§ 2-45-115

2015 affordable requirements

This section shall apply to any residential housing project for which the city council has passed an ordinance approving a rezoning, city land sale, or financial assistance, as described in subsection (C), unless such residential housing project is subject to the affordable housing requirements in effect prior to the effective date of this section pursuant to the prefatory clause of Section 2-45-110.

A.

Title and purpose. This section shall be known and may be cited as the “2015 Affordable Requirements Ordinance” or “2015 ARO,” and shall be liberally construed and applied to achieve its purpose, which is to expand access to housing for low-income and moderate- income households and to preserve the long-term affordability of such housing.

B.

Definitions. For purposes of this section, the following definitions shall apply:

“Affordable” means a sales price or rent less than or-equal to the amount at which total monthly housing costs, as specified in the rules and regulations, would total not more than 30% of household income for a household whose income is the maximum allowable for an eligible household.

Affordable housing” means (1) with respect to rental housing, housing that is affordable to households earning up to sixty percent (60%) of the area median income, and (2) with respect to owner-occupied housing, housing that is affordable to households earning up to one hundred percent (100%) of the area median income. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, “affordable housing” for that project means:

i.

with respect to rental housing, one-half of the housing units required to be affordable are affordable to households earning up to sixty percent (60%) of the area median income, and one-half of the housing units required to be affordable are affordable to households earning up to fifty percent (50%) of the area median income; and

ii.

with respect to owner-occupied housing, one-half of the housing units required to be affordable are affordable to households earning up to one hundred (100%) of the area median income, and one-half of the housing units required to be affordable are affordable to households earning up to eighty percent (80%) of the area median income.

Affordable housing agreement” means a covenant, lien, regulatory agreement, promissory note, mortgage, deed restriction, right of first refusal, option to purchase or similar instrument, governing how the developer and subsequent owners or occupants of affordable units shall comply with this section.

Affordable unit” means a housing unit required by this section to be affordable, whether located on-site or off-site and whether a rental unit or an owner-occupied unit.

Area median income” means the median household income for the Chicago Primary Metropolitan Statistical Area as calculated and adjusted for househoid size on an annual basis by HUD.

Authorized agency” means the Chicago Housing Authority, the Chicago Low-Income Housing Trust Fund, or another non-profit agency acceptable to the city, which administers subsidies under HUD’s McKinney-Vento Homeless Assistance Grants program, or the Veterans Administration Supportive Housing program, or another housing assistance program approved by the city.

Chicago Community Land Trust” means the Illinois not-for-profit corporation established by ordinance adopted on January 11, 2006, and published at pages 67997 through 68004 in the Journal of Proceedings of the City Council of such date, as amended, and having as its primary mission the preservation of long-term affordability of housing units, or any successor organization.

Commissioner” means the commissioner of planning and development, or his or her designee.

“Common ownership or control” refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member, as that term is defined in Section 4-284-020, of an investor of the entity owns ten percent (10%) or more of the interest in the property.

Condominium” means a form of property established pursuant to the Illinois Condominium Property Act.

Contiguous parcels” means any parcel of land or lot that is (1) touching another parcel or lot at any point, (2) separated from another parcel or lot at any point only by a public or private street, road, or other right-of-way, (3) separated from another parcel or lot at any point only by a public or private utility, service, or access easement, or (4) separated from another parcel or lot only by other real property under common ownership or control which is not subject to the requirements of this section at the time of application for the City approval that triggers the obligation to comply with this section.

Department” means the department of planning and development or any successor department, acting by or through its commissioner.

Developer” means the owner, as that term is defined in Section 13-4-010, of the residential housing project and, if different from the owner, any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which develops the residential housing project and, if applicable, provides off-site affordable units, together with their successors and assigns, but does not include a lender, any governmental entity or the general contractor working for any developer.

Development” or “develop” means, for purposes of determining whether the requirements of this section are triggered, the construction or substantial rehabilitation of housing units or the conversion of any building into residential condominiums.

