Inclusionary Housing

Administrative Departments

Growth Management
Renaissance Center, 435 N. Macomb St., Tallahassee, FL 32301 • 850-891-7001 • 7:30am - 4:30pm, Monday - Friday

Community Housing & Human Services
Renaissance Center, 435 N. Macomb St., Tallahassee, FL 32301 • 850-891-6566 • 8:00am - 5:00pm, Monday - Friday

Program Overview
Eligibility Requirements
Information for Builders / Developers
Plan Requirements
Incentives For Provision
Frequently Asked Questions
Inclusionary Housing Ordinances (PDF)
Inclusionary Housing Implementation Procedures (PDF)
Map of Applicable Areas (PDF)

Program Overview

History

• Inclusionary Housing Implementing Ordinance (Ord. No. 04-O-90AA) adopted April 13, 2005 (mandatory compliance October 1, 2005)
• Amended Ordinance (Ord. No. 07-O-07AA) adopted August 20, 2008, City Commission Policy 1103 (Implementation Procedures.

Main Features

• Applies to new developments in specified locations within the City of Tallahassee:
• A minimum of 10% of the housing units in new developments with 50 or more housing units intended for sale and owner-occupancy shall be inclusionary units.
• A variety of development incentives, including a 25% density bonus, design flexibility, and transportation concurrency exemption are available in exchange for providing the inclusionary housing.
• Development incentives are available only when inclusionary housing is provided on site, within the "primary development."
• As an alternative to providing inclusionary housing units, the owner/developer may pay a fee in-lieu to the City of Tallahassee Inclusionary Housing Trust Fund, multifamily rental housing in-lieu or residential lots in-lieu.

Household Eligibility Requirements

History Eligible Households: No household may occupy an inclusionary unit unless the City or its designee has first verified the household's eligibility. Eligibility verification shall include review of documents that demonstrate the prospective renter's or owner's total income and assets, such as income tax returns, W-4, or W-2 tax forms for the previous calendar year, bank statements, court ordered income (alimony and child support), documentation of employment along with pay stubs from their current employer. Eligible households are households composed of residents of the city earning 70 percent – 100 percent of the median family income, adjusted for size, of the Tallahassee Metropolitan Statistical Area (TMSA) based upon the most recently published Census or HUD data. There are also three options for households earning less than 70 percent of the area median family income.

Home resales limited: Owner-occupied housing units are subject to resale restrictions for the 10-year period from the initial date of sale to the eligible inclusionary household. Units sold after 10 years from the date of original purchase may be sold to any person at any price.

Information for Builders / Developers

The City Provides Incentives to Developers in Exchange for Inclusionary Housing

To be eligible for incentives, the development must meet the following standards:

Eligible types of development applications: Applications for site plan, preliminary plat, Planned Unit Development (PUD) rezoning, Development of Regional Impact (DRI) development or substantial deviation, Chapter 163 Development Agreement (DA). applications for developments.

Eligible locations: Within selected census tracts as defined by the Inclusionary Housing Ordinance (map), Critical Planning Area (CPA) and Target Planning Area (TPA) zoning districts, and Developments of Regional Impact (DRIs).

Eligible development mix: No less than 10% and as much as 100% of the total number of residential dwelling units, provided as on-site owner-occupied housing, in the primary development; or,

No less than 15% and as much as 100% of the total number of residential dwelling units, provided as on-site rental housing, in the primary development.

Eligible sales price of owner-occupied inclusionary units: To qualify as inclusionary housing units, the sales price must not exceed $159,378.

Eligible maximum rent of rental inclusionary units: if provided as rental housing, rents shall not exceed the following:

Development Application Submittal Requirements for Inclusionary Housing: To obtain incentives, development applications must comply with the following requirements:

The developer must provide a good faith surety. At the time of the approval of any site plan or preliminary plat for any primary development providing inclusionary housing in exchange for incentives, a bond equivalent to the amount set out in the table below shall be posted by the applicant. The City shall retain the bond money in escrow in an interest-bearing account for a period of no less than three years, or other time period agreed upon by the applicant and the City, or until the City has documented that the inclusionary housing units have been provided. This provision is not applicable for development within Target Planning Areas (TPAs), Critical Planning Areas (CPAs) or Developments of Regional Impacts (DRIs).

