Chapter 18.216 — Workforce Housing

• A. The purpose of this chapter is to establish a workforce housing requirement and an in-lieu fee for commercial, industrial, and other non-residential development projects to mitigate the impacts caused by these development projects on the additional demand for more affordable housing.

• B. It is intended to implement the Housing Element of the General Plan to ensure an adequate supply of housing to meet the housing needs of all segments of the community and provide a permanent supply of affordable housing to meet the needs of workers generated by new commercial, industrial, institutional, recreational, and residential resort projects.

• C. It is intended to implement the General Plan Housing Element to balance the need for workforce housing for commercial, industrial, and other non-residential development with the other goals and policies of the General Plan including the goals and policies of the Economic Development Element.

The Council may by resolution establish reasonable fees for the administration of this Chapter.

• A. Workforce Housing Required. All commercial, industrial, institutional, recreational, residential resort, and other non-residential projects not exempt under Subsection G shall include or provide workforce housing as set forth in this Chapter.

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B. Number of Workforce Housing Units.

1. A development project shall calculate the amount of full-time equivalent employees generated by the project in accordance with Section C.1 of this chapter, and construct and complete workforce housing unit(s) for employees calculated for the project as set forth in Paragraph 2. For fractions of workforce housing units, the developer may elect, at his or her option, to construct the next higher whole number of affordable units, perform an equivalent alternative which has received the approval of the review authority pursuant to Subsection E, or pay the in-lieu fee specified in Subsection F for such fraction.

2. The number of workforce housing units to be constructed and completed for a development project, shall be calculated based on a portion of the full-time equivalent employees generated by the project, in accordance with Section C.1, as follows:

TABLE 7-10 WORKFORCE HOUSING REQUIREMENTS

1Square footages are provided as examples. Workforce housing requirements are based on the FTEE, as calculated in accordance with Section C.1.

Note: How to calculate the required workforce housing units:

• Determine the amount of FTEE proposed to be generated in accordance with Section C.1;

• Determine size of the project based on FTEE generation in Table 7-8; and

• Multiply the FTEE by the applicable Workforce Housing Requirement.

• 3. All workforce housing units shall have at least one bedroom, and 50% or more of the workforce housing units shall have two or more bedrooms.

4. The review authority, at its discretion, may reduce the number of required workforce housing units if the units have more than two bedrooms and/or are specialized dwellings (e.g., dormitories) and the review authority finds that the units will accommodate an equal or greater number of employees than compliance with the express requirements of Subsection 4.

5. For mixed use projects subject to the requirements of Chapter 18.214 (Inclusionary Housing), the Inclusionary Housing requirements and Workforce Housing requirements are cumulative. The requirements shall be added together and implemented rather than applied separately. If the fractions combine to a whole unit or the developer opts to construct a unit to meet the fractional requirement, the unit

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shall be subject to the inclusionary housing standards consistent with Chapter 18.214 (Inclusionary Housing).

  - a. Example 1: If a project is required to provide 1.2 workforce housing units and 2.8 inclusionary housing units, a total of four affordable housing units are required. One unit shall meet the workforce housing requirements and the three other units are required to meet the inclusionary housing requirements. 

  - b.  Example 2: If a project is required to provide 1.5 workforce housing units and 1.7 inclusionary housing units, a total of 3.2 affordable housing units are required. One unit shall meet the workforce housing requirements and either three units shall meet the inclusionary housing requirements or two units shall meet the inclusionary housing requirements and 20% of an in-lieu fee may be paid. 

• C. Employee Generation. For the purposes of this Chapter, employees generated by a development project shall be calculated as follows:

  1. The standard number of full-time equivalent employees (FTEE) generated by a land use type shall be:

Land Use FTEE Commercial including retail, service, 1 FTEE per 500 s.f. of gross floor office, and restaurant space Industrial, not including uses with 1 FTEE per 1,000 s.f. of gross floor substantial outdoor work or activity areas space Visitor Lodging As determined by review authority based upon comparison with similar businesses Uses Not Listed As determined by review authority based upon comparison with similar businesses

2. A developer of a development project may submit an independent calculation of the number of employees generated by the proposed development to be used in place of the employee generation rates. Approval of the resulting calculation shall be at the discretion of the review authority. Seasonal full-time employees will be counted as 0.50 of a full-time equivalent employee. Part-time employees will be counted based on the number of hours worked per hour for a 40-hour work week (e.g., a part-time worker who works 30 hours per week would be counted as a 0.75 FTEE).

D. Affordability of Workforce Housing Units.

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Workforce housing units shall be deed restricted to require two components:

1. Component 1: Employee preference. Employees of the nonresidential business for which the workforce housing units are required shall have first right-of-refusal with the following requirements:

   • a. Prohibit short-term rentals (for both whole units and portions of the unit);

   • b. Require the unit to be a primary residence;

• c. Require a six-month initial lease; and

  • d. Require annual monitoring.

