The Tallahassee City Commission voted last week to provide $575,000 in funding for affordable housing units in the Canopy development. Canopy is a new 500-acre mixed-use traditional neighborhood development.
The $575,000 will come from the Affordable Housing Trust Fund and will be used to purchase and sell affordable units to eligible buyers on a revolving basis.
The Tallahassee Land Development Code provides for inclusionary housing in developments which meet certain criteria such as developments with more than 50 units and within certain census tracts.
The Canopy development is subject to the inclusionary housing ordinance and will provide 10% of the units within the development, for a total of 62 units.
The inclusionary housing ordinance is intended to provide working class families with affordable housing. Eligible households are those earning between 70 to 100 percent of median family income (adjusted for size) for the Tallahassee Metropolitan Statistical Area.
The median family income for the Tallahassee metro area was $68,400 in 2017, according to the Federal Financial Institutions Examination Council.
The developer and city staff negotiated the terms of the proposed agreement for the Canopy development. The terms provide for 62 units, an average sales price of $186,224 and a maximum sales price of $224,000.
Also, the agreement calls for single-family owner occupied homes between 1,100 and 1,400 square feet.
The City Department of Community Housing and Human Services shall be solely responsible for the final determination of eligible households.
City staff and the developer also negotiated a program where the City will purchase unsold inclusionary units to hold as inventory for sale to eligible buyers.
The developer will construct and maintain an inventory of 3 model inclusionary units. If any model inclusionary unit remains unsold for 12 months after construction and issuance of a certificate of occupancy, the City will purchase the unit to hold as inventory.
When the City sells an inclusionary unit it holds in inventory, the sale proceeds will be returned to the revolving fund and may be used for the purchase of another inclusionary unit.
The City is not required to purchase or hold more than 3 inclusionary units at any one time.