Chapter 15.242
FLEXIBLE DEVELOPMENT TRACK

Sections:

15.242.010    Flexible development track purpose and intent.

15.242.020    Flexible development standards.

15.242.030    Flexible development standards – Affordable housing provision.

15.242.010 Flexible development track purpose and intent.

The purpose of this chapter is to provide an optional “flexible development track” that would allow developers flexibility in some development standards, provided they commit to providing some affordable housing. Under this proposal, a developer who voluntarily chooses to use this track would be given flexibility in development standards intended to make it easier and less expensive to create housing. In exchange for this flexibility, the developer would have to provide at least a certain amount of affordable housing. The obligation to provide affordable housing can be achieved with any combination of market-rate housing, provision of affordable housing units guaranteed to remain affordable in the long term, and/or in-lieu credits through cash contributions to the City of Newberg housing trust fund. [Ord. 2730 § 1 (Exh. A (7)), 10-18-10. Code 2001 § 151.230.]

15.242.020 Flexible development standards.

Developers choosing this option may elect to use any/all of the following flexible development standards. Use of this option will require the developer to make provisions for affordable housing as described in NMC 15.242.030.

A. Lot Standards.

1. Street Frontage. Lot frontage or easement width required may be reduced from 25 feet to 20 feet.

2. Lot Depth-to-Width Ratio. Lot depth-to-width ratio may exceed standards otherwise permitted.

3. Other Lot Dimensions. Other required lot dimensions, such as lot width, may be reduced without limit.

4. Rounding Up Credit for “Partial” Lots. Where the maximum number of lots allowed is a fraction, the number of lots allowed may be rounded (with decimals 0.5 or over rounded up). For example, where zoning allows 10.8 lots, the applicant may round up to 11 lots. Lot sizes within the development may be reduced by up to 25 percent in order to attain the partial lot.

5. Multifamily Density Bonus. Multifamily residential developments may increase the allowed number of units by up to five percent beyond the maximum density otherwise allowed in the zone.

6. Minimum Lot Size. Minimum lot sizes may be reduced as follows:

a. R-2: reduce from 3,000 square feet to 2,500 square feet.

b. R-3: reduce from 3,000 square feet to 1,500 square feet.

c. R-P: reduce from 3,000 square feet to 2,500 square feet.

B. Site Design Standards.

1. Side Yard Setback. Side yard setback may be reduced to three feet.

2. Front Yard Setback. Front yard setbacks may be reduced to 10 feet.

3. Coverage. Lot coverage, parking coverage or combined coverage may be increased an additional 10 percent beyond the applicable standard (for example, from 30 percent to 40 percent).

C. Street and Sidewalk Standards.

1. Sidewalk Location. Sidewalks may be constructed on one side only of local streets.

2. Sidewalk Type. Curb-side sidewalks, six feet in width, may be constructed on local streets, eliminating required planter strips.

3. Street Width. Subject to fire marshal and city engineer approval, street width may be reduced to 28 feet with parking on both sides where, in their determination, adequate emergency access, large vehicle access, and parking can be maintained.

4. Right-of-Way Width. Right-of-way width may be reduced, depending upon the street/planter strip/sidewalk configuration. In no case shall the right-of-way width be less than 38 feet. [Ord. 2763 § 1 (Exh. A § 11), 9-16-13; Ord. 2730 § 1 (Exh. A (7)), 10-18-10. Code 2001 § 151.231.]

15.242.030 Flexible development standards – Affordable housing provision.

A developer that chooses to utilize the flexible development standards described in NMC 15.242.020 shall provide affordable housing, as detailed below. The required amount of affordable housing to be provided will be at least 50 percent of the extra units above what would normally be expected in the development. “What would normally be expected” would be calculated as 80 percent of the target density. The formula is as follows:

50% x [# dwelling units in development - (target density in zone {du/ac} x lot size in acres x 80%)] = required equivalent affordable dwelling units (EADUs).

The following describe affordable dwelling units:

A. Long-Term Affordable Dwellings.

1. Moderate Income Units. One moderate income unit equals 0.75 EADUs. “Moderate income units” are defined as residential units on the subject property reserved for qualifying buyers or renters with incomes at or below 100 percent of Newberg area median income.

2. Low Income Units. One low income unit equals 1.0 EADU. “Low income units” are defined as residential units on the subject property reserved for qualifying buyers or renters with incomes at or below 80 percent of Newberg area median income.

