HomeMy WebLinkAboutAgenda 10-01-19 Item 12-6 - Information Item - Memorandum - Response to Petition Regarding Development of Affordable Housing within Orange County INFORMATION ITEM 1
PLANNING & INSPECTIONS DEPARTMENT
Craig N. Benedict, AICP, Director
Administration 131 W. Margaret Lane
(919) 245-2575 Suite 201
(919) 644-3002 (FAX) ORANGE COUNTY P. O. Box 8181
www.orangecountync.gov NORTH CAROLINA Hillsborough, NC 27278
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MEMORANDUM
TO: Board of County Commissioners
FROM: Michael D. Harvey— Current Planning Supervisor
Craig Benedict— Planning Director
CC: Tom Altieri — Comprehensive Planning Supervisor
John Roberts — County Attorney
DATE:
SUBJECT: RESPONSE TO PETITION Regarding Development of Affordable
Housing within Orange County
This memorandum is in response to a petition made at the June 6, 2019 BOCC meeting
regarding the encouragement of `affordable housing'.
On June 11, 2019 staff prepared and disseminated a BOCC Information Request
Outline form (Attachment 1) providing an initial response. What follows is additional
detail on current policies and existing opportunities/limitations as well as a summary of
policy initiatives for further review and discussion.
EXECUTIVE SUMMARY: North Carolina local governments have limited tools to
encourage/promote the development of affordable housing within their communities.
Orange County promotes development of affordable housing through a voluntary
program allowing for density bonuses (i.e. allowing more total units per acre) for
projects proposing housing for low or moderate income households. As indicated this is
a voluntary program and developers are currently not required to participate.
Impediments to the current program include regulatory limits on where density bonuses
are permitted, compliance with dimensional standards for various general use zoning
districts, availability of public infrastructure (i.e. water and sewer), and project review
processes/requirements.
While local government's legal ability to compel or require development of affordable
housing is still in question, the County could revise existing policies/regulations to create
additional incentives to bolster the existing voluntary program. Certain potential policy
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initiatives, such as payment-in-lieu or mandatory provision of affordable housing, may
not be viable unless enabling legislation is received by the State authorizing the County
to engage in same.
BACKGROUND: The provision of affordable housing has become a major area of
concern for local governments across the nation. To address this concern, local
governments typically adopt policies designed to encourage/promote development of
what is defined as affordable housing, a practice commonly referred to as inclusionary
zoning. Inclusionary zoning involves using a local government's zoning power to
encourage private developers to construct/make available land for affordable housing
units.
INCLUSIONARY ZONING: From a practical standpoint, there are potentially 3
categories of inclusionary zoning, summarized as follows:
• Voluntary Programs: Developers are provided some form of incentive (i.e.
density bonuses, relaxed development controls, etc.) to provide affordable
housing units. Incentives and requirements are defined by ordinance.
• Conditional Programs: Involve the imposition of condition(s) as part of the review
of a site specific development project. Examples could include the BOCC
requiring a condition on a Conditional Zoning (i.e. Master Plan Development,
etc.) project for the provision of affordable housing.
Under North Carolina law, conditions or site-specific standards imposed must
either address conformance with the comprehensive plan or be designed to
address identified impacts of a given project.
• Mandatory Programs: All proposed residential developments are required to
provide a specific, previously established, percentage of parcels allowing for the
development of affordable housing.
The viability of such programs continues to remain uncertain. There is no
enabling legislation in North Carolina supporting mandatory programs as a
regulatory tool.
For more information on the inclusionary zoning issue, staff recommends reviewing the
following article, A Primer on Inclusionary Zoning, produced by the UNC School of
Government, which can be accessed utilizing the following link:
https://canons.sog.unc.edu/a-primer-on-inclusionarv-zoning/.
ORANGE COUNTY AFFORDABLE HOUSING POLICY: Section 6.18 Affordable
Housing of the Unified Development Ordinance (UDO) establishes a voluntary program
providing incentives encouraging development of affordable housing, summarized as
follows:
a. A 25% density bonus for projects proposing duplex or multi-family units in
accordance with the following:
i. A minimum of 40% of the units are to be rented to families earning less
than 60% of Orange County median income, adjusted for family size,
as determined by the U.S. Department of Housing and Urban
Development (HUD), hereinafter, "median income",
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OR
ii. A minimum of 20% of the units are to be rented to families earning less
than 50% of median income.
b. A 25% density bonus for projects proposing single family units if proposed bonus
units are sold to families earning less than 80% of median income;
c. A 25% density bonus for single family residential projects proposing donation of
land to Orange County for the purpose of developing affordable housing;
STAFF COMMENT: Section 6.18.3 of the UDO requires donated land
contain either suitable soils for development of septic systems or has
access to public water and sewer. Further, donated land is required to
contain sufficient land area for proposed new lots to comply with minimum
dimensional standards (i.e. minimum lot area, width, etc.) for the general
use zoning district in which the project is located.
d. A 50% density bonus for projects of at least 20% of the units are to be occupied
by families earning less than 50% of median income and the remaining 80% of
units are occupied by families earning less than 80% of median income.
STAFF COMMENT: This bonus does not apply to lands which have been
donated to Orange County in exchange for a density bonus pursuant to
Section 6.18.3 of the UDO.
Per Section 6.18.2 of the UDO, project(s) proposing/requesting a density bonus, where
property is not donated to the County, are required to submit a contract guaranteeing
reserved units will either be purchased or rented to qualifying households. The terms of
this contract are binding on the developer/owner and their successors for a period of not
less than 15 years from the date on which the unit is first occupied' and must be
reviewed and approved by both the County Attorney and the Orange County
Department of Housing and Community Development (HCD).
