AO 2020-103Incentivizing Housing inTransit-Supportive Development Corridors

Overview of the Proposed New Code´ 12.70.010 Authorization

´ 12.70.015 Consistency and Exclusions

´ 12.70.020 Applications

´ 12.70.030 Provisional Approval

´ 12.70.040 Final Approval

´ 12.70.050 Termination of Exemption

´ 12.70.060 Appeals

´ 12.70.070 Annual Reports & Assembly Notification

´ 12.70.900 Definitions

´ 14.60.030 Fine Schedule

How It Works, in brief

´ Developer submits application´ CFO reviews; provisional approval´ Developer builds; CO issued´ CFO reviews; final approval´ Abatement begins 1st calendar year after CO´ Owner submits annual report to CFO´ CFO submits annual reports to Assembly

Requirements: Multi-Family (>20 units)

Requirements: Located in TSDC

C St

reet

Lore Road76th Avenue

Sout

hpor

t Driv

e

Fireweed Lane

Loop R

oad

Post Ro

ad

ArcticB oulev ard

100th Avenue

Lake

Otis

Par

kway

Klatt Road

Spenar

d Road

Birc

h Ro

ad

Turp

in S

treet

Dowling Road

Brag

aw S

treet

Benson Boulevard

DeBarr Road

Baxt

er R

oad

36th Avenue

Nor

thw

ood

Stre

et

Wisc

onsin

Stre

et

Providence Drive

E St

reet

6th Avenue4th Avenue

3rd Avenue

Reev

eBo

ulev

ard

ASt

reet

Old

Sew

ard

Hig

hway

Elm

ore

Road

J ew e

lLakeRo

ad

15th Avenue

Seward

Highway

Dimond Boulevard

North

ern Lights Boulevard

O'Malley Road

Tudor Road

Boni

face

Par

kway

Raspberr y Road

International Airport Road

Min

neso

ta D

rive

Abbott Road

Glenn Highway

Elm

ore

Road

LSt

reet

Mul

doon

Roa

d

5th Avenue

Gam

bellStreet

Ingr

a St

reet

HillsideD

rive

Our

Roa

d

Klev

in S

treet

P

ioneer D r ive

4th Avenue

Viking Drive

H illcre st Driv e

Fore

stPa

rkDr

i ve

Lau rel Street

Che c

kma t

eDr

ive

48th Avenue

92nd Avenue

100th Avenue

20th Avenue

Arle

ne S

treet

Blac

kber

ry S

treet

Alatna Av enue

Wes

leya

nDriv

e

36th Avenue

Duben Avenue

68th Avenue

Karlu

k St

reet

Main

TreeD

riveInd

epen

denc

e Dri v

e

72nd Avenue

Patte

rson

Stre

et

Ambe

r BayLoop

Boundary Avenue

A St

reet

Strawberry Road

Peck Avenue

42nd Avenue

Grover Dri ve

76th Avenue

13th Avenue

Donna

Drive

Glac

ierS

treet

Pine

Stre

et

Carav elle Drive

Bayshore Drive

11th Avenue

Spru

ce S

treet

16th Avenue

LoneTree

Dri ve

B luffDrive

84th Avenue

8th Avenue

7th Avenue

South Tug

Road

9th Avenue

6th Avenue

Beiti

nger

Driv

e

Hom

e rDr

ive

Ele c tr on Drive

Jade

Stre

et

StanfordDrive

27th Avenue

Old Klatt Road

Un ivers

it yD

rive

Otte

r Stre

et

Denali Street

Loussac Drive

Cang

e St

reet

Tudor Centre

Drive

Knik Ave nue

Mer

rillField Drive

Pros

pect

Drive

Jupiter Drive

Bray

ton

Drive

Parsons AvenueThompson Avenue

Ka

silof Boulevard

64th Avenue

L akesho

re Drive

Alu

mniDrive

10th Avenue

53rd Avenue

30th Avenue

19th Ave nue

104th Avenue

Campbell A irstrip Road

Jero

me

Stre

et

50th Avenue

Tr a ppersTrailRoad

Whitney Road

Schu

s sDr

ive

1st Avenue

Hum

phre

y Dr

ive

Slalom

Drive

Starv

iewDriv

e

Science C

enter

Drive

H el g

elie

nL

oop

Popcary

Dri ve

JOINT BASE ELMENDORF-RICHARDSON

Existing Transit-Supportive Development Corridors

Anchorage 2040 Land Use Plan

Municipality of Anchorage

Action 2-1: Tax Abatement Tool

0 0.5 1Miles

N

#

GreenwaySupportedDevelopment

1/4 Mile Buffers fromTransit-SupportiveDevelopment Corridors(TSDC)