Downtown districts” means the “D” zoning districts as now or hereafter designated in the Chicago Zoning Ordinance, Chapter 17-4 of the Municipal Code.

Eligibility criteria” means (1) with respect to rental housing, at the time of the first rental by that household, a household earning up to sixty percent (60%) of the area median income; or (2) with respect to owner-occupied housing, at the time of the purchase of the unit, a household earning up to one hundred twenty (120%) of the area median income. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, “eligibility criteria” for that project means:

i.

with respect to rental housing, at the time of the first rental by that household, a household earning up to sixty percent (60%) of the area median income for one-half of the affordable units, and a household earning up to fifty percent (50%) of the area median income for the other half; and

ii.

with respect to owner-occupied housing, at the time of purchase of the unit, a household earning up to one hundred (100%) of the area median income for one-half of the affordable units, and a household earning up to eighty percent (80%) of the area median income for the other half.

Eligible household” means a household whose combined annual income, adjusted for household size, does not exceed the maximum income specified in the eligibility criteria for the applicable affordable unit.

Financial assistance” means any assistance provided by the city through grants, direct or indirect loans, or allocation of fax credits for the development of residential housing units.

Higher income area” means any area that is not a low-moderate income area, provided that if any portion of a higher income area is located in a downtown district, that portion of the area will be treated as a downtown district for purposes of this section.

Housing unit” or “unit” means a room or suite of rooms designed, occupied or intended for occupancy as a separate living quarter with cooking, sleeping and sanitary facilities provided within the unit for the exclusive use of the occupants of the unit; provided that a “housing unit” does not include (1) dormitories that are owned and operated by or on behalf of an educational institution, (2) hotels as that term is defined in Section 13-4-010 of the Municipal Code, or (3) mobile homes.

HUD” means the United States Department of Housing and Urban Development or any successor department.

In lieu fee” means a fee in lieu of the establishment of on-site or, if applicable, off-site affordable units, adjusted annually, beginning on January 1 of the year following the second anniversary of the effective date of this section, based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Chicago metropolitan area, or some other comparable index selected by the commissioner in his or her reasonable discretion if this index no longer exists.

Initial sale” means the first sale of an affordable unit by a developer to an eligible household or an authorized agency pursuant to subsection (Q).

Low-moderate income area” means an area designated by the Commissioner as a low-moderate income area pursuant to published data regarding Chicago or area median income or the cost of housing or other data relating to gentrification or loss of affordable housing, such as Chicago or area median home sale prices or census tract information. The criteria for designating low-moderate income areas will be set forth in the rules and regulations. The department will publish a list of low-moderate income areas, and will update the list at least every five years. If any portion of a low- moderate income area is located in a downtown district, that portion of the area will be treated as a downtown district for purposes of this section.

Market-rate unit” means a housing unit in a residential housing project or, if applicable, off-site location that is not an affordable unit as defined in this section, and may sell or rent at any price.

Off-site” means on a site different from the site of the residential housing project.

On-site” means on the same site as the residential housing project.

Planned development” has the same meaning ascribed to that term in Section 17-17-02120.

Publication date” means the date this ordinance is published in the Journal of the Proceedings of the City Council of the City of Chicago.

Residential housing project” means one or more buildings that collectively contain ten or more new or additional housing units on one or more parcels or lots under common ownership or control, including contiguous parcels. A “residential housing project” may be developed in one or more phases and may consist of new construction, substantial rehabilitation, or the conversion of rental housing to condominiums. In determining whether a development constitutes a residential housing project, the department will consider all relevant factors, including whether the development is marketed as a single or unified project, shares common elements, or is a phase of a larger development. The definition of “residential housing projectshall be interpreted broadly to achieve the purposes of this section and to prevent evasion of its terms.

