CITY COUNCIL AGENDA Members Nikuyah Walker, Mayor July 27, 2021 Sena Magill, Vice Mayor Heather D. Hill Michael K. Payne J. Lloyd Snook, III Kyna Thomas, Clerk 3:00 PM WORK SESSION Register at www.charlottesville.gov/zoom. Virtual/electronic meeting in accordance with a local ordinance amended and re-enacted April 19, 2021, to ensure continuity of government and prevent the spread of disease during a declared State of Emergency. Individuals with disabilities who require assistance or special arrangements to participate in the public meeting may call the ADA Coordinator at (434) 970-3182 or submit a request via email to ada@charlottesville.gov. The City of Charlottesville requests that you provide a 48 hour notice so that proper arrangements may be made. CALL TO ORDER ROLL CALL ACTION ITEM 1. Resolution: Appropriating funds for funding transfer for Charlottesville Affordable Housing Fund (CAHF) Program Review/Redesign and Inclusionary Zoning Program Design - $165,000 (2nd reading) REPORTS 2. Report: FY 2023 Budget Process Updates 3. Report: Strategic Planning Update PUBLIC COMMENT Page 1 of 5 CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: July 19, 2021 Action Required: Adoption of Resolution to Appropriate Funds Presenter: Alex Ikefuna, NDS Director Staff Contacts: Brenda Kelley, Redevelopment Manager Alex Ikefuna, Director, NDS Title: Resolution Appropriating Funds for the Resources Required for the Charlottesville Affordable Housing Fund (CAHF) Program Review/Redesign and Inclusionary Zoning Program Design - $165,000 Background: On February 4, 2019, staff presented and the City Council approved funding to complete comprehensive plan update, the Affordable Housing Strategy and wholesale rewrite of the Zoning Ordinance. In the fall of 2019, RHI was selected as the consultant to assist the City in undertaking the project. However, the original Scope of Work and contract agreement did not include CAHF Program Review and Redesign, and Inclusionary Zoning Design. Project Updates Affordable Housing Strategy: A draft Affordable Housing Chapter has been completed, reviewed by the Planning Commission and endorsed by the City Council. This document would inform the housing chapter of the Comprehensive Plan as well as the re-write of the Zoning Ordinance. Comprehensive Plan Update: An updated draft of the Comprehensive and Future Land Use Map are completed and currently undergoing public review process. The draft plan includes the following chapters: • Community engagement and collaboration • Land Use, Urban Form, and Historic & Cultural Preservation • Housing • Economic Prosperity and Opportunity • Environment, Climate and Food Access • Transportation • Community Facilities and Services Discussion: To ensure the successful alignment of the affordable housing programs with policy goals and the recommendations of the Affordable Housing Plan, staff and Council discussed the need to conduct Page 2 of 5 Program Review and Redesign of the Charlottesville Affordable Housing Fund and Inclusionary Zoning Program Design. CAHF Program Review and Redesign: The CAHF program review would include evaluation of the past performance of the housing programs, past program agreements, selection and contracting processes, development of new approaches as needed, grant terms, program criteria, and evaluation metrics the City can use in the future. Inclusionary Zoning Program Design: This would include evaluation of incentives designed to spur creation of affordable housing: zoning incentives such as bonus density, tax abatements, parking requirements and streamlined development approvals. This component of the Scope of Work would result in the development of toolkit of incentives to be used to offset the impact of providing affordable housing to make new, inclusive development feasible. The proposed Program Review and Redesign of the Charlottesville Affordable Housing Fund and Inclusionary Zoning Program Design project would cost $165,000. The funding for this initiative will come from two sources: $75,000 would be used from previously appropriated funding in the FY22 CAHF Capital Improvement Project account and $90,000 will be funded through the usage of the CDBG Administration fund account. Alignment with City Council’s Vision and Strategic Plan: Since this request is associated with the implementation of the Comprehensive Plan and Affordable Housing Plan, it supports all aspects of City Council Vision in one way or another. It contributes to the following 2018-2020 Strategic Plan Goals: Goal 1.3 to increase affordable housing options, 1.5 to intentionally address issues of race and equity, Goal 2: a healthy and safe city, Goal 3: a beautiful and sustainable natural and build environment, Goal 5: a strong, creative and diversify economy, and Goal 5.4 to foster effective community engagement. Community Engagement: There have been several community engagement meetings and activities conducted as part of the comprehensive plan update and affordable housing planning process. Budgetary Impact: The proposed project would cost $165,000. These funds would be transferred for this purpose from previously appropriated funding in the FY22 CAHF Capital Improvement Project account ($75,000), with the remainder being expended from the CDBG Administration fund account ($90,000). Recommendation: Staff recommends the following actions: • Transfer $75,000 from the FY22 CAHF to this project account. • Approve the usage of $90,000 from CDBG Administration funds. Page 3 of 5 Alternatives: The City Council may elect not to take the staff recommendations which would affect implementation of the affordable housing plan. Attachments: Resolution Page 4 of 5 RESOLUTION APPROPRIATING FUNDS FOR Funding Transfer for Charlottesville Affordable Housing Fund (CAHF) Program Review/Redesign and Inclusionary Zoning Program Design - $165,000 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $75,000 from previously appropriated 2022 CIP CAHF fund be allocated, for the completion of the Charlottesville Affordable Housing Fund (CAHF) Program Review/Redesign and Inclusionary Zoning Program Design and is hereby transferred in the following manner: Transfer From: $75,000 Fund: 426 WBS: CP-084 G/L: 599999 Transfer To $75,000 Fund: 426 WBS: P-00935 G/L Account: 599999 BE IT FURTHER RESOLVED by the City Council of the City of Charlottesville, Virginia that the sum of $90,000 from previously appropriated CDBG Administrative funds be approved for the purpose of the completion of the Charlottesville Affordable Housing Fund (CAHF) Program Review/Redesign and Inclusionary Zoning Program Design. 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