HomeMy WebLinkAbout2000-01-19; Planning Commission; ; ZCA 99-08|LCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENTA he City of CARLSBAD Planning Departmen,
A REPORT TO THE PLANNING COMMISSION
ItemNo.@
Application complete date: N/ A
P.C. AGENDA OF: January 19, 2000 Housing & Redevelopment Staff: Craig Ruiz
Project Planner Scott Donnell
SUBJECT: ZCA 99-08/LCPA 99-06 -INCLUSIONARY HOUSING ORDINANCE
AMENDMENT -Request for a Zone Code Amendment and a Local Coastal
Program Amendment to amend Chapter 21.85 of the Municipal Code regarding
inclusionary housing requirements.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 4708
RECOMMENDING APPROVAL of the Negative Declaration and Planning Commission
Resolutions No. 4709 and 4710 RECOMMENDING APPROVAL of ZCA 99-08 and LCPA
99-06 based upon the findings contained therein.
II. INTRODUCTION
Proposed are amendments to the Zoning Ordinance and Local Coastal Program to revise
inclusionary housing requirements, or the standards by which new residential development must
provide housing affordable to lower income households. Staff recommends approval of the
proposed changes as they are consistent with the General Plan and Local Coastal Program.
III. BACKGROUND
In 1993, the Inclusionary Housing Ordinance became effective to implement the City of
Carlsbad's lnclusionary Housing Program. The City's Inclusionary Housing Program requires
that 15 percent of all residential units developed within Carlsbad be affordable to lower income
households, specifically to those households with gross household incomes equal to or less than
80% of the San Diego County Area Median Income (AMI).
In implementing the Inclusionary Housing Ordinance over the past six years, staff has discovered
that with regard to some aspects of the Ordinance the proposed revision would facilitate the
practical implementation of the Inclusionary Housing Program. Secondly, a Housing Element
Self-Certification Pilot Program was recently established for San Diego County. The Carlsbad
City Council has authorized staff to proceed with efforts to qualify for self-certification during
the next Housing Element cycle (2004-2009). Revisions to the Inclusionary Housing Ordinance
will assist in the City's effort to qualify for self-certification since the revisions parallel self-
certification policies. Finally, some alternatives for providing affordable housing, such as
Second Dwelling Units, have been the subject of much debate and require resolution through
revisions to the Inclusionary Housing Ordinance.
0
ZCA 99-08/LCPA 99-06 -1NCLUSIONARY HOUSING ORDINANCE AMENDMENT
January 19, 2000
Pa e2
IV. ANALYSIS
On August 12, 1999, the Housing Commission reviewed the proposed rev1s1ons to the
Inclusionary Housing Ordinance as recommended by staff. The information below discusses in
detail the primary proposed revisions to the Ordinance as recommended by the Housing
Commission. The remaining changes are primarily administrative in nature or delete repetitive
sections of the existing ordinance. A copy of the Legislative Draft of the proposed Zone Code
Amendment, highlighting the proposed revisions, is attached as Attachment A.
Definition Additions/Revisions:
Extremely Low Income -Under the existing Housing Element Regional Share Allocation system,
the City is required to provide affordable housing in four income categories. These categories
include very low, low, moderate, and above moderate income. Under the new Housing Element
Self-Certification Program requirements are established for the income categories of extremely
low, very low, and low income households. Because the current Inclusionary Housing
Ordinance does not contain a definition for extremely low income, a definition has been proposed
for addition. Extremely low income is defined by a household whose annual income is 30% of
the Area Median Income (AMI) or below.
Low Income Rent -A monthly rental rate affordable to low income households is currently
defined as I/12th of 30% of 80% of AMI. When the Inclusionary Housing Ordinance was
originally adopted, the City decided to set the low income rental rate at the subject level (30% of
80%) because it was the maximum acceptable to obtain credit for producing a low income
affordable housing unit. With over six years of experience in implementing the Inclusionary
Housing Ordinance, the City has discovered that the acceptable affordable rents (at 80%) are
often equal to, and sometimes higher than, market rents within the community. In order to ensure
that the Inclusionary Housing Ordinance is actually providing a unit which is more affordable to
low income households, staff is proposing to define Low Income Rent as I/12th of 30% of 70%
of AMI. For a two bedroom unit, this would reduce the current maximum affordable rent from
$1,050 to $919. It should be noted that the new affordability level applies to rentals only. The
affordability level for a for-sale product shall remain at the original 80%.
Offsets and Incentives -The Inclusionary Housing Ordinance in effect at this time uses the terms
"offsets" and "incentives" interchangeably. In the new Ordinance, staff proposes to more
differentiate the two terms. Offsets are to be defined as direct financial incentives, density
increases, standards modifications, and/or other financial, land use or regulatory concessions.
Incentives are to be defined as an actual reduction in the inclusionary housing requirement in
return for the provision of certain preferred types of affordable housing or related amenities as
determined appropriate, and approved, by the City Council. For example, if a developer agrees
to produce housing units which all have 3 bedrooms or more and/or are affordable to households
at 50% of the AMI, they may be eligible to reduce their inclusionary housing requirement from
15% to 10%. This would be a negotiated agreement based on the needs and/or desires of the City
of Carlsbad as related to affordable housing. The reason for this consideration is related to the
new Housing Self-Certification Program and the fact that it allows the City to receive additional
credit for certain types of housing or lower level of affordability. The City would pass that credit
on to the developer as deemed appropriate by the City Council.
ZCA 99-08/LCPA 99-06 -11'1CLUSIONARY HOUSING ORDINMCE AMENDMENT
January 19, 2000
Pa e3
Applicability of Provisions:
Construction Requirement -Today, all projects which propose seven or more units are required
to ensure that 15 percent of the units constructed (rental or for-sale) are affordable to low income
households. This means that some projects have a very small requirement (e.g. 1 to 10 units).
Small affordable housing projects are difficult to finance. To date, these smaller requirements
have been met through the provision of second dwelling units (under the existing ordinance
requirements), or through the purchase of housing credits from the Villa Loma Affordable
Apartment project (as permitted). Currently, only those projects located in the southeast or
southwest quadrant of the City are allowed to purchase housing credits from the Villa Loma
Project. Typically, projects with a requirement of 10 affordable units or less have had their
requests to purchase housing credits in Villa Loma approved by the City Council with little
discussion.
There are no qualified combined projects with excess affordable units in the northern half of the
City. Therefore, projects in the northeast or northwest quadrants of the City do not have an
option to purchase housing credits. They must build units. Typically, these developers or
property owners have chosen to construct second dwelling units.
Over the past year or more, both the Planning and Housing Commissions have expressed concern
about the use of second dwelling units to meet the requirements under the Inclusionary Housing
Ordinance. The concern has been that the units are not required to remain available as a rental
unit on the open market and that there are no income qualifications for the person's living within
the unit. Because of the concerns expressed by the two Commissions and the reality that there are
few other options for projects with small affordable housing requirements, staff proposed, and
the Housing Commission concurred, that the requirement to actually produce units be increased
to a higher level. The Housing Commission is recommending that the Inclusionary Housing
Ordinance be modified to require the construction of affordable housing units only when the size
of the total housing project is more than 50 units. If the housing project is 50 units or less, which
means that the affordable housing requirement will be 7 units or less, the developer/property
owner will have the option of paying the Housing In-Lieu Fee. Staff anticipates that this will
result in fewer Second Dwelling Units. However, if second dwelling units continue to be
proposed to meet an Inclusionary Housing Requirement, then they will need to meet the new
restrictions set forth below.
Second Dwelling Units -As mentioned above, under existing policy, a Second Dwelling Unit is not
required to be rented and the tenants do not need to meet maximum income requirements. Simply
stated, if the unit is rented, existing policy only requires the unit be rented at a rate affordable to
lower income households (1112th of 30% of 80% of AMI). The reason for this policy is primarily
related to enforcement. It would be extremely difficult to effectively monitor the operations of
individual homeowners as related to the rental of second dwelling units. Therefore, the City took
the policy position that second dwelling units are affordable simply by the fact that they are small
(less than 640 square feet), and they meet an affordable housing need for elderly parents, domestic
help, college students, etc.
Due to recent concerns raised by the Housing and Planning Commissions and the fact that the City
Council has already made the decision to participate in the program to qualify for Housing Element
ZCA 99-08/LCPA 99-06 -11'1CLUSIONARY HOUSING ORDINANCE AMENDMENT
January 19, 2000
Pa e4
Self-Certification, staff proposed changes to the Inclusionary Housing Ordinance which would
revise the policy position on the use of second dwelling units to meet the City's affordable housing
requirements. Under the Housing Element Self-Certification requirements, second dwelling units
count only if the units are rented at an affordable housing cost to a low income household. This
. means that the tenants must be income-qualified.
Because there may remain situations where the only practical option for meeting the Inclusionary
Housing requirement is through the provision of second dwelling units, the Housing Commission is
recommending that second dwelling units still be permitted to satisfy the requirements of the
Inclusionary Housing Ordinance. With the proposed revision, however, if second dwelling units
are used to satisfy the requirements of the Inclusionary Housing Ordinance, they must be rented at
an affordable rate to a low income qualified tenant.
