HomeMy WebLinkAbout1992-11-18; Planning Commission; ; ZCA 91-06 - CITY OF CARLSBAD INCLUSIONARY HOUSING·•
MEMORANDUM
DATE: NOVEMBER 18, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-6 CITY OF CARLSBAD -An amendment to the Carlsbad
Municipal Code (Title 21) by the addition of Chapter 21.85 to
establish requirements for the reservation and affordability of housing
units for moderate and lower income households in residential
projects under a Citywide Inclusionary Housing Program and the
payment of an In-Lieu Fee or Inclusionary Housing Impact Fee in
specified circumstances.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3424
recommending APPROVAL of the Negative Declaration issued by the Planning Director and
ADOPT Planning Commission Resolution No. 3425 recommending APPROVAL of ZCA 91-6,
based on the findings contained therein.
II. DISCUSSION
ZCA 91-06 and revisions to this Draft Ordinance were heard before the Planning
Commission on August 19, 1992 and October 28, 1992 respectively. Subsequent to public
testimony on the proposed revisions, this item was continued to November 4, 1992. At the
November 4th Planning Commission hearing, staff requested that this item be continued
to November 18, 1992 to enable staff to revise the Draft Ordinance in response to input
from the Planning Commission, development community, housing advocates, staff and the
general public.
The majority of the revisions proposed entail deletions of programmatic or "how to"
sections or potions of sections from the Ordinance. In the interest of shortening
(simplifying) the Draft Ordinance, staff is recommending that these programmatic sections,
more appropriately, be incorporated into standardized City Affordable Housing Agreements.
None of the basic inclusionary mandates of the Draft Ordinance (i.e. 15% lower-income
and 5% moderate-income inclusionary requirements and 30 year tenure) have been revised.
The primary purpose for the proposed revisions is to eliminate Ordinance complexity, while
providing the development community and the City greater flexibility and opportunities to
achieve the inclusionary mandates of this Ordinance.
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ZCA 91-06 -CI1Y OF CARLSBAD/INCLUSIONARY ORDINANCE
NOVEMBER 18, 1992
PAGE 2
In order to clearly identify the proposed Ordinance changes for the Planning Commission,
the revised Draft Ordinance is in a strike-out/highlight format. Text to be deleted is in
strike-out type; new text is in highlighted type. The strike-out/highlighting associated with
the previous Ordinance revisions brought before the Planning Commission on August 19,
1992 and October 28, 1992 has been removed. Prior to talcing this Ordinance to the City
Council, it will be cleaned up to remove the strike-out/highlighting associated with this
third revision. A copy of the proposed Council ordinance is included in your packet for
reference.
ATTACHMENTS:
1. Planning Commission Resolution No. 3424
2. Planning Commission Resolution No. 3425
3. Proposed Ordinance with strike-out/highlight removed
4. Staff Report dated October 28, 1992 (previously distributed).
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ORDINANCE NO. ----
REVISED
EXHIBIT ''X''
11VV'.FMBBl.18,199'2
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE
CARLSBAD MUNICIPAL CODE BY THE ADDITION OF
CHAPTER 21.85 TO ESTABLISH REQUIREMENTS FOR THE
RESERVATION AND AFFORDABILITY OF HOUSING UNITS
FOR MODERATE AND LOWER-INCOME HOUSEHOLDS IN
RESIDENTIAL PROJECTS UNDER A CITY WIDE
INCLUSIONARY HOUSING PROGRAM AND THE PAYMENT
OF AN IN-LIEU FEE OR INCLUSIONARY HOUSING IMPACT
FEE IN SPECIFIED CIRCUMSTANCES.
APPLICANT: CITY OF CARLSBAD
CASE NO: ZCA 91-6
WHEREAS, Government Code Section 65588(b) requires local jurisdictions to
evise their Housing Elements every five years; and
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13 WHEREAS, the City of Carlsbad has revised its Housing Element for the period July
14 1991 through June 1996; and
15 WHEREAS, Government code Section 65584(a) requires localities to address the
16 egional Share housing needs for persons of all income levels in their Housing Elements;
17 d an
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WHEREAS, the City's Regional Share needs are 2,509 Lower-income units and
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20 1,317 moderate-income units Rtliil:£9.Jit:!tliii;!Zeitil!Illlfti!II!!ffllflI!!!BllJIBII!IIY~
21 :·::;gy!U!lgp; and
22 WHEREAS, based upon the needs analysis included within its revised Housing
23 Element, the City of Carlsbad finds that Carlsbad is experiencing a lack of housing
24 affordable to lower-income households and first-time moderate income home buyers; and
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WHEREAS, the City of Carlsbad's lower-income Fair Share Housing objective
(minimum good faith effort of guaranteed units) is 1125 low-income units; and
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28 WHEREAS, the City's revised Housing Element includes objectives for the provision
of 1400 lower-income units (275 units in excess of the Fair Share requirement) and 1300
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• • moderate-income units (17 units less than the Regional Share requirement), and of the
1400 lower-income and 1300 moderate-income units, the City has committed to
2 producing 350 lower-income and 1100 moderate-income units through City initiated
3 development; and
4 WHEREAS, the remaining 1050 lower-income and 200 moderate-income units
5 would have to be provided through some other means; and
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WHEREAS, due to economic and market conditions, the private market has not
produced in the past, nor is likely to produce in the future, an adequate amount of
housing units affordable to lower and moderate-income households to meet the remaining
10 balance of the City's lower-income Fair Share need (1050 units) or moderate-income
11 Regional Share need (200 units); and
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13 c"°.':11~9t:et!<?:!!~~,:,~::lo.wep,,~~t?.f:~lio.usingtfor,,la~,,:anthni&mratedneomedio.uselio.l8s
14 ¥-!m/.,:,:?1¥!:,~e.tt~FM!!!~E'=~~¥:.:fte.,,::fJi¢.tP:u.rte.ntdiiffn#$~!!¢-!'ht1~~!?-8l~ftqttt:J;$M!.M!Y~
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WHEREAS, new residential development which does not include nor contribute
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1 7 housing for lower and moderate income households creates a need for affordable lower
18 and moderate income housing by: reducing the supply of residential land upon which
19 affordable housing could have been developed, and increasing population, which creates
20 a demand for typical community services (stores, dry cleaners, gas stations), which are
21 staffed by lower wage employees, who create a demand for lower and moderate income
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housing; and
WHEREAS, over the next 5 years, there is an actual need (Regional Need) for 2509
25 lower income units and 1,317 moderate income units 6.tifi!li:fNiltp'f◊.jiitid:lo.~2:7.3.l!fiiil
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WHEREAS, new market rate residential development creates a significant portion
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of this need; and
WHEREAS, the 15% lower-income and 5% moderate-income inclusionary
3 requirement represents 1050 lower-income and 200 moderate-income units which is less
4 than one-half of the actual (Regional Need) need over the next 5 years and therefore
5 bears a reasonable relationship to the need created by new residential development; and
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WHEREAS, the mandatory Inclusionary Housing Program was identified within the
City's revised Housing Element as the best program available to the City to achieve the
remaining balance of the City's Fair Share objective for lower-income units and Regional
10 Share objective for moderate-income units, and
11 WHEREAS, the 15% lower-income and 5% moderate-income inclusionary housing
12 requirement will ensure that the remaining balance of the City's Fair Share objectives
13 (lower-income) and Regional Share objectives (moderate-income) can be achieved, and
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WHEREAS, based upon an assumed rate for projected residential development
between 1991 and 1996, the imposition of 15% low-income and 5% moderate-income
inclusionary housing requirement on future residential development is necessary to 17
18 achieve the City's Fair Share and Regional Share objectives; and
19 WHEREAS, the 15% lower-income and 5% moderate-income inclusionary housing
20 requirements are necessary to ensure conformance with the Housing Element of the City's
21 General Plan; and g1,r-9'J.t~:~'i:,~~:i:i~-~w~Me.wta.:q'i~kw.e.=lfa.mr§fhit$H4tiz.5.~fmli-l
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WHEREAS, City staff, in association with an Ad Hoc Committee of master plan and
in-fill residential builders and non-profit builders, prepared an economic study of the
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25 development of affordable housing within the City of Carlsbad; and
26 WHEREAS, the economic study concludes that while the proposed inclusionary
27 housing requirements, would create an additional economic burden on the private
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development community, the development of housing affordable to low and moderate
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income households is achievable through cooperative partnerships between the
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3 development community, non-profit organizations, and the Ci~::~:~~.
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5 fltiimciMr;r~anawrs.ttn1B.dsttle.:dffilltMtninJre.ntiv.es.st~ternfacilitate&dn¢.lt.Wi&.nJi.¥,@:Iib:using
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The City Council of the City of Carlsbad, California does ordain as follows:
SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended by the
10 addition of Chapter 21.85 to read as follows:
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"Chapter 21.85
INCLUSIONARY HOUSING
13 Sections:
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21.85.010
21.85.020
21.85.030
21.85.040
21.85.050
21.85.060
21.85.070
Purpose and Intent.
Definitions.
Applicability of Inclusionary Housing Requirement.
Construction of Required Inclusionary Units.
In-lieu Contributions.
Inclusionary Housing Impact Fee.
Regulations for New Master Plans or Specific Plans (Approved After
the Effective Date of This Ordinance).
21.85.080 Regulations for Existing Master Plans and Specific Plans (Approved
On or Before the Effective Date of This Ordinance).
21.85.090 Regulations for Qualifiecllt~$.diiitlffl Subdivisions Not Subject to
21.85.100
21.85.110
21.85.120
21.85.130
Master Plan or Specific Plan.
Regulations for Mobile Home Parks.
Combined Inclusionary Housing Projects.
Affordable Housing Standards.
Terms and Conditions of R~mtal Inclusionary Units Exjif;alioi~?Jof AffJiffl~bW.ffl:::ffi{iiit#.• _________ ._._. _____ ._._. ________ ._._.._._. ____________ ._._. __ _
21.85.140 Terms and Conditions of For sale Inclusionary Units.
21.85.150 Resale Guidelines, Prices and Adjustments to R£sale Prices for
Inclusionary Units.
21.85.-1-eQl#.Q Incentives to Offset the Cost of Affordable Housing
-------------Development.
21.85.-l-7Glf!g'g Inclusionary Housing~-Project Application and
Review Process.
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21.85.~'.!U!J Inclusion of Affordable Housing Agreement as a Condition of
Development.
21.85.190 .P&lministrative i<\.-greement :for Inelusionazy R-ental Units.
21.85.200 Sales Agreement :for Inelusionazy Por sale Units.
21.85.~1~%0 Inclusionary Housing Resale Agreement.
21.85.~130. Eligibility Requirements and Tenant 8eleetion.
21.85.~l.D:Q Management and Monitoring.
21.85.~ifl Administrative Fee for Inclusionary Housing.
21.85.2-SG:211 Collection of Fees.
21.85.~2~6 Separability of Provisions
21.85.010. Pur_pose and Intent. 7 (a) It is an objective of the City, as established by the Housing Element of the a ity's General Plan, to ensure that all master planned and specific planned communities
nd all qualifiedf.i'Mlefflifil subdivisions provide a range of housing opportunities for all
9 • dentifiable economic segments of the population, including households of lower and
oderate income.
(b) It is also the policy of the City to:
(1) Require that a minimum of 15% of all approved residential units in any
aster plan, specific plan, or qualifieCW.!iidfflmil subdivision be restricted to and
ordable by lower-income households; ••••••••••••••••••••••••••••
(2) Require that a minimum of 5% of all approved residential units in any
aster plan or specific planned community be restricted to and affordable by moderate-
4 'ncome first-time home buyers; 1 (3) Require that for those developments which provide 10 or more units
l5 ffordable to lower-income households, at least 10% of the lower-income units should
ave three or more bedrooms; and
( 4) In specific cases, allow inclusionary requirements to be satisfied through
he payment of an in-lieu fee as an alternative to requiring inclusionary units to be
1 7 onstructed on the ground.
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20 bjective .. and policies stated in subsections (a) and (b). :~ ;
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21.85.020. Definitions.
Whenever the following terms are used in this Chapter, they shall have the
• g established by this section:
26 )Bffl&fl~~!effleftE-e€-tffi~-iHae¥e!e-j~-aftel-E~l:::jffl~Tliei=i-€~0i¼S:l:leS,-ffie-rl~HHH1
2 7 ~ffi-EEl:HHlB:g-,lffir!ES. t21--¥J/j "Affordable housing" means housing for which the allowable housing 28
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expenses paid by a qualifying household shall not exceed a specified fraction of the
l gross monthly income, adjusted for household size, for the following classes of housing:
A. Very low-income, unassisted and assisted (State and/or Federal) 2 rental and unassisted and assisted (State and/or Federal) for-sale units: 30 percent of the
:3 gross monthly income, adjusted for household size, at 50 percent of the County median
income.
4 B. Low-income, unassisted rental and unassisted for-sale units: 30
percent of the gross monthly income, adjusted for household size, at 80 percent of the
5 County median income.
C. Low-income, assisted (State and/or Federal) rental units: 30 6 ercent of the gross monthly income, adjusted for household size, at 60 percent of the
7 County median income.
D. Low-income, assisted (State and/or Federal) for-sale units: 30
8 ercent of the gross monthly income, adjusted for household size, at 70 percent of the
County median income.
9 E. Moderate-income, unassisted for-sale units: 35 percent of the
oss monthly income, adjusted for household size, at 120 perc~nt of the County median 10.
11 F. Moderate-income, assisted (State and/or Federal) for-sale units:
35 percent of the gross monthly income, adjusted for household size, at 110 percent of
12 he County median income.
~fill "Affordable housing agreement" means a legally binding agreement
13 etween a developer and the City to ensure that the inclusionary requirements of this
14 hapter are satisfied. The agreement establishes the number of required inclusionary
nits, the unit sizes, location, affordability tenure, terms and conditions of affordability
15 d unit production schedule.
Wjg} "Allowable housing expense" means the total monthly or annual
16 ecurring expenses required of a household to obtain shelter, as adjusted for eonditions
~:aeHs:l:leEH)~,eetieiflS--zHr.&!,.-l:-3{:JHffiEl~H&l-4(:J-etHmsf-tliaiJHer. For a for-sale unit, 17 llowable housing expenses include loan principal, loan interest, property and mortgage
18 • urance, property taxes, home owners association dues and a reasonable allowance for
tilities. For a rental unit, allowable housing expenses include rent, a reasonable
19 owance for utilities., and any applieable transient oeeupaney tax levied plH'Suant to
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tS}fl.=J. "Assisted (State and/ or Federal) unit" means a dwelling unit as
efined in Section .50055 of the California Health and Safety Code.
t6tf$.} "Base residential units" means a number of units associated with
each master plan; specific plan, plan phase, or individual development within a master
or specific plan or qualifiedie~id.e.nfiW subdivision from which are calculated the lower ·=.:•:•:•:•:••:-:,:,:,::-::,:-:-:-:-:-:-:-:-:-•, • and moderate-income inclus1onary units to be provided in conJunction with that master
plan, specific plan, phase or development or qualifiedr:e.iitimitiffl subdivision.
24 ffi.(ii "Combined inclusionary housiiig" ... projed" means twe separate
25 residential development sites which are linked by a contractual relationship such that ene
• • • • some or all of the inclusionary units which are otherwise :~~=
owner-occupied to rental or vice versa. 28
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m~s). "Density bonus (new residential construction)" means a minimum
1 density increase of at least twenty-five percent (25%) over either the Growth
Management Control Point of the applicable General Plan designation, as defined in
2 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.
:3 ~SI "Existing Master Plan or Specific Plan" means any master plan or
4 specific plan approved on or before the effective date of this ordinance.
-a-Bfi:li "Financial assistance" means such assistance to include but not
5 be limited to the subsidization of fees, infrastructure, land costs, or construction costs, the
use of redevelopment set-aside funds or Community Development Block Grant (CDBG)
6 funds, or the provision of other direct financial aid, such as cash transfer payments or
other monetary compensation, by the City of Carlsbad. 7 fl~j!)ll!i "Growth Management Control Point" shall have the same meaning
8 as Chapter 21.90, Section 21.90.045 of this Title.
B-3tfl!IJ "Incentives" means such regulatory concessions to include but not
9 be limited to a density increase, the modification of site development standards or zone
code requirements, approval of mixed use zoning in conjunction with the residential
10 project, or any other regulatory incentive which would result in an identifiable cost
11 reduction to enable the provision of affordable housing for lower or moderate-income
households.
12 ~tl!IJ "Inclusionary housing project" means a new residential
development or conversion of existing residential buildings which has at least fifteen
13 percent (15%) or five percent (5%) of the total units reserved and made affordable to
lower-income households or moderate-income households, respectively, as required by this 14 Chapter.
15 ~1111 "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 or
16 a dwelling unit that will be offered for sale exclusively to and which will be affordable
to moderate-income first-time home buyers, as required by this Chapter.
17 fl-et(l:$.i "Income" means any monetary benefits that qualifies as income
accordance with.the criteria and procedures used by the City of Carlsbad Housing and 18 Redevelopment Department for the acceptance of applications and recertifications for the
19 Section 8 Rental Assistance Program, or its successor.
fl73-f:l:6.J "Low-income household" means those households whose gross
20 • come is more than .. 50 percent but does not exceed 80 percent of the median income
or San Diego County as determined annually by the U.S. Department of Housing and
21 Urban Development.
22 B-S}(!twJ. "Lower-income household" means low-income and very low-
• come households";······whose gross income does not exceed 80 percent of the median
2 3 • come for San Diego County as determined annually by the U.S. Department of Housing
and Urban Development.
24 fl-9ti1!8l "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 25 other local, state, or federal affordable housing programs.
26 t2Gt{Ji!ll "Moderate-income household" means those households whose
gross income is mo·r~=-=·than 80 percent but does not exceed 120 percent of the median
27 income for San Diego County as determined annually by the U.S. Department of Housing
and Urban Development.
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t2B{2NJ. "Net developable acreage (for base residential unit calculations)"
1 means the total number of acres of a subject property minus those lands considered to
be undevelopable, as listed in Section 21.53.230 of this Code.
2 ~fill "New Master Plan or Specific Plan" means any master plan or
3 specific plan approve-a· after the effective date of this ordinance.
(23) "Originating site" means a residential development from 1Nhieh all or
4 a portion of the assoeiated inelusionary units are transferred to one or more separate
• • s: t..• ..:i • , • h . . reeenter sites as part or a eomumeu me1us1onaryousmg prOjeet.
5 (2 ~) "Qualified subdivision" means any existing residential lot, or any
existing or future residential subdivision of land. 6 (25) "R-eee:r;er site" means a residential dcY.telopment to which inelusionary
7 units are transferred from one or more separate originating sites as part of a eombined . , . h . .
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ll1Cius1onaryousmg pr0jeet.
(26) "Sales agreement for indusionary for sale units" means a legally
binding agreement betv;een a dcY;eloper and the City ,i.rhieh establishes sales guidelines
9 and regulations whieh shall gO"+rem the initial sale of the inelusionary units to qualified
households. 10 ~(321 "Target income level" means the income standards for very low,
11 low and moderate~iiicome levels within San Diego County as determined annually by the
U.S. Department of Housing and Urban Development, and adjusted for family size.
12 ~(iij} "Unassisted unit" means a dwelling unit regarding which no form
of assistance has heeii'i.-eceived from a public body in the production, occupancy and use
13 of said dwelling unit.
14 ~~24.} 'Very low-income household" means a household earning a gross
income equal to 50 percent or less of the median income for San Diego County as
15 determined annually by the U.S. Department of Housing and Urban Development.
16 21.85.030. Applicability of Inclusionazy Housing Requirement.
(a) This Chapter shall apply to all residential market rate dwelling units resulting
1 7 from new construction of rental and "for-sale" projects, as well as the conversion of
18 apartments to air-space condominiums within:
(1) New master plans or specific plans (approved after the effective date
19 of this Ordinance);
(2) Existing master plans or specific plans (approved on or before the
20 effective date of this Ordinance) with or without development entitlements (i.e., tentative
maps, final maps, building permits); 21 (3) QualifiedRe§iderlfi.ffl subdivisions not located within any master plan
22 or specific plan area; and ........... • •
( 4) Mobile home developments; and
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(5) Tentative maps for the conversion of apartments to air-space
condominiums.
(b) Notwithstanding the foregoing, this Chapter shall not apply to the following:
25 (1) Those residential units of a project for which building permits have
been issued as of the effective date of this Ordinance;
(2) Existing residences which are altered, improved, restored, repaired,
expanded or extended, provided that the number of units is not increased, however, this
27 Chapter shall pertain to the subdivision of land for the conversion of apartments to air-
space condominiums; 28
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(3) The construction of a new residential structure which replaces a
l esidential structure that was destroyed or demolished within two years prior to the
pplication for a building permit for the new residential structure, provided that the
2 umber of residential units is not increased from the number of residential units of the
3 reviously destroyed or demolished residential structure;
( 4) Any residential unit which is accessory as defined in Section 21.04.020
4 f this Code, the development of which is deemed by the City to be in the public interest;
5 (5) Those residential units for which, consistent with this Chapter, an
• nt for Inelusionary R<!ntal
6 l~1HS-aEK:l,L0F-ia-eale~~ea=Rei:H--t'0r-fnE!-H:lf,103:iafv-f1eF--8a:le-11JHi'ffi has been approved by the
7 e um s as a ordable rental, ownership
or households of lower-income or moderate-
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9 21.85.040. Construction of Required Inclusionary Units.
(a) For the following classes of residential projects or permits, for which the
lO pplication is deemed complete after the effective date of this Ordinance, the inclusionary
ousing requirements for lower and moderate income households shall be satisfied
ough the construction of new units:
(1) Any residential project (i.e.; tentative map, tentative map for the
onversion of apartments to air-space condominiums, site development plan, planned unit
evelopment, redevelopment permit, residential mobile home park permit or conditional
se permit) of seven (7) or more dwelling units, for which the application for said project
as deemed complete on or after the effective date of this ordinance. Projects of seven
7) or more dwelling unitsi that have been approved prior to the effective date of this
rdinance ffli~ that requiref as a condition of approvali the processing of subsequent site
evelopmeiifj,lans, shall be subject to the requirements of Chapter 21.85.060 and each
welling unit will meet the inclusionary requirements by payment of an inclusionary
1 7 ousing impact fee.
18 (2) Any residential tentative map revision, including a tentative map
evision for the conversion of apartments to air-space condominiums, of seven (7) or
19 ore dwelling units, approved after the effective date of this Ordinance.
(3) Any residential tentative map of seven (7) or more dwelling units, for
20 hich the application was deemed complete on or following the effective date of this
21 rdinance, and is subsequently approved for extension after the effective date of this
rdinance.
22 (4) Any residential planned unit development, site development plan,
onditional use permit, residential mobile home park permit or redevelopment permit for
23 even (7) or more dwelling units, for which the application was deemed complete on or
ollowing the effective date of this ordinance, and is subsequently approved for
24 mendment after the effective date of this Ordinance.
(b) Notwithstandin thea.ft:'.:llibiftfat:'.''·:: rovisioni of Sections 21.85.070 2 5 g, :;:::;:::::)~::::::::::;:;:;:::::::•:::::::::::::::::::if:¥ p ::::: '
1.85.080, 21.85.090, and 21.85.106#, at the sole discretion of the final decision making
26 uthority of the City, it is determined;ffliii.iffl[[lffiiynl.it.B.i.B that an alternative to the
onstruction of new inclusionary umis···k··acceptable~····ihis· .. a1temativewhicli shall be
27 :=:'.;~~!!'!~~-!~f:~~~!lji.:~=~~~~s ~h:~:~able Housing Agreement, c6risistent with
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(c) In determining the number of inclusionary units that are required to be built
1 ursuant to the standards of Section 21.85.070 (New Master/Specific Plans), Section
1.85.080 (Existing Master/Specific Plans), Section 21.85.090 (QualifiedR'eMRiitiffl 2 ubdivisions), and Section 21.85.100 (Mobile Home Parks), fractional units that result
3 om the formulas contained in these sections may be satisfied by the developer, at the
·scretion of the developer, by either of the following alternatives:
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(1) The fractional inclusionary unit shall be treated as a whole inclusionary
"t (i.e.: any resulting fraction shall be rounded up to the next larger integer) and the
clusionary unit shall be built pursuant to the provisions of these sections, or
(2) The fractional inclusionary unit shall not be included in the number of
·ts otherwise required to be built pursuant to the provisions of these sections, but the
7 eveloper shall pay to the City, within 90 calendar days of the hearing date granting
pproval of the requested discretionary permits, an amount of money equal to the fraction
8 imes the average subsidy needed to make affordable to a lower or moderate-income
ousehold, as appropriate, cine newly-constructed typical attached housing unit, as set
9 orth in Section 21.85.050 (b) of this Chapter.
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10 21.85.050. In-lieu Contributions.
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(a) For the following classes of residential projects or permits, for which the
pplication was deemed complete on or after the effective date of this Ordinance, the
clusionary housing requirement for lower-income households may be met by the
ayment to the City of an in-lieu fee or other in-lieu contributions.
13 (1) Any residential project (i.e.; tentative map, tentative map for the
14 onversion of apartments to air-space condominiums, parcel map, planned unit
evelopment, site development plan, conditional use permit, residential mobile home park
15 ermit or redevelopment permit) of six (6) dwelling units or less, approved after the
ffective date of this Ordinance.
16 (2) Any residential tentative map or parcel map revision, including a
entative map revision for the conversion of apartments to air-space condominiums, of six 17 6) dwelling units or less, approved after the effective date of this Ordinance.
18 (3) Any residential tentative map or parcel map of six (6) dwelling units
r less, approved on or after the effective date of this Ordinance, and is subsequently
19 pproved for extension after the effective date of this Ordinance.
( 4) Any residential planned unit development, site development plan,
20 onditional use permit, residential mobile home park permit or redevelopment permit for
21 ix (6) dwelling units or less, approved on or after the effective date of this Ordinance,
nd is subsequently approved for amendment after the effective date of this Ordinance.
22 (5) Development of 6 (six) or fewer new mobile home pads in a mobile
ome park, approved on or after the effective date of this Ordinance.
(b) The in-lieu fee to be paid for each market-rate dwelling unit shall be 15
ercent of the subsidy needed to make affordable to a lower-income household one
24 ewly-constructed, typical attached-housing unit. This subsidy shall be based upon the
ity's determination of the average subsidy that would be required to make affordable
ical, new two-bedroom/one-bath and three-bedroom/two-bath for-sale units and two-
26 edroom/one-bath and three-bedroom/two-bath rental units, each with an assumed
ffordability tenure of at least 30 years.
23
25
27 (c) The dollar amount mtlM\lm§:li:::P.t:::liE!f.t::::of the in-lieu fees shall be fixed
28 y a schedule adopted, from time to time, by resolution of the City Council. Said fee
10
17
19
• •
hall be assessed against the market rate units/pads of a development.
(d) All in-lieu fees collected hereunder shall be deposited in a Housing Trust Fund.
aid fund shall be administered by the City and shall be used only for the purpose of
roviding funding assistance for the provision of affordable housing units consistent with
he 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
ther non-monetary contribution of a value not less than the sum of the otherwise
equired in-lieu fee may be accepted in-lieu of providing the required affordable housing
nits or in-lieu fees. The valuation of any land offered in-lieu shall be determined by an
ppraisal made by an agent mutually agreed upon by the City and the developer. Costs
ssociated with the appraisal shall be borne by the developer.
(f) Where an applicant/ developer is authorized to pay a fee in-lieu of development
f affordable housing units, approval of qualifying parcel maps, tentative maps, site
evelopment plans, planned unit developments, residential mobile home park permits,
edevelopment permits or conditional use permits listed in subsection 21.85.050(a) shall
e conditioned upon a requirement to pay the in-lieu fee in an amount established by
esolution of the City Council in effect at the time of payment.
(g) The in lieu eontribution shall be paid:
(1) As individual fees, on a per market rate dwelling unit basis at the time . . .
Wfi} As an alternative to paying required in-lieu fee(s), inclusionary housing
equiremeiits may be satisfied ffitli@tlthrough a combined inclusionary housing project,
ursuant to Section 21.85.lib' .... ot·· this Chapter or new construction of required
clusionary units, pursuant to Section 21.85.040 of this Chapter.
20 21.85.060. Inclusionazy Housing Impact Fee.
21 (a) For the following classes of residential projects, for which the application is
eemed complete before the effective date of this Ordinance, the inclusionary housing
22 equirement for lower-income households may be met by the payment to the City of an
clusionary housing impact fee.
23 (1) Residential projects, of any size, establishing individual lots or dwelling
'ts (i.e.: parcel maps, tentative maps, tentative maps for the conversion of apartments
24 o air-space condominiums, site development plans, planned unit developments,
25 onditional use permits, residential mobile home park permits, and redevelopment
ermits), for which the application was accepted and deemed complete prior to the
26 effective date of this Ordinance.
(2) Single family residential projects, (i.e.: parcel maps and tentative maps)
2 7 of any size, for which all discretionary approvals, except site development plans, were
granted on or before the effective date of this Ordinance and site development plans are 28
11
• •
ubsequently required as a condition of the prior approval and are approved after the
ffective date of this Ordinance.
(3) Any residential tentative map or parcel map revision, including a
entative map revision for the conversion of apartments to air-space condominiums, of any
ize, approved on, before or after the effective date of this Ordinance.
( 4) Any residential tentative map or parcel map for which the application
as deemed complete on or before the effective date of this Ordinance, which was
pproved on, before or after the effective date of this Ordinance, and is subsequently
5 pproved for extension on, before, or after the effective date of this Ordinance.
(5) Any residential planned unit development, site development plan,
6 onditional use permit, residential mobile home park permit or redevelopment permit, for
7 hich the application was deemed complete on or before the effective date of this
rdinance, which was approved on, before, or after the effective date of this Ordinance,
d is subsequently approved for amendment on, before, or after the effective date of this
rdinance.
9 (b) Those residential projects which were approved on or before the effective date
f this Ordinance, and for which a condition of approval was to pay inclusionary in-lieu
lO ees shall instead pay a housing impact fee, in accordance with this Section.
11 (c) The housing impact fee to be paid for each market-rate dwelling unit shall be
5 percent of the subsidy needed to make affordable to a lower-income household the
12 arket-rate rent at a typical existing apartment for a period of 30 years. This subsidy
hall be based upon the City's determination of the average subsidy that would be
13 equired to make affordable rents for typical one-, two-, three-, and four-bedroom
partments. The average subsidy shall be weighted for the actual demand for housing, 14 y number of bedrooms, as determined by the applications for lower-income affordable
15 ousing qualified and approved by the City.
