by SC Reporter Emilie Alfino
City Council on May 7, 2024, approved an ordinance that affects Below-Market-Rate Housing.
At a minimum, BMRH shall provide written notification to applicants as follows, sent to the mailing address or email address shown on the applicant’s application:
(1) Within 30 days of receipt of an application (including any supplemental application), notifying whether the application is sufficient or insufficient, and if insufficient, detailing the insufficiencies;
2) Within 30 days of receipt of the city manager’s determination as to the qualification of the applicant; and
3) On a monthly basis, notifying applicants placed on a waitlist, solely as developed by the housing foundation, of their current status on the waitlist.
Applications initiated by or on behalf of the BMRH program shall be exempt from permit fees
In addition, the ordinance amends language relating to mixed-use development to provide incentives to create housing opportunities for the Sanibel workforce and to streamline the permit processes for such developments.
Previously, for every unit of commercial space there would be a 1,000-square-foot reduction in allowable floor area – meaning the owner can do less in terms of commercial activity. There are also limited opportunities to re-develop. The ordinance now makes it a little more palatable for commercial businesses to consider mixed use, whether it be related to Below Market Rate Housing or not. If a unit is dedicated to BMRH and is approved, that 1,000-square-foot reduction requirement would not apply. This has a direct benefit to Below Market Rate Housing.
A big takeaway from this change is that mixed-use development will no longer require a conditional use permit. Therefore, the application will not need to go before the Planning Commission. This streamlines the permit process, reduces fees, and reduces processing time. This is advantageous for employee housing, intern housing, and pastor quarters. It could be pertinent for SCCF, the Shell Museum, and CROW as well.
This ordinance also reduces the requirement for parking spaces at these residences.
Finally, the bonus floor area ratio hopefully will motivate developers to undertake mixed-use projects. This applies only in the Town Center districts. If the maximum number of units are constructed and all are dedicated to BMRH, then the property would qualify for bonus floor area ratio of 25 percent of the lot size. Currently, the standard is 12%. This presents an opportunity for increased commercial floor area if there is BMRH on the property.
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