SB1131: Charlottesville, City of; to establish housing fund to assist low & moderate income persons.

SENATE BILL NO. 1131
Offered January 10, 2007
Prefiled January 9, 2007
A BILL to amend the Code of Virginia by adding a section numbered 15.2-2304.1, relating to local housing fund and voluntary coordinated housing preservation and development districts in the City of Charlottesville.
Patron-- Deeds

Referred to Committee on Local Government

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 15.2-2304.1 as follows:

§ 15.2-2304.1. Local housing fund and voluntary coordinated housing preservation and development districts in certain cities.

The governing body of the City of Charlottesville may establish by resolution a housing fund, the purpose of which will be to assist for-profit or nonprofit housing developers or organizations to develop or preserve affordable housing for low and moderate income persons. The fund may be used to assist the developer or organization with such items as acquisition of land and buildings, lighting, sanitary and storm sewers, landscaping, walkways, construction of parking facilities, water-sewer hookup fees, and site improvements, including sidewalks, curbs, and gutters but not street improvements. Developers assisted in this manner shall provide a minimum of 20% of the units for low and moderate income persons, as defined by the city, for a minimum of 10 years.

The governing body may declare by resolution that a portion of the city is eligible for use of the housing fund by designation of a voluntary coordinated housing preservation and development district. Such resolution shall contain a statement that (i) there exists within the city a serious shortage of sanitary and safe residential housing at rentals and prices that persons and families of low and moderate income can afford, and that this shortage has contributed and will contribute to the creation of substandard living conditions and is inimical to the health, welfare, and prosperity of the residents of the city; (ii) it is imperative that the supply of rental and other housing for such persons and families be preserved or developed; and (iii) private enterprise is unable, without assistance, to produce the needed development or rehabilitation of sanitary and safe housing that persons or families of low and moderate income can afford.

The resolution shall include a statement that the owner of such rental property, or persons showing evidence of site control by a legally binding agreement, has requested the city to designate the site a voluntary coordinated housing preservation and development district.

The resolution shall also provide a plan for the district that outlines actions to be taken by the owner and by the city to assure that physical improvements to the structures, site, and infrastructure are designed to improve the neighborhood, enhance the useful life of the buildings, and promote energy conservation. Such plan shall further specify the actions to be taken by the owner and by the city (i) to minimize the displacement of persons or families of low and moderate income residing in the property; (ii) to reserve some units at rents and prices affordable to persons or families of low and moderate income; and (iii) otherwise to serve public purposes.

Upon declaration of an approved district, the city may:

1. Provide for the installation, construction, or reconstruction of streets, utilities, parks, parking facilities, playgrounds, and other site improvements essential to the development, preservation, or rehabilitation planned;

2. Provide encouragement or financial assistance to the owners or occupants for acquisition of land and buildings; developing or preserving and upgrading residential buildings and improving health and safety; conserving energy; preventing erosion; enhancing the neighborhood; and reducing the displacement of low and moderate income residents of the property;

3. Require that the owner agree to maintain a portion of the property in residential rental or other residential use for a period of not less than 10 years and that a portion of the dwelling units in the property be offered at rents and prices affordable to persons or families of low and moderate income; and

4. Provide that the value of assistance given by the city under subdivisions 1 and 2 be proportionate to the value of considerations rendered by the owner in maintaining a portion of the dwelling units at reduced rents and prices for persons or families of low and moderate income.