People Mover Bus Routes(by peak frequency)

15 mins

15-30 mins

30 mins

60 mins

Date: 1/13/2020

Requirements: 40% Affordable/Workforce

Moderate to Middle IncomesAf

ford

able

/ Lo

w In

com

es Upper-Middle Incom

es

AchievableLocal Housing BridgeFunding + Types of Housing at

Various Income Levels

Multi-FamilyResidentialDevelopment

WHY?

Transit-Supportive Development Corridors

WHY?

Transit-SupportiveDevelopmentCorridors

C St

reet

15th Avenue

Sout

hpor

t Driv

e

Fireweed Lane

Loop R

oad

Post Ro

ad

ArcticB oulev ard

100th Avenue

Lake

Otis

Par

kway

Klatt Road

Spenar

d Road

Birc

h Ro

ad

Turp

in S

treet

Dowling Road

Brag

aw S

treet

DeBarr Road

36th Avenue

Baxt

er R

oad

Nor

thw

ood

Stre

et

Wisc

onsin

Stre

et

Providence Drive

Lore Road76th Avenue

Moun

tainView Drive

4th Avenue 3rd AvenueO

ld S

ewar

d H

ighw

ay

Elm

ore

Road

J ew e

lLakeRo

ad

Dimond Boulevard

O'Malley Road

Tudor RoadBo

nifa

ce P

arkw

ay

Raspberr y Road

International Airport Road

Min

neso

ta D

rive

Abbott Road

Seward

Highway

Glenn Hi

ghway

Elm

ore

Road

Mul

doon

Roa

d

5th Avenue

Gam

bell

Stre

et

No

rthern Lights Boulevard

Ingr

a St

reet

HillsideD

rive

Our

Roa

d

Klev

in S

treet

P

ioneer D r ive

4th Avenue

Viking Drive

H illcre st Driv e

Fore

stPa

rkDr

i ve

Che c

kma t

eDr

ive

48th Avenue

92nd Avenue

100th Avenue

20th Avenue

Arlen

e St

reet

Blac

kber

ry S

treet

Alatna Av enue

Wes

leya

nDriv

e

36th Avenue

Duben Avenue

68th Avenue

Karlu

k St

reet

Main

TreeD

riveInd

epen

denc

e Dri v

e

72nd Avenue

Patte

rson

Stre

et

Ambe

r BayLoop

Boundary Avenue

A St

reet

Strawberry Road

Peck Avenue

42nd Avenue

Grover Dri ve

76th Avenue

13th Avenue

Donna

Drive

Glac

ierS

treet

Pine

Stre

et

Carav elle Drive

Bayshore Drive

11th Avenue

Spru

ce S

treet

16th Avenue

LoneTree

Dri ve

B luffDrive

84th Avenue

8th Avenue

7th Avenue

South Tug

Road

9th Avenue

6th Avenue

Beiti

nger

Driv

e

Hom

e rDr

ive

Ele c tr on Drive

Jade

Stre

et

StanfordDrive

27th Avenue

Old Klatt Road

Un iversit y

Driv

e

Otte

r Stre

et

Dena

li Stre

et

Loussac Drive

Cang

e St

reet

Tudor Centre

Drive

Knik Ave nue

Merrill Field D rive

Pros

pect

Drive

Jupiter Drive

Bray

ton

Drive

Parsons AvenueThompson Avenue

Ka

silof Boulevard

64th Avenue

L akesho

re Drive

Alu

mniDrive

10th Avenue

53rd Avenue

30th Avenue

19th Ave nue

104th Avenue

40th Avenue

Campbell Ai rstrip Road

Jero

me

Stre

et

50th Avenue

Tr a ppersTrailRoad

Whitney Road

Schu

s sDr

ive

1st Avenue

Hum

phre

y Dr

ive

Slalom

Drive

Starv

iewDriv

e

Science C

enter

Drive

H el g

elie

nL

oop

Popcary

Dri ve

JOINT BASE ELMENDORF-RICHARDSON

Existing Multifamily Zoningwithin TSDCs

Anchorage 2040 Land Use Plan

Municipality of Anchorage

Action 2-1: Tax Abatement Tool

0 0.5 1Miles

N

#

GreenwaySupportedDevelopment

Transit SupportiveDevelopment Corridor(TSDC)