Affordable Housing Standards:
Affordable Tenure -Under Housing Element Self-Certification, greater credit is earned when
projects have a regulatory requirement which maximizes the term of affordability. The greatest
credit is earned for projects which are restricted for 55-years or longer. Projects developed under
the current ordinance state that projects will be affordable for a minimum of 30 years, or for the
useful life of the project. In practice, all projects have been deemed to have a useful life of 55
years and have been so restricted. The proposed revisions to the Ordinance will change the
standard to reflect the current practice of restricting units for a 55-year period.
Maximum Affordable Rent within a Mixed Income Project-As stated above, at the current rental
standard for low income households (1112th of 30% of 80%), the rent for a low income
affordable unit may be equal to or greater than the market rate rent for a comparable unit. Staff
has proposed that the rental standard for a low income affordable unit be reduced to 1112th of
30% of 70% of the AMI. Staff is also proposing that within a mixed income rental project, the
maximum affordable rent be further restricted to require that the rental rate be the lesser of
1112th of 30% of 70% or 90% of the market rate rent for a comparable unit within the project.
Incentive Credit
As mentioned above, as an incentive to assist the City in providing more desirable types of
housing, developers may receive additional credit (more than one unit) for each unit of more
desirable housing, thereby reducing the total inclusionary housing requirement. For example, if a
developer proposes to provide units affordable to extremely low income households, they may be
eligible to receive additional credit for those units.
Alternative to Construction
Under the current housing element system, the City only receives credit for new construction of
affordable units. Under the new Housing Element Self-Certification Program, a variety of
housing types now receive credit. Examples include acquisition and rehabilitation of existing
units, conversion of existing market rate units to affordable units, construction .of special needs
housing or programs (shelters, transitional housing, etc.), or contributions to a special needs
housing project or program. The Housing Commission is proposing that, at the discretion of the
City Council, such alternatives to new construction may be approved to satisfy an Inclusionary
ZCA 99-08/LCPA 99-06 -lNCLUSIONARY HOUSING ORDINANCE AMENDMENT
January 19, 2000
Pa e5
Housing requirement where the proposed alternative supports specific Housing Element policies
and goals, and assists the City in meeting its housing requirements. Alternatives would only be
acceptable if new construction is infeasible or presents an unreasonable hardship.
Additional Considerations
The City's density bonus ordinance states that the City has the first right of refusal to purchase
housing projects that were developed under the ordinance once their affordability tenure expires.
It is the Housing Commission's recommendation that similar language be included in the
Inclusionary Housing Ordinance for affordable rental projects. In general, 90 days prior to the
expiration of the affordability tenure, the property owner would offer the Housing and
Redevelopment Director the opportunity to purchase the property. The City, or its designee,
would then have 90 days to act upon the offer.
Consistency with the General Plan
The proposed zone code amendment is consistent with the applicable goals and policies of the
General Plan. Proposed changes implement Goal 2 of the Housing Element, which seeks "new
housing developed with a diversity of types, prices, tenures, densities and locations and in
sufficient quantity to meet the demand of anticipated City and regional growth." The revisions
also are consistent with Housing Element provisions requiring an inclusionary housing program.
Moreover, the proposed allowance of alternatives to construction of affordable units as a way to
meet inclusionary requirements -such as the rehabilitation and acquisition of existing units and
construction of shelters -facilitates several Housing Element objectives, policies, and programs.
Finally, the amendment complies with the Land Use Element's residential goal of providing for
" ... a variety of housing types and density ranges to meet the diverse economic and social
requirement of residents ... "
Currently, Carlsbad is updating its Housing Element, a process subject to state certification.
Recently, a pilot program to enable jurisdictions to self-certify their Housing Elements was
established for San Diego County. The Carlsbad City Council has authorized staff to proceed
with efforts to qualify for self-certification during the next Housing Element cycle (2004-2009).
Proposed revisions to the Inclusionary Housing Ordinance will assist the City in its effort to
qualify for self-certification since the revisions parallel self-certification policies. These
revisions are consistent with both the current and draft Housing Elements.
Consistency with the Local Coastal Proeram
The Carlsbad Local Coastal Program (LCP) consists partly of local land use regulations that
include the Zoning Ordinance. The area subject to the LCP is commonly referred to as the
"coastal zone." Because the project amends the Zoning Ordinance and affects residential
development in the coastal zone, it requires a Local Coastal Program Amendment, or LCP A.
LCP As, following City Council action, also require Coastal Commission approval to become
effective.
The coastal zone is divided into six geographic segments. Staff has found the proposed revisions
to inclusionary. requirements are consistent with and will not change the regulations that guide
development and protect the coastal environment. These regulations deal largely with public
ZCA 99-08/LCPA 99-06-11-.J'CLUSIONARY HOUSING ORDINANCE AMENDMENT
January 19, 2000
Pa e6
services and access, agriculture, erosion control, and natural resource protection.
V. ENVIRONMENTAL REVIEW
The Planning Department has conducted an environmental review of the above described project •
pursuant to the Guidelines for Implementation of the California Environmental Quality Act and
the Environmental Protection Ordinance of the City of Carlsbad. As a result of said review, a
Negative Declaration ( declaration that the project will not have a significant effect on the
environment) was issued for the subject project by the Planning Director on October 28, 1999,
and made available for public review. No comments were received on the environmental
document.
ATTACHMENTS:
1. Planning Commission Resolution No. 4 708 (ND)
2. Planning Commission Resolution No. 4709 (ZCA)
3. Planning Commission Resolution No. 4710 (LCPA)
4. Attachment A -Legislative Draft of the proposed Zone Code Amendment highlighting
the proposed revisions
SD:cs:mh
Sections:
21.85.010
21.85.020
21.85.030
21.85.035
21.85.040
21.85.050
21.85.060
21.85.070
21.85.080
21.85.090
21.85.100
21.85.110
21.85.120
21.85.130
21.85.140
21.85.145
21.85.150
•
"Chapter 21.85
INCLUSIONARY HOUSING
Purpose and Intent.
Definitions.
•
Applicability of Inclusionary Housing Requirement.
New Master Plans or Specific Plans.
Attachment A
Affordable Housing Standards. Construction of Required
Inclusionary Units.
Calculating the Required Number of Inclusionary Units.:En-Hea-
Contributions.
Incentive Credit Adjustment to the Inclusionary Requirement.
Inchwi0f1ary Hrn:wing Impact Fee.
Alternatives to Construction of Inclusionary Units.Regulations for
New Master Plans or Specific Plans.
Combined Inclusionary Housing Projects .Regulations for '8dsting
Master Plans and Specific Plans.
Creation of Inclusionary Units Not Required.Regulations for
Residential Subdivisions Not Subject to Master Plans or Specific Plans.
Offsets to the Cost of Affordable Housing Development. RegHlations
for Mobile Home Parks.
In-lieu Fe es.Combmed Inclusionary Housing Projects.
Collection of FeesAffordable Housing Standards.
Preliminary Project Application and Review Process.Incentives to
Offsets to the Cost of Affordable Housing Development.
Affordable Housing Agreement as a Condition of Development.
Preliminary Project Application and Re¥iew Process.
Agreement Processing Fee.
Agreement/Amendments.Inclusion of Affordable Housing Agreement
as a Condition of De¥elopment.
21.85.160 Pre-existing Approvals.Inelusionary Housing Resale Agreement.
21.85 .170 Enforcement.Eligibility Requirements.
21.85.180 Savings Clause.Management and Monitoring.
21.85.190 Separability of Provisions.Collection of Fees.
21.85.200 Separability of Pro,1isions.
21.85.010. Purpose and Intent.
The purpose and intent of this chapter is as follows:
WA. It is an objective of the City, as established by the Housing Element of the City's General
Plan, to ensure that all residential development, including all Master Planned and Specific Planned communities and
all residential subdivisions, provide a range of housing opportunities for all identifiable economic segments of the
population, including households of lower and moderate income. It is also the policy of the City to:
1. Require that a minimum of fifteen (15%) percent of all approved residential
development units in any Master Plan, Specific Plan, or residential subdivision be restricted to and affordable ey to
lower-income households; subject to adjustment based on the granting of certain incentives;
2. Require that for those developments which provide ten or more units affordable to
lower-income households, at least ten (10%) percent of the lower-income units should shall have three or more
bedrooms; and
3. In specific eases, allovt inelusionary requirements to be satisfied through the payment
of an in lieu fee as an alternative to requiring inclusionary units to be constructed on the ground; Under certain
conditions, allow alternatives to onsite construction as a means of providing affordable units;
4. Require existing, unbuilt residential subdivisions and subdivision proposals ,.vith
completed applications as of the effective date of the ordinance to pay a housing impact fee to satisfy the inelusionary
housing requirement In specific cases, allow inclusionary requirements to be satisfied through the payment of an in-
lieu fee as an alternative to requiring inclusionary units to be constructed on the ground;
fb1B. It is the purpose of this chapter to ensure the implementation of the City objective and policy
stated in subsection WA.
(c)C. Nothing in this chapter is intended to create a mandatory duty on Behalf 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.