Rezoning of property” means a change in the zoning of property in any of the following circumstances: (1) to permit a higher floor area ratio than would otherwise be permitted in the base district, including through transit-served location floor area premiums where the underlying base district does not change; (2) to permit a higher floor area ratio or to increase the overall number of housing units than would otherwise be permitted in an existing planned development, as specified in the Bulk Regulations and Data Table, even if the underlying base district for the planned development does not change; (3) from a zoning district that does not allow household living uses to a zoning district that allows household living uses; (4) from a zoning district that does not allow household living uses on the ground floor of a building to a zoning district that permits household living uses on the ground floor; or (5) from a downtown district to a planned development, even if the underlying base district for the property does not change.

Substantial rehabilitation” means the reconstruction, enlargement, installation, repair, alteration, improvement or renovation of a building, structure or portion thereof requiring a permit issued by the city, provided the cost of the substantial rehabilitation must be $75,000 or more per housing unit.

TIF Act” means the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq., as amended from time to time.

TIF Funds” means incremental ad valorem taxes which, pursuant to the TIF Act, have been collected and are allocated to pay redevelopment project costs and obligations incurred in the payment thereof.

Zoning Ordinance” means Title 17 of the Municipal Code.

C.

Applicability; Minimum percentage of affordable units. The requirements of this section apply in the following circumstances:

1.

Rezonings. Whenever the city approves the rezoning of property, and such property is subsequently developed with a residential housing project, the developer shall be required to establish no less than ten percent (10%) of the housing units in the residential housing project as affordable housing or satisfy the requirements of this section through one of the alternative methods in subsection (F); provided that if a developer also receives financial assistance, the developer instead shall comply with the requirements of subsection (G)(3). Developers shall not submit piecemeal applications for zoning approval to avoid compliance with this section. The provisions of this subsection (C)(1) shall not apply to any existing residential housing project located on property that was rezoned and thereby converted to a nonconforming use, if the city council approves a change in zoning solely for the purpose of restoring the residential housing project to a conforming use.

2.

City land sales. Whenever the city sells real property to any developer and such property or any portion thereof is (a) subsequently developed with a residential housing project, or (b) incorporated into a residential housing project site in order to satisfy minimum off-street parking, minimum lot area, setback or other zoning or Municipal Code requirements or standards, the developer shall be required to establish no less than ten percent (10%) of the housing units in the residential housing project as affordable housing or satisfy the requirements of this section through one of the alternative methods in subsection (F); provided that if a developer also receives financial assistance, the developer instead shall comply with the requirements of subsection (C) (3).

3.

Financial assistance. Whenever the city provides financial assistance to any developer in connection with the development of a residential housing project, the developer shall be required to establish no less than twenty percent (20%) of the housing units in the residential housing project as affordable housing or satisfy the requirements of this section through one of the alternative methods in subsection (F).

D.

Application of 2015 ARO to existing buildings. In the case of existing buildings subject to the requirements of subsection (C), subsection (C) shall apply as follows:

1.

for an existing building that contains housing units at the time of the approval of a zoning change, only the additional housing units permitted by the rezoning are subject to the affordable housing requirement;

2.

for an existing building that contains a mixed-use occupancy with one use being residential at the time of the approval of the zoning change, only the additional housing units permitted by the rezoning are subject to the affordable housing requirement; or

3.

for an existing building with respect to which the developer has received financial assistance or has purchased city land, the entire building is subject to the affordable housing requirement.

E.

Relationship between 2015 ARO and affordable housing density bonus. For every residential housing project subject to the requirements of subsection (C), and also eligible for an affordable housing floor area bonus pursuant to Section 17-4-1004-B, the developer shall be required to comply with the requirements of both provisions. Notwithstanding the foregoing, any in lieu fees collected under Section 17-4-1004-C may be applied as a credit against any in lieu fees due under this section.

F.

Methods of compliance.

1.

Low-moderate income areas. In low- moderate income areas, a developer subject to the provisions of subsection (C) must provide at least 25% of the required affordable units on-site. The developer may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site affordable units; (b) payment of a fee in lieu of the establishment of on-site affordable units in the amount of $50,000 per unit; or (c) any combination thereof.

2.

