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HomeMy WebLinkAboutORD 1670-2025 (25-278)City of South San Francisco • City Council Ordinance: ORD 1670-2025 P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File Number: 25-278 Enactment Number: ORD 1670-2025 ORDINANCE AMENDING THE SOUTH SAN FRANCISCO MUNICIPAL CODE TO ADD CHAPTER 8.100 (LOCAL PREFERENCES AND REQUIREMENTS) TO TITLE 8 TO DEFINE A PREFERENCE POLICY REQUIREMENT FOR HOUSING UNITS REGULATED BY THE CITY OF SOUTH SAN FRANCISCO IN ORDER TO PRIORITIZE HOUSING APPLICANTS WHO LIVE AND/OR WORK IN THE CITY. WHEREAS, the 2023-2031 City of South San Francisco Housing Element documents the increase in displacement pressures in the City, noting "[n]early the entire city is vulnerable to displacement" and noting that one of the sources of the pressure is that "the growth in jobs in South San Francisco has vastly outpaced the growth in the housing stock over recent decades;" WHEREAS, pursuant to Government Code the mandate of affirmatively furthering fair housing, housing needs and in access to opportunity; Section 8899.50, cities and counties are tasked with which includes addressing significant disparities in WHEREAS, pursuant to Government Code Section 7061, California has recognized residential preferences as a legitimate anti -displacement policy; WHEREAS, according to the 2019 South San Francisco General Plan Update (Transportation Element), a person commuting into the City on average spends more than two hours traveling to and from work; WHEREAS, reducing the jobs -housing imbalance by creating opportunities for people to live near where they work can reduce commute times and related traffic congestion; WHEREAS, the City's local preference will provide income -eligible households who live or work within the City a priority when applying to rent or purchase available affordable residential units provided pursuant to the City's inclusionary housing program or density bonus program or provided as a condition of financial or other support by the City for the new construction, substantial rehabilitation, or acquisition of the residential development; and WHEREAS, the City has conducted a fair housing analysis of the local preference policy and concluded that the local preference is necessary to achieve a substantial, legitimate governmental interest to protect existing residents from displacement, offer residents who have previously been displaced an opportunity to return, and prioritize expanding residential opportunities for households who have to commute to the City for work; City of South San Francisco File Number: 25-278 Enactment Number: ORD 1670-2025 WHEREAS, within 90 days of adoption of this ordinance, the City will create a webpage on its website containing this ordinance and supporting materials, in compliance with Government Code Section 7061.1; Now, therefore, the City Council of the City of South San Francisco does ordain as follows: Section 1. Findings. The City of South San Francisco City Council hereby finds as follows: A. General findings. a. The foregoing recitals are true and correct and made part of this Ordinance. b.Approval of this Ordinance is not a project for purposes of the California Environmental Quality Act pursuant to Public Resources Code Section 21065 because it is not an activity which may cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change int eh environment. c.The local preference is necessary to achieve a substantial, legitimate governmental interest to protect existing residents from displacement, offer residents who have previously been displaced an opportunity to return, and prioritize expanding residential opportunities for households who have to commute to the City for work and there is not a feasible, alternative local policy that would be equally effective in preventing displacement that has less potential of having a discriminatory impact under applicable fair housing laws, including the California Fair Housing and Employment Act. Section 2. Amendment of Title 8.100 of the South San Francisco Municipal Code to Add Chapter 8.100 (Local Preferences and Requirements). The City Council hereby adds Title 8, Chapter 8.100 ("Local Preferences and Requirements") to the South San Francisco Municipal Code to read as follows. § 8.100.001. Purpose and Intent. The purpose and intent of this chapter is as follows: A. As established by the 2023-2031 Housing Element, increasing housing costs create displacement pressures impacting existing lower and moderate -income residents. The Housing Element documents the increase in displacement pressures, or the involuntary relocation and/or exclusion of residents from the City. As provided in the Housing Element, "[n]early the entire city is vulnerable to displacement" and noting that one of the sources of the pressure is that "the growth in jobs in South San Francisco has vastly outpaced the growth in the housing stock over recent decades." B. According to the 2022 5-year data from the American Communities Survey, for South San Francisco renter households earning less than or equal to $75,000, there was a gap of 1,730 affordable rental housing units and the income required to affordably purchase a median priced home in South San Francisco was $333,000; the median renter income was $94,000. C. Increasing housing costs also create barriers to housing for lower and moderate -income people who work in the City and want to live within the City. There is a job -housing imbalance in the City that has resulted in insufficient affordable housing, displacement pressures caused by competition for available housing, long