a future land use map amendment.

A.

Density bonus calculation - Tables 14-1 and 14-2 depict the maximum number of additional units allowed, based upon the initial percentage of affordable units proposed and the bedroom mix provided.

B.

Other CDC requirements - The use of density bonuses shall not violate the compatibility, concurrency, design, or performance standards of this CDC.

C.

Example -

(Ord. No. 2023-04, § 2, 2-7-2023)

The intent of furnishing a menu of alternative site design standards is to provide flexibility in design for the developer/builder, while ensuring design parity and quality. The use of standards singularly, or in combination, which would negatively affect the visual quality of the residential development violates the purpose of the AHD subsection, and therefore, shall not be permitted. Upon acceptance of a residential development as an AHD designation, the development may be permitted to use the following alternative site design standards:

A.

Hammerheads and Y-shaped turn-a-rounds may be used in lieu of culs-de-sac.

B.

Right-of-way for local streets may be reduced from fifty (50) feet to thirty-six (36) feet and sidewalks may be located on easements rather than the right-of-way.

C.

Private streets are permitted; however, the developer/builder should consider long-term maintenance costs to the property owners or tenants if the streets are retained as private.

D.

Sidewalks may adjoin the curb for one stop placement of both.

(Ord. No. 2023-04, § 2, 2-7-2023)

The following features of the CDC support the reduction of costs for all residential developments and should be used in combination with this Section's standards to promote affordable housing:

A.

All standards in the CDC are performance-based, and therefore, flexibility is provided in choosing the most effective approach to balancing environmental quality against affordable residential construction.

B.

Transfer of development rights is permitted from conservation areas to upland areas.

C.

Zero lot line developments are allowed in all land use designations.

D.

Density exchange for open space and other community amenities in order to enhance environmental quality is permissible.

E.

There are no minimum floor area requirements for residential uses within residential land use designations.

F.

Infill lots within existing single-family subdivisions may be developed even if less than the 5,000 square feet minimum lot size.

G.

Clustering of dwelling units is permitted on lots less than 5,000 square feet, provided the total site does not violate the gross density permitted.

H.

There are no minimum lot widths contained in the CDC.

I.

Pre-application conferences are provided to applicants with the opportunity to explore the housing proposal's feasibility without incurring expensive engineering/architectural work (see Section 3.3.4.D.)

J.

Manuals on compatibility, design review, concurrency, the development process, and a schedule of impact fees are available upon request.

K.

Neighborhood meetings are provided to come to consensus regarding any objections identified by adjacent residents.

L.

Development reviews are approved administratively rather than by citizen advisory boards.

M.

Provisions exist for administrative waiver of dimensional criteria.

(Ord. No. 2023-04, § 2, 2-7-2023)

An affordable housing density bonus agreement shall be recorded on the property in the official records in Pinellas County, shall be binding on all successors, shall be in a form acceptable to the City Attorney, and shall be approved by the City Commission.

The density bonus agreement must be approved and recorded on the property prior to issuance of the Development Order. At a minimum, the density bonus agreement shall include the following provisions:

A.

Set-Aside Units - Number of required set-aside units, and unit sizes if applicable to the incentive, in the development;

B.

Income Level - Maximum income level of household(s) that set-aside units will be either rented or purchased for owner-occupancy in accordance with the density bonus being provided;

C.

Maximum Rent Rates or Maximum Purchase Price - Applicable Maximum Rent Rate or Maximum Purchase Price for the set-aside units;

D.

Period of Affordability/Term - The following are minimum periods of affordability for:

(1)

Fee Simple Owner-Occupied Units - A ten-year affordability period will be required during which the property must be sold or transferred to eligible persons whose incomes do not exceed the required income limit for the incentive being provided. Prior to the sale of the lot, the prospective buyer must be certified by the City's Community Development Department to meet the income eligibility criteria. The ten-year affordability period starts from the date the housing unit is sold or transferred to an income-eligible household. The agreement must also stipulate the set-aside unit must be maintained as a fee-simple owner-occupied unit during the affordability period.

(2)

Rental Housing Units - A 50-year affordability period will be required for rental developments receiving a density bonus. The 50-year affordability period starts from the date of issuance of the final certificate of occupancy for the development;

E.

Compliance & Monitoring - The following are compliance and monitoring requirements:

(1)

Developer and/or subsequent owner(s) for multi-family AHDs shall be responsible for carrying out income-certification and annual re-certification of household applicants for set-aside units, ensuring rent rates for set-aside units do not exceed the maximum rent rates, and providing monitoring and compliance documentation to the City.

(2)

Developers of owner-occupied units shall be responsible for income-certifying a prospective buyer before accepting a sales contract to purchase the set-aside unit(s) and ensuring the sales price does not exceed the maximum purchase price. At any time during the recapture period, all prospective buyers must be income-certified and such documentation must be reviewed by the City's Community Development Department prior to the developer accepting the sales contract on the unit to ensure the homebuyer meets the income eligibility requirements.

(3)

The developer and subsequent owners are also responsible for disclosing to the buyer any affordable housing covenants recorded on the property that will affect the buyer's future resale or rental of units on the property. Compliance reports and monitoring by the City or its third-party designee shall be completed no less frequently than annually.

