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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 IqL • ® ® �. `► � 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 2 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", 3 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. 6 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. 7 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. 8 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. 9 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. 10 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 12 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 • • gic 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 Future Land Use Map of the Orange County Comprehensive Plan eJ Y T-". Li 1a_ Pr:x ucirh; Li qk _ '' �I• Nil Is W& t4 ' ' L` ��75btrsh�C�rrlrees •�•''Ld1 �� �r - trSypryrYfelerihetls •L�Y � WCAJairrt Rarrnhp Area RUC rrtreat rrras •r, • .�� �Realouoe Rabdlm Areas 10Tm Tr.�M. Ir '' f 4 - - �fP rG' 'p ,r,: Rural Poesldertlal Rrral BLrMr 9 r' 'S Aprl[llhaal RendentW 21 EFJ Rural"Chbodumd Cu-rrcrclel Traratlm 31 D rfnsleHD2zwal Traratlon 4r k k �i -Rural f.imm Id P. 9 1 2 3 - i Yr-2.75 mla. {ria7.am County — Draft Affordable Housing Strategic Plan ;; 17 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 Caswell County _aD os- / Person County Ill I -—---—-!&—GRAY RD—--- ---—--- --- r 1_4!,!Litt1jr kiverli" tv, t'R a atersh ;e ND An 0- HAWK1111 C OL/A,, q LITTLE RI\Z'CHURCH -L A- Itt" 7 KIGER RD .1' '00': r I Z 0 4z 00"I C' �JFO b" T1- S Cheeks I T I Eno Twp 1. Iq MyLRV I.-Hii'llsborough-11, C 1, t R D .�r \A IT I Adoption Date;Nov 18,2008 Z' 0 Amended through November 2014 C •r '47� 0 0 C s Mebane 0 N Vol an 7F W E Li L E 'al LE US ?a ID OP 0 Legend: .0 A/ Watershed Critical Areas Water Supply Watersheds n'_0 a, w Cha =OC/CH/CA Joint Planning Area Public Interest Areas Resource Protection Areas 10 Year Transition W20 Year Transition A Rural Residential 01 Rural Buffer Agricultural Residential x NICK City Limits OWN IF In > ETJ 0 -A (D I RD Activity Nodes Tl� EU 'f W VER "'; b Rural Neighborhood RD Commercial Transition O 0 Commercial-Industrial Transition Economic Development Transition 2 Rural Community IN EST,,� 0 1p Rural Industrial I I HESU 0 19 1 4 Li JRQY L P;.a\14 0, V*V 0 Chapel Hill 114 V 5�1. 0 1 2 3 4 0 Miles Ihe jlk a 1 in 2.75 miles it 0—i and Planning and Ini Department This py printad Jan =,�ys2%2 16. _,00 Cnn Map v f.r refer a mv. 1r 0: 1 P.—ri;..ff for veriff—h- fd... 01 j Chatham County 1 • �l 1 t� a ► , s- ' OWN1�1 ''' bird IA old- 40 Wxy (�} 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