commutes, and traffic congestion. According to the 2019 South San Francisco General Plan Update (Transportation Element), a person commuting into the City on average spends more than two hours traveling to and from work. City of South San Francisco File Number: 25-278 Enactment Number: ORD 1670-2025 D. Pursuant to Government Code Section 7061, California has recognized residential preferences as a legitimate anti -displacement policy. The local preference will mitigate the potential displacement impact of development in the City by providing existing City residents opportunity to afford housing within the City and so reducing displacement of existing residents. The local preference will also mitigate the negative impacts of the job -housing imbalance by providing the opportunity for people working within the City to live near their workplaces, mitigating the negative environmental and traffic impacts of long commutes. § 8.100.002. Applicability of Local Preference Requirement. A. For purposes of this Chapter, "affordable residential unit" is a dwelling unit that is subject to a deed restriction, regulatory agreement, or other agreement between the City and owner to satisfy the requirements of Chapter 20.380 (Inclusionary Housing Regulations), Chapter 20.390 (Bonus Residential Density), the terms of City financing, City land disposition agreement, or terms other financial support from the City. B. The preferences described in Section 8.100.003 shall apply to the following residential unit(s), unless the preferences are demonstrated to violate fair housing laws: 1.Affordable residential units provided to meet the inclusionary housing requirements of Chapter 20.380 (Inclusionary Housing Regulations); 2.Affordable residential units provided to qualify a project for a density bonus pursuant to Chapter 20.390 (Bonus Residential Density); 3.Affordable residential units that receive financing, land, or other financial support from the City for new construction, substantial rehabilitation, or acquisition of the affordable unit(s). C. The Economic and Community Development Director may from time to time adopt guidelines with regards to procedures for qualifying applicants for the local preference, monitoring, relevant administrative provisions, and means of compliance with the requirements of this Chapter. § 8.100.003. Local Preference A. When selecting tenants or homebuyers for affordable residential unit(s) subject to the requirements of this Chapter, owners of the affordable residential unit(s) shall implement a preference policy prioritizing the selection of applicants who meet any of the following requirements: Lat least one member of the applicant household performs at least 20 hours of work within each calendar week for an employer within the City; 2.at least one member of the applicant household currently resides within the City; 3.at least one member of the applicant household has previously resided in the City; 4.at least one member of the applicant household has received and accepted a bona fide offer of employment within the City. B. The preference policy shall be included as a term in the regulatory agreement or other agreement between the City and the owner of the affordable residential unit(s). Prior to offering the affordable residential unit for sale or for rent, the owner must provide a marketing plan which describes the project's procedures for providing preferences as required and for determining that potential renters and homebuyers are entitled to the preferences required by this Chapter. City of South San Francisco File Number: 25-278 Enactment Number: ORD 1670-2025 C. A household shall demonstrate eligibility for the local preference by providing documentation as required in the guidelines adopted by the Economic and Community Development Director pursuant to Section 8.100.002(C). § 8.100.004. Term of Local Preference Requirement. During the term of affordability required under Chapter 20.380 (Inclusionary Housing Regulations), Chapter 20.390 (Bonus Residential Density), or regulatory period imposed as a condition of the financing, land disposition, or other financial support from the City, as applicable, the preference shall be implemented whenever an affordable residential unit subject to this Chapter is made available for rent or sale. § 8.100.005. Enforcement. A. The provisions of this chapter shall apply to all owners and their agents, successors and assigns of affordable residential units governed by this Chapter. B. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Chapter. In the event the City must institute legal action to enforce the provisions of this Chapter, the City shall be entitled to recover its administrative costs, including reasonable attorneys' fees, in addition to any other remedy provided by the court. Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, including the application of such section, subsection, sentence, clause, or phrase to other persons or circumstances, and the remaining portions of this Ordinance shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. Section 4. 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 (30) days from and after its adoption. At a meeting of the City Council on 3/26/2025, a motion was made by Councilmember Nicolas, seconded by Councilmember Coleman, that this Ordinance be adopted. The motion passed. City of South San Francisco File Number: 25-278 Enactment Number: ORD 1670-2025 Yes: 5 Mayor Flores, Vice Mayor Addiego, Councilmember Nagales, Councilmember Coleman, and Councilmember Nicolas Attest by U- ro;a Govelh Acosta, City Clerk l � Eddie City of South San Francisco