Affordable Housing Master Plan Implementation: Developing a Housing Conservation District Joint Zoning Committee and Long- Range Planning Committee Meeting October 17, 2017
Affordable Housing Master Plan Implementation:Developing a Housing Conservation District
Joint Zoning Committee and Long-Range Planning Committee MeetingOctober 17, 2017
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Affordable Housing Master Plan, 2015
• Objective 1.1: Produce and preserve a sufficient supply of affordable rental housing to meet current and future needs.
• 1.1.1: Encourage the construction and preservation of affordable rental housing through land use/zoning policy, financial and technical assistance.
• 1.1.3: Make every reasonable effort to prevent the loss of market-rate affordable rental housing.
• 1.1.4: Encourage and incentivize the distribution of affordable housing throughout the County.
History
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AHMP Objective 1.1: Produce and preserve a sufficient supply of affordable rental housing to meet current and future needs.
To implement this objective, the County Board directed staff to:
• Update zoning standards for Accessory Dwelling Units (in progress)
• Study clusters of market-rate affordable housing (MARKs) and develop tools to preserve affordability
• Explore opportunities for “Missing Middle” housing (future effort)
History
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MARK Definition
MARK: Housing units that have market rents that are affordable to low- and moderate-income households by virtue of the age, location, condition and/or amenities of the property. These units are not regulated by the County or any other public agency, so there is no assurance that lower-income households live in these lower-rent housing units. In addition, there is no guarantee that these homes will remain affordable to lower-income households.
# of Bedrooms
Studio 1-Bedroom 2-Bedroom 3-Bedroom
80% AMI Rents
$1,546 $1,656 $1,986 $2,295
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2,7800
2,0004,0006,0008,000
10,00012,00014,00016,00018,00020,00020
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Affo
rdab
le H
ousi
ng U
nits
Affordable Housing Supply 2000-2016 - Countywide
MARKs up to 60% AMI
MARKs from 60% to 80%
Committed Affordable
History: MARK Report
• April 2017: MARK Report presented to County Board• Supply of MARKs is declining
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History: MARK Report
• Nine main clusters of MARKs
• Recommended creation of a planning tool: Housing Conservation District (HCD)
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Developing the HCD
Phase I
• Accept/Adopt Part 1 of HCD Study• Adopt GLUP Amendment• Adopt AHMP Amendment• Adopt Zoning Ordinance Amendment for Townhouse Development
Phase II• Adopt Zoning Ordinance Amendment for Renovation Tool
Phase III
• Accept/Adopt Part 2 of HCD Study• Adopt Zoning Ordinance Amendment for Additional Density via Addition, Infill,
Partial Conservation/Partial Redevelopment, and Redevelopment• Pilot Tax Reimbursement Program
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PHASE I(Adoption in December 2017)
Phase I
• Accept/Adopt Part 1 of HCD Study• Adopt GLUP Amendment• Adopt AHMP Amendment• Adopt Zoning Ordinance Amendment for Townhouse Development
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Part 1 of HCD Study: Existing Tools
• Voluntary Coordinated Housing Preservation and Development District (VCHPDD)
• Nonconforming properties may complete minor additions by use permit
• Per State requirements, must dedicate at least 20% units as affordable for a minimum of 10 years
• Examples: Buckingham Village III, Buchanan Gardens, & Larkspur, where nonprofit developers provided longer affordability terms
• Site Plan bonus density• Modification to height generally not possible• Costs likely outweigh scale of potential benefits
• Partial Property Rehabilitation Tax Exemption• Exemption for multifamily buildings 25+ years old on
the increase in assessed value due to improvements for 10 years (and phased out over the following five years)
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Part 1 of HCD Study: Analyzing Existing Tools
• Use VCHPDD as a model to encourage renovation/minor addition projects that can extend life and viability of affordability in MARK properties
• Potential opportunities to streamline affordable housing creation/preservation and provide more predictability for property owners when making future development decisions
• Administrative or use permit review (possibly expedited) could potentially be more viable and attractive
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Part 1 of HCD Study:Key Findings
• Many MARK buildings/properties are nonconforming for:• Density (at least 43% have more units than permitted by
current zoning)• Parking (have fewer spaces than required)
• Several MARKs listed on Arlington’s Historic Resources Inventory (HRI) are also eligible for inclusion on the National Register of Historic Places (NR) and/or as Arlington County local historic districts
• MARK properties have been lost since Report was published• By-right townhouse development in Westover• New multifamily housing in Cherrydale
• Rent increases continue• Density is a tool that can help provide affordable housing
• Other financial tools often needed as well• MARKs are typically set amid lower- to medium-scale development
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Part 1 of HCD Study: Density Implications
• Experience from Columbia Pike: takes an average of 3-4 market rate units to subsidize 1 affordable unit
RA14-26 Example: • Assuming a 1 acre site:
• Suggested need for a range of possible development strategies along this spectrum
Base Zoning Site Plan Bonus Density (+25%)
3 x Density 4 x Density
24 du/acre maximum
30 du/acremaximum
72 du/acre 96 du/acre
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Part 1 of HCD Study: Spectrumof Tools
Renovation + Units
InfillAddition Redevelopment
Sample:
• Establish policy direction for Zoning Ordinance Amendments in Phases II and III
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Phase I: GLUP Amendment
• GLUP Note
• HCD boundaries (mapped in booklet)
• Properties within HCD boundaries may be eligible to use future HCD zoning and financial incentive tools (implemented via Phases II and III)
• Townhouse development requires site plan approval within HCD boundaries
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Phase I: GLUP AmendmentHCD Goals
• Implement the Affordable Housing Master Plan via the General Land Use Plan.
