The town council makes the following legislative findings:

(1)

There is a demonstrated need for a wide array of affordable housing in Merrillville, and this need in part can be met through renovation of existing market rate properties in R-5 multiple-family residential districts into low income housing tax credit (LIHTC) units.

(2)

There are economic and social benefits of ensuring affordable housing in Merrillville that can be provided through the renovation of existing properties in R-5 multiple-family residential districts that are developed into LIHTC units, including the following impacts:

a.

Access to affordable housing improves education outcomes by reducing the mobility of lower-income families;

b.

Affordable housing improves resident health by reducing exposure to environmental hazards and frees resources to pay for health expenses and food;

c.

Affordable housing yields an increase in regional competiveness by lowering local housing costs and increasing employee retention in the local public and private sectors;

d.

Well-maintained affordable housing may raise property values in neighborhoods where these properties are located; and

e.

Affordable housing saves taxpayer money by reducing demand for other government services, including health and other social programs.

(3)

Many households in Merrillville are eligible to reside at affordable LIHTC housing properties, and there is a continued need for affordable housing options in Merrillville that will preserve the affordable housing that already exists.

(4)

There exists in Merrillville affordable housing properties in R-5 multiple-family residential districts that existed before the current zoning ordinance was adopted that are good candidates for development into LIHTC units, but they are nonconforming uses.

(5)

There are barriers to developing affordable housing properties located in Merrillville in R-5 multiple-family residential districts that existed before the current Zoning Ordinance was adopted into LIHTC units due to requirements that any nonconforming building or structure or nonconforming portion of a building or structure shall not be reconstructed except in conformity with the provisions of the zoning ordinance.

(6)

As a result of the provisions of the zoning ordinance, a nonconforming building or structure developed into LIHTC units is prohibited from being reconstructed as it existed immediately prior to damage or destruction. This means that an owner of a property developed into LIHTC units would permanently lose LIHTC units in the event of damage or destruction. Consequently, tax credit equity investors will not invest in such LIHTC projects because the loss of LIHTC units that cannot be replaced during the compliance period of such a development causes a loss of tax credits. Furthermore, lenders will not provide mortgage financing for such projects because a loss of LIHTC units that cannot be replaced permanently impairs the collateral. All of these adverse consequences negatively affect Merrillville residents' access to LIHTC affordable housing.

(7)

Consequently, the current provisions of the zoning ordinance adversely affect access to LIHTC affordable housing, which as stated above can improve education outcomes, increase health and wellbeing, boost economic activity, and can lower social service costs for Merrillville, among other benefits.

Accordingly, the Town Council establishes the following exceptions to the zoning ordinance for any real property within the Town of Merrillville in R-5 multiple-family residential districts that existed before the zoning ordinance was adopted, which is developed into affordable LIHTC housing.

(Ord. No. 16-27, 9-27-16)

This article:

(1)

Establishes exceptions to the zoning ordinance for properties within the Town of Merrillville in R-5 multiple-family residential districts that existed before the zoning ordinance was adopted, which are thereafter developed into affordable LIHTC housing; and

(2)

Should be construed liberally to effect its purpose and intent.

(Ord. No. 16-27, 9-27-16)

It is the intent of this article to permit nonconforming buildings, lots, structures and uses in R-5 multiple-family residential districts that are legally established prior to the effective date of this article, and that are thereafter developed into LIHTC affordable housing projects, to be exempt from and not otherwise subject to, the provisions of Chapter 21, section 21-5(a), section 21-15, section 21-87(c), section 21-137 (R-5 setbacks) and section 21-172(a)(14)(c) of the Town of Merrillville Zoning Ordinance, as currently in effect or later amended, in the event of damage or destruction as defined by sections 21-15(e)(2) or (f) during the duration of such LIHTC project to the later of (1) the period any such building, lot, structure or use is no longer continuously financed with a mortgage loan guaranteed under any program governed by the United States Department of Housing and Urban Development or successor agency, or (2) the termination of the land use restriction period or any extension thereof with respect to the LIHTC project affecting such building, lot, structure or use, as defined in the Internal Revenue Code of 1986, as amended from time to time, or the corresponding provision of any successor law.

(Ord. No. 16-27, 9-27-16)

(1)

The scope of the exceptions set forth in section 21-252 is intended to be limited to extension or continuation of the nonconforming building, lot, structure or use in the event a building, lot or structure is required to be reconstructed due to damage or destruction that would otherwise end such nonconformity for the purpose of allowing the owner of the building, lot, structure or use to replace the LIHTC units damaged or destroyed with an equal number of LIHTC units in the original location and lot configuration, and without the need to comply with the provisions of the zoning ordinance specified in section 21-252, but is not intended to allow for the enlargement or expansion of the nonconforming building, lot, structure or use, and any reconstruction shall be of no greater dwelling unit density or unit mix than existed prior to damage or destruction.

(Ord. No. 16-27, 9-27-16)