People Mover Bus Routes(by peak frequency)

15

15-30

30

60

Multifamily Zoning(inside TSDCs)

Multifamily Zoning(outside TSDCs)

C St

reet

15th Avenue

Sout

hpor

t Driv

e

Fireweed Lane

Loop R

oad

Post Ro

ad

ArcticB oulev ard

100th Avenue

Lake

Otis

Par

kway

Klatt Road

Spenar

d Road

Birc

h Ro

ad

Turp

in S

treet

Dowling Road

Brag

aw S

treet

DeBarr Road

36th Avenue

Baxt

er R

oad

Nor

thw

ood

Stre

et

Wisc

onsin

Stre

et

Providence Drive

Lore Road76th Avenue

Moun

tainView Drive

4th Avenue 3rd Avenue

Old

Sew

ard

Hig

hway

Elm

ore

Road

J ew e

lLakeRo

ad

Dimond Boulevard

O'Malley Road

Tudor Road

Boni

face

Par

kway

Raspberr y Road

International Airport Road

Min

neso

ta D

rive

Abbott Road

Seward

Highway

Glenn Hi

ghway

Elm

ore

Road

Mul

doon

Roa

d

5th Avenue

Gam

bell

Stre

et

No

rthern Lights Boulevard

Ingr

a St

reet

HillsideD

rive

Our

Roa

d

Klev

in S

treet

P

ioneer D r ive

4th Avenue

Viking Drive

H illcre st Driv e

Fore

stPa

rkDr

i ve

Che c

kma t

eDr

ive

48th Avenue

92nd Avenue

100th Avenue

20th Avenue

Arlen

e St

reet

Blac

kber

ry S

treet

Alatna Av enue

Wes

leya

nDriv

e

36th Avenue

Duben Avenue

68th Avenue

Karlu

k St

reet

Main

TreeD

riveInd

epen

denc

e Dri v

e

72nd Avenue

Patte

rson

Stre

et

Ambe

r BayLoop

Boundary Avenue

A St

reet

Strawberry Road

Peck Avenue

42nd Avenue

Grover Dri ve

76th Avenue

13th Avenue

Donna

Drive

Glac

ierS

treet

Pine

Stre

et

Carav elle Drive

Bayshore Drive

11th Avenue

Spru

ce S

treet

16th Avenue

LoneTree

Dri ve

B luffDrive

84th Avenue

8th Avenue

7th Avenue

South Tug

Road

9th Avenue

6th Avenue

Beiti

nger

Driv

e

Hom

e rDr

ive

Ele c tr on Drive

Jade

Stre

et

StanfordDrive

27th Avenue

Old Klatt Road

Un ivers

it yD

rive

Otte

r Stre

et

Dena

li Stre

et

Loussac Drive

Cang

e St

reet

Tudor Centre

Drive

Knik Ave nue

Merrill Field D rive

Pros

pect

Drive

Jupiter Drive

Bray

ton

Drive

Parsons AvenueThompson Avenue

Ka

silof Boulevard

64th Avenue

L akesho

re DriveAlu

mniDrive

10th Avenue

53rd Avenue

30th Avenue

19th Ave nue

104th Avenue

40th Avenue

Campbell Ai rstrip Road

Jero

me

Stre

et50th Avenue

Tr a ppersTrailRoad

Whitney Road

Schu

s sDr

ive

1st AvenueHu

mph

rey

Drive

Slalom

Drive

Starv

iewDriv

e

Science C

enterDr

ive

H el g

elie

nL

oop

Popcary

Dri ve

JOINT BASE ELMENDORF-RICHARDSON

Existing Multifamily Zoningwithin TSDCs

Anchorage 2040 Land Use Plan

Municipality of Anchorage

Action 2-1: Tax Abatement Tool

0 0.5 1Miles

N

#

GreenwaySupportedDevelopment

Transit SupportiveDevelopment Corridor(TSDC)

People Mover Bus Routes(by peak frequency)

15

15-30

30

60

Multifamily Zoning(inside TSDCs)

Multifamily Zoning(outside TSDCs)

40%Affordable orWorkforceHousing

WHY?