3. Very Low Income Units. One very low income unit equals 1.25 EADUs. “Very low income units” are defined as residential units on the subject property reserved for qualifying buyers or renters with incomes at or below 50 percent of Newberg area median income.

4. In order to use this option, the applicant must ensure a legal mechanism is in place to guarantee that the requisite long-term affordable housing units remain affordable for a period of not less than 25 years. Potential tools to guarantee long-term affordability of the units include deed restrictions, mortgage encumbrances, or agreements made in order to receive federal funding. The agreement must be approved by the city attorney.

5. The applicant also may meet this obligation by transferring title to a sufficient amount of buildable land for development of equivalent number of affordable housing units, as prescribed in subsections (A)(1), (A)(2) and/or (A)(3) of this section, to a nonprofit (IRC 501(c)(3)) affordable housing developer or comparable development corporation for the purpose of complying with subsections (A)(1), (A)(2) and/or (A)(3) of this section. The land shall be located within the project, except as provided in subsection (C) of this section, and all needed public facilities shall be extended to the area or areas proposed for transfer. If to be transferred, ownership of the land shall be transferred to the affordable housing developer or development corporation in accordance with said development agreement.

6. The director shall determine the Newberg area median income, using the best available data.

7. The maximum monthly rental rates for moderate, low, and very low income units shall be determined as follows:

a. For moderate income units, the maximum monthly rental rate shall be 30 percent of the area monthly median income minus estimated average monthly tenant-paid utility costs.

b. For low income units, the maximum monthly rental rate shall be 24 percent of the area monthly median income minus estimated monthly tenant-paid utility costs.

c. For very low income units, the maximum monthly rental rate shall be 15 percent of the area monthly median income minus estimated monthly tenant-paid utility costs.

8. For for-sale, long-term affordable dwelling units, the seller shall demonstrate that the sales price does not exceed the following:

a. For moderate income units, the maximum sales price shall be set such that a typical purchaser’s total annual mortgage, homeowner’s insurance, and property tax payments will not exceed 30 percent of the annual area median income.

b. For low income units, the maximum sales price shall be set such that a typical purchaser’s total annual mortgage, homeowner’s insurance, and property tax payments will not exceed 24 percent of the annual area median income.

c. For very low income units, the maximum sales price shall be set such that a typical purchaser’s total annual mortgage, homeowner’s insurance, and property tax payments will not exceed 15 percent of the annual area median income.

9. The maximum rental rates and maximum sales prices described in subsections (A)(7) and (A)(8) of this section shall be adjusted for inflation. In addition, they may be adjusted uniformly each year such that the rates/prices equal market value at the end of the 25-year period. For example, the price of a unit that initially has a maximum sales price that is 75 percent of market value may be sold at 85 percent of market value after 10 years, and at 95 percent of market value after 20 years.

B. Market-Rate Affordable Units. Market-rate affordable units are dwellings on the subject property that, by virtue of their size, are more likely to be affordable on the open market. Such market-rate units must meet one or more of the following criteria:

1. Studio or one-bedroom dwellings with less than 600 square feet gross floor area.

2. Two-bedroom dwellings with less than 800 square feet gross floor area.

3. Dwellings containing three or more bedrooms and containing less than 1,000 square feet floor area.

4. Accessory dwelling units.

Market-rate affordable units equal 0.5 EADU.

C. Construction of Off-Site Units. At the planning and building director’s discretion, long-term affordable dwellings or market-rate affordable units may be constructed at an alternate location in the city and equal 75 percent of the EADUs of on-site units. The off-site unit may not be used as affordable dwelling points for any other project. If this option is selected, the applicant shall file an agreement with the city stating the election to use the off-site unit as credit for the applicant’s project. A property for construction of the off-site units must be secured and platted in a reasonable time frame, as determined at the planning and building director’s discretion. The off-site units must be constructed within two years of the completion of the principal on-site development.

D. Purchase of Affordable Dwelling In-Lieu Credits. In lieu of constructing affordable dwelling units, the applicant may purchase affordable dwelling in-lieu credits by paying a fee to the City of Newberg housing trust fund. The fee shall be assessed at the time of final plat for a subdivision, or at time of building permit issuance for other projects. The price of each credit shall be established by resolution of the city council. The price of a credit shall be calculated based on the following:

The estimated average purchase price for a market-rate dwelling unit suitable for a median sized

family in Newberg, minus the estimated average purchase price affordable to a median sized low income family in Newberg. [Ord. 2730 § 1 (Exh. A (7)), 10-18-10. Code 2001 § 151.232.]