HomeMy WebLinkAboutORDINANCES-2007-032-O-07•
3/5/2007
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AN ORDINANCE
Amending Ordinance 27-0-06, that Created
Title 5, Chapter 7 of the City Code,
"The Inclusionary Housing Ordinance"
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That Ordinance 27-0-06 is hereby amended to read
as follows:
SECTION 1: That Title 5 of the Evanston City Code of 1979, as
amended, is hereby further amended by enacting a new Chapter 7, "Inclusionary
Housing", to read as follows:
• 5-7-1: TITLE:
This Chapter shall be titled and referred to as the "Inclusionary Housing
Ordinance".
5-7-2: PURPOSE AND INTENT:
The purpose of this Chapter is to promote the public health, safety, and welfare of
the residents of Evanston by requiring residential developments or developments
which contain a residential component to include a certain percentage of dwelling
units in a proposed development to be priced affordably for low- and moderate -
income households or to make a payment in accord with the terms of this Chapter.
Based upon the review and consideration of reports and analyses of the housing
situation in the City, it is apparent that the diversity of the City's housing stock has
declined as a result of increasing property values and housing costs, and a
reduction in the availability of affordable housing; and that, with the exception of
housing subsidized by the City, the privately -developed new residential housing
that is being built in the City generally is not affordable to low- and moderate -
income households. The City recognizes the need to provide affordable owner -
occupied housing to low- and moderate -income households in order to maintain a
diverse population, and to provide owner -occupied housing for those who live or
work in the City. Without intervention, the trend toward increasing housing prices
will result in an inadequate supply of owner -occupied affordable housing for City
residents and local employees, which will have a negative impact upon the ability
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of local employers to maintain an adequate local work force, and will otherwise be
detrimental to the public health, safety, and welfare of the City and its residents.
Since the remaining land appropriate for new residential development within the
City is limited, it is essential that a reasonable proportion of such land be
developed into owner -occupied dwelling units affordable to low- and moderate -
income households and working families.
5-7-3: DEFINITIONS:
For the purposes of administering this Chapter, these definitions shall apply:
AFFORDABLE DWELLING UNIT: Any unit of owner -occupied housing, as
defined herein, built to satisfy the requirements of this chapter.
AFFORDABLE HOUSING, OWNER -OCCUPIED: Decent, safe, sanitary housing
that is: (1) affordable to "Relevant Households" as defined herein; and (2) to be
sold only to "Qualified Households" as defined herein. The cost of the mortgage
payment and relevant expenses (a calculation of property taxes, homeowner's
insurance, and, when applicable, condominium or homeowner association fees) of
owner -occupied dwelling units shall not exceed thirty-three percent (33%) of the
Relevant Household's gross annual household income (the total income of all
adults over eighteen years of age in the household).
AFFORDABILITY PERIOD: The time during which the affordability restrictions
imposed by this ordinance shall apply. Affordable Dwelling Units covered by this
chapter shall remain affordable in perpetuity or as long as allowable by law. The
affordability period begins at the time of first occupancy of the affected unit.
AFFORDABLE HOUSING AGREEMENT: The document signed by the purchaser
of an Affordable Dwelling Unit at time of sale, along with such other legal
documents as may be required, detailing the affordability requirements of the
Affordable Dwelling Unit.
APPLICANT: Any Developer who applies to the Department to receive approval of
a Covered Development pursuant to this Chapter.
AREA MEDIAN INCOME (AMI): The median income level for the Chicago
Primary Metropolitan Statistical Area, as established and defined in the annual
schedule published by the Secretary of the United States Department of Housing
and Urban Development and adjusted for household size.
CERTIFICATE OF QUALIFICATION: A certificate issued by the Department
establishing a Qualified Household's eligibility to purchase an Affordable Dwelling
Unit. Certificates of Qualification shall be valid for twelve months.
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• COMMUNITY LAND TRUST: A private, not -for -profit corporation which the City
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may create; or authorize organized exclusively for charitable, cultural, or other
purposes to acquire and own land for the benefit of the City, including the creation
and preservation of affordable housing.
CONSUMER PRICE INDEX: Consumer Price Index for All Urban Consumers as
published annually by the United States Department of Labor, Bureau of
Labor Statistics.
