HomeMy WebLinkAboutOrd 1344-2004ORDINANCE NO. 1344-2004
AN ORDINANCE AMENDING CHAFFER
INCI,USIONARY HOUSING REQUIREMENTS, TO
SOl JTH SAN FRANCISCO MUNICIPAI~ CODE
20.125,
THE
WHEREAS, on October 13, 1999, at a duly noticed public hearing, the City of South San
Francisco adopted an updated General Plan; and
WHEREAS, at a duly noticed public hearing of the City Council on September 26, 2001,
the City Council adopted Chapter 20.125, Inclusionary Housing Requirements; and
WHEREAS, The City of South San Francisco certified the Housing Element of its
General Plan on December 11, 2002. The certified Housing Element provides for the
development of affordable, well designed and properly located residential housing for all
economic sectors of the community in a manner which fosters and maintains the support of the
entire community; and
WHEREAS, staff has identified through implementation of the Inclusionary Housing
Requirements, certain areas that require clarification and proposed amendments to address those
provisions requiring clarification; and
WHEREAS, the Planning Commission of the City of South San Francisco, at a duly
noticed public hearing on May 5, 2004, recommended that the City Council adopt the proposed
amendments to Chapter 20.125.
NOW THEREFORE, the City Council of the City of South San Francisco does hereby
ordain as follows:
SECTION 1: AMENDMENTS TO CHAPTER 20.125
Chapter 20.125, entitled "Inclusionary Housing Requirements" is hereby amended as set forth in
Exhibit A, attached hereto and incorporated herein by reference. Project applications submitted
but not yet approved by the governing body as of the effective date of this ordinance shall be
subject to the provisions of Chapter 20.125 in effect at the time the project application was
deemed complete.
SECTION 2: PURPOSE
To ensure that all residential developments provide a range of housing opportunities for all
identifiable economic segments of the population, including households of lower and moderate
income.
SECTION 3: FINDINGS
Based on all evidence in the record, including but not limited to the testimony, staff reports and
other oral and written material provided to the City Council at the duly noticed public hearing on
May 26, 2004, the City Council makes the following findings:
A. South San Francisco General Plan and Housing Element
Appropriateness and Effectiveness of the Housing Element: In adopting the amendments to
Chapter 20.125, the City of South San Francisco finds that the amendments further the Housing
Element goals, objectives, and policies in contributing to the attainment of the State's housing
goal in that:
Housing Element Goals and Policies:
mo
Goal 1. Encourage a supply of housing units sufficient to assure each resident
an attractive, healthful, safe environment within a wide range of designs,
types, sizes, and prices.
B. Goal 2. Continue to support the provision of housing by both the private and
public sector for all income groups in the community.
Policy 2A. Eliminate constraints to affordable housing.
Policy 2B. Stimulate the construction of lower cost units by providing
incentives and encouraging mixed use projects, second units, density bonuses,
and manufactured housing.
Policy 2D. Involve the City directly in retaining and increasing the supply of
affordable housing.
Policy 2E. Continue to cooperate with other governmental agencies and take
an active interest in seeking solutions to area-wide housing problems.
Analysis: The above referenced policies support implementation of the proposed amendments as
a means to achieve the goal of providing housing to all income levels and at various prices. The
amendments clarify existing requirements as to income criteria, submittal of Affordable Housing
Agreements and make other administrative amendments designed to streamline approval of
residential development. Based on the foregoing, the amendments to the Inclusionary Ordinance
are consistent with and further the goals established in the Housing Element of the City of South
San Francisco's General Plan.
B. California Environmental Quality Act:
Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the City Council
declares that this ordinance is exempt from CEQA based on the following findings:
This ordinance is covered by the general rule that CEQA applies only to projects which have the
potential for causing a significant effect on the environment. This ordinance is not a "project"
within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential
for resulting in a physical change in the environment, directly or ultimately. This ordinance does
not, in itself, allow the construction of any building or structure. This ordinance, therefore, has
no potential for resulting in physical change in the environment, directly or ultimately. For the
reasons set forth herein, it can be seen with certainty that there is no possibility that this
ordinance will have a significant effect on the environment, and therefore, the ordinance is not
subject to CEQA.
SECTION 4: SEVERABILITY
In the event any section or portion of this ordinance shall be determined invalid or
unconstitutional, such section or portion shall be deemed severable and all other sections or
portions hereof shall remain in full force and effect.
SECTION 5: PUBLICATION AND EFFECTIVE DATE.
Pursuant to the provisions of Government Code Section 36933, a Summary of this Ordinance
shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at
which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary,
and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15)
days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2)
post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the
names of those City Council members voting for and against this Ordinance or otherwise voting.
This ordinance shall become effective thirty days from and after its adoption.
Introduced at a regular meeting of the City Council of the City of South San Francisco,
held the 26th day of May 2004.
Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the
City Council held the 23rd day of June 2004.
AYES: Councilmembers Richard A. Garbarino and Pedro Gonzalez, and Mayor Karyl
Matsumoto
None.
NOES:
ABSTAIN: None.