Bond value:

• for those developments where the median sales price of housing units is equal to the Maximum Affordable Sales Price (MASP) to 110% of MASP: $10,000 per inclusionary unit;
• for those developments where the median sales price of housing units is greater than 110% of MASP and less than or equal to 175% of MASP: $15,000 per inclusionary unit;
• for those developments where the median sales price of housing units is greater than 175% of MASP and less than or equal to 225% of MASP: $20,000 per inclusionary unit; and,
• for those developments where the median sales price of housing units is greater than 225% of MASP: $25,000 per inclusionary unit.

Provide an informational statement with the application. Applications where inclusionary housing is to be provided shall include a detailed statement of development objectives including whether the inclusionary residential units are intended to be owner occupied or rental units. This statement should be included in the application; either in the cover letter, as a note on a site plan or plat, or in a clearly identified location.

Provide an Inclusionary Housing Plan and an approved Inclusionary Housing Agreement. Site plan or preliminary plat applications where the developer is seeking development incentives in exchange for the voluntary provision of inclusionary housing shall include an Inclusionary Housing Plan and implement an approved Inclusionary Housing Agreement.

Plan Requirements:

• A site plan that includes the location of the inclusionary units (or lots or areas set aside for inclusionary units), setbacks and lot sizes for inclusionary housing units and other proposed development;
• The structure type of inclusionary units (may be a range of types) to be provided;
• The proposed tenure (owner-occupancy or rental) of inclusionary units to be provided;
• The structure size (may be a size range) of the inclusionary units to be provided;
• The mechanisms that will be used to assure that the units remain affordable, per City Commission Policy 1103, such as resale and rental restrictions, and rights of first refusal and other documents;
• Any other information as may be necessary to demonstrate that the development compliance with applicable requirements.

The Inclusionary Housing Agreement/Method of compliance is required to be recorded upon approval: The method of compliance with the inclusionary housing requirements, including, as applicable, the number and location of inclusionary housing units, shall be established within the final development order and incorporated through appropriate annotation on the approved site plan or preliminary plat and in an inclusionary housing letter of agreement, signed by the property owner, developer, and representative of the City, and recorded by the Leon County Clerk of Courts.

Incentives For Provision of Inclusionary Housing

Choice of Housing Type: Inclusionary housing units may be provided as single family, duplex, townhouse units, or cluster development within the RP-1, RP-2, and RP-MH zoning districts. In all other zoning districts, inclusionary housing units may be provided as single family, duplex, triplex, or townhouse units or as units intended for owner occupancy in a condominium, or multifamily residential structure, provided that the height, setbacks, massing and exterior appearance of the inclusionary units is consistent with other residential units within the development in which they are located.

Alleviation of Setback and Lot Size Requirements Internal to the Development: Housing units (both inclusionary and "non-inclusionary") shall not be subject to yard setback requirements, except for yards adjacent to the exterior boundary of the primary development. Housing units (both inclusionary and "non-inclusionary") shall not be subject to minimum lot size requirements, except where lots are located adjacent to property outside of the primary development.

Inclusionary housing units may be provided as single family, duplex, townhouse units, or cluster development within the RP-1, RP-2, and RP-MH zoning districts. In all other zoning districts, inclusionary housing units may be provided as single family, duplex, triplex, or townhouse units or as units intended for owner occupancy in a condominium, or multifamily residential structure, provided that the height, setbacks, massing and exterior appearance of the inclusionary units is consistent with other residential units within the development in which they are located.

Alleviation of Buffering and Screening Requirements Internal to the Development: Inclusionary housing units shall not be subject to buffering and screening requirements for purpose of mitigating incompatibility within the primary development. Where adjacent to property outside of the primary development, inclusionary housing units shall be subject to those buffering and screening requirements as set out in this Code as may be applicable.

Consideration of Reduced Parking in the MMTD: The city encourages reduced parking proposals by the applicant and recommends a minimum of a ten percent reduction for developments ten units and over, for inclusionary housing units, for projects located within the applicable census tracts in the MMTD within one-fourth mile of transit routes. In assessing proposed parking reductions, as an incentive, additional allowances may be considered by the city for site and design (i.e., building placement, setbacks, and facades) during the site plan review process.