Per the UDO, approval of an application proposing affordable housing shall not occur
until the contract is approved and executed. Lots or rental units reserved for affordable
housing are required to be denoted on the approved plan.
ISSUE(S):
A. WATER SUPPLY WATERSHEDS: Section 6.18.3 (A) Affordable Housing —
Applicability indicates density bonuses are not viable for: `... a project located
within any Water Supply Watershed designated in the Land Use Element of the
Comprehensive Plan'. This, effectively, eliminates approximately 76% of the
County's planning jurisdiction from consideration for density bonuses.
Attachment 2 contains a copy of the Future Land Use Map (FLUM) of the
adopted Comprehensive Plan denoting the areas designated as a Water Supply
Watershed. These areas correspond to the Watershed Protection Overlay
Districts (hereafter `Districts') where the County has established density
limitations, summarized as follows:
After the 15 year time period,the affected units are no longer obligated to comply with identified purchase/rental
requirement(s).
4
Watershed Protection Overlay District Density Limit
University Lake and Cane Creek — 1 dwelling unit for every 5 acres of
Protected and Critical property.2,3
Upper Eno Critical and Little River 1 dwelling unit for every 2 acres of
Protected property.
Upper Eno Protected ; Lower Eno Allowable density is based on the
Protected ; Haw River Protected ; Jordan underlying zoning district.4
Lake Protected ; Back Creek Protected
Attachment 3 contains a map denoting the location of these Districts. Density
bonuses are not viable in areas where the county has established density limit(s).
To do so would create violation(s) of existing land use regulations.
There are areas of the county where density limits have been established
through the adoption/enforcement of planning agreements. This includes an
area north of the Town of Chapel Hill, located within the Rural Buffer (RB)
general use zoning district. This area has an established density limit of 1
dwelling unit for every 2 acres of property, consistent with the adopted Joint
Planning Area (JPA) Land Use Plan and Agreement. There is no allowance for a
density bonus in this area, even for affordable housing, based on the current
wording of the JPA.5
B. DIMENSIONAL STANDARDS FOR ZONING DISTRICTS: The typical minimum
lot size for parcels throughout the county (i.e. AR and R-1 general use zoning
districts) is 40,000 sq.ft. (0.92 acres) translating to a maximum base density of 1
dwelling unit for every 40,000 sq.ft. There are opportunities to rezone/develop
property at higher intensities based on a parcel's land use designation as
detailed within the adopted Comprehensive Plan and FLUM (refer to Attachment
2).
Property within the `Transition' (10 and 20 Year) land use classifications, for
example, can be rezoned to a general use zoning designation allowing for
additional dwelling units per acre ranging from 5 dwelling units per acre to 14
dwelling units per acre. Attachment 4 contains a copy of Appendix F of the
adopted Comprehensive Plan outlining which general use zoning districts are
permitted within the various established land use categories.
2 A 100 acre parcel of property within the University Lake and/or Cane Creek(protected and critical)watershed
protection overlay has an allowable density of 20 individual dwelling units(i.e. 1 unit for every 5 acres of property).
3 A duplex(i.e. 2 single-family residences in a single structure)would have to be on 10 acres of property to comply
with established density limits.
4 Property zoned Agricultural Residential(AR)for example will have a density of 1 dwelling unit for every 40,000
sq.ft. (0.92 acres)based on the current wording of the UDO.
5 The JPA was adopted by the County and the Towns of Chapel Hill and Carrboro in the late 1980's. Amendments
to the land use plan and agreement have to be approved by all participating entities.
5
Where rezoning to a higher intensity general use zoning district is not permitted,
based on existing land use designation, standard minimum lot size/area as
detailed within the UDO shall be required.6
It needs to be remembered within Article 3 of the UDO, the AR, R-1, and R-2
general use zoning districts are required to adhere to the following minimum lot
size standard for parcels located outside of Watershed Protection Overlay
Districts:
... the minimum usable lot area for lots that utilize ground
absorption wastewater systems shall be 30,000 square feet for
parcels between 40,000 square feet and 1.99 acres in size; zoning
lots two acres and greater in size shall have a minimum usable lot
area of at least 40,000 square feet.
While the County allows subdivision project(s) utilizing the Flexible Development
Option to have wastewater systems within a dedicated easement and/or septic
lot that is recorded and maintained within required open space areas, density
limits identified herein are still applicable. This can impact the granting of density
bonuses given the minimum lot area required for a parcel of property based on
the proposed development.
C. PUBLIC UTILITIES: Higher intensity projects typically require public utilities (i.e.
water and sewer) to ensure provision of potable water and proper treatment of
wastewater. Projects not able to tie onto public utilities are required to rely on
individual well and septic systems for these services.
Attachment 5 provides a copy of the current Water and Sewer Management,
Planning, and Boundary Agreement (WASMPBA) map denoting where public
utilities are intended to support development. At the writing of this memorandum
there are areas of the county, namely west of the Town of Carrboro, north of
Chapel Hill, and north of US Highway 70 where no public utilities are available or
anticipated.
Typically, the extension of public utilities requires development projects to be
annexed into the municipality providing the actual service or an agreement is
reached between the County and the unit of local government supplying the
utility service agreeing that annexation can be delayed. As a reminder,
annexation means development projects do not have to comply with County land
use regulations, including the existing density bonus program for affordable
housing.
There are realistic concerns over the carrying capacity of soils within the county
to support high intensity development relying on individual wells and septic
systems, including off-site systems, to support such development.
Staff has previously heard from developers it is not financially feasible to develop
high intensity residential projects without the ability to tie into public utility
systems.
6 For example,a parcel of property within the Upper Eno Protected Watershed Protection Overlay District that is
within the Rural Residential land use category can be `zoned' only Agricultural Residential(AR)or Rural
Residential(R-1). This district allows for a density of 1 dwelling unit for every 40,000 sq.ft. or 0.92 acres. A
density bonus would not be viable.
