Staff briefed the commission on a state-recommended zoning tool: an "affordable-homeownership" overlay that can be adopted by municipalities to provide a density bonus for for-sale housing in exchange for deed-restricted affordable units or other commitments. The overlay is one of several "menu" options the state encourages municipalities to include in their moderate-income housing plans to preserve eligibility for certain grants and to show good-faith compliance with the state27s housing-planning requirements.

Staff noted that adopting an overlay does not obligate the city to immediately apply it across the community; rather, it creates a clear, code-based option the city could use in rezones or development agreements. Commissioners discussed possible boundaries where an overlay might be appropriate (corridors, already-developing areas) and asked staff to prepare a draft overlay ordinance, examples of how density bonuses would be calculated, and suggested safeguards (size limits, required deed restrictions and enforcement mechanisms).

No action was required immediately; the commission asked staff to return with a draft ordinance for future review.