(d) The dollar amount of the inclusionary housing impact fee shall be fixed by a
16 chedule adopted, from time to time, by resolution of the City Council. Said fee shall be
ssessed against the market rate units of a development.
17 (e) The inclusionary housing impact fee shall be paid, as an individual fee, on a
18 er market-rate dwelling unit basis at the time of building permit issuance, or prior to the
ecordation of final map and/ or issuance of certificate of compliance for conversions of
19 xisting apartments to airspace condominiums.
::
22
23 21.85.070. Regulations for New Master Plans or Specific Plans. (Approved after
he effective date of this Ordinance.)
24 (a) This Chapter requires the following:
(1) Not less than fifteen percent (15%) of all base residential units in any 2 5 ew master plan or specific plan shall be set aside for occupancy by and shall be
26 ordable to lower-income households; and
(2) Not less than five percent (5%) of all base residential units in any new
27 aster plan or specific plan community shall be set aside for sale to and shall be
ffordable to moderate-income first-time home buyers.
28
12
• •
(b) For those developments which are required to provide ten or more units
1 affordable to lower income households, at least ten percent of the lower income units
shall have three or more bedrooms.
2 (c) The inclusionary housing requirement for lower-income and moderate-income
households in a new master plan or new specific plan may not be met by the payment to 3 the City of an in-lieu fee, other in-lieu contributions or inclusionary housing impact fee,
4 with the exception that any resulting fractional inclusionary unit may be satisfied through
the payment of a fee, as set forth in Section 21.85.040(c) of this Chapter.
5 ( d) All new master plans and specific plans are required by this Chapter to provide
an Inclusionary Housing Plan within the master plan or specific plan document. This
6 Inclusionary Housing Plan will include appropriate text, maps, tables, or figures to
7 establish the basic framework for implementing the requirements of this Chapter. It shall
establish, as a minimum, but not be limited to, the following:
8 (1) The total number of base residential units of the master plan or specific
plan;
9 (2) The number of required inclusionary units for lower and moderate-
income households over the entire master plan or specific plan;
10 (3) The designated sites for the location of the inclusionary units, including
11 but not limited to any sites for locating off-site inclusionary housing projects or combined
inclusionary housing projects;
12 (4) A phasing schedule for production of inclusionary units; and
(5) A general provision stipulating that an Affordable Housing Agreement
13Jjafl:G-i:HrcMHH0a'HiH:=at1°lve~~emea:ME>f--l:B€:1:U:Sl0leE~f-Kea:ra!-Yfli0HH:mEl:feiF-a~l:!e!rA;~!eH'lem
14 opmen wi the Master or Specific Plan area (i.e. tentative maps,
15 eel maps, planned unit developments and site development plans). The provision shall
ablish that all relevant terms and conditions of any Affordable Housing Agreement shall
filed and recorded as a deed restriction on those individual lots or units of a project
• ch are designated for the location of inclusionary units. The Affordable Housing
16
17
19
r Inclusionary R<?ntal Units and/or Sales
shall be consistent with Sections
f this Chapter.
21 ' '
22 ~~~f~~
23 ······ce) For the purpose of determining the number of required lower-income
inclusionary units and moderate-income inclusionary units in new master plans and
2 4 specific plans, the following standards shall apply:
(1) The number of required lower-income inclusionary units shall be 25 obtained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15. 26 (2) The number of required moderate-income inclusionary units shall be
27 obtained by the following formula:
28 Moderate-Income Inclusionary units = "base" x 0.05.
13
• •
(f) The base for a new master plan or specific plan is determined by multiplying
1 the net developable 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
2 reviewing a new 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 3 cannot be achieved because of environmental constraints or regulatory considerations (i.e.
4 zoning standards or design guidelines of the City), the base shall be equal to the
maximum number of units actually achievable with the consideration of such
5 environmental constraints and regulatory considerations. If a density bonus is or
subsequently becomes awarded, the increased density is not included in the base when
6 determining the number of required inclusionary units relative to the base project yield.
7 21.85.080. Regulations for Existing Master Plans and Specific Plans. (Approved
8 on or before the effective date of this Ordinance.)
(a) This Chapter requires the following:
9 (1) Not less than fifteen percent (15%) of all base residential units in any
xisting master plan or specific plan shall be set aside for occupancy by and shall be
10 affordable to lower-income households; and
11 (2) Not less than five percent (5%) of all base residential units in any
existing master plan or specific plan community shall be set aside for sale to and shall be
12 affordable to moderate-income first-time home buyers.
(b) For those developments which are required to provide ten or more units
13 affordable to lower-income households, at least ten percent of the lower-income units
hall have three or more bedrooms. 14 (c) If the existing master plan or specific plan proposes a transfer of density .
16 -fdt.f@l All existing master plans or specific plans proposed for major amendment,
ursuant 1:0· Section 21.38.120 of this Code, shall incorporate into the amended master
1 7 Ian or specific plan document an Inclusionary Housing Plan, consistent with Section
1.85.070 (d) of this Chapter. 18 WUU' Consistent with Sections 21.85.040-W and 21.85.050 of this Chapter,
19 ertain classes of projects or permits within an existing master plan or specific plan may
atisfy their inclusionary housing requirement for lower-income and moderate-income
20 ouseholds through the payment to the City of an in-lieu fee or other in-lieu
ontributions. 21 W:f&J: Consistent with Section 21.85.060 of this Chapter, certain classes of
22 rojects or·····permits within an existing master plan or specific plan may satisfy their
• clusionary housing requirement through the payment of an inclusionary housing impact
23
-Eg}ff.j For the purpose of determining the number of required lower-income
24 • clusionary""units and moderate-income inclusionary units in an existing master plan or
pecific plan, the following standards shall apply: 25 (1) The number of required lower-income inclusionary units shall be
26 obtained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
27 (2) The number of required moderate-income inclusionary units shall be
28
btained by the following formula:
14
• •
Moderate-Income Inclusionary units = "base" x 0.05.
l W[IJ The base for an existing master plan or existing specific plan shall be equal
to the sum··of the maximum number of dwelling units permitted under that existing
2 master plan or specific plan for all phases or individual developments within the existing
3 master plan or specific plan. If a density bonus is or subsequently becomes awarded, the
increased density is not included in the base when determining the number of required
4 inclusionary units relative to the base project yield. The base for existing master plan or
specific plan phases and developments shall not be less than the maximum number of
5 dwelling units permitted for that phase or development in the existing master plan or
specific plan, except for the following specific development phases of an existing master
6 plan or specific plan:
7 (1) Where building permits were issued, on or before the effective date
of this Ordinance, for the construction of new dwelling units approved in a master plan
a or specific plan phase or individual development area, the number of dwelling units
approved via said permits shall be subtracted from the base as otherwise determined for
9 that phase or individual development.
(2) Where a tentative map or final map (which establishes individual
lO residential lots or dwelling units) for any phase or individual development area of a
11 master plan or specific plan was either approved, on or before the effective date of this
Ordinance, or the application for said tentative map was received and deemed complete
12 by the Planning Department, before the effective date of this ordinance, and the number
of approved dwelling units is less than the maximum number of dwelling units permitted
13 • the master plan or specific plan, then the base shall be equal to the number of dwelling
14 ·ts actually approved on the tentative map or final map for that phase or individual
development of the master plan or specific plan.
15 (3) For any phase or individual development area of a master plan or
pecific plan for which a tentative map (which establishes individual residential lots or
16 welling units) has not been approved, on or before the effective date of this ordinance,
he base shall be equal to the maximum number of dwelling units permitted under that
17 aster plan or specific plan for that phase or individual development area. If in the
18 ourse of reviewing a phase or individual development area of a master or specific plan,
he final decision making authority of the City determines that the maximum number of
19 welling units permitted for a phase or individual development area of a master plan or
pecific plan cannot be achieved because of environmental constraints or regulatory
20 onsiderations (i.e, zoning standards or design guidelines of the City), the base shall be
equal to the maximum number of units actually achievable with the consideration of such 21 nvironmental constraints and regulatory considerations.
22 . Wti An Affo~dable Housing Agreement and an P.r.dministratir:i:e A-gree~en:h:
2 3 e made a condition of all future discretionary permits for development within the
aster or specific plan area (i.e. tentative maps, parcel maps, planned unit developments
24 and site development plans). The relevant terms and conditions of the Affordable Housing
greement shall be filed and recorded as a deed restriction on those individual lots or 25 ·ts of a project which are designated for the location of inclusionary units. The
26 ordable Housing Agreement and the l'.,dministrative .t'..greement for Inclusionary Rental
• • • shall be consistent with
27 Sections 21.85.180-~~~U~B.5.~WB.Q, 21.85.190 and 21.85.200 of this Chapter.
,•:•:•:•:•:•:-:-:-.-:-.•.·-·-················•.-:•:•:❖•
28
15
• •
1 ilii1:ei-ti151Emfl~-i«ffitia:l:-8-BH&,,&.~ait!s-,4~:ee,meHE-+eit=--±BeltHS:lell~~'0r-ba~tlrlHSr-ff~ire6:
for dm'€lopments subjeet to a master plan or speeifie plan shall be entered into unless said
2 agreement is eonsistent with, and fully implements, all pro1Asions of the Housing Plan
3 req-uifed b:y this seetion.
4 21.85.090. Regulations for OualifiedResidential Subdivisions Not Subject to
•••• ❖·•·•.❖:❖:❖:❖:-:-:-·-:-·-:-•• •• •'• ••• Master Plan or S ecific Plan.
5 (a) This Chapter requires the following:
(1) Not less than fifteen percent (15%) of all base residential units in any
6 IEf-l:lic:tiHJ:ee;fe.iiielitiffl subdivision shall be set aside for occupancy by and shall be affordable
o lower-income households. 7 (b) Consistent with Sections 21.85.040-Eet and 21.85.050 of this Chapter, certain
IEf-l:li:tttF0 tet1;f.e.iidehffM subdivisions may satisfy their inclusionary housing requirement for
ower-in~o-me·=·=h;useholds through the payment to the City of an in-lieu fee or other in-
9 ieu contributions.
(c) Consistent with Section 21.85.060 of this Chapter, certain qualifiedi.e'Muefiiial
lO ubdivisions may satisfy their inclusionary housing requirement through the payment to
ll he City of an inclusionary housing impact fee.
(d) For the purpose of determining the number of required lower-income
12 • clusionary units the following standards shall apply:
(1) The number of required lower-income inclusionary units shall be
13 btained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
(e) For those developments which are required to provide ten or more units 14
15 ordable to lower-income households, at least ten percent of the lower-income units
hall have three or more bedrooms.
16 (f) The base for a qualifiedr.e§itienfifil subdivision is determined by multiplying the
et developable acreage of the project she .dines the growth management control point(s)
17 or the project site's applicable general plan designation(s). If in the course of reviewing
18 qualified#.i.!id~hfi.11 subdivision project, the final decision making authority of the City
etermines that the base residential yield of the project site cannot be achieved because
19 f environmental constraints or regulatory considerations (i.e. zoning standards or design
idelines of the City), the base shall be equal to the maximum number of units actually
20 chievable with the consideration of such environmental constraints and regulatory
onsiderations. If a density bonus is or subsequently becomes awarded, the increased 21 ensity is not included in the base when determining the number of required inclusionary
nits relative to the base project yield. 22 (g) Where a qualifiedf½Jiff.mXUi.l subdivision was either approved on or before the
23 ffective date of this ordinance:'or the .. application for said qualifiedf{Sidilin.il subdivision
as received and deemed complete by the Planning Department, before the effective date
24 f this ordinance, and the number of approved dwelling units is less than the base
umber of dwelling units achievable, than the base shall be equal to the number of 25 welling units actually approved on the qualifiedfeiidffiitia1 subdivision.
26 (h) An Affordable Housing Agreement aria····an·· Administrath7€ l\greement for
ll:ft€±us:~ar¥-K£ftfa:H:fBffii--flf.~3£-cl:-t)ftfeS~:reemenH:er-:1::ne:H:lffit0ni:iff-:l:'-ei~:H:e--l::fftl0ffir shall
e made a condition of the discretionary permits for development of the
~8±3:l~:a·=·';e·:-:::,s.ide.iifial subdivision (i.e. tentative maps, parcel maps, planned unit
27
28 ......................... ....
16
• •
developments and site development plans). The relevant terms and conditions of the
1 Affordable 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
2 units. The Affordable Housing Agreement and the Administrative Agreement for
Inelusionary RentaJ Units and/or SaJes .t\greement for Inelusionary For SaJe Uni-ts shall 3 be consistent with Sections 21.85.18021Uf.5.Il!:60., 21.85.190 and 21.85.200 of this
4 Chapter.
5 21.85.100. Regulations for Mobile Home Parks.
(a) This Chapter requires the following:
6 (1) Not less than fifteen percent (15%) of all base mobile home coaches
7 and/ or pads in any mobile home park shall be set aside for occupancy by and shall be
affordable to lower-income households.
(b) The development of ( 6) six or fewer new mobile home pads in a mobile home
park may meet their inclusionary housing requirement for lower-income households by
9 the payment to the City of an in-lieu fee or other in-lieu contributions, consistent with
Sections 21.85.040te} and 21.85.050 of this Chapter.
lO (c) For the purpose of detennining the number of required lower-income
8
11 inclusionary units the following standards shall apply:
(1) The number of required lower-income inclusionary units shall be
12 obtained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
13 (d) For those developments which are required to provide ten or more units
14 affordable to lower-income households, at least ten percent of the lower-income units
hall have three or more bedrooms.
15 (e) The base for a mobile home development is determined by multiplying the net
evelopable acreage of the project site times the growth management control point(s) for
16 he project site's applicable general plan designation(s). If in the course of reviewing a
obile home project, the final decision making authority of the City determines that the
1 7 ase residential yield of the project site cannot be achieved because of environmental
18 onstraints or regulatory considerations (i.e. zoning standards or design guidelines of the
ity), the base shall be equal to the maximum number of units actually achievable with
19 he consideration of such environmental constraints and regulatory considerations. If a
ensity bonus is or subsequently becomes awarded, the increased density is not included
20 • the base when determining the number of required inclusionary units relative to the
ase project yield. 21 (f) An Affordable Housing Agreement and an A.<lrninistratir.re Agreement for
• • • shall 22 e made a condition of the discretionary permits for development of the mobile home
23 ark (i.e. tentative maps, residential mobile home park permits, or conditional use
ermits). The relevant terms and conditions of the Affordable Housing Agreement shall
24 e filed and recorded as a deed restriction on those individual pads or units of a project
hich are designated for the location of inclusionary units. The Affordable Housing
greement and the 1'\<lrninistrafr.re .t\greement for Inclusionary Rental Units and/or SaJes
26 /!Aj:~2ffieftl=-----JFef--i-Re:1~·:enaPt~l:-"ei~:1±e---1;::lfH·ES shall be consistent with Sections
25
,-.~~~ili:~~?:~~igp, 21.85.190 and 21.85.200 of this Chapter.
27
28
17
• •
21.85.110. Combined Inclusionary Housing Projects.
1 Circumstances may arise from time to time in which the public interest would be
erved by allowing some or all of the inclusionary units associated with one residential 2 roject site to be produced and operated at a seeond site ffitifiltRaU\W!fsifit6iJs.it!s.
3 ere the parties in interest to the twe sites and the City foriii •• aii.agreemeni'io··such·an
ffect, the resulting linked project sites shall be considered to be a single combined
4 • clusionary housing project. Thls section establishes the circumstances and condition£
5 -Eat It is the exclusive prerogative of the final decision making authority of
he City to determine whether or not it is in the public interest to authorize twe:ffi, 6 esidential sites to form a combined inclusionary housing project. ••••••••
7 W All agreements between parties to form a combined inclusionary
project shall be made a part of the Housing Agreement (Section
8 ttr:;Oft~,tt:2JlM'&Sii160. of this Code) required for beth the originating and receiver sites. ··-·•-•.•.•··········-·-··;········••.••.•···· . . . .
9
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13 ae:~H:lf}GR--aHG-fllaGe-a-~lct-€1HJ~~~leH1;-fef-H~:SmtB¼Etea--¼B£~:6ruH¥--M'lclSH~
14
15113rE3~HH:lal::l:-9€!--€Em&l~~WH:e-tfle--aff;OFEl:aa±ie----£ltelli~~~~aef.1:ES---,CSfi%9:1:¼Silee---E~
16
17
18
21.85.120. Affordable Housing Standards.
(a) In the event that any requirements eontained herein are in eonfl.iet with the . . . .
l!Wfliefr-Hlle-13if8f:>e&C6:-'13f6ffe€Hli~±efl~!ftE--iS-fl~i€fl~~;-fflte--flEl:efe--ri~:lffl:¥e-reEtlfflfeffleffi
19 I Sfli:lit-,clffi:W/-.-
Will: Notwithstanding a developer's request to process a residential project under
20 hapter 2L86 (Residential Density Bonus) of this Code, all residential projects are subject
o and must satisfy the inclusionary housing requirements of this Chapter. 21 -Ee)-ffl): The required inclusionary units shall be constructed concurrent with market
22 ate units iuiless both the final decision making authority of the City and developer agree
'thin the Affordable Housing Agreement to an alternative schedule for development.
-E<lf:f.tJ Inclusionary units shall remain restricted and affordable to the designated
come group for a minimum period of thirty (30) years.
23
24 W/(d'.l Inclusionary units should be built on-site and whenever reasonably
ossible, be distributed throughout the project site. 25 tf.ttiJ.! In certain cases where a combined inclusionary housing project is proposed,
26 the inclusforiary units may be provided on a site separate from the site of the market-rate
units. However construction of the inclusionary units is, in order of priority, limited to
27 sites within the same Local Facilities Management Zone or within the same City quadrant
1itas-a:eH:~Hf~=€-E~~W1:M:i~.taM6j-6f-fffis-br6fret in which the market-rate units are 28
19
• •
ocated. Jl~gffi,fJ.i.fflJ where the originating site is f.¢.qijl~@!/Sl#.§!9.!P@lt#.ffl§)t@ffl~ located
'thin a master or specific plan area, the first priority for location of the receiver
,--==:,-te:iiiitif.e site is within the same master or specific plan, followed in order by the same
ocal Facilities Management Zone. Plan, and another location within the same City
llffi:1:itffiffifl:t. In the event that a Local Facilities Management Zone crosses City quadrants,
he required inclusionary units shall be located within the same City quadrant in which
he market-rate units are located. As a consideration for approving a combined
(g)fl Inclusionary units restricted for lower-income households should be located
n sites tliat are in proximity to or will provide access to employment opportunities,
rban services, or major roads or other transportation and commuter rail facilities (i.e.
eeways, bus lines) and that are compatible with adjacent land uses.
fht(i.J With the approval of the final decision making authority of the City, the
eveloper/applicant may reduce both the size and amenities of the inclusionary units
rovided that all units conform to the requirements of the applicable building and housing
odes. The design of the inclusionary units shall be reasonably consistent or compatible
'th the design of the total project development in terms of appearance, materials and
13 • shed quality.
tB-tll Inclusionary projects shall provide a mix of affordable dwelling units (by
umber of bedrooms) in response to affordable housing demand priorities of the City,
15 henever feasible. I ,_I
18 21.SS.130. Terms and Conditions of Rental Inclusionary Units.
For the purpose of establishing the requirements of inclusionary rental units, the
19 ffii-:~l½fH~~l--fH~~
20 ~tt¾S¼49B:a:f¥-l:mH-Wlltl--e€mstffilt:e41:ftO:ffiall3!€-,aetJtsm,~tS---G4:!ffileEl--l~.eetl~-iH-.~~lt#
21 1~-tt1e~:t¥--''13fO~es-itflCE!flti'~--or--tmane:¼a¼--assm-ameE~1-erl-a-B:1~1le--E:le-\re!elf)fflent-et
22l~ereliab!E~ffisi:~-tflen-H'le---frl-tv--R-a-Si-tru~ffit-to--5ieH:ae--aHeiwa:B!e-ftffil5in~~B:Sefrter
23
24 /affi™1:~9ij:)E~~9r-:IBW-CfifleEffil€H:161t¼SE!fte:ll:GS--flffi:l:-Sfltru±--ee-esBa-BflfillE!fr--E~~b¼E3HHl8:
25 lt¼ie-4lli~ieniar¥--lliliffii--f ffia:lt¼--ei=-!HmtE~e---;HHHB€ffin1HlE)f-B~reet~we--ffl€mt-!=lfs-t:efltt
26
27
28
20
• •
• 1 • lllCiUS:1:0nary
•"-'"_;
20 ,W.,,.,M.Ung,.,;uw.{Ds..,.~c:s~anagement of the complex intending to convert inclusionary
··';ijfiffil units to market-rate units shall give notice of such intent, via registered mail, to 21 --~a~ affected tenant household and to the Housing Authority of the City fflil§Qlgr,l{. Said
22 otice shall be given at least one hundred eighty (180) days prior to the··aare· j:froposed
or conversion to market-rate rents; and
(2) Each affected tenant household shall be eligible to receive rental
elocation assistance in an amount equal to four ( 4) months rent, said assistance to be
24 rovided by the owner/management company and paid to the tenant at least sixty (60)
25 days prior to conversion to market-rate rents.
(h) The 07Hner/management firm responsiak for projeets eontaining
23
26 /HleH:15:iem~renta±-Hmts-s:lnli:HH~~iM--:ltleti~=f-E:lfaV,-ma~:ement--sa~=5-;---
27
28
21
• •
21.85.140. Terms and Conditions of For Sale Inclusionary Units.
For the purpose of establishing the req-wrements of inclusionary for sale units, the
waale h
15 B¥-ffi€!-Bf'0512ffir--e'l!Yru~lflG--SU-BmlHE!&-te-tiee-,He:1:1513~~~EmEffif--ef-ffi€!--b¼Pl-iaffE~ma±
161f)t-,Hxe--me:l:Usi:eru:lPf-ter--sfllie-tH'lit;--tfiec-HEffiS¼~l:}efmrtmeat--E)t-t:l~::i¼tV~itS-Eles~ee-:lffiS
171ef'--Hl€.ae:J:'aff!-ffleefltle-:flffi:lSefieitr.-ilffi--CeHl~Er-Bv--t:E½e-bff'f"S-tte'HSll~affiH'l:eat:~etHfteffi
18
IEe--eff~-esa:E.-W-:
19
201f:PnffiB-BlilE¥-€~le-lleatiSHl1Ha:1~3F-S:a±e--unil:f;--€1r-H-aHer-t~~e-eI:..a:H:S-e1J:}HEffi.1es8:=0W~es
21 ~aer;-Uf)ell-Wrffi€~~emenf-wl1Ell-t!le-b¼Br,-SJeat:JH3e~ewCG--1EEHease--Hle--fe€fl:iS¼€ffiru~
22 \l:Hli'HEHlfr-e¼i-e£»€--:eet:lSefl0i€1:-UfHH--an--eHj~:e--fl:0lliieru3±El:--€0f~:lr€il0SiHf.le-fl:lCfl:iS¼€ffia3~
23iaHeffl:a-B¼ffi¥-fe--mE!--Ge!S$aaBe&-ltflCEffilE~~
24 Prices and Adjustments to Resale Prices for
25 lffi§jt!!§!:§ffiE!:J:::!~~
e inclusio ' • • • enter . 26 /Hffir-ala-llfl€fl:1Sffiaai=y-+lel:l!~~esale-f~!effieftt:--¥A:t-fr--tfte4:if~~,Hal!H-l~~ti0B
27
28
22
• •
15l!WflH€il-fl~!€mem:--w1::m--:me---bfl~saa:l±-Ele--a:Hffi!Ve6~-1etise--mE!-fflffi:ll516IHH,f-tllffit-ffi-iail
l61t,a!,e-4El:effistffi~f-l:Hri:Hffia:l±-BEHei~:l--e:Ir-tearu;--.tbia:k!Bst:ffe--<eeE:tffi:l:ieEl---atterEl:a-BiJlit¥--te--'!Hie
17
:n.85.160iltB!H1~O-Incentives to Offset the Cost of Affordable Housing 18 evelo ment. •••••••••••••••••••• ....... .
19 The inclusionary housing regulations established by this Chapter are a portion of
e requirements which must be met by parties wishing City approvals for the.
20 onstruction of residential developments in the City of Carlsbad. The City may make§lffill
_. = ti( .. .-._ti.dt1tiithittofisfdt¥.titmakin:···, available to the develo ment indust incentives or 21 =·======··=,!ci~f~ssi~'i~ii~e\o·=,=enable"r!-sidential projects to provide affordable ~using to lower
22 nd moderate-income households. Incentives or financial assistance will be offered by the
ity to the extent that resources for this purpose are available to the City and approved
23 or such use by the City Council, and to the extent that the residential projects, with the
se of incentives or financial assistance, assists in achieving the City's housing goals. To
24 he degree that the City makes available programs to provide incentives or financial
ssistance to the development industry, developers may make application for such 25 • centives or assistance. If the City prov.ides such incentives or financial assistanee to . . -261~:ta!E!-ffii:Hlf!l/ei19i3fl:¼eft,~-affi:ffili¼&if!-iieHSH~Sf-!i9Wi~fift00€faEEHneeffle-ill0¼:¼!-ieilE»GS;-
27 IWffle-tl-W0-11:HEl--Be-at=f€~l-B!e~OOtllSe!=l:0!QS--Wl:ffi-H1£Em1€!S-Gie!ffiff-Hle-tl$PE~leffiBe-:lHH:J:f-ef
28
23
• •
median ineome for very, low, and moderate ineome elasses, respeetively). However,
J. nothing in this Chapter establishes, directly or through implication, a right for a developer
to receive any assistance or incentive from the City or any other party or agency to enable
2 him/her to meet the obligations established by this Chapter. Exeeption: Projects are
3 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 incentives provided
4 by the final decision making authority of the City and the allowable housing expenses
established by the final decision making authority of the City shall be set out within the
5 ordable Housing Agreement pursuant to Section 21.85.lS0llkBS.lHiO. Furthermore,
developers are neteliooilfagedLtdXUHlfae precluded from utilizing.locru:······state or federal 6 assistance, when available, to meet the affordability standards set forth in Section
7 21.ss.~tQfi~If~ii'·
8 21.85.1702118:51$0. Inelusionary Housing"!!~'!'!~f:¥. Project Application and Review Process. • • ••••• • ••••••••• • •
9 A • • • • • • • 7' •
101/ee:~fy-;i'r¼ff.l-ffie--f(::)HeWH~lWJl¼eaBeir-£€~reH'l€HS:-
ll Jffi--9e-~t1e¼E~El:-'Yffi:l'lift-HiE!-Saffi€~01€eHiHe~:f-U¼ll:"ffiJ~:lefl~lH&-5fii:lH--iBe-:lfle:HiEl:e&-WH:ffifl
12 ltftE!-Metee't-i:lliffil:S-anEl:--stla~~eEttllrea--tE~~~$5€!EHl:i'J:aieF--il-bi:te--l~reiei3Hl:enf-¥.Hffi
13 iteE:tative--ma~~t=eel,.......maf}S,i➔.lam:lea---4:Hl~ae¥e!Oiml€!nts~:mEl:Hiena!----ase---j:~ffiS;-
14 IP!a~iftcl-Jl-l-€fe-t~~;ea---ffi:1tr5tl:affi:-tE3~~0ft--iH-.53.-l-i!~~:!HS--{:;E~:---Jf\l-e--afl.EH-tleflal
15llheiEl:l'Hl~0r-iawrov:als-shaH-B~eEIU:ireel;-ei!Eee-J3t-a~rov:iaei~~~ritfl:~~Ho4!le
1611Hn~:ia!--:l:flel~:VeS,-tflen-;anyc..aetffifl:-9Y--Hl€~Hmmg--bE➔.lffiffifSSi8fl-19ft-lti½e-af)fHfeEHleH-S:lffll:f
17 lon--the-Sit:e-ElleVe~meJ:lt-P~~~atie~RG-~~lateEl-ai~etieilnHy--f)erHIHS.
181Eie\'€!013f&ent--af)'l:➔.lfeiati€ffi:{:Sif-tine¼1~~::l:le--SUBffi:Hffi½-ef-il-SH:e--Ge\le:l:ej)'l:llel:H-jlifflB:j-5f!:0::l::l:--Be
19 IBreteesseEl--€0ll'l€U:ffaH:P;4e:l:'--&otft--eri:SaRatH~ffia--Feeei¥.l~-SHE!S,lm±E$5+
nary
20 !Bef'ffifl~:H'
21 11aa:ereveet-W.ittmHE~iet1:Sffll~:an-et-i:HH:asB~iiafl:-er-~~:e-;3:ffift~l:fStlltlftl=-te-~ffiO:ns
22
ING-aruliti€>naJ..~me.;mmlS,-l~~r-SF~H=e\la!s-snal!---BEH=eiEit1HM,-ffiffief}t--a&;3felt4<:1ea
23 lheraa--wit~emi.=a--te-tlie--t:lit=EWiS¼9fl:-et:-ffiifllli=lal-4Reefi-tl~,.--H:...tft4~te-±~~>menH.l¼an
24 ibv--the--Pffmn:i~~ffi:ffiissiE~~tlre--aj}JHiei:H¼OllrS:l:iaH--Be--a&wr¼S0ey---,8Rfjr,-ana-me-~
2511Gffife!oi:ffili=flt-i3e¼'lffiffii.
26 (e) Submittal: The eompleted applieation(s) shall inelude the following
27
28
24
• •
proposed zoning;
1 (2) A letter signed by the present owner stating what ineentives,
if any, are being requested from the City; 2 (3) A detailed vicinity map shovr..ng the project location and such
,z details as the location of the nearest commercial retail, transit stop, potential employment
tJ l • l . C !1! • ..t. 'al • • I: !1! • ocatl:ons, par, or recreat10n 1:ac111t1es or Ottter soc1 or cornrnumty service 1:actttties.
4 (4) Site plans, designating the total number of units proposed on
the site and the number of inclusionary units, and supporting plans per the application
5 submittal requirements.
(5) l'.ny requests fur non financial incentives must be accompamed 6 by a justification for said request and shall be submitted vlith the application; and
7 (6) In the case of a request for any financial ineentiv:e(s), a financial
statement (pro forrna) for the proposed project to justify the request.