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There are also concerns over competing interests with respect to what types of
projects available water/sewer infrastructure should support.
At one end of the spectrum there are arguments available capacity should be
devoted to supporting expanding non-residential developments in an effort to
expand job opportunities for, and reduce the tax burden on, local residents. On
the other end of the spectrum there are arguments being made some of this
capacity should be devoted to supporting the development of higher intensity
residential to address housing needs. At the current time, most areas in the
County's jurisdiction that are anticipated for service by public water and sewer,
and are likely served, are designated for non-residential growth.
D. PROCESS REQUIREMENTS: Per the UDO, review of development projects will
typically involve the following:
Number of Proposed Lots or Proposed Review Process
Process
1 to 5 lots (conventional) Staff review (no planning board or
1 to 12 lots (flexible) BOCC involvement)
6 to 20 lots (conventional) Per Section 2.15 of the UDO:
13 to 20 lots (flexible) • Planning Board approval of
concept plan;
• Planning Board
recommendation on
preliminary plat;
• BOCC review/approval of
preliminary plat.
Processed through the legislative
review process (i.e. decision based
on compliance with UDO, no sworn
testimony or evidence required).
Conditions can be imposed
consistent with ensuring compliance
with mandatory standards outlined
within the UDO.
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Number of Proposed Lots or Proposed Review Process
Process
21 lots and over? Special Use Permit (SUP) — Per
Section(s) 2.7 and 2.15 of the UDO:
• Planning Board
recommendation on
application;
• BOCC holds public hearing in
a quasi-judicial setting to
review and act on project.
Processed through the quasi-judicial
review process (i.e. applicant/those
in opposition bear burden of proving
through substantial evidence and
competent sworn testimony project
does/does not comply with the UDO.
Decision based on BOCC finding
applicant does/does not comply
based on the evidence in the record).
Conditions can be imposed
consistent with ensuring compliance
with mandatory standards outlined
within the UDO.
Review of Conditional Zoning Application — Per Section 2.9 of the UDO:
Approval of Master Plan (residential or mixed Planning Board makes a
use) recommendation;
• BOCC holds a public hearing
to review and take action on
the request
Processed through the legislative
review process (i.e. decision based
on compliance with UDO, no sworn
testimony or evidence required).
Conditions can be included subject
to applicant agreement with same.
Staff has previously heard from developers they are hesitant to propose
affordable housing, even with the potential for density bonuses, as doing so
could require a heightened review process for their project(s).
For example, a developer proposes a 20 lot single-family residential subdivision.
In this scenario, 20 lots is the minimum number of lots necessary for the
Depending on the number of lots,projects proposing more than 20 lots may have to include a rezoning petition to a
Conditional Use(CU)district based on the wording of Section 7.2.3 of the UDO. Staff is in the process of revising
the UDO to eliminate this requirement(i.e.rezoning to a CU district)given recent changes in State law eliminating
CU districts as a viable process.
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applicant to cover the cost(s) of land purchase, development (i.e. application
review/processing, roadway permitting/development, stormwater
permitting/development, landscaping, erosion control permitting/development,
septic permitting/development, provision of recreational amenities, parking, etc.),
and a profit on the project.
Seeking a density bonus for the provision of affordable housing will result in an
increase in the number of proposed lots thereby requiring the project to be
reviewed through the SUP process. This translates to the applicant having to
comply with additional regulatory requirements and provide the appropriate level
of expert testimony `proving' compliance with applicable development standards
consistent with the requirements of the UDO in order for the project to be
approved, all of which increases costs.
Staff has worked with several developers over the years who have argued the
cost-benefit analysis of receiving a density bonus for additional parcels for the
purpose of providing affordable housing does not cover the additional permit
review and development costs they will have to incur.
OPTION(S): As this discussion moves forward, the BOCC could direct various staff to
study the following options, with respect to increasing the development of affordable
housing, in more detail:
1. Allocate a specific percentage of the annual tax levy to support development of
affordable housing units within the county. This could cover land acquisition,
application submittal/processing, and development of required infrastructure (i.e.
roads, stormwater facilities, etc.) and the actual units.
2. Develop a mandatory inclusionary zoning program requiring developers to
designate a certain percentage of development projects to serve affordable
housing needs.
STAFF COMMENT: Recent case law does not lend support to the notion
units of local government can require development of affordable housing.
As detailed within the previously referenced School of Government article,
the courts have not found local governments have authority under existing
State law to establish/require a specific price point for new
parcels/housing.
The development of such a program would require the adoption of
enabling legislation at the State level granting the County authority to
implement the program.
3. Develop a payment-in-lieu program requiring developers to pay a fee for the
development of affordable housing units.
STAFF COMMENT: There are examples, Seattle Washington and
Somerville Massachusetts, where local governments require a developer
to submit a payment-in-lieu fee to satisfy development of affordable
housing in lieu of actual on-site production. These fees are generally paid
into a specific housing fund and used, often along with other local funding
sources, to finance affordable housing developed off site.
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Some concerns staff sees with this option include criticism that such
programs would offer a `loophole' allowing developers to avoid building
affordable housing units within a proposed project. This could be
perceived as `segregating' low to medium income families out of specific
neighborhoods.
Another concern is how the County would devise the fee for such a
program. If the fee is too low, insufficient funds would exist to allow for the
development of affordable housing units. If the fee is too high, the County
may see a lack of interest in residential development thereby exacerbating
existing housing availability. This would also add additional costs to the
existing permit/development review processes, which has been the
subject of concern amongst those in the development community.
As with the development of a mandatory inclusionary zoning program,
staff believes the development of a payment-in-lieu system would require
the adoption of enabling legislation at the State level granting the County
authority to initiate same.
