Wednesday, October 13, 2010

Hailey repeals affordable housing laws

City attorney says Sweetwater requirements will stand


By TONY EVANS
Express Staff Writer

The Hailey City Council voted unanimously Monday to repeal a five-year-old affordable housing requirement for new subdivisions.

The city still has the authority to require that affordable housing units be built as part of a planned-unit development or annexation.

"It's regrettable that the city has to repeal a tool that is used nationwide to achieve community housing, but unfortunately we live in Idaho," said Blaine County Housing Authority Executive Administrator Kathy Grotto, at a City Council meeting on Monday following the decision.

The community-housing requirements, added to the city's subdivision ordinance in 2005, called for 20 percent of housing units built in developments with five or more units to be sold as deed-restricted community housing. Developers were given a 20 percent increase in density allowances to offset the requirement.

The city has 13 community-housing units completed under the affordable housing requirement. Seven are owned and six are being rented until they sell. Eight are income-restricted. Five are workforce deed-restricted and limited to the local workforce.

City Attorney Ned Williamson initiated the repeal several weeks ago because several Idaho district courts have ruled that similar "inclusionary" community-housing requirements, as part of a subdivision ordinance, are illegal.

Mayor Rick Davis said the city had "no choice" but to repeal the requirements due to the threat of litigation.

J. Kevin Adams, developer of the Sweetwater housing complex in Woodside, has questioned the legality of the affordable housing requirements since his development ran into financial trouble in 2008. Sweetwater is a partly built, 421-unit, $200 million housing development on 20 acres of land straddling Countryside Boulevard. Only 49 of the units have been built.

Adams sued the city in September to reclaim property on River Street that he had given the city several years ago in lieu of building on-site affordable housing units.

Williamson advised the city last month to put off signing a 99-year lease with ARCH Community Housing Trust for use of the River Street site for a senior housing project until the lawsuit is resolved. The city was planning to give the land to ARCH for $1 per year.

Williamson said Monday that the repeal of the city's affordable housing law would not affect Adams' obligations to provide the River Street lot and to build affordable units at Sweetwater.

"This definitely does not affect the Sweetwater agreement," he said.

ARCH Community Housing Trust Executive Director Michelle Griffith told the council that despite falling home prices, the need for affordable, deed-restricted housing still exists. She encouraged the council to continue to match grants, waive fees and seek other ways to create affordable housing.

She said national standards for home affordability require that a home cost no more than three times the annual income of the home-buying family.

"That's still 58 percent more than families here can afford," she said.

In other Hailey news:

( Sidewalk design plans for River Street, based on workshops attended last week by 30 people, will be presented to the City Council on Nov. 8.

( The council voted to not sign a memorandum of understanding with the Friedman Memorial Airport Authority over payment for master planning of the airport site, because the MOU did not contain language outlining how to settle disputes between the city and county, should they arise.

Tony Evans: tevans@mtexpress.com




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