8 (d) ReYliC¼·: The Community Development Director and/or his/her
designated staff shall evaluate the request based upon the follovling criteria:
9 (1) The inclusionary housing project helps achieve the City's low
cost housing goals as set forth in the Housing Element of the General Plan;
lO (2) The requested incentive(s) (including, but not limited to, density . . . . 11 , ,
standards, or direct or indirect financial contributions) must be necessary to make the
12 project economically feasible;
(3) The inclusionary housing project shall not be materially
13 detr..mental to public health, safety and welfare, nor injurious to property and/or
• • t.... t... • ' • • •
14 unprovements Ylllhun Lte pr0jeets YllClillty;
(4) The inclusionary housing project shall not result in an overall . . . 15 Je.-e;re¼e$Hltent:--f>€1:fffiffi-'maH5,...fftCOO:Wfltii➔.ie-;i\l¼Hit:-et:net:.....st:rue:Etffi~ma--±al~uses---H:i--a=ie
16
17
omplies with the General Plan,
18 liJ. Preliminary application: An applicant/developer proposing an
19 ::,:··:~:J~;;forh~u=gsJ~!~~~ ~~~ys~=~ :p~~=~10;~~~~~~~4,:~:~1,~!~!!~
he preliminary application shall include the following information:
20 (1) A brief description of the proposal including the number of
'nclusionary units proposed; 21 (2) The Zoning, General Plan designations and assessors parcel
22 number(s) of the project site;
(3) A site plan, drawn to scale, which includes: building footprints,
23 driveway and parking layout, building elevations, existing contours and proposed grading;
and
24 (4) A letter identifying what specific incentives (i.e.; standards
25 modifications, density bonus or fee subsidies) are being requested of the City. Justification
for each incentive request should also be included.
::
28 application by the Planning Department, the department shall provide to an
25
• •
applicant/ developer, a letter W.ffiihi!iit.lfffie.Widentifying project issues of concern, to staff,
~~
3 reference is made in this Chapter and all required application forms.
4 21.8S.1802iUtS!tI60.. Inclusion of Affordable Housing Agreement as a Condition
5 of Development.
(a) Applicants/developers, subject to this Chapter, shall demonstrate compliance
6 with this Chapter by the preparation and approval of an Affordable Housing Agreement.
7 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
8 of Housing and Redevelopment, who shall formulate a recommendation and refer the
matter to the Community Development Director or his designee for final approval.
9 Following the approval and the signing by all parties the completed Affordable Housing
Agreement shall be recorded, and the relevant terms and conditions therefrom filed and
lO recorded as a deed restriction on those individual lots or units of a property which are
ll designated for the location of affordable unit. The approval and recordation shall take
place prior to final map approval or, where a map is not being processed, prior to the
12 issuance of building permits for such lots or units. The Affordable Housing Agreement
shall be binding to all future owners and successors in interest.
13 (b) An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through new construction of inclusionary units, either on-14 site, off-site or through a combined inclusionary housing project, shall establish, but not
15 be limited to, the following:
(1) The number of inclusionary dwelling units proposed;
16 (2) The unit size(s) (square footage) of the inclusionary units and the
number of bedrooms per inclusionary dwelling unit;
17 (3) The proposed location of the inclusionary units;
18
19
(4) Tenure of affordability for inclusionary units (30 year minimum);
(5) Schedule for production of dwelling units;
(6) Incentives and/or financial assistance provided by the City;
(7) Terms and eonditions of rental inelusionary units as stipulated in :: ~~
22 ------• • ................. • "(8)'"" "terrris .. arid--·eonditicins ... of'Ior sale .. fadusionary units as stipulated in
(c) An Affordable Housing Agreement, for which the inclusionary housing
24 requirement will be satisfied through payment to the City of any in-lieu contributions
25 other than fee monies (i.e. land dedication) shall be required to include the following:
(1) The method, schedule and value of total in-lieu contributions; and
26
27
28
(2) A determination of otherwise required per market-rate dwelling unit
in-lieu fees as established by the schedule in effect at the time of payment.
26
• •
(d) An Affordable Housing Agreement will not be required for projects which will
1 be satisfying their inclusionary housing requirement through payment to the City of an
in-lieu fee or inclusionary housing impact fee.
2
3 l----ti:lt---Al±-E~eie:~5-E)HresJtGeltHHH-;HefeE,ES-;--si:¼1ete~Ee---aft---Alffffi=E¼a19ie---H<etlf:iHW:
4 z"..g:ree , p . . er,n propoSlllg
their inclusionary requirements through the development of rental units, shall enter into
5 /1. • tls atiY /1. • • • • • • •
6 1-l=ff--H:¥.,iHH;s:....aHB---K-t~!-ve!ef,lffit~-:--ttHH--+Ae-±ffii:i+-;,~~HelA+-,~~Er+Hf-,;:ff+--Ha'FH-l~RH~~--Hie
7 • strativ:e l\greement for
lf-n€:i:US:l:0IltH':f-±le:lffiH--tffi!ffS-filnliH-Bie-Bt:na~-ie-a¼¼-'.Ri-aire-ffi¥.Rers:-
8
9 t income qualification process;
• es relafr· • • • dards of this Chapter, and
10 I-J»=E~l:UrEH=O~Elj-UlffiB€ffi,--eEffiS:1.:SEell½f--'\Nlli~~en-,~~±-6\r,,
11 for filling vacancies, consistent ::with Section 21.85.130;
·r • • •nth the •
12 !ffM~leS~liffiea---m:lffi,...;:~arefml~tBeomle--Et-Ua:H:RaH¼Em--at:>etiiffiEffifaH-0 on--aiea---rem-~aee
13 ter in the event that an
14 lfl&-±efl~'-Ett]~:les--BV--reEl5eft-ei=--efiflfij~-i'le1l¼SeJaei1E1-Hleffi'Be-6fi~~eEI:
15 s; an
rogram that addresses security, tenant inYolvement,
16 laru:l--e=Hlef--ffffiaaf-l:ruB~4-SePr:i£e3-:-
17
18 ~=eerRefllt;-;:ffii"Sit:laf\t-B~~Ofl--'.~Bs.:l-Al~-85-=l~--te:ret4ffl~~~:,-atl&i~~fl9;
19 jEe-:lft:lif:l±i-t:fleff-Hl£±UiS¼et~f-TC~reHien=ES-ERre~r-Efle-GC¥e±ef)ffi€ief-E~:}{'-Safe-uftffir,--5rul:li
20 IEH€~1ies~~ffiltffit--f0r'-ffiEffii5½ffiflar'f-t'-0r-i:!la±e--bfffii:5-5:leaill-Bt:~Me:wea---BV--me:-¥fiam~
21 1ffie-¼S!,ua:eee-et--0tli!El:~--l3€ffill:ts---ffif---5Uieft-~i-6li.:----t:1mts..---:-1~~±es-~;reemeiB:t---:rer
22 lffi€ffiS'l:0ftaPf--:t'-6r-i,EHe--t7EtttS--5ffittH~mHliffl~.....a±rftl:ttlre-6WH:effi-:
Sales Agreement For Inclusionary For Sale Units shall include the following:
2 3 (1) Owner income qualification process;
(2) Sales prices relative to the affordability standards of this Chapter, and
241/J3f~~l:re-fel~~·I-US-1Bffl:ffiP,-;
2 5 the sale or resale of units,
~ElS¼ste!Rt-~ffi-~€tr~5--i&H~Hl:f.,~~~~::J-afiEl:---tj~~Ht~;
26 (4) A prngram for marketing available units, to include, a loan financing
package ::with a low notification requirement, to enable qualified households to purchase
27 • •
28
27
• •
1 !ifle:ffiS:1:eBEiff--i:lfllH-0r--ffl€:H:lS:l:0Hiafj1'--fiEH:lfn~~~~~:l:es:l~l'eEl----E:H?-eefll<ie:f BBE~-a
2
3
4 21.85.2102ll8$l1$0. Inclusionary Housing Resale Agreement.
All buyers···o'f'for:sale inclusionary units shall enter into an Inclusionary Housing
5 esale Agreement with the City's Housing Authority prior to purchasing the unit or
roperty. The Resale Agreement shall specify that the title to the subject unit or property
6 ay not be transferred without prior approval of the City's Housing Authority. +he . .
7 1atteraamli-tv--ef-.:Jthe-.Hftit-te~~EI-HeRf-l~erS.-me:H:ta~~it--B<et--!ifflii~-te...:itflef,e-f)!latt:ers
8 1seE--0m=-m-see~lft-,&r:-w.,.::-ict:1'Ht-1ttt-±+-H1::ffitl:iffi:-+t:H-:
9 21.85.220i'li~Bl:i~i:aa. Eligibility Requirements and Tenant Selection.
W Only lioiisehofcts meeting the standards for designated lower and moderate
lO come groups as defined in Section 21.85.020 shall be eligible to occupy inclusionary
11 'ts.
(b) The managing/operating agency of rental and for= sale inclusionary units shall
12~~rV-tfte--a&.,efl,-aiOO-fi.:l-e€1ifflE~lfMp~r~O~Sp~e~c~ti~Y~e~r=e.en~t~e~r=s,-aian~d~p~Ui'flC~hwa~se~i'~S~O~f~m~c~r~us~ieonsarffiey~·~U111HHH'EStS
13
141~Hs--'fefn~~:ei'-'vef")'-!€1w-:llfl.-eEffilE!-R€~~1:GSf
15 ent/worker households without Section
16
17 1tw=Bfefffii:lfe--BV--ffiC,-bfl~ffial±-&e-ulseG-fOl'-S€:l~~:-Eei'HH'l:IS--€1:ll6.-iffi:f€fi-asei'S-€~i€ftiSi6inary
18
19
20,~oo::a'Bffi:lte--9¥4:ll~:dfY:.--s:lt½a±l~:H:¼setl:-ffit=--&~ffifl~Hlr4~sefi5--ef--H½E:HlS¼El~r¥---'lclHHS
21
22
23
24
25
26
27
28
(1) Moderate income Carlsbad resident/'Norker households;
(2) Moderate income households. . . . . . . . .
"UT'1 1Il
28
1
2
3
4
5
6
I
•
No. of Bedrooms
I Available
Studio
1 bedroom
~ bedrooms
3 bedrooms
•
Ho:aseholds JAfith
I
Ho:aseholds JAfith
I It P. • Second Priority -:1:rst -aoaty
2 persons 1 person
2 persons 1 person
1 persons 3 persons or less
e persons 3 persons or less
(g) The developer shall adv:ertise the availability of the affordable unit to the
7 general public in accordance ¥nth the Developer's marketing plan.
8 21.85.2302)[:UtSWfP.O. Management and Monitoring.
(a) Inclusionarj/rental units shall be managed/ operated by the owner of the units
or his or her agent. Each owner of inclusionary rental units shall submit an annual report
10 t9 the City identifying which units are inclusionary units, the monthly rent, vacancy
9
information for each inclusionary rental unit for the prior year, monthly income for
11 tenants of each inclusionary rental unit throughout the prior year, and other information
12 as required by the City, while ensuring the privacy of the tenant. The annual report shall
be due on the anniversary of the initial certificate of occupancy release date.
13 (b) The ovmer of the inclusionary rental units shall maintain all praj ect related
records on file. The City shall hav-e the right to inspect these records at any reasonable
14 ~
(c) The City shall be entitled to have an independent audit of the ovmer's records 15 conducted once per year. Such audit shall be at the City's expense unless a violation of
16 this Chapter is discovered. The City shall give at least 18 hours notice prior to conducting
an audit.
1 7 (d) 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
18 unit shall be rented or sold except in accordance YJlith this Chapter.
19 21.85.21021t8:S}200.. Administrative Fee for Inclusionary Housing.
20 Over the rnlrnmurri:'"'"t'hirty-year tenure of projects containing inclusionary housing
units the City will either directly or, via one or more third parties, provide a number of
21 recurring services associated with the administration and monitoring of inclusionary units.
Although the provision of some of these services will be within the normal purview of
existing City activities, others will involve new costs to the City for which there are no
23 existing funding sources. Unless and until alternative funding sources are identified it is
necessary to require the builders/owners of residential projects to share in these
24 administrative costs. Therefore, the City Council hereby establishes an administrative fee
for inclusionary housing, the amount to be established by City Council resolution and paid
25 prior to the issuance of building permit(s).
22
26 21.85.2SOW!l8g'~'2;.1Jl. Collection of fees.
All fees coiieEfe·cr"iincter this Chapter shall be deposited into a Housing Trust Fund
and shall be expended only for the affordable housing needs of lower and moderate-
28 income households, consistent with the purpose of this Chapter.
27
29
' •
21.8S.260glH81~!21il. Separability of Provisions.
1 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
2 rovision to other persons not similarly situated or to other circumstances shall not be
3 affected thereby.
4 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption,
5 and the City Clerk shall certify to the adoption of this ordinance and cause it to be
6 ublished at least once in the Carlsbad Journal within fifteen days after its adoption.
7
8
9
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council
n the __ day of ____ _, 19 _, and thereafter.
10 PASSED AND ADOPTED at a regular meeting of the City Council of the City of
ll arlsbad on the __ day of ___ ~ 19_, by the following vote, to wit:
AYES:
NOES:
ABSENT:
12
13
14
15
16
17
PROVED AS TO FORM AND LEGALITY
lB ONALD R. BALL, City Attorney
19
20
21
22 --------------ETHA L. RAUTENKRANZ, City Clerk
23 :ZCA916-3.0RD
(arb-11/10/92) 24
25
26
27
28
30
CLAUDE A. LEWIS, Mayor
DATE:
TO:
FROM:
•
MEMORANDUM
NOVEMBER 18, 1992
PLANNING COMMISSION
PLANNING DEPARTMENT
•
SUBJECT: ZCA 91-6 CTlY OF CARLSBAD -An amendment to the Carlsbad
Municipal Code (Title 21) by the addition of Chapter 21.85 to establish
requirements for the reservation and affordability of housing units for moderate and
lower income households in residential projects under a Citywide Inclusionary
Housing Program and the payment of an In-Lieu Fee or Inclusionary Housing Impact
Fee in specified circumstances.
The following changes/ corrections have been made to Revised Exhibit ''X" strikeout/highlight
version:
Page 26 -
Page 19 -
ATTACHMENTS:
second line DELETE ENTIRELY "specifically stating". Put brackets
around the statement fthe incentives and or financial assistance that
the Planning Director ··can support when making a recommendation
to the final decision making authority.] the and DELETE ENTIRELY
"identifies"..... •••••
first line -applicant/ developer, a letter which identifies project issues
-
1. Revised pages 26 and 19 respectively for the Inclusionary Ordinance.
I
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applicant/ developer, a letter fi'.b.i.§h::i4.~fflit.~:!jdentifying project issues of concern, to staff,
~~
reference is made in this Chapter and all required application forms.
21.85.180211S.5llo0. Inclusion of Affordable Housing Agreement as a Condition of Development. ••••••••••••• ..... ••••••••••••••• ..... •••••••••••••••
(a) Applicants/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 recommendation and refer the
matter to the Community Development Director or his designee for final approval.
Following the approval and the signing by all parties the completed Affordable Housing
Agreement shall be recorded, and the relevant terms and conditions therefrom filed and
recorded as a deed restriction on those individual lots or units of a property which are
designated for the location of affordable unit. The approval and recordation shall take
place prior to final map approval 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 owners and successors in interest.
(b) An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through new construction of inclusionary units, either on-
site, off-site or through a combined inclusionary housing project, shall establish, but not
be limited 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 dwelling unit;
(3) The proposed location of the inclusionary units;
(4) Tenure of affordability for inclusionary units (30 year minimum);
(5) Schedule for production of dwelling units;
(6) Incentives and/or financial assistance provided by the City;
(7) Terms and eonditions of rental inelusionary: units as stipulated in
~;:!a···=
• .. ............................ (8) • Ternis ... ririd .. eonditions ·offoF sii:le ··mdt.isionary: units as stipulated in ~~:::::=:
requirement will be satisfied through payment to the City of any in-lieu contributions
other than fee monies (i.e. land dedication) shall be required to include the following:
(1) The method, schedule and value of total in-lieu contributions; and
(2) A determination of otherwise required per market-rate dwelling unit
in-lieu fees as established by the schedule in effect at the time of payment.
26
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applicant/developer, a letter which identifies project issues of concern, [the incentives
and/ or financial assistance that the Planning 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.
21.85.160. Inclusion of Affordable Housing Agreement as a Condition of
Development.
(a) Applicants/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 recommendation and refer the
matter to the Community Development Director or his designee for final approval.
Following the approval and the signing by all parties the completed Affordable Housing
Agreement shall be recorded, and the relevant terms and conditions therefrom filed and
recorded as a deed restriction on those individual lots or units of a property which are
designated .for the location of affordable unit. The approval and recordation shall take
place prior to final map approval 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 owners and successors in interest.
(b) An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through new construction of inclusionary units, either on-
site, off-site or through a combined inclusionary housing project, shall establish, but not
be limited 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 dwelling unit;
• (3) The proposed location of the inclusionary units;
(4) Tenure of affordability for inclusionary units (30 year minimum);
(5) Schedule for production of dwelling units;
(6) Incentives and/or financial assistance provided 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 units; and
• (8) Where applicable, terms and conditions governing the initial sale of for-
sale inclusionary ~ts.
(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 (i.e. land dedication) shall be required to include the following:
(1) The method, schedule and value of total in-lieu contributions; and
(2) A determination of otherwise required per market-rate dwelling unit
in-lieu 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.
19
• •
DATE: NOVEMBER 18, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: RESPONSE TO FIELDSTONE'S I.ETIER (11/17 /92) REGARDING THE
PROPOSED INCLUSIONARY ORDINANCE
Fieldstone's statements concerning SANDAG's fair share numbers are generally correct.
However, any discussion of the fair share numbers relative to the Regional Housing Needs
share for the City and the proposed inclusionary requirements are irrelevant.
Specifically, the fair share requirement has nothing to do with the construction of dwelling
units, but instead has to do with the provision of housing assistance (for example: rental
subsidies) to households. The State of California (HCD) does not even acknowledge the
concept of fair share relative to satisfying Regional Share Needs. In fact, the provision of
rental subsidies will not count towards satisfying Regional Share requirements.
While the fair share number does take into account a jurisdiction's past performance
relative to the provision of assistance to lower income households, the Regional Share is
based exclusively upon future housing needs and a jurisdiction's commitment to responding
to that need.
In conclusion, the fair share number (1125 lower income units) is not, and has never been
the basis for the City's proposed 15% inclusionary requirement. The 15% inclusionary
requirement is one of many housing programs to be implemented for purposes of achieving
the City's Regional Housing Needs (Total of 6,273 units) including: 1,443 very-low income
units, 1,066 low-income units, 1,317 moderate income units, and 2,447 upper income
units. Based upon this goal, the total demand for lower-income units is 2,509 units (1,443
+ 1,066) or 40% of all future housing developed within the City by 1996.
In view of the fact that the Regional Need for lower-income housing within Carlsbad and
San Diego County is 40% of all total future housing produced, the 15% inclusionary
requirement on new residential development clearly does not represent an inequitable or
unreasonable burden.
The City has also committed to make a good faith effort to the development community
to provide incentives ( density increases, standards modifications, expeditious processing)
and financial assistance to enable the development of affordable housing, which should
reduce the burden on the residential development community.
CD:vd
ZCA916-2.mem
DATE:
TO:
FROM:
SUBJECT:
•
MEMORANDUM
NOVEMBER 12, 1992
PLANNING COMMISSION
PLANNING DEPARTMENT¥
ZCA 91-06 -INCLUSIONARY ORDINANCE
•
Attached is a replacement page for the strike-out/highlight version of the ordinance for Inclusionary
Housing. The change is as follows:
Page 29 top of page, down through line 7, should have been in strike-out.
For the version without strike-out/highlight, the change is:
Page 20 chart and text in strike-out version removed at line 6.
Attachments
1
2
3
4
5
6
I
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No. of Bedrooms
I Available
~tudio
1 bedroom
2 bedrooms
3 bedrooms
•
Ho'l:lseholds J~Jith
I
Households With
I F' p •• Second Priority -1rst -HOHty
2 persons 1 I3ersen
2 persons 1 person
1 persons 3 persons or less
e persons 3 persons or less
(g) The devdoper shall advertise the availability of the affordable unit to the
7 general public in accordance vlith the Developer's marketing plan.
8 21.85.230liPL85}1f~ii. Management and-Monitoring.
9 (a) Inclusionary rental units shall be managed/ operated by the owner of the units
or his or her agent. Each owner of inclusionary rental units shall submit an annual report
10 to the City identifying which units are inclusionary units, the monthly rent, vacancy
information for each inclusionary rental unit for the prior year, monthly income for
11 tenants of each inclusionary rental unit throughout the prior year, and other information
as required by the City, while ensuring the privacy of the tenant. The annual report shall 12 be due on the anniversary of the initial certificate of occupancy release date.
13 (b) The ovmer of the inclusionary rental units shall maintain all project related
records on file. The City shall have the right to inspect these records at any reasonable
14 time;
(c) The City shall be entitled to have an independent audit of the ovmer's records
15 conducted once per year. Such audit shall be at the City's expense unless a violation of
16 this Chapter is discovered. The City shall give at least 18 hours notice prior to conducting
an audit.
1 7 (d) 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
18 unit shall be rented or sold except in accordance vlith this Chapter.
19
20
21.85.2102ffi%3S.-ato0. Administrative Fee for Inclusionary Housing.
Over the riunimurri:"'-thirty-year tenure of projects containing inclusionary housing
units the City will either directly or, via one or more third parties, provide a number of
21 recurring services associated with the administration and monitoring of inclusionary units.
22
23
Although the provision of some of these services will be within the normal purview of
existing City activities, others will involve new costs to the City for which there are no
existing funding sources. Unless and until alternative funding sources are identified it is
necessary to require the builders/owners of residential projects to share in these
24 administrative costs. Therefore, the City Council hereby establishes an administrative fee
for inclusionary housing, the amount to be established by City Council resolution and paid
25 prior to the issuance of building permit(s).
26 21.85.2502}fl8SH~t:O. Collection of fees.
27 All fees cdiec'fe'cf\:inder this Chapter shall be deposited into a Housing Trust Fund
and shall be expended only for the affordable housing needs of lower and moderate-
28 income households, consistent with the purpose of this Chapter.
29
• •
21.85.170. Inclusionary Housing Resale Agreement.
1 All buyers of for-sale inclusionary units shall enter into an Inclusionary Housing
Resale Agreement with the City's Housing Authority prior to purchasing the unit or
2 property. The Resale Agreement shall specify that the title to the subject unit or property
3 may not be transferred without prior approval of the City's Housing Authority.
4 21.85.180. Eligibility Requirements.
Only households meeting the standards for designated lower and moderate income
5 groups as defined in Section 21.85.020 shall be eligible to occupy inclusionary units.
6 21.85.190. Management and Monitoring.
7 (a) Inclusionary rental units shall be managed/ operated by the owner of the units
or his or her agent. Each.owner of inclusionary rental units shall submit an annual report
8 to the City identifying which units are inclusionary units, the monthly rent, vacancy
information for each inclusionary rental unit for the prior year, monthly income for
9 tenants of each inclusionary rental unit throughout the prior year, and other information
10 as required by the City, while ensuring the privacy of the tenant.
21.85.200. Administrative Fee for Inclusionary Housing. 11 Over the minimum thirty-year tenure of projects containing inclusionary housing
12 units the City will either directly or, via one or more third parties, provide a number of
recurring services associated with the administration and monitoring of inclusionary units.
13 Although the provision of some of these services will be within the normal purview of
existing City activities, others will involve new costs to the City for which there are no
existing funding sources. Unless and until alternative funding sources are identified it is
15 necessary to require the builders/owners of residential projects to share in these
14
administrative costs. Therefore, the City Council hereby establishes an administrative fee
16 for inclusionary housing, the amount to be established by City Council resolution and paid
prior to the issuance of building permit(s). 17
21.85.210. Collection of fees. 18 All fees collected under this Chapter shall be deposited into a Housing Trust Fund
19 and shall be expended only for the affordable housing needs of lower and moderate-
income households, consistent with the purpose of this Chapter.
20
21.85.220. Separability of Provisions. 21 If any provision of this chapter or the application thereof to any person or
22 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
23 affected thereby.
24
25
26
27
28
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption,
and the City Clerk shall certify to the adoption of this ordinance and cause it to be
published at least once in the Carlsbad Journal within fifteen days after its adoption.
20
• •
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council
1
2
on the __ day of ____ _, 19_, and thereafter.
3 PASSED AND ADOPTED at a regular meeting of the City Council of the City of
4 Carlsbad on the __ day of ___ _, 19 __ , by the following vote, to wit:
5
6
7
8
9
10
11
12
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY
RONALD R. BALL, City Attorney
13 ATTEST:
14
15
16
ALETHA L. RAUTENKRANZ, City Clerk
H:ZCA916-4.0RD
17 (arb-11/10/92)
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CLAUDE A. LEWIS, Mayor
21
•
MEMORANDUM
DATE: NOVEMBER 4, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-6 CITY OF CARLSBAD -An amendment to the Carlsbad Municipal
Code (Title 21} by the addition of Chapter 21.85 to establish requirements
for the reservation and affordability of housing units for moderate and lower
income households in residential projects under a Citywide lnclusionary
Housing Program and the payment of an In-Lieu Fee or lnclusionary
Housing Impact Fee in specified circumstances.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3424
recommending APPROVAL of the Negative Declaration issued by the Planning Director
and ADOPT Planning Commission Resolution No. 3425 recommending APPROVAL of
ZCA 91-6, based on the findings contained therein.
II. DISCUSSION
The matter was scheduled to be heard on October 28 and was continued to the meeting
of November 4, 1992. All staff reports and documents were transmitted with the Planning
Commission packet for October 28, and are not being redistributed.
ATTACHMENTS
1 . Planning Commission Resolution No. 3424
2. Planning Commission Resolution No. 3425
• •
OCTOBER 28, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-06 CITY OF CARLSBAD -INCLUSIONARY ORDINANCE
On August 19, 1992, ZCA 91-06 was heard before the Planning Commission. After the
staff presentation and public testimony was completed, the Planning Commission voted (5-
2 Hall, Schramm) to continue the item to September 16, 1992. This item was
subsequently continued to October 28, 1992.
In response to requests ( written and verbal) from representatives of the development
community, the Planning Commission directed staff to set up meetings with the
development community, over the course of this continuation period, for purposes of
discussing and hopefully resolving any issues of concern associated with the draft
Inclusionary Ordinance.
Consistent with this direction, staff has met individually with those representatives of the
development community who either provided public testimony or submitted a letter
regarding the draft Inclusionary Ordinance.
As a consequence of these meetings, staff is recommending several major revisions to the
draft Inclusionary Ordinance. Because many of the proposed revisions are substantive,
specific sections of the original staff report are obsolete. The proposed major revisions
include the following:
1. Amending the methodology for calculating the number of required
inclusionary units. The Ordinance has been revised to specify that, if in the
course of project review, the City determines that the maximum (base)
residential yield is not achievable because of environmental constraints, or
regulatory considerations ( development standards, or design guidelines), then
the number of required inclusiomuy units shall be adjusted to the number of
dwelling units actually approved.
2. Allowing any residential project, which establishes individual residential lots
or dwelling units, and is either approved or deemed a complete application
before the effective date of the Inclusionary Ordinance, to satisfy inclusionary
requirements through the payment of Inclusionary Housing Impact Fees (See
Attachment "C").
3. Amending Section 21.85.040 Construction of Required Inclusionary Units,
to allow developers with a requirement to ·produce a fraction of an
•
ZCA 91-06 -CITY OF CARLSBAD/INCLUSIONARY ORDINANCE
OCTOBER 28, 1992
PAGE 2
inclusionary unit to either: build the complete inclusionary unit or pay to the
City an amount of money equal to the fraction of the unit times the average
subsidy needed to make affordable to a low-income household one newly
constructed typical attached unit. This proposed revision was recommended
by the Planning Commission.
4. Amending Section 21.85.160 Incentives to offset the cost of affordable
housing, to state, that the City may make available to the development
community incentives or financial assistance to enable the development of
affordable housing, provided that resources are available and are approved
for such use by the City Council.
5. Revising the term and definition of an "assisted unit" to more clearly explain
what constitutes assistance. The previous definition of an "assisted unit"
would require that the rental rate or sales price for any low-income
inclusionary dwelling unit receiving assistance from the City or other public
body, be set at 60% and 70% of the area median income respectively. The
rental rate or sales price for an unassisted, low-income inclusionary unit
would be set at 80% of the area median income.
The term, "assisted unit" has been eliminated and replaced by the term, "assisted unit (State
or Federal)". The new definition includes any dwelling unit which receives any State or
Federal assistance, as specified within Section 50055 of the California Health and Safety
Code (See Attachment "A").
In addition to this proposed definition revision, Section 21.85.060 Incentives to Offset the
Cost of Affordable Housing Development, has been revised to specify that if the City
provides incentives or financial assistance in the form of density increases, subsidized fees,
direct financial aid, or development standards modifications, to a developer to enable the
production of required affordable housing, then the City reserves the right to negotiate the
rental rates or sales prices for such units, at rates which would be affordable to households
with incomes which are below the upper end of each income class (i.e.; below 50%, 80%
and 120% of the area median income for very low, low, and moderate income classes
respectively).
This revision is recommended in view of the fact that, while a low-income unit is
technically affordable at 80% of the area median income, it would not be affordable to
other families in that income class whose income is below 80% of the area median income.
6. Allowing inclusionary for-sale units to be rented to a qualified household if
a qualified household cannot be found to purchase the unit, or the City does
• •
ZCA 91-06 -CITY OF CARLSBAD/INCLUSIONARY ORDINANCE
OCTOBER 28, 1992
PAGE3
not exercise its option to purchase the unit within 90 days of the notification
of availability of the unit.
During the continuation period, comments were also received regarding: 1) the City's
justification for recommending that the mandatory inclusionary requirement be set at 15%;
and 2) whether this inclusionary requirement bears a reasonable relationship to the need
created by new residential development. The justification for recommending a 15%
mandatory inclusionary requirement is discussed in Attachment "D".
There also exists ·a reasonable relationship between the need for affordable housing and
the imposition of a 15% lower-income and 5% moderate-income inclusionary requirement
on market rate residential development.
Specifically, new market rate residential development creates a need for affordable lower
and moderate-income housing by: 1) reducing the supply of available residential land upon
which affordable housing could have been developed, and 2) increasing population, which
creates a demand for typical community services (stores, dry cleaners, gas stations) which
are staffed by lower-wage employees, who create a demand for affordable housing.
