San Marcos City Council To Consider Amendments To Affordable/Workforce Housing Policy
By Terra Rivers | Managing Editor
Tonight, the San Marcos City Council will consider the approval of amendments to the Affordable/Workforce Housing Policy.
Council will discuss amending two criteria for approval of applications relating to the Low-Income Housing Tax Credit Program administered by the Texas Department of Housing and Community Affairs.
Staff is recommending the following amendments be made to the policy’s criteria for a recommendation of a resolution of no objection:
- Amend criteria to ensure if a project is requesting a tax exemption, revenues from such a project remain in San Marcos.
- Amend criteria to ensure projects (whether tax-exempt or not tax-exempt) utilize local support services.
- Add a flowchart to the LIHTC application to more easily distinguish the process and criteria for projects requesting a tax exemption and projects not requesting a tax exemption.
- Add minor revisions to the policy language so that it is easier to read.
The Affordable/Workforce Housing Policy has been amended five times since its adoption in July 2014.
In March 2017, the city adopted the first amendment, which added a low-income housing tax credit policy.
The last amendment to the policy was in November 2019 to add further language to the nine criteria and allow for tax exemptions.
City Council will convene for their regular meeting at 6:00 PM in the San Marcos City Council Chambers at City Hall.
Residents can sign up to speak during the public comment period until 5:45 PM in the City Clerk’s Office.
A & WF Housing Policy
1
Adopted July 2014; Amended March 2017, June 2018, May 2019, Nov
ember 2019,
& February 2020
Affordable / Workforce Housing Policy
Purpose:
Define issues associated with the expansion and preservation of
diverse, affordable housing choices,
in San Marcos and identify specific goals and strategies to add
ress those issues in a manner consistent with the
vision expressed in the City’s Comprehensive Plan.
Vision San Marcos
Neighborhood & Housing Vision Statement
We envision San Marcos to have a strong, more comprehensive fou
ndation of safe, stable
neighborhoods while preserving and
protecting the historical, c
ultural, and natural identities
of those neighborhoods.
Importance
:
Affordable housing is important to the economic vitality of S
an Marcos as an adequate supply
supports the local work force and
allows them to
live close to
their jobs. Shorter commutes reduce traffic
congestion, air pollution, and ex
penditures on road maintenance
. Having an adequate housing supply also
provides a competitive advantage for area employers. Affordabl
e housing benefits families by alleviating
overcrowding, reduces the potential of foreclosure and eviction
s, and may provide the housing stability that is
vital to the emotional well‐being of children.
Definitions:
Area Median Income (AMI) – The area median income is the midpoi
nt of a region’s income distribution.
San Marcos is located within the Austin Round Rock MSA. Federa
l housing programs utilize the area
median income as the basis for funding.
o
Example: the 2018 median family income for a family of 4 in the
Austin Round Rock MSA is
$86,000
San Marcos Median Family Income (MFI) – The median family annua
l income for residents of the City of
San Marcos as established by the most current data available fr
om the U. S. Census Bureau. This term
is defined by the Census Bureau as
“The sum of income of all family members 15 years and older liv
ing
in the household. Families are groups of two or more people (o
ne of whom is the householder) related
by birth, marriage, or adoption and residing together; all such
people (including related subfamily
members) are considered as members of one family.
o
This number is expected to change from year to year as census r
ecords are updated.
o
Example: the 2012‐2016 American Co
mmunity Survey data shows th
at the Median San Marcos
Family Income is $$46,736;
Affordable Housing –Generally construed to mean that a low or m
oderate‐income family can afford to
buy or rent a decent quality dwelling without spending more tha
n 30% of its income on shelter.
Generally, affordable housing incentives will be targeted to pe
rsons earning 80% or less of the Area
Median Income.
