HomeMy WebLinkAboutReso 146-2018 (18-851)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 146 -2018
File Number: 18 -851 Enactment Number: RES 146 -2018
RESOLUTION ADOPTING IN LIEU FEE UNDER
INCLUSIONARY HOUSING ORDINANCE.
WHEREAS, the City of South San Francisco ( "City ") has adopted its 2015 -2023 Housing Element to the
City General Plan, the objective of which is to ensure that all residential development, including all
master planned and specific planned communities, provide a range of housing opportunities for all
identifiable economic segments of the population, including households of extremely low, very low,
lower and moderate income; and
WHEREAS, the City has found and determined that in order to provide sufficient affordable housing to
achieve the City's goal of providing a full range of affordable housing options to residents of the City, in
accordance with the standards established in the City's General Plan, Housing Element, and other
applicable plans and regulations, residential development projects must provide inclusionary housing
units, or provide alternative means of compliance, in order to mitigate the impacts of these residential
development projects on affordable housing in the City; and
WHEREAS, the City has adopted an Inclusionary Housing Ordinance, as set forth in Chapter 20.380 of
the Municipal Code ( "Inclusionary Housing Ordinance "), in order to satisfy the foregoing goals and
objectives with respect to affordable housing; and
WHEREAS, the Inclusionary Housing Ordinance requires that residential developments of five or more
dwelling units include a specified percentage of affordable units within those residential developments
( "Inclusionary Units "); and
WHEREAS, the Inclusionary Housing Ordinance provides that an applicant for a residential
development may, at the sole discretion of the applicant, elect to pay a fee to the City in lieu of the
construction of new Inclusionary Units ( "In Lieu Fee "), to be paid at the time a building permit is issued
for the residential development; and
WHEREAS, the Inclusionary Housing Ordinance provides that all In Lieu Fees shall be deposited in a
housing trust fund of the City, to 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 City General Plan; and
WHEREAS, the purpose of the In Lieu Fee is to establish a feasible means by which developers of
residential developments can assist in increasing the City's supply of affordable housing, without the
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File Number. 18 -851
construction of Inclusionary Units themselves; and
Enactment Number., RES 146 -2018
WHEREAS, the Inclusionary Housing Ordinance provides that the amount of the In Lieu Fee to be paid
for each required Inclusionary Unit shall be determined by resolution of the City Council from time to
time; and
WHEREAS, the City has obtained a study from Century Urban on January 4, 2018, which analyzed
three potential options for calculation of an appropriate In Lieu Fee; and
WHEREAS, one of the options analyzed by the Century Urban In Lieu Fee study was the price that a
developer of a residential development would pay to the City to substitute a market rate dwelling unit for
an Inclusionary Unit, while maintaining the same amount of developer profit for the residential
development; and
WHEREAS, the foregoing option is fair and appropriate because it provides developers of residential
developments who do not desire to construct and sell or maintain inclusionary units the option to pay a
revenue - neutral fee that will neither provide an economic incentive for developers to pay the In Lieu Fee
instead of constructing Inclusionary Units, nor impose a financial penalty on developers who choose to
pay the In Lieu Fee rather than constructing hiclusionary Units; and
WHEREAS, the Century Urban In Lieu Fee study determined that the price that a developer of a
residential development would pay to the City to substitute a market rate dwelling unit for an
Inclusionary Unit is $308,000 per required Inclusionary Unit; and
WHEREAS, the approval of this resolution is exempt from the California Environmental Quality Act
(Public Resources Code §§ 21000 et seq., "CEQA," and 14 Cal. Code Reg. §§ 15000 et seq., "CEQA
Guidelines "). This action is not a project within the meaning of CEQA Guidelines Section 15378 and
Section 15061(b)(3), as it is has no potential for physical effects on the environment because it involves
an adoption of certain fees and/or charges as an alternative to construction of inclusionary units under
Chapter 20.380 of the Municipal Code, does not commit the City to any specific project, and said fees
and /or charges are applicable to future development projects and/or activities, each of which future
projects and/or activities will be subject to independent environmental review, if required by CEQA, at
the earliest possible time prior to approval. (See CEQA Guidelines, Section 15004(b)(1)). Therefore,
approval of the fees and/or charges is not a "project" for purposes of CEQA, pursuant to CEQA
Guidelines, Section 15378(b)(4); and, even if considered a "project' under CEQA, is exempt from
CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty
that there is no possibility that approval of the fees and/or charges may have a significant effect on the
environment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco, that
the amount of the In Lieu Fee pursuant to Section 20.380.011 of the Inclusionary Housing Ordinance is
hereby established at $308,000 per required Inclusionary Unit, which shall be adjusted annually for
inflation each July 1 using the Case Shiller Home Price Index for the San Francisco - Oakland- Fremont
Metropolitan Statistical Area, which includes San Mateo County, or another reasonable successor index
as determined by the director of Economic Community Development.
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File Number: 18 -851
Enactment Number: RES 146 -2018
BE IT FURTHER RESOLVED by the City Council of the City of South San Francisco that it hereby
authorizes the Economic and Community Development Director, or his or her designee, to implement
and administer the collection of payments of the In Lieu Fee and the deposit of In Lieu Fees in the City's
housing trust fund.
At a meeting of the City Council on 9/12/2018, a motion was made by Mark Addiego, seconded by Karyl
Matsumoto, that this Resolution be approved. The motion passed.
Yes: 4 Mayor Normandy, Mayor Pro Tern Matsumoto, Councilmember Gupta, and
Councilmember Addiego
Absent: 1 Councilmember
by
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