070 of 1995 - Enacting 18.67: Mitigation of Residential Housing Loss from Rezoning • 0 95-1
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0 95-30
SALT LAKE CITY ORDINANCE
No. 70 of 1995
(Housing Mitigation)
WHEREAS, commercial expansion into established residential
neighbors has materially reduced the stock of affordable housing
in the City, particularly in the Central City and Capitol Hill
neighborhoods which have lost nearly 30, 000 units over the past
30 years; and
WHEREAS, the loss of housing has a significant deleterious
impact on the vitality and economic health of the City; and
WHEREAS, the City has experienced a decline of population of
about 10 , 000 persons for each decade since 1960, despite Salt
Lake County' s growth from approximately 383, 000 to 726, 000
persons between the years 1960 and 1990; and
WHEREAS, despite growth in the gross number of housing units
existing within the City, demographic changes in the size of
household members has resulted in a shortage of affordable
housing, particularly near the University of Utah, in the Central
City area, and in the Capitol Hills neighborhoods; and
WHEREAS, the forces driving the demolition of existing
housing units include : (a) commercial and institutional
enterprises ' expansion in areas near or within residential
neighborhoods; and (b) land speculators ' assemblage of land for
future commercial development or exploitation; and
WHEREAS, housing stock that has been demolished, due to such
economic and growth forces, has not been replaced; and
WHEREAS, the City recently adopted a new zoning ordinance
that is intended to align regulations and master planning
policies in order to substantially reduce the need to approve
nonresidential parking lots in residential zones or to rezone
residential properties containing dwelling units to
nonresidential zoning classifications; and
WHEREAS, City changes in zoning, to permit commercial uses
that involved the demolition of existing housing stock, has
almost always resulted in substantial increases in economic value
to the landowner/developer; and
WHEREAS, sometimes existing housing may be allowed to
deteriorate, because profit incentives exist in the form of
expense avoidance and accelerating or forcing commercialization
to remedy the contrived blight; and
WHEREAS, the City has commissioned and accepted a study from
Wilkstrom Economic and Planning Consultants, Inc . , which study
analyzes the causes and potential mitigation options regarding
the loss of affordable housing; and
WHEREAS, the City Council is of the opinion that housing
loss mitigation should be an essential precondition to future
legislative actions that would rezone land that would result in
the demolition of existing housing stock, in order to offset the
resulting harm to the City; and
WHEREAS, any such mitigation must lawfully accommodate
constitutionally protected property rights;
NOW, THEREFORE, the Municipal Council of Salt Lake City
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adopts the following Housing Mitigation Ordinance .
AN ORDINANCE ENACTING CHAPTER 18 . 97 OF THE SALT LAKE CITY
CODE, RELATING TO MITIGATION OF RESIDENTIAL HOUSING LOSS FROM
REZONING.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1 . That Chapter 21 . 94 of the Salt Lake City Code,
relating to housing loss mitigation, be, and the same hereby is,
enacted as follows :
18 .97 . 010 Purpose.
The City has experienced a loss of important affordable
housing stock, particularly in its Central City and Capitol Hill
areas due to commercial expansion. It is the objective of the
City to mitigate the adverse impacts of such losses, when zoning
changes are sought to accommodate an expansion of commercial
uses, with due consideration for vested or protected property
rights .
18 .97 . 020 Housing Mitigation Condition Precedent to Rezoning or
Permits for Parking Lots, in Areas Containing
Residential Units.
A. Housing Mitigation Plan. Any petition for a
conditional use permit to authorize or expand vehicle parking in
residential zones and any petition for a zoning change that would
permit a non-residential use of land, that includes within its
boundaries residential dwelling units, may not be approved until
a Housing Mitigation Plan shall have been approved by the City.
The Housing Mitigation Plan shall be proposed and submitted to
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the City' s Planning Director and the Director of Community and
Economic Development by the petitioner not less than 20 days
prior to final action by the City on such a petition and be
accompanied by a Housing Impact Statement .
B. Housing Impact Statement. The Housing Impact Statement
shall : (a) identify the essential adverse impacts on the
residential character of the area subject of the petition; (b)
identify by address any dwelling units targeted for demolition,
following the granting of the petition; (c) separately for each
dwelling unit targeted for demolition, state its current fair
market value, if that unit were in a reasonable state of repair
and met all applicable building, fire and health codes; (d) state
the number of square feet of land zoned for residential use that
would be rezoned or conditionally permitted to be used for
purposes sought in the Petition, other than residential housing
and appurtenant uses; and (e) specify a mitigation plan to
address the loss of residential zoned land, residential units or
residential character.
18 . 97 . 030 Options for Mitigating Residential Loss.