It is also important to understand that SANDAG's Regional Housing Needs Statement
identifies that the minimum number of lower and moderate-income dwelling units to be
constructed in Carlsbad between 1991 and 1996, is 2,509 and 1,317 units, respectively.
As discussed above, new market rate residential development will create a significant
portion of this need for affordable housing. However the recommended 15% lower-income
and 5% moderate-income inclusionaryrequirement which would create 1,050 lower-income
and 200 moderate-income units, represents considerably less than the above-mentioned
state mandated affordable housing needs for the City over the next five (5) years.
In summary, there does exist a reasonable relationship between the need for affordable
housing and the imposition of a 15% lower-income and 5% moderate-income inclusionary
requirement market rate residential development.
Other revisions, recommended by the City's new Director of Housing and Redevelopment,
have also been incorporated into the revised text.
In order to clearly identify the proposed Ordinance changes for the Planning Commission,
the revised draft Ordinance is in a strike-out/highlight format. Text to be deleted is in
strike-out type; new text is in highlighted type. Those proposed Ordinance revisions which
were included in two separate memos (dated August 19, 1992) to the Planning
Commission, from the Planning Director and Planning Department have also been included
• •
ZCA 91-06 -CITY OF CARLSBAD/INCLUSIONARY ORDINANCE
OCTOBER 28, 1992
PAGE4
within this revised draft. Prior to taking the draft Ordinance to the City Council it will be
cleaned up to remove the strike-out/highlight format.
Responses to letters concerning the draft Inclusionary Ordinance are included as
Attachment "B".
ATTACHMENTS
1. Planning Commission Resolution No. 3424
2. Planning Commission Resolution No. 3425
3. Attachment "A", Assisted Housing Definition
4. Attachment "B", Response to Letters of Comment
5. Attachment "C", Revised Inclusionary Housing Requirements
6. Staff Report, dated, August 19, 1992
7. Attachment "D", Memo to City Manager explaining the Background to the
Inclusionary Housing Program, dated December 20, 1990.
CD:vd
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-
ORDINANCE NO. ----
EXHIBIT "X"
OCTOBER 28, 1992
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE
CARLSBAD MUNICIPAL CODE BY THE ADDITION OF
CHAPTER 21.85 TO ESTABLISH REQUIREMENTS FOR THE
RESERVATION AND AFFORDABILITY OF HOUSING UNITS
FOR MODERATE AND LOWER-INCOME HOUSEHOLDS IN
RESIDENTIAL PROJECTS UNDER A CITY WIDE
INCLUSIONARY HOUSING PROGRAM AND THE PAYMENT
OF AN IN-LIEU FEE OR INCLUSIONARY HOUSING IMPACT
FEE IN SPECIFIED CIRCUMSTANCES.
APPLICANT: CITY OF CARLSBAD
CASE NO: ZCA 91-6
WHEREAS, Government Code Section 65588(b) requires local jurisdictions to
11 revise their Housing Elements every five years; and
12 WHEREAS, the City of Carlsbad has revised its Housing Element for the period July
13 1991 through June 1996; and
14
15
16
WHEREAS, Government code Section 65584(a) requires localities to address the
Regional Share housing needs for persons of all income levels in their Housing Elements;
and 17
18 WHEREAS, the City's Regional Share needs are 2,509 Lower-income units and
19 1,317 moderate-income units; and
20
21
22
23
24
WHEREAS, based upon the needs analysis included within it's revised Housing
Element, the City of Carlsbad finds that Carlsbad is experiencing a lack of housing
affordable to lower-income households and first-time moderate income home buyers; and
WHEREAS, the City of Carlsbad's lower-income Fair Share Housing objective
25 (minimum good faith effort of guaranteed units) is 1125 low-income units; and
26 WHEREAS, the City's revised Housing Element includes objectives for the provision
27 of -1-3-w,i5 lower-income units (~3,!§ units in excess of the Fair Share requirement)
28 and 1300 moderate-income units (17 units less than the Regional Share requirement),
• • and of the -135Qll§!Ofi lower-income and 1300 moderate-income units, the City has
committed to producing 600:3$& lower-income and 1100 moderate-income units through
l
2 City initiated development; and
3 WHEREAS, the remaining 1050 lower-income and 200 moderate-income units
4 would have to be provided through some other means; and
5
6
7
8
WHEREAS, due to economic and market conditions, the private market has not
produced in the past, nor is likely to produce in the future, an adequate amount of
housing units affordable to lower and moderate-income households to meet the remaining
balance of the City's lower-income Fair Share need (1050 units) or moderate-income 9
10 Regional Share need (200 units); and
11
12 li¢.u.$ffit,:,,f.¢ttti.b.vm.tau.~bn.w.iitfflt<dli¢.9tt00dit.'diR1h¢l.d.$.t¢r.¢.at®'.:J:!/.@fflet1£fdit:Bitatil~rl§w.¢t
13 inU.Jmqff.gt{ltttin{Pffi.§tllQ\$.W&iffiMt 1NHEREA8, eontinued new residential development
14
whieh does not inelude nor eontribute to:·Nard the lower east of housing ffii.:':le.iie.~f:a.iffl
..... •,•.•,••:•:•·•·❖:-·•=·=-=·= .............. :❖:-15
mba@ffii.€':'ffiffiffiiitiffliii~ will onl 'serve to further a UT/ate the eurrent affordable 15···················· .. ·••••••••··•······ .. ··················'········ .. ····--.... : ~ ggr
1 7 housing shortage by reducing the supply of residential land upon which affordable
18 housing could have been developed, and llilll:ili§J!!ll§§l:i:11.ii.I~t~Btl:l:3:i:mmmi.
19 f.◊.tJE~I@t.§ffflfiU.ffl[II~-¢i§tfltUte.su:g;t1l.¢.$.fi~J$.W=~lfi.!$.:U.W.U.~J.i1wli£1~Jlt.¢1$t,-f.¢.~1h¥
20 l&W.lfalfg§l::Btil#x!l~Iil.§Is.ri§ftll:gIEl\§::IfqrU§i~i.l:D?-IHi§e.atit1Iffl.tm,:l:lt§y§ffigj
21 and
22
23
25
27
28
2
• •
1
r.,n~ijfit/!3Jt~t.$.ilD.St1!::lb.:Wer+iitpm~.randt2Jfflrmo.attt.atefin~~e::iifii!~{!!IE!!!!I:'!~~~~
2 rtmffiiQne.tliiffiijfiffl,¢ygpi.ui1tU!¢&i6.BtNe.¢d)=tnee'.d\ov.e1Wtlii\nexttRtye~/~§tli~~~q;e
3 b.e.mJa::r.ea.sonahl~:-:r.elarlo~lii.P:::to::;,tne\neeff:::cr.eateehHy.'new.wreside:t1tlaki~!?.1:l%1~!~?~?
4 WHEREAS, the mandatory Inclusionary Housing Program was identified within the
5 City's revised Housing Element as the best program available to the City to achieve the
6 remaining balance of the City's Fair Share objective for lower-income units and Regional
7
8
9
Share objective for moderate-income units, and
WHEREAS, the 15% ~!e:!!f-income and 5% moderate-income inclusionary
10 housing requirement w=as selected in order toEI ensure that the remaining balance of the
11 City's Fair Share objectives (lower-income) and Regional Share objectives (moderate-
12 income) coul~~ be achieved, and
13
14
15
16
WHEREAS, based upon an assumed rate for projected residential development
between 1991 and 1996, the imposition of 15% low-income and 5% moderate-income
inclusionary housing requirement on future residential development is necessary to
achieve the City's Fair Share and Regional Share objectives; and 17
18
20 ggu.;ttlti!llttfmtl
21
22
23
WHEREAS, City staff, in association with an Ad Hoc Committee of master plan and
in-fill residential builders and non-profit builders, prepared an economic study of the
development of affordable housing within the City of Carlsbad; and
24
25 WHEREAS, the economic study concludes that while the proposed inclusionary
26 housing requirements, would create an additional economic burden on the private
27 development community, the development of housing affordable to low and moderate
28
3
• •
income households is achievable through cooperative partnerships between the
l
development community, non-profit organizations, and the City.
2
3
4
The City Council of the City of Carlsbad, California does ordain as follows:
SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended by the
5 addition of Chapter 21.85 to read as follows:
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19
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23
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Sections:
21.85.010
21.85.020
21.85.030
21.85.040
21.85.050
21.85.060
21.85.070
"Chapter 21.85
INCLUSIONARY HOUSING
Purpose and Intent.
Definitions.
Applicability of Inclusionary Housing Requirement.
Construction of Required Inclusionary Units.
In-lieu Contributions.
Inclusionary Housing Impact Fee.
Regulations for New Master Plans or Specific Plans (Approved After
the Effective Date of This Ordinance).
21.85.080 Regulations for Existing Master Plans and Specific Plans (Approved
On or Before the Effective Date of This Ordinance).
21.85.090 Regulations for Qualified Subdivisions Not Subject to Master Plan or
21.85.100
21.85.110
21.85.120
21.85.130
21.85.140
21.85.150
21.85.160
21.85.170
21.85.180
Specific Plan.
Regulations for Mobile Home Parks.
Combined Inclusionary Housing Projects.
Affordable Housing Standards.
Terms and Conditions of Rental Inclusionary Units.
Terms and Conditions of For-sale Inclusionary Units.
Resale Guidelines, Prices and Adjustments to Resale Prices for
Inclusionary Units.
Incentives to Offset the Cost of Affordable Housing Development.
Inclusionary Housing Project Application and Review Process.
Inclusion of Affordable Housing Agreement as a Condition of
Development.
21.85.190 Administrative Agreement for Inclusionary Rental Units.
21.85.200 Sales Agreement for Inclusionary For-sale Units.
21.85.210 Inclusionary Housing Resale Agreement.
21.85.220 Eligibility Requirements and Tenant Selection.
21.85.230 Management and Monitoring.
21.85.240 Administrative Fee for Inclusionary Housing.
;;;;;;;:;;;:1:1:1:1:1:11;:1:1:t_'·,··.:· •• :fi~!ll,1~~¥!~!:W:I
4
• •
21.85.010. Purpose and Intent.
1 (a) It is an objective of the City, as established by the Housing Element of the
City's General Plan, to ensure that all master planned and specific planned communities 2 and all qualified subdivisions provide a range of housing opportunities for all identifiable
3 economic segments of the population, including households of lower and moderate
income.
4 (b) It is also the policy of the City to:
(1) Require that a minimum of 15% of all approved residential units in any
5 master plan, specific plan, or qualified subdivision be restricted to and affordable by
lowedmcome households; 6 ,,,, (2) Require that a minimum of 5% of all approved residential units in any
7 master plan or specific planned community be restricted to and affordable by moderate-
income first-time home buyers;
8 (3) Require that for those developments which provide 10 or more units
affordable to lower-income households, at least 10% of the lower-income units should
9 have three or more bedrooms; and
( 4) In specific cases, allow inclusionary requirements to be satisfied through
lO the payment of an in-lieu fee as an alternative to requiring inclusionary units to be
11 constructed on the ground.
(5) It is the purpose of this Chapter to ensure the implementation of the
12 City objective and policies stated in subsections (a) and (b).
13 21.85.020. Definitions.
14 Whenever the following terms are used in this Chapter, they shall have the
meaning established by this section:
15 (1) "Administrative agreement for inclusionary rental units" means a legally
binding agreement between a developer and the City which establishes the rules and
16 procedures for: qualifying tenants, setting rental rates, filling vacancies, and operating and
maintaining units. 1 7 (2) "Affordable housing" means housing for which the allowable housing
expenses for a unassisted for sale or rental dwelling unit paid by a lower income 18 qualiflpg![household 7Nould i.liffllb1ot exceed 30 ereent afs.:=·=:=:amfiffl!fffa~tiinfof the oss
19 ~~~thly. household income;··-~JJ;;sted for hous:hold sii~~-P~a···th~----~fi~;~~;ble ho!ing
expenses for a for sale dwelling unit paid by a moderate income household would not
20 exceed 35 percent of gross monthly income, adjusted for household size. !tfo.tl!ffie
5
1
2
:3
4
• •
between a developer and the City to ensure that the inclusionary requirements of this
5 Chapter are satisfied. The agreement establishes the number of required inclusionary
units, the unit sizes, location, affordability tenure, terms and conditions of affordability 6 and unit production schedule.
7 ( 4) "Allowable housing expense" means the total monthly or annual
recurring expenses required of a household to obtain shelter, as adjusted for conditions
8 established by Sections 21.85.130. and 21.85.140 of this Chapter. For a for-sale unit,
allowable li6.tis.iij expenses include loan principal, loan interest, property and mortgage
9 insurance, property taxes, home owners association dues and a reasonable allowance for
10 utilities. For a rental unit, allowable n§UB expenses include rent, a reasonable
allowance for utilities, and any applicable transient occupancy tax levied pursuant to Title
11 3, Chapter 3.12 of this Code. •
12 ~5~~
13 use of such housing.
14 (6) "Base residential units" means a number o.fHffiffifassociated with each
master plan, specific plan, plan phase, or individual development within a master or
15 specific plan or qualified subdivision from which are calculated the lower and moderate-
income inclusionary units to be provided in conjunction with that master plan, specific
16 plan, phase or development or qualified subdivision.
(7) "Combined inclusionary housing project" means two separate
1 7 residential development sites which are linked by a contractual relationship such that one
18 site is a receiver site for some ef iii all of the inclusionary units which are otherwise
associated with the other, originating site.
19 (8) "Conversion" means the change of occupancy of a dwelling unit from
owner-occupied to rental or vice versa.
20 (9) "Density bonus (new residential construction)" means a minimum
density increase of at least twenty-five percent (25%) over either the Growth 21 Management Control Point of the applicable General Plan designation, as defined in
22 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.
23 (10) "Existing Master Plan or Specific Plan" means any master plan or
specific plan approved on or before the effective date of this ordinance.
26
27
28 as Chapter 21.90, ·s~~tion 21.90.045 of this Title.
6
1
2
3
4 development or con;~rsion of existing residential buildings which has at least fifteen
percent (15%) or five percent (5%) of the total units reserved and made affordable to
5 lower-income households or moderate-income households, respectively, as required by this
Chapter. 6 .g..g}f!IS!l "Inclusionary unit" means a dwelling unit that will be offered for
7 rent or sale exclusively to and which shall be affordable to lower-income households or
a dwelling unit that will be offered for sale exclusively to and which will be affordable
8 to moderate-income first-time home buyers, as required by this Chapter.
tl4}-{l.:fi) "Income" means any monetary benefits that qualifies as income
9 in accordance with the criteria and procedures used by the City of Carlsbad Housing and
10 Redevelopment Department for the acceptance of applications and recertifications for the
Section 8 Rental Assistance Program, or its successor.
11 income is at l~i~l:::~imm~~c~~:!
0
~~~~~~~'~1:dae.~~16.i:=:::-:.~;~~ds =~°:: 0~~~:
12 median income fotifaiitilego co1:mty as determined aiiiiiiall§.bji°ili.EtV:s. 6epartment of
Housing and Urban Development.
13 ~J.]J.1Hlf'Lower-income household" means low-income and very low-
~: 5E:: .'.'?
B-71fmP:Jtl"Market-rate unit" means a dwelling unit where the rental rate
16 or sales price is nofie.sfricted either by this Chapter or by requirements imposed through
other local, state, or federal affordable housing programs.
1 7 ~ZP.IJl "Moderate-income household" means those households whose
18 gross income is at least ·mat.ertlllintso percent but less than aB.Ii6fi@ii.ee.aU2o percent
of the median income for San Diego County as determined annually by the U.S.
19 Department of Housing and Urban Development.
&9tf~iill/?'Net developable acreage (for base residential unit calculations)"
20 means the total number of acres of a subject property minus those lands considered to
be undevelopable, as listed in Section 21.53.230 of this Code. 21 -G!Gt{Sl.mtf'New Master Plan or Specific Plan" means any master plan or
22 specific plan approve"d··'after the effective date of this ordinance.
{2-Bfl.lJ. "Originating site" means a residential development from which
23 all or a portion of"ilie associated inclusionary units are transferred to one or more
separate receiver sites as part of a combined inclusionary housing project.
24 ~(!11.IW'Qualified subdivision" means any existing residential lot, or any
25 existing or future residential subdivision of land.
~tS.l "Receiver site" means a residential development to which
26 inclusionary units ·are··rransferred from one or more separate originating sites as part of
a combined inclusionary housing project.
27 ~{26.). "Sales agreement for inclusionary for-sale units" means a legally
binding agreement between a developer and the City which establishes sales guidelines 28
7
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d regulations which shall govern the initial sale of the inclusionary units to qualified
ouseholds.
~fl.ii "Target income level" means the income standards for very low,
ow and moderatefincome levels within San Diego County as determined annually by the
.S. Department of Housing and Urban Development, and adjusted for family size.
~1211 "Unassisted unit" means a dwelling unit regarding which no form
f assistance has been received from a public body in the production, occupancy and use
f said dwelling unit.
~gl,J 'Very low-income household" means a household earning a gross
come equal to s·tr·percent or less of the median income for San Diego County as
etermined annually by the U.S. Department of Housing and Urban Development.
21.85.030. Applicability of Inclusionazy Housing Requirement.
(a) This Chapter shall apply to all residential market rate dwelling units resulting
om new construction of rental and "for-sale" projects, as well as the conversion of
9 partments to air-space condominiums within:
(1) New master plans or specific plans (approved after the effective date
f this Ordinance);
11 (2) Existing master plans or specific plans (approved on or before the
ffective date of this Ordinance) with or without development entitlements (i.e., tentative
aps, final maps, building permits); 12
(3) Qualified subdivisions not located within any master plan or specific
13 lan area; and
(4) Mobile home developments; and
(5) Tentative maps for the conversion of apartments to air-space 14
15 ondominiums.
(b) Notwithstanding the foregoing, this Chapter shall not apply to the following:
16 (1) Those residential units of a project for which building permits have
een issued as of the effective date of this Ordinance;
17 (2) Existing residences which are altered, improved, restored, repaired,
18 xpanded bf extended or replaced, provided that the number of units is not increased,
owever, this Chapter shall pertain tH the subdivision of land for the conversion of
19 partments to air-space condominiums;·· er
f33-fii Those residential units for which, consistent with this Chapter, an
20 ordable Housmg···Agreement, and an Administrative Agreement for Inclusionary Rental
nits and/or a Sales Agreement for Inclusionary For-Sale Units has been approved by the 21 ity, and a deed restriction recorded restricting the units as affordable rental, ownership
22 r limited equity cooperative housing for households of lower-income or moderate-
27 ··it ......
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21.85.040. Construction of Required Inclusionary Units.
1 (a) For the following classes of residential projects or permits, f.4.1Iitffl¢.ff.Jffli
-•• • • • ,.'fli@ti&nH$,:lftiiififfa~glet¢,iaff¢tttD@iffi:l¢fiVtt:Dt<¥6f,JHBWDnmiNttJtlie·1iicliisioiiaiy
sing requirements for lower and moderate income households shall be required to be
isfied through the construction of new units;
(1) Any residential project (i.e:·; tentative map, tentative map for the
version of apartments to air-space condominiums, site development plan, planned unit
elopment, redevelopment permit, residential mobile home park permit or conditional
• more dwelling units,n: approT,red after the 'u ate of this
··:.·;··,,:·: ;;c·;;:·:··~ ·~
tf/!~j :
/""¾:t~cc¾•~~>~"'""•: .. ,::--
(2) Any residential tentative map ffiviii6H, including a tentative map
1 .-.:_··n for the conversion of apartments to air-space···condominiums, of seven (7) or
dwelling units, appro r revision after the effective date of this Ordinance.
~: IB!lL: :, '•~~'/i~~ottli:.~.-~
determined that an alternative to the construction of new inclus10nary units is
18 eptable, this alternative shall be required to be processed through an Affordable
sing Agreement, consistent with Section 21.85.180 of this Chapter.
19 ·=·=·=·=·=,=·=·=·=·= ffi:iili:in:m ••••••••••••• , ••• _,,,· .•. ,,,.~---· .•• •. •• • ••• • , ,., , • -~ ·-,. _.._..,,,~~:i!II!
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21.85.050. In-lieu Contributions.
1 (a) For the following classes of residential projects or permitsjlf&if ••• __ :❖~alittlii
,.Rt;lk:atio.nmwa,tite.emitltcn-m.pleteuonwntrafterrffleteffe¢five-diamxti.fith1srm: _,,,=,============'=·ne.e, the
• clusionary housing requirement for lower-income households may be met by the
ayment 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
onversion of apartments to air-space condominiums, parcel map, planned unit
evelopment, site development plan, conditional use permit, residential mobile home park
ermit or redevelopment permit) of six (6) dwelling units or less, approved after the
ffective date of this Ordinanceti
(2) Any residential tentative map or parcel map fffiii.i&H, including a
entative map ie'iimU.li for the conversion of apartments to air-space ·c·oiidominiums, of six
6) dwelling uiiits or less, approved for revision after the effective date of this Ordinancet@
17 1aeem:ea--€&.ffil:l~e-efH~~=»=e----m:e-effeeffife-1:lafe--e11--t:1ffiS--Yf'EIHHm:eet-;
18 ~fl} Development of 6 (six) or fewer new mobile home pads in a mobile
19 ome ~~kHTh~rofu~~ii1:1:=~=i~:=~:~:tie!!P ;;!~!~f!f!!u!!~ unit shall be 15
ercent of the subsidy needed to make affordable to a lower-income household one
20 ewly-constructed, typical attached-housing unit. This subsidy shall be based upon the
ity's determination of the average subsidy that would be required to make affordable 21 ical, new two-bedroom/one-bath and three-bedroorn/ene-fiY.p bath for-sale units and
22
23
24
25
o-bedroorn/one-bath and three-bedroorn/ene.iY,4-bath rental units, each with an
ssumed affordability tenure of ffe.~¥~i.mJ. 30 years.
(c) The dollar amount ofthe-·m-lieu fees shall be fixed by a schedule adopted,
om time to time, by resolution of the City Council. Said fee shall be assessed against
e market rate units/pads of a development.
(d) All in-lieu fees collected hereunder shall be deposited in a Housing Trust Fund.._
• • ' • • . Said
26 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 consistent with the
olicies and programs contained in the Housing Element of the General Plan. IZees
28 collected in lieu of providfu:g low=er income affordable housing and mobile homes
27
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afforoable to lower ineome households shall be utilized only to pro:rJide housing for lower
l ineome households or mobile homes in fulfillment of the developer's inelusionazy housing
requirement as required by this Chapter.
2 (e) At the discretion of the final deeision making authority ffl;iflll&fiiiCil, an
3 irrevocable dedication ofland 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
4 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
5 and the developer. Costs associated with the appraisal shall be borne by the developer.
(f) Where an applicant/developer is authorized to pay a fee in-lieu of development
6 of affordable housing units, approval of qualifying parcel maps, tentative maps, site
7 development plans, planned unit developments, residential mobile home park permits,
redevelopment permits or conditional use permits listed in subsection 21.85.0S0(a) shall
8 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.
9 (g) The in-lieu contribution shall be paid:
(1) As individual fees, on a per market-rate dwelling unit basis at the time
lO of building permit issuance or prior to the recordation of final map and/or issuance of
11 certificate of compliance for conversions of existing apartments to air space
condominiums; or
12 (2) As a land dedication or other special consideration directly related to
the production of housing affordable to lower income households. The land dedication
13 or other special consideration shall be established in the Affordable Housing Agreement
14 prepared, approved and recorded pursuant to Section 21.85.180 of this Chapter, but in
no case shall the value of the total consideration approved under this Section be less than
15 the dollar amount of the otherwise required per market-rate dwelling unit in-lieu fees as
established by the schedule in effect at the time of payment.
16 (h) As an alternative to paying required in-lieu fee(s), inclusionary housing
requirements may be satisfied through a combined inclusionary housing project, pursuant
~:~
19 21.85.060. Inclusionary Housing Impact Fee.
20 :,-,,eem&i:~!;1e:,tB~~==iie~:.:;..~~1:!t1:!~:rj;zt;1f.m~~ih~r~!~l!~!~
requirement for lower-income households may be met by the payment to the City of an 21 inclusionary housing impact fee.
22 ijNiii,Ki.e.: par~~ ~::~e!~:~~~:!~~;~!!!~f!:1:s::~,~,,.~~~!~~~b~,!a;~~
23 io,',',Warr-space condominiums, site development plans, planned unit developments,
conditional use permits, residential mobile home park permits, and redevelopment
24 permits) whieh 7Nere not eonditioned to pay an in lieu fee or eonstruet required
2 5 inelusionary units, and, for which all cliseretionary appr01.tals :y.tere granted@li[[iPP!islf.l§.n
::
28
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3
4 ~!!!2-¥ approved for extension §1~:l:§e.f.@iil!I!~~ after the effective date of this
5 -OOOll Any residential planned unit development, site development plan,
conditional use pe°intlt, residential mobile home park permit or redevelopment permitJl.-6.t.
:~;;~~
and is suuie'·:·=ueiitli a roved for amendment oo.PHef&ie{b.f after the effective date of this 8 •.·•·····•:•·· ❖·•:..f.l,.,.,.,.,., ........... :· pp ............ •.· ··•:•:•···•:•:•:•:-:❖❖••❖V ••❖:❖:•···•:
Ordinance.
13 be 15 perceii't of the subsidy needed to make affordable to a lower-income household the
14 market-rate rent at a typical existing apartment for a period of 30 years. This subsidy
shall be based upon the City's determination of the average subsidy that would be
15 equired 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,
16 y number of bedrooms, as determined by the applications for lower-income affordable
housing qualified and approved by the City.
17 (c){ffj The dollar amount of the inclusionary housing impact fee shall be fixed by
18 a schedule .. adopted, from time to time, by resolution of the City Council. Said fee shall
be assessed against the market rate units of a development.
19 W:f.@:l The inclusionary housing impact fee shall be paid, as an individual fee, on
a per market-rate dwelling unit basis at the time of building permit issuance, or prior to
20 he recordation of final map and/or issuance of certificate of compliance for conversions
of existing apartments to airspace condominiums. 21 (e) All inclusionary housing impact fees collected hereunder shall be deposited in
22 a Housing Trust Fund. Said fund shall he admmistered hy the City and shall he used only
fo:r the purpose of p:roviding rental assistance fo:r qualified households.
23
21.85.070. Regulations for New Master Plans or Specific Plans. (Approved after
24 the effective date of this Ordinance.)
(a) This Chapter requires the following: 25 (1) Not less than fifteen percent (15%) of all base residential units in any
26 new master plan or specific plan shall be set aside for occupancy by and shall be
affordable to lower-income households; and
27 (2) Not less than five percent (5%) of all base residential units in any new
master plan or specific plan community shall be set aside for sale to and shall be 28
12
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affordable to moderate-income first-time home buyers.
l
(b) For those developments which are required to provide ten or more units
2 affordable to lower income households, at least ten percent of the lower income units
3 shall have three or more bedrooms.
(c) The inclusionary housing requirement for lower-income and moderate-income
4 households in a new master plan or new 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. : ~.~ (d) All new master plans and specific plans are required by this Chapter to provide
7 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
a establish the basic framework for implementing the requirements of this Chapter. It shall
establish, as a minimum, but not be limited to, the following:
9 (1) The total number of base residential units of the master plan or specific
10 (2) The number of required inclusionary units for lower and moderate-
ll • come households over the entire master plan or specific plan;
(3) The designated sites for the location of the inclusionary units, including
12 but not limited to any sites for locating off-site inclusionary housing projects or combined
inclusionary housing projects;
13 ( 4) A phasing schedule for production of inclusionary units; and
(5) A general provision stipulating that an Affordable Housing Agreement 14 and an Administrative Agreement for Inclusionary Rental Units and/or a Sales Agreement
15 or Inclusionary For-Sale Units shall be made a condition of all future discretionary
• • iffilµiJ for development within the Master or Specific Plan area (i.e.
16 entative maps, parcel maps, planned unit developments and site development plans). The ~: ~r~~E~~=z~
ordable Housing Agreement and the Administrative Agreement for Inclusionary Rental
19 nits and/or Sales Agreement for Inclusionary For-Sale Units shall be consistent with
Sections 21.85.180, 21.85. 190 and 21.85.200 of this Chapter.
20 (6) A:tpf&fflp]:§fipfflatlitgt:ihittiliNo subsequent Affordable Housing
greement, Administrative Agreement for Inclusionary Rental Units, or Sales Agreement 21 For Inclusionary For-Sale Units} required for developments subject to a master plan or
22 specific planj shall be entered into unless said agreement is consistent with, and fully
implements, ··a11 provisions of the Housing Plan required by this section.
23 (e) For the purpose of determining the number of required lower-income
inclusionary units and moderate-income inclusionary units in new master plans and
24 specific plans, the following standards shall apply:
25 (1) The number of required lower-income inclusionary units shall be
26 obtained by the following formula:
27
28
Lower-Income Inclusionary units = "base" x 0.15.
13
• •
(2) The number of required moderate-income inclusionary units shall be
1 obtained by the following formula:
2 Moderate-Income Inclusionary units = "base" x 0.05.
3 (f) The base for a new master plan or specific plan is determined by multiplying
4 the net developable acreage of the project site times the growth management control
point(s) for the project site's applicable general plan designation(s). fffiiilffiifif.ouf.se@!of
5
9 e number of required inclusionary units relative to the tetal titi@ project
10 ..
21.85.080. Regulations for Existing: Master Plans and Specific Plans. (Approved
13 on or before the effective date of this Ordinance.)
(a) This Chapter requires the following: 14 (1) Not less than fifteen percent (15%) of all base residential units in any
15 existing master plan or specific plan shall be set aside for occupancy by and shall be
affordable to lower-income households; and
16 (2) Not less than five percent (5%) of all base residential units in any
existing master plan or specific plan community shall be set aside for sale to and shall be
17 affordable to moderate-income first-time home buyers.
(b) For those developments which are required to provide ten or more units 18 affordable to lower;fincome households, at least ten percent of the lower¾income units
19 shall have three or 'in.ore bedrooms. •❖•
(c) If the existing master plan or specific plan proposes a transfer of density
20 'thin the existing master plan or specific plan or a general plan change, then a formal
aster plan or specific plan amendment shall be required. 21 (d) All existing master plans or specific plans proposed for major amendment,
22 ursuant 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 Section
23 21.85.070 (d) of this Chapter.
