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Home My WebLink AboutO-2006-2665-A Tabled RE UEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requeste . Appropriation Requested By: Source of Funds: N/A Account Number: Department: Plannine Amount Budgeted: Report: _ Resolution: Ordinance: ....x Amount Requested: N/A Exhibits: Ordinance #2003-2665-A Budgeted Item: SUMMARY & RECOMMENDATION In October 2003 City Council passed Ordinance #2003-2665 to waive construction fees for certain non-profit corporations and/or City initiated programs which provided housing for low income families. Since passage, the ordinance language has required clarification and additional construction related fees have been implemented. Ordinance #2003-2665-A has been drafted to address those matters and to clarify application is for "single family dwellings" only. This item was reviewed during a Council workshop on May 8, 2006. Council requested additional information regarding whether a "for profit" developer and/or projects of other governmental agencies merit fee waivers under this ordinance. In coordination with the City Attorney, the intent of the waiving of fees is not based upon whether the builder is a "non-profit" or "for-profit" builder, but rather that the end product was classified as affordable housing, that the builder received some sort of HUD subsidy and that the buyer qualified under the parameters of HUD. The current 2003 ordinance 2665 states in section 2: "The City Council of the City of La Porte authorizes the waiver of water and sewer "front foot fees", and building permit and inspection fees, in the case of construction of housing for low income families, by non-profit corporations and/or programs initiated by the City." For those completed projects which already have fees waived (each requested by separate letter), we maintain the HUD-I settlement documents on file to ensure that the HUD parameters for the owners have been met. In the 'spirit' of the law governing this program, the builder can either be a non-profit or for-profit entity as long as the final product is affordable housing as described above and fees may be waived. Staff requests that Council consider the following proposed amendments to the fees being waived by this ordinance: FEES CURRENTL Y WAIVED Development Fees (Front Foot Fees) Building Permit Fees Inspection Fees FEES RECOMMENDED FOR ADD Plan Permit Review Fee Field Re-inspection Fee Parkland Cash in Lieu of Land Fee Parkland Development Fee FEES NOT RECOMMENDED Water and Sewer Tap Fees Residential Driveway Tie-in Staffalso recommends that the fee waivers be applicable to an application from other governmental agencies (e.g. Harris County) whose projects are being constructed in the City of La Porte. Action Required bv Council: Consider approval of Ordinance #2003-2665-A to clarify intent and add waived fees. 1)6 lot Dati ORDINANCE NO. 2003-2665-A fA fif]) 5"/),)./ot AN ORDINANCE AMENDING ORDINANCE NO. 2003-2665 REGARDING WAIVER OF CONSTRUCTION FEES IMPOSED BY THE CITY OF LA PORTE ON IMPROVEMENTS TO REAL PROPERTY, BY INCLUDING WAIVER OF ADDITIONAL PERMIT, INSPECTION, AND PARKLAND DEVELOPMENT FEES FOR HOUSING FOR LOW INCOME FAMILIES BY CERTAIN NON-PROFIT CORPORATIONS AND/OR CITY OF LA PORTE OR OTHER GOVERNMENTAL AGENCY INITIATED PROGRAMS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; CONTAINING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Sectionl. Section 2 of Ordinance No. 2003-2665 is hereby amended and shall hereafter read as follows, to-wit. Section 2. The City Council of the City of La Porte authorizes the waiver of water and sewer development fees, residential home construction (building, plumbing, electrical, mechanical) permit fees, permit plan review fees, field re-inspection fees, parkland cash payment in lieu of land fees and parkland development fees, in the case of construction of single-family housing for low income families by non-profit corporations and/or for low-income housing programs initiated by the City of La Porte or other governmental agencies. Section 2. All ordinances or parts of ordinances inconsistent with the terms of this ordinance are hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency and in all other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. Section 3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, and it is hereby declared to the intention of this City Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. Ordinance No. 2003-2665-A Page 2 Section 4. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Chapter 551, Tx. Gov't Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED this the day of ,2006. CITY OF LA PORTE By: Mayor ATTEST: City Secretary APP~ -r: ~ City Attorney 2 ASKINS & ARMSTRONG, P.C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1218 LA PORTE, TEXAS 77572-1218 CLARK T. ASKINS TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 E-MAIL: kwaskins@aol.com iohn-a@swbell.net ctaskins@swbell.net KNOX W. ASKINS JOHN D. ARMSTRONG May 16, 2006 Mayor and City Council City Hall City of La Porte RE: Fee waiver ordinance Dear Mayor and Council: I have been asked to render an opinion on the proposed expansion of Ordinance 2003-2665, to include waiver of permitting, inspection, and parkland fees for low- income housing developments in the city. Specifically, it has been asked if it would be permissible for the city to waive fees in the case of developments for low income housing construction where the construction is handled by for-profit companies. Our office has reviewed the matter and is satisfied that so long as the ultimate purchaser under a low-income housing development program is a qualifying buyer under applicable HUD regulations, then there shouldn't be an issue under the law if the builder is a for-profit company. That is, HUD regulations do not disqualify for-profit companies from participating in development of HUD subsidized projects, and on this basis, city council may as a policy matter decide to waive fees towards such projects, to lower the end cost to the buyer. In this regard I believe that Knox Askins has advised the Planning Department that as a part of the fee waiver process that it continue to require, and maintain in its records, documentation evidencing that a particular development and home purchase has been certified under HUD, in the case of low-income housing. Thank you, and should you have any questions please do not hesitate to contact me at my office. Sincerely, ~7:~ Clark T. Askins Assist. City Attorney Cc: City Manager Debra Feazelle Cc: Assistant City Manager John Joerns Cc: Assistant City Manager Cynthia Alexander Cc: Planning Director Wayne Sabo