Higher income areas. In higher income areas, a developer subject to the provisions of subsection (C) must provide at least 25% of the required affordable units on-site or off-site. The developer may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site or off-site affordable units; (b) payment of a fee in lieu of the establishment of affordable units; or (c) any combination thereof. The amount of the in lieu fee shall be $125,000; provided that, if the developer provides and then sells or leases at least 25% of the required affordable units in the residential housing project to an authorized agency pursuant to subsection (Q), the in-lieu fee shall be reduced to $100,000 per unit. If the developer elects to provide affordable units off-site, the off-site affordable units must be located within a two mile radius from the residential housing project and in the same or a different higher income area or downtown district.

3.

Downtown districts – Rental units. In the downtown districts and in planned developments with an underlying downtown district zoning classification, a developer of rental units subject to the provisions of subsection (C) must provide at least 25% of the required affordable rental units on-site or off-site. The developer may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site or off-site affordable rental units; (b) payment of a fee in lieu of the establishment of affordable rental units; or (c) any combination thereof. The amount of the in lieu fee shall be $140,000 per unit through and including the first anniversary of the publication date, and $175,000 per unit thereafter; provided that, if the developer sells or leases at least 25% of the required affordable rental units in the residential housing project to an authorized agency pursuant to subsection (Q), the in-lieu fee shall be reduced to $115,000 per unit through and including the first anniversary of the publication date, and $150,000 per unit thereafter. If the developer elects to provide affordable rental units off-site, the off-site affordable rental units must be located within a two-mile radius from the residential housing project and in a downtown district or higher income area.

4.

Downtown districtsOwner-occupied units. In the downtown districts and in planned developments with an underlying downtown district zoning classification, a developer of owner-occupied units subject to the provisions of subsection (C) may establish affordable housing by one or more of the following: (a) the establishment of affordable owner- occupied units as part of the residential housing project; (b) the establishment of off-site affordable owner- occupied units; (c) payment of a fee in lieu of the establishment of on-site or off-site affordable owner- occupied units; or (d) any combination thereof. The amount of the in lieu fee shall be $140,000 per unit through and including the first anniversary of the publication date, and $175,000 per unit thereafter; provided that, if the developer sells or leases at least 25% of the required affordable units in the residential housing project to an authorized agency pursuant to subsection (Q), the in-lieu fee shall be reduced to $115,000 per unit through and including the first anniversary of the publication date, and $150,000 per unit thereafter; and provided further that, if the developer elects not to provide a minimum of 25% of the required affordable owner-occupied units either on-site or off-site, the in-lieu fee shall be increased to $160,000 per unit through and including the first anniversary of the publication date, and $225,000 per unit thereafter. If the developer elects to provide affordable owner-occupied units off-site, the off-site affordable units may be located anywhere in the city, subject to the department’s approval.

G.

Affordable Housing Opportunity Fund. The in-lieu fees and other fees collected under this section, Section 2-45-110, and Sec. 17-4-1004 shall be deposited in the Affordable Housing Opportunity Fund, unless required to be deposited into another fund pursuant to federal or state law. All annual revenues of the Affordable Housing Opportunity Fund shall be reserved and utilized exclusively to pay the administrative and monitoring costs and expenses of this section, Section 2-45-110, and Section 17-4-1004 and, after subtracting such costs and expenses, as follows:

1.

fifty percent (50%) shall be used for the construction, rehabilitation or preservation of affordable housing; and

2.

fifty percent (50%) shall be contributed to the Chicago Low-Income Housing Trust Fund or a successor organization.

H.

Duration of affordability restrictions. The affordable units required by this section shall continue to be affordable housing for a minimum period of 30 years after the initial sale or rental of the affordable unit, as follows:

1.

In the case of owner-occupied housing, the owner of the affordable unit at the expiration of the 30-year affordability period shall have the option, when the owner elects to sell, of (a) paying an amount equal to fifty percent (50%) of the difference between the affordable unit’s market value and its affordable price, as determined at the time of such sale, in which event the department will release the affordable housing agreement recorded against the unit, or (b) in lieu of paying the amount specified in (a), selling the unit to an eligible household at an affordable price, subject to an affordable housing agreement in the city’s then-current form.