21.85.020. Defmitions.
Whenever the following terms are used in this chapter, they shall have the meaning established by this section:
WA. "Affordable housing" means housing for which the allowable housing expenses paid by a
qualifying household shall not exceed a specified fraction of the gross monthly income, adjusted for household size,
for the following classes of housing:
1. Extremely low-income, rental or for-sale units: thirty (30%) percent of the gross
monthly income, adjusted for household size, at thirty (30%) percent of the County median income;
W2. Very low-income, unassisted and assisted (state ctnd/or federal) rental and unassisted
and assisted (state andlor federal) for-sale units: thirty (30 % ) percent of the gross monthly income, adjusted for
household size, at fifty (50%) percent of the County median income;
$13. Low-income, unassisted and assisted (state and/or federal) for-sale units: thirty (30%)
percent of the gross monthly income, adjusted for household size, at seventy eighty (80%) percent of the County
median income;
~-Low-income, unassisted and assisted (state andlor federal) rental units: thirty (30%)
percent of the gross monthly income, adjusted for household size, at seventy (70%) percent of the County median
income;
(:i)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.
f:3-)C. "Allowable housing expense" means the total monthly or annual recurring expenses required
of a household to obtain shelter. 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,
2
homeowners association dues and a reasonable allowance for utilities as defined by the Federal Regulations for the
Section 8 Tenant Based Rental Assistance Program. For a rental unit, allowable housing expenses include rent and a
reasonable utility allowance for utilities. as established and adopted by the City of Carlsbad Housing Authority, 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.
(4) "Assisted (state and/or federal)
(5) unit" means a ct-welling unit as defined in Section 50055 of the California Health and
Safety Code.
f:§jD. "Base residential units" means a number of units associated with each Master Plan or
Specific Plan plan phase, or individual de¥elopment ·.vithin a master or Specific Plan or residential subdivision from
which are calculated the lower-income inclusionary units to be provided in conjunction with that Master Plan or
Specific Plan.
E. "Affordable housing policy team" shall consist of the Community Development Director,
Planning Director, Housing and Redevelopment Director, Administrative Services Director/Finance Director, and a
representative of the City Attorney's office.
tfiJF. "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.
fAG. "Conversion" means the change of status of a dwelling unit from a purchased unit to a rental
unit or vice versa.
~H. "Density bonus (new residential construction)" means a minimum density increase of at least
twenty-five (25%) percent over either the Growth Management Control Point of the applicable General Plan
designation, as defined in Section 21.90.045 of this Title, or the otherwise maximum allowable residential density as
specified by the applicable Master Plan or Specific Plan, at the time of application.
(9) facisting Master Plan or Specific Plan" means any Master Plan or Specific Plan
appro·1ed on or before the effecfr;e date of the ordinance codified in this chapter.
I. "Extremely low-income household" means those households whose gross income is equal to
or less than thirty (30%) percent of the median income for San Diego County as determined by the U.S. Department
of Housing and Urban Development.
fWt J. "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, er 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 Carlsbad.
fl-BK. "Growth Management Control Point" shall have the same meaning as provided in chapter
21.90, Section 21.90.045 of this Title.
~L. "Incentives" means a reduction in the inclusionary housing requirement granted in return for
the provision of certain desired types of affordable housing or related amenities as determined by the City Council.
f131M. "Inclusionary housi,ng project" means a new residential development or conversion of existing
residential buildings which has at least fifteen (15%) percent or fr1e percent of the total units reserved and made
affordable to lower-income households or moderate income households, respecfr,,ely, as required by this chapter.
fl-41N. "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.
~O. "Income" means any monetary benefits that qualif.yies as income in accordance with the
criteria and procedures used by the City of Carlsbad Housing and Redevelopment Department for the acceptance of
applications and recertifications for the Section 8 Tenant Based Rental Assistance Program, or its successor.
3
f161P. "Low-income household" means those households whose gross income is more than fifty
(50%) percent but does not exceed eighty (80%) percent of the median income for San Diego County as determined
annually by the U.S. Department of Housing and Urban Development.
~Q. "Lower-income household" means low-income, ffil&-Very low-income and extremely low-
income households, whose gross income does not exceed eighty (80%) percent of the median income for San Diego
County as determined annually by the U.S. Department of Housing and Urban Development.
fl-81R. "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.
(19) "Net d01;elopa-ble acreage (for base residential unit calculations)" means the total number of
acres of a subject property minus those lands considered to be undevelopa-ble, as listed in Section 21.53.230 of this
Code. Vlithin the coastal zone, all environmentally constrained lands identified pursuant to the coastal zoning
ordinances and local coastal programs are considered to be undevelopa-ble and shall be deducted from the total number
of acres of a subject property.
(20). "1'-tew Master Plan or Specific Plan" means any Master Plan or Specific Plan approved after the
effective date of the this ordinance; codified in this cllapter;
S. "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.
T. "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.
(1-BU. "Target income level" means the income standards for extremely >rery low, very low and low-
income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban
Development, and adjusted for family size.
(22) "Unassisted unit" means a dwelling unit regarding 'tvhich no form of assistance has been
received from a public body in the production, occupancy and use of said dwelling unit.
~V. "Very low-income household" means a household earning a gross income equal to fifty (50%)
percent or less of the median income for San Diego County as determined annually by the U.S. Department of
Housing and Urban Development.
21.85.030. Applieability of Inclusionary Housing Requirement.
The inclusionary housing requirements of this chapter shall apply as follows:
fajA. This chapter shall apply to all residential market-rate dwelling units resulting from new
construction of rental and "for-sale" projects, as well as the conversion of apartments to air space condominiums
within:
(1) New Master Plans or Specific Plans (approved after the effective date of this
Ordinance codified in this cllapter);
(2) E~dsting Master Plans or Specific Plans (appro11ed on or before the effecfr,,e date of
this Ordinance) with or without development entitlements (i.e., tentative maps, final maps, building permits);
(3) Residential subdivisions not located within any Master Plan or Specific Plan area; and
(4) Mobile home developments; and
(5) Tentative maps for the conYersion of apartments to air space condominiums.
4
•
B. For any residential development or development revision of more than Se¥€Hfijty (50) units,
not less than fifteen (15%) percent of the total units approved shall be constructed and restricted both as to
occupancy and affordability to lower-income households.
C. For those developments which are required to provide ten or more units affordable to lower
income households, at least ten (10%) percent of the lower income units shall have three or more bedrooms.
WD. Notwithstanding the foregoing, this chapter shall not apply to the following:
1. Those residential units of a project for which building permits have been issued as of the
effective dare of said ordinance;
~1. Existing residences which are altered, improved, restored, repaired, expanded or
extended, provided that the number of units is not increased, hov,•ever, except that this chapter shall pertain to the
subdivision of land for the conversion of apartments to air space condominiums;
2. Conversion of a mobile home 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 application for 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;
~-Any residential unit which is accessory as defined in Section 21.04.020 of this Code,
the dcwelopment of \.Vhich is deemed by the Ci-ty to be in the public interest; or
~ Those residential units for which, consistent with this chapter, an Affordable Housing
Agreement has been approved by the City, and a deed restriction recorded restricting the units as affordable for
households of lov1er income or moderaro income.
5. Second Dwelling Units developed in accordance with Section 21.10.015 of this
Code;
6. Any project or portion of a project which is a commercial living unit as defined in
Section 21.04.093 of this Code; and
7. Those residential units which have obtained affordable housing approvals prior to
the effective date of this ordinance, as set forth in Section 21.85.160 of this chapter.
21.85.035 New Master Plans or Specific Plans
New Master Plans and Specific Plans shall submit an inclusionary housing plan as follows:
A. All Master Plans and Specific Plans approved on or after the effective date of this Ordinance
are required by this chapter to provide an inclusionary housing plan within the Master Plan or Specific Plan
document. 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, as a minimum, but not be limited to,
the following:
1. The total number of base residential units of the Master Plan or Specific Plan;
2. The number of required inclusionary units for lower-income households over the
entire Master Plan or Specific Plan;
3. The designated sites for the location of the inclusionary units, including but not
limited to any sites for locating of/site inclusionary housing projects or combined inclusionary housing projects;
4. A phasing schedule for production of inclusionary units; and
4. A general provision stipulating that an Affordable Housing Agreement shall be
made a condition of all future discretionary pennits for development within the Master or Specific Plan area such as
tentative maps, parcel maps, planned unit developments and Site Development Plans. The provision shall establish
that all relevant tenns and conditions of any Affordable housing Agreement shall be filed and recorded as a
5
restriction 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 21.85.140 of this chapter.
B. The location and phasing of inclusionary dwelling units may be modified as a minor
amendment to the Master Plan pursuant to Section 21.38.120 of this Title if the City Council authorizes such
modifications when approving the Master Plan.
C. All existing Master Plans or Specific Plans proposed for major amendment, pursuant to
Section 21.38.120 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.