ABSENT: Councilmember Joseph A. Fernekes and Vice Mayor Raymond L. Green
ATTEST:
As Mayor of the City of South San Francisco, I do hereby
Ordinance this 23rd day of June 2004.
Deputy City Clerk
app/~°~e lhe [~r~ing
//' %x,,..~yor --
Re-adopted as an Ordinance of the City of South San Francisco at a regular meeting of
the City Council held the 8th day of September 2004, by the following vote:
AYES:
Councilmembers Joseph A. Fernekes and Pedro Gonzalez, Vice Mayor Raymond
L. Green and Mayor Karyl Matsumoto
NOES: None.
ABSTAIN: None.
ABSENT:
Councilmember Richard A. Garbarino
ATTEST: "-- X/ir:/r) ']/)/, t ff ' City Clerk
As Mayor of the City of South San Francisco, I do hereby approvqthe foregoing
Ordinance this 8th day °f September 2004' ~x/~k~ ~/!~ ~i~
! ~
Chapter 20.125 lnclusionary Housing
Requirements
Sections:
20.125.010
20.125.020
20.125.030
20.125.035
20.125.040
20.125.050
20.125.070
20.125.080
20.125.090
20.125.100
20.125.110
20.125.120
20.125.130
20.125.140
20.125.150
20.125.155
20.125.160
20.125.165
20.125.170
Purpose and Intent
Definitions
Inclusionary Housing
Requirement
New Master Plans Or Specific
Plans
Affordable Housing Standards
Calculating The Required
Number Of Inclusionary Units
Alternatives To New
Inclusionary Units
Combined Inclusionary
Housing Projects
Disposition Of Excess
Inclusionary Units
Offsets To The Cost Of
Affordable Housing
Development
In-Lieu Fees
Collection Of Fees
Preliminary Project Application
And Review Process
Affordable Housing Agreement
As A Condition Of
Development
Agreement Amendments
Period of Affordability
Pre-Existing Approvals
Enforcement
Savings Clause
20.125.010: Purpose and Intent
The purpose and intent of this chapter is as
follows:
(a) The City's objective, as established by the
housing element of the City's general plan, is to
ensure that all residential development, including
all master planned and specific planned
communities and all residential development
provide a range of housing opportunities for all
identifiable economic segments of the
population, including households of lower and
moderate income. It is the policy of the City to:
(1) Require that a minimum of twenty (20%)
percent of all approved residential development
consisting of four or more units be restricted to
and affordable to lower-income households;
subject to adjustment based on the granting of
certain incentives; and,
(2) Require that at least twenty percent
(20%) of all new dwelling units be restricted to
and affordable to low- or moderate-income
households. Not less than forty percent (40%) of
the affordable units, or eight percent (8%) of the
total units, are to be restricted to and affordable
to low-income households; and,
(3) Require that all developments consisting
of ten units or more shall provide the affordable
units on-site, and,
(4) Under certain conditions, allow
alternatives to constructing new affordable units
onsite as a means of providing affordable units in
the City; and,
(5) For housing developments consisting of 4
to 9 units, allow Inclusionary requirements to be
satisfied through the payment of an in-lieu fee as
an alternative to requiring inclusionary units to
be constructed.
(b) It is the purpose of this chapter to implement
the City's objectives and policies as stated in
subsection (a).
(c) Nothing in this chapter is intended to create a
mandatory duty on the part of the City or its
employees under the Government Tort Claims
Act and no cause of action against the City or its
employees is created by this chapter that would
not arise independently of the provisions of this
chapter. (Ord. 1303- 01, 2001)
20.125.020 Definitions.
Whenever the following terms are used in this
chapter, they shall have the meaning established
by this section:
(a) "Affordable housing" means housing for
which the allowable housing expenses paid by a
qualifying household shall not exceed thirty
(30%) percent of the gross monthly income for
Low-Income and Lower-Moderate, adjusted for
household size, as determined by the U.S.
Department of Housing and Urban Development
Income Limits.
(b) "Affordable housing agreement" means a
legally binding agreement between a developer
and the City to ensure that the inclusionary
requirements of this chapter are satisfied. The
agreement establishes, among other things, the
number of required inclusionary units, the unit
sizes, location, affordability tenure, terms and
conditions of affordability and unit production
schedule.
(c) "Allowable housing expense" means the
total monthly or annual recurring expenses
required of a household to obtain shelter.
(1) For a for-sale unit, allowable housing
expenses include loan principal and interest at
the time of initial purchase by the homebuyer,
allowances for property and mortgage insurance,
property taxes, homeowners association dues and
a reasonable allowance for utilities as defined by
the Federal Regulations for the Tenant Based
Rental Assistance Program.
(2) For a rental unit, allowable housing
expenses include rent and a utility allowance as
determined annually by the U.S. Department of
Housing and Urban Development, as well as all
monthly payments made by the tenant to the
lessor in connection with use and occupancy of a
housing unit and land and facilities associated
therewith, including any separately charged fees,
utility charges, or service charges assessed by the
lessor and payable by the tenant.