(4)

Include a cure period for non-compliance and the fee calculation for non-compliance. Fees for non-compliance shall be paid to the City for the period of non-compliance.

F.

Design Criteria - Design criteria as outlined in Section 14.1.3; and

G.

Fair Housing - A statement that all transactions will comply with the Fair Housing requirements established in the Largo City Code and the Pinellas County Code.

(Ord. No. 2023-04, § 2, 2-7-2023)

A.

Owner-Occupied Units - Properties receiving a density bonus for owner-occupied affordable housing units shall have a land use restriction agreement recorded on the property for each individual set-aside unit (in addition to the density bonus agreement recorded on the entire project property) prior to re-sale by the developer to the homebuyer to ensure the covenants and restrictions run with the land for the period of affordability in accordance with the terms in the density bonus agreement. Anyone who purchases a lot with an AHD designation must comply with the provisions of the associated land use restriction agreement. The agreement shall be recorded in the official records in Pinellas County, shall be binding on all successors in interest and shall be in a form acceptable to the City Attorney and be signed by the City Manager. At a minimum, land use restriction agreements shall include the following provisions:

(1)

All provisions that would be included in density bonus agreements as outlined in Section 14.2.4;

(2)

A statement that prior to the sale of the unit, at any time during the recapture period, all prospective buyers must be income-certified and such documentation must be reviewed by the City's Community Development Department prior to the developer accepting the sales contract on the unit to ensure the homebuyer meets the income eligibility requirements;

(3)

A statement of any financial incentives provided by the City (e.g., waived fees, donated land) that are subject to recapture by the City should the property no longer meet the terms of the Land Use Agreement; and

(4)

The total amount of fees subject to recapture.

B.

Rental Developments - A land use restriction agreement shall be recorded on the property for rental AHDs if any fees are reduced or waived by the City or when surplus land is donated to a developer for affordable housing. The land use restriction agreement would be in addition a density bonus agreement if development is receiving both financial incentives and a density bonus.

At a minimum, the land use restriction agreement shall include the following provisions:

(1)

All provisions that would be included in density bonus agreements as outlined in Section 14.2.4 of this Chapter;

(2)

A statement of the financial incentives provided by the City (e.g. waived fees, donated land) that are subject to recapture by the City should the property no longer meet the terms of the Land Use Agreement; and

(3)

The total amount of fees subject to recapture.

(Ord. No. 2023-04, § 2, 2-7-2023)

Participation in the AHD program is voluntary, and therefore, it is the obligation of the applicant and their heirs and assigns to willingly accept the responsibilities and enforce the provisions which are inherent with an AHD designation.

A.

AHD responsibilities - The various parties which have responsibilities as a result of an AHD designation include: the property owner, developer, builder, manager, homeowner, and tenant.

(1)

Property owners and managers - An AHD designation for a multifamily rental development must ensure the income occupancy requirements are met, document tenant eligibility, establish affordable unit rents, use acceptable lease agreements, and provide a monitoring report to the Community Development Department each year the development retains its AHD designation.

(2)

Tenants - Qualified tenants, as part of the lease, must agree to provide the information necessary to document income eligibility. In return for this responsibility, the tenant receives a standard unit at affordable rents.

(3)

Developers/builders - Developers/builders who request AHD designation receive financial benefits in the development process through reduced holding costs, land costs, and site preparation/construction costs. In return, the developer/builder is responsible for signing a density bonus agreement and a land use restriction agreement, if applicable, which specifies the lower income occupancy requirements for the owner-occupied unit or rental unit and the applicable affordability provisions for these units.

(4)

Homeowners - The homeowner is responsible for maintaining the unit as his principal residence for a minimum of ten years. The unit may only be sold in full compliance with the terms of the land use restriction agreement.

B.

Income eligibility - The AHD applicant and/or manager shall be required to document that the prospective homeowner or tenant purchasing or renting a qualifying unit is income eligible. Documenting prospective homeowner and tenant eligibility involves determining household annual income, verification, and obtaining an income certification.

The Community Development Department maintains specific procedures regarding what to count and not to count as income when calculating a prospective owner's or tenant's annual income.

If this income figure falls within the applicable AHD Program income limits, the prospective owner or tenant is eligible. All household income information provided by the prospective owner or tenant must be verified for accuracy. The AHD applicant, property owner, or manager must obtain a resident (or tenant) income certification from the prospective owner or tenant that the income information provided is accurate and complete. Homes and rental units that have been documented as income eligible may be designated as Qualifying Units.

C.

Affordable purchase prices and rents - The purchase price to prospective homeowners, or the rents charged to tenants in Qualifying Units, are controlled. To ensure the affordability of these units, the density bonus agreement and the land use restriction agreement establish a set of maximum prices or rents that can be sold or charged for Qualifying Units. The purchase prices and rent limits are based upon area median income and are subject to change annually, usually between March and June of each year. Income limits and rent limits may be obtained from the Community Development Department.

D.

Fair Housing - AHD applicants and their respective property management company/staff are required to abide by the Fair Housing requirements as contained in the Largo City Code and the Pinellas County Code.

(Ord. No. 2023-04, § 2, 2-7-2023)