Five Cities Taking Steps to Improve Access and Availability (Atlanta: real estate, rental)

[cqholt]

Atlanta’s City Council recently took action by passing a resolution aimed at increasing
the supply of workforce housing. Any multifamily real estate development project
that receives public assistance from an economic development authority doing business
in the City must now reserve units for households in one of two targeted groups. At
least 15% of the units must be set aside for those earning no more than 80% of the area
median income or 10% set aside for those earning no more than 60% of the area median
income. The restriction must apply throughout the period of the subsidy. Similar to
many other affordable housing programs, rental rates must not exceed 30% of the area
median income as defined by HUD guidelines, including all utilities and fees.
As for the remainder of Atlanta’s efforts to promote mixed-income housing, most
are voluntary in nature due in part to legal questions surrounding the scope of local
government authority to enact various types of mandatory inclusionary housing policies
in the State of Georgia. Density bonuses are offered via overlay zoning in several parts
of the City to residential developers who agree to reserve at least 20% of the units in
their projects for those earning 60% or less of the area median income. The size of
the density bonuses available in return varies across planning districts and may promote
mixed-income housing development both inside and outside of public transportation
areas. Deed restrictions or development agreements 15 to 20 years in duration are often
their projects for those earning 60% or less of the area median income. required to ensure the additional units constructed onsite remain accessible to low-income
households.
Urban Enterprise Zones represent yet another program designed to stimulate infill
development including an affordable rental housing component. Residential developers
interesting in building in economically depressed areas can request property tax abatements
from the City of Atlanta, Atlanta Public Schools, and Fulton County lasting up to 10 years.
In most cases, the developer must demonstrate that the project is not financially viable in
the absence of public assistance and that the area in which the proposed development is
located suffers from some combination of pervasive poverty, blight, high unemployment,
underdevelopment, or general distress. No such demonstration of need is required in designated
Economic Development Priority Areas and the tax abatements are granted as a matter
of course to conforming projects. Eligible rental housing projects must set aside at least 20%
of the units for households earning no more than 60% of the area median income. Property
taxes may be abated for up to 100% of a project’s value in the first five years of the investor’s
holding period, gradually plaining down thereafter to 20% in year 10.
Irrespective of where a proposed multifamily development project is located, the
affordable rental units included therein may be eligible for impact fee waivers if certain
conditions are met. Rental units priced at no more than 60% of the fair market rate
established by HUD are completely exempt from impact fees in Atlanta, whereas units
priced from 60% to 80% of the fair market rate must only pay 50% of the impact fees
ordinarily due. Developers must request the exemption during the entitlement process
and agree to restrict rents for at least 20 years. Absolving the private sector of the direct
cost of providing transportation improvements, recreational facilities, and emergency
services to newly-constructed affordable housing in this way is anticipated to enhance
the financial performance of proposed development projects and improve the odds of
them coming to fruition.
A final noteworthy feature of Atlanta’s municipal code is an ordinance requiring
the preparation of affordable housing impact statements before members of the City
Council consider certain types of legislative action. These statements are intended to
promote transparency and thoughtful deliberation throughout the policymaking process
by ensuring elected officials and the public at large have a meaningful sense of how
many affordable housing units will be gained or lost as a result of changes to comprehensive
planning documents and building permit fees, among other things. All affordable
housing impact statements must cover at least a 30 year period and provide a narrative
account of the data and methodology used to derive important quantitative estimates.

https://www.nahma.org/wp-content/upl...ing_Report.pdf

[Atlwarrior]

Can someone simplify all this flowery language? You can always tell when election season is near.