(e) Consistent with Section§IlllBS.lmtO(t}ImUt 21.85.050 of this Chapter, certain
24 classes of projects or permits within an existing master plan or specific plan may satisfy
their inclusionary housing requirement for lower-income and moderate-income households 25 through the payment to the City of an in-lieu fee or other in-lieu contributions.
26 (f) Consistent with Section 21.85.060 of this Chapter, certain classes of projects
or permits within an existing master plan or specific plan may satisfy their inclusionary
27 housing requirement through the payment of an inclusionary housing impact fee.
28
14
• •
(g) For the purpose of determining the number of required lower-income
J. inclusionary units and moderate-income inclusionary units in an existing master plan or
specific plan, the following standards shall apply:
2 (1) The number of required lower-income inclusionary units shall be
obtained by the following formula: 3 Lower-Income Inclusionary units = "base" x 0.15.
4 (2) The number of required moderate-income inclusionary units shall be
obtained by the following formula:
5 Moderate-Income Inclusionary units = "base" x 0.05.
(h) The base for an existing master plan or existing specific plan shall be equal
6 to the sum of the maximum number of dwelling units permitted under that existing
7 master plan or specific plan for all phases or individual developments within the existing
: !:¥5~~(:!~~~~h~
dwelling units permitted for that phase or development in the existing master plan or
10 specific plan, except for the following specific development phases of an existing master
plan or specific plan: ll Wh b · • ' ' d --_.c ·················:!f;,;~··········· h .c.c • (1) ere tulding permits were issue , tt'.r-t:lt f;}ff.fiiil~i§tf t e euective
12 date of this Ordinance, for the construction of new dwelling units approved in a master
plan or specific plan phase or individual development area, the number of dwelling units
13 approved via said permits shall be subtracted from the base as otherwise determined for
that phase or individual development. 14 (2) Where a tentative map or final map (which establishes individual
15 esidential lots or dwelling units) for any phase or individual development area of a
aster plan or specific plan was eitli!t approved, as Bn%Jf::fjefflfe the effective date of this
~:~;~
18 • the master plan or specific plan, then the base shall be equal to the number of dwelling
'ts actually approved on the tentative map or final map for that phase or individual
19 development of the master plan or specific plan.
(3) For any phase or individual development area of a master plan or
20 specific plan for which a tentative map (which establishes individual residential lots or
dwelling units) has not been approved, as-ef 6.ft16tlfiefori the effective date of this 21 ordinance, the base shall be equal to the maximum •• iiumher··of dwelling units permitted
under that master plan or specific plan for that phase or individual development area.
2 7 standards of this Seetion, any resulting deeimal fraetion shall be rounded to the next
lar est t{ ...... ar inte er. 2a ~g ;;L g
15
• •
-EB-ff)! An Affordable Housing Agreement and an Administrative Agreement for
l Inclusionary Rental Units and/or a Sales Agreement for For-Sale Inclusionary Units shall
be made a condition of all future discretionary applications pemilfs for development
2 within the master or specific plan area (i.e. tentative maps, parcel maps, planned unit
: :;~~;E~~~~r~
units. The Affordable Housing •• Agreemerii and the Administrative Agreement for
5 Inclusionary Rental Units and/or Sales Agreement for Inclusionary For-Sale Units shall
be consistent with Sections 21.85.180, 21.85.190 and 21.85.200 of this Chapter.
6 (k.)£1J.! No subsequent Affordable Housing Agreement, Administrative Agreement
7 for Inclusfonary Rental Units, or Sales Agreement For Inclusionary For-Sale Units required
for developments subject to a master plan or specific plan shall be entered into unless said
8 agreement is consistent with, and fully implements, all provisions of the Housing Plan
required by this section.
9
10
21.85.090. Regulations for Qualified Subdivisions Not Subject to Master Plan or
S ecific Plan.
(a) This Chapter requires the following:
ll (1) Not less than fifteen percent (15%) of all base residential units in any
qualified subdivision shall be set aside for occupancy by and shall be affordable to lower-
12 income households.
(b) Consistent with Sectio11$!)!g~w.S.S1QIS.tp).IBU. 21.85.050 of this Chapter, certain
13 qualified subdivisions may satisfy their mclusionary h.ousing requirement for lower-income
households through the payment to the City of an in-lieu fee or other in-lieu 14 contributions.
15 (c) Consistent with Section 21.85.060 of this Chapter, certain qualified
subdivisions may satisfy their inclusionary housing requirement through the payment to
16 the City of an inclusionary housing impact fee.
(d) For the purpose of determining the number of required lower-income
1 7 • clusionary units the following standards shall apply:
1 (1) The number of required lower-income inclusionary units shall be 8 obtained by the following formula:
19 Lower-Income Inclusionary units = "base" x 0.15.
(e) For those developments which are required to provide ten or more units
20 affordable to lowedmcome households, at least ten percent of the lower:fincome units
shall have three or more bedrooms. =❖ 21 (f) The base for a qualified subdivision is determined by multiplying the net
22 developable acreage of the project site times the growth management control point(s) for
5
6
27 InC US10nary uruts re at1Ve tot e t;:,;@§,!, proJeCt am.ts i$!t;,,;,,,
28
16
• •
5 ll!af~t-ffl~~~er.--(i~d:t~)l An Affordable Housing Agreement and an Administrative Agreement for
6 Inclusionary Rental Units and/or a Sales Agreement for Inclusionary For-Sale Units shall
7 e made a condition of the discretionary applications pemiit§ for development of the
qualified subdivision (i.e. tentative maps, parcel maps, plaruied.unit developments and site
: d;:~~~:0$:£'.o~~
ordableliousmg"Agreement and the Administrative Agreement for Inclusionary Rental
lO nits and/or Sales Agreement for Inclusionary For-Sale Units shall be consistent with
11 Sections 21.85.180, 21.85.190 and 21.85.200 of this Chapter.
12 21.85.100. Regulations for Mobile Home Parks.
(a) This Chapter requires the following:
13 (1) Not less than fifteen percent (15%) of all base mobile home coaches
14 and/ or pads in any mobile home park shall be set aside for occupancy by and shall be
affordable to lower-income households.
15 (b) The development of (6) six or fewer new mobile home pads in a mobile home
ark may meet their inclusionary housing requirement for lower-income households by
16 e payment to the City of an in-lieu fee or other in-lieu contributions, consistent with
SectionJ{Z.f.UlS.lE(IJJffilU 21.85.050 of this Cha ter.
17 {~5-=-=·=·=·=·=·=·p~-;-,-=-=·ffi~-=-=·--purp~se of determining t~ number of required lower-income
• clusionary units the following standards shall apply: 18 (1) The number of required lower-income inclusionary units shall be
19 btained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
20 (d) For those developments which are required to provide ten or more units
affordable to lower,f.income households, at least ten percent of the lowerfincome units 21 hall have three or more bedrooms. , ••
22 (e) The base for a mobile home development is determined by multiplying the net
developable acreage of the project site times the growth management control point(s) for
27
28
17
• •
2 WII An Affordable Housing Agreement and an Administrative Agreement for
:3 nclusionary Rental Units and/or Sales Agreement for Inclusionary For-Sale Units shall
e made a condition of the dis:retionary applications l!.tf for development of the
obile home park (i.e. tentative maps, residential mobile home park permits, or
onditional use permits) .. The ffi.l\W:'.@4ttfi.W!fflllfflJgpggiggn§I@l::iff.¢ Affordable Housing
greement shall be file.~I[aiti recorded as a deed restriction on those individual pads or
"ts 6fi!!i!lptijiiiHfflil.ilifiaf-@ designated for the location of inclusionary units. The
ordable Housing Agreement and the Administrative Agreement for Inclusionary Rental
nits and/or Sales Agreement for Inclusionary For-Sale Units shall be consistent with
ections 21.85.180, 21.85.190 and 21.85.200 of this Chapter.
21.85.110. Combined Inclusionary Housing Projects.
Circumstances may arise from time to time in which the public interest would be
erved by allowing some or all of the inclusionary units associated with one residential
roject site to be produced and operated at a second site. Where the parties in interest
o the two sites and the City form an agreement to such an effect, the resulting linked
roject sites shall be considered to be a single combined inclusionary housing project. This
ection establishes the circumstances and conditions necessary for the formation of a
ombined inclusionary housing project.
~: :<§ City to d~'%~.
th~:=:: p=oft"~;';:f~
esidential sites to form a combined inclusionary housing project.
15 (b) All agreements between parties to form a combined inclusionary
ousingproject shall be made a part of the Housing Agreement (Section 21.85.180 of this
16 ode) required for both the originating and receiver sites. The terms of this agreement
hall establish, but not be limited to the following matters:
17 (1) A description of the originating site, including: legal description;
18 list of all permits being requested from the City; a list of all owners; a determination
f the base residential units allowed at the site, together with the number of required
19 • clusionary units by bedroom number, floor area and ownership or rental tenure; and
determination of the number, by bedroom and floor area, of the inclusionary units to
20 e transferred to the receiver site;
(2) A description of the receiver site, including: legal description; 21 list of all permits being requested from the City; a list of all owners; a determination
22 f the base residential units allowed at the site, together with the number of required
• clusionary units by bedroom number, floor area, and rental or ownership tenure; a
23 etermination of the number, by bedroom and floor area, of the inclusionary units to be
ansferred from the originating site; a statement as to whether this site will serve as a
24 eceiver site in more than one combined inclusionary housing project, together with a list
25 of any such prior agreements; and a cumulative tabulation of all inclusionary units to be
produced at the site from all sources to date of the subject agreement;
26 (3) A description of the anticipated phasing and timing of
27
28
construction for both originating and receiving sites;
18
• •
( 4) A determination of the terms of consideration, if any, to be made
o the parties in interest of the receiver site by the parties in interest of the originating
ite; and
(5) A description of the obligations of all parties should the
evelopers of the receiver site be unable to complete the project in the time and manner
greed upon.
(c) Subject to any limitations and/or conditions which may be established
y this Code, the inclusionary units to be produced at a receiver site may be either
wnership or rental tenure, without regard to the tenure of market-rate units at the
riginating site.
riginating sit~d~a~ e~~~o~:~: ~~!~f!!r!~~f:~~g~~~~~,~~!!!~( ~:
ore than one receiver site, and a receiver site may enter into a combined inclusionary
ousing project agreement with more than one originating site, each agreement
onstituting a separate combined inclusionary housing project.
(e) No combined inclusionary housing project agreement shall be approved
ess discretionary permits necessary for the development of the receiver site have been
pproved or, alternatively, are in the City's approval process concurrent with the approval
f discretionary permits requested for the originating site.
(f) Where a housing agreement has been approved and deed restrictions
laced upon properties in a site which is subsequently proposed to become either a
eceiver site or an originating site in a new combined inclusionary housing project, upon
13 pproval of the combined project said housing agreement and deed restrictions shall be
15
16
ended to reflect the new circumstances.
(g) The parties in interest of the receiver site shall enter into either an
dministrative Agreement for Inclusionary Rental Units or a Sales Agreement for
nclusionary For-Sale Units, pursuant to Sections 21.85.190 and 21.85.200, respectively,
"th regard the inclusionary units transferred to it.
(h) A receiver site shall be located in the same quadrant of the City (as
17 efined in Section 21.90.045.(a).(3)) as the originating site and shall conform generally
18 "th the provisions of location criteria set out in Section 21.85.120.(d).
(i) Upon the formation of a combined inclusionary housing project, and
19 pon satisfaction of all terms regarding consideration due to the parties of the receiving
ite, the parties of the originating site shall be relieved of any obligation with regard to
e provisions of this chapter for all inclusionary units transferred to the receiver site, and
21 e parties in interest of the receiver site, jointly and severally, and their successors in
• terest, shall be fully responsible for implementing all requirements of this chapter for
e inclusionary units transferred to the receiving site, unless terms to the contrary are
greed upon and made a part of the agreement for the combined inclusionary housing
23 roject.
20
22
j) Each agreement made to establish a combined inclusionary housing
24 roject shall be consistent with the affordable housing requirements established by
Section 21.85.120. 25
26 21.85.120. Affordable Housing Standards.
::~~'-
19
• •
~di, Inclusionary units shall remain restricted and affordable to the designated
• come group for a minimum period of thirty (30) years.
(e)ieJ. Inclusionary units should be built on-site and whenever reasonably possible,
e distributed throughout the project site.
~: In certain cases where a combined inclusionary housing project is proposed,
e inclusfoii.ary units may be provided on a site separate from the site of the ether
arket-rate units. However construction of the inclusionary units is, in order of priority,
• 'red to sites within the same Local Facilities Management Zone or within the same City
uadrant (as defined in Section 21.90.045.(a).(3) of this Code) in which the market-rate
'ts are located. Where the originating site is located within a master or specific plan
ea, the first priority for location of the receiver site is within the same master or specific
lan, followed in order by the same U®-1 Facilities Management Zone Plan, and another
~:~Q
han are imposed when inclusionary units are developed on-site, including, but not limited
15 o requiring more than the minimum fifteen percent inclusionary units, relative to the
ase residential units on the originating site, and adjusting downward the allowable
16 ousing expenses for target income groups established in Sections 21.85.130 and
1.85.140 of this Chapter. 17 -Eetfii.i: Inclusionary units restricted for lower-income households should be located
18 n sites that are in proximity to or will provide access to employment opportunities,
ban services, or major roads or other transportation and commuter rail facilities (i.e.
19 eeways, bus lines) and that are compatible with adjacent land uses.
20 evelo::~P:C!t 1:a;P:e~:~ ~~fe&~~!~®!~:!!!''1
~t\°:!~i~f~~ty~~
rovided that all units conform to the requirements of the applicable building and housing 21 codes an thcr=e are not significant identifiable differences visible from the exterior between
22 • • • • . The size and design of the inclusionary units
shall be reasonably consistent or compatible with the design of the f§tal\::project
23 '.'.:,.,i,¥~1§1,1111::tand adjaeent struetures in terms of appearance, materials and finished
quality.
24 -fg}rf): Inclusionary projects shall provide a mix of affordable dwelling units (by
25 number of bedrooms) in response to affordable housing demand priorities of the City,
whenever feasible.
26
21.85.130. Terms and Conditions of Rental Inclusionary Units.
27 For the purpose of establishing the requirements of inclusionary rental units, the
28 following shall apply:
20
13
• •
[f~M Allowable housing expenses shall not eKeeed thH • 4l) -------·
.
' llflW In the case of inclusionary rental units for lower-income households,
ental rates, plus an allowance for utilities, are not to exceed the affordable allowable
ousing expenses for lower-income households and shall be established by the City and
evised annually on a city-wide basis. Total deposits for lower-income tenants occupying
e inclusionary units shall be limited to an amount not to exceed two month's rent;
!(¢.}.W-The same rental terms and conditions are applied to tenants of
clusionary umts as to all other tenants, and no other additional fees are charged;
U!JW All rental units shall be occupied by their renters. Renting, leasing,
ubleasing or ·subletting shall be allowed only if the total household income, including
come from all potential renters or lessees, qualifies under the requirements of this
15 hapter;
Ie.)f7t A notice of availability of rental inclusionary units shall be prepared
16 y t~~J:~~~~~ov:~:c~~d ~~~tt~d ~~~i:~~j:'-:'.':L,:::::i~@ C~ ::nr:~
1 7 oiification from ~h~ own~r that !ntal u{a;=;rg;~~t;:=:=:::~=:=:=;;~:b1e:;hah authorize
18 he rental of the inclusionary units; and
j{JJ.~ At any time a tenant occupying an inclusionary rental unit no longer
19 ualifies undei"°ihe income or household size provisions specified above, that tenant may,
pon suitable notice, then be charged market rate rent. If this occurs, any comparable
20 nd currently-vacant market-rate unit shall then be designated as an inclusionary rental
't, and the owner/manager shall immediately attempt to secure tenants in accordance
'th this Section. If no vacant units are available at such time, the next comparable
22 vailable vacant unit shall be designated as the inclusionary rental unit.
!(g}m At the end of the minimum thirty-year tenure, required inclusionary
'ts may be coiiverted to market-rate units under the following circumstances:
21
23
24
fi:JW The management of the complex intending to convert
clusionary units to market-rate units shall give notice of such intent, via registered mail,
o each affected tenant household and to the Housing Authority of the City. Said notice 25 hall be given at least one hundred eighty (180) days prior to the date proposed for
26 onversion to market-rate rents; and
(4.J.OO Each affected tenant household shall be eligible to receive
27 ental relocation assisfimce in an amount equal to four ( 4) months rent, said assistance
o be provided by the owner/management company and paid to the tenant at least sixty
28
21
•
(60 days) prior to conversion to market-rate rents.
l ll)EH» The owner/management firm responsible for projects containing
• clusionary reiiial units shall provide 24-hour-per-day management services, to inelude
2 jBft--ell--Sffi:'!-fll~~f--WCfl0--5£NliH~-ift--HH~:ef€€t
3
4
21.85.140. Terms and Conditions of For-Sale Inclusionazy Units.
For the purpose of establishing the requirements of inclusionary for-sale units, the
ollowing shall apply:
IiJ(l) Allowable housing expenses shall not e*eeed; thirty pereent (30%) ........ . . .
,
ffilt4)-On the initial sale of an inclusionary unit by a developer to a
15 ualified lower~mcome or moderate-income buyer, the price of the unit, the loan amount,
d all finance charges associated with acquiring said loan shall be established such that,
16 conjunction with all other component factors of the allowable housing expense (set out
• Section 21.85.020) the total recurring housing costs for the unit do not exceed the
1 7 owable housing expense for that buyer. The total down-payment amount for
18 • clusionary for-sale units, excluding closing costs, shall not exceed ten percent (10%) of
e purchase price.
19 :(iilf51 No charge or fee shall be imposed by a home-owners' association or
ooperative ~n:····1:he purchaser of an inclusionary unit which charge or fee is in addition
20 o, or more than, charges or fees imposed upon purchasers of market-rate units;
21 )(l'=W All for-sale inclusionary units shall be occupied by their purchasers.
enting, leasing; subleasing or subletting shall be allowed only if the total household
22 • come, including that from all potential renters or lessees, qualifies under the
equirements of this Chapter; and
23 :(=ij).lffi A notice of availability of for-sale inclusionary units shall be
24 ;!~~ bfus~~~~~P~:l~:J:c~~ ~~~~:d ;~e ~~:~;!~!i::!-:!;!:I~~i ~~ . . . . .
22
•
8 21.85.150. Resale Guidelines, Prices and Adjustments to Resale Prices for
Inclusion Units.
9 (a) All prospective owners of for-sale inclusionary units shall be required to enter
l • to an Inclusionary Housing Resale Agreement with the City pursuant to Section
O 21.85.210 of this Chapter.
11 • clusio~) A~nia;1~h~:!: ;~e:o~h:~ij;ffi~~i~=t!~jtf;s~? ~f :~::
12 ' tent to~' at ~hlch time, the City shall esiablish~h~:·:c~~sale'''prl~e·:··rn==:acc!dance with
he allowable housing expense for prospective buyers and other provisions of this Section;
13 (c) A unit originally sold to a lower-income household shall be re-sold only to
14 another lower-income household qualified by the @91:iliII-R!Mlli:IV: City or to
e City; a unit originally sold to a moderate-income, first-time-buyer household shall be
15 e-sold only to another moderate-income, first-time-buyer household (with or without
ualification by the City) or to the City.
16 (d) The allowable resale price will be set according to a formula established by
ity Council resolution. In no case shall the maximum allowable sales price be lower than
1 7 e sum of the purchase price of the dwelling unit at the time of its last sale plus the
18 eller's closing costs and title insurance for the current sale.
(e) The resale price of any inclusionary unit may be adjusted for substantial
19 tructural or permanent fixed improvements and deterioration of the unit. No
• provements shall be considered substantial unless the aggregate, actual costs of the
20 • provements to the owner exceed one percent of the purchase price paid by the selling
owner for the dwelling unit. 21 (f) Within eG 90.Idays of the notification of availability of the inclusionary for-sale
22 't, the City or its designee has the first right of refusal to buy the inclusionary unit or
assign its right to an eligible lower or moderate-income household, as certified by the
23 City's Housing and Redevelopment Department. Under this option, the City or its designee
ould have an additional 90 days to close escrow. If the City or its designee does not
2 4 e:X:erese its option to purchase the inclusionary unit withln 60 days of notification of
2 5 availability of the inelusionary for sale unit, the mvner of this unit may sell this unit to
any eligible household at the resale priee as determined by the City.
::,r~ ~
28
23
J.
2
:3
4
•
21.85.160. Incentives to Offset the Cost of Affordable Housing Development.
The inclusionary housing regulations established by this Chapter are a portion of
requirements which must be met by parties wishing City approvals for the 5 • n of residential developments in the City o _:·:_. ,.,,,. ._,_,_,_,_,_,_,_,_,_, _,_,_,_,_
6-
7 =: -:
::
8 :
=_ ------afilie
_·:::;;:;;~
9 =:Bt '"'ifnanci ance to the
stry, developers may make application for such incentives or assistance.
14 1mplicat1on, a ng t for a developer to receive any assistance or
m the City or any other party or agency to enable him/her to meet the
I --sing ___ greenienf pursuarif to Sectlon ·21.85:180. Furthermore, developers are not 18
19
luded from utilizing local, state or federal assistance, when available, to meet the
dability standards set forth in Section 21.85.120.
20 21.85.170. Inclusionary Housing Project Application and Review Process.
21 {$l All residential projects subject to this Chapter and required to satisfy their
• clusioiiary housing requirement through new construction of units, shall be required to
22 omply with the following application requirements:
(1) Application for On-site Inclusionary Units: Inclusionary units proposed
2 3 o be developed within the same project site requiring such units shall be included within
e project plans and shall be required to be processed under a Site Development Plan
24 application in addition to otherwise required project development application(s) (i.e.,
entative maps, parcel maps, planned unit developments, conditional use permits, 25 esidential mobile home park permits and redevelopment permits). The Site Development
26 Plan shall be processed pursuant to Section 21.53.120 of this Code. No additional
hearings or approvals shall be required, except as provided herein with regard to the
27 rovision of financial incentives. If the application involves a request to the City for direct
ancial incentives, then any action by the Planning Commission on the application shall 28
24
•
be advisory only, and the City Council shall have the authority to make the final decision
l on the Site Development Plan application and any related discretionary permits.
(2) Application for Combined Inclusionary Housing Projects: Separate
2 development application(s) (including the submittal of a site development plan) shall be
3 processed concurrently for both originating and receiving sites, unless:
(A) The receiving site has previously received its discretionary
(B) An alternative processing scheme and timetable has been
5 approved within the Housing Plan of a master plan or specific plan, pursuant to Sections
21.85.070 or 21.85.080 of this Chapter. 6 o additional applications, hearings or approvals shall be required, except as provided
erein with regard to the provision of financial incentives. If the Site Development Plan
pplication involves a request to the City for direct financial incentives, then any action
y the Planning Commission on the application shall be advisory only, and the City
ouncil shall have the authority to make the final d~cision on all of the requested
evelopment permits.
~£1! Submittal: The completed application(s) shall include the following
W,(IIl A legal description of the total site proposed for development
f the inclusionary units including a statement of present ownership and present and
12 roposed zoning;
00~!). A letter signed by the present owner stating what incentives,
13 • any, are being requesiecl" from the City;
14 ~11: A detailed vicinity map showing the project location and
uch details as the location of the nearest commercial retail, transit stop, potential
15 mployment locations, park or recreation facilities or other social or community service
acilities.
16 AAlf:j; Site plans, designating the total number of units proposed
n the site and the number ·of inclusionary units, and supporting plans per the application
17 ubmittal requirements.
00(5:l Any requests for non-financial incentives must be
a justification for said request and shall be submitted with the 18 ccompanied by
19 pplication; and
tF-tf§-l: In the case of a request for any financial incentive(s), a
20 ancial statement (pro~fonna) for the proposed project to justify the request.
21 ~Ii Review: The Community Development Director and/or his/her
esignated staff shah evaluate the request based upon the following criteria:
22 Wfl.:).l The inclusionary housing project helps achieve the City's low-
ost housing goals as set forth in the Housing Element of the General Plan;
23 00111 The requested incentive(s) (including, but not limited to,
density bonuses or density transfers, requests for a mixed-use project, reduction in
24 development standards, or direct or indirect financial contributions) must be necessary
25 to make the project economically feasible;
tGtf.$1: The inclusionary housing project shall not be materially
26 detrimental to public health, safety and welfare, nor injurious to property and/or
improvements within the projects' vicinity;
27 AA{IJ.: The inclusionary housing project shall not result in an overall
development pattern that is incompatible with other structures and land uses in the 28
25
•
ediate vicinity; and
1 00(5.j The inclusionary housing project complies with the General
2
:3
13
14
15
Plan, zoning and development policies of the City of Carlsbad.
fBfll Preliminary application: An applicant/ developer proposing an
clusionary housing project, shall submit a preliminary application prior to the submittal
f any formal applications for such housing development. The preliminary application
hall include the following information:
Wfl!).: A brief description of the proposal including the number of
• clusionary units propos"ecl;
00-fl) The Zoning, General Plan designations and assessors parcel
umber(s) of the project site; tGt:t~i A site plan, drawn to scale, which includes: building
ootprints, driveway and parking layout, building elevations, existing contours and
roposed grading; and
-EB}f.*'fl A letter identifying what specific incentives (i.e.; standards
odifications, density bonus or fee subsidies) are being requested of the City. Justification
or each incentive request should also be included.
ithin 90 days of receipt of the preliminary application by the Planning Department, the
epartment shall provide to an applicant/developer, a letter identifying project issues of
oncem to staff, the procedures for compliance with this Chapter, a copy of this Chapter
d related policies, the pertinent sections of the California Codes to which reference is
ade in this Chapter and all required application forms.
Inclusion of Affordable Housing Agreement as a Condition of
evelo ment.
(a) Applicants/developers, subject to this Chapter, shall demonstrate compliance
"th this Chapter by the preparation and approval of an Affordable Housing Agreement.
draft Affordable Housing Agreement shall be submitted by the applicant to the City. 1 7 he terms of the draft Agreement shall be reviewed by the Planning Director and Director
18 f Housing and Redevelopment, who shall formulate a recommendation and refer the
atter to the Community Development Director or his designee for final approval.
19 allowing the approval and the signing by all parties the completed Affordable Housing
greement shall be recorded, and the relevant terms and conditions therefrom filed and
20 ecorded as a deed restriction on those individual lots or units of a property which are
21 esignated for the location of affordable unit. The approval and recordation shall take
lace prior to final map approval or, where a map is not being processed, prior to the
16
22 =·:J~fffiits.ffoiislibnUd~ -~~ Afforda~le H~using Agr~em~t s~
23 ture owners an successors m mterest.
(b) An Affordable Housing Agreement, for which the inclusionary housing 24 equirement will be satisfied through new construction of inclusionary units, either on-
25 site, off-site or through a combined inclusionary housing project, shall establish, but not
e limited fo, the following:
26 •• • (1) The number of inclusionary dwelling units proposed;
27 number of be~~o~;e1;1tfiii~li~~ajZI~~~o~~; §B!1:~~::::!!si~l!~l1:!!BI~! and the
28 (3) The proposed location of the inclusionary units;
26
J.
• •
(4) Tenure of affordability for inclusionary units (30 year minimum);
(5) Schedule for production of dwelling units;
(6) Incentives ffii9Br:KfiiiffiieiaUisfisffinii provided by the City;
(7) Terms and conditions of rental inclusionary units as stipulated in
:3 Section 21.85.130; and
(8) Terms and conditions of for-sale inclusionary units as stipulated in
4 Section 21.85.140.
2
(c) An Affordable Housing Agreement, for which the inclusionary housing
5 equirement will be satisfied through payment to the City of any in-lieu contributions
other than fee monies (i.e. land dedication) shall be required to include the following: 6 (1) The method, schedule and value of total in-lieu contributions; and
7 (2) A determination of otherwise required per market-rate dwelling unit
• -lieu 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
e satisfying their inclusionary housing requirement through payment to the City of an
9 • -lieu fee or inclusionary housing impact fee.
21.85.190. Administrative Agreement for Inclusionazy Rental Units.
(a) All developers of residential projects, subject to an Affordable Housing
greement, pursuant to Section 21.85.180 (b) of this Chapter, and proposing to fulfill
12 eir inclusionary requirements through the development of rental units, shall enter into
Administrative Agreement for Inclusionary Rental Units with the City. The terms of
1 3 e Administrative Agreement shall be reviewed by the Planning Director and Director
14 f Housing and Redevelopment, and the final agreement signed by all parties prior to the
·ssuance of building permits for such lots or units. The Administrative Agreement for
15 nclusionary Rental Units shall be binding to all future owners.
11
(b) Administrative Agreement For Inclusionary Rental Units shall be required to
16 'nclude the following:
(1) Tenant income qualification process;
(2) Rent prices relative to the affordability standards of this Chapter, and
18 rocedure for adjustment, consistent with Section 21.85.130;
(3) Program for filling vacancies, consistent with Section 21.85.130;
17
19 ( 4) Reporting/monitoring program for complying with the maintenance of
e designated units regarding income qualification documentation and rent price
20 ocumentation;
21 (5) The procedures for compliance with this Chapter in the event that an
• clusionary unit or inclusionary housing project is destroyed or condemned, or a tenant
22 o longer qualifies by reason of changed household income or size; and
(6) A long-term maintenance plan for the units~ffilid
23 ::::JJtt-J.me.twtml:l;::=,::if:l:Ji\:=Pttt&r½'.Unrntl.l-.traaa£e.s~:rsg~mwa¥e.mmtdn.mlxe:m.ent~
24
21.85.200. Sales Agreement for Inclusionazy For-Sale Units. 25 (a) All developers of residential projects subject to an Affordable Housing
26 Agreement, pursuant to Section 21.85.170 (b) of this Chapter, and proposing to fulfill
their inclusionary requirements through the development of for-sale units, shall enter into
27 a Sales Agreement for Inclusionary For-Sale Units with the City. The terms of the Sales
28 Agreement for Inclusionary For-Sale Units shall be reviewed by the Planning Director and
27
• •
Director of Housing and Redevelopment, and signed by all parties prior to the issuance
l of building permits for such lots or units. The Sales Agreement for Inclusionary For-Sale
Units shall be binding to all future owners. 2 (b) Sales Agreement For Inclusionary For-Sale Units shall include the following:
(1) Owner income qualification process; 3 (2) Sales prices relative to the affordability standards of this Chapter, and
4 procedure for adjustment;
(3) Restrictions and enforcement mechanisms for the sale or resale of units,
5 consistent with Sections 21.85.140, 21.85.150 and 21.85.210;
( 4) A program for marketing available units, to include, a loan financing 6 ackage with a low notification requirement, to enable qualified households to purchase
7 e restricted units;
(5) The procedures for compliance with this Chapter in the event that an
8 • clusionary unit or inclusionary housing project is destroyed or condemned, a
ondominium association is liquidated, Bi a notice of default is recordedJ.~lll~RUI, or an 9 . ·······•···· . . ··································
11 21.85.210. Inclusionazy Housing Resale Agreement.
