NEW HANOVER COUNTY — A state bill removing many development standards for workforce housing, having disturbed the Southport board of aldermen last month, is also causing concern across the river.
New Hanover County planning staff have “significant concerns,” over Senate Bill 317, according to county spokesperson Alex Riley. The legislation prohibits local governments from applying dimensional standards or design requirements to any project that meets the workforce housing definition.
READ MORE: Southport raises alarm on state bills changing development processes
Developments must be at least 10 acres of one- or two-family dwellings with at least 20% of the lots dedicated to the workforce.
The county has more than 100 undeveloped or underdeveloped parcels of at least 10 acres in New Hanover County that could be utilized as workforce housing under S.B. 317. Many of the tracts lie in the growing northern end, with only a few small parcels qualifying in the more densely populated Wilmington city limits and Carolina Beach; there are no qualifying parcels in Wrightsville Beach.
According to NHC staff, they wish the bill would include language outlining how the benefits of the bill’s incentives would be passed to homebuilders.
“Many of the project incentives directly benefit developers,” the document states.
Under the current approval process, developers must abide by the types of projects allowed in the zoning district — i.e. residential zoning versus industrial — or apply for a rezoning. Sometimes, the county can impose a conditional zoning use for the property, which allows the rezoning to occur only if certain conditions are met. The county’s land use code also specifies certain vegetation, stormwater, design, setback, and height standards dependent on the district.
S.B. 317 takes a large chunk out of a municipality’s approval authority in that process; it states workforce housing shall be allowed in any district, no matter the zoning, with no density or open space requirements. The bill takes away local judgment in determining whether a housing development is appropriate in an area, including near landfills, heavy industrial areas and airports.
Stormwater and floodplain regulation can only be mandated per state and federal rules. Municipalities may require up to a 20-foot vegetative buffer, but no other vegetation requirements, including tree retention standards. For NHC staff, this is concerning considering a sizable portion of the county lies in a floodplain.
With less than one-fourth of units dedicated to workforce housing, a developer with new authority under S.B. 317 could make the other units market rate and be largely unrestricted in the development of those units. NHC staff says this leeway provides “qualifying developers with numerous advantages over developers of market rate housing” who have to go through the county’s current hoops.
As a solution, NHC staff said the bill should raise the required percentage of workforce housing units and outline a minimum number of units in addition to the minimum percentage. Another solution is clear guidelines on repercussions if workforce minimums are not met, which the bill does not currently specify.
County staff are also concerned with calculating who qualifies for workforce housing. The bill states that of the 20% of the development’s housing stock set aside, half should be reserved for those making less than 80% of the area median income as provided by the U.S. Department of Housing and Urban Development. The rest must be available only to those making less than 100% of the area median income.
The average individual makes $56,000 on average.
Based on data from the North Carolina Housing Coalition, a renter needs an income of $50,360 to afford fair market rent — $1,259 — in the county. That breaks down to $24.21 an hour. For reference, a New Hanover County healthcare worker makes $28,480 on average and a police officer makes $47,310.
NHC staff suggested the bill indicate a clear price point for affordability rather than relying on buyer income. Staff’s qualms include a lack of clarity on how qualifying income for workforce housing will be verified.
NHC staff raise many of the same concerns as the city of Southport, who discussed S.B. 317 and other municipal power-limiting bills last month.
There are also several other proposals for better workforce housing accommodations in the General Assembly.
House Bill 562, introduced on April 5, is identical to S.B. 317. It now resides in the House Committee on Local Government — Land Use, Planning and Development. A bipartisan effort, it has 37 sponsors, none of which represent the tri-county region.
House Bill 537 is similarly restrictive and requires municipalities to allow multifamily housing in zoning classifications of highway business, business office, and general business, or similar districts. It also allows the state to sell or lease real property to workforce housing developments at less than market rate.
Another bill employs less intense measures to provide affordable housing accessibility. Senate Bill 424, for example, allocates $30 million in nonrecurring funds to the North Carolina Housing Trust Fund. Since the initial infusion of $50 million in 2005, its balance has decreased to under $6 million.
The multi-million infusion would be generated by 1.5% of fee revenue collected by the state register of deeds. The overall fees would not increase, but rather, the 1.5% would be reallocated from the general fund collection.
According to the bill’s text, for every $1 million spent from the housing fund, 108 households are assisted; $5.2 million in affordable housing real estate value is generated; 110 jobs are supported; and $455,000 in state and local revenue is generated.
S.B. 317 — with 32 sponsors, including Pender County’s Sen. Brent Jackson, has enough votes to pass the Senate. The bill currently resides in the North Carolina Senate rules committee, chaired by Sen. Bill Rabon (R-Brunswick, Columbus, New Hanover).
After publication, Riley told PCD staff has submitted its analysis to commissioners for their review. PCD also reached out to Rabon requesting his thoughts and whether he will bring forth S.B. 317 in the rules committee; the senator did not respond by press.
Reach journalist Brenna Flanagan at brenna@localdailymedia.com
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