Staff would suggest any additional review of options 2 and 3 should
include an analysis from the County Attorney's office to ascertain the
appropriate path forward as well as identifying the legal obstacles to
same.
4. Modify existing land use policies addressing potential impediments to the current
voluntary affordable housing program, including:
a. UDO text amendment excluding parcels proposed for affordable housing,
proposed consistent with Section 6.18 of the UDO, from being included as
part of the `lot count' associated with the determination of permit review
(Section 7.2.3 of the UDO).
For example, a developer proposes a 20 lot subdivision and requests a 10
lot density bonus for the provision of affordable housing. Under current
rules this would be treated as a proposed 30 lot subdivision and require
the applicant to apply for a SUP. A text amendment could be written to
exempt affordable housing units from this calculation and, potentially,
eliminate concerns over the costs associated with processing the
development request.
b. UDO text amendment modifying Section 6.18 of the UDO indicating
developers interested in proposing affordable housing donate the land
directly to the County for joint development.
Under this option, the County would assume responsibility for the
development and management of the actual land area designated for
affordable housing and partner with the developer to share in the cost of
developing joint infrastructure (i.e. roads, stormwater facilities, recreational
facilities, etc.).
This could lessen the overall impact on the cost of the project to the
developer and increase opportunities for the development of affordable
housing.
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5. Study existing general use zoning within Transition areas (i.e. 10 and 20 Year)
for undeveloped parcels in an effort to identify parcels that could be rezoned to a
higher intensity general use residential zoning district, resulting in additional
opportunities for higher intensity residential development in areas where public
utilities are either available or anticipated.
6. Study possible expansion of Transition areas (i.e. 10 and 20 Year) to include
more property that could be viable for rezoning to a higher intensity residential.
STAFF COMMENT: This would potentially require amendment(s) to
various plans and agreements including, but not limited to; the
Comprehensive Plan and FLUM, WASMBPA, etc.
7. Identify land within the County's jurisdiction, served or intended for service by
public utilities, which could support development or re-development of affordable
housing. The County could, along with the appropriate municipal planning
partner providing the utility service, work proactively to begin development of
affordable housing projects on these properties.
8. Identify available land area within local municipalities, served or intended for
service by public utilities, which could support development of affordable
housing. The County could partner with the appropriate municipality to work
proactively and begin development of affordable housing projects on these
properties.
9. Study the viability of developing regional package treatment facilities in areas
within/adjacent to Transition areas for the purpose of supplying wastewater
treatment for high intensity residential development.
Under this option the County would partner with a developer to construct the
facility thereby potentially expanding the area where high intensity residential
zoning districts could be located as connection to public sewer would not be
necessary.
STAFF COMMENT: Staff has previously met with applicants interested in
developing private wastewater treatment systems to serve their proposed
projects.
Historically the County been hesitant about encouraging, or allowing for,
the development of private wastewater treatment systems. There was a
project off Mt. Sinai Road, Piney Mountain, approved with such a system
which failed in the late 1980's/early 1990's. As a result the County had to
work with the City of Durham to extend utility services to the subdivision to
ensure residents were able to keep their homes.
Such systems are also expensive to install and maintain and decisions
would have to be made about who would assume the perpetual liability
and responsibility for the maintenance of such a system.
10.Modify the UDO to allow, as part of a Conditional Zoning application, applicants
to establish private wastewater treatment facilities for a project. Standards would
have to be developed outlining required installation and perpetual maintenance
issues for the facility as part of this amendment package.
11
STAFF COMMENT: The same concerns identified within number 9 apply
to this option.
11.Complete an assessment of existing policies concerning the development of
affordable housing within the Comprehensive Plan to ascertain if there are
options to establish additional policy requirements for projects in certain land use
categories (i.e. Transition areas), or strengthen existing language to ensure the
provision of affordable housing is more of a priority.
12.Partner with local employers to develop an `employer assisted housing program'
whereby funds could be allocated by the County and these employers on an
annual basis to support the development of `work force housing'.
STAFF COMMENT: This would be a voluntary program.
Attachment 1
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BOCC INFORMATION REQUEST OUTLINE
Meeting Date: June 6, 2019 Response Date: June 11, 2019
ISSUE: Identify ways to encourage or support the development of affordable
housing with incentives, payment in lieu, and other means
Responding Department: Planning & Inspections
A. AMENDMENT TYPE
Map Amendments
Land Use Plan: Yes❑ No❑ Maybe❑
Zoning Yes❑ No❑ Maybe❑
Text Amendments
❑ Comprehensive Plan Text: Yes❑ No❑ Maybe❑
❑ UDO Text:
❑UDO General Text Changes Yes❑ No❑ Maybe❑
❑UDO Development Standards Yes❑ No❑ Maybe❑
❑UDO Development Approval Yes❑ No❑ Maybe❑
Processes
Section(s): TBD
B. RATIONALE
1. Purpose/Mission
Staff has been tasked with identifying ways to encourage or support the development
Lof affordable housing with incentives, payment in lieu, and other means.
2. Analysis
Staff will develop an Info Item memo over the summer for a September 2019 BOCC
meeting agenda outlining affordable housing issues. Attached to this outline is the
Land Use and Development section of the County's Affordable Housing Strategic
Plan which provides more detail on the regulatory aspect of the affordable housing
issue.
Within Orange County's planning jurisdiction, there are some constraints to providing
higher-density housing; these constraints include watershed density regulations
related to water supply watersheds and the absence of public water and sewer lines
which would support denser housing, which is necessary from the
economic/monetary side of land development.
As is shown on the attached Table of Permitted Uses for residential uses, Orange
County permits manufactured homes in all of the residential zoning districts and in
some other types of districts; manufactured housing has been an avenue for many of
the more affordable housing units within the County's planning jurisdiction.
