§ 25-9-347. EXEMPTION FOR CERTAIN AFFORDABLE HOUSING.

(A)

The community development officer may exempt not more than 1,500 service units of affordable housing constructed each fiscal year from the requirement to pay impact fees under this article. Service units of affordable housing within the development known as the Robert Mueller Municipal Airport development that are granted exemptions from paying impact fees do not count against the annual cap of 1,500.

(B)

The community development officer shall establish guidelines for the selection of the service units to receive an exemption under this section. The guidelines must include a requirement for a written application.

(C)

To be eligible for an exemption under this section, affordable housing must:

(1)

meet design and construction guidelines established by the community development officer for habitability, affordability, accessibility, water conservation, and energy efficiency;

(2)

be served by existing City infrastructure and services; and

(3)

be a newly constructed single family home or multifamily housing unit located within the corporate limits of the City that is:

(a)

approved for assistance under an affordable housing program funded with Community Development Block Grant or federal HOME program assistance funds administered by the City;

(b)

approved for assistance under a program for affordable housing construction funding or down payment assistance administered by the Austin Housing Finance Corporation; or

(c)

approved under guidelines for non-assisted affordable housing units established by the community development officer that meet the requirements of this section.

(D)

To receive an exemption under this section, an applicant who is approved for an exemption must provide to the community development officer an agreement, a restrictive covenant, a deed of trust, a promissory note, or other documents determined to be necessary by the city attorney to establish an enforceable obligation by the applicant to:

(1)

pay to the City an amount equal to the impact fee otherwise applicable to the housing unit if the applicant does not comply with this section and applicable guidelines;

(2)

reserve by covenant the applicable affordable dwelling units for the duration of the affordability period prescribed by Subsection (E); and

(3)

pay liquidated damages that will fairly compensate the City for any breach.

(E)

To retain an exemption under this section, a unit of affordable housing must comply with the requirements of this subsection.

(1)

Except as provided in Paragraphs (2) and (3), a unit must be available for occupancy by a person whose gross household income does not exceed 80 percent of the median household income for the Austin Standard Metropolitan Statistical Area for the following affordability period:

(a)

in the university neighborhood overlay district, a period of no less than 15 years; or

(b)

outside the university neighborhood overlay district:

(i)

for rental housing, a period of no less than five years; or

(ii)

for owner-occupied housing a period of no less than one year, unless the owner is receiving federal housing assistance, in which case, a period of no less than five years.

(2)

A unit within a Vertical Mixed Use building must comply with the affordability requirements for the affordability period under Chapter 25-2, Subchapter E, Section 4.3.3.F (Affordability Requirements).

(3)

In Downtown Mixed Use (DMU) or Central Business District (CBD) base zoning district:

(a)

an owner-occupied unit must be available for occupancy for a period of not less than 99 years by an occupant whose gross household income does not exceed 120 percent of the median family income for the Austin Standard Metropolitan Statistical Area; or

(b)

a rental unit must be available for occupancy for a period of not less than 40 years by an occupant whose gross household income does not exceed 80 percent of the median family income for the Austin Standard Metropolitan Statistical Area.

(4)

An affordability period prescribed by this subsection begins on the date that an affordable unit is available for occupancy.

(F)

If an applicant who receives an exemption under this section does not comply with Subsection (E), defaults on its obligations under documents executed under Subsection (D), or does not perform in accordance with the conditions for receipt of the exemption, the City may initiate legal proceedings to recover the impact fees that would have applied to the housing unit and damages. Funds recovered for impact fees shall be deposited in the impact fee account of the Water Utility. Damages collected to compensate the City for loss of affordable housing units shall be deposited into the S.M.A.R.T. Housing CIP Fund account of the Neighborhood Housing and Community Development Department.

(G)

Before the director of the Water Utility may issue a tap permit authorizing connection to the City water or wastewater system for a property receiving an exemption under this section, the community development officer must provide a written certification to the director of the Water Utility identifying the service address of the affordable housing unit.

(H)

The community development officer may revoke a certification under Subsection (G) if the applicant does not finish construction of the approved affordable housing unit:

(1)

within 15 months after certification; or

(2)

for a multifamily housing unit, 24 months after certification.

(I)

This section does not require a refund by the Water Utility of impact fees previously paid.

(J)

An exemption under this section may not be assigned or transferred by the applicant to another property.

Source: Section 13-3A-10(o); Ord. 990225-70; Ord. 000420-77; Ord. 031211-11; Ord. 20051103-032; Ord. 20071129-100.