AGENDA ITEM REPORT
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AN ORDINANCE AMENDING THE CITY’S CODE OF ORDINANCES, BY AMENDING CHAPTER 13, “LAND DEVELOPMENT CODE,” ARTICLE III, “ZONING REGULATIONS,” DIVISION 3, “ZONING DISTRICT REGULATIONS AND TABLES,” TO CREATE SECTION 13-363, “QUALIFYING DEVELOPMENT PURSUANT TO SECTION 166.04151(7), FLORIDA STATUTES, UNDER THE LIVE LOCAL ACT,” AND AMENDING DIVISION 5, “SITE PLAN REVIEW REQUIREMENTS,” BY AMENDING SECTION 13-546, “APPROVAL REQUIRED,” AND CREATING SECTION 13-551, “SITE PLAN REVIEW PROCEDURES FOR APPLICATIONS PURSUANT TO SECTION 166.04151(7), FLORIDA STATUTES,” TO PROVIDE FOR DEVELOPMENT REGULATIONS AND ADMINISTRATIVE REVIEW OF CERTAIN AFFORDABLE HOUSING PROJECTS PURSUANT TO STATE LAW; AND BY AMENDING CHAPTER 13, “LAND DEVELOPMENT CODE,” ARTICLE I, “ADMINISTRATION, REGULATIONS AND PROCEDURES,” DIVISION 3, “IMPLEMENTATION PROCEDURES,” SECTION 13-34, “APPEALS,” TO PROVIDE FOR CITY COMMISSION REVIEW OF ADMINISTRATIVE DECISIONS. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the September 14, 2023, Regular Commission Meeting. However, the City Commission directed staff to prepare a survey of apartment dwelling unit sizes and rent prices and re-evaluate the minimum unit size requirements, as well as consider a waiver procedure for certain development standards. Below is a summary of the findings and/or recommendations for consideration on Second Reading.
Apartment Dwelling Unit Size and Rent Price Survey: Staff performed an online survey of sixteen (16) apartment communities in the City to determine average dwelling unit size and rent price (attached in backup). The results of the survey show that studios average 691 square feet; one-bedroom units average 838 square feet; two-bedroom units average 1,194 square feet; and three-bedroom units average 1,385 square feet. Average rental prices are $1,859, $1,948, $2,322, and $2,712, respectively. Based on the results of the survey and Commission direction, the minimum dwelling unit sizes have been changed as follows:
a. Studio/one-bedroom - 850 square feet;
b. Two-bedroom - 1,200 square feet; and
c. Three-bedroom - 1,400 square feet.
The ordinance has been updated to reflect these dwelling unit sizes.
In 2023, the Florida Legislature adopted the Live Local Act (“Act”) to promote the development and availability of affordable housing in the State. The Act, which went into effect July 1, 2023, addresses numerous housing related issues. Among other things, the Act:
• Prohibits local ordinances and rules imposing price controls;
• Preempts land use, density, and height regulations for affordable housing projects meeting specified affordability thresholds, allowing them to locate in commercial, industrial, and mixed-use zoning districts;
• Requires that site plans for affordable housing meeting the requirements of the Act be administratively approved by the local government;
• Establishes regulations for the disposition of municipal property for affordable housing;
• Creates new property tax exemptions for affordable housing, including an option for local governments to adopt ordinances providing certain property tax exemptions;
• Creates a state housing strategy by establishing policies and recommendations for state, local, and private sector partnerships; and
• Creates the Hometown Hero Program to assist residents in home purchases.
Because certain affordable housing thresholds regulated by the Act are self-executing, but leave significant regulatory gaps within the City’s purview, staff believes it is important to address the topic in a timely fashion. As such, this ordinance proposes changes to the Code of Ordinances to address only those parts of the Act that address projects providing at least forty percent (40%) of the residential units as affordable housing. At this time, City staff does not anticipate amendments to the City’s Comprehensive Plan as it contains adequate goals, objectives, and policies consistent with the Live Local Act requirements (or is preempted by the Act related to use, density, and height). City staff will continue to review and research other components of the Act, including the tax exemption issues and opportunities, and will bring recommendations at a later date, if warranted.
DISCUSSION:
One of the driving goals of the Act is to expand the opportunities for affordable housing. The Act preemptively authorizes multi-family and mixed-use residential development in any area zoned for commercial, industrial, or mixed use if at least forty percent (40%) of the residential units proposed in the multi-family residential development are affordable for a period of thirty (30) years. This proposed ordinance defines developments that meet the statutory requirements of the Act as “qualifying developments” and establishes additional regulations and procedures to meet the requirements of the Act, as discussed below.
Affordability, as defined in Section 420.0004, Florida Statutes, is determined annually by the Florida Housing Finance Corporation for each of Florida’s sixty-seven (67) counties and is summarized for Broward County in the chart below.
|
|
Income Limits Up to 120% Area Median Income (AMI) |
Rent Limit by Number of Bedrooms in Unit |
|
Single person household |
$80,640 |
$2,016 (studio) |
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Family of 4 |
$115,200 |
$2,995 (3 bed) |
Source: Florida Housing Finance Corporation, May 2023
In addition to preempting the location of affordable housing, the Act also preemptively establishes building height and residential density standards for such qualifying development projects, regardless of what any underlying zoning regulations provide. The maximum building height for a qualifying development will be established by the highest currently-allowed height for a commercial or residential development located in the City of Coconut Creek and within one (1) mile of the proposed development or three (3) stories, whichever is higher.
For example, qualifying developments proposed within one (1) mile of portions of the MainStreet Regional Activity Center (RAC) may have a maximum building height of ten (10) stories. Whereas, in other areas of the City, located more than one (1) mile from the MainStreet RAC, building heights would range from three (3) to six (6) stories in height for qualifying developments, depending on the actual location.