Expedited Review The developer of an inclusionary housing development shall be eligible for expedited development review. The developer shall inform the growth management department at the pre-application stage that the development will include inclusionary housing; thereafter, the growth management department shall expedite the review of the application to the fullest extent permitted by law and shall notify other reviewing departments/agencies that the application is required to receive expedited review.

Deviations to Development Standards for Primary Developments Incorporating Inclusionary Housing Deviation(s) to development standards not already addressed by the Design Flexibility incentive, above, may be obtained through demonstration of compliance with the following criteria:

1. The request for deviation shall specify the standard(s) to be deviated, the extent of deviation, and where the deviation will apply (requests for deviations to setbacks should be expressed in terms of linear feet and, requests for deviations to lot sizes should be expressed in square footage; requests may provided on a graphic plan);
2. The deviation shall not result in an increase in gross residential density for the development in excess of the density bonus provided by this section;
3. The deviation shall not result in conditions detrimental to the public's health, safety, or welfare; and,
4. The granting of this deviation shall be consistent with the intent and purpose of this section and the Tallahassee-Leon County Comprehensive Plan.

Transportation Concurrency Exemption: The developer of an inclusionary housing development shall be eligible for expedited development review. The developer shall inform the growth management department at the pre-application stage that the development will include inclusionary housing; thereafter, the growth management department shall expedite the review of the application to the fullest extent permitted by law and shall notify other reviewing departments/agencies that the application is required to receive expedited review.

Additional incentives: Additional incentives inclusionary housing may be requested. The City Commission may grant additional incentives through approval of a development agreement pursuant to Section 163.3220, Florida Statutes ("163 Development Agreement") or Planned Unit Development Concept Plan.

Frequently Asked Questions

Where does the inclusionary housing strategy apply? Within selected portions of the City of Tallahassee (PDF) and also to any new development of 50 or more housing units within large developments known as Developments of Regional Impact (DRIs) or located within Critical Planning Area or Target Planning Area zoning districts.

Is inclusionary housing required in new development? The City of Tallahassee requires new housing developments with 50 or more housing units located within Critical Planning Area or Target Planning Area zoning districts to provide inclusionary housing or meet alternative compliance requirements. Voluntary compliance is also available for developments with less than 50 housing units located in those same designated areas.

Why would a developer be interested in voluntary compliance? The inclusionary housing ordinance provides several significant incentives for any developer providing inclusionary housing within their development, including the ability to increase density by 25% above what would be allowed by zoning, the ability to construct different types and arrangements of housing units (such as combining two smaller units to look like one large single-family home), the ability to reduce the minimum lot size, exempting inclusionary units from transportation concurrency requirements, as well other significant incentives.

Are inclusionary housing units intended for owner-occupancy or rent? Although the main focus on the inclusionary housing strategy is to provide opportunities for home ownership, there is an option that inclusionary housing may be provide as rental housing. When provided as rental housing, the rental rates are tied to the United States Department of Housing and Urban Developments established rates for rent under the HOME program. Occupants of owner-occupied inclusionary housing units are not allowed to rent the units to other persons during the 10-year period of sales restrictions.

How much inclusionary housing is required in a development? The number of inclusionary housing units, if provided as owner-occupied units, must be equal to at least 10% of the number of owner-occupied housing units within their development; if the inclusionary units are provided as rental housing, than the number must be equal to at least 15% of the number of owner-occupied housing units within the development. The developer must also provide this quantity of inclusionary housing to qualify for incentives when provided voluntarily.

Do the additional housing units provided through the density bonus need to be inclusionary housing units? That's encouraged, but it is not a requirement.

What is the price of an inclusionary housing unit? The maximum price is set at $159,378. The price will be reviewed annually or more frequently to determine if adjustment is necessary.

