HomeMy WebLinkAboutORDINANCES-2007-040-O-075/16/2007
• 5/4/2007
4/23/2007
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AN ORDINANCE
Renaming and Amending Title 4, Chapter 22,
and Related Sections of the Evanston City Code,
and Consolidating the Mayor's Special Housing Fund
With the Newly -Renamed Affordable Housing Fund
WHEREAS, the City of Evanston is a home rule unit of government
under Article VII of the 1970 Illinois Constitution; and
WHEREAS, the Illinois Municipal Code provides in 651LCS
5/11-13-1(11) that the creation and preservation of affordable housing is a proper
exercise of the zoning powers of all Illinois municipalities; and
• WHEREAS, legislation designed to provide for decent, safe, and
sanitary housing for all residents of the municipality is within the powers of the City
as a home rule unit of government; and
WHEREAS, Goal Two of the City of Evanston's Strategic Plan,
adopted by the City Council on March 27, 2006, is to "create policies and
programs that result in a well -maintained, diverse housing stock throughout the
City of Evanston;" and
WHEREAS, the City Council created the Affordable Housing Fund,
defined in Section 4-22-2 of the Evanston City Code, 1979, as amended, as:
The fund established by city council which can only receive and
expend monies dedicated to the creation, preservation,
• maintenance, and improvement of affordable housing for
households whose income is eighty percent (80%) or less of area
median income with their affordable housing needs;
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and
WHEREAS, the City Council has provided significant revenue for
the Affordable Housing Tax Fund by enacting City Code Sections 4-22-3 (A) and
5-7-8 (B), which, respectively, designate it as the recipient of Affordable Housing
Demolition Taxes and payments in lieu of constructing affordable dwelling units
required by the Inclusionary Housing Ordinance; and
WHEREAS, the Mayor's Special Housing Fund has, since its
creation in 1986, distributed money to create, maintain and improve affordable
housing in Evanston; and
WHEREAS, from the years 1994 through 2006, the Mayor's
Special Housing Fund distributed no less than $1,191,337 for the creation,
•
maintenance and improvement of no less than 142 units of affordable housing in •
Evanston; and
WHEREAS, the City Council desires that the City maintain a single
fund dedicated to the creation, preservation, maintenance, and improvement of
affordable housing, namely the Affordable Housing Tax Fund; and
WHEREAS, the City Council desires that the Affordable Housing
Tax Fund combine its significant revenue with the Mayor's Special Housing
Fund's ability to create, preserve, maintain, and improve affordable housing for
households earning both less and more than eighty percent (80%) of area
median income; and
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is
WHEREAS, the City Council believes that the inclusion of the word
"Tax" in the title of the Affordable Housing Tax Fund may lead people to
misunderstand or misconstrue the purposes of the Fund,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That Title 4, Chapter 22, of the Evanston City Code,
1979, as amended, "Affordable Housing Demolition Tax and Affordable Housing
Tax Fund," be renamed "Affordable Housing Demolition Tax and Affordable
Housing Fund."
SECTION 2: That Section 4-22-2, of the Evanston City Code,
1979, as amended, be and hereby is further amended to read as follows:
• 4-22-2: DEFINITIONS:
For the purposes of administering this Chapter:
AFFORDABLE HOUSING, OWNER -OCCUPIED: Decent, safe,
sanitary housing that is affordable to "Relevant Households" as
defined below. 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).
AFFORDABLE HOUSING, RENTAL: Decent, safe, sanitary
housing that is affordable to "Relevant Households" as defined
below. The cost (including a utility allotment and adjustment for
household size) of rental dwelling units shall not exceed thirty
percent (30%) of the Relevant Household's gross annual household
income (the total income of all adults over eighteen years of age in
said household).
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AFFORDABLE HOUSING FUND: The fund established by City •
Council which can only receive and expend monies dedicated to
the creation, preservation, maintenance, and improvement of
affordable housing for households whose income is one hundred
percent (100%) or less of Area Median Income, with no less than
sixty percent (60%) of all monies reserved for households that earn
less than eighty percent (80%) of Area Median Income. The City
Manager or his/her designee may implement programs including,
but not limited to: down payment and/or rental assistance; building
rehabilitation and/or construction loans; property acquisition and
disposition; and grants to non-profit organizations that serve
households that earn less than one hundred percent (100%) of
Area Median Income. Said programs shall be administered in
accord with guidelines generated by the Evanston Housing
Commission, reviewed by the Planning and Development
Committee of the City Council, and approved by the City Council.
APPLICANT: Any individual who applies for a building demolition
permit under the Evanston City Code.
AREA MEDIAN INCOME: 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.
DEMOLITION: The removal or destruction of a structure or building
in whole or in part to the extent of fifty percent (50%) or more of
such structure or building as it existed prior to the commencement
of such act or process.