12 All buyers of for-sale inclusionary units shall enter into an Inclusionary Housing
esale Agreement with the City's Housing Authority prior to purchasing the unit or 13 roperty. The Resale Agreement shall specify that the fitle@o.nJffi subject unit or property
14 ay not be transferred through resale without prior .. approval of the City's Housing
uthority. The Resale Agreement shall establish such matters as are necessary to assure
15 he continued affordability of the unit to subsequent buyers, including, but not limited to
hose matters set out in section 21.85.200(b)(l) through W(§)i,
16
21.85.220. Eligibility Requirements and Tenant Selection. 17 (a) Only households meeting the standards for designated lower and moderate
18 • come groups as defined in Section 21.85.020 shall be eligible to occupy inclusionary
'ts.
19 (b) The managing/operating agency of rental and for-sale inclusionary units shall
eview the assets and income of prospective renters and purchasers of inclusionary units
20 d shall inform them of the requirements of this program.
21 :::'.:ff.Pt&l;ti~1P.l~ffl~~l:~~1t~0
~~d !~;1~~!,~!~~~111!if~~!!;~!/f-!~f~!f;!'~
22 ········ts··reserved·for·veij"low-income households:
(1) Very low-income Carlsbad resident/worker households without Section
23 8 certificates; and
(2) Very low-income households.
( d) The following priority UitJtJitdUfaitftmnttoifau.tJtiPffl¢ttP.ii2ritiffiii1tffieui.e.d 24
25 ::::'.ililllffilti:::11::mi::ffilwJ. shall be used for selecting tenants and purchasers of inclusionary uriits .. reseived··for·low~income households:
26
27
28
(1) Low-income Carlsbad resident/worker households;
(2) Low-income households.
28
• •
i ~~:~:~~~
2 (1) Moderate-income Carlsbad resident/worker households;
(2) Moderate-income households.
4 (f) In addition, priority shall be given to households of the following sizes in
5
6
7
8
9
10
11
13
elationship to the number of bedrooms available in each inclusionary dwelling unit:
No. of Bedrooms Households With Households With
Available First Priority Second Priority
Studio 2 persons 1 person
1 bedroom 2 persons 1 person
2 bedrooms 4 persons 3 persons or less
3 bedrooms 6 persons 3 persons or less
(g) The developer shall advertise the availability of the affordable unit to the
eneral public in accordance with the Developer's marketing plan.
21.85.230. Management and Monitoring.
(a) Inclusionary rental units shall be managed/operated by the owner of the units
r his or her agent. Each owner of inclusionary rental units shall submit an annual report
15 o the City identifying which units are inclusionary units, the monthly rent, vacancy
16 • ormation for each inclusionary rental unit for the prior year, monthly income for
enants of each inclusionary rental unit throughout the prior year, and other information
1 7 s required by the City, while ensuring the privacy of the tenant. The annual report shall
e due on the anniversary of the initial certificate of occupancy release date.
18 (b) The owner of the inclusionary rental units shall maintain all project related
ecords on file. The City shall have the right to inspect these records at any reasonable
19 • e.
20 (c) The City shall be entitled to have an independent audit of the owner's records
onducted once per year. Such audit shall be at the City's expense unless a violation of
21 his Chapter is discovered. The City shall give at least 48 hours notice prior to conducting
22
23
24
audit.
(d) No building permit shall be issued, nor any development approval granted, for
development which does not meet the requirements of this Chapter. No inclusionary
't shall be rented or sold except in accordance with this Chapter.
21.85.240. Administrative Fee for Inclusionazy Housing.
25 Over the minimum thirty-year tenure of projects containing inclusionary housing
nits the City will either directly or, via one or more third parties, provide a number of
26 ecurring services associated with the administration and monitoring of inclusionary units.
27 though the provision of some of these services will be within the normal purview of
existing City activities, others will involve new costs to the City for which there are no
28 existing funding sources. Unless and until alternative funding sources are identified it is
29
• •
ecessary to require the builders/ owners of residential projects to share in these
1 administrative costs. Therefore, the City Council hereby establishes afi administrative fee
or inclusionary housing, the amount to be established by City Councif"i-esolution and paid
2 rior to the issuance of building permit(s).
3
:~!:f.:~i!' ••••• ······················~. ·~
: ,:,~. /¼~·-··-~=
9 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption,
10
11
12
13
d the City Clerk shall certify to the adoption of this ordinance and cause it to be
ublished at least once in the Carlsbad Journal within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council
14 n the __ day of ____ _, 19 _, and thereafter.
15 PASSED AND ADOPTED at a regular meeting of the City Council of the City of
16 arlsbad on the __ day of 19 _, by the following vote, to wit:
17 AYES:
18 NOES:
19
ABSENT:
20
21 PROVED AS TO FORM AND LEGALITY
22
23
24 ONALD R. BALL, City Attorney
25 CIAUDE A. LEWIS, Mayor
26
27
28 ETHA L. RAUTENKRANZ, City Clerk 10/21/92)(arb)
30
California Health .fety Code
§ 50055. "Assisted housing"
• ATTACHMENT "A"
ZCA 91-6
"Assisted housing" means housing financed by a below-market inter-
est rate mortgage insured or purchased, or a loan made, by the
Secretary of the United States Department of Housing and Urban
Development or by the Farmers Home Administration of the United
States Department of Agriculture; or a market-interest-rate mortgage
insured or purchased, or a loan made in combination with, or as
augmented by, a program of rent supplements or subsidies, interest
subsidies, leasing, contributions or grants, or other programs as are
now or hereafter authorized by federal law to serve persons and •
families of low or moderate income; or a mortgage or loan made
pursuant to this division; or a mortgage or loan from any private or
public source with an interest rate and terms satisfactory to the
agency and which will meet the requirements and purposes of this
division.
Added Stats 1977 ch 610 § 2.
Prior Law: Former§ 41025, as added b~ Stats 1st Ex Sess 1975 ch 1 § 7.
Cross References:
Below-market interest: § 50056.
Financial interest: § 50068.
Market interest: § 50080.
Mortgage: § 50082.
39
ATTACHMENT "C"
INCLUSIOi\JARY HOUSING REQUIREMENTS
• Residential Project
("?:.7 DU's)
Residential Project
(s6 DU's)
Map Revision
(~ 7 DU 1s)
Map Revision
(s6 DU's)
Map Extension
Amendment
Application Deemed
Complete
Prior to Adoption
of Ordinance
~-
~
~
~
~
~
Approvals Granted
* Requirement depends upon: number of units within project,
date project approved, and original condition of app.roval
Effective Date of
lnclusionary Ordinance
~
I I
-Js,~,,>:,J~tl'~fic~iii~i~~ .t~ . .t,~~~ ~~ ~t ... -:·,~?£._~?o'FJ[.' ':; ·~ t~
r~~1ra1t~f
After Adoption
of Ordinance
-~ . •,:
·;; ,·
Pay Housing
Impact Fee
Pay In-lieu Fee
Build-OU's on Ground
•
*
* ..
.. . •
DECEMBER 20, 1990
TO:
FROM:
CITY MANAGER
Housing Task Force
INCLOSIONARY HOUSING PROGRAM
Background
• ATTACHMENT .,0.,
The current housing element has a policy which requires master
and specific planned communities to set aside a portion of
their dwelling units to be affordable to households with "low"
and "very low" (defined terms) incomes.
The goal of providing 567 units of lower-income housing in the
1985-1990 period, as targeted in the current housing element,
fell short by almost 40%. A previous numerical objective of
150 uni ts through an inclusionary program with master and
specific planned communities has not been reached due to a lack
of an implementable program.
The new housing element will have a lower-income fair share
goal twice as large as the previous element. Housing programs
such as Section 8, the use of redevelopment set-aside money and
other City-initiated housing programs will, if fully
implemented, achieve much less than half of the new fair share
goal. The remaining units will need to come from private
sector housing projects, and, in particular, from the master
and specific planned communities.
Allocation Process
The inclusionary program will require both annual and buildout
objectives as most communities will be builtout over 5 to 20
years. All master planned and specific planned communities
will require a minimum 15 percent of total units developed to
be affordable to lower income households.
The figure of 15 percent was based on current housing
projections and Carlsbad's fair share lower-income requirement
as indicated by the SANDAG "Regional Housing Needs Statement
1991-1995". The 15 percent will be assessed against all
remaining units in existing planned communities and on the
approved zone plans or master planned buildout numbers for
those communities yet to be built.
Authority for Inclusionary Program
Under State general plan law, subdivisions or discretionary
entitlements may be approved only if they are found to be
consistent with the general plan. Implementing tools such as
zoning, specific and master plans as well as any development
plans, shall be consistent with each element of the General
Plan including the policies, objectives, and programs set out
in the Housing Element.
•
CITY MANAGER
December 20, 1990
Page 2
•
To date, most master and specific planned communities have
included only general language or provisions addressing
obligations for affordable lower-income housing, but have not
included specifics. It is now time to set out specific
objectives and implementing mechanisms to assure the
obligations are met. A permanent program will be proposed as
part of the revised Housing Element, now being prepared. In
the interim, staff recommends adopting a set of temporary
objectives for inclusion of lower-income housing in master and
specific plans.
Staff has made an evaluation of the City's current housing
programs and estimated, consistent with local, state and
federal resources, the amount of lower-income housing that
could be developed in each of the different programs over a 5
year period. These programs are included in Table l titled
"Housing Program Production 1990-1995." The upper portion of
the table sets out five programs. The number of units that
staff feels realistically could be produced under these
programs would be 625 units.
The lower portion of Table 1 shows a five-year goal for each
master/specific planned community, based on its expected
phasing over a 5-year period. For master plans without
entitlements this target is based on staff's best estimates or
data from the Local Facilities Management Plans.
The total number of lower-income units that staff recommends be
required of each master plan over the total phasing and
buildout is shown in Table 2. Staff's recommendation is to
require 15% of all approved units (both overall and in each
development phase) be affordable to low and very-low income
households. An exception would be those partially completed
communities, such as Calavera Hills and La Costa, which would
have a requirement only on uni ts yet to be built in those
respective master plans.
Should all programs meet their minimum goals, these programs
for lower-income units would produce 1,480 units. This would
be enough to meet the "fair share" minimum of 1,125, but fewer
than the City's estimated housing need of 2,509 lower-income
units for the 1991-1995 period.
• CITY MANAGER
December 20, 1990
Page 3
Impaction
•
An inclusionary program, requiring master planned areas to
include low income housing would also mitigate several
potential negative effects that may be of concern to the
community.
As master planned communities are being built in the
predominately undeveloped quadrants of the City, an
inclusionary program would evenly distribute lower-income uni ts
throughout the City. This would avoid an undue concentration
of lower-income units in any one quadrant of the City. Failure
to equally distribute units throughout the City would force
future housing programs either to use infill areas in the
northwest quadrant, or, to retrofit units into previously
developed master planned areas. Developing the lower-income
units at the same time as market-rate units would assure that
the lower income units are integrated both physically and
architecturally within the master planned community. Lower
income units that are satisfactorily integrated into a
community are less likely to create problems and reduce the
negative NIMBY (Not-In-My-Backyard) attitudes that otherwise
might occur against these developments.
Since the adoption of the current Housing Element in 1986, no
implementing actions were taken to achieve a General Plan and
Housing Element policy of including lower-income units in
master or specific planned communities. currently all master
and specific plans need numerical objectives to be consistent
with this General Plan policy. No one program is sufficient to
meet the City's need. Because it is anticipated that master
and specific plans will account for the vast proportion of
future housing production, significant numbers of lower-income
units are proposed to be assigned to master planned
communities. To reach this numerical objective it is necessary
to require that at least 15 percent of all units to be built in
these communities, be for lower-income households.
It is necessary for these units be provided in every community
to avoid the negative effects of over concentration in any one
quadrant and avoid the need to try later to integrate lower-
income units into these master planned communities.
•
CITY MANAGER
December 20, 1990
Page 4
•
If directed, staff will prepare and implement an inclusionary
process that will assure that the program is effective.
A resolution to implement an interim inclusionary program will
assure development processing and planning will progress while
including lower-income housing in master plans until such time
a permanent program is given in the revised Housing Element.
Attachments
1. Table l
2, Table 2
arb
c:mclus.agcuui
TABLE 1
PROGRAM
INCLUSION ARY
(OTHER)
SECTION 8
SENIOR
HOUSING
DENSITY
BONUS
HOUSING
DEVELOP~1ENT
SUBTOTAL
INCLUSIONARY
MASTER&
SPECIFIC
PLANS
TOTAL
FAIRSHAR.E
HOUSING GOAL
• •
HOUSING PROGRAM PRODUCTION
~990-1995
Fairshare /lower income. 80% of Co. median
LFMP
ZONES UNITS
All ALL 200
SUBDIVISIONS
ADDITIONAL ALL 100
VOUCHERS
HOUSING DEV. ALL 75
under SENIOR
Ordinances
SUBDIVISIONS ALL 50
USING
DENSITY BONUS
CITY DEVELOPMENT ALL 200
EFFORT
CDBG&REDEV FUNDS
625
MASTER PLAN LFMP 15%
ZONE Low Income
Arroyo La Costa 12 49
Cote D'Azur 8 54
Carillo Ranch 18 75
Calavera Hills 1 68
Aviara 19 201
Zone20 20 101
Sammis 9 29
Sunny Creek 15 21
Sycamore Creek 15 13
La Costa 6, 11, 10 248
TOTAL 855
14801
.. . .
TABLE 2
MASTER PLANNED COMMUNmES LOW INCOME ALLOCATION
15%model
Assumptions
•
This Model uses the Local Facilities Management Plan for buildout and Phasing Proiections
w (~ ~
MASTER PLAN LFMP TOTAL MASTER
I
TOTAL LOW 5 year
ZONE PLANNED UNITS INCOME UNITS AT M.P.
BUILDOUT (15%) Phasing
Arroyo La Costa 12 1076 ~,, -161 324 {fr -a Cote D Az\Jr 8 1214 182, 360
Carrillo 18 2001 300 500
c.Javera 7 1232 185 440
Aviara 19 -2740 411 1344
Zone 20 20 2192 329 672
Sammis 9 449 67 192
Sunny Creetc 15 138 21 138
Sycamore Creek 15 88 13 88
La Costa 6, 11, 10 2648 397 1643
TOTAL I 13,778 1 2067 5701
(D)
5 YEAR IJ
Low lncom .
GOAL(15%~
49
54
75
66
202
101
29
21
13
246
855
(Col. Ax15%) LFMP (Col Cx15%)
• • •
CITY OF CARLSBAD
ECONOMICS OF DEVELOPING AFFORDABLE HOUSING
Prepared by:
The Ad Hoc (Density Bonus/Inclusionary Housing) Committee
City of Carlsbad
Principal Editors:
Chris Decerbo, Senior Planner
Leilani Hines, Planning Intern
. Planning Department
City of Carlsbad
2075 Las Palmas Drive
Carlsbad, California 92009
619/438-1161
December 1991
• •
Ad Hoc (Density Bonus/Inclusionary Housing) Committee
Public Participation
Doug Avis*
Nancy Calverley
George Havier
Paul K!ukas
John McCoy
Gerald Messineo
Sydney Novell
Michael O'Gara
Jerry Rombotis
Sandy Sanderson
Mike Stewart
Georg~ Walker
City of Carlsbad
Cheryl Allen
Chris Decerbo
Jim Elliot
Debbie Fountain
Kathy Graham
Robert Green
Leilani Hines
Karen Sauer
Dennis Turner
Bob Wojicik
Benchmark Pacific •
ReVisions Resources (Non-Profit Organization)
William Lyon Companies
Hillman Properties/ A viara
Residential Builder
Hallmark Development Group
Hallmark Development Group
Multi-family Residential Builder
Residential Builder
Civic Center Barrio Housing Corporation (Non-Profit Organization)
San Diego County Non-Profit Federation for Housing and
Community Development
Fieldstone/Villages of La Costa
Davidson Communities •
Finance Department
Planning Department
Finance Department
Housing & Redevelopment Department
Housing & Redevelopment Department
Planning Department
Planning Department
Housing & Redevelopment Department
Planning Department
Engineering Department
* Selected as "Facilitator" by the Ad Hoc Committee
• The City of Carlsbad sincerely thanks the public.members of the Ad Hoc Committee for their
generous contributions of time and expertise.
•
• •
CITY OF CARLSBAD
ECONO!\HCS OF DEVELOPING AFFORDABLE HOUSING
SL.\1:\-JARY
One of the primary conclusions of the City of Carlsbad's Revised Housing Element,
October 22, 1991, is that there exists a large need for, but a lack of housing affordable to
households in the lower income groups. The Revised Housing Element contains programs which
are directed at the provision of affordable housing within the City.
In order to understand the economics of de\'eloping affordable housing, City staff assembled an
Ad Hoc Committee composed of master plan and infill residential builders, non-profit builders
and City staff (Planning, Housing and Redevelopment, Finance and Engineering Departments).
The Ad Hoc Committee prepared a report that presents an economic model regarding the
development of affordable housing. The report presents one scenario for the cost of
development and operation of new housing units within the City. This report does not make
specific recommendations and is intended to serve as an informational tool only.
The project and assumptions used in the report serve only as a model to examine development
costs in the City of Carlsbad. For the purposes of this report, a generic project of two
bedroom/one bath or three bedroom/two bath units was examined.
The following are the main findings of the economic model presented in this report:
• The costs of constructing and operating new housing units (not including developer
profit) in the City of Carlsbad are high, ranging from $134,200 to $156,600;
• There exists a significant gap between what a lower-income household can afford to pay
for housing and the costs to produce a unit in Carlsbad (affordability gap), ranging from
over $75,000 to nearly $120,000;
• The affordability gap is less costly for for-sale units than rental units;
• The financial burden of the affordability gap is too heavy for only one segment of the
community to bear; and
• With all members of the community working creatively, cooperatively, and aggressively
it is possible to overcome the affordability gap.
• •
Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •. . . . . . 1
Purpose ~f Ad Hoc Committee and the Report . . . . . . . . . •. . . . . . . . . . . . . . . ; . 1
• Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Economic Model of Developing Affordable Housing . . . . . . . . . . . . . . . . . . . . . . . 7
Housing Production Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Homeowner Affordability Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Renter Affordability Gap ........................................ 16
Comparing For-Sale and Rental Unit Affordability Gaps . . . . . . . . . . . . . . . . . . . . 19
Filling the Affordability Gap . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . 21
. .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
Economic Incentives to Reduce the Affordability Gap . . . . . . . . . 28
Methodology for Determining Maximum Mortgage Payments and
Tenant Supported Debt .......... _ . . . . . . . . . . . . . . . . . 37
Worksheets to Determine capital Subsidies ............... 41
Inclusionary Housing Proforma Outline . . . . . . . . . . . . . . . . . 50
• •
CITY OF CARLSBAD
ECONOMICS OF AFFORDABLE HOUSING
Introduction
This report is presented as an informational tool that should be helpful in understanding the
economic difficulties associated with building affordable for-sale and rental housing units within
the City of Carlsbad. The State of California requires local governments to undertake revisions
to Housing Element~ every five years. Housing Elements include specific goals, objectives,
policies and programs pertaining to housing. One of the primary conclusions of the City of
Carlsbad's Revised Housing Element, October 22, 1991, is that there exists a large need for,
but a lack of housing affordable to households in the lower income groups. The Housing
Element contains 50 Housing Action Programs many of which are directed at the provision of
affordable housing within the City.
The total number of lower-income affordable dwelling units projected to be developed within
the City by July 1, 1996, through the City's Housing Action Programs is 1400. The majority
of these affordable dwelling units are expected to be developed through the City's proposed
Inclusionary Housing Program, which requires that a minimum of 15 % of all future residential
units developed in any master plan, specific plan or qualified subdivision be affordable to lower-
income households.
Purpose of Ad Hoc Committee and the Report
In order to understand the economics of the development of affordable housing, City staff
assembled an Ad Hoc Committee composed of master plan and infill residential builders, non-
profit builders and City staff (Planning, Housing and Redevelopment, Finance and Engineering
Departments).
The primary objective of the Ad Hoc Committee was to develop an economic model regarding
the development of affordable housing. This model would have to: (1) quantify the typical costs
of developing market-rate housing in Carlsbad; and (2) identify the monetary difference
(affordability gap) between these costs and the amount that a lower-income household could
afford to pay for housing. Finally, the Ad Hoc Committe was to consider what-types of City
assistance (i.e.; additional density, waivers· of fees, modifications of development standards, or
direct subsidies) could be brought to bear to reduce this affordability gap .
. . 1
• •
This report presents one scenario for the cost .of development and operation of new housing units
within the Ci~y and will not present the costs of -acquiring existing housing within the City for
occupancy by lower-income households. The per unit costs of acquiring existing housing may
be significantly less costly than constructing and operating new housing units.· In accordance,
the affordability gap between what a lower-:-ipcome household co~ld pay for an existing unit and
the per unit costs of acquiring that unit wotiJd be reduced proportionally.
This report presents a set of findings regarding the economics of affordable housing development
within the City of Carlsbad based upon an economic model created by the Ad Hoc Committee.
The economic model and its findings contained in this report rnay or could be used to identify
what the City, development community, and non-profit organizations may bring to bear to
reduce the affordability gap. The model and the findings of this report will· also be used in
conjunction with the results of additional studies, to determine the dollar value of an affordable
housing in-lieu fee (1991 Revised Housing Element Program 3.6.c.) and to enable the
implementation of a number of affordable housing incentive programs identified in the 1991
Revised Housing Element including: development standards waivers (Program 2.2), fee waivers
(Program 3.7.e), priority processing (Program 3.7.t), in kind. improvements (Program 3.7.g),
and density increases (Program 3. 7. i).
This report will be presented to the ·carlsbad Planning Commission and City Council and made
available to the general public. •
Definitions
. .
The City of Carlsbad's 1991 Revised Housing Element defines several household income levels.
Within this report, the specified income level will be used to determine the dollar amount that
each household could afford to pay for housing. Affordable housing programs require
definitions of. the target income groups to be assisted. These definitions are consistent with
federal and state policies. The definitions are noted in Table 1.
·TABLE 1
Income Definition
Level (a)
Low income Those households whose income is at least fifty percent but
less than eighty percent of the County median income
-adjusted for household size.
Very low Those households whose income is fifty percent or less of
income the County median income, adjusted for household size.
NOTES:
(a) San Diego County median income: $41,300 (family of four)
U.S. Department of Housing and Urban Development, April 1991
2
• •
Lower-income households refers to both low-income and very low-income households.
Consistent with federal, state and the City of Carlsbad policy, the definition of affordable
housing payments for renters and homeowners assumes that no household should pay more than
30 percent of the gross family income for "housing payment". The term housing payment refers
to the total costs of a household to obtain shelter through the rental or purchase of a dwelling
unit.
For renters, Jhe total housing rent would include the payments for the use and occupancy of the
housing unit and a reasonable allowance for utilities. For home owners, the total housing
payment would include all of the following associated with that housing unit:
• Principal and interest on the mortgage loan, and any associated mortgage insurance fees;
• Property taxes and assessments;
• A reasonable allowance for utilities; and
• Homeowners association fees (includes property/hazard insurance).
If no assistance is provided by a public body in the production or occupancy and use of a
housing unit, affordable housing payments are pegged at the top end of each income group (see
Table 2). Specifically, housing payments for a low-income household are based upon 30 percent'
of 80 percent of the County median income, adjusted for household size. For a very-low income
household, housing payments are based on 30 percent of 50 percent of the County median
income, adjusted for household size. However, it is important to understand that while a
dwelling unit is technically affordable to a low income household with a rent pegged at 80
percent of the County median income, it is in fact not affordable to other families in that income
category 'whose income is below 80 percent of the County median income.
Section 50052.5 of the California Health and Safety Code defines affordable housing payments
for households of moderate and lower-incomes residing in any housing development which
receives governmental assistance as of January 1, 1991 (see Table 2). If government assistance
is provided, housing payments for a low-income household are based upon 30 percent-of 70
percent of the County median income, adjusted for household size (see Tables 3 and 4). For
a very-low income household, housing payments are based on 30 percent of 50 percent of the
County median income, adjusted for household size.
Governmental assistance is interpreted as any assistance in the production or occupancy and use
of housing given by a public body. Housing production assistance would include such items as:
• Density bonus; •
• Waiving/subsidizing processing and facilities fees;
• Land donations; and
• Financing/funding assistance.
Governmental assistance in the occupancy and use of a dwelling unit refers to rental assistance.
Rental assistance ·is rent subsidies through such programs as Section 8.
3
I
• •
TABLE 2
ANNUAL AFFORDABLE HOUSING COSTS AND RENTS I
Income For-Sale Units Rental Units
Level Assisted (a) Unassisted Assisted (a) Unassisted
Low 30% of 70% of 30% of 80% of 30% of 60% of 30% of 80% of
income the County the County the County the County
median income median income median income median income
(b) (b)
Very low 30% of 50% of 30% of 50% of 30% of 50% of ~0% of 50% of
income the County the County the County the County
median income median income • median income median income
Notes:
(a) Per Sections 50052.5 and 50053 of the California Health and Safety Code.
(b) With optional higher housing cost linked to actual income at the top end (above
60 % ) of the income category
4
TABLE 3
LOWER INCOME HOUSING ALLOWANCE FOR FOR SALE UNITS -ASSISTED
Affordable housing allowance (including loan principal, loan interest, property and mortgage insurance, property taxes and home
owners association dues), adjusted for family size
PERSONS/FAMILY SIZE ONE TWO THREE FOUR FIVE SIX
LOW INCOME (50 to 80 percent of median)
YEAR $20,250 $23,100 $26,050 $28,900 $31,200 $33,550
MONTH $1,687 $1,925 $2,171 $2,408 $2,600
HOUSING Payments $506 $577 $651 $723 $780
(Based upon 70% of the median)
VERY LOW INCOME (50% and below of median)
YEAR $14,450 $16,500 $18,600 $20,650 $22,300
MONTH $1,204 $1,375· $1,550 $1,721 $1,858
HOUSING Payments . $361 $413 $465 $516 $558
(Based upon 50% of the median)
BASED ON SAN DIEGO COUNTY MEDIAN FAMILY INCOME OF $41,300 (family of four)
U.S. Department of Housing and Urban Development, April 1991
Housing payments are based on 30% of gross monthly income.
5
$2,796
$839
$23,950
$1,996
$599
SEVEN EIGHT
$35,850 $38,150
$2,988 $3,179
$896 $954
$25,600 $27,250
$2,133 $2,271
$640 $681
l-
•
•
TABLE 4
LOWER INCOME HOUSING ALLOWANCE FOR RENTALS VNITS -ASSISTED
Affordable housing allowance (including utilities), adjusted for family size
PERSONS/FAMILY SIZE ONE TWO THREE FOUR FIVE
LOW INCOME (50 to 80 percent of median)
YEAR. $17,350 $19,800 $22,300 $24,800 $26,750
MONTH $1,446 $1,650 $1,858 $2,066 $2,229
RENT (Including utilities) $434 $495 $557 $620 $669
(Based upon 60% of the median)
VERY LOW INCOME (50% and below of median)
YEAR $f4,450 $16,500 • $18,600 $20,650 $22,300
MONTH $1,204 $1,375 $1,550 $1,721 $-1 ,858
RENT (Including utilities) $361 $413 $465 $516 $558
(Based upon 50 % of the median)
BASED ON SAN DIEGO COUNTY MEDIAN FAMILY INCOME OF $41,300 (family of four)
U.S. Department of Housing and Urban Development, April 1991
Rents are _based on 30% of gross monthly income
6
SIX
$28,750
$2,396
$719
$23,950
$1,996
$599
SEVEN EIGHT
$30,700 $32,700 • $2,558 $2,725
$767 $818
$25,600 $27,250
$2,133 $2,271
$640 · $681
•
~
• •
Economic Model of Developing Affordable Housing
The economic model developed by the Ad Hoc Committee includes specific variables and
assumptions concerning each variable relative to the cost of develop~ent of housing in Carlsbad
and the amount a lower-income household could afford to pay for housing.
It is important to understand that the dollar values generated through this model are based upon
assumptions regarding each of the variables of the model. If any of the assumptions are
changed, including the project description, the dollar values will change. The assumptions made
in this report are reasonable for 1991.
PROJECT DESCRIPTION
This model will analyze the development costs for a generic two bedroom/one bath condominium
of 850 square feet and three bedroom/two bath condominium of 1,100 square feet. The project
site is assumed to be topographically level, without view premiums, or significant noise or land
use constraints.
A density of 20 dwelling units (du's) per acre is used although under the current General Plan
of Carlsbad, 19 du 's per acre is the maximum density allowed within the City·. This density can
be achieved in two-story construction.
The assumed project design is standard Spanish style with a tile roof and stucco exterior. The
building has some architectural treatment around the windows, patios and balconies. · The
structures would be two-story, conventional wood frame with no elevators, and strictly walk up.
All buildings and units would comply with existing City development and design standards,
policies and regulations.
Parking is assumed to be a combination of one covered parking space per unit in the footprint
of the building and another covered space (carport) within a 150' radius, as required by the
City's Planned Development Ordinance. Guest parking would be satisfied by open parking
scattered throughout the site.
COST OF DEVELOPMENT
The cost of development is equal to the sum of the following variables:
• Land costs;
• Offsite costs;
• Recreation and amenities;
• Land carry;
• Onsite costs;
• Overhead costs;
• Selling/Marketing costs; and
• Finance costs.
7
•
The assumptions for each of these variables is further discussed in the Housing Production Costs
section of this report.
MAXIMUM AFFORDABLE HOUSING PAYMENT
The maximum affordable housing payment for a lower-income household takes into account the
the following variables:
• Total housing· allowance;
• Property taxes;
• Reasonable allowance for utilities; and
• Homeowners_ association fees (includes property/hazard insurance).