Under the Act, residential density for qualifying developments will be determined by the highest allowed density on any land in the municipality where residential development is allowed. Currently, the highest residential density within the City is in the City’s MainStreet RAC Sub-District MS-T, located along State Road 7/441, which allows a maximum of forty (40) dwelling units per acre.
This proposed ordinance recognizes the state preemption on use, height, and density for qualifying developments in commercial, industrial, and mixed-use zones, and also addresses regulatory gaps that are within the City’s purview in order to establish regulations to effectively implement the Act. Below is a summary of the primary issues.
• Administrative Approval. The Act requires that a municipality approve qualifying development site plans administratively if the development satisfies the statute, the municipality’s land development code, and is consistent with the Comprehensive Plan (other than where preempted as to use, height, and density). Although the Act preempts use, height, and density as described above, all other land development regulations such as parking, setbacks, open space, buffers, etc. must be followed. The proposed ordinance amends the site plan review procedures to provide for an administrative review process for applications for qualifying developments consistent with the requirements of the Act. The administrative decision may be appealed through the existing appeal procedure, which is included in this ordinance to streamline the process, providing for direct appeal to the City Commission.
• Minimum Non-Residential Space & Mixed-Use Development Required. The Act permits cities, such as Coconut Creek, that have less than twenty percent (20%) of their land area made up of industrial and commercial land uses to require that qualifying developments under the Act have a mixed-use component. However, the Act does not specify how much of a project that mixed-use, commercial or industrial, component must be. The Act does require that sixty-five percent (65%) of the project be residential, of which forty percent (40%) must be affordable. The preservation of the City’s shopping districts, job centers, and tax base is important to help support residents, as well as opportunities for affordable housing development. Therefore, in order to maintain our land use balance, as permitted by the Act, the ordinance proposes that a minimum of thirty-five percent (35%) of the total gross floor area of a qualifying development project consist of non-residential uses. The non-residential uses permitted on a site would be based on the non-residential uses permitted in the underlying zoning district.
• Multi-Family Regulations. The Act does not specify which multi-family zoning regulations a qualifying development in a commercial or industrial zoning district should follow. The City has six (6) districts where multi-family dwellings are permitted, including the MainStreet RAC, plus a number of mixed-use Planned Unit Developments (PUDs). The applied regulations also need to address mixed-use concepts and provide appropriate buffering of uses, particularly if industrial uses are involved. The ordinance consolidates the most appropriate zoning regulations to address the mixed-use concepts and preserve affordability into one set of development regulations applicable to qualifying developments. A qualifying development located in the MainStreet RAC will be subject to the Mainstreet Design Standards. Much of the Mainstreet Design Standards will also be applied to those qualifying developments within one (1) mile of the MainStreet RAC since many of those locations will be eligible for significant height and density increases, which the Mainstreet Design Standards address more appropriately.
• Parking Regulations. The Act states that the City may consider parking space reductions where Live Local developments are located near “major transit stops.” The City does not have a definition of a major transit stop in the Code. The ordinance proposes a common industry definition. At this time, the City does not appear to have any major transit stops; however, the City is undergoing a Mobility Hub Master Plan study and preparing a Transit Master Plan. Having a definition and regulation in place as proposed in the ordinance is consistent with the Act and, depending on these developing plans and future growth, will be useful if future transit recommendations and infrastructure include a major transit stop.
• Minimum Dwelling Unit Size. The City’s multi-family zoning district regulations have varying minimum dwelling unit sizes ranging from 1,000 to 1,600 square feet. There are a much broader range of unit size requirements within the City’s PUDs and Planned MainStreet Development Districts (PMDDs). However, to accommodate affordable residential development, unit sizes less than 1,000 square feet are recommended. City staff evaluated the residential zoning districts and various PUDs and PMDDs, and the ordinance provides recommended unit sizes providing for affordability while maintaining City quality of life goals.
• Equivalency of Affordable and Market Rate Unit Designs. History has shown that segregation and compartmentalization of affordable housing can create many negative impacts. One important way to reduce these impacts and help prevent a host of social and economic inequalities (that could also potentially be deemed discriminatory) is to decrease the disparities between affordable and market rate units. As such, the ordinance proposes language requiring that the affordable units and the market rate units be equivalent in site location, accessibility, design, size, quality, and appearance among other things.
• Affordability Commitment. Although the Act requires that affordable units remain affordable for a minimum of thirty (30) years, it does not provide the City with any enforcement mechanisms for noncompliance. The ordinance requires a covenant that runs with the land and provides penalties and enforcement tools the City can utilize, if needed, to ensure the housing affordability promised is maintained.
• Zoning in Progress. The City administration has developed this ordinance to provide for implementation of the Act, which was effective as of July 1, 2023. Pursuant to Smith v. City of Clearwater, 383 So. 2d 681 (Fla. 2d DCA 1980), the City is declaring and implementing the pending ordinance doctrine concerning the zoning and land development regulations governing the development of affordable housing projects proposed on properties located in commercial, industrial, PUD, PMDD, or Planned Commerce District (PCD) zoning districts. Property owners and developers should be aware that provisions of this pending ordinance not yet adopted by the City Commission may be applied to any proposed development applications and any development applications may be delayed until the adoption and effectiveness of this ordinance; thus, property owners and developers should not rely on existing land development regulations in making investment and development-related decisions.
RECOMMENDATION:
The Planning and Zoning Board is considering this ordinance at its September 13, 2023, meeting. The Board’s recommendation will be presented at first reading. Staff recommends approval of this ordinance.
FISCAL IMPACT: N/A