TO: Honorable Mayor & Members of the North Port Commission
FROM: Juliana B. Bellia, Acting City Manager
TITLE: Resolution No. 2020-R-31, A Resolution of The City of North Port, Florida Identifying an Inventory List of City-Owned Real Property Sites that are Appropriate for Use as Affordable Housing Sites; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Resolution 2020-R-31 and provide further direction on future action for affordable housing.
Background Information
Per Florida Statute 166.0451 “each municipality shall prepare an inventory list of all real property within its jurisdiction to which the municipality holds fee simple title that is appropriate for use as affordable housing”. This list must be updated by the municipality every three years. The original affordable housing list (2007-R-48) was adopted November 13th, 2007. The resolution was updated in 2010, 2013, and 2016. The most recent affordable housing inventory list (2016-R-04) designates a total of eleven (11) lots for affordable housing purposes.
Staff has drafted an updated affordable housing inventory list for 2020 which removes one (1) lot (PID 0958-11-3116) for purchase by a neighboring property owner and maintains the remaining ten (10) lots from the previous resolution.
Staff has also identified seventeen (17) lots (Attachment 2) that are labeled surplus and could be added to this list. However, doing so may interact adversely with the direction from Commission to offer surplus lots to adjacent property owners if not managed properly.
Florida Statute 166.0451 outlines several possible uses for lots designated for affordable housing:
1. Lots may be offered for sale and the proceeds may be used to purchase land for the development of affordable housing or to increase the local government fund earmarked for affordable housing;
2. Lots may be sold with a restriction that requires the development of the property as permanent affordable housing;
3. Lots may be donated to a nonprofit housing organization for the construction of permanent affordable housing; or
4. Lots may otherwise be made available by the municipality for production and preservation of permanent affordable housing.
A formal process for utilizing the lots designated for affordable housing is being created but has not yet been completed. The City has had minimal interest in the lots since Resolution 2007-R-48 was adopted and does not have record of any affordable housing development coming to fruition on the designated lots.
Staff is requesting direction from Commission on the inclusion of additional lots for the affordable housing list moving forward as well as establishing how the lots should be used. There currently is not an established process for the purchase of a lot designated for affordable housing. The City does not have the means to develop affordable housing itself, as the fourth point from Florida Statute 166.0451 outlines.
Staff is presenting options on how to move forward with the affordable housing list to streamline the selection of lots:
OPTION 1: The affordable housing list is updated and provided to Commission every three years with the lots currently listed as surplus; not being claimed for a particular use by any City department. In addition, the City offers the designated lots for sale with the proceeds being used to fund a match program to assist developers in the funding of affordable housing. As an example, this could be used to budget funds for the local government contribution for the Low-Income Housing Tax Credit program. This option would require the creation of a separate fund earmarked for affordable housing. The properties sold would not have to be used specifically for affordable housing purposes.
Option 1 blends meeting the requirements of F.S. 166.0451 with Commission direction to offer properties to adjacent owners. The offers to adjacent owners would have to follow the procedures being established by the City Manager’s Office for sale of surplus properties. If Option 1 is selected, staff recommends including the lots in attachment 2 in Resolution 2020-R-31.
Additionally, under Option 1 it would need to be determined if that is the only way the City Commission would like the lots to be used, or if they could also be sold with a deed restriction or donated to a nonprofit, both of which would require affordable housing to be built on the lots. Nothing restricts the City from allowing multiple uses for the lots.
Option 2: Adopt Resolution 2020-R-31 as presented. No further action would be taken until the procedures being established by the City Manager’s Office are adopted.
Strategic Plan
• Promote sustainable growth and development, while maintaining or enhancing quality of life in our City
• Promote a range of housing options and affordability for current and future residents
Financial Impact
The creation of a new earmarked account to hold the funds from the sale of city-owned lots designated for affordable housing.
Procurement
N/A
Attachments:
1. Resolution No. 2020-R-31
2. Additional Surplus Lots
Prepared by: Tom Sacharski, Planner
Department Director: Jason Yarborough, ICMA-CM, Assistant City Manager