Additionally, the County permits duplexes in all of the residential zoning districts and
multi-family housing is permitted in many of the residential zones.
1
13
Admittedly, affordable housing within housing subdivisions has been difficult to
implement, even with the County's existing density bonus incentive (which is
applicable only outside of water supply watersheds). Land areas outside of water
supply watersheds and the Rural Buffer (a large portion of which is not within a water
supply watershed area) leaves a fairly small geographic area of the County in which
the density bonuses could be applicable. The Rural Buffer has regulatory density
and minimum lot size constraints and a prohibition for public water and sewer lines
which results in only large-lot development within the Rural Buffer.
There may be opportunities for the County to be a partner in providing affordable
housing units in areas of the County served by public water and sewer and/or outside
of the County's planning jurisdiction (e.g., within the planning jurisdiction of a
municipality). A trade-off might be that these are also areas of the County
designated for economic development activities.
Planning staff will work with Housing and Community Development staff and
Attorney's Office staff to develop the Info Item memo referenced above.
3. Comprehensive Plan Linkage (i.e. Principles, Goals and Objectives)
Chapter 4: Housing Element
4. New Statutes and Rules
N/A
C. PROCESS
1. TIMEFRAME/MILESTONES/DEADLINES
a. BOCC Authorization to Proceed
BOCC to direct staff on potential options after Info Item memo is developed.
b. Public Hearing
c. BOCC Updates/Checkpoints
d. Other
2. PUBLIC INVOLVEMENT PROGRAM
Mission/Scope: TBD
a. Planning Board Review:
b. Advisory Boards:
c. Local Government Review:
d. Notice Requirements:
e. Outreach
3. FISCAL IMPACT
2
14
TBD
D. AMENDMENT IMPLICATIONS
TBD
E. SPECIFIC AMENDMENT LANGUAGE
Not Applicable at this time
Primary Staff Contact:
Craig Benedict
Planning & Inspections Director
919-245-2585
cbenedict@orangecountync.gov
3
15
ORANGE COUNTY
N(.TKI-H C;AROLINA Orange County, North Carolina
Orange Affordable • •
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VI. LAND USE AND DEVELOPMENT
A. INTRODUCTION
Land use and zoning standards set mandatory parameters for varying land
uses, housing types, and density to shape community character. Zoning can
be used as a means to exclude or include diverse housing stocks. Zoning
can often affect housing affordability if higher density, smaller lots, or multi-
unit buildings are not permitted. However, zoning alone does not determine
whether or not developments will result in lower density. In many cases,
communities are not developed to the maximum density allowed by zoning
or supported by adopted land use plans. For example, proposed residential
development may determine density and the total number of units based on
the existing base zoning district instead of exploring upzoning opportunities
through the rezoning process. Upzoning or rezoning property to a different
residential or commercial zoning district that allows for greater density
supported by a comprehensive land use plan could allow for increased
density and more residential units compared to what would be permitted
with the existing base zoning district.
Development in Orange County is planned and
guided by the Orange County 2030
Comprehensive Land Use Plan which acts as a
2030 Comprehensive Plan
blueprint for future growth and development.
Zoning and land use controls are regulated and q` F
based on the Orange County Unified
Development Ordinance. Several goals a A>
identified in the 2030 Comprehensive Land Use
Plan and the Housing Element support ADOPTED
affordable housing efforts and needs in the
county. These goals are reflective in standards
contained in the Unified Development Ordinance
that provide for affordable housing opportunities. Orange County strives to
support affordable housing efforts through zoning regulations, permitting
processes, and housing policies.
Draft Affordable Housing Strategic Plan
16
ORANGE COUNTY
N(.TK-L-H C;AROLINA Orange County, North Carolina
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ORANGE COUNTY
KU It 1-H CA 1W Ll NA Orange County, North Carolina
Common zoning principles that are enforced in Orange County and
throughout the state can have a disproportionate impact on available
housing and housing costs. Similar to many growing communities and
counties in North Carolina, Orange County zoning and land use regulations
try to strike a balance between varying impacts and growth management
techniques. Some can create barriers hindering affordable housing efforts
while supporting other goals, nonetheless, certain zoning techniques have
been identified as impediments. In order to promote and support affordable
housing opportunities, these impediments must be reviewed, cross-
balanced, and examined in order to reduce or ameliorate barriers in the
future.
B. CURRENT REGULATIONS SUPPORTING AFFORDABLE HOUSING
OPPORTUNITIES
Providing housing opportunities for residents in a range of income levels is
essential for a well-balanced community. Local government land use
controls that limit the supply of housing can be the primary reason for the
lack of affordable housing. The urban services boundary implemented in
Orange County regulates the location of water and sewer infrastructure and
the supply of available land for development. This can limit the supply of
developable land; create a higher demand and increase housing prices in
the local real estate market.
Recognizing these effects and determining what factors are within Orange
County's control is imperative in developing regulations that support
affordable housing in the county. The Orange County Unified Development
Ordinance contains standards and regulations allowing for and supporting
affordable housing opportunities for Orange County residents. These are
identified below:
• The Unified Development Ordinance does not set minimum square
footage requirements for residential structures, which assists in
reducing overall costs. Minimum room square footages and
dimensions are consistent with the North Carolina State Building
Code.
• Orange County strives to allow for a variety of housing types for
residents in the general use zoning districts, economic development
zoning districts, and conditional zoning districts in Orange County.
Many of these residential uses are permitted by right which reduces
Draft Affordable Housing Strategic Plan ;.