2. Component 2: If employees of the nonresidential business for which the workforce housing units are required do not rent the workforce housing units, then 100% of the units shall be affordable to low income households, or one-third of the units shall be affordable to very low income households, one-third shall be affordable to low income households, and one-third shall be affordable to moderate income households and shall have the following requirements:

   • a. Prohibit short-term rentals (for both whole units and portions of the unit);

   • b. Require the unit to be a primary residence;

   • c. Require a six-month initial lease; and

   • d. Require annual monitoring.

These requirements are minimum requirements and will not preclude a development project from providing additional affordable units or affordable units with lower rents or sales prices than required by this Chapter. The income targets for determining the rent price may be modified through an alternative equivalent action.

E. Alternative Equivalent Proposal.

1. A developer of a development project may propose to meet the requirements of this Chapter by an alternative equivalent action, subject to review and approval by the review authority of the project, unless Streamlined Residential Review (Chapter 18.79) is requested. A proposal for an alternative equivalent action may include, but is not limited to, the following:

   • a. Land Donation or Dedication to the Town. Donation or dedication of land to the Town for affordable housing is allowed. Land donation or dedication of land shall be equal in value to or more than the requirements of the Code. The Town may partner to construct affordable housing on the property or sell the property to create funds for future housing projects. Requirements for consideration:

     • (1) An assessed value report of the developable land with feasibility study will be

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required to ensure that the land is equal in value to or more than the requirements of the Code.

• (2) If affordable housing units are required (rather than an in-lieu fee), a pro forma for the potential affordable housing project will be required to ensure that the value of the land is equal to or more than the requirement. A peer review may be required by the Town at the applicant’s expense.

• (3) The Town Council shall be the review authority for acceptance of a land donation.

• b. Purchase housing credits from the open market.

  • (1) Two options:

    • a. Developments that are building or have built housing voluntarily can sell their housing credits to developers who are required to build workforce housing. Non-residential developers may partner with projects that have residential units that are not otherwise required for inclusionary or workforce housing requirements. They may purchase the affordable housing “rights” and apply a deed restriction to the units.

hat are building or have built housing voluntarily can sell their housing credits to developers who are required to build workforce housing. Non-residential developers may partner with projects that have residential units that are not otherwise required for inclusionary or workforce housing requirements. They may purchase the affordable housing “rights” and apply a deed restriction to the units.

  - b. Developers can buy existing market rate housing units in the open market and deed-restrict them. The unit would be required to be incomerestricted. If it is income-restricted and the developer does not want to be tied to the unit, the units may be sold with the deed restriction. 

(2) Requirements:

• a. The unit(s) would be required to be deed restricted by income consistent with Section 18.216.040.D for rental units or Section 18.216.040.E.1.d;

• b. No existing long-term rentals shall be displaced;

• c. Prohibit short-term rentals (for both whole units and portions of the unit);

• d. Require the unit to be a primary residence;

• e. Require a six-month initial lease; and

• f. Require annual monitoring.

• (3) Timing:

  • a. If developers partner with another developer that has an existing residential unit, the unit should be identified and an agreement with the homeowner shall be submitted as part of the land use application. Proof of a deed restriction shall be required prior to building permit issuance.

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• b. If a new unit is proposed to be constructed, an agreement with the property owner shall be submitted as part of the land use permit application. The building permit for the unit shall be submitted prior to or concurrent with the building permit for the non-residential project.

(4) Calculation for housing:

     - a. All housing units shall have at least one bedroom, and 50% or more of the workforce housing units shall have two or more bedrooms; and 

     - b. If a property has a primary home and a secondary home and both will be deed restricted, then the developer shall be credited with two units. 

• c. Accessory dwelling unit partnership. Developers can partner with homeowners who have or want a legal accessory dwelling unit on their property. Through the partnership, the developer can either pay the homeowner to deed restrict their existing unit or the developer can help construct a new unit on a property. Requirements for consideration:

  • (1) Requirements for deed restriction:

    • (a) The unit(s) would be required to be deed restricted by income consistent with Section 18.216.040.D;

    • (b) Prohibit short-term rentals (for both whole units and portions of the unit);

    • (c) Require the unit to be a primary residence;

    • (d) Require a six month initial lease; and

    • (e) Require annual monitoring.

  • (2) Timing:

• (a) If developers partner with a homeowner that has an existing legal accessory dwelling unit, the unit should be identified and an agreement with the homeowner shall be submitted as part of the land use application. Proof of a deed restriction shall be required prior to building permit issuance.