(d) "Combined inclusionary housing project"
means separate residential development sites
which are linked by a contractual relationship
such that some or all of the inclusionary units
which are associated with one development site
are produced and operated at a separate
development site or sites.
(e) "Conversion" means the change of status
of a dwelling unit from a purchased unit to a
rental unit or vice versa.
(f) "Density bonus (new residential
construction) For the purposes of this chapter,
"density bonus" means a density increase of at
least twenty (20%) percent, unless a lesser
percentage is elected by the developer, over the
otherwise maximum allowable residential
density under the applicable zoning ordinance
and land use element of the general plan as of the
date of application by the developer to the City.
The density bonus shall apply to housing
developments consisting of four more dwelling
units that meet the requirements for a Density
Bonus as established in Chapter 20.130.
(g) "Financial assistance" means assistance
to include, but not be limited to, the
subsidization of fees, infrastructure, land costs,
or construction costs, the use of redevelopment
set-aside funds, community development block
grant (CDBG) funds, or the provision of other
direct financial aid in the form of cash transfer
payments or other monetary compensation, by
the City of South San Francisco.
(h) "Incentives" means a reduction in the
inclusionary housing requirement granted in
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return for the provision of certain desired types
of affordable housing or related amenities as
determined by the City Council.
(i) "Inclusionary housing project" means a
new residential development or conversion of
existing residential buildings which has at least
twenty (20%) percent of the total units reserved
and made affordable to lower-income households
as required by this chapter. Of the 20%, at least
8% shall be affordable to persons of low-income
and no more than 12% affordable to persons of
low-to-moderate income as those terms are
defined in this Chapter.
(j) "Inclusionary unit" means a dwelling unit
that will be offered for rent or sale exclusively to
and which shall be affordable to lower-income
households, as required by this chapter.
(k) "Income" means any monetary benefits
that qualify as income in accordance with the
criteria and procedures used by the City of South
San Francisco Economic and Community
Development department. In addition to the
income of a targeted group, limitations on assets
may also be used as a factor in determining
eligibility for rental or for sale units.
(1) "Low-income household" means those
households whose gross income is more than
fifty percent (50%) but does not exceed eighty
percent (80%) of the unadjusted area median
income for San Mateo County.
(m) "Low-to-Moderate-Income household"
means households whose gross income is
between eighty-one percent (81%) and one
hundred and twenty percent (120%) of the
unadjusted area median income for San Mateo
County.
(n) "Median Income" means the median
income earned by a household or family,
adjusted by size, as published by U.S.
Department of Housing and Urban Development.
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(o) "Market-rate unit" means a dwelling unit
where the rental rate or sales price is not
restricted either by this chapter or by
requirements imposed through other local, state,
or federal affordable housing programs.
(p) "Offsets" means concessions or
assistance to include, but not be limited to, direct
financial assistance, density increases, standards
modifications or any other financial, land use, or
regulatory concession which would result in an
identifiable cost reduction enabling the provision
of affordable housing.
(q) "Residential development" means any
new residential construction of rental or for-sale
units; or development revisions, including those
with and without a master plan or specific plan,
planned unit developments, site development
plans, mobilehome developments and
conversions of apartments to condominiums, as
well as dwelling units for which the cost of
shelter is included in a recurring payment for
expenses, whether or not an initial lump sum fee
is also required.
(r) "Target income level" means the
unadjusted income standards for extremely low,
very low and low-income levels within San
Mateo County adjusted for family size.
(s) "Total residential units" means the total
units approved by the final decision making
authority. Total residential units are composed of
both market rate units and inclusionary units.
(Ord 1303 - 01, 2001)
20.125.030 Inclusionary Housing
Requirement.
The inclusionary housing requirements of this
chapter shall apply as follows:
(a) This chapter shall apply to all residential
market-rate dwelling units resulting from new
construction of rental and "for-sale" projects
consisting of four or more residential units, as
well as the conversion of apartments to
condominiums.
(b) For any residential development or
development revision of four or more units, not
less than twenty (20%) percent of the total units
approved shall be constructed and restricted both
as to occupancy and affordability to low-, and
lower-moderate income households.
(c) This chapter shall not apply to the
following:
(1) Existing residences which are altered,
improved, restored, repaired, expanded or
extended, provided that the number of units is
not increased, except that this chapter shall
pertain to the subdivision of land for the
conversion of apartments to condominiums;
(2) Conversion of a mobilehome park
pursuant to Section 21.37.120 of the code;
(3) The construction of a new residential
structure which replaces a residential structure
that was destroyed or demolished within two
years prior to the approval of a building permit
for the new residential structure, provided that
the number of residential units is not increased
from the number of residential units of the
previously destroyed or demolished residential
structure;
(4) Second dwelling units not constructed to
fulfill inclusionary housing requirements and
developed in accordance with Section 20.
