HomeMy WebLinkAboutOrd 1303-2001ORDINANCE NO. 1303-2001
AB- ORDINANCE ADDING CHAPTER 20.125, INCLUSIONARY HOUSING
REDUIREMENTS, TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE
WHEREAS, The City of South San Francisco adopted a Housing Element as a component of its
General Plan in December 1992. 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, In March of 2001, the Association of Bay Area Governments (ABAG) released its
housing allocation numbers that projects the number of housing units required for the City based on
projected job growth. ABAG has determined that the City should provide a total of 1,331 housing units
prior to June 30, 2006. Of the 1,331 housing units, ABAG recommends the City allocate the units as
follows: 1) 277 units affordable to persons of very low income; 2) 131 units affordable to persons of low
income; and 3) 360 units affordable to persons of moderate income (collectively, "affordable units"). The
City is required by law to incorporate its housing need numbers into an updated version of its general plan
housing element. The entire process must be completed by December 30, 2001; and,
WHEREAS, The City Council initiated a review of the City's housing needs for the purpose of
ascertaining how the City may best provide housing that is affordable to existing residents of the City and
employees of businesses located within the City.
NOW THEREFORE, The City Council of the City of South San Francisco based on the entire
record which inCludes, but is not limited to the Study Sessions of August 19 and 30, 2001, the duly
noticed public hearing of Planning Commission on September 20, 2001, and staff reports and testimony
received at same; staff reports and testimony received at the duly noticed public heating of the City
Council on September 26, 2001; and the staff reports and testimony received at the November 14, 2001,
duly noticed public hearing of the City Council of the City of South San Francisco; does hereby ordain as
follows:
SECTION 1: ADDITION OF CHAPTER 20.125
Chapter 20.125, entitled "Inclusionary Housing Requirements" is hereby added to the South San
Francisco Municipal Code to provide as set forth in Exhibit A attached hereto and incorporated herein by
reference.
SECTION 2: PURPOSE
To ensure that all residential development, including all master planned and specific planned communities
and all residentia~ development provide a range of housing opportunities for all identifiable economic
segments of the population, including households of lower and moderate income.
,"- SECTION3: FINDINGS
A. South San Francisco General Plan and Housing Element
Appropriateness and Effectiveness of the Housing Element: In adopting the Housing Element, the City of
South San Francisco finds that its housing goals, objectives, and policies are appropriate in contributing to
the attainment of t :~e State's housing goal in that:
The City fosters cooperation of the public and private sectors in expanding housing
opportunities and accommodating housing needs through rezoning efforts, density bonuses,
mixed land uses, housing revenue bonds, and rehabilitation programs; and,
The City supports the provision of housing affordable to low and moderate-income
households through new single-family and multiple family housing construction, use of
factory-built housing and mobile homes, creation of second units and sharing of homes, and
constraction of senior housing; and,
The City facilitates the adequate provision of housing for all economic segments of the
community through site availability, new housing construction, housing conservation, and
rehabilitation.
Housing Element Goals and Policies:
Ao
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 an Inclusionary Housing Ordinance
as a means to achieve the goal of providing housing to all income levels and at various prices. The
Ordinance also requires the private sector to contribute to satisfying the need for low and moderate
income housing which furthers Goal 2 of the Housing Element. With the simultaneous adoption of the
Density Bonus Ordinance, the City will be able to provide various incentives and off-sets to those projects
that provide a minimum of twenty percent (20%) of the total units to families of low-income. Overall,
adoption of an Inclusionary Housing Ordinance further the goals and policies articulated in the Housing
Element by requiring all residential developments with four or more proposed dwelling units to provide a
minimum of 20% of the unit to families of low and moderate income. Additionally, at least 8% of the
affordable units must be affordable to persons or families of low-income. The Ordinance also mandates
that the unit prices must cover the entire range of affordability so as to provide housing units to all
families within the designated affordable range. Based on the foregoing, the Inclusionary Ordinance and
Density Bonus Ordinance are consistent with and further the goals established in the Housing Element of
the City of South San Francisco's General Plan.
B. Compliance with State Law
Government Code section 65913 articulates the state policy on affordable housing. Specifically, the state
Legislature has determined that there exists a severe shortage of affordable housing, especially for persons
and families of ~_ow and moderate income, and that there is an immediate need to encourage the
development of new housing, not only through the provision of financial assistance, but also through
changes in law designed to assure that local governments make a diligent effort through the
administration of land use and development controls and the provision of regulatory concessions and
incentives to significantly reduce housing development costs and thereby facilitate the development of
affordable housing.