18
�1
ORANGE COUNTY
NCIWI-H C:AROUNA Orange County, North Carolina
the amount of red tape and shortens the review process. A diversity
of adequate housing is fundamental to the welfare of the county and
its residents. Conventional housing (i.e. stick built or tract built home)
is not consistently affordable for or desired by all residents. As a
result, it is imperative to provide for different housing types with
proper regulation to meet the needs of the general public.
o Apartments and other multifamily residential uses including
townhomes and condominiums are permitted in Orange
County. These uses are permitted by right in several
residential zoning districts, general commercial zoning
districts, economic development districts, and conditional
zoning districts.
o Two family dwellings (also known as a duplex) are permitted
by right in several residential zoning districts, general
commercial zoning districts, economic development districts,
and conditional zoning districts.
o Manufactured housing including mobile homes and modular
homes are permitted by right on individual lots in several
residential zoning districts, general commercial zoning
districts, economic development districts, and conditional
zoning districts.
o Mobile home parks are permitted in the county with the
creation of a Mobile Home Park — Conditional Zoning District.
The purpose of the Mobile Home Park - Conditional Zoning
(MHP-CZ) District is to provide for the development of properly
located and planned facilities for mobile home parks.
o Group care facilities are currently permitted in Orange County
in nine residential zoning districts, six general commercial
zoning districts, and one conditional zoning district with a
Class B Special Use Permit.
o Rehabilitative care facilities are permitted by right in Orange
County in the general zoning districts, economic development
districts, and conditional zoning districts.
o Rooming houses (also known as boarding houses) are
permitted by right in four residential zoning districts and one
general commercial district.
o Efficiency apartments (also known as accessory dwelling
units) up to 800 square feet are permitted as an accessory
use to a single family dwelling unit in several residential
zoning districts, general commercial zoning districts, economic
development districts, and conditional zoning districts.
Draft Affordable Housing Strategic Plan
19
�1
ORANGE COUNTY
N(.'IK[-H C:AROUNA Orange County, North Carolina
• A total of 100 mobile homes parks are identified as operational in
Orange County, majority of which do not meet zoning requirements
adopted in 2011. Many were established prior to zoning in the
various townships and no mobile home parks were formally adopted
since the early 1990's. However, these parks are permitted to remain
operational based on Article 8, Non conformities, and provide
affordable housing opportunities to residents.
• Recently approved standards allow for up to five persons who are not
related to reside together in a residential dwelling unit which could
promote co-housing.
• The Orange County Density Bonus policy offers density bonuses to
developers as an incentive to provide affordable housing units within
their residential development. These bonuses are also intended to
promote economically mixed housing developments to provide a
range of housing types and options to low income families. An
increase in density may be permitted for developments providing
housing opportunities to low or median income households. Density
bonus of 25% to 40% may be approved for developments providing a
minimum percent of units for sale to families earning less than 50%
to 80% ofe Orange County m than income. For example, a
development proposing 20 units for sale to families earning less than
50% to 80% of Orange County median income would allow for a
bonus of 5 units, permitting a developer to develop 25 total units.
C. BARRIERS TO FAIR HOUSING
Many factors affect housing costs in Orange County which create barriers
for affordable housing. Although many of these are beyond government
control, there are some factors that can be identified and reviewed to
reduce barriers at the local level. Zoning regulations are implemented
nationwide to assist in regulating land uses and to accomplish objectives for
the public good.
Several planning tools or land use regulations have been established by
Orange County in the past to encourage manageable growth, protect the
environment, and ensure a sustainable, vibrant, and well-balanced
community. However, some of these same tools and regulations can create
unintended consequences affecting the availability of affordable housing.
When reviewing these tools and barriers it is important to note that public
objectives and community goals relating to urban sprawl reduction, efficient
Draft Affordable Housing Strategic Plan
20
ORANGE COUNTY
N(.TKI-H C;AROLINA Orange County, North Carolina
provision of public sewer, environmental protection, and public health need
to be balanced with development in residential and employment sectors.
This can create obstacles when determining options and making decisions
to provide affordable housing.
Some of these tools and regulations were identified as impediments to
affordable housing in the Orange County Home Consortium's Five Year
Consolidated Plan and Analysis of Impediments to Fair Housing Choice.
The matrix on the next page identifies the most common planning tools,
their purpose, unintended impacts, and if they have been identified as
impediments in Orange County.
Draft Affordable Housing Strategic Plan
21
ORANGE COUNTY
NORI CAROLI\A Orange County, North Carolina
• • Review and examine minimum lot sizes, setback
standards, and other land use regulations effecting
Used to control growth Yes. The Urban Services density allowances to determine possible
in a rapidly growing Boundary limits modifications to support and accommodate smaller lot
area by encouraging Contributes to higher land infrastructure and sizes, micro housing, pocket neighborhoods, and
•. higher density cluster housing.
development inside the and housing prices due to development in the Rural the limited amount of land Buffer. This limits the Review existing minimum lot sizes, density standards,
•
= • • • boundary line and and other land use regulations pertaining to two-family
encouraging lower available for development. amount of developable land and increases land and dwelling units to determine possible modifications to
density growth outside encourage this housing type in the future.
the boundary line. housing costs. Evaluate existing standards and new opportunities to
support and allow for offsite septic facilities for
wastewater treatment. By reviewing existing
standards and exploring modern advances in offsite
septic infrastructure and technology, the Unified
Development Ordinance may allow for flexible
residential site design and accommodate smaller lot
sizes compared to the traditional onsite septic system.
Review existing permitted residential land uses,
Yes. Standards contained residential land use standards, and review processes
in the Unified Development specifically related to group homes to determine if
Increases land and Ordinance such as required existing residential standards and review processes
Used to protect development costs by minimum lot sizes in can be modified to expand and provide for more
• neighborhoods from limiting the location of specific zoning districts and diverse residential uses throughout the county.
