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Inclusionory Zoning Policy

DRAFT RECOMMENDATIONS
STARTING JULY 1, 2022
Inclusionary Zoning (IZ) Policy Matrix
PAYMENT IN
TOTAL TIER } LIEUFOR PAYMENT IN BONUS
IZ PERCENT | TARGET AMI] TIER 2 PARTIAL LIEUFOR PAYMENTIN| DENSITY
UNITS LOCATION | REQUIRED? | REQUIRED [1] TARGET AMI UNITS? ALL UNITS? LIEU VALUE] RATIO [2]
OWNERSHIP HOUSING
Less than 10 Citywide N
10 - 49 Citywide ¥ 10% 80% N/A Y N $100,000 FA
50-99 Citywide Y 15% 80% (10%) 100% (5%) Y N $100,000 2:1
100+ Citywide ¥ 20% 80% (10%) 100% (10%) Y N $100,000 2:1
RENTAL HOUSING
Less than 10 Citywide [3] N
10 - 49 Citywide Y 10% 80% N/A Y N $37,000 1)
50 - 99 Citywide Y 15% 80% NIA Y N $37,000 1)
100+ Citywide Y 20% 80% N/A Y N $37,000 1:1
Less than 10 Downtown N
10 - 49 Downtown Y 5% 80% N/A Y¥ Y $37,000 2.5:1
50 - 99 Downtown Y 7.5% 80% N/A Y y $37,000 2.5:1
100+ Downtown Y 10% 80% N/A Y Y $37,000 2.5:1
NOTES:

{1} Target income tiers are applied based on share of total [Z requirement

[2} Bonus density ratio reflects number of additional market rate unis allowed for every IZ unit provided

(3} Citywide 1Z policy for rental housing does not apply in designated Downtown District

**January — June 2022 removes the 10 - 49 unit requirement
—a delayed start for small scale projects

THANK YOU

SPECIAL BOARD OF ALDERMEN
DECEMBER 21, 2021

7:00 PM Aldermanic Chamber and via Zoom

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Meeting ID: 8606462 4182 Passcode: 334087

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connect.

PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER

PRAYER OFFERED BY CITY CLERK SUSAN K. LOVERING

PLEDGE TO THE FLAG LEDBY ALDERMAN LINDA HARRIOTT-GATHRIGHT

ROLL CALL
PUBLIC HEARING

O-21-073
AMENDING THE INCLUSIONARY ZONING SUPPLEMENTAL USE REGULATIONS

Testimony in Favor

Testimony in Opposition

Testimony in Favor

Testimony in Opposition

NEW BUSINESS — ORDINANCES

0-21-083
Endorsers: Alderman Thomas Lopez
Alderman Patricia Klee

RELATIVE TO REQUIRING FACE COVERINGS THROUGH JANUARY 31, 2022

ADJOURNMENT

Q-21-073

ORDINANCE

AMENDING THE INCLUSIONARY ZONING SUPPLEMENTAL USE
REGULATIONS

CITY OF NASHUA

In the Year Two Thousand and Twenty-One

The City of Nashua ordains that Part II “General Legislation”, Chapter 190 “Land Use”, Part 2
“Zoning Districts and Supplemental Use Regulations”, Article VI “Supplemental Use
Regulations”, Section 190-48 “Inclusionary Zoning” of the Nashua Revised Ordinances, as
amended, be and hereby is further amended by deleting the existing section and replacing it in its
entirety as follows:

Ҥ 190-48. Inclusionary Zoning.