21.85.040. Construction of Required InclHsionary Units.
(a) For the following classes of residential prajects or permits, for ·.vhieh the application is deemed complete
on or after the effecti¥e date of this Ordinance, the inclusionary housing requirements for lower income households
shall be satisfied through the construction of new units:
(1) Any residential praject (i.e.; tentative map, tentative map for the conversion of apartments to air
space condominiums, Site De•;elopment Plan, planned unit development, rede·;elopment permit, residential mobile
home park permit or conditional use permit) of se1,'en (7) or more dv;ellin-g units, for vmich the application for said
praject vlas deemed complete on or after the effecfr;e date of this ordinance. Prajects of seven (7) or more dwelling
units, that have been appro•;ed prior to the effective date of this ordinance and that require, as a condition of appro:val,
the processing of subsequent Site Development Plans, shall be subject to the requirements of chapter 21.85.060 and
each dwelling unit will meet the inclusionary requirements by payment of an inclusionary housing impact fee.
(2) Any residential tentative map revision, including a tentative map reyision for the conversion of
a-partments to air space condominiums, of se1,'en (7) or more dwelling units, for which the a-pplication is deemed
complete on or after the effective date of this Ordinance.
(3) Any residential tentatP;e ma-p of seven (7) or more dwelling units, for v;hich the tentative ma-p
a-pplication ·.vas deemed complete on or following the effectiYe date of this ordinance, and is subsequently a-ppro•;ed
for extension after the effeetiYe date of this ordinance.
(4) Any residential planned unit development, Site DeYelopment Plan, conditional use permit,
residential mobile home park permit or redev=elopment permit for seyen (7) or more dv,,ellin-g units, for vmich the
original project application was deemed complete on or following the effectiYe date of this ordinance, and is
subsequently appro•,zed for amendment after the effecfr,,e date of this Ordinance.
(b) Notwithstanding, any contrary pro·,zisions of Sections 21.85.070, 21.85.080, 21.85.090, and 21.85.100,
at the sole discretion of the final decision making authority of the City, the City may determine that an alternatiYe to
the construction of new inclusionary units is acceptable, ·which shall be required to be processed through an Affordable
Housing Agreement, consistent vlith Section 21. 85 .150 of this cha-pter.
(c) In deteflnming the number of inclusionary units that are required ro be built pursuant to the standards of
Section 21. 85. 070 (Nev,x Master/Specific Plans), Section 21. 85. 080 (Existing Master,lSpeeific Plans), Section
21.85.090 (Residential SubdiYisions), and Section 21.85.100 (Mobile Home Parks), fractional units that result from
the formulas contained in these sections may be satisfied by the DeYeloper, at the discretion of the DeYeloper, by
either of the following alternatiYes:
(1) The fractional inclusionary unit shall be treated as a vmole inclusionary unit (i.e.: any resulting
fraction shall be rounded up to the next larger integer) and the inclusionary unit shall be built pursuant to the
proYisions of these sections, or
(2) The fractional inclusionary unit shall not be included in the number of units otherwise required to
be built pursuant to the proyisions of these sections, but the DeYeloper shall pay to the City, within 90 calendar days
of the hearing date granting a-pproval of the requested discretionary permits, an amount of money equal to the fraction
6
times the a>f'erage s=ubsidy needed to make affordable to a l0111er income household, as appropriate, one ne-,,,;rly
constructed typical attached housing unit, as set forth in Section 21. 85. 050 (b) of this chapter.
21.85.040. 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 21. 86 (Residential Density
Bonus) of this Code.
B. Whenever reasonably possible inclusionary units should be built on the residential
development project site. and distributed throughout the de:1,relopment 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 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 or for-sale units may be sold at a market price to
other than targeted households provided that the sale shall result in the recapture by the City or its designee of a
financial interest in the units equal to the amount of subsidy necessary to make the unit affordable to the designated
income group and a proportionate share of any appreciation. 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.
F. 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.
G. The design of the inclusionary units shall be reasonably consistent or compatible with the
design of the total project development in terms of appearance, materials and finished quality.
H. Inclusionary projects shall provide a mix of affordable dwelling units, as to number of
bedrooms, in response to affordable housing demand priorities of the City.
I. 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.
21.85.050. In lieu Contributions.
(a) For the following classes of residential projects or permits, for which the application 1v1as deemed
complete on or after the effective date of this Ordinance, the inelusionary housing requirement for lower mcome
households may be met by the payment to the City of an in lieu fee or other in lieu contributions.
(1) Any residential project (i.e.; tentative map, tentative map for the conversion of apartments to air
space condominiums, parcel map, planned unit development, Site Development Plan, conditional use permit,
7
residential mobile home park permit or redevelopment permit) of six (6) dwelling units or less, for vlhich the
application is deemed complete on or after the effective date of said Ordinance.
(2) Any residential tentative map or parcel map revision, including a tentative map revision for the
conversion of apartments to air space condominiums, of six (6) dwelling units or less, for vlhich the application is
deemed complete on or after the effective date of said Ordinance.
(3) Any residential tentative map or parcel map of six (6) dwelling units or less, for which the map
application vlas deemed complete on or after the effecfrle date of this Ordinance, and is SB:bsequen-tly appro't'ed for
extension after the effecfrre date of said Ordinance.
(4) Any residential planned unit development, Site Development Plan, conditional use permit,
residential mobile home park permit or redevelopment permit for six (6) chvelling units or less, for vlhich the
application is deemed complete on or after the effective date of this Ordinance, and is subsequently appro•red for
amendment after the effecti't'e date of said Ordinance.
(5) De•relopment of 6 (six) or fewer new mobile home pads in a mobile home park, for which the
application is deemed complete on or after the effective date of said Ordinance.
(b) The in lieu fee to be paid for each market rate dwelling unit shall be 15 percent of the subsidy needed to
make affordable to a lower income household one newly constructed, typical attached housing unit. This SB:bsidy shall
be based upon the City's determination of the fl'lerage sa-bsidy that v;ould be required to make affordable ty}Jieal, ne•.v
tv,ro bedroom/one bath and three bedroom/two bath for sale units and two bedroom/one bath and three bedroom/two
bath rental units, each with an asSB:med affordability tenure of at least 30 years.
(c) The dollar amount and method of payment of the in lieu fees shall be fiJEed by a schedule adopted, from
time to time, by resolution of the City Council. Said fee shall be assessed against the market rate units/pads of a
de•relopment.
(d) 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 proYiding 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.
(e) At the discretion of the City Council, 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 in lieu of providing
the required affordable housing units or in lieu fees. 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 DeYeloper. Costs associated ·with the
appraisal shall be borne by the De>reloper.
(f) V.'here an applieant/De•,'eloper is uuthori2;ed to pay a fee in lieu of development of affordable housing
units, approval of qualifying parcel maps, tentative maps, Site DeYelopment Plans, planned unit de>relopments,
residential mobile home park permits, redevelopment permits or conditional use permits listed in subsection
21.85.050(a) shall be conditioned upon a requirement to pay the in lieu fee in an amount established by resolution of
the City Council in effect at the time of payment. •
(g) As an altemati'i'e to paying required in lieu fee(s), inclusionary housing requirements may be satisfied
either through a combined inclusionary housing project, pursuant to Section 21.85.110 of this chapter or new
construction of required inelusionary units, purSB:ant to Section 21.85.040 of this chapter.
21.85. 050. Calculating the Required Number oflnclusionary Units.
Subject to adjustments for incentives, the required number of lower-income inclusionary units shall be
fifteen (15%) percent of all residential units, approved by the final decision-making authority. Fractional unit
requirements of .5 or greater will be rounded up to a whole unit, and FefJuiFements &j less thtt11 .5 will he r0unded
dew,i tfJ zere. or a fractional proportion of the in-lieu fee may be paid.
8
21.85.060. Inclusionary Housing Impact Fee.
(a) For the follo•11ing classes of residential projects, for whiCfl the application is deemed complete before the
effective date of this Ordinance, the inclusionary housing requirement for lo•.ver income households may be met by the
payment to the City of an inclusionary housing impact fee.
(1) Residential projects, of any size, establishing indiYidual lots or dv!'elling units (i.e.: parcel maps,
tentative maps, tentative maps for the conversion of apartments to air space condominiums, Site Development Plans,
planned unit de•;elopments, conditional use permits, residential mobile home park permits, and redeYelopment
permits), for which the application was accepted and deemed complete or appro•!'ed prior to the effectiYe date of this
Ordinance.
(2.) Single family residential projects, (i.e.: parcel maps and tentati;,e maps) of aey size, for whiCfl all
discretionary appro•;als, e~roept Site De•l'elopment Plans, were granted on or before the effeetF;e date of this
Ordinance and Site De•;elopment Plans are subsequefltly required as a condition of the prior approval and are
approved after the effectiYe date of this Ordinance.
(3) l.cny residential tentatiYe map or parcel map revision, including a tentative map reYision for the
conversion of apartments to air space condominiums, of any size, for whiCfl the application Vl'as deemed complete
prior to the effecti¥e date of this ordinance and is appro','ed on, before or after the effective date of this Ordinance.
------(4) Any residential tentatiYe map or parcel map for whiCfl the applicfrtion v;as deemed complete
before the effective date of this Ordinance, v;hiCfl was appro•red on, before or after the effecfr!'e date of this
Ordinance, and is subsequently approved for extension on, before, or after the effective date of this Ordinance.