of this code;
(5) Those residential units which have
obtained approval of a Vesting Tentative Map or
a Development Agreement prior to the effective
date of this ordinance, as set forth in Section
20.125.160 of this chapter. (Ord. 1303- 01, 2001)
20.125.035 New Residential Projects
Applications for Planned Unit Development
Permits, Tentative Maps, Vesting Tentative Map,
and other land use entitlements that seek
approval of a residential development project of
four or more residential units shall submit an
inclusionary housing plan as follows:
(a) All applications approved on or after the
effective date, or deemed complete on or after
the effective date, of the ordinance codified in
this chapter are required by this chapter to
provide an Affordable Housing Agreement with
the application for development. This
Affordable Housing Agreement will include
appropriate text, maps, tables, or figures to
establish the basic framework for implementing
the requirements of this chapter. It shall
establish, at a minimum, but shall not be limited
to, the following:
(1) The number of market rate units in the
master plan or specific plan;
(2) The number of required inclusionary
units for lower-income households in the project
including the specific levels of affordability;
(3) The designated sites for the location of
the inclusionary units, including but not limited
to any sites for locating offsite inclusionary
housing projects or combined inclusionary
housing projects;
(4) An Affordable Housing Agreement shall
be a condition of all future discretionary permits
for the development area such as tentative maps,
parcel maps, planned unit developments and site
development plans. All relevant terms and
conditions of the Affordable Housing Agreement
shall be filed and recorded as a restriction on the
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project as a whole and those individual lots, units
or projects which are designated as inclusionary
units. The affordable housing agreement shall be
consistent with Section 20.125.140 of this
chapter.
(b) The location and phasing of inclusionary
dwelling units may be modified by the body
granting final approval of the project as a
condition of approval for the project.
(c) All existing Planned Unit Development
Permits, Conditional Use Permits, master plans
or specific plans proposed for major amendment,
pursuant to Section 20.87 of this code, shall
incorporate into the amended master plan or
specific plan document an inclusionary housing
plan, consistent with this section of this chapter.
(Ord 1303 - 01, 2001)
20.125.040 Affordable Housing Standards.
The affordable housing standards are as follows:
(a) All residential developments are subject
to and must satisfy the inclusionary housing
requirements of this chapter, notwithstanding a
developer's request to process a residential
development under other program requirements,
laws or regulations, including but not limited to
Chapter 20.130 (Residential Density Bonus) of
this code.
(b) Unless otherwise provided in this
Chapter, inclusionary units shall be built on the
residential development project site.
(c) The required inclusionary units shall be
constructed concurrently with market-rate units
unless both the final decision-making authority
of the City and developer agree within the
affordable housing agreement to an alternative
schedule for development.
(d) Inclusionary rental units shall remain
restricted and affordable to the designated
income group for fifty-five (55) years.
Notwithstanding anything to the contrary_in this
chapter, no inclusionary unit shall be rented for
an amount which exceeds ninety (90%) percent
of the actual rent charged for a comparable
market unit in the same development, if any.
(e) The inclusionary for-sale units shall
remain affordable for a term of fifty-five (55)
years and said affordability term shall be filed
and recorded as a restriction on those individual
lots, units or projects which are designated as
inclusionary units. After the initial sale of the
inclusionary for-sale units at a price affordable to
the target income level group, inclusionary for-
sale units shall remain affordable to subsequent
income eligible buyers pursuant to a resale
restriction with a term of fifty-five (55) years.
For-sale units may be sold at market price under
the conditions in (f) through (h) of this section.
(f) Base Resale Price: The price at which
the Owner purchased the Affordable Unit shall
be adjusted by the percentage increase or
decrease in the median annual income at 100%
of median of a family of four in San Mateo
County. The percentage increase or decrease
shall be computed for the period that the
Affordable Unit is held by Owner. This adjusted
price shall be increased by the market value, if
any, of any documented, permanent capital real
estate or fixed improvements approved by City.
No price adjustment will be made except upon
presentation to the City of written documentation
of all expenditures made by Owner for which an
adjustment is requested. The adjusted price shall
be decreased by the amount necessary to repair
any damages and to put the unit into a sellable
condition, including items such as paint,
cleaning, construction repairs, and to bring said
unit into conformity with all applicable
provisions of the South San Francisco Municipal
Code and the affordable housing guidelines
established by the City. The value of price
adjustments shall be reasonably determined by
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the City. The resulting price shall be the Base
Resale Price of the unit.
(g) Upon resale of the unit, if the Affordable
Unit is sold above the restricted affordable price
during the fifty-five (55) year affordability term,
the City will receive the difference between the
Base Resale Price and the actual market sales
price of the unit.
(h) Funds recaptured by the City shall be
used in assisting other eligible households with
home purchases at affordable prices. To the
extent possible, projects using for-sale units to
satisfy inclusionary requirements shall be
designed to be compatible with conventional
mortgage financing programs including
secondary market requirements.
(i) Ideally, off-site inclusionary units should
be located on sites that are in proximity to or will
provide access to employment opportunities,
urban services, or major roads or other
transportation and commuter rail facilities and
that are compatible with adjacent land uses.