Analysis: By adopting the Inclusionary Ordinance, which requires the private sector to provide its fair
share of affordabi_e housing, the City acts to satisfy the requirements of state law that mandate local
governments implement policies to meet the critical demand for affordable housing. Additionally,
through the use o5 incentives and off-sets available in the Ordinance, the City provides a mechanism to
allow the private sector to develop affordable units and maintain project feasibility.
C. Californi.~ 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 not a "project" within the meaning of Section 15378 of the State CEQA
Guidelines, because it has no potential for resulting in physical change in the environment,
directly or ultimately. This ordinance does not, in itself, allow the construction of any building
or strr_cture. This ordinance, therefore, has no potential for resulting in physical change in the
environment, directly or ultimately.
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. For the reasons set forth
above, 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
14th day of November 2001, by the following vote:
Adopted as an Ordinance of the City of South San Francisco at a regular meeting
of the City Counc:_l held the 12th day of December 2001:
AYES:
Co ancilmembers Joseph A. Femekes, and Karyl Matsumoto
Mayor Pro Tem Pedro Gonzalez and Mayor Eugene R. Mullin
NOES: None.
ABSTAIN: Co'ancilmember Raymond L. Green
ABSENT: Noae.
ATTEST:
As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this
12th day of Decerr_ber 2001. a~~yor ~
EXHIBIT A
Chapter 20.125 Inclusionary 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
Pu-tpose and Intent
Definitions
lnclusionary Housing
Requirement
New Master Plans Or Specific
Plans
Affordable Housing Standards
Calculating The Required
Nu x~ber Of Inclusionary Units
Alternatives To New
Inclusionary Units
Combined Inclusionary
Housing Projects
Disposition Of Excess
Inclusionary Units
Offsets To The Cost Of
Af !ordable Housing
Development
In-Lieu Fees
Colection Of Fees
Preliminary Project Application
And Review Process
Affordable Housing Agreement
As A Condition Of
Development
Agreement Amendments
Pe~:iod of Affordability
Pre-Existing Approvals
Enforcement
Savings Clause
20.125.010: Purpose and Intent
The purpose anc 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 of the 20% affordable units,
that 12% be restricted to and affordable to
moderate income households; and 8% 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. - 01, 2001)
20.125.020 Definitions.
Whenever the following terms are used in this
chapter, they shal'_ 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.
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.
(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, a5fordability 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.
(f) "Density bonus (new residential
construction) For the purposes of this chapter,
"density bonus" means a density increase of at
least twenty-five (25%) 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..
(1) For a for-sale unit, allowable housing
expenses include loan principal and interest at
the time of initia2 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 Regclations 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
(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
return for the provision of certain desired types
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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 afforcable to persons of low-income
and no more than 12% affordable to persons of
lower-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 procecures used by the City of South
San Francisco Economic and Community
Development dep~,xtment.
(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 median income for San
Mateo County as determined annually by the
U.S. Departmen; of Housing and Urban
Development Section 8 Income Limits.
(m) "Lower-to-Moderate-Income household"
means households whose gross income is
between eighty-one percent (81%) and one
hundred and twenty percent (120%) of the
median income for San Mateo County as
determined annually by the U.S. Department of
Housing and Urban Development.
(n) "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. "Low-
income household" means those household
whose gross income is more than fifty percent
(50%) but does not exceed eighty (80%) of the
median income for San Mateo County as
determined by annually by the U.S. Department
of Housing and Urban Development.
(o) "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.
(p) "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.
(q) "Target income level" means the income
standards for extremely low, very low and low-
income levels within San Mateo County as
determined annually by the U.S. Department of
Housing and Urban Development, and adjusted
for family size.
(r) "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 01 2001)
20.125.030 Inclusionary Housing
Requirement.
The inclusionary housing requirements of this
chapter shall apply as follows:
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(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.
Co) 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 apa:tments to condominiums;
date of this ordinance, as set forth in Section
20.125.160 of this chapter. (Ord. -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 inclusionary housing plan with the
application for development. This inclusionary
housing plan 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:
(2) Conversion of a mobilehome park
pursuant to Sectio a 21.37.120 of the code;
(1) The number of market rate units in the
master plan or specific plan;
(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 resiCential 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;
(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) Second dwelling units not constructed to
fulfill inclusionary housing requirements and
developed in accordance with this Chapter;
(5) Those residential units which have
obtained approval of a Vesting Tentative Map or
a Development Agreement prior to the effective
(4) A general provision stipulating that an
affordable housing agreement shall be made a
condition of all future discretionary permits for
the development area such as tentative maps,
parcel maps, planned unit developments and site
development plans. The provision shall establish
that all relevant terms and conditions of any
affordable housing agreement shall be filed and
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recorded as a restr_'ction on the 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 existir_g 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 01 2001)
20.125.040 Affordable Housing Standards.
The affordable ho asing standards are as follows:
(a) All residential developments are subject
to and must sat:_sfy the inclusionary housing
requirements of t:ds chapter, notwithstanding a
developer's request to process a residential
development under other program requirements,
laws or regulatior_s, including but not limited to
Chapter 20.130 (_Residential Density Bonus) of
this code.