(5) Any residential plaIIDed unit development, Site Development Plan, conditional use permit,
residential mobile home park permit or redevelopment permit, for whiCfl the application v;as deemed complete before
the effective date of this ordinance, which was appro•red on, before, or after the effecfrre date of this Ordinance, and
is subsequently approved for amendment on, before, or after the effecfrre date of this Ordinance.
(b) Those residential projects whiCfl were approved on or before the effective date of this Ordinance, and for
which a condition of approval was to pay inclusionary in lieu fees shall instead pay a housing impact fee, in
accordance with this Section.
(e) The housing impact fee to be paid for eaCfl market rate dvrelling unit shall be 15 percent of the subsidy
needed to make affordable to a lower income household the market rate rent frt a typical existing apartment for a
period of 30 years. This subsidy shall be based upon the City's determination of the aYerage subsidy that would be
required to make affordable rents for typical one , two , three , and four bedroom apartments. The average subsidy
shall be weighted for the actual demand for housing, by oomber of bedrooms, as determined by the applications for
10'.ver income affordable housing qualified and approved by the City.
(d) The dollar amount of the inclusionary housing impact fee shall be foi:ed by a sCfledule adopted, from time
to time, by resolution of the City Council. Said fee shall be assessed against the market rate units of a development.
(e) The inclusionaf)' housing impact fee shall be paid, as an indi¥idual fee, on a per market rate dv,ielling unit
basis at the _time of building permit issuance, or prior to the recordation of final map and/or issuance of certificate of
compliance for cowrersions of existing apartments to airspace condominiums.
(t) All housing impact 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 pro•riding 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.
21.85. 060. Incentive Credit Adiustment to the Inclusionary Requirement.
Certain types of affordable housing are relatively more desirable in satisfying the City's state mandated
affordable housing requirement as well as the City's Housing Element, goals, objectives and policies, and these may
change over time.
9
As an incentive to assist the City in providing this housing, Developers may receive additional (more than
one unit) credit for each of such units provided, thereby reducing the total inclusionary housing requirement.,
provided that fue total number of unit credifs for fue inclusionary housing is not less than fifteen (15 %) percent of all
residential units approved. A Schedule of Inclusionary Housing Incentive Credit specifying how credit may be
earned shall be adopted by the City Council and made available to Developers subject to this chapter.
21. 85. 070. Regulfrtions for ·New Master Plans or Specific Plans. (Approved after the effec&re date of this Ordinance.)
(a) This chapter requires the following:
(1) Not less than fifteen percent (15 %) of all base residential units in any new Master Plan or Specific
Plan shall be set aside for occupancy by and shall be affordable to lov,r.er income households.
(b) For Ehose de·1elopments which are required to provide ten or more units affordable to 101.ver income
households, at least ten percent of the lower income units shall have three or more bedrooms.
(c) The inclusionary housing requirement for lov;er income households in a new Master Plan or nev,r Specific
Plan may not be met by the payment to the City of an in lieu fee, other in lieu contributions or inclusionary housing
impact fee, 1.vith Ehe exception that any resulting fractional inclusionary unit may be satisfied through the payment of a
fee, as set forth in Section 21. 85. 04 0(c) of this chapter.
(d) All new Master Plans and Specific Plans are required by this chapter to pro:vide an Inclusionary housing
plan 1vviEhin Ehe Master Plan or Specific Plan document. This inclusionary housing plan will include appropriate text,
maps, tables, or figares to establish the basic framev,•ork for implementing the requirements of this chapter. ft shall
establish, as a minimum, but not be limited to, Ehe following:
(1) The total number of base residential units of the Master Plan or Specific Plan;
(2) The number of required inclusionary units for lower income households 0·1er the entire Master
Plan or Specific Plan;
(3) The designated sites for the location of the inclusionary units, including but not limited to any
sites for locating off site inelusionary housing projects or combined inclusionary housing projects;
(4) A phasing schedule for production of inclusionary units; and
(5) A general pro·1ision stipulating Ehat an Affordable Housing l,.greement shall be made a condition
of all furore discretionary permits for development wiEhin the Master or Specific Plan area (i.e. tentative maps, parcel
maps, planned unit de1,relopments and Site De·1elopment Plans). The provision shall establish that all relevant terms
and conditions of any Affordable Housing Agreement shall be filed and recorded as a deed restriction on £hose
individual lots or units of a project vihich are designated for the location of inclusionary units. The Affordable
Housing Agreement shall be consistent ·.viEh Section 21.85.150 of this chapter.
(6) The locfrtion and phasing of inclusionary dwelling units may be modified as a minor amendment
to the Master Plan pursuant to Section 21.38.120 of this Title.
(e) For Ehe purpose of determining Ehe number of required lov.zer income inclusionary units in new Master
Plans and Specific Plans, the following standards shall apply:
(1) The number of required lmver income inclusionary units shall be obtained by the following
formula:
Lower Income Inclusionary units "base" x 0.15.
(t) The base for a new Master Plan or Specific Plan is determined by multiplying the net de>relopable acreage
of the project site times the growth management control point(s) for the project site's applicable general plan
designation(s). If in the course of reviewing a nev,r Master Plan or Specific Plan, the final decision making authority of
the City determines that the base residential yield of the new Master Plan or Specific Plan cannot be achie>red, then Ehe
base shall be equal to the maximum number of units actually approved by the final decision making authority of the
City. If a density bonus is or subsequently becomes awarded, the increased density is not included in the base vihen
determining the number of required inclusionary units relative to the base praject yield.
10
21.85.070. Alternatives to Construction oflnclusionary 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 to the eJttefl:t that the City will obtain credit towards the City's stated mandated affordable housing requirements.
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. Alternatives may include, but not be limited to,
acquisition and rehabilitation of affordable units, conversion of existing market units to affordable units,
construction of second dwelling units and construction of special needs housing projects or programs (shelters,
transitional housing, etc.).
B. Contribution to a special needs housing project or program may also be an acceptable
alternative based upon such findings. The contribution shall amount to the calculation of amount for an in-lieu fee
as set forth in Section 21.85.110.
21.85.080. Regulations for Existing Master Plans and Specific Plans. (Approv=ed on or before the effectiv=e date of
this Ordinance.)
(a) This chapter requires the follo'tving:
(1) Not less than fifteen percefl:t (15 %) of all base residential units in any existing Master Plan or
Specific Plan shall be set aside for occupancy by and shall be affordable to lower income households.
(b) For those dev=elopments v;hich are required to prov=ide ten or fllOre units affordable to lov;er income
households, at least ten percefl:t of the lower income units shall hav=e three or more bedrooms.
(c) AU e1dsting Master Plans or Specific Plans proposed for major amendmefl:t, pursuant to Section 21.38.120
of this Code, shall incorporate into the amended Master Plan or Specific Plan document an Inclusionary housing
plan, consistefl:t with Section 21. 85. 070 (d) of this chapter.
(d) Consistent with Sections 21.85.040 and 21.85.050 of this chapter, certain classes of projects or permits
within an e1dsting Master Plan or Specific Plan may satisfy their inclusionary housing requiremefl:t for lower income
households through the paymefl:t to the City of an in lieu fee or other in lieu cofl:tributions.
(e) Consistefl:t with Section 21.85.060 of this chapter, certain classes of projects or permtts within an e1dsting
Master Plan or Specific Plan may satisfy their inclusionary housing requiremefl:t through the payment of an
inclusionary housing impact fee.
(t) For the purpose of determining the number of required lower income inclusionary units in an existing
Master Plan or Specific Plan, the following standards shall apply:
(1) The number of required lower income inclusionary units shall be obtained by the follov+<ing
formula:
Lower Income Inclusionary units "base" x 0.15.
(g) The base for an existing Master Plan or existing Specific Plan shall be equal to the sum of the maximum
number of dwelling uni-ts permitted under that e1dsting Master Plan or Specific Plan for all phases or individual
developmefl:ts within the existing Master Plan or Specific Plan. If a density bonus is or subsequently becomes a.warded,
the increased density is not included in the base when determining the number of required inclusionary units relative to
the base praject yield. The base for existing Master Plan or Specific Plan phases and dev=elopmefl:ts shall not be less
tllan the maximum number of dv;1elling units permitted for that phase or development in the e1dsting Master Plan or
Specific Plan, except for the following specific development phases of an existing Master Plan or Specific Plan:
11
(1) Vlhere building permits v1ere issued, on or before the effective date of this Ordinance, for the
construction of ne•.v dwelling units approved in a Master Plan or Specific Plan phase or individual development area,
the number of dv;•elling units approved via said permits shall be subtracted from the base as othenvise determined for
that phase or individual development.
(2.) Where a tentatP.'e map or final map (w!iich establishes indi>tidual residential lots or dv,,ening units)
for any phase or individual deYelopment area of a Master Plan or Specific Plan vtas either appro•;=ed, on or before the
effecfr;=e date of this Ordinance, or the application for said tentatiYe map \Yas receiYed and deemed complete by the
Planning Department, before the effecti>re date of this ordinance, and the number of appro•,,ed dwelling units is less
than the maximum number of dweHing units permitted in the Master Plan or Specific Plan, then the base shall be equal
to the number of d>.velling units actually appro•ted on the tentatiYe map or final map for that phase or indi>tidual
development of the Master Plan or Specific Plan.