2.

In the case of rental housing, the affordability period is 30 years after the initial rental; provided that if the affordable unit is converted to a condominium unit within 30 years after its initial rental, such units shall be subject to the provisions of this section that apply to owner-occupied units and a new affordability period of 30 years shall begin on the date of the initial sale of such condominium unit.

3.

Notwithstanding subsection (H)(1), if the owner of the affordable unit occupies the affordable unit as his principal residence for a continuous period of 30 years, the city shall release the affordable housing agreement without further obligation on the owner’s part.

I.

Eligibility criteria. Except for the sale or lease of affordable units to an authorized agency pursuant to subsection (Q), all affordable units required under this section shall be leased or sold only to eligible households.

J.

Tax increment financing.

1.

With respect to the development of residential housing projects and planned developments assisted by the city with TIF Funds in redevelopment project areas established pursuant to the TIF Act, to the extent that the requirements of this section conflict with any TIF guidelines now or hereinafter in effect, the TIF guidelines shall prevail.

2.

To the extent that redevelopment plans approved pursuant to the TIF Act provide that developers who receive TIF Funds for market rate housing set aside twenty percent (20%) of the units to meet affordability criteria established by the department (or any successor or predecessor city department), the requirements of this section shall be deemed to be such affordability criteria and shall supersede all others.

K.

Compliance required prior to issuance of building permit. Prior to the issuance of a building permit for any residential housing project subject to the affordable housing requirements of this section, including, without limitation, excavation or foundation permits, the developer shall do one or both of the following, as applicable:

1.

pay an amount equal to the required fee in lieu of establishing on-site or, if applicable, off-site affordable units pursuant to subsection (F); or

2.

execute and record an affordable housing agreement against the residential housing project or off- site location to secure the requirements of this section relating to the establishment of on-site or, if applicable, off-site affordable units.

L.

Affordable housing agreement. The affordable housing agreement required pursuant to subsection (K) shall be recorded against the residential housing project and, if applicable, the off-site affordable units, and shall run with the land and be binding on successors and assigns; provided, however, in the case of projects with owner-occupied units, the city shall periodically release the agreement from the market-rate units to permit the sale of such units in accordance with this section. Each affordable housing agreement shall:

1.

specify the number, type, location, size and phasing of construction of all affordable units and such other information as the department requires to determine the developer’s compliance with this section;

2.

specify maximum qualifying incomes and maximum affordable rents or safes prices, and include resale and refinancing procedures and limitations;

3.

Include provisions for income certification of potential purchasers or renters of affordable units;

4.

limit the rental or sale of affordable units for the affordability period;

5.

for rental projects, require the developer to submit an annual report to the department including the name, address, and income of each household occupying an affordable rental unit and identifying the monthly rent of each affordable rental unit;

6.

authorize a release of the affordability restrictions following foreclosure or other transfer in lieu of foreclosure if required as a condition to financing pursuant to procedures set forth in the rules and regulations;

7.

describe remedies for breach of the agreement; and

8.

include any other provisions required by the city to document the obligations imposed by this section.

M.

Chicago Community Land Trust. The department may delegate to the Chicago Community Land Trust the administration of this section.

N.

Enforcement provisions.

1.

Failure by the developer to pay the required fee in lieu, or provide the on-site or off-site affordable units required by this section, or sell or rent such affordable units in accordance with the requirements of this section, shall be a violation of this section punishable by a fine in an amount equal to two times the payment of fees in lieu required in subsection (F) and, in the case of a residential real estate developer licensed pursuant to Chapter 4-40 of the Municipal Code or any successor chapter, the revocation of the developer’s residential real estate developer license.

2.

Upon the rental of any affordable unit at a rental price that is not affordable, or to a household that does not meet the eligibility criteria, the owner shall pay a fee of $500.00 per unit per day for each day that the owner is in noncompliance.

3.