• Encourage the retention and renovation of existing rental affordable housing units.
• Provide opportunities for the creation of new affordable units (either rental or ownership) when redevelopment occurs.
• Maintain the character of established multi-family areas, considering historic buildings, tree canopies, mix of affordability, and mix of rental vs. ownership housing.
• Signal that a variety of tools is available to achieve the above.
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Phase I: GLUP AmendmentHCD Objectives
• Provide committed affordable (CAF) rental housing up to 60% AMI.
• Preserve market-rate affordable housing up to 80% AMI.• Provide ownership housing between 80% and 120% AMI.• Preserve buildings listed on the Historic Resource Inventory (HRI)
or National Register.• Incorporate sustainable building practices.• Encourage renovation and infill development while
accommodating redevelopment.• Ensure projects are compatible to their surroundings.• Ensure any new density could be supported by transit.• Encourage creation of underrepresented housing forms.• Remove zoning barriers to reinvestment.
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Phase I: GLUP AmendmentHCD Boundaries
• MARK Report sites:• Zoned “RA”• Low-Medium and Medium GLUP
• Limit properties not included in MARK Report
• Include nearby CAFs• Exclude site plan properties• Follow lot lines, roadways, natural
barriers, zoning, and GLUP district boundaries
• Include market-rate buildings with rents from 80-85% AMI
• Incorporate Lee Highway properties
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Phase I: GLUP AmendmentHCD Boundaries
Proposed Housing Conservation District
Areas for Potential Future Study
Sector and Area Plan Boundaries
Planning Corridors
JEFFERSON DAVIS CORRIDOR
LEGEND
WESTOVER
LEE HIGHWAY
SHIRLINGTON
PENROSE
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Phase I: AHMP Amendment
The Affordable Housing Master Plan provides the policy basis for the establishment of the Housing Conservation Districts.
Additional text is proposed under policy 1.1.3 on page 19:
“In furtherance of this policy the County has established a Housing Conservation District in the General Land Use Plan to encourage the retention and renovation of existing rental affordable housing units, and to provide opportunities for the creation of new affordable units when redevelopment occurs.”
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Phase I: Overall Policy Direction
TIER 2
TIER 3
Density Changes: May add new units if permitted by current zoning.
Density Changes: May add new units beyond what is permitted by current zoning.
Density Changes: May add new units beyond what is permitted by current zoning.
TIER 1
RENOVATION MINOR ADDITION
RENOVATION MINOR ADDITION ADDITION INFILL
PARTIAL CONSERVATION / PARTIAL REDEVELOPMENT
REDEVELOPMENT / NEW CONSTRUCTION
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Phase I: Policy Directions
Physicalchange to site
Additional density
Affordability requirements
Approvalreview
Tier 1 Renovation / Minor Addition
Least
Tier 2 Renovation / Minor Addition Addition
Infill
Tier 3 Partial Conservation / PartialRedevelopment
Redevelopment / New Construction
Greatest
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Three Tier Approach: Tier 1
Renovation / Minor Addition
Goal:Encourage investment in, and retention of, existing housing resources while minimizing physical impacts to sites and neighborhoods
Incentive:• Density and parking nonconforming properties Conforming
properties• Ability to construct minor additions (up to 30% of existing building
footprint)
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Three Tier Approach: Tier 1
VCHPDD (Existing) Proposed Renovation Tool
Review Process
Use Permit Administrative if meets standards, including HRI Important/NR-listed
Use Permit to modify standards
Additional Density
May add density up to zoning maximum
May add density up to zoning maximum
Additional Height
No greater than zoning or existing height
No greater than zoning or existing height
Building Additions
Reviewed on a case-by-case basis
May not exceed 30% of existing building footprint
Parking Reviewed on a case-by-case basis
No parking for existing units; existing parking must meet zoning design standards. New units require parking, unless a use permit is approved.