Can developers pay a fee in-lieu of building the inclusionary housing in their development? Developers subject to the inclusionary housing ordinance based on their development size and location can elect not to provide inclusionary housing and instead pay a fee of $10,000-$25,000 for every inclusionary housing unit that they otherwise would have to provide. The fee is adjusted based upon the sales price of the housing in the development; the higher the sales price, the greater the fee. All inclusionary housing fees collected by the City will be required to be deposited in an inclusionary housing trust fund. The trust fund monies may only be used to support the development or purchase of inclusionary housing units. The ordinance also provides other alternative methods for compliance (see Section 9-245, c, d, and f-h of the ordinance for more information). This provision is not applicable for development within Target Planning Areas (TPAs), Critical Planning Areas (CPAs) or Developments of Regional Impacts (DRIs).

Do the inclusionary housing requirements apply to existing developments? No. However, if existing developments expand by adding 50 or more owner-occupied housing units, the ordinance will generally apply.

Do other communities have inclusionary housing requirements? Yes. Although not common yet in Florida, many communities in the Washington, D.C. metro area, California, Colorado, North Carolina, the Northeastern U.S., and Illinois have inclusionary housing programs and strategies. In some locales, the programs are referred to as Affordable Dwelling Unit or Moderately Priced Dwelling Unit programs. Many of these programs have similar features and common elements although very few are exactly alike. The inclusionary housing strategy for the City of Tallahassee was developed based to a significant extent upon the practical experience of these other communities.

Will developers or the government have to make-up the price difference for inclusionary housing units? No. It is anticipated that the incentives provided in the ordinance will provide the developer with sufficient latitude and flexibility to: a) build a greater number of housing units, thereby off-setting any costs; b) have more flexibility to arrange both inclusionary and market-rate housing on their site, to be able to accommodate more units; and, c) be able to creatively combine housing construction types so that smaller (and therefore, less expensive to construct) units can be provided and aesthetic compatibility within the development maintained.

Can developers arrange with a "second party" developer to build their required inclusionary housing development "off-site?" Yes, in most instances. The option of providing inclusionary housing at an off-site location isn't available for developments within TPA or CPA zoning districts, nor within DRIs. It is available for other development, so long as the inclusionary housing units are provided within the same census tract or, in a contiguous selected census tract (the green areas on the map) as the development generating the requirement, and so long as the off-site location is within the urban service area.

Potentially, a developer particularly suited to building workforce housing developments could build the inclusionary housing required of one or more developers/developments at an off-site location. The incentives are available at the off-site inclusionary housing development location, and the other developments could be built at 100% market-rate units.

To facilitate this type of arrangement, it will be necessary for the both the market-rate and inclusionary housing development orders (for the primary and off-site development) to reflect the method the compliance and be incorporated through annotation in an inclusionary housing letter of agreement, signed by all parties, and recorded by the Leon County Clerk of Courts.

The inclusionary housing ordinance allows developers to comply by providing inclusionary housing off-site; are developers still entitled to the incentives if the inclusionary housing is provided off-site? They are entitled; however, incentives are not fully transferable, in that, while requirements can be met off-site, the incentives are eligible for use only in the off-site development (that is, the development actually providing the inclusionary housing).

The inclusionary housing ordinance allows developers to comply by providing rental inclusionary housing; are developers still entitled to the incentives if the inclusionary housing is provided as rental housing? Yes. Incentives are would be applicable for on-site rental inclusionary housing development or the in the off-site development where the rental inclusionary housing is provided.

The inclusionary housing ordinance allows developers to comply by providing the City with lots in the development (that can later be developed by others for inclusionary housing); are developers still entitled to the incentives if lots are provided? Incentives are not provided if the developer complies through provision of lots.

The inclusionary housing ordinance allows developers to comply by paying a fee in-lieu of providing inclusionary housing; are developers still entitled to the incentives if the fee in-lieu is provided? Incentives are not provided if the developer complies through payment of a fee in-lieu.

The inclusionary housing ordinance provides developers with an incentive of exemption from transportation concurrency management requirements in exchange for providing inclusionary housing. What is the maximum percentage of housing units in a development that may be exempted from transportation concurrency management requirements through the application of this incentive? All of the required inclusionary housing (that is, 10% of the total number of units in the development), plus any additional inclusionary housing provided as a result of the use of the density bonus (that is, up to an additional 25% of the total number of dwelling units in the development); the total maximum percentage of units that could be exempt is 35%.