• incompatible uses and residential land uses and limiting the location of Review and examine Section 5.2, Table of Permitted
nuisances. availability of land for individual residential uses Uses, of the Orange County Unified Development
residential development. such as group homes, limit Ordinance to determine if modifications can be made
affordable housing to allow for a greater mix of residential uses and
opportunities. nonresidential uses in appropriate zoning districts in
the county. Allowing for a greater mix of uses in the
appropriate zoning districts can assist in expanding
and supporting future affordable housing efforts in a
sustainable manner by allowing housing to be located
near employment centers, public transit, and public
services.
Draft Affordable Housing Strategic Plan
22
ORANGE COUNTY
\ORI-1-1 CAROLINA Orange County, North Carolina
• Used to encourage Constrains land from No. Currently, there is no
Zoningaffordable housing by complete economic use and state enabling legislation in
Practices requiring developers to may increase average North Carolina to support
reserve a portion of new housing prices. this regulatory tool.
units for low to Voluntary inclusionary
moderate income zoning practices can be
households. implored with the use of the
conditional use permitting
process. However, this can
extend the review period
and create delays for
residential projects.
•• Subdivision ordinances, May consume more land No. Standard minor and
Controlswhich regulate the land than necessary and major subdivision
development, unnecessarily raise the cost regulations enforced by the
infrastructure, and site of housing. These costs may Orange County Unified
design characteristics be added onto the initial Development Ordinance
of new housing are a costs of a home and passed are marginal in order to
primary tool onto the new home owner. protect the health, safety,
communities use to and welfare of residents.
plan and regulate
residential
development. May
require regulations
such as increased
street widths, more
parking, and greater
setback standards.
• • Fee imposed by a local Required impact fees on No. Orange County does
government on new residential units are paid by collect an impact fee for
development to pay for the developer which may be each residential unit prior to
a portion of costs of passed onto the home construction. However, for
providing public owner, increasing housing affordable housing
services incurred as a costs. construction, this fee is
result of the new reimbursed to the
development. developer from the county.
Draft Affordable Housing Strategic Plan
23
ORANGE COUNTY
NORI-1-1 CAROLINA Orange County, North Carolina
• Used to ensure that Multiple, time consuming No. Orange County's
• proposed development steps may increase carrying permitting process is
meets local government costs on developers' standard and comparable to
zoning and land use construction debt. These other local governments. No
regulations. costs may be passed onto excessive permitting or wait
the home owner, increasing times are employed by the
housing costs. county for residential
developments.
• Used to keep types of Lowers the available stock of No. Currently Orange
• housing out of an area housing units for low income County allows for a variety
• that might be residents and increases of housing types including
• considered unattractive average housing costs. single family homes,
or could bring in townhomes, duplexes,
undesirable neighbors. apartments, and, mobile
homes.
Draft Affordable Housing Strategic Plan
TABLE OF PERMITTED USES
=PERMITTED USE A=SUBJECT TO USE STANDARD =CLASS A SPECIAL USE B=CLASS B SPECIAL USE C=CONDITIONAL USE(REZONING&CLASS A SUP)
GENERAL USE ZONING DISTRICTS ECONOMIC DEVELOPMENT DISTRICTS CONDITIONAL ZONING
USE TYPE
RB AR R1 R2 R3 R4 R5 R8 R13 LC1 NC2 CC3 GC4 EC5 O/ AS El 11 12 13 PID EDB- EDB- EDE- EDE- EDH- EDH- EDH- EDH- EDH- ASE- MPD- HP- REDA-
RM 1 2 1 2 1 2 3 4 5 CZ CZ CZ CZA
lAttachment
Future Land Use Map 25
of the Orange County Comprehensive Plan
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Attachment 4 27
Appendix F. Land Use and Zoning Matrix
Appendix F. Relationships Between Land Use
Classifications and Zoning Districts
Per the Orange County Unified Development Ordinance, zoning districts are applied
to Land Use classifications and overlays in accordance with this appendix. A matrix
is provided at the end of this appendix that links the zoning districts to the land
use classifications and overlays listed.
TRANSITION LAND USE CLASSIFICATIONS
CHAPEL HILL AND CARRBORO TRANSITION
On November 2, 1987, a Joint Planning Agreement was adopted by Orange County
and the Towns of Chapel Hill and Carrboro. The Agreement became effective on
November 14, 1988, following the adoption, by Orange County, of zoning plans
prepared by the two municipalities for their respective Transition Areas. The
applied zoning districts are those contained in the Chapel Hill Land Development
Ordinance and the Carrboro Land Use Ordinance, and are consistent with the land
use plan categories contained in the Orange County Chapel Hill Carrboro Joint
Planning Land Use Plan. Reference should be made to the appropriate municipal
ordinance and zoning map for a description of the districts and applicable
development standards. Under the terms of the Joint Planning Agreement, the
Towns of Chapel Hill and Carrboro are responsible for permit administration within
their respective Transition Areas.
10-Year Transition
Identifies areas changing from rural to urban in form and density. All densities of
residential development would be appropriate. Non-residential uses implemented
in accordance with small area plans and/or overlay districts may be appropriate.
The applied zoning districts include: R-1 (Rural Residential); R-2 (Low Intensity
Residential), R-3 (Medium Intensity Residential), and R-4 (Medium Intensity
Residential); and R-5 (High Intensity Residential), R-8 (High Intensity Residential),
and R-13 (High Intensity Residential) residential uses, and Zoning Overlay Districts.
20-Year Transition
Identifies areas changing from rural to urban in form and density. All densities of
residential development would be appropriate. The applied zoning districts
include: R-1 (Rural Residential); R-2 (Low Intensity Residential), R-3 (Medium
Intensity Residential), and R-4 (Medium Intensity Residential); and R-5 (High
Intensity Residential), R-8 (High Intensity Residential), and R-13 (High Intensity
Residential) residential uses.