  - (b) If a new accessory dwelling unit is proposed to be constructed, an agreement with the homeowner shall be submitted as part of the land use permit application. The building permit for the accessory dwelling unit shall be submitted prior to or concurrent with the building permit for the non-residential project. 
  

• d. Ownership units. Ownership units can be considered for any project instead of rental units.

  • (1) For ownership units, 100% of the units shall be affordable to moderate income

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households, or one-third of the units shall be affordable to low income households, one-third shall be affordable to moderate income households, and one-third shall be affordable to above moderate income households. Deedrestrictions shall be required to be recorded on the units.

• (2) All workforce housing units shall have at least one bedroom, and 50% or more of the workforce housing units shall have two or more bedrooms.

2. An alternative equivalent proposal shall be considered on a case-by-case basis by the review authority and may be approved at the review authority’s sole discretion, if the review authority finds that such alternative will further affordable housing opportunities in Truckee to an equal or greater extent than compliance with the express requirements of Subsections B and D. In making these findings, the review authority may consider the type of non-residential use(s) being proposed in the development project and whether workforce housing constructed within or adjacent to the development project would be compatible with such uses. The alternatives provided within Section 18.216.040.E provide assurance to developers that the review authority can support these alternatives. The alternatives can be modified or new alternatives can be proposed for review and approval by the review authority.

3. Projects requesting Streamlined Residential Review (Chapter 18.79) are not eligible for an alternative equivalent proposal.

F. In-Lieu Affordable Housing Fee.

1. A developer of a development project may propose to meet the requirements of Subsections B and D by submitting at the time of application for a discretionary or building permit, whichever comes first, a request to pay the in-lieu fee.

2. Such proposals for payment of an in-lieu affordable housing fee shall be considered on a case by case basis by the review authority and may be approved at the review authority’s sole discretion, if the review authority finds that the payment of the in-lieu fee will further affordable housing opportunities in the Truckee region to an equal or greater extent than compliance with the express requirements of Subsections B and D.

an in-lieu affordable housing fee shall be considered on a case by case basis by the review authority and may be approved at the review authority’s sole discretion, if the review authority finds that the payment of the in-lieu fee will further affordable housing opportunities in the Truckee region to an equal or greater extent than compliance with the express requirements of Subsections B and D.

3. Notwithstanding the requirements of Subsection 2, the payment of an in-lieu affordable housing fee for a development project which generates less than 20 full-time equivalent employees or 10 very low, low, and moderate income category employees shall be at the discretion of the developer.

4. The amounts, calculation, and timing of payment of the affordable housing in-lieu fee shall be established by resolution of the Town Council.

• G. Exemptions. The following development projects shall be exempt from the requirements of this Chapter:

  1. Residential development projects which do not include a resort, commercial, or community amenity use that will generate employees.

  2. Development projects that generate less than seven full-time equivalent employees

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as determined in accordance with Subsection C.

3. The conversion of non-residential floor space from one use to another use whereby the new use generates the same or less number of full-time equivalent employees than the previous use.

4. Development projects that are the subject of a development agreement currently in effect with the Town or approved prior to the effective date of this Chapter where such agreement expressly precludes the Town from requiring compliance with this Chapter.

5. Development projects which have received approval of the land use and development permit application prior to the effective date of this Chapter, except the development project shall comply with any conditions regarding affordable housing that were imposed at the time of approval of the land use and development permit.

• A. Location of Workforce Housing Units. Workforce housing units shall be built on site within or adjacent to the development project. Offsite workforce housing units may be considered under an Alternative Equivalent Proposal but shall be required to be in close proximity to the development project, located within Town limits, along or near a major transportation corridor with public transit, and/or near a major service center.

• B. Timing of Development. Workforce housing units shall generally be constructed and offered for sale or rent in accordance with this Chapter concurrently with or prior to completion of the development project or phase thereof. As used in this Chapter, “concurrently” means that a proportionate share of workforce housing units, including a proportionate share of units by income affordability, must be substantially completed by the time 50% of the development project is occupied. The review authority at its own discretion may approve an alternative timing plan if the review authority finds the alternative timing plan will further affordable housing opportunities in the Town to an equal or greater extent and the completion of the workforce housing units is secured by a performance bond or other similar security.

• C. Building Types and Exterior Appearance. Workforce housing units shall have exteriors that are visually and architecturally consistent with and similar to market rate units in the neighborhood. Exterior building materials and finishes for workforce housing units shall be of the same type and quality as for market rate units. The building types for workforce housing units shall be compatible with the design and character of the development and neighborhood.

• D . Interior Quality. Workforce units may have different interior finishes, amenities, and features than the market rate units provided the interior finishes, amenities, and features are durable, of good quality, and consistent with contractor grade for new housing.

