In a 5-2 vote, the Gainesville City Commission finalized its inclusionary zoning policy on Thursday, reverting to a previous version the commission had altered in July.
The City Commission also voted on a land use change to Oaks Mall Plaza while deciding to delay its lot reform item that was scheduled for Thursday’s meeting. The residential lot reform item, previously passed on first reading in July, is now scheduled for Oct. 3.
In July, city staff presented an inclusionary zoning policy that would have required 10% of units be affordable for developments with 50 or more units within the Urban 5, Urban 6, Urban 7, Urban 8, Urban 9 and Downtown transect zones.
Inclusionary zoning requires new developments to set aside a percentage of units at a lower price point than the other market-rate units. These units are then available for individuals or households who earn below the median income. In Gainesville’s case, the commission wanted the units to be available for those making 80% of the area median income (AMI).
Florida law requires cities and counties that implement inclusionary zoning policies to fully offset the cost to the developer. Usually, this offset takes the form of in-kind services—reduced permitting fees and increased density for the development.
City staff in July presented the risks with the new policy—still being tested across Florida. The goal of the proposal was to balance requiring as much affordable housing as possible while minimizing the chances of legal challenges from developers.
However, the City Commission voted to alter the policy to apply to all developments with more than 10 units in any area of the city—with Commissioner Ed Book in dissent.
At Thursday’s meeting, Commissioner Cynthia Chestnut quickly brought up her stance: to return to staff’s recommendation from July. Her motion earned a second from Book.
Forrest Eddleton, director of the department of sustainable development, said the best practices for government planning offices are still being developed concerning inclusionary zoning.
In the proposal brought forward Thursday, city staff included a “safety valve” clause to assist. The clause allows the city manager to exempt a development from the inclusionary zoning policy if city staff and the developer agree that the offsets offered by Gainesville fail to equal the developer’s cost.
The clause provides an exit for the city instead of getting into a bind with no prescribed solution.
But Commissioner Bryan Eastman said the clause will become a target for developers. He said building projects can amend their numbers so that the cost of development exceeds the city’s density bonuses and other offsets. Then the development can move forward without worrying about inclusionary zoning requirements.
The commissioners spoke for and against the changes.
Mayor Harvey Ward suggested requiring inclusionary zoning for developments above 25 units, trying to bridge the 10-unit and 50-unit camps. Other numbers were thrown out as a cap on the length of time the development would need to provide the affordable units.
Chestnut and Book decided to add a 30-year timeline onto the policy, requiring the developments to keep the 10% of units affordable for that long. In returning to the July version of the policy, Chestnut also removed the “safety valve” clause.
The July version and Thursday’s version also had a fee-in-lieu option if developers, to the city’s satisfaction, demonstrate that the inclusionary zoning is “not needed or not reasonably practicable.”
Chestnut’s motion passed 5-2, with commissioners Casey Willits and Reina Saco in dissent.
Though not exactly what he wants, Ward said he voted for the policy because affordable units need to be built instead of waiting for more years as the city keeps hashing out a plan.
Eastman said he looks forward to reviewing the policy in a year, with staff used to the process, and expanding the policy across all zoning categories.
Willits disagreed with moving back up to the 50-unit threshold. He said relishing in a half measure isn’t good enough for him.
“I don’t think we did as well as we could, as well as we should,” Willits said. “I think that we will regret it. I think families that don’t get to live in all corners of the city will live to regret it. They may not live in Gainesville; they may have to go somewhere else.”
The City Commission approved a rezoning of Oaks Mall Plaza from general business to Urban 8, allowing residential units. The plaza has Ocean Buffet, Seafood Dock and The Walkabout Shop along with other stores.
The plaza was recently bought, and the new owners are looking at options like including residential units, according to eda consultant’s Clay Sweger, who is working for the owners.
The rezoning passed unanimously.
This illustrates some of the confusion/complexity around the “affordable housing” issue. Ask yourself what additional costs would a developer incur by building affordable units as part of the development? None. Presumably, these units would be as basic as possible – smaller, lower quality finishes and appliances, etc. So where are the extra costs that require city compensation? It’s that the units must be rented for a below-market rate and the developers would have less profit. Not lose money, just less profit. So what we are really talking about is subsidized, not affordable, housing.
Nothing wrong with subsidizing housing, but let’s be clear about what’s being done and call it what it is.
The entire discussion and resulting vote was confusing. In the end a summary was posted on the screen for all to view and when the word “threshold” of 50 units was to be added the entire reference to 50 units was removed. I asked for the clerk to add back in. Hopefully, it was! I strongly suggest the use of overheads for all to read so errors of this nature are seen and addressed.
In a nutshell: a threshhold of 50 units, 10% of units, 30 years, structured parking and design in specific locations. Review in one year.
I might also add that the concessions should be equivalent to the loss from providing affordable reduced rent for XX number of units. IS the concession of one additional floor with say 10 units at $4K a unit per month ($40K a month) equivalent to what is conceded??? I think not!
I am SOOOOO glad I no longer live in Gainesville, the Portland of the South.
Every time these people meet, I know it is not going to be4 good.