COVERED DEVELOPMENT: A development containing twenty-five (25) or more
owner -occupied Dwelling Units, subject to the planned development requirements
of Title 6, Chapter 3 of the Zoning Ordinance, on contiguous land under common
ownership or control by an Applicant at one location within the City, when such
Dwelling Units are to be sold to owner -occupants. The term "Covered
Development" includes, without limitation, the following:
(A) A development that is new residential construction or new mixed -use
construction with a residential component.
(B) A development that is the renovation or reconstruction of an existing
multiple -family residential structure that increases the number of
• residential units from the number of units in the original structure.
(C) A development that will change the use of an existing building from
non-residential to residential.
(D) A development built in phases.
DEPARTMENT: The Evanston Community Development Department or any
successor agency, unless otherwise indicated.
DEVELOPER: Any person, firm, corporation, partnership, limited liability company,
association, joint venture, or any entity or combination of entities that develops
Dwelling Units, but does not include any governmental entity.
DIRECTOR: The Director of the Evanston Community Development Department
or his designee.
HOUSING PROVIDER: A non-profit entity designated by the City to own
Affordable Dwelling Units.
INCLUSIONARY HOUSING PLAN: The Plan submitted as part of a Planned
Development application which details the development's compliance with the
• Affordable Housing requirements of this Chapter.
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LOW-INCOME HOUSEHOLD: A household with a total income equal to or below
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eighty percent (80%) of the AMI.
MARKET -RATE DWELLING UNITS: All owner -occupied Dwelling Units in a
Covered Development that are not Affordable Dwelling Units as defined herein.
MODERATE -INCOME HOUSEHOLD: A household with a total income between
eighty percent (80%) and one hundred percent (100%) of the AMI.
QUALIFIED HOUSEHOLD: A household that the Department has verified meets
the definition of a "Relevant Household" as defined herein and has received a
Certificate of Qualification from the Department per Section 5-7-6 of this Chapter.
RELEVANT HOUSEHOLD: A household whose total income does not exceed
one hundred percent (100%) of the AMI.
5-7-4: INCLUSIONARY HOUSING REQUIREMENT:
(A) GENERAL REQUIREMENT: Ten percent (10%) of the total number of
owner -occupied Dwelling Units in a Covered Development shall be
Affordable Dwelling Units.
(B) CALCULATION: To calculate the number of Affordable Dwelling Units •
required in a Covered Development, the total number of proposed owner -
occupied Dwelling Units shall be multiplied by ten percent (10%), with all
fractions rounded up to the nearest whole number.
5-7-5: INCLUSIONARY HOUSING COMPLIANCE PROCEDURES:
(A) APPLICATION: The Applicant for approval of a Covered Development
shall file an application for approval of the Affordable Dwelling Unit
component of a Planned Development on a form provided by the
Department and submit it with the application for approval of the Planned
Development. The application for Planned Development shall not be
considered complete without the information required by this Chapter for the
Affordable Dwelling Unit component. The application shall require, and the
Applicant shall provide, among other things, general information about the
nature and scope of the Covered Development, as well as other documents
and information as this Chapter and the Department may require. The
Application shall include the Inclusionary Housing Plan referred to under
Subsection (B) of this Section.
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• (B) INCLUSIONARY HOUSING PLAN: The Applicant shall submit an
Inclusionary Housing Plan that outlines and specifies the Covered
Development's compliance with each of the applicable requirements of this
Chapter. The Inclusionary Housing Plan shall specifically contain, as a
minimum, the following information regarding the Covered Development:
(1) A general description of the Covered Development.
(2) The total number of Market -Rate Dwelling Units and Affordable
Dwelling Units in the Covered Development.
(3) The number of bedrooms in each Market -Rate Dwelling Unit and
each Affordable Dwelling Unit.
(4) The square footage of each Market -Rate Dwelling Unit and each
Affordable Dwelling Unit.
(5) The general location of each Affordable Dwelling Unit within the
Covered Development.
(6) The pricing schedule for each Affordable Dwelling Unit and each
• Market -Rate Dwelling Unit.
(7) The phasing and construction schedule for each Market -Rate
Dwelling Unit and each Affordable Dwelling Unit.