(b) Unless otherwise provided in this
Chapter, inclusior_ary 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 f'_nal 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. 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. 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) 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 thirty (30) years. For-sale units
may be sold at market price under the conditions
in (t3 through (h) of this section.
(13 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
the City. The resulting price shall be the Base
Resale Price of the unit.
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(g) Upon resale of the unit, if the Affordable
Unit is sold at market price, 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 desigr_ 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 developrnent standards prepared by the
Department of Economic and Community
Development as adopted by the City Council.
(k) Inclusionazy projects shall provide a mix
of number of 3edrooms in the affordable
dwelling units in :esponse to affordable housing
demand priorities of the City and shall provide a
distribution of affordable units within the
designated afford~.bility range.
(1) No building permit shall be issued, nor
any development approval granted for a
development which does not meet the
requirements of -.his chapter. No inclusionary
unit shall be rented or sold except in accordance
with this chapter. (Ord 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 units
for both market rate and inclusionary units of .5
will be subject to payment of the in-lieu fee for
the proportionate amount of the fractional unit.
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 Director of Economic and
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Community Development and included in the
request for any waiver of the construction of new
inclusionary units.
(2) Alternatives may include, but are not
limited to, acqu:'.sition 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 th~.n a total of fifteen (15) second
dwelling units irt 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 contribuSon shall be calculated in the
same manner as an in-lieu fee per Section
20.125.110. (Ord 01 2001)
20.125.080 Combined Inclusionary Housing
Projects.
An affordable housing requirement may be
satisfied with offs'_te 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 resultir_g 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,
(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
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
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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 O1 2001)
20.125.100 Offsets To The Cost Of Affordable
Hous'ng 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 elemen:; the capability of the
development term; 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
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:
(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
market-rate 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
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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.
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;
(f) An altemaSve to paying an in-lieu fee(s),
inclusionary housing requirements may be
satisfied either through a combined inclusionary
housing project, l:ursuant to Section 20.125.080
of this chapter or new construction of
inclusionary units subject to approval of the final
decision-making authority. (Ord 01 2001)
20.125.120 Collection Of Fees.
(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
City. Justification for each request should also be
included.
,7
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 -~rovision of affordable housing
and reasonable costs of administration consistent
with the policies and programs contained in the
housing element of the general plan. (Ord
01 2001)
20.125.130 Prelirninary 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 appl:'cation to the housing and
redevelopment di:ector prior to the submittal of
any formal applications for such housing
(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
community development director 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 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
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executing an affordable housing agreement
prepared by the City Economic and Community
Development Director 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 t'~an those permitted by right, if
any, shall be reviewed by the Director of
Economic and Community Development and
approved by the Director or his designee.
(b) Agreemen:s 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 si~e development plan shall be
recorded agains; 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 projec: individual lots or units of
property which are designated for the location of
affordable units.
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
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;
(d) The approval and execution of the
affordable housirg 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
(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;
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FAReso and Ord\12 December 200PtDecember 12, 2001\Ord 1303 01.doc
(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 inc'_usionary housing requirement
will be satisfied thi'ough 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 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 SectSon 20.125.035 (cp.
20.125.155 Period of Affordability
The City or its designee shall have a one-time
first right of refasal to purchase any project
containing affordable units offered for sale at the
end of the minirr_um tenure of affordability for
rental projects. The first right of refusal to
purchase the rental project shall be submitted in
writing to the Director of the Department of
Economic and Co:xtmunity Development. Within
ninety days of its receipt, the City shall indicate
its intent to exerc:'.se the first right of refusal for
the purpose of providing affordable housing.
(Ord __01 2001 )
20.125.160 Pre-existing Approvals.
The following projects shall not be subject to
requirements of the ordinance codified in this
chapter.
(ap Any residential developments for which
an application for a vesting tentative map has
been deemed complete unless otherwise
authorized by law.
(bp 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 01 2001)
20.125.165 Enforcement.
Enforcement provisions are as follows:
(ap 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.
(bp 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.
(c) 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
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1
shall be added to the City's housing trust fund.
(Ord 01 2001)
20.125.170 Savings Clause.
All code provisions, ordinances, and parts of
ordinances in con_qict 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 skall 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
01 2001)
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