In addition to any other available remedy, the city may seek an injunction or other equitable relief in court to stop any violation of this section and to recover any funds improperly obtained from any sale or rental of an affordable unit in violation of this section, plus costs and interest at the rate prescribed by law from the date a violation occurred.

4.

The city may seek such other remedies and use other enforcement bowers, as allowed by law. The remedies and enforcement powers established in this section are cumulative, and the city may exercise them in any order.

5.

Any fines or penalties imposed by the city for a violation of this section, and any fees collected under this section, shall be deposited into the Affordable Housing Opportunity Fund, unless required to be deposited into another fund pursuant to federal or state law, and shall be used and disbursed in accordance with subsection (G).

O.

Rules and regulations. The commissioner is authorized to adopt such rules and regulations as the commissioner may deem necessary for the proper implementation, administration and enforcement of this section.

P.

Hardship waiver. The commissioner shall have discretion, in certain limited circumstances as specified in the rules and regulations, to waive, adjust or reduce the requirements of this section, including, without limitation, the income eligibility, resale price and other affordability covenants and restrictions, for developers or owners of affordable units who have used good faith efforts to comply with such requirements. The commissioner shall exercise his discretion in the best interests of the city and with the goal of balancing long-term affordability and private investment. The rules and regulations shall set forth criteria for granting waivers, adjustments and reductions, such as establishing a minimum time period that developers and owners must market affordable units, establishing criteria related to unusual economic or personal circumstances, and providing a maximum percentage for the increase above the maximum income limit or resale price currently allowed.

Q.

Sale or rental to authorized agency. Affordable units required to be provided pursuant to this section may be sold or leased to an authorized agency, subject to the following provisions:

1.

The initial sale or lease of affordable units to the authorized agency is not subject to the price restrictions set forth in this section. Instead, the developer may sell or rent affordable units to the authorized agency at any price, similar to market-rate units.

2.

The authorized agency must sign a 30-year lease or, if the unit is purchased, record a 30-year deed restriction or similar instrument guaranteeing that all affordable units will be leased to households that meet the income eligibility requirements for rental housing under this section for a minimum of 30 years, and may not sell, transfer, or otherwise dispose of the affordable units.

3.

The authorized agency must submit a report on an annual basis to the commissioner that provides the following information and any additional information requested by the commissioner: number of affordable units currently in the authorized agency’s inventory and the monthly rental rate for each affordable unit, information concerning each tenant household’s composition and gross income, affordable unit operating expenses and revenues received by the authorized agency.

R.

Applying percentages; Fractional units. Calculations of the number of affordable units required by this section shall be based on the total number of housing units in the residential housing project, including any density bonus units. Where the application of the percentage requirements of this section results in a fractional housing unit, the developer shall round up to the nearest whole number for any portion of 0.5 or above and round down to the nearest whole number for any portion less than 0.5.

S.

Projects with both owner-occupied and rental units. When a residential housing project includes both owner-occupied and rental units, the provisions of this section that apply to owner-occupied projects shall apply to that portion of the project that consists of owner-occupied units, while the provisions of this section that apply to rental projects shall apply to that portion of the project that consists of rental units; provided, however, with the commissioner’s approval, a developer may provide rental units where the developer would otherwise be required to provide owner-occupied units, in which event such units shall be subject to the provisions of this section that apply to rental projects.

T.

Supplemental incentives for on-site affordable units in transit-served locations. Residential housing projects in transit-served locations, as defined in Section 17-10-0102-B, that qualify for and are granted the floor area bonuses set forth in Section 17-3-0403-B (for projects, in B dash 3 and C dash 3 districts) or Section 17-4-0405-C (for projects in D dash 3 districts), and that provide at least 50% of the required affordable units on-site, are eligible for supplemental incentives under Section 17-3-0403-C (additional FAR increase in B dash 3 and C dash 3 districts), Section 17-3-0408-B.2 (additional building height increase in B dash 3 and G dash 3 districts), Section 17-4-0405-D (additional FAR increase in D dash 3 districts) and Section 17-10-0102-B.2 (additional parking reduction in B dash 3, C dash 3 and D dash 3 districts).