(8) Documentation and plans regarding the exterior and interior
appearances, materials, and finishes of the Covered Development
and each of its Dwelling Units.
(9) A description of the marketing plan that the Applicant proposes to
utilize and implement to promote the sale of the Affordable Dwelling
Units within the Covered Development.
(10) Any proposal to make a cash payment, per Section 5-7-8 of this
Chapter, or alternative equivalent action, per Section 5-7-9 of this
Chapter, in lieu of providing Affordable Dwelling Units.
5-7-6: ELIGIBILITY AND PREFERENCE OF HOUSEHOLDS FOR
AFFORDABLE DWELLING UNITS:
(A) CERTIFICATE OF QUALIFICATION: The Department shall issue a
Certificate of Qualification to any household the Department has verified
• meets the definition of "Relevant Household" as defined in this Chapter.
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(B) ELIGIBILITY: The Affordable Dwelling Units shall be sold only to owner -
occupant Qualified Households whose primary residence shall be said
Affordable Dwelling Units and whose household income does not exceed
one hundred percent (100%) of the AMI. At least twenty-five percent (25%)
of the Affordable Dwelling Units shall be sold to Qualified Households
whose income is eighty percent (80%) of the AMI or less.
(C) PREFERENCE: Priority for Affordable Dwelling Units will be given first to
Qualified Households who currently live in Evanston, or who have lived in
Evanston with a member of a household currently living in Evanston, and to
households in which the head of the household or the spouse or domestic
partner works in Evanston.
5-7-7: DISTRIBUTION AND ATTRIBUTES OF ON -SITE AFFORDABLE
DWELLING UNITS:
(A) LOCATION OF AFFORDABLE DWELLING UNITS: Affordable Dwelling
Units shall be dispersed among the Market -Rate Dwelling Units throughout
the Covered Development.
(B) PHASING OF CONSTRUCTION: In a multi -phased development, all
phases shall include a proportion of Affordable Dwelling Units throughout •
the Covered Development. The Affordable Dwelling Units shall never be
the last units to be built in any Covered Development.
(C) EXTERIOR APPEARANCE: The exterior appearance of the Affordable
Dwelling Units in any Covered Development shall be visually compatible
with the Market -Rate Dwelling Units in the Covered Development. External
building materials and finishes shall be substantially the same in type and
quality for Affordable Dwelling Units as for Market -Rate Dwelling Units.
(D) INTERIOR APPEARANCE AND FINISHES: Affordable Dwelling Units shall
have the same interior appearance and finishes as basic Market -Rate
Dwelling Units and the bedroom mix of Affordable Dwelling Units shall be in
equal proportion to the bedroom mix of the Market -Rate Dwelling Units. If
the bedroom mix creates more options than the number of Affordable
Dwelling Units to be built, the Affordable Dwelling Units shall be built with
the greater number of bedrooms; eg: If the bedroom mix provides for four
options — efficiency, one bedroom, two bedroom, or three bedroom — but
only three Affordable Dwelling Units are to be built, then a one bedroom-, a
two bedroom-, and a three bedroom -unit shall be built.
(E) UNIT SIZE: Affordable Dwelling Units shall have substantially the same
square footage as Market -Rate Dwelling Units with a comparable number of
bedrooms.
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• (F) ENERGY EFFICIENCY: Standard components related to energy efficiency,
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including, but not limited to, mechanical equipment and plumbing,
insulation, windows, and heating and cooling systems, shall be the same in
Market -Rate Dwelling Units and Affordable Dwelling Units.
5-7-8: CASH PAYMENT IN LIEU OF PROVIDING AFFORDABLE
DWELLING UNITS:
FEE PAYMENT: As of right, an, Applicant may pay a fee in lieu of building each
Affordable Dwelling Unit required by Section 5-7-4 for the Covered Development.
(A) The fee in lieu per Affordable Dwelling Unit shall be determined and
approved by the City Council. The fee in lieu amount per Affordable
Dwelling. Unit shall be forty thousand dollars ($40,000.00) from (the effective
date of this Ordinance 27-0-06) through April 1, 2008. Thereafter, the fee
in lieu is subject to review and revision by the City Council at least annually
by April 1.
