Title
Accessory Dwelling Unit Pilot Program (B)
Explanation
This is a request that the City Commission authorize the City Manager to implement an Accessory Dwelling Unit (ADU) Pilot Program to create public/private partnerships with Faith-Based or Non-Profit Organizations to increase the availability of affordable rental units for income eligible households.
The City Commission’s Strategic Plan identifies increasing access to affordable housing as a top priority. In an effort to continue addressing the City’s affordable housing goals, staff is proposing a pilot program that combines partnering with faith-based and non-profit organizations with promoting the use and development of ADUs.
On September 3, 2020, the City Commission adopted various amendments to the Land Development Code permitting the construction and occupancy of ADUs throughout the City. This ordinance, 190988, allows up to two ADUs (one attached and one detached) in all residential zones (including the single-family zones where they were formerly banned), removes parking requirements, and removes owner occupancy requirements that made ADUs a less viable option across the City.
The City Commission has identified expanding the construction and availability of ADUs as a good strategy to efficiently provide affordable infill housing throughout the City. Data analysis indicates a high demand for affordable one- and two-bedroom units to meet the needs of Gainesville’s smaller (one- and two-person) income-eligible households. The proposed Pilot Program is designed to help meet that demand and to demonstrate the use of ADUs for income-eligible households.
The provisions of the Pilot Program are detailed in the Term-Sheet in the back up to this agenda item. A summary of the key provisions of the Pilot Program is provided below:
1) The property must accommodate a single primary residential unit and at least one ADU per the City of Gainesville Zoning Code;
2) If the property is occupied, the Owner must relocate the current occupant(s), to a comparable unit at a comparable price (The Owner pays moving and/or storage costs.);
3) The source of funding for the ADU Pilot Program will be the City’s ConnectFree Program;
4) Funding will be awarded in the form of a 10-year grant, commonly referred to as a forgivable loan;
5) The maximum funding available is up to $300,000.00 per project (Staff anticipates that the City will fund one project each year.);
6) The Affordability Period is ten (10) years;
7) For the duration of the Affordability Period, the Owner must rent all units that are subject to the Terms of the Loan to a household whose income does not exceed 50% of Area Median Income adjusted for household size. See U. S. Department of Housing and Urban Development (HUD) Income Limits for Gainesville Metropolitan Statistical Area (MSA);
8) For the duration of the Affordability Period, the amount charged for rent must be affordable to the tenant household, based on guidelines that are set by HUD, and are updated annually;
9) For the duration of the Affordability period, the Owner should establish a reserve account utilizing a portion of its monthly rent (a minimum of 10% per unit, per month) to address on-going maintenance and upkeep of the properties; and
10) The subject property will not be eligible for City financial assistance for any future rehabilitation.
In addition, City staff has identified an opportunity to partner with a local church in piloting this program. The Dayspring Missionary Baptist Church, which is located in the Greater Duval Neighborhood, currently owns a significantly dilapidated quadplex on property adjacent to the church. The quadplex is located at 714 NE 20th Street.
The structure, which was moved to its current location in 1959, is a non-conforming use due to the underlying residential single-family zoning. The current zoning prohibits quadplexes and other forms of multi-family housing under today’s provisions. However, under the City’s ADU provisions, in addition to the primary residential unit, single-family zoning districts allow up to one attached and one detached ADU. Therefore, a total of up to three units could be built on the site.
To discuss the future of the property, representatives from the City and the Church recently met. At that meeting, they considered the possibility of the Church using the property to demonstrate the ADU Pilot Program. Ultimately, both parties agreed that using the Church property as the first beneficiary of the proposed program achieves the goals of both the City and the Church.
Strategic Connection: This item is connected to Goal 3: A Great Place to Live and Experience in the City’s Strategic Plan and is a high priority item. Objective 1 of that Goal is to increase affordable housing opportunities (ownership and rental) for all neighbors and throughout the Gainesville community.
Fiscal Note
The proposed ConnectFree Budget for FY21 includes $300,000.00 for an Accessory Dwelling Unit Pilot Program.
Recommendation
The City Commission: 1) hear a presentation from staff; 2) authorize the City Manager or designee to implement the Accessory Dwelling Unit Pilot Program; 3) authorize the property owned by Dayspring Missionary Baptist Church, and located at 714 NE 20 Street to be the first beneficiary of the Accessory Dwelling Unit Pilot Program; 4) authorize the City Manager or designee to execute agreements with Dayspring Missionary Baptist Church to implement the Accessory Dwelling Unit Pilot Program, subject to approval by the City Attorney as to form and legality; 5) authorize the City Manager or designee to execute agreements with other Faith-Based or Non-Profit organizations to implement the Accessory Dwelling Unit Pilot Program, subject to approval by the City Attorney as to form and legality; 6) authorize the City Manager or designee to execute all program documents and other necessary documents, subject to approval by the City Attorney as to form and legality