(3) For aey phase or individual development area of a Master Plan or Specific Plan for vmich a
tentative map (which establishes indh,idual residential lots or dv,zeHing units) has not been deemed complete or
approved, before the effectiYe date of this ordinance, the base shall be equal to the maximum number of dwelling units
permitted under that Master Plan or Specific Plan for that phase or indiYidual development area. If in the course of
revievling a phase or indi>tidual development area of a master or Specific Plan, the final decision making authority of
the City determines that the maximum number of dv;elling units permitted for a phase or indi>tidual de1velopment area
of a Master Plan or Specific Plan cannot be achieved, then the base shall be equal to the maximum number of units
actually appro•ted by the final decision making authority of the City.
(h) An Affordable Housing A.greement shall be made a condition of all future discretionary permits for
deYelopment vtithin the master or Specific Plan area (i.e. tentafrre maps, parcel maps, planned unit developmems and
Site DeYelopment Plans). The rele1rant terms and conditions of the Affordable Housing Agreement shall be filed and
recorded as a deed restriction on those indi>t'idual lots or units of a project vmich are designated for the location of
inclusionary units. The A.ffordable Housing Agreement shall be consistent •.vith Section 21.85.150 of this chapter.
21.85. 080. Combined Inclusionary Housing Proiects.
An affordable housing requirement may be satisfied with offsite construction as follows:
A. When it can be demonstrated by a Developer that the location of inclusionary units onsite is
not feasible, and 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 fonn
a combined inclusionary housing project. 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. Factors to be weighed in this detennination include: the feasibility of the onsite option considering
project size, site constraints, competition from multiple projects, difficulty in integrating due to significant price and
product type disparity, lack of capacity of the onsite development entity to deliver affordable housing. Also to be
considered is whether the offsite option offers greater feasibility and cost effectiveness, particularly, regarding
potential local public assistance and the City's affordable housing financial assistance policy, location advantages
such as proximity to jobs, schools, transportation, services, less an 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 fonn 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.
12
D. Location of the combined inclusionary housing project is limited to sites within the same
City quadrant in which the market-rate units are located, or site which are contiguous to the quadrant in which the
market-rate units are proposed. \¥here the required inclusionary units are located vlithin a master or Specific Plan
area, the first priority for location of the alternati¥e site is within the same master or Specific Plan, followed by the
same Local Facilities Management Zone. hi the event that a Local Facilities Management Zone crosses City
quadrants, the required inclusionary units shall be located within the same City quadrant in which the market rate units
are located.
21.85.090. Regulations for Residential Subdi¥isions Not Subject to Master Plan or Specific Plan.
(a) This chapter requires the following:
(1) Not less than fifteen percent (15%) of all base residential units in any residential subdivision shall
be set aside for occupancy by and shall be affordable to lmver income households.
(b) Consistent vlith Sections 21.85.010 and 21.85.050 of this chapter, certain residential subdivisions may
satisfy their inclusionary housing requirement for lmver income households through the payment to the City of an in
lieu fee or other in lieu contributions.
(c) Consistent v:.rith Section 21.85.060 of this chapter, certain residential subdivisions may satisfy their
inclusionary housing requirement thrnugh the payment to the City of an inclusionary housing impact fee.
(d) For the purpose of determining the number of required lov,er income inclusionary units the following
standards shall apply:
(1) The number of required lower income inclusionary units shall be obtained by the following
formula:
Lo•uer lticome Inclusionary units "base" x 0.15.
(e) For those dev=elopments which are required to provide ten or more units affordable to levier income
households, at least ten percent of the lower income units shall ha>,'e three or more bedrooms.
(f) The base for a residential subdivision is determined by multiplying the net de•,,elopable acreage of the
project site times the grmvth management control point(s) for the project site's applicable general plan designation(s).
If in the course of re:viewing a residential subdivision project, the final decision making authority of the City
determines that the base residential yield of the project site cannot be achieved, then the base shall be equal to the
maximum number of units actually approved by the final decision making authority of the City. If a density bonus is
or subsequently becomes mvarded, the increased density is not included in the base vmen determining the number of
required inclusionary units relative to the base project yield.
(g) Where a residential subdivision was either approved on or before the effective date of this ordinance, or
the application for said residential subdivision v;as recei•;ed and deemed complete by the Planning Department, before
the effective date of this ordinance, and the number of approved dvt'elling units is less than the base number of
dv,elling units achievable, than the base shall be equal to the number of dwelling units acrually approved on the
residential subdivision.
(h) An Affordable Housing Agreement shall be made a condition of the discretionary permits for development
of the residential subdivision (i.e. tentati¥e maps, parcel maps, plallfied unit de•1elopments and Site Development
Plans). The rele:vant terms and conditions of the A.ffordable Housing Agreement shall be filed and recorded as a deed
restriction on those individual lots or units of a project which are designated for the location of inclusionary units. The
Affordable Housing Agreement shall be consistent •.vith Section 21.85.150 of this chapter.
21. 85. 090. Inclusionary Housing Impact Fee.
(a) For the following classes of residential projects, for vmich the application is deemed complete before the
effectiYe date of this Ordinance, the inclusionary housing requirement for lower income households may be met by the
payment to the City of an inclusionary housing impact fee.
(1) Residential projects, of any size, establishing individual lots or dwelling units (i.e.: parcel maps,
tentative maps, tentatr,xe maps for the con•,xersion of apartments to air space condominiums, Site Development Plans,
13
planned 1:1nit dev=elopments, conditional 1:1se permits, residential mobile home park permits, and redevelopment
permits), for which the application 1.vas accepted and deemed complete or approv:ed prior to the effective date of this
Ordinance.
(2) Single family residential projects, (i.e.: parcel maps and tentative maps) of any sine, for which all
discretionary appro11als, eJfCept Site De11elopment Plans, were granted on or before the effectiv:e date of this
Ordinance and Site Dev-elopment ~ans are subseq1:1ently required as a condition of the prior approval and are
appro11ed after the effectiv:e date of this Ordinance.
(3) Any residential tentath•e map or parcel map revision, incl1:1ding a tentative map re1Asion for the
conversion of apartments to air space condominiums, of any sine, for v,zhich the application 1Nas deemed complete
prior to the effective date of this ordinance and is approved on, before or after the effec&1e date of this Ordinance.
(4) Any residential tentative map or parcel map for which the application was deemed complete
before the effec&1e date of this Ordimmce, 1.vhich ·.vas appro,•ed on, before or after the effecth•e date of this
Ordinance, and is subsequently appro11ed for extension on, before, or after the effective date of this Ordinance.
(5) Any residential planned 1:1nit de11elopment, Site Dev:elopment Plan, conditional use permit,
residential mobile home park permit or redev:elopment permit, for ·.vhich the application v1as deemed complete before
the effec&,ze date of this ordinance, which ·uas appro11ed on, before, or after the effectr,•e date of this Ordinance, and
is S1:1bsequently appro11ed for amendment on, before, or after the effectiv:e date of this Ordinance.
21. 85. 090. Creation of Inclusionary Units Not Required.
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 21.85.080.
21.85.100. Regelations for Mobile Home Parks.
(a) This chapter req1:1ires the follovling:
(1) Not less than fifteen percent (15%) of all base mobile home coaches and/or pads in any mobile
home park shall be set aside for occupancy by and shall be affordable to lo1.ver income hoeseholds.
(b) The d011elopment of (6) siJc or fewer new mobile home pads in a mobile home park may meet their
inelusionary housing requirement for 101.ver income households by the payment to the City of an in lieu fee or other in
lieu contributions, consistent ·with Sections 21.85.040 and 21.85.050 of this chapter.
(c) For the perpose of determining the number of required levier income inelusionary enits the following
standards shall apply:
-----(1) The number of required lmver income incrnsionary enits shall be obtained by the following
formula:
Lower Income Inelesionary enits "base" Jc 0.15.
(d) For those de1,,elopments which are required to pro1ride ten or more units affordable to levier income
households, at least ten percent of the levier income enits shall ha11e three or more bedrooms.
(e) The base for a mobile home d011elopment is determined by multiplying the net d01,zelopable acreage of the
project site times the gmwth management control point(s) for the project site's applicable general plan designation(s).
If in the course of r01liev,zing a mobile home project, the final decision making authority of the City determines that the
base residential yield of the project site cannot be achieved, then the base shall be equal to the maximum number of
enits actually appro11ed by the final decision making aethority of the City. If a density bonus is or S1:1bsequently
becomes av,zarded, the increased density is not incl1:1ded in the base when determining the number of required
incl1:1sionary units relative to the base project yield.
14
(t) An Affordable Housing A,greement shall be made a condition of the discretionary permits for
development of the mobile home park (i.e. tentative maps, residential mobile home park permits, or conditional use
permits). The rele¥ant terms and conditions of the Affordable Housing Agwement shall be filed and recorded as a
deed restriction on those individual pads or units of a project vmich are designated for the location of inclusionary
units. The Affordable Housing Agreement shall be consistent with Section 21. 85 .150 of this chapter.