(j) The design of the inclusionary units shall
be consistent with general plan standards;
compatible with the design of the total project
development in terms of appearance, materials
and finished quality and conform to general plan
standards; and, consistent with affordable
housing development standards prepared by the
Department of Economic and Community
Development as adopted by the City Council.
(k) Inclusionary projects shall provide a mix
of number of bedrooms in the affordable
dwelling units in response to affordable housing
demand priorities of the City. Inclusionary
projects shall provide a distribution of affordable
units within the designated affordabilit¥ range as
follows: One third (33.3%) of lower income
units shall be affordable to households between
50 and 60 percent of median income; one third
(33.3%) of lower income units shall be
affordable to households between 60 and 70
percent of median income; one third (33.3%) of
lower income units shall be affordable to
households between 70 and 80 percent of median
income; and one third (33.3%) of lower-to-
moderate income units shall be affordable to
households between 80 and 90 percent of median
income; and one third (33.3%) of lower-to-
moderate income units shall be affordable to
households between 90 and 100 percent of
median income; one third (33.3%) of lower-to-
moderate income units shall be affordable to
households between 100 and 110 percent of
median income.
(1) No building permit shall be issued, nor
any development approval granted for a
development which does not meet the
requirements of this chapter. No inclusionary
unit shall be rented or sold except in accordance
with this chapter. (Ord 1303 - 01 2001)
20.125.050
Calculating The Required
Number Of Inclusionary Units.
Subject to adjustments for incentives, the
required number of lower-income inclusionary
units shall be twenty (20%) percent of the total
residential units, approved by the final decision-
making authority.
If the inclusionary units are to be provided
within an offsite combined or other project, the
required number of affordable inclusionary units
shall be twenty (20%) percent of the total
residential units to be provided both onsite
and/or offsite. Subject to the maximum density
permitted in the General Plan or granted by
specific authorization of the Planning
Commission or City Council. Fractional
inclusionary units of .5 will be subject to
payment of the in-lieu fee for the proportionate
amount of the fractional unit.
The in-lieu fee to be paid for each inclusionary
dwelling unit shall be equal to the developer's
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fractional costs of constructing a market rate unit
in the proposed project, including land and
improvements.
20.125.070 Alternatives To Constructing New
Inclusionary Units.
Notwithstanding any contrary provisions of this
chapter, at the sole discretion of the City
Council, the City may determine that an
alternative to the construction of new
inclusionary units is acceptable.
(a) The City Council may approve
alternatives to the construction of new
inclusionary units where the proposed alternative
supports specific housing element policies and
goals and assists the City in meeting its state
housing requirements.
(1) Such determination shall be based on
findings that new construction would be
infeasible or present unreasonable hardship in
light of such factors as project size, site
constraints, market competition, price and
product type disparity, developer capability, and
financial subsidies available. Evidence must be
submitted to the City Manager or his or her
designee and included in the request for any
waiver of the construction of new inclusionary
units.
(2) Alternatives may include, but are not
limited to, acquisition and rehabilitation of
affordable units, conversion of existing market
units to affordable units, construction of special
needs housing projects or programs (shelters,
transitional housing, etc.), and the construction
of second dwelling units.
(b) Second dwelling units constructed to
satisfy an inclusionary housing requirement shall
be rent restricted to affordable rental rates, and
renters shall be income-qualified, as specified in
the applicable affordable housing agreement. In
no event shall a developer be allowed to
construct more than a total of fifteen (15) second
dwelling units in any given development to
satisfy an inclusionary requirement.
(c) Contribution to a special needs housing
project or program may also be an acceptable
alternative based upon such findings. The
requisite contribution shall be calculated in the
same manner as an in-lieu fee per Section
20.125.110. (Ord 1303 - 01, 2001)
20.125.080 Combined Inclusionary Housing
Projects.
An affordable housing requirement may be
satisfied with offsite construction as follows:
(a) When it can be demonstrated by a
developer that the goals of this chapter and the
City's housing element would be better served by
allowing some or all of the inclusionary units
associated with one residential project site to be
produced and operated at an alternative site or
sites, the resulting linked inclusionary project
site(s) is a combined inclusionary housing
project.
(b) It is at the sole discretion of the City
Council to authorize the residential site(s) which
form a combined inclusionary housing project.
(1) Such decision shall be based on findings
that the combined project represents a more
effective and feasible means of implementing
this chapter and the goals of the City's housing
element.
(2) Factors to be weighed in this
determination include:
(A) the feasibility of the onsite option
considering project size, site constraints;
(B) competition from other projects;
(C) difficulty in integrating due to
significant price and product type disparity; and,
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(D) lack of capacity of the onsite
development entity to deliver affordable housing.
Also to be considered are whether the offsite
option offers greater feasibility and cost
effectiveness, location advantages such as
proximity to jobs, schools, transportation, and
services, diminished impact on other existing
developments, capacity of the development
entity to deliver the project, and satisfaction of
multiple developer obligations that would be
difficult to satisfy with multiple projects.