More Affordable Housing Needed

k ANCHORAGECHM1BER

111 1 l.U)t .\llKl. t.

2019 Advocacy Survey Condensed Results

1. Rank, in order of priority, the top five factors that negatively affect you workforce:

2019

2018

An..,;v.·ered: 53 Skipped: 2

Affordable housing

Local crime

Homelessness

Cost of daycare

Lack of reliable mass transit

Cost of living

Cost of Health Insurance

Municipal property taxes

Access to higher education, training, certification

Workforce issues related to marijuana legalization

1 2

1

---------

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-- - --

1

1------1 ir- -:--· . . , ·c

I I I,..- ---

0 3 4 5 6

3 4

Cost of health Affordable housing Local crime Cost of living insurance Cost of health Local crime Affordable housing Cost of living insurance

7 8 9 70

s Cost of daycare

Municipal property taxes

What Is Eligible?

´Only newly constructed residential units are eligible for exemption´ Excludes previously existing residential units (whether or not remodeled)

´ Excludes all non-residential improvements

´ Excludes land

What Is Eligible?

NOT ELIGIBLE

ELIGIBLE

Example

FULL TAXES´ Land Value: $500,000

´ Building Value: $5,500,00

´ Total Taxes: ~$99,000

TAXES w/EXEMPTION´ Land Value: $500,000

´ Building Value: $1,00,000

´ Total Taxes: ~$24,750

´ Affordable Exemptionx12 years: $891,000

Residential: $4,500,00

Commercial: $1,000,000

Application

´ Submit to CFO´ Application Contains:

´ Name of the applicant

´ Legal description and street address;

´ Floorplans of new residential units incl. square footages;

´ Drawings of all new and existing structures to be constructed on the property incl. square footages;

´ Plans showing the construction will increase the total number of residential units on the property;

´ Acknowledgement that units ultimately will be taxed;

´ Demonstration of increase in assessed value;

´ Incentive-specific information, e.g. Commitment to workforce / affordable; and

´ Any other information as may be required by the CFO

Provisional Approval

´ CFO reviews to ensure application is complete´ CFO verifies applicant will:

´ Construct not less thantwenty (20) new residentialunits in accordance withsubmitted plans and drawings; and

´ Satisfy incentive-specific requirements.

´ CFO will issue Provisional Approval

Construction

Final Approval & Abatement

´ CFO issues Final Approval if´ Applicant completes construction in accordance with originally submitted plans

and drawings

´ Certificate of Occupancy has been issued,

´ Incentive-specific requirements documented, and

´ Total number of residential units on the property has increased.

´ Any decision of the CFO may be reviewed by Administrative Hearings Office

´ Beginning January of first year after CO, taxes attributable only to the newly constructed residential units shall be abated for:´ Affordable Housing = twelve (12) years

´ Workforce Housing = eight (8) years

´ CFO records the exemption in the Anchorage Recording District and keeps copy on file in Treasury

Annual Reporting

´ Property owner shall file Annual Housing Tax Exemption Report by March 15 each year that includes:´ A statement of occupancy and vacancy of the residential units for the prior

twelve (12) months;

´ Certification that the newly constructed residential units described in the application continue to exist and have not been converted to a non-residential use;

´ A certification that the development continues to satisfy incentive-specific requirements;

´ A description of physical changes or other improvements constructed since last report or application; and

´ Additional information. Any additional information requested by the CFO

Annual Reporting

´ CFO shall transmit annual reports to the Assembly that include:´ Copies of annual Annual Housing Tax Exemption Reports submitted by property

owners

´ A summary of the total taxes exempted for each property that has been granted a tax exemption

Fines and Termination

´ An exemption granted under this chapter shall terminate immediately if and when:´ The number of residential units on the property is less than the number existing at

the time of final approval of the application; or

´ The development no longer meets incentive-specific requirements.

´ Property owner shall be fined for failure to file the Annual Housing Tax Exemption Report´ =10% of Taxes Exempted in the Prior Year