(B) All cash payments received pursuant to this Chapter shall be deposited
directly into the Affordable Housing Tax Fund.
• (C) Unless otherwise pre-empted by law, any fee in lieu shall be paid prior to
the issuance of a temporary certificate of occupancy for any dwelling unit
in the Covered Development.
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5-7-9: ALTERNATIVE EQUIVALENT PROPOSAL
An Applicant may propose to meet the requirements of Section 5-7-4 by
an alternative equivalent action, subject to the review and approval by the
Planning and Development Committee. A proposal for an alternative equivalent
action may include, but is not limited to, dedication of vacant land, the
construction of Affordable Dwelling Units on another site, or acquisition and
enforcement of sales price restrictions on existing Market -Rate Dwelling Units so
as to render them Affordable Dwelling Units. Any proposal shall show how the
alternative proposed will increase affordable housing opportunities in the City to
an equal or greater extent than compliance with the express requirements of this
Chapter. Such proposals for alternatives shall be considered on a case by case
basis by the Planning and Development Committee and may be approved at the
Committee's sole discretion, if the Committee determines that such alternative
will increase affordable housing opportunities in the City to an equal or greater
extent than compliance with the express requirements of this Chapter.
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5-7-10: REDUCTION OR WAIVER OF INCLUSIONARY HOUSING
REQUIREMENTS
(A) REDUCTION: If the Applicant presents clear and convincing
financial evidence to the Planning and Development Committee that full
compliance with Section 5-7-4 of this Chapter, payment in lieu as per Section 5-
7-8 of this Chapter, or alternative equivalent action as per Section 5-7-9 of this
Chapter, or any combination thereof would render the development financially
infeasible, the Applicant may seek a reduction in the required number of
Affordable Dwelling Units and/or payment in lieu as to render the project
financially feasible. If such a reduction is requested, a detailed explanation shall
be provided which demonstrates the financial infeasibility of full compliance with
the ordinance requirements.
(B) WAIVER: If the Applicant presents clear and convincing_ financial
evidence to the Planning and Development Committee that any compliance with
Section 5-7-4 of this Chapter, payment in lieu as per Section 5-7-8 of this
Chapter, or alternative equivalent action as per Section 5-7-9 of this Chapter, or
any combination thereof would render the development financially infeasible, the
Applicant may seek a waiver of the required Affordable Dwelling Units and/or
payment in lieu as to render the project financially feasible. If such a waiver is
requested, a detailed explanation shall be provided which demonstrates the
financial infeasibility of any compliance with the ordinance requirements.
5-7-11: AFFORDABILITY CONTROLS:
(A) INITIAL SALE PRICES FOR AFFORDABLE OWNER -OCCUPIED
DWELLING UNITS:
(1) Every Affordable Owner -Occupied Dwelling Unit required to be
established under this Chapter shall be offered for sale to a good -
faith purchaser to be used for his or her own primary residence.
(2) The Director shall publish a Pricing Schedule of sales prices for
Affordable Dwelling Units in accordance with the provisions of
Section 5-7-11(A)5 and 5-7-11(A)(6). The Director shall update the
Pricing Schedule at least annually by December 1.
(3) At least twenty-five percent (25%) of the Affordable Dwelling Units
shall be priced so as to be affordable to households earning seventy
percent (70%) of AMI or less, with households earning up to eighty
percent (80%) of AMI eligible to purchase said unit.
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(4) In calculating the sales prices of Affordable Dwelling Units, the
following relationship between unit size and household size shall be
used to determine the income figure at which affordable housing
payments are calculated.
Unit Size
Efficiency units:
One -bedroom units:
Two -bedroom units:
Three -bedroom units:
Four -bedroom and larger units
Income Level for Household Size
1 person household
2 person household
3 person household
4 person household
5 person household
(5) Prices for a minimum of twenty-five percent (25%) of the units shall
be calculated on the basis of:
(a) Housing Payments at or below thirty-three percent (33%) of
the household income for a household at seventy percent
(70%) of AMI at the household size corresponding to the size
of the unit;
(b) an available fixed-rate thirty (30) -year mortgage, consistent
with the average rate published from time to time by Freddie
Mac;
(c) a down payment of no more than five percent (5%) of the
purchase price;
(d) a calculation of property taxes;
(e) a calculation of homeowner's insurance; and
(f) a calculation of condominium or homeowner association fees.