(c) All agreements between parties to form a
combined inclusionary housing project shall be
made a part of the affordable housing agreement
required for the site(s), which affordable housing
agreement(s) shall be approved by Council. (Ord
1303- 01, 2001)
20.125.090 Disposition of Excess Inclusionary
Units.
Inclusionary units created which exceed the final
requirement for a project may, subject to City
Council approval in the affordable housing
agreement, be utilized by the developer to satisfy
other inclusionary requirements for which it is
obligated or market the units to other developers
as a combined project subject to the requirements
of Section 20.125.080. (Ord 1303 - 01, 2001)
20.125.100 Offsets To The Cost Of Affordable
Housing Development.
The City shall consider making offsets available
to developers when necessary to enable
residential projects to provide a preferable
product type or affordability in excess of the
requirements of this chapter.
(a) Offsets will be offered by the City to the
extent that resources and programs for this
purpose are available to the City and approved
for such use by the City Council, and to the
extent that the residential development, with the
use of offsets, assists in achieving the City's
housing goals. To the degree that the City makes
available programs to provide offsets, developers
may make application for such programs.
(b) Evaluation of requests for offsets shall be
based on the effectiveness of the offsets in
achieving a preferable product type and/or
affordability objectives as set forth within the
housing element; the capability of the
development team; the reasonableness of
development costs and justification of subsidy
needs; and the extent to which other resources
are used to leverage the requested offsets.
(c) Nothing in this chapter establishes, directly
or through implication, a right to receive any
offsets from the City or any other party or
agency to enable the developer to meet the
obligations established by this chapter.
(d) Projects are entitled to density bonuses
and/or other incentives in accordance with
provisions of state law, pursuant to the
provisions of Chapter 20.130.105 of this code.
(e) Any offsets approved by the City Council
and the housing affordability to be achieved by
use of those offsets shall be set out within the
affordable housing agreement pursuant to
Section 20.130.140 or, at the City's discretion in
a subsequent document.
(f) Developers are encouraged to utilize local,
state or federal assistance, when available, to
meet the affordability standards set forth in
Sections 20.125.030 and 20.125.040. (Ord 1303
- 01, 2001)
20.125.110 In-lieu Fees.
Payment of a fee in-lieu of construction of
affordable units may be appropriate in the
following circumstances:
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(a) For any residential development or
development revision consisting of four to nine
units, the inclusionary requirements may be
satisfied through the payment to the City of an
in-lieu fee.
(b) The in-lieu fee to be paid for each
inclusionary dwelling unit shall be equal to the
developers costs of constructing a market rate
unit in the proposed project, including land and
improvements.
(c) In lieu-fees shall be paid at the time a
building permit is issued for the development.
(d) At the discretion of the City Council,
where a developer is authorized to pay a fee in-
lieu of development, an irrevocable dedication of
land or other non-monetary contribution of a
value not less than the sum of the otherwise
required in-lieu fee may be accepted as an
alternative to paying the in-lieu fee if it is
determined that the non-monetary contribution
will be effectual in furthering the goals and
policies of the housing element and this chapter.
The valuation of any land offered in-lieu shall be
determined by an appraisal made by an agent
mutually agreed upon by the City and the
developer. Costs associated with the appraisal
shall be borne by the developer.
(e) Where a developer is authorized to pay a
fee in-lieu of development of affordable housing
units, any approvals shall be conditioned upon a
requirement to pay the in-lieu fee in an amount
established by the Chapter in effect at the time of
payment.
(f) An alternative to paying an in-lieu fee(s),
inclusionary housing requirements may be
satisfied either through a combined inclusionary
housing project, pursuant to Section 20.125.080
of this chapter or new construction of
inclusionary units subject to approval of the final
decision-making authority. (Ord 1303 - 01,
2001)
20.125.120 Collection Of Fees.
All in-lieu fees collected hereunder shall be
deposited in a housing trust fund. Said fund shall
be administered by the City and shall be used
only for the purpose of providing funding
assistance for the provision of affordable housing
and reasonable costs of administration consistent
with the policies and programs contained in the
housing element of the general plan. (Ord 1303 -
01,2001)
20.125.130 Preliminary Project Application
And Review Process.
The preliminary project application/review
process shall be as follows:
(a) A developer of a residential development,
proposing an inclusionary housing project shall
have an approved site development plan prior to
execution of an affordable housing agreement for
the project. The developer may submit a
preliminary application to the housing and
redevelopment director prior to the submittal of
any formal applications for such housing
development. The preliminary application shall
include the following information if applicable:
(1) A brief description of the proposal
including the number of inclusionary units
proposed;
(2) The zoning, general plan designations
and assessors parcel number(s) of the project
site;
(3) A site plan, drawn to scale, which
includes: building footprints, driveway and
parking layout, building elevations, existing
contours and proposed grading; and,
(4) A letter identifying what specific offsets
and/or adjustments are being requested of the
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City. Justification for each request should also be
included.