The assumptions for these variables are further discussed in the Homeowner Affordability Gap
and the Renter Affordability Gap sections of this report.
For this model, the total housing allowance is derived on the assumption that governmental
assistance is provided (recall Tables 3 and 4). As the following analysis will indicate, the gap
between what lower income households can afford to pay for housing and what it costs to
construct and operate such housing in Carlsbad is_ substantial. .
Furthermore, pursuant to Section 50052(c) of the California Health and Safety Code, 'the total
housing allowance is also derived on the assumption that a lower-income family of three will
reside in a two bedroom unit: A lower-income family of four will reside in a three bedroom
unit.
8
• •
Housing Production Costs
To calculate the cost of development for both for-sale and rental units in the City of Carlsbad,
a series of assumptions regarding the following variables was established. These variables
include:
• Land costs;
• Offsite costs;
• Recreation and amenities;
• Land carry;
• Onsite costs;
• Overhead costs;
• Selling/Marketing costs; and
• Finance costs.
It is assumed that the development cost figures for a for-sale or rental multi-family project are
similar. Development cost figures are based on the assumption of the above referenced generic
project. This analysis uses average numbers that builders could encounter in the City of
Carlsbad. The total development cost assumes no developer profit will be made.
Land costs have been calcuiated to be $20,000 per dwelling unit. This was obtained by using
a land cost of $400,000 per acre, which is a typical cost of unimproved land within many of the
Master Plan Areas of the City. Land costs for the developed downtown area or along the coast
could range anywhere from $600,000 to $1 million per acre.
Off site costs, as discussed below, have been placed into four categories:
• Predevelopment;
• Land development costs;
• Processing/permit fees; and
• Facilities Management Fees.
Predevelopment costs are those costs associated with preparing all required plans and reports
necessary for processing discretionary applications within the City. These costs include dollars
paid to private consultants (engineers, planners and environmental consultants) to prepare Local
Facility Management Plans, Financing Plans, tentative maps, site plans, architectural elevations
environmental studies and any other required submittals. This model assumes predevelopment
costs of $5,000 per two bedroom dwelling unit and $5,500 per three bedroom dwelling unit.
9
• •
Land development costs includes anything that needs to take place on the ground in order to
generate the new shape of the site and all the underground facilities/improvements needed to
service the buildings. Such items include the physical CO!'}Struction to reshape the land (grading),
installation of sewer, water, storm drain, dry utilities (gas, electric, telephone, cable TV) and
retaining walls if needed. This mod.el assumes a $22,000 land pevelopment cost.
Processing/permit fees would include typical fees paid to develop multi-family units in Carlsbad.
Such fees would include the following:
• Plan check fees (grading, sewer, water, improvements, landscape, building);
• Inspection fees (sewer, water, improvements, landscape, building);
• Permit fees (grading, sewer, building);
• Processing fees (tentative maps, final maps, EIA, other application fees); and
• Special assessment fees (Mello Roos, public facilities, traffic impact, bridge &
thoroughfare, school, park in-lieu, drainage area, fire hydrant).
Average processing and permit fees in Carlsbad amount to $18,000 per dwelling unit.
Facilities Management Fees are costs associated with financing the public facilities and
infrastructure required within a Facilities Management Zone. Once the facilities zone plan has
been completed and facilities shortfalls have been identified, developers are required to pay the
costs to finance the construction of these needed facilities. This amount can vary anywhere from
$500 to $20,000 per unit depending on the Facilities Management Zone the project is located
within and the facilities that need to be buHt. A $10,000 per dwelling unit cost is used for the
Facilities Management Fees.
The recreation and amenities cost is derived from the requirements of the Planned Development
(PD) ordinance. This includes costs for passive (open space) and active recreation amenities
(i.e. swimming pools, spas). Individual developer costs for recreation and amenities will vary.
This model allocates $4,000 per dwelling unit in recreation anci amenities.
Land carry is the financing cost to carry land from when a loan is obtained from a lender for
the purchase of property until development actually starts. For a for-sale project, this loan was
assumed to be 3 years at 10% interest rate, compounded annually. For a rental project, this loan.
was assumed. to be 18 months at 10% interest rate, compounded annually.
Onsite costs are divided into two categories: direct and indirect costs. Direct onsite costs are
the hard costs to act.ually construct the buildings. To construct a two-story conventional wood
frame multi-family project at 20 du's/acre with i10 elevator service or subterranean parking, the
1991 hard costs are assumed at $42 per square foot. This includes the lumber, bricks, framing,
foundation, stucco, drywall, electrical, heating, plumbing, and roofing.
10
• •
The 1991 hard cost of construction ($42/sq ft) does not include the costs of fulfilling the new
Housing and Community Development (HCD) Emergency Regulations with regard to Title II
of the Americans with Disabilities Act (ADA) and the Fair Housing Amendment Act. A four-
story and higher density project would call for steel and concrete construction and elevator
service. The hard costs per square foot would be much higher in both instances.
Onsite indirect costs are calculated at $3.50 per square foot. Onsite indirect costs include the
construction trailer placed onsite with its associated utility and telephone costs, portable toilets,
miscellaneous equipment rentals throughout project construction, labor salary, superintendent
salary, warranties, architects, and structural engineers. The indirect costs basically covers the
costs of personnel, office and administration costs to run a project from a field office.
Overhead is the personnel, office and administrative costs which are not field associated. It is
calculated at 4 percent of the selling price or projected selling price of the unit. This percentage
is the standard percentage used in the industry.
There are selling costs to attract future home buyers and marketing costs to attract future renters
to a residential. project. These costs would include the cost of a selling commission, realty
company, in-house staff, newspaper advertisements, signs, flags, models and associated costs
or brochures needed to market the product.
It is assumed that marketing costs for a rental project could range from 1 to 2 percent of the cost
to build the project.
A conservative estimate of 5 percent of the selling price of the unit is used to calculate the
selling costs. This percentage is reflective of a good and active market, where very little
advertising and no incentives would be utilized. Today with a tough market, the selling costs
could range anywhere from 10 to 15 percent. Sellers now use incentives, such as creative
financing and buy downs to help sell their products.
The last development cost is financing the actual construction of the dwelling unit. Financing
costs of for-sale and rental projects are assumed at 6 months at 10 percent. An additional
financing cost for rental projects includes permanent loan origination fees of 2 percent of the
loan.
Homeowner Affordability Gap
Based on the assumptions made, Table 5 below summarizes the estimated Carlsbad construction
costs for a for-sale dwelling unit. For a two bedroom/one bath condominium of 850 square feet,
the estimated development cost is approximately $142,900. For a three bedroom/two bath
condominium of 1,100 square feet, the estimated development cost is approximately $156,600.
No profit is included. The estimated construction costs are cost-to-produce the units only.
11
•· •
Table 5
ESTIMATED CARLSBAD CONSTRUCTION COSTS -FOR SALE
. (ASSUMES NO PROFIT)
Unit Size 2 Br/1 Ba 3 Br/2 .Ba
Square Footage/Unit 850 1,100
Land Cost@$ 400,000/Acre· $20,000. $20,000
@ 20 Du's/Acre
Offsites:
• Predevelopment $5,000 $5,500
• Land development costs $22,000 $22,000
• Facilities Management Fees* $10,000 $10,000
• Processing/permit fees $18,000 $18,000
Recreation & Amenities $4,000 $4,000
SUBTOTAL -Cost for Improved Land $79,000 $79,500
Land Carry -3 years $7,200 $ 7,200
Onsites:
• Directs (hard costs) @ $42/sq ft $35,700 $46,200
• Indirects @ $3.50/sq ft • $3,000 $4,000 :
Overhead @ 4 % of Sales Price $5,000 $5,500
Selling @ 5 % of Sales Price $6,500 $7,100
Finance (Construction) $6,500 $7,100 -
..
T01)\V-COSTS • $142,900 $156,600
-. NOTES:
iTALIC
*
. Italic face type indicates cost factors that could range widely in Carlsbad
-depending upon the location of the property (i.e. Local Facilities
Management Zones) and other factors.
Varies by zone ($500 -$20,000 per dwelling unit)
12
• •
Table 6 shows the maximum monthly affordable housing payments that different income levels
could afford to pay to service a mortgage for a two bedroom/one bath or three bedroom/two
bath dwelling unit. This maximum monthly affordable housing payment is obtained after
subtracting the costs associated with homeowner association fees, utilities, and property tax from
the total monthly affordable housing payment.
Under current development standards, policies and regulations, this project would necessitate a
planned development. Planned developments include commonly owned· property and private
streets which would require that a homeowners' association be established. Typical
homeowners' association fees are assumed to be $100 per month. The fee covers such expenses
as administration, property (hazard) insurance, landscaping, and maintenance and operating
costs.
A reasonable utility allowance is assumed to be $50 per month for a two bedroom/one bath and
$60 per month for a three bedroom/two bath unit. This is a typical allowance as derived from
the City of Carlsbad Housing and Redevelopment Department -Utility Allowance.
This report further presumes a property tax rate of 1.2 % of the selling price of the unit. With
a down payment, property mortgage insurance is not required and is not included for this report .
• TABLE 6
Maximum Monthly Affordable Mortgage Payments (Assisted)
Unit Size 2 BR/1 BA 3 BR/2 BA
Income· Level Low Very Low Very
Low Low
Total monthly affordable housing allowance $651 $465 $723 $516
Homeowners' association fees $100 $100 $100 $100
Utilities $50 $50 $60 $60
Property· Tax $60 $35 $65 $40
Maximum Monthly Affordable Mortgage $441 $280 $498 $316
Payments
A low-income family of three, residing in housing that has received either housing production
assistance or rental assistance from the government, would be able to contribute $651 to cover
total monthly housing expenses (see Table 3). The maximum affordable mortgage payment for
this family would be $441 per month(see Table 6). A low income family of four, residing in
an assisted unit, would be able to contribute $723 to cover total monthly housing expenses. The
maximum affordable mortgage payment for this family would be $498 per month.
13
• ••
Table 7 illustrates the capital subsidy required to make a two bedroom/one bath or three
bedroom/two bath condominium affordable to lower-income households. Thes~ figures assume
90 percent financing and a 10 percent down payment, but do not include loan origination fees,
points and other costs necessary to close an escrow.
TABLE 7
TENANT SUBSIDY REQUIREMENTS AT INCOME LEVELS AND UNIT S~ZES
FOR CARLSBAD (ASSISTED FOR-SALE UNITS)
Unit Income I Maximum Monthly Maximum Down Development Capital
Size Level Affordable Mortgage payment Cost (e) Subsidy
(a) Mortgage Payments _ Payment (c). (d) Required
(b) (t)
Low $441 $50,252 $5,584 $142,900 $87,064
2 BR/ Income
1 BA Very $280 $31,906 $3,545 $142,900 $107,449
Low
Income
Low $498 $56,748 $6,305 $156,600 $93,547
3 BR/ Income
2 BA Very $316 $36,008 $4,001 $156,600 $116.,591
Low
Income
NOTES:
(a) Based on San Diego County median family income of $41,300 (family of four)
U.S. Department of Housing and Urban Development, April 1991
(b) Mortgage payments are based on 30% of gross monthly income, minus 1.2% property
tax rate; $100 per month homeowner association fees; and. reasonable utility
allowance.
(c) Based on 10% fixed rate 30 year mortgage. (see Appendix B)
(d) Assumes 10% down payment but d9es not include the 2 points and other loan
origination and closing costs. In practice, many lower-income households will .find it
very difficult to provide the down payment and l_oan costs.
(e) Taken from Table 5 (Estimated Carlsbad Construction Costs -For Sale)
(f) Capital subsidy required is based on the development cost of the unit minus the maximum
mortgage payment and down payment •
14
• •
As shown in Table 7, the $441 a month available to a family of three for affordable housing
payments would service a mortgage of $50,252. With costs of developing a two bedroom unit
at $142,900, there is a $87,064 gap between the costs of developing the unit and the maximum
mortgage which can be supported by a low income family of three.
A low income family of four would have available $498 to service a mortgage of $56,748. The
gap between the costs to develop a three bedroom unit and the maximum mortgage payment with
a 10 percent down payment is approximately $93,547 (see Table-7).
15
•
Renter Affordability Gap
Based on the earlier assumptions, Table 8 below summarizes the estimated Carlsbad construction
costs for a rental dwelling unit.
TABLE 8
ESTIMATED CARLSBAD CONSTRUCTION COSTS -RENTAL
(ASSUMES NO PROFIT)
Unit Size 2 Br/1 Ba 3 Br/2 Ba
Square Footage/Unit 850 1,100
Land Cost @ $ 400,000/Acre $20,000 $20,000
@ 20 Du 'sf Acre
Offsites:
• Predevelopment $5,000 $5,500
• . Land develo1jment costs $22,000 $22,000
• Processing!permir fees $18,000 $18,000
• Facilities managemellf fees* $10,000 $10,000
Recreation & Amenities $4,000 $4,000
SUBTOTAL -Cost for Improved land $79,000 $79,500
Land Carry -18 Months $3,000 ". $3,000
Onsites:
• Directs (hard costs) @ $42/sq ft $35,700 $46,200
• Indirects @ $3. 50/ sq ft $3,000 $4,000
Overhead @ 4 % of Sales Price $5,000 $5,500
Marketing 1 -2 % of Cost to Build $2,000 $2,200
Finance (Construction and Permanent) $6,500 $7,100
TOTAL COSTS $134,200 $147,500
NOTES:
ITALIC
*
Italic face type indicates cost factors that could range widely in Carlsbad
depending upon the location of the property (Le. Local Facilities
Management Zones) and other factors.
Varies by zone ($500 -$20,000 per dwelling unit)
16
• •
For a two bedroom/one bath apartment, the estimated development cost is approximately
$134,200. For a three bedroom/two ba_th apartment, the estimated development cost is
approximately $147,500. The development costs for rental units are a little lower than for-sale
units because of: 1) a shorter finance cost for land carry, 18 months versus 3 years for a for-
sale unit; and 2) lower marketing/selling costs, 1 -2 percent of cost to build for rental units and
5 percent of sales price for a for-sale unit.
Table 9 shows the maximum monthly affordable housing rents which different income levels
could afford to put towards renting a two bedroom/one bath or three bedroom/two bath dwelling
unit. The maximum monthly affordable housing rents are obtained by subtracting the utility
allowance from the total monthly affordable housing allowance. It is assumed that there is a $50
per month utility allowance for a two bedroom unit and a $60 utility allowance for a three
bedroom unit.
TABLE 9
Monthly Affordable Housing Rents (Assisted)
Unit size 2 BR/1 BA 3 BR/2 BA
Income Level Low Very Low Low Very Low
Total monthly affordable housing payments $557 $465 $620 $516
Utilities $50 $50 $60 $60
Maximum Monthly Affordable -Housing Rents $507 $415 $560 $456
17
•• •
Table 10 summarizes the cash flow that can be obtained from the various income levels to
support a debt and the subsidy requirements for rental units at the lower income levels. The
$507 a month a family of three would be able to contribute for housing rents, would only
produce $30,845 towards paying the total development costs of the unit. A low income family
of four would only produce $34,069 towards paying the actual total development costs.
With costs of developing a two bedroom unit at a $134,200 and a low income family of three
only contributing $30,845, there is a $103,355 affordability gap. The gap between the costs to
develop a three bedroom unit and the tenant supported debt by a low income family of four is
approximately $113,431.
TABLE 10
T_ENANT SUBSID'y REQUIREMENTS AT INCOME LEVELS AND UNIT SIZES FOR
CARLSBAD (ASSISTED RENTAL UNITS)
Unit Income Maximum Monthly Tenant Development Capital
Size Level Affordable Housing Supported Debt Costs (d) Subsidy
(a) Rents (b) (c) Required (e)
2 BR/ Low $507 $30,845 $134,200 $103,355
1 BA Income
Very Low $415 $25,248 $134,200 '$108,952
Income.
3 BR/ Low $560 $34,069 $147,500 $113,431
2 BA Income
Very Low $456 $27,742 $147,500 $119,758
Income
NOTES: .
(a) Based on San Diego County median family income of $41,300 (family of four)
U.S. Department of Housing and Urban Development, April 1991
(b) Rents are based_on 30% of gross monthly income
(c) Based on 10% fixed rate 30 year mortgage. Assumes 1.18 debt coverage ratio, 7%
vacancy rate and 30% annual operating cost. (see Appendix B)
(d) From Table· 8 (Estimated Carlsbad Construction costs -Rental)
(e) Capital subsidy required is based on the development cost of the unit. minus the tenant
supported· debt 1
18
• •
Comparing For-Sale and Rental Unit Affordability Gaps
Table 11 compares the capital subsidy that would be required for a for sale unit versus a rental
unit by unit si-ze and income levels. The capital subsidy required to make a unit affordable to
a lower-income household is significant, whether or not public assistance is given for housing
production or occupancy of the unit.
TABLE 11
TENANT SUBSIDY REQUIREMENTS AT INCOME LEVELS AND UNITS
SIZES FOR CARLSBAD
Capital Subsidy Required
Unit Income For-Sale Units Rental Units Size Level
Assisted Unassisted Assisted Unassisted
2 BR/ Low $87,064 $75,289 $103,355 $91,978
1 .BA Very Low $107,449 $107,449 $108,952 $108,952
3 BR/ Low $93,547 $80,506 $113,431 $100,898
2 BA Very Low $116,591 $116,591 $119,758 $119,758
NOTES:
Development costs and standards for affordability assumptions are identical to those
appearing in rables 7 and 10.
The capital subsidy required to make the unit affordable to lower-income households will prove
less costly in homeownership tenure than renter tenure. The capital subsidy required for a for-
sale unit is less because of the 10 percent down payment made by the lower-income household
and the similar development costs of for-sale and rental dwelling units.
In practice, many lower-income households will find it very difficult to provide the down
payment and loan costs. If a lower-income household is unable to provide the down payment
and loan costs, other funding sources must be accessed to subsidize these costs. There are
government programs such as Matching Down Payment Program (CHFA) and private
foundations that can assist lower-income households with a down payment and loan costs.
If the down payment and loan costs have to be subsidized, the true capital subsidy required to
make a home affordable to a lower-income household will increase. For a low-income
household, the capital subsidy required would still be less for homeownership tenure than rental
tenure (see Table 12).
19
•
In the case of a very low-income household whose down payment and loan costs had to be
subsidized, the reverse is true. It is less costly to subsidize rental tenure than homeownership
tenure (see Table 12). A very low-income household cannot afford the housing payments to
service a mortgage or to meet a clown payment.
TABLE 12
TENANT SUBSIDY REQUIREMENTS AT_ INCOME LEVELS
AND UNITS SIZES FOR CARLSBAD (ASSISTED)
Capital Subsidy Required
Unit Income
Size Level For-Sale Units (a) Rental Units
2 BR/ Low $92,648 $103,355
1 BA Very Low $110,994 $108,952
3 BR/ Low $99,852 $113,431
2 BA Very Low $120,592 $119,758
NOTES:
Development costs and standards for affordability assumptions are identical to those
appearing in Tables 7 and· 10.
(a) Down payment is included in the capital subsidy required.
In all cases., it is more costly to subsidize three bedroom units than two bedroom units. Three
bedroom units are more costly to develop than two bedroom units.
For low-income households, the capital subsidy required is less when there is no public
assistance given in the production and occupancy use of a housing unit. This is because without
public assistance, housing payments and rents may be pegged at the top end of the income
category and the cash flow obtained from low-income households would be greater.
' For example, _in an unassisted project, a low-income household would pay rent based on 30
percent of 80 percent of the County median income. If public assistance was used in producing
or occupying the unit, the low-income household would pay rent based on 30 percent of 60
percent of the County median income (recall Table 2). This difference does not occur for very
low-income households because rents are always pegged at 30 percent of 50 percent of the
County median income.
20
• •
Filling the Affordability Gap
This analysis suggests that there exists a significant affordability gap between what a lower
income household could afford to pay for rent or mortgage and the costs of constructing and
operatir.g a typicar apartment or owned home in Carlsbad. This affordability gap will either
have to be borne entirely by the development community (with the actual cost increases likely
being passed on to the homebuyers of associated market-rate dwelling units) or assistance must
be provided from outside sources (including the City) to help reduce this affordability gap.
The $87,064 subsidy (recall Table 7) required to make a two bedroom for-sale unit affordable
to a low-income family of three will be used to understand how the affordability gap could be
made up. •
The City's Inclusionary Housing Program requires a minimum of 15 percent of all future
residential units developed in any master plan, specific plan or qualified subdivision shall be
reserved for and affordable to lower-mcome households. With a 15 percent requirement the
ratio of dwelling units for Jower-income households to market-rate dwelling units is 1 to 5.67
(100 du's/15 = 6.67 du's; one of which is lower income). Therefore, for every 5.67 market
rate dwelling units constructed, one dwelling unit for a lower-income household would be
required.
Without outside assistance, the $87,064 affordability gap would have to be totally subsidized by
the market-rate dwelling units within a project. The additional cost per market rate dwelling unit
would be $15,355 ($87,064/5.67 = $15,355).
In order for 15 percent of master plan units to be low-income affordable, all of the market-rate
units would increase in price approximately $15,355. This would be an extremely heavy
subsidy.
Members of the Ad Hoc Committee from the private sector have expressed great concern about
being required to bear this burden without some form of additional public agency or other
outside assistance (City assistance is already assumed in the form of density transfers or bonuses
needed to yield the 20 du/acre assumed in the Table 5 and 8 proformas).
WHAT THE CITY COULD DO
The Ad Hoc Committee explored some of the possible incentives and subsidies which the City
might be able to provide towards reducing the affordability gap. This exploration -conducted
in the form of an open-ended, all-things-might-be-possible brain-storming session -is summarized
in Appendix A. These incentives and subsidies are presented as ideas only and should not be
considered formal recommendations of this report. Ideas fall into the following general
categories.
21
• •
The City could: .
• Buy down or reduce land costs (allowing higher densities, flex'ible design standards);
• Reduce permit/processing fees;
• Reduce facilities fees;
• Timing of fees;
• Fast tracking;
• Streamlining processing system;
• Buy down of interest rates; and
• Subsidy of down payment and othe;r closing costs.
Table 13 helps illustrate the impact to the affordability gap associated with the development costs
for a two bedroom, for-sale dwelling units if the City were to maximize its efforts by totally
eliminating land costs, facilities fees and permit/processing fees. There would be an estimated
maximum cost savings of $48,000.
TAB.LE 13
Factors to Fill the Affordability Gap
Unit Size 2 BR/1 BA 3 BR/2 BA
Total Construction Costs (a) $142,900 $156,600
Eliminate land costs (density bonus) $20,000 $20,000
Eliminate facilities fees $10,000 $10,000
Eliminate permit/processing fees ·$18,000 $18,000
' Total Construction Costs W/Public Participation $94,900 $108,600
Cost Savings $48,000 $48,000
NOTES: ·
(a) From Table 5 (Estimated Carlsbad construction Costs ..: For Sale)
The Land costs per dwelling unit ($20,000) could be eliminated by allowing density· increases
to cover the 15% inclusionary requirement per acre of land. In other words, the number of
lower income dwellin_g units required would be offered as a density bonus. Assuming that the
property is built out at the maximum permissible density (the Growth Control Point), and the
inclusionary units are permitted through additional density bonuses, then the land costs for these
additional incl~sionary units would be effectively eliminated. •
If the City were to eliminate processing/permit fees and facilities management fees (under the
assumption that adequate facility capacity exists), then an additional $28,000 could be saved per
dwelling unit.
22:
• •
As shown in Table 14, even with the maximum assistance (cost savings) that the City could offer
per lower income dwelling unit, a significant affordability gap remains. In the case of a two
bedroom/one bath condominium for a low-income family, a $39,064 capital subsidy would still
be required to make this housing unit affordable to a low-income household.
It can be assumed that this $39,064 affordability gap would have to be absorbed by the
developer. If this $39,064 affordability gap were to be subsidized by the market-rate dwelling
units within a project, the additional cost per market rate dwelling unit would be $6,890
($39,064/5.67 = $6,890).
TABLE 14
TENANT SUBSIDY REQUIREMENTS WITH MAXIMUM CITY ASSISTANCE
FOR CARLSBAp (ASSISTED FOR-SALE UNITS)
Unit Income Maximum Monthly Maximum Down Development Capital
Size Level Affordable Mortgage payment Cost Subsidy
(a) Mortgage Payments Payment (d) (e) Required
(b) (c) (t)
Low $441 $50,252 $5,584 $94,900 $39,064
2 BR/ Income
1 BA Very Low $280 $31,906 $3,545 $94,900 $59,449
Income
Low $498 $56,748 $6,305 $108,600 $45,547
3 BR/ Income
2 BA Very Low $316 $36,008 $4,001 $108,600 $68,591
Income
NOTES:
(a) Based on San Diego County median family income of $41,300 (family of four)
U.S. Departmeq.t of Housing and Urban Development, April 1991.
(b) Mortgage payments are based on 30% of gross monthly income, minus 1.2 % property
tax rate; $100 per month homeowner association fees; and a reasonable allowance for
utilities.
(c) Based on 10% fixed rate 30 year mortgage.
(d) Assumes 10% down payment but does not include the 2 points for closing costs.
(e) Based on Table 13 (Factors To Fill the Affordability Gap)
(t) Capital subsidy required is based on the development cost minus the maximum mortgage
payment and down payment
23
•• •
WHAT THE BUILDER COULD DO
The pro formas used in this analysis already have deleted builder profit. Therefore, the builder
cannot further reduce the gap by reducing profits. Areas where builders may_ affect the gap fall
into two categories:
• Provide additional direct subsidies
.From the market-rate units in the same project (discussed previously);
From other market rate units in other projects.
• Reduce production costs
Reduce land costs still further by building at still higher densities (The
City's Housing .Element calls for considering densities up to 29 units per
acre, with indivi·clual site review);
Reduce floor areas, while retaining the same number of bedrooms;
. Reduce amenities in project common areas or in individual units (some are
required by City regulations);
Make use of more creative financing techniques, such as federal low-
income housing tax credits, the aggressive pursuit of C.R.A. loans, and
partnerships with non-profit housing organizations.
Reduce selling costs; and
Consider alternative building types .of lower unit cost (requiring close
cooperation· with the City on policy and standards).
The Ad Hoc Committee did not attempt to quantify the dollar cost savings which might result
from these tactics. Each would have to be explored carefully, and, as noted, several depend
heavily upon cooperation with the City to bring them abmi't.
WHAT NON-PROFIT HOUSING ORGANlZATIONS COULD DO
There are both municipal non-profit housing organizations and private nori-profit housing
organizations, which are of great value because of their access to sources of financing not
otherwise available to the private, for-profit builder. Many of these opportunities depend upon
state or federal grants and loans, or special taxation regulations. Non-profit organizations also
have more-ready access to certain private financial sources, for which for-profit builders may
also apply, but for which qualification is more difficult.
If non-profit housing organizations could ,obtain a below market interest rate of 8 percent the
capital subsidy required to make a dwelling unit affordable to a lower-income household would
be reduced (see Table 15). The capital subsidy required would be reduced because with a below
market interest rate of 8 percent, the maximum mortgage payment and 10 percent downpayment
a lower-income household could afford to pay would be higher.
24
• •
TABLE 15
TENANT SUBSIDY REQUIREMENTS WITH FINANCING ASSISTANCE FOR
CARLSBAD (FOR-SALE ASSISTED UNITS)
Capital Subsidy Required
Unit Income
Size Level Market Interest Below Market Cost
Rate -10% (a) Interest Rate -8 % Savings
2 BR/ Low $87,064 $76,121 $10,943
1 BA Very Low $107,449 $100,501 $6,948
3 BR/ Low $93,547 $81,190 $12,357
2 BA Very Low $116,591 $108,749 $7,842
NOTES:
Development costs and standards for affordability assumptions are identical to those
appearing in Tables 7 and 10.
(a) From Table 7 (Tenant Subsidy Requirements -Assisted For-Sale Units)
In the case of rental units, if an 8 percent interest rate and a 1.05 debt coverage ratio were
available, the tenant supported debt could be raised. A 1.05 debt coverage ratio is available in
the marketplace for affordable housing development from a number of sources. These include:
• SAMCO; • •
•
California community Reinvestment Corporation;
Individual banks (under the Community Reinvestment Act affordable housing lending
agreement in California); and
Discounted financing available under the Financial Institutions Reform Recovery and
Enforcement Act (FIRREA).
Although there are numerous special programs available today, the funds in individual programs
are often limited, many programs have complex qualification standards, and demand far exceeds
the supply. The results is keen competition for the available funds. One result is that in
financing affordable housing today, it is rarely possible to utilize only one source. It is much
more common to see-financing agreements with as many as seven sources of funding. Non-
profits are critical for accessing some of these sources.
25
• •
Conclusion
The primary purpose of this document is to report the results of an analysis of the affordability
gap existing between what lower-income households are able to pay for housing and the costs
associated with actually producing market-rate housing in the City of Carlsbad.·
Under the economic mod~l and its assumptions developed by the Ad Hoc Committee (excluding
consideration of any builder profit), gaps range from over $75,000 to nearly $120,000 per unit
for typical two and three bedroom apartments and condominiums. The gap is typically three to
five times greater than the total amount of money which low and very low-income families can
provide for shelter at an affordable level.
The logical key follow-u·p concern is how to close this immense affordability gap. The report
briefly explores some of the things which the City, for-profit builders, and non-profit housing
organizations might do .. This is an informational report only. Therefore, no specific
recommendations are made regarding this exploration. However, it is likely that committed,
innovative appr.oaches will be required, involving partnerships between all three parties.
The recent history of Carlsbad is that the private sector has provided little housing which is
affordable to low and very low-income families. However, the need is known to be great. If
the affordability gap is to be overcome, the challenge is for all members of the community to
pursue solutions creatively, cooperatively, and aggressively.
•. 26
• •
Attached are three appendices as follows:
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
Economic Incentives to Reduce the Affordability Gap
Methodology for Determining Maximum Mortgage Payments and Tenant
Supported Debt
Worksheets to Determine Capital Subsidies
Inclusionary Housing Proforma Outline
27
• •
! •
APPENDIX A
Economic Incentives to Reduce the Affordability Gap
. 28
• •
AFFORDABLE HOUSING DEVELOPMENT ISSUES
CONCEPTS SUBCOMMITTEE MEETING
WEDNESDAY, SEPTEMBER 25, 1991
SUM!'v1ARY OF DISCUSSION
ISSUE(S) SUGGESTED CHANGE(S)
I. DENSITY
•
•
•
•
Maximum permitted density ( 19
DU/ AC) restricts the development of
affordable housing
There exists no ordinance for the
development of Managed Living
Units.