21.85. 100. Offsets to the Cost of Affordable Housing Development.
The City shall in good faith 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.
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 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.
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. Projects are
entitled to density bonuses and/or other incentives in accordance with provisions of state law, pursuant to the
provisions of Chapter 21. 86. of this code. 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
21.85.140 or, at the City's discretion in a subsequent document. Furthermore, Developers are encouraged to utilize
local, state or federal assistance, when available, to meet the affordability standards set forth in Sections 21. 85. 030
and 21. 8. 040.
21.85.110. Combined Inclusiooory Housing Pfojects.
Circumstances may arise from time to time in Vlhich the public interest would be se£¥ed by allowing some or
all of the inclusionary units associated with one residential project site to be produced and operated at an alternafr;e
site or sites. Where the parties in interest to the sites and the City form an agreement to st1ch an effect, the rest1lting
linked project sites shall be considered to be a single combined inclusionary housing project. H is the exclusive
prerogative of the final decision making authority of the City to determine vmether or not it is in the public interest to
authorme the residential sites to form a combined inclusionary housing project.
All agreements bet\veen parties to form a combined inclusionary housing project shall be made a part of the
Housing Agreement (Section 21. 85 .150 of this Code) required for the sites.
21.85. 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 of fifty units or less, the
inclusionary requirements may be satisfied through the payment to the City of an in-lieu fee or other in-lieu
contribution such as land.
B. The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen (15%) percent
of the subsidy needed to make affordable to a lower-income household one newly-constructed, typical attached-
housing unit. This subsidy shall be based upon the City Council's determination of the average subsidy that would
be required to make affordable typical, new two-bedroom/one bath and three-bedroom/two-bath for-sale units and
rental units, each with an assumed affordability tenure of at least 55 years.
15
C. The dollar amount and method of payment of the in-lieu fees shall be fixed by a· schedule
adopted, from time to time, by resolution of the City Council. Said fee shall be assessed against the market-rate
lots/units of a development.
D. 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 units or assistance programs and reasonable costs of administration consistent with
the policies and programs contained in the Housing Element of the General Plan.
E. 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.
F. Where a Developer is authorized to pay a Jee 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
resolution of the City Council in effect at the time of payment.
G. As 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 21.85.080 of this chapter or new construction of-inclusionary units subject to approval of final decision-
making authority.
21.85.120 A.ffenlable heusiB:g standaFds.
(a) NotwithstaHding a Developer's request to process a residefttial prajeet uHder chapter 21.86 (ResideHtial
DeHsity Booos) of 1:Ris code, all resideH:tial prajeets are subjec-t to and must satisfy 1:Re inelusioHary housing
requiremeras of 1:Ris
chapter.
(b) The required iHelusioHary uHits shall be eoHstrueted eoHOUrreftt with Hlaraet rate UH-its unless bofu 1:Re final
deeisioH Hlaking aufuority of 1:Re city aftd Devdoper agree wifuin 1:Re affordable housing agreeffiCHt to aH alternative
schedule for dC't'elopHlCH:t.
(e) IHelusiooory reH:tal uHits shall refflaiH restricted aftd affordable to 1:Re desigHated iHeoffiC group for 1:Re
useful life of 1:Re prajeet or housing uHit, assuffling good faifu efforts to Hlaifttain 1:Re prajeet or housing uHit aHd
rehabilitate it as Heeessary.
(d) After 1:Re initial sale of the iflclusioHary for sale uHits to 1:Re desigHated ineofflC group, inelusioHary for
sale uHits shall refflain affordable for 1:Reir useful life; or if subsequefttly sold at a Hlaraet price to 01:Rer 1:RaH targeted
households, 1:Re sale shall result iH 1:Re reeaptHre of 1:Re city's fiHaHeial interest iH 1:Re uHits, for use iH assisting 01:Rer
eligible households.
(e) InelusioHary uHits should be built OH site aHd wheaever reasoHably possible be distributed 1:Rroughout 1:Re
prajeet site.
(f) In certain eases where a eoHlbiHed inelusioHary housiHg prajeet is proposed, 1:Re inelusioHary uHits Hlay be
provided OH a site separate froffl 1:Re site of 1:Re Hlarket rate uHits. CoHstruetioH of 1:Re iHelusioHary units is limited to
sites ,,vifuin 1:Re SUHlC city quadraftt in \.Vhieh 1:Re Hlarket rate units are located or sites y;hieh are eoatiguous to 1:Re
quadrara iH v;hieh 1:Re HlUrket rate uHits are proposed. \lt'here 1:Re required inelusioHary uRits are located within a
Hlaster or Specific Plan area, 1:Re first priority for loeatioH of 1:Re alternatr;e site is v;ifuin 1:Re same Hlfister or Specific
PlaH, followed by the saffle local facilities ffiUftageffieH:t zoHe. IH 1:Re e,'era that a local facilities maHagemeH:t zoae
16
crosses city quadra-Rts, fue required i-nclusionary units shall be located 1..vifuin fue same city quadrant in which the
market rate units are located.
(g) IHcl!:1sionary H-nits restricted for lo1;;rer income households should be located on sites fuat are in proximity
to or vriH provide access to employment ~porrunities, urban sewices, or major roads or ofuer transportation and
commuter rail facilities (i.e., freevlays, bus lines) and that are compatible with adjacent land uses.
(fl) 'iVith fue apprm,•al of fue final decision making authority of the city, the Developer/applica-Rt may reduce
both fue size and amenities of fue inclusionary units provided fuat all units conform to the requirements of the
applicable building and housing codes. The design of fue inclusionary units shall be reasonably consistent or
compatible v;ith the design of the total project dei;elopment in terms of appearance, materials and finished quality.
---(i) Inclusionary projects shall provide a mix of affordable dwelling units (by number of bedrooms) in
response to affordable housing demand priorities of fue city whenever feasible.
(j) !'fo buildiflg permit shall be issued, nor aey development approval granted for a deilelopment which does
not meet the requirements of this chapter. No inclusionary unit shall be rented or sold e1ccept in accordance 1.vith this
chapter.
(k) In the coastal z;one, any inclusionary housing development processed pursua-Rt to this chapter shall be
consistent with all certified local coastal program pro1lisions, wifu fue e1cception of density.
21. 85. 120. Collection of fees.
All fees collected under this chapter shall be deposited into a Housing Trust Fund and shall be expended
only for the affordable housing needs of lower-income households, and reasonable costs of administration
consistent with the purpose of this chapter.
21.85.130 Incentives to offset fue cost of affordable housing development.
The inclusionary housing regulations established by this chapter are a portion of fue requirements which must
be met by parties wishiflg city approvals for the construction of residential developments in the city. The city sha1l in
good faith consider making available to fue deit'elopment industry i-ncenti¥es or financial assistance to enable residential
projects to provide affordable housing to lov;er income households. lncenti¥es or financial assistance will be offered
by fue city to fue extent fuat resources for fuis purpose are available to fue city and appro1t•ed for such use by fue city
council, and to the extent fuat the residential projects, v;ith fue use of i-ncentii;es or fiflancial assistance, assists in
achieving the city's housing goals. To the degree that the city makes available programs to provide incentwes or
financial assistance to fue development industry, Deit'elopers may make application for such incenti¥es or assistance.
Hov;ever, nothiflg in this chapter establishes, directly or through implication, a right for a De'reloper to recei>re any
assistance or incentive from the city or any ofuer party or agency t<? enable him/her to meet fue obligations established
by this chapter. Projects are entitled to density bonuses and/or other incenti¥es in accordance with provisions of state
lavl, pursuant to fue provisions of Chapter 21.86 of fuis code. Any incenti¥es pro,fided by the fiflal decision making
authority of fue city and fue allovrable housing expenses established by fue final decision making aufuority of fue city
shall be set out within fue affordable housiflg agreement pursua-Rt to Section 21.85.150. Furthermore, Developers are
encouraged to utilize local, state or federal assistance, when 0:1railable, to meet fue affordability standards set forfu in
Section 21.85.020 (1).
21.85. l:4()130. Preliminary Proiect Application and Review Process.
The preliminary project application/review process shall be as follows:
DA. An applicant/Developer of a Residential Development not subjeci to a Master Plan or
Specific Plan, 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
17
to the Planning Housing and Redevelopment Director prior to the submittal of any formal applications for such
housing development. The preliminary application shall should include the following information:
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 incentives (i.e., standards modifications, density
bonus or free SH-bsidies) offsets and/or adjustments are being requested of the City. Justification for each incentive
request should also be included.
bB. Within thirty days of receipt of the preliminary application by the Planning Director for
projects not requesting incenti-¥es of financial assistance offsets or incentive adjustments or ninety days for projects
requesting incenw,es or financial incentives offsets or incentive adjustments the department shall provide to an
applicant/developer, a letter which identifies project issues of concern, the incenfr1es and/or financial assistance offsets
and incentive adjustments that the planning 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.