(b) Within thirty days of receipt of the
preliminary application by the planning director
for projects not requesting offsets or incentive
adjustments, or ninety days for projects
requesting offsets or incentive adjustments the
department shall provide to an applicant, a letter
which identifies project issues of concern, the
offsets and incentive adjustments that the City
Manager or his or her designee can support when
making a recommendation to the final decision-
making authority, and the procedures for
compliance with this chapter. The applicant shall
also be provided with a copy of this chapter and
related policies, the pertinent sections of the
California codes to which reference is made in
this chapter and all required application forms.
(Ord 1303 - 01, 2001)
20.125.140 Affordable Housing Agreement As
A Condition Of Development.
This chapter requires the following:
(a) Developers subject to this chapter shall
demonstrate compliance with this chapter by
executing an affordable housing agreement
prepared by the Department of Economic and
Community Development Department and
submitted to the developer for execution.
Agreements which conform to the requirements
of this section and which do not involve requests
for offsets and/or incentives, other than those
permitted by right, if any, shall be reviewed by
the City Manager or his or her designee and
approved by the City Manager or his or her
designee.
(b) Agreements which involve requests for
offsets and/or incentives, other than those
permitted by right, shall require the
recommendation of the Department of Economic
and Community Development and action by the
City Council as the final decision-maker.
(c) Following the approval and execution by
all parties, the affordable housing agreement
with approved site development plan shall be
recorded against the entire development,
including market-rate lots/units and the relevant
terms and conditions therefrom filed and
subsequently recorded as a separate deed
restriction or regulatory agreement on the
affordable project individual lots or units of
property which are designated for the location of
affordable units.
(d) The approval and execution of the
affordable housing agreement shall take place
prior to final map approval and shall be recorded
upon final map recordation or, where a map is
not being processed, prior to the issuance of
building permits for such lots/units.
(e) The affordable housing agreement may
require that more specific project and/or unit
restrictions be recorded at a future time.
(f) The affordable housing agreement shall
provide that the project applicant pay an
administrative fee to reimburse the City for all
administrative/processing costs and fees incurred
in processing the affordable housing plan and
implementing the requirements of this Chapter
on a project specific basis. The City may waive
the administrative fee as an incentive or off-set
for the provision of affordable units.
(g) The affordable housing agreement shall
bind all future owners and successors in interest
for the term of years specified therein.
(h) An affordable housing agreement, for
which the inclusionary housing requirement will
be satisfied through new construction of
inclusionary units, either onsite or offsite, shall
establish, but not be limited to, the following:
(1) The number of inclusionary dwelling
units proposed, with specific calculations
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detailing the application of any incentive
adjustment credit;
(2) The unit square footage, and number of
bedrooms;
(3) The proposed location of the inclusionary
units;
(4) Amenities and services provided, such as
daycare, after school programs, transportation,
job training/employment services and recreation;
(5) Level and tenure of affordability for
inclusionary units;
(6) Schedule for production of dwelling
units;
(7) Approved offsets provided by the City;
(8) Where applicable, requirements for other
documents to be approved by the City, such as
marketing, leasing and management plans;
financial assistance/loan documents; resale
agreements; and monitoring and compliance
plans;
(9) Where applicable, identification of the
affordable housing developer and agreements
specifying their role and relationship to the
project.
(10) An affordable housing agreement,
for which the inclusionary housing requirement
will be satisfied through payment to the City of
any in-lieu contributions other than fee monies,
such as land dedication, shall include the method
of determination, schedule and value of total in-
lieu contributions.
(11) An affordable housing agreement
will not be required for projects which will be
satisfying their inclusionary housing requirement
through payment to the City of an in-lieu fee
unless the applicant requests payment options
not provided by this Chapter. (Ord 1303 - 01,
2001)
20.125.150 Agreement Amendments.
Any amendment to an affordable housing
agreement shall be processed in the same manner
as an original application for approval, except as
authorized in Section 20.125.035 (c).
20.125.155 Period of Affordability
The City or its designee shall have a first right of
refusal to purchase affordable units offered for
sale during the tenure of affordability. The first
right of refusal to purchase the affordable unit
shall be submitted in writing to the Director of
the Department of Economic and Community
Development. Within ninety days of its receipt,
the City shall indicate its intent to exercise the
first right of refusal for the purpose of providing
affordable housing. (Ord 1303 - 01, 2001)
20.125.160 Pre-existing Approvals.
The following projects shall not be subject to
requirements of the ordinance codified in this
chapter.
(a) Any residential developments for which
an application for a vesting tentative map has
been deemed complete prior to the effective date
of this ordinance, unless otherwise authorized by
law.
(b) Any project subject to an executed
development agreement when the effective date
of the agreement is prior to the effective date of
this ordinance or the development agreement
contains the affordability requirements of this
Chapter. (Ord 1303 - 01, 2001)
20.125.165 Enforcement.
Enforcement provisions are as follows:
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(a) The provisions of this chapter shall apply
to all developers and their agents, successors and
assigns proposing a residential development
governed by this chapter. No building permit or
occupancy permit shall be issued, nor any
entitlement granted, for a project which is not
exempt and does not meet the requirements of
this chapter. All inclusionary units shall be
rented or owned in accordance with this chapter.