COMMERCIAL TRANSITION ACTIVITY NODE
Identifies areas changing from rural to urban in form and density. A full range of
intensities of commercial development would be appropriate. The applied zoning
districts include: LC-1 (Local Commercial); NC-2 (Neighborhood Commercial); CC-3
(Community Commercial); GC-4 (General Commercial); and O/RM (Office/Research
and Manufacturing).
COMMERCIAL INDUSTRIAL TRANSITION ACTIVITY NODE
Identifies areas changing from rural to urban in form and density. A full range of
commercial and industrial activities would be appropriate and allowed. The applied
zoning districts include: 1-1 (Light Industrial); 1-2 (Medium Industrial); 1-3 (Heavy
Industrial); LC-1 (Local Commercial); NC-2 (Neighborhood Commercial); CC-3
0i,a,rL�C&u*ity Comps- lw",-0velPlc. Page F 1
28
Appendix F. Land Use and Zoning Matrix
(Community Commercial); GC-4 (General Commercial); and O/RM (Office/Research
and Manufacturing).
ECONOMIC DEVELOPMENT TRANSITION ACTIVITY NODE
Identifies areas along major transportation corridors that may be in proximity to 10-
Year or 20-Year Transition areas of the County which have been specifically targeted
for economic development activity consisting of light industrial, distribution, flex
space, office, and service/retail uses. Such areas are located adjacent to interstate
and major arterial highways, and subject to special design criteria and performance
standards. The applied zoning districts are EDB-1 (Economic Development Buckhorn
Lower Intensity), EDB-2 (Economic Development Buckhorn Higher Intensity), EDE-1
(Economic Development Eno Lower Intensity), EDE-2 (Economic Development Eno
Higher Intensity), EDH-1 (Economic Development Hillsborough Linear Office), EDH-2
(Economic Development Hillsborough Limited Office), EDH-3 (Economic
Development Hillsborough Limited Office with Residential), EDH-4 (Economic
Development Hillsborough Office), and EDH-5 (Economic Development Hillsborough
Office/Flex).
RURAL LAND USE CLASSIFICATIONS
RURAL BUFFER
Only very low density residential, agricultural uses exempt from zoning regulations,
and low-intensity agricultural support uses are appropriate in the Rural Buffer. The
applied zoning district is RB (Rural Buffer).
RURAL RESIDENTIAL
Identifies rural areas to be developed as low intensity and low density residential.
The applied zoning district is R-1 (Rural Residential).
AGRICULTURAL RESIDENTIAL
Agricultural activities and associated residential and commercial uses predominate.
The applied zoning districts reflect this primary land use and include: AR
(Agricultural Residential) and AS (Agricultural Services).
RURAL COMMUNITY ACTIVITY NODE
Identifies rural crossroads communities throughout the County where small scale
commercial activities serving the community and surrounding area are appropriate.
The applied zoning districts include: LC-1 (Local Commercial) and NC-2
(Neighborhood Commercial).
RURAL NEIGHBORHOOD ACTIVITY NODE
Identifies areas in the County where small scale commercial uses serving the
population in the surrounding area are appropriate. The applied zoning districts
include: LC-1 (Local Commercial) and NC-2 (Neighborhood Commercial).
RURAL INDUSTRIAL ACTIVITY NODE
Identifies rural areas in the County where small scale industrial activities would be
appropriate. The applied zoning district is 1-1 (Light Industrial).
OVERLAYS
PUBLIC INTEREST AREA
These lands are considered valuable for recreational and research purposes and are
afforded special treatment. The applied zoning district is PID (Public Interest
District).
Orange Cm*-Wy Cc-nVrOwwu Ne Pla w Page F 2
29
ppendix F. Land Use and Zoning Matrix
ZONING DISTRICTS
N V�
I W W W '^'i •Y
N x C A
oo W W w N U U N
Land Use Classifications& vi cq en
Overlays N d ;4 4 0! W L4 U U W
Chapel Hill Transition Permit Administration by Municipalities under the provisions of the Joint Planning Agreement-
Carrboro Transition Contact amiromiate Munici ali fora licable Zonin2 Standards
10-Year Transition
20-Year Transition
C
Commercial Transition
Activity Node
Commercial-Industrial
F" Transition Activity
Economic Development
Transition Activity Node
Rural Buffer
Rural Residential
Agricultural Residential
Rural Community Activity
a Node
Rural Neighborhood
Activit Node
Rural Industrial Activity
Node
R
Public Interest Area
0
Amended 02-13-17
0raAge.,CM*-WY CrnnVvMe4i., Ne Pla w Page F 3
Attachment 5
30
Appendix A
Water and Sewer Management Planning and Boundary Agreement
4
N
Mebane
Hillsborough
C"
l0 Legend
> Hillsborough Long-Term Interest Area
Hillsborough Primary Service Area
OWASA Long-Term Interest Area
Orange County Primary Service Area
OWASA Primary Service Area
Orange County Long-Term Interest Area
Chapel.Hill'
Rural Buffer Boundary
Carrboro
Iq
0 1 2 3 4
dGI-1 t mmmz==Miles
sF.
1 inch =3 miles
Orange County Planning and Inspections Department
Updated OWASA Primary Service Area,Brian Carson 6126117
Added Hillsborough Long-Term Service Area,Miram Coleman,1015110
Revised Orange Country Primary Service Area,Miriam Coleman,1015110
Updated Hillsborough Primary Service Area,Miriam Coleman,10/22/08
Updated Streets,Miriam Coleman,2002
Revised Map to show retracted Chapel Hill Urban Service Boundary,Carne Whitehill,11114101
Original Map Prepared by Beth McFarland,04117197
Effective data 6/26/17