A. Definitions. As used in this section, the following terms shall have the meanings
indicated:

AFFORDABLE

(1) For rental housing, that the total housing costs for the dwelling unit,
inclusive of utilities and other directly related expenses, do not exceed 30% of the
income of the household; or

(2) For owner-occupied housing, that the total cost of mortgage principal and
interest, property taxes, association fees and homeowners’ insurance does not
exceed 33% of the maximum allowed income of the purchaser. Calculation of
housing costs shall be based on a methodology developed by the CDD that outlines
reasonable assumptions for taxes, utilities, down payment levels, and mortgage
terms. In the absence of a current methodology, the calculation shall be based on a
30-year fixed rate mortgage with the average current interest rate for a no-points
mortgage, a five percent down payment, and most current taxes, insurance, and
other incidental costs, and shall include an assumed private mortgage insurance if
relevant.

ORDINANCE O-21-073
AFFORDABLE HOUSING
Any housing unit for which occupancy is limited to households at or below income

levels for which the unit is intended to be affordable and for which maximum rents
or sales prices are set so the unit will be affordable at or below that income level.

AREA MEDIAN INCOME (AMI
The most current median income in the HUD Metropolitan Fair Market Rent Area

(HMFA) for Nashua, NH, adjusted for the number of persons in the household, as
determined by the U.S. Department of Housing and Urban Development.

CDD

Community Development Department of the City of Nashua, or its successor. .
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)

As defined in 24 CFR § 92.2, which is hereby incorporated by this reference.

DOWNTOWN

Any lot, parcel or tract within a contiguous area that is located within the D-1 or D-
3 zoning districts.

HOUSING DEVELOPMENT

Creation of new housing units through new construction and/or conversion of
existing space currently or previously used for non-residential purposes.
Renovation of existing housing units is not considered housing development for the
purposes of this § 190-48, unless it creates additional housing units in which case
the net new number of units shall be considered Housing Development.

OWNERSHIP HOUSING

Any dwelling unit intended to be conveyed in fee simple, condominium, or equity-
sharing arrangement such as a community housing land trust and limited equity

cooperatives.
RENTAL HOUSING
Any dwelling unit intended to be rented rather than conveyed as Ownership
Housing.
B. Affordable Housing Requirements. This section applies to any application for housing

development approval within the City as further outlined in Table 48-1 below. All housing
developments must meet the requirements of Table 48-1 below as explained in this section:

(1) Units: The total number of housing units in the proposed housing development.

PART C, EXPERIENCE AND QUALIFICATIONS

|. Staff Experience

We offer a staff experienced in broadcast TV and AM/FM radio. Their resumes are attached

1. Michael Hemeon, Project Manager. Mike has over 43 years of experience in the TV and radio
broadcasting industry. He held many technical and management positions, ranging from production
to maintenance of equipment. He holds several FCC commercial licenses and is a certified
professional broadcast engineer (CPBE).

2. George Russell, Technical Services Manager. George has been in broadcasting for 22 years and has
operated several radio stations across the state. George was also a regular TV guest on Fox and
Friends in NYC. George has won numerous NHAB broadcaster awards. In addition, George has
installed, maintains and operates local commercial FCC regulated AM/FM radio station
(WSMN1590), of which he is co-owner with Bob Bartis.

3. Bob Bartis, Engagement Manager. Bob is a licensed NH attorney since 2000, became involved in
radio in 2015 as aregular contributor and NASCAR analyst for ESPN-NH radio. Bob is the owner
and operator of AM/FM radio station WSMN1590 since 201 7and has broadcasted of a multitude of
subjects, from various locations with countless guests. Bob is proficient in recording, monitoring,
mixing, editing and producing audio shows.

4. Gordon Jackson, Trainer. Gordon owned and operated a local FCC licensed low power television
station for 22 years (WYCN tv13). He is knowledgeable of the design, installation and maintenance
of a TV studio, and all aspects of camera, light and audio operations for live and recorded programs
in studio and field conditions.

5. Carolyn Choate, Trainer. Carolyn served as producer and sales manager for WYCN tv13 for 22
years, with broad experience in development, strategy, human resources and public relations.
Carolyn produced three long-running programs and helped build WYCN tv13from financial ruin to a
million dollar asset. In addition, Carolyn is active in fundraising.