(b) The developer and its agents, successors
and assigns shall annually certify tenants as to
the income eligibility for occupancy of Below
Market Rate Rental Units and the annual
certification shall be submitted to the
Department of Economic and Community
Development. If Developer and its agents,
successors and assigns fail to perform an annual
certification, developer shall be fined ONE
THOUSAND DOLLARS ($ 1000.00) for each
Below Market Unit whose tenants were not
subject to an annual certification. The City shall
continue to fine developer an additional ONE
THOUSAND DOLLARS ($1,000.00) for every
thirty (30) day period for each Below Market
Unit whose tenants have not been subject to an
annual certification. City shall take steps to
assess these fines as a lien against either the
property where the Below Market Units are
located or against the Project Property
(c) If developer at any time fails to make
available or to provide Below Market Rate
Rental Unit at the required affordable rent levels,
developer is subject to a fine of TWO
THOUSAND FIVE HUNDRED DOLLARS
($2,500.00) for each Below Market Unit not
provided pursuant to the affordable housing
agreement. The City shall continue to fine
Developer an additional TWO THOUSAND
FIVE HUNDRED DOLLARS ($2,500.00) for
every thirty (30) day period after the initial fine
for each Below Market Unit not provided
pursuant to the affordable housing agreement.
City shall take steps to assess these fines as a lien
against either the property where the Below
Market Units are located or against the Project
Property.
(d) The City may institute any appropriate
legal actions or proceedings necessary to ensure
compliance with this chapter, including but not
limited to actions to revoke, deny or suspend any
permit or development approval. In the event the
City must institute legal action to enforce the
provisions of this ordinance, the City shall be
entitled to recover its administrative costs,
including reasonable attorneys' fees, in addition
to any other remedy provided by the court.
(e) Any individual who sells or rents a
restricted unit in violation of the provisions of
this chapter shall be required to forfeit all
monetary amounts so obtained. Such amounts
shall be added to the City's housing trust fund.
(Ord 1303 - 01 2001)
20.125.170 Savings Clause.
All code provisions, ordinances, and parts of
ordinances in conflict with the provisions of this
chapter are repealed. The provisions of this
chapter, insofar as they are substantially the
same as existing code provisions relating to the
same subject matter shall be construed as
restatements and continuations thereof and not as
new enactments. With respect, however, to
violations, rights accrued, liabilities accrued, or
appeals taken, prior to the effective date of this
ordinance, under any chapter, ordinance, or part
of an ordinance shall be deemed to remain in full
force for the purpose of sustaining any proper
suit, action, or other proceedings, with respect to
any such violation, right, liability or appeal. (Ord
1303 - 01, 2001)
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ORDINANCE NO. 1344-2004
AN ORDINANCE AMENDING CHAPTER 20.125,
INCLUSIONARY HOUSING REQUIREMENTS, TO THE
SOUTH SAN FRANCISCO MUNICIPAL CODE
Prior to Adoption.
CITY CLERK'S CERTIFICATION
I, SYLVIA M. PAYNE, City Clerk of the City of South San Francisco, CERTIFY that on
Friday, the 3rd day of September, 2004, at least five days prior to the City Council meeting set for
Wednesday, the 8th day of September, 2004, when this Ordinance was scheduled for adoption (1)
the Summary was published and circulated in the City, and (2) a certified copy of the full text of
this Ordinance was posted in my office, all in accordance with Government Code Section 36933.
DATED: September 8, 2004
2. After Adoption.
Sylvia M. Payne, City Clerk
I, SYLVIA M. PAYNE, City Clerk of the South San Francisco, CERTIFY that this
Ordinance was adopted on Wednesday, the 8th day September, 2004. Within fifteen (15) days
thereafter (1) the Summary of this Ordinance, a copy of which is attached, was published in the
"San Mateo County Times", a newspaper of general circulation published and circulated in the
City, and (2) a certified copy of this Ordinance, with the names of those City Council members
voting for or against this Ordinance, or otherwise voting, was posted in my office, all in accordance
with Government Code Section 36933.
DATE: September 9, 2004
sylvia M. Payne, Ci~/-Cle~k-
3. CERTIFICATION AND POSTING PRIOR TO ADOPTION
A certified copy of the full text of this Ordinance is posted in the Office of the City Clerk,
City Hall, 400 Grand Avenue, South San Francisco, California. The Ordinance was read for the
first time on Wednesday, the day 23ra of June 2004, a second reading and adoption on Wednesday,
and is scheduled for re-adoption on Wednesday, the 8t~ day of
the 23rd day of June, 2004,
September, 2004.
DATED: September 3, 2004
'" Sylvia M. Payee, City Clerk
4. CERTIFICATION AND POSTING AFTER ADOPTION
This Ordinance was adopted on Wednesday, the 8th day September, 2004, and a certified
copy of the full text, together with the names of the City Council members voting for and against
the Ordinance or otherwise voting, is posted in the Office of the City Clerk.
September 9, ~...~7 fi/~
DATED: 2004 ~le~~
Sylvia M. Payne, City