Commission recommends change to workforce housing rule to align with federal programs

The Planning Commission placed a workforce‑housing ordinance amendment on the consent agenda and recommended it for approval on Aug. 12, 2026.

Zoning administrator Hannah Sabo explained staff recommended removing a locality preference in the rental portion of the city’s workforce housing density bonus because that local preference conflicts with major federal and state funding sources, such as the Low Income Housing Tax Credit (LIHTC) and tax‑exempt bonds. Sharon Shoaf, housing development manager in the Department of Housing and Neighborhood Preservation, told the commission that federal programs impose a general public‑use requirement that prevents local residency preferences when those funding sources are used. Shoaf said the proposed fix will let developers combine local incentives with critical external funding.

Shoaf described the administrative detail: developers would enter into a compliance agreement with the city before issuance of the first certificate of occupancy for rental workforce units; the agreement would set income and rent limits and monitoring consistent with federal programs. “When you use these federal programs there’s a general public‑use requirement…that’s why we’re here today,” Shoaf said. She added staff retained the homeownership component’s local preference because those rules do not conflict with federal funding sources.

Staff recommended approval and the Planning Commission forwarded the amendment on consent to City Council to proceed with code changes in Chapter 16 of the City Code.

What happens next: The item will go to City Council for final action; staff will present the related Chapter 16 code changes directly to council.