Petitioners subject of this chapter may satisfy the need for
mitigation of any residential housing unit losses by any one of
the following three methods :
A. Replacement housing. The petitioner may agree, in a
legal form satisfactory to the City Attorney, to construct the
same number of/residential dwelling units proposed for
demolition, within: (1) the City Municipal Council district in
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which the land subject of the petition is located; or (2) an
adjoining council district, if the mitigation site is within a
one(1) mile radius of the demolition site. Any such agreement
shall include adequate security to guarantee completion, within
two years of the granting of any rezoning or conditional use
permit.
B. Fee Based on Difference Between Housing Value and
Replacement Cost. The petitioner may pay to the City Housing
Trust Fund the difference between the fair market value of the
housing units planned to be eliminated or demolished and the
replacement cost of building new units of similar square footage
and meeting all existing building, fire and other applicable law,
excluding land values.
C. Fee, Where Deteriorated Housing Exists, Not Caused by
Deliberate Indifference of Landowner.
(1) Request by Petitioner for Flat Fee Consideration.
In the event that a residential dwelling unit is targeted or
proposed for demolition is in a deteriorated state from
natural causes, such as fire, earthquake or aged
obsolescence and not occasioned by the deliberate acts or
omissions to act on the part of the petitioner or his
predecessors in interest, which reduces a dwelling unit's
fair market value or habitability as a residential dwelling
unit, the petitioner may request an exemption from the above
two methods of mitigation from the Director of the City's
Department of Community of Economic Development, as provided
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below.
(2) Required Facts of Natural Deterioration; Increase
Fair Market Value of Units to be Demolished. The petitioner
may submit to the Director of the City's Department of
Community and Economic Development every fact known to
support the proposition that the residential dwelling units
were not purposely allowed to deteriorate by lack of
reasonable maintenance, ordinary and prudent repairs or
other acts or omissions to act, the value of the units
targeted or proposed for demolition may be increased to the
fair market value that the units would have, if each unit
was in a state of habitability and minimally meeting
applicable building codes and other applicable law,
excluding land value. This enhanced value will then be
applied in thus computing any housing mitigation payment
provided in subsection "B", above.
(3) Flat Fee Mitigation Payment. In the event that
the petitioner actually and reasonably demonstrates to the
City's Director of Community and Economic Development that
the costs of calculating and analyzing the various methods
of mitigation are unreasonably excessive in relationship to
the rough estimated costs of constitutionally permitted
mitigation, the Department Director may recommend to the
City Council that a flat rate be paid by the petitioner to
the City's Housing Trust Fund a sum not in excess of $3,000
per dwelling unit to be demolished. The $3,000 flat fee
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shall be adjusted for inflation as of January 1 of each
calendar year following the adoption of the ordinance, based
on the Consumer Price Index for the previous 12 months, or 3
percent, whichever result is less.
16.97.040 Housing Mitigation Justification to Council.
A. Report to City Before Rezoning Hearings. The Director
of the Department of Community and Economic Development shall
prepare a report justifying the method of housing mitigation
recommended by the Director, including the factual basis upon
which it is premised and a factually based justification for the
recommendation. This report will be submitted to the Planning
and Zoning Commission in sufficient time for its deliberation
concerning the advisability of effectuating the petitioner's
request for a zoning change. The Petitioner may, likewise,
submit its proposal and the factual and legal justification for
mitigation, if any, or why the Director's recommendations are
appropriate or should be modified. The Commission will include
in its evaluation an evaluation of the adequacy of the housing
loss mitigation plan, proposed by the petitioner and that
recommended by Director of the Department of Community and
Economic Development.
B. Report to Planning Director on Conditional Use Permit
Petitions. In the event of a conditional use permit, said report
will be submitted to the City's Planning Director. The report
will be duly evaluated, considered and included in the decision
regarding any conditional use permit. The Planning Director will
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memorialize, in writing, the factual basis supporting any
decision dealing with the housing mitigation component of any
such conditional use permit and include this finding and
evaluation in the file for due consideration should there be an
appeal relating thereto.
18.97.050 Nature and Review of Alleged Unconstitutional or
Illegal Housing Loss Mitigation.
Should any petitioner or other person, corporation or entity
claim that this Chapter 97 or any application of it is illegal,
unconstitutional or may constitute or effectuate an
unconstitutional taking of property without appropriate
compensation, either per se or as applied, the City shall be
notified as soon as practicable and the provisions of Chapter 66,
Title 2 of the City Code complied with, regarding each such
claim.
SECTION 2. This Ordinance shall become effective on its
first publication.
Passed by the City Council of Salt Lake City, Utah, this
19th day of September , 1995
CHA PERSO
ATTEST:
C44
CITY R CORDE I Gh e Dept-Ill
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Transmitted to the Mayor on September 20, 1995
Mayor's Action: XXX Approve etoed
242
MAYOR
ATTEST:
CITY RECORDER/Cihtec Oepu+j
ter
r�'�7RAfc
Bill 70 of 1995.
Published September 27, 1995.
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