U.

Standards for affordable units. Affordable units required to be provided pursuant to this section shall comply with the following standards, as may be detailed further in the rules and regulations:

1.

Affordable units shall be reasonably dispersed throughout the residential housing project, such that no single building or floor therein has a disproportionate percentage of affordable units.

2.

Except as permitted in subsection (S), residential housing projects which contain owner- occupied units must comply with the provisions of this section that apply to owner-occupied projects, and residential housing projects which contain rental units must comply with the provisions of this section that apply to rental projects;

3.

Affordable units shall be comparable to the market rate units in the residential housing project (or off-site location in the case of off-site affordable units) in terms of unit type, number of bedrooms per unit, quality of exterior appearance, energy efficiency, and overall quality of construction; provided, however, with the commissioner’s approval, in a residential housing project (or off-site location in the case of off-site affordable units) which contains single-family detached homes, affordable units may be attached homes rather than detached homes and lots for affordable units may be smaller than lots for market-rate units (consistent with applicable zoning), and in a residential housing project (or off-site location in the case of off-site affordable units) which contains attached multi-story housing units, affordable units may contain only one story.

4.

Affordable units may have different interior finishes and features than market-rate units in the residential housing project (or off-site location in the case of off-site affordable units), as long as they are durable, of good and new quality, and are consistent with then-current standards for new housing.

5.

Affordable units shall have access to all on-site amenities available to market rate units, including the same access to and enjoyment of common areas and facilities in the residential housing project (or off-site location in the case of off-site affordable units).

6.

Affordable units shall have functionally equivalent parking when parking is provided to the market rate units in the residential housing project (or off-site location in the case of off-site affordable units).

7.

Affordable units shall be constructed, completed, ready for occupancy, and marketed concurrently with or prior to the market rate units in the residential housing project or phase thereof. As used in this section, “concurrently” means that a proportionate share of affordable, units shall be completed for each group of market rate units completed at 25%, 50%, 75% and final completion of the residential housing project. The commissioner may approve an alternative timing plan if the commissioner determines, in his or her sole discretion, that that* there is no economically feasible way to comply with the phasing requirements, in which event the developer shall post a bond or similar security in an amount equal to one and one-half times the required in lieu fee to secure the completion of such units.

* Editor’s note – As set forth in Coun. J. 3-18-15, p. 105476, § 2. Future legislation will correct the provision if needed.

8.

The marketing requirements and procedures for affordable units shall be contained in the rules and regulations.

9.

The rules and regulations may specify minimum household sizes for affordable units of different bedroom sizes, and may require that prospective purchasers complete homebuyer education training or fulfill other requirements.

V.

Additional standards for off-site affordable units. With the commissioner’s approval, a developer of a residential housing project in a downtown district or higher income area may satisfy all or part of its affordable housing obligation through the establishment of off-site affordable units, subject to the following standards, as may be detailed further in the rules and regulations:

1.

The developer may either build new affordable units, or purchase and convert existing market-rate units to affordable units. In either case, the construction or acquisition and rehabilitation budget for the off-site affordable units must equal or exceed the in lieu fee that would otherwise be due pursuant to subsection (F).

2.

Off-site affordable units must meet all of the requirements set forth in this section for on-site affordable units, except that: (a) off-site locations are not subject to (U)(1); and (b) all off-site affordable units for a residential housing project must receive certificates of occupancy prior to issuance of the first certificate of occupancy for the market-rate units in the residential housing project.

3.

The off-site location shall be appropriately zoned to allow for the proposed project. No increase in density or financial assistance from the city shall be required in order to accommodate the off-site affordable units.

4.

Developers must pay a fee of $5,000 per unit to pay the expenses of the department in connection with monitoring and administering compliance with the requirements of this subsection. Any fees collected under this subsection shall be deposited into the Affordable Housing Opportunity Fund and used and disbursed in accordance with subsection (G).

(Added Coun. J. 3-18-15, p. 105476, § 2)

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