(6) Prices for up to seventy-five percent (75%) of the units shall be
calculated on the basis of:
(a) Housing Payments at or below thirty-three percent (33%) of
the household income for a household at ninety percent
(90%) of AMI adjusted for household size;
(b) an available fixed-rate thirty (30) -year mortgage, consistent
• with the average rate published from time to time by Freddie
Mac;
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(c) a .down -payment of no more than five percent (5%) of the
purchase price;
(d) a calculation of property taxes;
- (e) a calculation of homeowner's insurance; and
(f) a calculation of condominium or homeowner association fees.-
PROCEDURE FOR INITIAL SALE TO THE GENERAL PUBLIC:
(1) Sixty (60) days prior to offering any Affordable Dwelling Unit for sale,
the Applicant shall notify the Department in writing of such offering.
The notice shall set forth the number, size, price, and location of
Affordable Dwelling Units offered, and shall provide a description of
each Dwelling Unit's finishes and availability. The notice shall also
include a copy of the Inclusionary Housing Plan, and any such
additional information the Director may reasonably require to
establish compliance with this Chapter.
(2) Within ten (10) days after receipt of the notification from the
Applicant, the Director shall publish the contents of the notice on the
City's website and in a prominently -located posting at the Evanston
Civic Center. Within that same ten (10) days of receiving such
notice, the Director shall also make such notice available, via mail,
facsimile, or electronic mail, to all Housing Providers who have
expressed interest in receiving such notices.
(3) The prospective purchaser shall make application for a "Certificate of
Qualification" on a form provided by the Department and available on
the City's website. If the Director determines an Applicant is
qualified pursuant to the requirements of this Chapter to purchase an
Affordable Dwelling Unit, he shall issue a "Certificate of Qualification"
to that Applicant. An Applicant must provide documents to verify that
he or she satisfies these requirements, including an affidavit that the
Affordable Dwelling Unit will be his or her primary residence and
evidence of income, household size, and residency or employment
in Evanston. The Director shall determine whether or not the
prospective purchaser satisfies the requirements of this Chapter
within six (6) days after receiving the completed application.
(4) An Applicant shall not sell any Affordable Dwelling Unit without first
obtaining a valid Certificate of Qualification from the prospective
purchaser.
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• C AGREEMENT TO ENSURE COMPLIANCE DURING THE
AFFORDABILITY PERIOD: Prior to issuance of a building permit for any
Covered Development or conveyance of title of any dwelling unit in any
Covered Development, the Applicant shall have entered into an agreement
with the City regarding the specific requirements and restrictions imposed
by the City Council upon the approved Planned Development. The
Applicant shall agree to execute any and all documents deemed necessary
by the City, including without limitation, deed restrictions, restrictive
covenants, and other related instruments, to ensure the continued
affordability of the Affordable Dwelling Units in accordance with this
Chapter. The Agreement shall set forth the commitments and obligations of
the City and the Applicant, and shall incorporate, among other documents,
the Inclusionary Housing Plan. If applicable, the Agreement shall also detail
the fee in lieu or alternative equivalent action of providing on -site Affordable
Dwelling Units as set forth in Sections 5-7-8 and 5-7-9, respectively, of this
Chapter. The Agreement may be modified by mutual consent of the
Applicant and the Director, provided that the Agreement as modified
remains in conformity with this Chapter, the ordinance approving the
Planned Development, and the Zoning Ordinance.
(D) CONTROL OF RESALE PRICES: The maximum sales price, with the
• exception of foreclosure sales, permitted on .resale of an Affordable
Dwelling Unit shall be based on the following formula:
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(1) the original purchase price plus:
(a) an inflation adjustment of the original purchase price calculated
in accordance with the CPI, using the year of the prior sale as
the base year;
(b) allowances for closing costs and sales commissions paid by
the seller; and
(c) the fair market value of approved improvements made to the
Unit between the date of original sale and the date of resale,
up to an average of five thousand dollars ($5,000.00) per
year. "Approved improvements" are capital improvements
which add value to the home, prolong its useful life or adapt it
to new uses. Repairs to maintain the home in good condition
are not allowable capital improvements. A list of general
allowable capital improvements shall be included in the
affordability documents signed by the purchaser.