Workforce Housing ‐ Housing for
moderate‐income workers in prof
essions needed in all communities
such as teachers, fire fighters,
and nurses. Generally, workfo
rce housing incentives are targeted to
employees earning no more than
140% of Area Median Income
Location Efficient Areas – Areas
(a) where transportation costs are low or where public investme
nt will
make transportation more affordab
le in the future, (b) that are
located in close pr
oximity to schools,
health related facilities, amenit
ies such as parks and childcar
e, vital retail establishments (pharmacy,
groceries, etc.) and (c) are pedestrian/bicycle friendly.
A & WF Housing Policy
2
Adopted July 2014; Amended March 2017, June 2018, May 2019, Nov
ember 2019,
& February 2020
O
WNER
‐O
CCUPIED
H
OUSING
ISSUES, GOALS, AND STRATEGIES FOR IMPLEMENTATION
1.
L
OW RATES OF HOME OWNERSHIP
a.
Increase home ownership rate
i.
Offer targeted homebuyer down payment/closing cost loan program
s to encourage those
who work in San Marcos to become San Marcos home owners. Revie
w program viability
and need for continuing funding during annual budget process. H
omes must be located
inside the corporate limits. Possible targets might include:
1.
First Time Homebuyers – if funded through the CDBG program, hom
ebuyers will be
qualified using HUD income limits.
2.
Texas State Professors (continuation of existing program)
3.
Workforce incentive for school teachers, CTMC employees, Texas
State University
employees, veterans, and law enfo
rcement professionals who do n
ot earn more than
140% of San Marcos MFI. Generally, this will be targeted to em
ployees working in San
Marcos.
4.
City of San Marcos full‐time employees who have successfully co
mpleted their
probationary period. The City Manager may be authorized to rev
iew and approve
applications by part‐time employ
ees on a case‐by‐case basis.
ii.
Utilizing San Marcos economic dev
elopment professionals (city s
taff & consultants)
periodically evaluate new/expanding businesses to have a cleare
r understanding of the type
of housing required and its availability and potential need for
targeted homebuyer
incentives.
iii.
Maintain a “Housing” sec
tion on City’s Webpage
2.
T
HERE IS A NEED FOR MORE DIVERSITY IN THE TYPES
/
SIZES OF HOUSING UNITS BEING PRODUCED
a.
Encourage the creation of a diverse housing stock
i.
Review development codes to reduce/remove regulatory barriers t
o allow alternative housing
types that foster affo
rdability such as:
1.
Micro homes / efficiency dwelling units
2.
Mixed use buildings
3.
Zero‐lot line homes
4.
Courtyard homes
5.
Industrial (pre‐fab) housing that
meets construction codes – wi
th design standards
that will ensure the home is compatible with the surrounding ar
ea.
6.
Housing designed for persons with special needs
A & WF Housing Policy
3
Adopted July 2014; Amended March 2017, June 2018, May 2019, Nov
ember 2019,
& February 2020
The Development Code shall establish criteria that ensures alte
rnative housing is
appropriately located.
ii.
Provide “pre‐approved” building plans for micro/efficiency home
s to builders who are
constructing affordable housing to
expedite review times and re
duce up‐front costs.
b.
Reduce builder’s costs for owner
‐occupied affordable / workforc
e housing development
i.
Review/modify development regula
tions that increase costs witho
ut clear rationale or
benefit such as lot sizes, setba
cks, parking requirements, stre
et width standards
ii.
Provide “pre‐approved” building
plans suitable for affordable /
workforce housing
iii.
Provide development code/construction permitting fee waivers an
d/or rebates for
community‐based non‐profit organizations that build affordable
housing for developers
building affordable or workforce housing.
iv.
Explore using development incentives to encourage developers to
voluntarily include
housing designed to be owner‐occupied and affordable for low to
moderate income
households. Incentives might include:
1.
Considering an increase in heigh
t beyond five stores in the Dow
ntown Smart Code
District in proportion to the number of affordable units create
d.
2.
Developing an “affordable housing fund” program that accepts fe
e‐in‐lieu payments
rather than the construction of affordable housing. As adequat
e funds accumulate,
the City could acquire land to be used for affordable housing c
onstruction.