6. Art Colvin, Program Editor. Assist with the production, training, programming, editing, scheduling,
advertising and engineering for various AM and FM radio stations. Art received several NHAB
awards and studied communications with an emphasis in radio broadcasting and engineering. He is
currently developing his own webcast radio.

7. Jasmine Torres Allen, Program Editor. Jasmine has produced radio and podcast programs for
NHPBS, Rivier University and WSMN1590. Jasmine is proficient in video and sound editing,
photography and videography. She has 4 years of teaching experience.

8. Oscar Villacis, Diversity Services. Oscar is a professional radio personality on English and Spanish
speaking stations. Oscar advises and motivates foreign born young professionals. He was appointed
to the Nashua Citizens Advisory Committee evaluating funding requests from local human service
agencies. Oscar took courses in computer science and engineering.

ORDINANCE O-21-073

(2)

(3)

(4)

(3)

(6)

(7)

(8)

(9)

(10)

Location: “Citywide” refers to projects in any location in the City of Nashua other
than Downtown. “Downtown” refers to projects located in the Downtown.

IZ Required: This column indicates whether a housing development of a specific
unit count in a specific location is required to include below-market affordable units
as per this ordinance.

Total Percent Required: This column indicates the percentage of the total number
of units that are required to meet Tier 1 and Tier 2 Target AMI levels as outlined in
the next two columns.

Tier 1 Target AMI: This column indicates a percentage of the total number of units
that must be affordable at or below a specific target AMI.

Tier 2 Target AMI: This column indicates a percentage of the total number of units
that must be affordable at or below a second specific target AMI.

Payment in Lieu for Partial Units: This column indicates whether partial units from
the Total Percent Required and Tier 1 and Tier 2 AMI levels can be met with a
payment into the Housing Trust Fund (R-21-118 as amended.)

Payment in Lieu for All Units: This column indicates whether a developer has the
option of meeting its requirements under this ordinance in full through payment to
the Housing Trust Fund in lieu of providing units on-site into the Housing Trust
Fund (R-21-118 as amended.) If this column says “No,” the developer shall not
make payments in lieu of any whole unit calculated under the Tier 1 and Tier 2
requirements and must provide those full units.

Payment in Lieu Value: This column indicates the fee in lieu amount per full unit.
That amount is prorated for partial units proportionately.

Bonus Density Ratio: This column indicates an additional number of market rate
units that may be provided in a housing development in return for providing
required affordable units on- site. This bonus does not apply for fractional units or
full units for which a developer makes a payment in lieu, or for units provided off-
site. For more details see E. below.

In cases of conflict between Table 48-1 and this section, the language in the table shall

prevail.

(1)

Term, Location and Size of Affordable Units.

The intent of this ordinance is to ensure that affordable units created under its
requirements be affordable for a period of ninety-nine (99) years. The developer
must make a binding commitment that such units will remain affordable for the
longest time periods permissible by federal and state law. Affordability of the units
for the required terms shall be controlled through a deed restriction, restrictive
covenant, or CDHO approved by CDD, that will provide details on how to ensure
households are below income maximums; resale of units is limited to prices

(2)

(3)

affordable below income maximums; and other relevant terms to ensure that the
units meet the intent of this ordinance.

Required affordable units must be integrated with the rest of the housing
development, must use a common entrance, and must provide no indications from
common areas that these units are affordable housing units.

Required affordable units need not be the same size as other units in the housing
development but the number of bedrooms in such units shall be no less than 10
percent of the total number of bedrooms in the housing development. For the
purposes of calculating the number of bedrooms in a housing development, every
400 square feet in each market rate unit will count as a bedroom if CDD determines
this method is appropriate in lieu of counting actual bedrooms.

Certificates of Occupancy and Project Phasing.

(1)

(2)

(3)

No final Certificate of Occupancy (CO) shall be issued for a housing development
until the terms of this section are met, including but not limited to the requirements
of C. above and the complete payment of any fees in lieu of units to the Housing
Trust Fund.