21.85.140 Preliminary project application and review process.
(a)An applicant/De>1eloper proposing an inclusionary housing project shall SH-bmit a prelim4nary application to the
planning director prior to the submittal of any formal applications for sucli housing development. The preliminary
application shall include the fol101tving information:
(l)A brief description of the proposal including the number of inelusionary units proposed;
(2)The zoning, general plan designations and
assessors parcel number(s) of the project site;
(3)A site plan, drav,'fl to scale, ·which includes: building footprints, dri:1eway and parking layout, building
elevations, existing contours and proposed grading; and
(4) A letter identifying what specific incentives (i.e., standards modifications, density bonus or free stl-bsidies)
are being requested of the city. Justification for each incentr,e request should also be included.
(b)Within thirty days of receipt of the preliminary application by the planning director for projects not requesting
incentives or fmancial assistance, or ninety days for projects requesting incenfr,es or financial incenti>,es, the
department shall pro:vide to an applicant/Developer, a letter whicli identifies project issues of concern, the incenw1es
and/or financial assistance that the plallfHflg director can support when making a recommendation to the final
decisiornnaking authority, and the procedures for compliance vlith this cliapter. The applicant shall also be provided
with a copy of this cliapter and related policies, the pertinent sections of the California Codes to whicli reference is
made in this cliapter and all required application forms.
21.85.~140. Inclusion of Affordable Housing Agreement as a Condition of Development.
This chapter requires the following:
WA. Applications/dDevelopers, subject to this chapter, shall demonstrate compliance with this
chapter by the preparation and approval of executing an Affordable Housing Agreement prepared in a form
prescribed by the City and submitted to the Developer for execution. A draft affordable housing agreement shall be
submitted by the applicant to the city. The terms of the draft agreement Agreements which conform to the
requirements of this section and which do not involve requests for offsets and/or incentives, other than those
18
•
permitted by right, if any, shall be reviewed by the planning director and director of housin-g and redevelopment, vmo
shall formulate a recommendation and refer the matter to the Affordable Housing Policy Team and approved by the
Community Development Director or his designee for final a-pproyal. Agreements which involve requests for offsets
and/or incentives, other than those permitted by right, shall require the recommendation of the Housing
Commission and action by the City Council as the final decision-maker. Following the approval and the sigH:ing
execution by all parties the completed 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 on those or regulatory agreement on the
affordable project individual lots or units of property which are designated for the location of affordable units. The
approval and recordatioH: 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--0f /units. The Affordable Housing Agreement may require that more specific project
and/or unit restrictions be recorded at a future time. The Affordable Housing Agreement shall ee binding---te all
future owners and successors in interest/or the term of years specified therein.
B. An Affordable Housing Agreement, for which the inclusionary housing requirement will be
satisfied through the new construction of inclusionary units, either onsite or offsite, or through a combined
inclusioH:ary housing project, 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 sire(Sj fsquare footage) of the inelusionary uH:its, and the number of
bedrooms per inelusionary dwelling unit;
3. The proposed location of the inclusionary units;
4. Teoore of affordability for iH:clusionary units (thirty year minimum); Amenities and
services provided, such as day-care, after school programs, transportation, job training/employment services and
recreation;
5. Level and tenure of affordability for inclusionary units;
(§j6. Schedule for production of dwelling units;
(ef7. fuceHtiYes and/or financial assistance Offsets provided by the City; if approved at the
time of the execution of the Affordable Housing Agreement;
fA8. Where applicable, terms and conditioH:s establishing rules and procedures for
qualifying tenaHts, setting reHtal rates, filling ,,,acancies, and operating and maintaining units for affordable
inelusioH:ary dwelling uH:its; 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;
f819. Where applicable, terms aH:d coH:ditioH:s go11emin-g the initial sale of forsale
inelusioH:ary uH:its; identification of the affordable housing Developer and agreements specifying their role and
relationship to the project; and
(9). StaH:dards modifications granted by the city.
10. Upon request of the Community Development Director, identification of all sources
and uses of funds for construction and permanent financing, including proforma financial statements, and
evidence of a.firm commitment from the sources when available.
C. 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, fj::e-:,such as land dedication1,
shall be required to include the method of determination, schedule and value of total in-lieu contributions.
19
•
(1) The method, schedule and value of total in lieu contributions; and
(2) A determination of otherwise required per market rate dwelling unit in lie:u fees as established by the
schedule in effect at the time of payment.
D. 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 or inclusionary housing impact
fee.
21.85.145 Agreement Processing Fee.
The City Council may establish by resolution, fees to be paid by the Developer at the time of preliminary
project application to defray the City's cost of preparing and/or reviewing a/,l inclusionary housing agreements.
21.85.150 IB:elusioa of affoFdable housing agreement as a eoaditioa of de¥elopmen.t.
(a) Applications/Developers, subject to this chapter, shall demonstrate compliance with this
chapter by the preparation and approval of an affordable housing agreement. A draft affordable housing agreement
shall be submitted by the applicant to the city. The terms of the draft agreement shall be reviewed by the planning
director and director of housing and redevelopment, who shall formulate a recm:rnnendation and refer the matter to the
community de1relopment director or his designee for final appro1ral. Following the approval and the signing by all
parties the completed affordable housing agreement shall be recorded, and the rel01rant terms and conditions therefrom
filed and recorded as a deed restriction on those individual lots or units of property which are designated for the
location of affordable units. The appro1ral and recordation shall take place prior to final map appro1,ral or, where a map
is not being processed, prior to the issuance of building permits for such lots or units. The affordable housing
agreement shall be binding to all future ovmers and successors in interest.
(b) An affordable housing agreement, for which the inelusionary housing requirement will be
satisfied through the new construction of inclusionary units, either on site, off site or through a combined inclusionary
housing project, shall establish, but not be li.mi-ted to, the following:
(1) The number of inclusionary dwelling units proposed;
(2) The unit size(s) (square footage) of the inclusionary units and the number of bedrooms
per inclusionary dvvelling unit;
(3) The proposed location of the inclusionary units;
(4) Tenure of affordability for inelusionary units (thirty year minimum);
(5) Schedule for production of &uelling units;
(6) Incentives and,lor financial assistance pro:vided by the city;
(7) Where applicable, terms and conditions establishing rules and procedures for qualifying
tenants, setting rental rates, filling vacancies, and operating and maintaining units for affordable inclusionary dwelling
mmst
(8) ·where applicable, terms and conditions governing the initial sale of forsale inclusionary
units; and
(9) Standards modifications granted by the city.
(c) A.n affordable housing agreement, for vlhieh the inclusionary housing requirement will be satisfied
through payment to the city of any in lieu contributions other than fee moneys (i.e., land dedication) shall be required
to include the following:
(1) The method, schedule and 1ralue of total in lieu contributions; and
(2) A determination of otherwise required per market rate dv1elling unit in lieu fees as
established by fue schedule in effect at the time of payment.
(d) 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 or inelusionary housing impact fee.
20
•
21. 85.150. 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 21.85.035(B). Amendments to Affordable Housing
agreements initially approved prior to the effective date of this ordinance shall be entitled to consideration under the
ordinance provisions superseded by this ordinance.
21. 85 .160. Inclusionary Housing Resale Agreement.
All buyers of for sale inclusionary units shall enter imo an Inclusionary Housing Resale Agreemem with the
City's Housing lrllthority prior to purchasing the unit or property. The Resale Agreemem shall specify that the title to
the subject unit or property may not be transferred without prior approval of the City's Housing Authority.
21.85.160. Pre-existing Approvals.
Any residential developments for which a Site Development Plan for the affordable housing component of
the development was approved prior to the effective date of this ordinance shall not be subject to the amended
provisions of this chapter, but shall be processed pursuant to the ordinance superseded by this ordinance.
21.85.170. Eligibility Requiremems.
Only households meeting the standards for designated lower income groups as defined in Section 21.85.020
shall be eligible to occupy inclusionary units.
21.85.170. Enforcement.
Enforcement provisions are as follows:
A. The provisions of this chapter shall apply to all Developers and their agents, successors and
assigns of a Developer 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 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.
C. Any individual who sells or rents a restricted unit in violation of the provisions of this
chapter shall be required to foifeit all monetary amounts so obtained. Such amounts shall be added to the City's
Housing Trust Fund.
21. 85 .180. Managemem and Monitoring.
(a) Inclusionary remal units shall be managed/operated by the owner of the units or his or her agem. Each o:wner of
inclusionary remal units shall submit frll annual report to the City, at the end of the previous calendar year, identifying
vihich units are inclusionary units, the monthly rem, yacancy information for each inclusionary remal unit for the prior
year, monthly income for tenams of each inclusionary rental unit throughout the prior year, and other information as
required by the City, while ensuring the privacy of the tenant
21. 85.180. 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
21
• •
effective date of this ordinance, under any chapter, ordinance, or part of an ordinance hereby otherwise repealed,
all provisions of such 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 .
•
21.85. 199. CaDeetifm af fees.
All fees eollected under this chapter shall be deposited into a Housing Trust Fund and shall be expended only
for the affordable housing needs of lov.'er ineome households, and reasonable costs of administration eonsisront v1ith
the purpose of tllis chapter.
21.85.200190. Separability of Provisions.
If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the
remainder of the chapter and the application of the provision to other persons not similarly situated or to other
circumstances shall not be affected thereby.
22