Design Principles
Case-by-case review Additions at side or rear yard
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Three Tier Approach: Tier 1
Eligibility:• Retain existing building(s)• No fewer units than existed at adoption of HCD• Will implement a Tenant Relocation Plan• Minimum 20% of units will be affordable below 80% AMI for 10 yearsReview Process:• Administrative • Historic Preservation staff review for HRI Essential / Important or NR-
listed• Yield review to State Historic Preservation Office or National
Park Service for projects pursuing state/federal rehabilitation tax credits
• May modify zoning requirements by use permit
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PHASE II(Adoption in February/March 2018)
Phase II• Adopt Zoning Ordinance Amendment for Renovation/Minor Addition Tool
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ZOA for Renovations / MinorAdditions
LARKSPUR (HOWARD MANOR) LARKSPUR (HOWARD MANOR)
COLONIAL VILLAGE
BUCKINGHAM
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ZOA for Renovations / MinorAdditions
Additions to Enlarge Units
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ZOA for Renovations / MinorAdditions
Addition to Add New Units, When Consistent with Zoning Requirements
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PHASE III(Adoption in June/July 2018)
Phase III
• Accept/Adopt Part 2 of HCD Study• Adopt Zoning Ordinance Amendment for Additional Density via Addition, Infill, Partial
Conservation/Partial Redevelopment, and Redevelopment • Pilot Tax Reimbursement Program
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Part 2 of HCD Study: Form Modeling
• Help identify appropriate: • Additional Density• Height • Setbacks• Lot Coverage
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Part 2 of HCD Study: Economic Modeling
• Develop high-level pro formas to help estimate the number of affordable units that could reasonably be obtained under different scenarios
• Consultant has verified construction cost estimate assumptions
• Iterative process of modeling economics against building form
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Three Tier Approach: Tier 2
InfillAddition
Goal:Provide development options that encourage the retention of existing multi-family buildings while maintaining affordability.
Infill
The Trove (Wellington)
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Three Tier Approach: Tier 3
Partial Conservation / Partial Redevelopment
Goal:Where larger impacts to existing sites occur, ensure that development is at a scale appropriate to the setting and that in exchange for more extensive development, more affordable units are provided onsite.
Redevelopment / New Construction
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Three Tier Approach: Tier 3
Partial Conservation / Partial Redevelopment
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Three Tier Approach: Tier 3
TIER 3: Redevelopment / New Construction
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Phase IIIReview Process Considerations
Administrative Review (for changes with the least impact):• Need clear standards and thresholds• How to be permissive yet maintain historic value for HRI/NR-
listed properties• Simplified review could expedite housing creation
Use Permit Review (for changes with the potential for greater impacts):• Potential impacts assessed on a case-by-case basis, within
established criteria• Consideration of historic resources built into review process• Additional review and uncertainty may serve as a disincentive to
development and housing creation
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Phase IIINew Financial Incentive
Pilot property tax reimbursement program• Targeted to MARK property owners within HCD• Properties subject to local, state, or federal affordability
restrictions would not be eligible• 80% AMI affordability• 10 to 15 year commitment to program• Reimbursement proportional to the number of units committed to
program• Defined program budget (limited participation)
Funding source needs to be identified
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PHASE IFURTHER DETAILS(Adoption in December 2017)
Phase I
• Accept/Adopt Part 1 of HCD Study• Adopt GLUP Amendment• Adopt AHMP Amendment• Adopt Zoning Ordinance Amendment for Townhouse Development
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Phase I: Townhouse ZOA
• Reclassify townhouse development as a special exception use within those RA14-26, RA8-18, and RA6-15 zones that are within HCD boundaries
• Existing GLUP and Zoning Ordinance provisions for townhouse development:
*Special exception use within the boundaries of the Fort Myer Heights North Special District
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Phase I: Townhouse ZOA
• Townhouse development impacts areas of traditional multi-family housing• Replaces limited land planned and zoned for multi-family
buildings with single-family dwelling arrangements• Vertical form of townhouse development is inconsistent with
horizontal form of traditional garden apartments and designed open spaces
• Townhomes usually include private garages, resulting in:• Curb cuts that reduce street parking opportunities and
create new hazards for pedestrians, cyclists, and motorists• Creation of private driveways that impact building layout,
surrounding properties, and add impervious surfacing
Special exception site plan review is needed to ensure that potential impacts are addressed.
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Phase I: Townhouse ZOA
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Phase I: Townhouse ZOA
• When consistent with zoning district development standards (i.e. lot coverage, setbacks, parking), allow existing townhouses in HCD to complete interior alterations, additions, and expansions without requiring site plan approval
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HCD Boundaries For Discussion
Option A: Contiguous MARKs Option B: Broader Boundaries
Westover Area
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HCD Boundaries For Discussion
Option A: Contiguous MARKs Option B: Broader Boundaries
Penrose Area
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HCD Boundaries For Discussion
Option A: Contiguous MARKs Option B: Broader Boundaries
Central Lee Highway Area
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Phase I: Summary
Phase I
• Accept/Adopt Part 1 of HCD Study• Policy Direction for Phases I-III
• Adopt GLUP Amendment• Goals• Objectives• Boundaries
• Adopt AHMP Amendment• Adopt Zoning Ordinance Amendment for Townhouse Development
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October 12 Housing Commission Check-In
October 17 LRPC/ZOCO Check-In
October 18 HALRB Check-In
November 18 Request to Advertise (Phase I)
December 2017 Commission final consideration
December 16, 2017 County Board adoption
Dec. 2017/Jan. 2018 RTA Phase II
Feb./Mar. 2018 Commission and County Board final consideration of Phase II
June/July 2018 Phase III implementation*Schedule subject to change based on results of analysis, community feedback and other factors*
HCD Implementation