3.
Allowing developers to construct the affordable units in off‐si
te locations (sites to
be approved by the City at the time the development incentive i
s approved).
c.
Encourage in‐fill housing developm
ent in older, established nei
ghborhoods
i.
Update the City’s existing Infill Housing Incentive Program to
provide incentives for
affordable and/or workforc
e housing development.
ii.
Coordinate as practical the affordable/workforce housing progra
m with the Place Based
Economic Development Policy.
iii.
Market the programs
to developers, realtors, and lenders.
3.
T
HE
C
ITY
’
S
A
GING
H
OUSING
S
TOCK AND
O
LDER
N
EIGHBORHOODS
N
EED TO BE
M
AINTAINED IN
G
OOD
C
ONDITION
.
a.
Reduce costs of renovating older homes while ensuring that mode
rn safety concerns are addressed.
i.
Review development code regulations applicable to non‐conformin
g residential structures
regarding repairs and modifications, reconstruction after destr
uction, and non‐conforming
moved structures to ensure that the standards provide maximum f
lexibility while not
compromising safety.
b.
Assist low income homeowners wit
h the costs of maintaining thei
r homes.
i.
Consider providing funding for housing rehabilitation programs that prov
ide free housing
rehab to low income families.
ii.
Seek additional funding sources and identify potential non‐prof
it partners to carry out
housing rehab/reconstruction programs.
A & WF Housing Policy
4
Adopted July 2014; Amended March 2017, June 2018, May 2019, Nov
ember 2019,
& February 2020
c.
Assist low income families to cre
ate developable lots on proper
ty with clouded titles.
i.
Develop and/or sponsor programs that assist families in clearin
g title to real property –
which will facilitate the rehab
ilitation of dilapidated structu
res and the redevelopment of
vacant lots.
4.
H
OUSING COSTS
(
OTHER THAN MORTGAGE PAYMENTS
)
CAN CREATE A BURDEN FOR LOW AND MODERATE INCOME
PERSONS
a.
Reduce transportation costs thro
ugh development of housing in L
ocation Efficient Areas (LEA).
i.
Define parameters for establishi
ng Location Efficient Areas & r
eview development codes to
ensure they encourage affordable / workforce development therei
n.
ii.
Identify areas appropriate for designation as a Local Efficient
Area.
iii.
Target incentives for developmen
t of affordable / workforce hou
sing in LEAs.
b.
Improve energy efficiency to reduce housing costs.
i.
Continue energy audit and indoor water survey programs, maintai
n funding for energy
efficiency rebate programs, and
continue public education about
programs
ii.
Utilize energy audits to identify low‐income households with a
history of very high utility
bills whose energy use could be lowered through energy efficien
cy upgrades. Refer
residents to available programs that assist with weatherization
or other energy efficiency
upgrades.
iii.
Seek grants supporting this goal and evaluate feasibility of im
plementing them. The
feasibility review shall include staffing requirements and asso
ciated costs compared to
benefits from the grant.
iv.
Periodically evaluate and analyze the impact energy efficiency
development /
improvements has on utilit
y usage and costs.
5.
L
AND ACQUISITION COSTS ARE PASSED ON TO HOMEBUYERS
a.
Increase supply of sites available for owner‐occupied housing.
i.
Enter into cooperative agreements with other taxing entities to
create a program that will
identify tax‐forfeiture properties appropriate for residential
development or
redevelopment and made them availa
ble for affordable housing de
velopment.
ii.
Evaluate existing city‐owned pro
perty for suitability for resid
ential development and donate
appropriate sites to non‐profit
organizations to build affordab
le housing.
iii.
Consider allocating funding to purchase land to be donated to c
ommunity‐based non‐profit
organizations (such as Habitat f
or Humanity) for affordable hou
sing development.
iv.
Utilize the City’s Unsafe Structures Program to create clean, d
evelopable lots dedicated to
affordable housing development.