DEMOLITION STRUCTURE: The building or structure to be
demolished.
DIRECTOR: The Director of the Evanston Community Development
Department.
DWELLING UNIT: A room or group of contiguous rooms that
include facilities used or intended to be used for living, sleeping,
cooking and eating, and that are arranged, designed, or intended
for use exclusively as living quarters.
RELEVANT HOUSEHOLD: A low or moderate income household
whose total income does not exceed the relevant percent of median •
income for the Chicago Primary Metropolitan Statistical Area
Chicago area, as established and defined in the annual schedule
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• published by the Secretary of Housing and Urban Development,
and adjusted for household size. A low income household has
income that does not exceed eighty percent (80%) of HUD Area
Median Income. A moderate income household has income
greater than eighty percent (80%) of HUD Area Median Income and
that does not exceed one hundred percent (100%) of the HUD Area
Median Income.
REPLACEMENT STRUCTURE: Any building or structure replacing
the Demolition Structure.
RESIDENTIAL STRUCTURE: Any building or structure containing
dwelling units.
RESIDENTIAL STRUCTURE, SINGLE-FAMILY ATTACHED
(GROUP, ROW, OR TOWN HOUSES): Three (3) or more dwelling
units joined side by side.
RESIDENTIAL STRUCTURE, SINGLE-FAMILY DETACHED: A
residential building containing not more than one (1) dwelling unit
entirely surrounded by open space on the same lot.
• RESIDENTIAL STRUCTURE, MULTI -FAMILY: A detached
residential building containing three (3) or more dwelling units,
including what is commonly known as an apartment building, but
not including group, row, or town houses, excluding a hotel, motel,
boarding house, rooming house, dormitory, nursing home, mobile
home, institution, or retirement home or community.
RESIDENTIAL STRUCTURE, SINGLE-FAMILY ATTACHED,
TWO-FAMILY: A residential building containing not more than two
(2) dwelling units entirely surrounded by open space on
the same lot.
SECTION 3: That Section 4-22-3 (A), of the Evanston City Code,
1979, as amended, be and hereby is further amended to read as follows:
4-22-3: AFFORDABLE HOUSING DEMOLITION TAX:
(A) Tax Imposed and Dedicated. Any person granted a permit
under the Evanston City Code for demolition of a Residential
Structure shall pay an affordable housing demolition tax of: (a) ten
• thousand and no/100 dollars ($10,000.00) for the demolition of any
Single -Family Detached Residential Structure, or (b) for the
demolition of any Multi -Family, Single -Family Attached, or Two-
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Family Residential Structure, either ten thousand and no/100 •
dollars ($10,000.00) or three thousand and no/100 dollars
($3,000.00) for each unit in the structure, whichever amount is
more. The tax imposed pursuant to this Subsection shall be in
addition to the demolition permit fee established from time to time
by the City Council and all other applicable fees and charges.
Payment of the tax, unless deferred as provided in Section 4-22-4,
shall be due upon issuance of a demolition permit by the
Department, and is a condition to the validity of the permit. The
City shall have a lien against the property which was the subject of
the demolition permit until applicable tax obligations imposed by
this Chapter are satisfied. The funds received by the City for the
amount imposed pursuant to this Subsection shall be dedicated to
achievement of the affordable housing goals and objectives as set
forth in Section 4-22-1 of this Chapter. The demolition tax funds
received pursuant to the tax imposed by this Chapter shall be
deposited directly into the Affordable Housing Fund.
SECTION 4: That Section 5-7-8, of the Evanston City Code, 1979,
as amended, be and hereby is further amended to read as follows:
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 March 26, 2007 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 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. is
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• SECTION 5: That Section 5-7-11 (E), of the Evanston City Code,
1979, as amended, be and hereby is further amended to read as follows:
(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 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 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 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 Fund.
SECTION 6: That Section 5-7-15, of the Evanston City Code,
1979, as amended, be and hereby is further amended to read as follows:
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 Fund for administration.
SECTION 7: That the City Manager shall direct staff to transfer
• the entire balance of the Mayor's Special Housing Fund into the Affordable
Housing Fund as soon as may be practicable.
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SECTION 8: That all ordinances or parts of ordinances in conflict 0
herewith are hereby repealed.
SECTION 9: If any provision of this Ordinance 40-0-07 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 40-0-07 that can be given effect without the invalid application
or provision, and each invalid provision or invalid application of this Ordinance
is severable.
SECTION 10: That this Ordinance shall be in full force and effect
from and after its passage, approval, and publication in the manner
provided by law.
Introduced: �� 4' % , 2007 Approved:
Adopted: k, gg ,
p 4 �� 2007 L/ , 2007
Lorraine H. Morton, Mayor
E
Attest: Apbrov d as to form:
Mary , City Clerk Co por tion Counsel
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