Certificates of Occupancy for affordable units must be obtained at the same time as
those of:other housing units in the housing development.

A housing development may be separated into phases of reasonable sizes, in which
case the affordable units and/or fees in lieu must be provided in proportion to the
portion of the project completed. However, projects shall not be segmented or
phased to avoid compliance with these provisions, such as by proposing more units
than are intended.

Bonus Density Ratios

(1)

(2)

(3)

Any development that provides required affordable units as outlined in this section
is eligible for a bonus density ratio as listed in Table 48-1.

This ratio is an additional number of market-rate units that may be built in
proportion to the total number of on-site required affordable units. Off-site units or
fees-in-lieu do not count towards this total.

All project phases shall have an affordable housing component. In the case of
fractional units, the number of bonus units shall be rounded down. However,
fractional bonus density units may be combined with other fractional units for
which a project may be eligible for to create additional units if the fractions add up
to one or more. For example, a ten-unit project with a ten percent inclusionary
requirement and a 2.5:1 bonus density ration would be able to build eleven market
rate units (9 + 2.5 rounded down) and one on-site affordable unit. If the base zoning
permitted this project to have 10.5 units in total, the project could have twelve
market rate units (9.5 + 2.5) and one on-site unit, as well as a fee-in- lieu for 0.05
units (0.5 x 10%.)

ORDINANCE O-21-073

(4) The bonus density units do not count toward the base number of units for which an
Inclusionary Zoning requirement is calculated in this section. For example, a ten-
unit project with a ten percent inclusionary requirement and a 2:1 bonus density
ratio would be able to build eleven market rate units and one on-site affordable unit.
However, if the affordable unit is not provided on-site, or replaced with a fee- in-
lieu, the project could only build ten units.

F, Enforcement

(1) = Affordability of rental units shall be enforced through a deed restriction and lien
granted to the City of Nashua.

(2) Affordability of ownership units shall be enforced through a deed restriction.
Rental of affordable ownership units shall be permitted only upon notification of
the City of Nashua and demonstration of compliance with rental affordability
requirements as defined in this section.

G. Administration.

(1) This section shall be administered by the CDD, including establishing and updating
affordable sales prices and rents based on reasonable and documented

methodologies.

(2) | CDD shall promulgate regulations to further specify the details of this section,
which shall be approved after a hearing and vote of the Planning Board.”

This ordinance shall become effective immediately upon passage.

THROUGH JUNE 30, 2022

Inclusionary Zoning (IZ) Policy Matrix

PAYMENT IN
TOTAL TIER 1 LIEUFOR PAYMENT IN BONUS

IZ PERCENT | TARGET AMI TIER 2 PARTIAL LIEU FOR PAYMENTIN]| DENSITY
UNITS LOCATION | REQUIRED? | REQUIRED [1] TARGET AMI UNITS? ALL UNITS? LIEU VALUE| RATIO [2]
OWNERSHIP HOUSING
Less than 10 Citywide N
10-49 Citywide N
50-99 Citywide Y 15% 80% (10%) 100% (5%) Y N $100,000 2:1
100+ Citywide Y 20% 80% (10%) 100% (10%) Y N $100,000 2:1
RENTAL HOUSING
Less than 10 Citywide [3] N
10 - 49 Citywide N
50 - 99 Citywide Y 15% 80% N/A Y N $37,000 1:1
100+ Citywide Y 20% 80% N/A Y N $37,000 1:1
Less than 10 Downtown N
10 - 49 Downtown N
50-99 Downtown Y 7.5% 80% N/A Y Y $37,000 2.5:1
100+ Downtown Y 10% 80% N/A Y Y $37,000 2.5:1
NOTES:

[1] Target income tiers are applied based on share of total 1Z requirement
(2] Bonus density ratio reflects number of additional market rate units allowed for every IZ unit provided
(3] Citywide IZ policy for rental housing does not apply in designated Downtown District