In addition to any potential density bonuses, incentives, and concessions requested consistent with Chapter 18.212 (Density Bonuses, Incentives, and Concessions), the following incentive shall apply:

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Development projects in the Manufacturing (M) and General Commercial (CG) zoning districts shall receive an increase in floor area ratio of 0.1, or 4,356 square feet per acre, above the base FAR allowed under Table 2-9 (Commercial and Manufacturing District Development Standards) if all workforce housing units are constructed on site. Where less than one workforce housing unit is required, one whole workforce housing unit is required to be constructed.

Workforce housing units shall be restricted in accordance with Chapter 18.210 (Affordable Housing Controls).

• A. Plan Required. A workforce housing plan shall be submitted with the land use and development permit application for development projects. The workforce housing plan shall be reviewed as part of the land use and development permit application and shall be approved prior to or concurrently with the approval of the land use and development permit application.

• B. Request for Evaluation. A developer of a development project may submit a “Request for Evaluation of Complying with Workforce Housing Requirements” prior to submittal of a land use and development permit application. The request shall include all information required for a Workforce Housing Plan and any other information deemed necessary by the Community Development Director. The review authority may consider the request and provide comments to the developer on whether the request complies with this Chapter, may comply if revisions are made, or does not comply. Any comments provided by the review authority on the request shall not bind the review authority on any future actions on the Workforce Housing Plan and/or land use and development permit application.

• C. Plan Information. The Workforce Housing Plan shall include, but not be limited to, the following information in addition to information otherwise required by the Development Code:

  1. A site plan and typical floor plans depicting the location, size, structure, proposed use(s), and story and floor layout of the proposed non-residential development;

  2. A site plan and typical floor plans depicting the location, structure, proposed tenure (rental or ownership), story and floor layout, and size of the proposed workforce housing units;

  3. The calculations used to determine the number of required workforce housing units, including floor space of non-residential development, employee generation rates, and employees credited for each workforce housing unit;

  4. The income level targets for each workforce housing unit;

  5. The mechanisms that will be used to assure that the workforce housing units will remain affordable;

  6. A phasing plan for the construction and completion of the non-residential development and the workforce housing units;

  7. A description of any requested bonuses, incentives, and/or concessions, in compliance with Chapter 18.212 (Density Bonuses, Concessions, and Incentives);

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8. A marketing plan for the process by which qualified households will be reviewed and selected to either purchase or rent workforce housing units;

9. A description of any provisions providing preference for employees employed by the project to the proposed workforce housing units.

10. A description of private and public transit services available to the workforce housing residents and a description of the residents’ access to transit facilities and services including walking distance and pedestrian improvements between the workforce housing and transit facilities;

11. Any information necessary to properly describe the alternative equivalent action, if proposed. If an alternative equivalent proposal is requested, the applicant shall provide justification that shows that the alternative equivalent proposal meets the intent and purpose of this chapter; and

12. Any other pertinent information requested by the Community Development Director.

• D. Plan Approval. The Workforce Housing Plan shall be approved by the review authority of the land use and development permit application and included as part of the development project as a condition of approval of the land use and development permit.

• E. Plan Modifications. Any request for a modification to an approved Workforce Housing Plan shall be processed, reviewed, and acted upon in accordance with Section 18.84.070 of the Development Code.

• F. Workforce Housing Agreement. An agreement implementing the provisions of the approved workforce housing plan shall be prepared, approved, and recorded in accordance with Section 18.210.090.

• A. Developer Request. A developer for a development project subject to the requirements of this chapter may request of the review authority a reduction, adjustment, or waiver of the requirements based upon a showing of substantial evidence that there is no economically feasible way to comply with the requirements or that compliance with the requirements will not reasonably achieve the purposes for which the ordinance was enacted in compliance with Chapter 18.212 (Density Bonuses, Concessions, and Incentives). Any decision of the review authority must be supported by findings in the administrative record which articulate the reasons for the granting of the waiver, reduction, or adjustment and the evidence in the administrative record supporting the decision to do so.

• B. Developer Burden. The developer in the request shall set forth in detail the factual and legal basis for the claim of reduction, adjustment, or waiver. The developer shall bear the burden of presenting substantial evidence to support the request including comparable technical information to support the developer’s position.

• C. Timing. To receive an adjustment or waiver, the developer shall submit the request prior to or concurrently with the submittal of the land use and development permit application for the development project. The review authority shall consider and take action on the request prior to or concurrently with taking action on the land use and development permit application for the development project.

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By Right Housing

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– CHAPTER 18.217 BY RIGHT HOUSING

Sections:

18.217.010 – Purpose and Intent

• 18.217.020 – Applicability

18.217.030 – By Right Housing Requirements

18.217.040 – Review Authority and Procedure

• 18.217.050 – Review Process