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(E) FIRST SALE AFTER AFFORDABILITY PERIOD ENDS: This Section
5-7-11(E) shall apply in the event an affordability period in perpetuity is
unlawful or becomes unlawful. Upon the first sale of an Affordable Dwelling
Unit after the Affordability Period ends, the seller shall pay to the City out of
the sale proceeds a percentage of the difference between the actual sales
price and the current affordable resale price as determined pursuant to
Subsection 5-7-11(D). Such sums shall be deposited into the Affordable
Housing Tax Fund. The percentage is based upon the number of years the
seller owned and occupied the Unit, as follows:
Years of Ownership Share to Affordable Housing Tax Fund
(a) 11 to 15 years 50% -
(b) 6 to 10 years 60%
(c) 1 to 5 years 70%
(2) The Director shall determine whether the price and terms of a resale
covered by the preceding paragraph meet the requirements of this
Chapter. Upon a finding of compliance, the Director shall terminate
the affordable housing controls and execute a recordable release of
all applicable mortgages and restrictions.
(3) If an Affordable Dwelling Unit is sold through a foreclosure or other is
court -ordered sale, the Affordable Restrictions are extinguished, but
any remaining net profit shall be returned to the Department and
deposited into the Affordable Housing Tax Fund.
5-7-12: COMMUNITY LAND TRUST
The City may create or authorize a Community Land Trust to effectuate the
purposes of this Chapter.
5-7-13: INCENTIVES FOR APPLICANTS:
For any Covered Development project that complies with the requirements
of this ordinance, the City shall follow the procedures described below and
provide the described incentives:
(A) EXPEDITED APPLICATION PROCESS: All applications shall be
processed by all City departments before other residential land use
applications regardless of the original submittal date.
(B) FEE DEFERRAL: All City -required fees related to the Covered •
Development shall be deferred for payment until the issuance of the
temporary certificate of occupancy.
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• (C) FEE WAIVER: All City -required fees that are specifically related to
Affordable Dwelling Units built on the site of the Covered
Development shall be waived.
5-7-14: ENFORCEMENT:
(A) The provisions of this Chapter shall apply to all agents, successors and
assignees of an Applicant.
(B) The City may institute injunction, mandamus, or any other appropriate legal
actions or proceedings for the enforcement of this Chapter. In addition, any
person, firm, or entity, whether as principal, agent, employee or otherwise,
who violates, disobeys, omits, neglects, or refuses to comply with or resists
the enforcement of any of the provisions of this Chapter shall be fined not
less than two hundred dollars ($200.00) nor more than five hundred dollars
($500.00) for each offense. Each day such violation or failure to comply is
permitted to exist after notification thereof shall constitute a separate
offense.
5-7-15: ADMINISTRATION: In order to ensure compliance with the
provisions of this ordinance, the City may utilize a maximum of fifteen percent
• (15%) each year of funds from the Affordable Housing Tax Fund for administration.
5-7-16: SEVERABILITY: The provisions and Sections of this Chapter shall
be deemed separable, and the invalidity of any portion of this Chapter shall not
affect the validity of the remainder.
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SECTION 2: That all ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 3: If any provision of this Ordinance 27-0-06 or
application thereof to any person or circumstance is held unconstitutional or
otherwise invalid, such invalidity shall not affect other provisions or applications
of this Ordinance 27-0-06 that can be given effect without the invalid application
or provision, and each invalid provision or invalid application of this Ordinance
is severable.
SECTION 4: This Ordinance shall be in force and effect ninety '(90)
days after its passage, approval, and publication in the manner provided by law,
but shall not apply to any development agreement or other agreement specifically
authorized by the City Council prior to that date.
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SECTION 2: That this Ordinance 32-0-07 shall take effect
immediately upon its passage, due to the impending effective date of Ordinance
27-0-06, specifically March 17, 2007.
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Introduced: `2 '2007 Approved:
Adopted: 2- , 2007 2 6 12007
L rraine H. Morton, Mayor
Attest: Approved as to form: f
Mary P. o'r s, t Clerk Corporation Counsel
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