. Affordable Housing units must
comply with current City densities.
Parking requirement for both "for
sale" and rental projects limits the
achievement of densities necessary
for creating affordable units.
29
The maximum permitted density should be
increased on specific sites to enable the
development of affordable housing. Criteria
for selecting higher density affordable
housing sites should be based upon:
1. Land use compatibility
2. Location of site in proximity to:
shopping, public transportation, major
roadways, or employment opportunities.
3. Product type (i.e., condo, apt., Single
Room Occupancy Unit, Senior, etc.)
A Managed Living Unit Ordinance should
be adopted.
The City may
affordable housing
considerations.
consider exempting
units from density
City could consider flexible parking
standards ( ie; design/layout of parking;
reduced parking standards; more
considerations for underground parking
structures; more considerations for
location/proximity to public transportation
•
•
•
•
•
• Landscaping, setbacks and open
space requirements currently 1-imit
density
Street widths limit density
Building height 1 i 111 i tations restricts
density.
Site planning standards (i.e., distance
between buildings, setbacks from
slopes, driveways, circulation
corridors) are too restrictive.
II. PROCESSING & PLAN CHECK
• Processing of projects is too complex
and takes too long.
30
•
facilities) for affordable projects.
City could co·nsider flexible landscape
standards for affordable projects.
City could consider reducing street/driveway
standards to enable the achievement of
densities necessary for the development of
affordable housing.
Allow flexible building height standards for
affordable housing.
City could
development
housing.
consider less
standards for
restrictive
affordable
Develop a priority system for processing all
affordab~e housing projects, For example,
develop a "point system" for priority
processing.
Simplify process to "zero
processing" /administrative only. Perhaps
·develop a "one stop" processing program. •
For example, allow builders to obtain
bui_lding permit at the counter/no delay.
Continue to use outside source for plan
check; this speed up the process
considerably.
Add staff resources (either consultant or city
personnel) to review affordable housing
projects.
City may consider specialized staff to review
•
31
•
affordable housing projects; specific staff
assigned to only process affordable housing
projects.
Educate all staff persons on the need for
affordable housing and implement a policy
to expedite processing of affordable housing
projects.
Implement a "team" approach to processing
projects; assign a "strike team" to work
together on each affordable housing project.
Develop a comprehensive affordable housing
application (including specific written
guiclelines/requirements) for developers to
use in proposing .an affordable housing
project.
Develop an affordable housing pre-
application process to
provide early direction and guidance to
developers regarding specific affordable
housing proposals. Assigned staff should be
included in pre-application meetings with
developers.
Prepare a list of contact persons for
information on City procedures/standards,
concerning affordable housing.
Consider reducing the amount of
information required upfront to obtain City
approval of project.
Early in process, assign a project manager.
to each affordable housing project to help
work it through the "system."
Consider establishing a fast-track process
whereby affordable housing projects are
processed within "X" number of days (i.e.,
90 days).
•
• Disposition and Development
Agreement
• CEQA compliance
32
•
As soon as project application is deemed
complete, forwarq directly to Planning
Commission or Design Review Board
without staff negotiated revisions. Staff
recommendation would be based upon
·original merits of project.
Develop a 2-step project review process for
affordable housing proposals:
1. Obtain preliminary project approval from
Planning Commission or Design Review
Board with preliminary drawings ..
2. Applicant would complete detailed
drawings following approval and _staff will
simply plancheck for conformance with
preliminary approval.
City should consider the creation of a forum
fo discuss and resolve the issues/details of a
project while it is in a concept stage.
Require a schedule of performance as part
of the agreement with obligations for both
City and Developer included.
As permitted under Sections 15162 and
15182 of the California Environmental
Quality Act, no addit~onal EIR or Negative
Declaration need be prepared for a
residential project located within a Specific
Plan for which· an EIR was previously
prepared. As permitted and where
appropriate, the City should allow an
environmental impact report for a specific
plan to suffice for a subsequent residential
project within that specific plan rather than
completing • a second review when actual
residential project is submitted.
••
III. PROCESSING FEES
• Fees are too high -significantly
increase cost of housing
33
•
Work with deposit, and charge ·developers
actual costs for processing project
plans/approval. Work on "drawdown"
process. Contact other cities for
information on their deposit
procedures/structure.
Allow for full cost recovery on all projects
except affordable housing projects.
Affordable housing project fees would be
subsidized through other types of projects.
consider increase of fees to "non-affordable"
housing projects.
Process fee subsidies for affordable housing
projects.
Work with other fee producing agencies
(i.e., water districts, school districts, etc. )
to reduce fees for affordable housing
projects.
Eliminate, reduce or subsidize all fees for
affordable housing projects.
Concern: will incentives (no or reduced
fees) encourage too many 100% affordable
housing projects? If so, what are the impacts
of this?
Develop target times for processing projects.
Reduce total number of permits and fees
required; develop a flat rate fee for
affordable housing projects.
•
IV. FACILITY FEES
• Facility fees are too high -provide
problem for building affordable
housing
[Type: Streets, Water,
Schools, Library, Parks,
Finance, Etc.}]
Sewer,
Public
V. TThfiNG OF FEES
•
•
Water meter fees are presently
required at time.permit is approved
All fees to be paid upfront
34
•
Re-evaluate method for calculating
additional need for facilities and related
facility fees.
City to eliminate or subsidize fees.
City to give fee credit for affordable housing
rrojects.
Re-evaluate fees on regular basis .
. Review standards for how to calculate an
"Equivalent Dwelling Unit" (EDU). A
Managed Living Unit would not have same
cle~11and for water, sewer, etc. Therefore,
the fee per EDU should not be the same as
an apartment.
Review standards for water and/or energy
conservation and unit size and consider in
setting fees.
Allow water meter fees to be paid at time of
installation.
Permit a split in fee payment schedule
according to two step process noted below
in tliis summary ..
Allow affordable housing projects to pay all
fees at time of building permit application
(if fees are not paid, building permit will not
• be issued).
Another idea -a two-step fee schedule as
follows:
1. Processing fees paid at building permit
application.
• ••
2. Building permit fees paid when property
is sold. City would have lien on property.
Fees would be collected at close of escrow.
Attempt to convince school district to also
operate on split fee schedule.
Comment: Facility fees are not really
required until people are living within a
unit.
VI. OTHER INCENTIVES OR GENERAL COMMENTS:
1) CITY ASSISTANCE WITH FINANCING:
a. Mortgage Revenue Bonds
b. Lobbying for state/federal funding for affordable housing projects
c. Application for Proposition 84 funds
d. Application for State/Federal H.O. M. E (Home Ownership Made Easy) funds.
The HOME program is designed to provide below-market cost single family
housing to low and moderate income persons and families at affordable rents and
with an option to purchase the homes when either accumulated savings or
appreciated market value of the homes are sufficient to provide down payments.
e. Assist with private source funding opportunities
f. Provide financial guarantees to assist developers in obtaining other financing
g. Assist with applications for Housing and Urban Development (HUD) 202/236
project financing
h. Enforce Community Reinvestment Act (CRA) compliance by local lending
institutions; put pressure on the institutions to meet their CRA requirements
2. CITY ASSISTANCE WITH LAND ACQUISITION:
a. Make City owned property available for affordable housing projects
b. Assist in acquisition through condemnation proceedings
c. Assist with education process on tax credit benefits
3. CREATE FINANCIAL POOL OF EQUITY FOR PROJECTS; "EQUITY SHARING"
35
I·
• •
ARRANGEMENTS
4. PARTICIPATE IN AGENCY "TRADING" OP LAND
5. CREATE A HOUSING TRUST FUND TO ASSIST WITH AFFORDABLE HOUSING
PROJECTS •
6. CITY ASSISTANCE WITH ACQUISITION OF EXISTING RESIDENTIAL UNITS
7. ELIMINATE RESTRICTIONS TO BUILDING "GRANNY FLATS" (A GRANNY
FLAT IS A SECOND RESIDENTIAL UNIT BUILT ON A PIECE OF PROPERTY
WHICH CURRENTLY HAS AN EXISTING SINGLE-FAMILY HOME. THE UNIT
DOES NOT HAVE A FULL KITCHEN AND IS USUALLY BUILT TO
ACCOMMODATE A FAMILY MEMBER.)
8. PROVIDE SECTION 8 W AITI'NG LIST TO DEVELOPERS SO THEY KNOW WHO
AND HOW MANY PEOPLE ARE LOOKING FOR ASSISTANCE
9. DEVELOP A RESALE PROPERTY TRANSFER TAX OR FEE FOR SUBSEQUENT
RESALE OF 1992 OR LATER HOMES TO BE USED TO FINANCE AFFORDABLE
HOUSING
10. CITY TO PROVIDE "GAP" LOANS TO BUILDERS AND/OR HOME BUYERS
11. DEVELOP A DEED RESTRICTION PROGRAM WHICH WOULD REQUIRE
DEVELOPERS TO RETURN A PERCENTAGE OF THEIR RETURN ON MARKET
RATE HOUSING UNITS AS A FEE TO PRODUCE AFFORDABLE UNITS
12. CITY TO PROVIDE. LOAN GUARANTEES OR BUY D9WN POINT ON HOME
BUYER LOANS
13. · EXPAND REDEVELOPMENT PROJECT AREA BOUNDARIES. ADDITIONAL
AREA WILL PROVIDE ADDITIONAL TAX INCREMENT & TAX SET-ASIDE
FUNDS FOR AFFORDABLE HOUSING
14. CREATE PACKAGE OF ORDINANCES FOR APPROVAL BY THE CITY
COUNCIL; STAFF SHOULD RECOMMEND TO THE CITY COUNCIL A SET OF
PRIORITIES FOR IMPLEMENTING PROGRAMS/ ACTIVITIES REQUIRED TO
CREATE AFFORDABLE HOUSING IN CARLSBAD. STAFF SHOULD PROVIDE
AN OUTLINE OF ORDINANCES REQUIRED TO IMPLEMENT THE HOUSING
ELEMENT PROGRAMS. ASK THE CITY COUNCIL TO SET PRIORITIES BASED
ON STAFF RECOMMENDATIONS.
36
• •
APPENDIX B
Methodology for Detern1ining Maximum Mortgage Payments
and Tenant Supported Debt
37
• •
Determining Maximum Mortgage Payments
Table "A" illustrates the process to determine the maximum mortgage payment for lower-income
households to purchase a two bedroom/one bath or three bedroom/two bath condominium. The
following financing assumptions have been made: •
• 90 percent financing (10 percent down payment);
• 10 percent interest rate; and
• • 30 year loan terni.
TABLE A
Maximum Mortgage Payments -For Sale {Assisted)
Unit Size • 2 BR/1 BA 3 BR/2 BA
Income Level Low Very Low Low
Maximum monthly affordable mortgage $441 $280 $498
payment (a)
Maximum Loan $50,584 $31,906 $56,748
Down payment (b) $5,584 $3,545 $6,305
Total Unit Cost $56,204 $35,338 $63,160
NOTES:
(a) Taken from Table 6 (Monthly Affordable Housing Payments -Assisted)
The following are calculations used for Table A:
• Maximum loan =
PMT* 1-(1 +IN1)_n
INT
PMT
INT
n
• •
= Monthly income available .fbr debt service
= Monthly interest rate
= Term of loan. (monrhs);
Down payment = Total unit cost -maximum loan; and
Total unit cost = Maximum loan/financing rate (90% ) .
38
Very Low
$316
$36,008
$4,001
$39,938
• •
Tenant Supported Debt
Table "B" illustrates the process to determine the maximum loan that can be taken out for a
rental project" or unit. The maximum loan that can be taken out is determined by the cash flow
that can be obtained from the various income levels to support a debt. The following financing
assumptions have been made:
• 1.18 debt coverage ratio;
• 10 percent interest rate; and
• 30 year loan term.
The maximum housing rents that are collected cannot all go towards servicing a debt. The net
operating income (NOI) is used to determine the income available for debt service. This NO!
is obtained by deducting expenses for vacancies that may occur and operating/maintenance costs.
A 7 percent vacancy rate and a 30 percent operating cost rate is assumed.
TABLE B
I TENANT SUPPORTED DEBT/RENTAL INCOME l
Unit Size 2 BR/1 BA 3 BR/2 BA
Income Level Low Very Low Low Very Low
Number of Units 20 20 20 20
Maximum Monthly Housing Rents Per Unit $507 $415 $560 $456
(a)
Monthly Vacancy Cost Per Unit $35 $29 $39 $32
Monthly Operating Cost Per Unit $152 $125 $168 $137
Net Monthly Operating Income Per Unit $320 $261 $353 $287
Monthly Income Available for Debt Service $271 $221 $299 $243
Per Unit
Monthly Income Available for Debt Service $5,420 $4,420 $5,980 $4,860
For Project
Maximum Loan For Project $616,899 $504,957 $681,387 $554,844
Maximum Loan Per Unit $30,845 $25,248 $34,069 $27,742
NOTES:
(a) Taken from Table 6 (Monthly Affordable Housing Payments -Assisted)
39
• •
Calculations are first done on a per unit basis. The following are the formulas used in Table.
2 on a per unit basis:
• Monthly vacancy cost per unit
= Maximum monthly housing rents per unit X Vacancy rate (.07);
• Monthly operating cost per tinit
= Maximum housing rents per unit X Operating rate (.30);
• Net monthly operating income per unit
= Maximum monthly housing rents per unit -(Monthly vacancy cost per unit + Monthly
operating cost per unit); and •
• Monthly income available for debt service per unit = Net monthly operating income per
unit/total debt service ( 1. 18).
Then, it is determined what the maximum loan would be for the project. Thus, calculation are
done on a per project basis. The following are these calculations used in Table 2:
• Monthly income available for debt service per project = Monthly income available for
debt service per unit X Number of units (20); and
• Maximum loan per project =
PMT* 1-(1 +IN1)_n
INT
PMT = Monthly income Cl\'(/ifab!e .fbr debt service
INT = Monthly inreresr mre
n = Term of loan (momhs)
The maximum loan per project must now be converted back to a per unit basis.
• Maximum loan per unit = Maximum loan per project/Number of units (20).
40
•
\
APPENDIX C
Worksheets to Determine Capital Subsidy
41
FOR-SALE UNITS (ASSISTED)
:t;:I}i!i::t:f'=f\)/}t}/riNANOOil::ID.M$.}{H::L'/·'::-::J:,::/,/'/:t:{:=:i'tt=J:i::);:'I(\~'::=<fa·::t::,\Jt:
Interest Rate (Percentage) 0.10
Term of Loan (Months) I 360
MQN'fh.l;Y:iA.~F.9.~PAI!ffi\Ji:QU$JNQf(tQ$.f.$.'.=k'f9.R'·'~AI.-~::?/f:(\}(:)fk/\i j_{:Jft=)i):)-,\,,r,,,;;:=·:/t:i·:_.·=:r.: f):C{\J:.')).:,.:]Eit:f=·:)\··-:r.}J,:;_'.t,-):-j}(lttIIt/ .,
Unit Si:ze 2 B_R/1 BA 2 BR/I BA . 3 BR/2 BA 3 BR/2 BA
Income Level Low Income Very Low Income Low Income Very Low Income
Gross Monthly Affordable· Housing costs $651.00 $465.00 $723_.00 $516.00
Home owners association dues • $100.00 $100.00 $100.00 $100.00
Utilities $50.00 _ $50.00 $60.00 $60.00
Property tax . . -$60.00 $35.00 $65.00 $40.00
Net Monthly Affordable Housing Costs· $441.00 $280.00 $498.00 $316.00
MAXlMV.MJMPttat\piflr.A.Y:MJ;:fttijffaf'It!lf/i/(}ifttn::'=':{:@f{:i-'\faf&:!Ut:=tt:t}:l:/i)i/f)):t:f]:::t{:=f:ii{t{}:C{@t!IlIIttI{I!{t:firi)!:{}:}llittff:ff
Total Unit Cost $55,835.90 $35,451.37 $63,052.79 $40,009.40
Downpayment (not including points for closing costs) $5,583.59 $3,545.14 $6,305.28 $4,000.94
Maximum Loan $50,252.31 $31,906.23 $56,747.51 $36,008.46
Total Development Cost Per Unit $142,900.00 $142,900.00 $156,600.00 $156,600.00
CAPITAL SUBSIDY REQUIRED $87,064.10 $l07,448.63 $93,547.21 $116,590.60 •
42
FOR-SALE UNITS (UNASSISTED)
:7:t:Dfs7;;;,.:.1I1N.AN.ctN'a.:tmm«c;;:;;;:~;;;:::'::=;:;-:=··=··=,::,'' .. :.~.: .. :
Interest Rate (Percentage) 0.10
Term of Loan (Months) 360
M◊&:lildyf1,;Jjif.Q~O.i\$~)i◊tl$.™Q··:¢.9ST:$.:=:::-11qJf~ALi; ,=::t:/·.::.::://\=·:,::i\i ... · ·.·:-:-:.:-,::. ··, ,:=, ..... -.· •• -•• -•: • i=··_.·., . .-:, , ·· • • • . . .. .,.: . • Unit Si:ze 2 BR/1 BA 2 BR/I BA 3 BR/2 BA 3 BR/2 BA
Income Level Low Income V cry Low Income • Low Income Very Low Income
Gross Monthly Affordable Housing costs $744.00 $465.00 $826.00 $516.00
Homeowners association dues $100.00 $100.00 $100.00 $100.00
Utilities $50.00 $50.00 $60.00 $60.00
Property tax $60.00 $35.00 $65.00 $40.00
Net Monthly Affordable Housing Costs $534.00 $280.00 $601.00 $316.00
MAXIMVM,:MP'RtPAQlfi>'.AYMENi's:.;.;·t/:.=:?'f::_ ··.' .-·'.:--::: · .. · •• ·,:·· . ..:==:· ,=t/,:\,,:·,::-.. :_.:::::. • • . .-:;:: ._ ... • · ·.<'' . .-·. ... •• •
Total Unit Cost $67,610.82 $35,451.37 $76,093.83 $40,009.40
Downpayment (not including points for closing costs) $6,761.08 $3,545.14 $7,609.38 $4,000.94
Maximum Loan $60,849.74 $31,906.23 $68,484.44 $36,008.46
Total Development Cost Per Unit $142,900.00 $142,900.00 $156,600.00 $156,600.00.
CAPITAL SUBSIDY REQUIRED $75,289.18 $l07,448.63 $80,506.17 $116,590.60 •
43
FOR-SALE UNITS WITH MAXIMUM CITY PARTICIPATION (ASSISTED)
:;:;:::.:.:;/:.:.:.:::.:::.-.::·::::.:":.:': ••• -,-.:/:;\:··:;;::::it1NAN¢.lN.q.,mtM.s.r-; • ...::~:-:::::.-:::::-::..:: .. ·.:.::·.·._:·.{: .. /::.:.:·:::::=::-t.:::::::·: .... :::'::·i:.L.~-,:i2.:,:··:·.·:·: .·
Interest Rate (Percentage) 0.10
Term of Loan (Months) 360
M:9.J.tititt:IKff.QKffiDWi:ii<lY$.lNtf:dQ$.TKf FQtf $A)lJ£:!@tl?·}::.-\_i( .. \::/::f ·:·:.:f:\((-· •• :;::::r::,:_:.;·:=:::r( .?::\).:::·:::'.:.: .,\jf.•.~.:_·: .. :y:_"A:/ .. ·.:::..::::-::> .·--:·.· :.i.:··: :··:. ·:r.,r.\;_:r•:J(.":"-:/-•'
.,
Unit Size • • • 2 BR/ l BA • 2 BR/ I BA 3 BR/2 BA 3 BR/2 BA
Income Level • Low Income Very Low lncollk:l Low Income Very Low lnco~
Gross Monthly Affordable Housing c·osts . $651.00 $465.00 $723.00 $516.00
Home owners assodation dues • $100.00 $100.00 $100.00 $100.00
Utilities $50.00 $50.00 $60.00 $60.00
Property tax . • $60.00 $35.00 $65.00 $40.00
Net Monthly Affordable Housing Costs $441.00 $280.00 $498.00 $316.00
M.AXiM.OidMQRTQAQfi:ir.Km».ffl:t•t{f/:i_f/\:N.I·•'{:):S:til-tifffiIIlI((:.fft-··\\:=-?•·.:::.·::.:-It.':·/:j:$f[,{!-)fj:}t.-.·.I' •. ·\'ftI-t:·i1r::::Ift·,.:;-::-.rr:r:Jfr;t}:}{::_JJ-t::{·:,
Total Unit Cost $55,835.90 $35,451.37 $63,052.79 $40,009.40 .
Downpayment (not including points for closing costs) $5,583.59 $3,545.14 $6,305.28 $4,000.94 .
Maximum Loan $50,252.31 $31,906.2_3 $56,747.51 $36,008.46 .
Total Development Cost Per Unit $94,900.00 $94,900.00 $108,600.00 $108,600.00
CAPITAL SUBSIDY REQUIRED $39,064.10 $59,448.63 $45,547.21 $68,590.60 •
44
FOR-SALE-UNITS WITH NON-PROFIT PARTICIPATION (ASSISTED)
(l}!{ '=t!iitJk1tJ{:?t)·FINANO.:N.fi)ffllffi{$:f,''j\/'.:, .:,::,.:·;:,i::,::· ·:::)·-=:::;:··.:::·:.:::::,-:'22:;2.::·::·:-: :,,·},;::·
Interest Rate (Percentage) 0.08
Term of Loan (Months) l 360
M9.tfffl()\'Afif:QRt.1Aap~Ji9tJ.$.iN(lgQ$'.J'$_·:s_r.gl_l: ~Ab:Jt;·,:::-,:-. .::::~1:L/::,":: :,. \,,7 ·:\ • Unit Sire I 2 BR/1 BA 2 BR/I BA 3 BR/2 BA 3 BR/2 BA
Income Level Low Income I Very Low Income I Low Income Very Low Income
Gross Monthly Affordable Housing costs $651.00 I $465.oo I $723.oo $516.00
Home owners association dues $100.00 I $100.00 I $100.00 $100.00
Utilities $50.00 I $50.00 I $60.00 $60.00
Pro~rty tax $60.00 I $35.oo I $65.oo $40.00
Net Monthly Affordable Housing Costs
MAXIMW-:M¢RJ:9.I\Q:£.i:PA YM~NT$.·-:'.-.-. ,.
.. .. _ .. ... __ s4_~1._~ 1 _ $2,80.00 1 _ $~98.oo I j
<·· •. {:(J_:_-: :.(' ./ . .'::?·_.::_: (:: •• ··(}:::.: •.• _: •• • .: • .. •'•: ••• • ••
$316.00
Total Unit Cost $66,778.91 $42,399.31 $75,410.20 $47,850.65
Downpayment (not including points for closing costs) $6,677.89 $4,239.93 $7,541.02 $4,785.06
Maximum Loan $60,101.02 $38,159.38 $67,869.18 $43,065.58
Total Development Cost Per Unit $142,900.00 $142,900.00 $156,600.00 $156,600.00
CAPITAL SUBSIDY REQUIRED $76,121.09 $ I 00,500.69 $8 l, I 89.80 $108,749.35 •
45
RENTAL UNITS (ASSISTED)
N@ll!!IIIJi@I~i@/J:t,=EfiNANfflffG...._t.lIM!W!I}@fi1~£r';-i/~;.;,fp},/i\h{N=}i{:i=Ji(:/i\I,YJt
Debt Coverage Ratio 1.18
Interest Rate (Percentage) 0.100
Term of Loan (Months) 360.00 I
., Vacancy Rate (Percentage) 0.011
_Qperating Cost (Percentage) 0.30
-~Jkffi~~¼·(~Ji~-~t~~:::0~~~~:0~;~_?0_:~-~l
Unit Size 2 BR/I BA 2 BR/I BA 3 BR/2 BA 3 BR/2 BA
Income Level Low Income Very Low Income Low Income Very Low Income
Number of Units 20 20 20 20
Gross-Monthly Affordable Housing costs $557.00 $465.00 $620.00 $516.00
Utilities $50.00 $50.00 $60.00 $60.00
Maximum Monthly Affordable Housing Rents $507.00 $415.00 $560.00 $456.00
t.tiWKlnt:i.VP.fflllt-im:J>i1t1Ritltti.Jtiiti:t:f '?if (:,(i_'\:?\.f .?/Y :'i!:f =/}t:!J:)=:f\I=t: ),:[::-_\' ': '-:·.\, ,;. ):::==:·\/ ,;: -?--,,:: i/t::=,=::::_: :.\_f:f'f:f:i{ i\ · \\, _: : :· _-:-_-: ·.;:-:=-·-\\(_' i/.-~
Monthly Vacancy Rate $35.49 $29.05 $39.20 $31.92
Monthly Operating Costs $152.IO $124.50 $168.00 $136.80
Net Monthly Operatin_g_ income Per Unit $319.41 $261.45 $352.80 $287.28
Monthly Income Available for Debt Service/Unit $270.69 $221.57 $298.98 $243.46_
Monthly Income Available for Debt Service/Project $5,413.73 $4,431.36 $5,979.66 $4,869.15 • .
Maximum Loan/Project $616,898.84 $504,956.64 $681,387.28 $554,843.92_
Maximum Loan/Unit $30,844.94 $25,247.83 $34,069.36 • $27,742.20 .
Total Development Cost Per Unit $134,200.00 $134,200.00 $147,500.00 $147,500.00 .
CAPITAL SUBSIDY REQUIRED $103,355.06 $108,952.17 $113,430.64 $119,757.80
46
RENT AL UNITS (UNASSISTED)
)':fJffl:::t&Itt}IltatnijJifilHQ:\BMllil:!:i:iii-/l(, ':::'/::::.:::.\i:~\.·:.·/\::.·:ii:·/(:::'1,il.i''•.::)i ,·::,
Debt Coverage Ratio 1.18
Interest Rate (Percentage) 0.100
Term of Loan (Months) 360.00 I
Vacancy Rate (Percentage) 0.01 I • Operating Cost (Percentage) 0.30 I
MONffiLYh~FJ?c.iRP.A:BtE)-IQJJSlN9\RENT$.?i+ t\.,.:, • ·:·= • ·.:. ·/.· ,.· • • ·i.,> :::J,:::..:.:,:::: i'· • : " .... .. • . . '•,•'.
Unit Size 2 BR/I BA 2 BR/I BA 3 BR/2 BA 3 BR/2 BA
Income Level Low Income Very Low Income Low Income Very Low Income
Number of Units 20 20 20 20
Gross Monthly Affordable Housing costs $744.00 $465.00 $826.00 $516.00
Utilities $50.00 $50.00 $60.00 $60.00
Maximum Monthly Affordable Housing Rents $694.00 $415.00 $766.00 $456.00
TEN/4Ni($.U~PQRTJID DijnT!llENT At,,,.,/.;:,\' :· .. ,.}::x.\· •.... ' ·' • ·,. • • :': . :: ,", ,::::, ,,:'\ •,•".··,·. • ·: • -: •• : :.:· _.. :~: :: .. :.; ' ·: ... ''
,''
Monthly Vacancy Rate $48.58 $29.05 $53.62 $31.92
Monthly Operating Costs $208.20 $124.50 $229.80 $136.80
Net Monthly Operating income Per Unit $437.22 $261.45 $482.58 $287.28
Monthly Income Available for Debt Service/Unit $370.53 $221.57 $408.97 $243.46
Monthly Income Available for Debt Service/Project $7,410.51 $4,431.36 $8,179.32 $4,869.15 • Maximum Loan/Project $844,433.52 $504,956.64 $932,040.45 $554,843.92
Maximum Loan/Unit $42,221.68 $25,247.83 $46,602.02 $27,742.20
Total Development Cost Per Unit $134,200.00 $134,200.00 $147,500.00 $147,500.00
CAPITAL SUBSIDY REQUIRED $91,978.32 $!08,952.17 $100,897.98 $119,757.80
47
RENTAL UNITS WITH MAXIMUM CITY PARTICIPATION (ASSISTED)
t!H;I!l!!l!!M!!MWl@!!@W:i.RiAWlmillrtl&M.$.l!W@#MM':!'i/'l!@=!F!\1:=;=/:i:!:':i~!Yi~/J:qii=?t@:;f£':>
Debt Coverage Ratio 1.18
Interest Rate (Percentage) 0.100
Term of Loan (Months) 360.00 I • Vacancy Rate (Percentage) 0.01 I
Operating Cost_ (Percentage) 0.30
MQNIHUYiIKEEQRP.iV:Uf HQ.Y§™~;fJt~'NT$:f :?tJ/·lf ;(i}{l/}l':f '\i:ii}:/Jt?-.i'.f:=(:::-: ':: \': :::: ;. ?)=(:· :::::,;:, ·,;=Ji=/ :_:_-·: ):_ .·=-t{):():(''\):/: .,:rr./=::=:=::_ :}: :::=-:::----::,,· =::At\::"=
Unit Sire 2 BR/I BA 2 BR/I BA 3 BR/2 BA 3 BR/2 BA
Income Level Low Income Very Low Income Low Income Very Low lncom~
Number of Units 20 20 20 20
Gross Monthly Affordable Housing costs $557.00 $465.00 $620.00 $516.00
Utilities $50.00 $50.00 $60.00 $60.00
Maximum Monthly Affordable Housing Rents $507.00 . $415.00 $560.00 $456.00
Ti1ND.it:SVP:P:9Rffio.J!tiJtt.iRfif.tf:AiJI!@/Jlt/If'iJrttift{?::}\Jtfil:!i/riI{t/\;:\:::'(J.\J;./tt={(}\-J:_:::;\_·);-'.:')\11r-:t}?(!ff?'.??/:{7G:7.?%·:·G77::::::·--=:
Monthly Vacancy Rate • $35.49 $29.05 $39.20 $31.92'
Monthly Operating Costs $152.10 $124.50 $168.00 $136.80
Net Monthly O(>e_!llting income Per Unit $319.41 $261.45 $352.80 $287.28
Monthly Inc9me Available for Debt Service/Unit $270.69 $221.57 $298.98 $243.46_
Monthly Income Available for Debt Service/Project • $5,413.73 $4,431.36 $5,9J9.66 • $4,869.15_ •· Maximum Loan/Project $616,898.84 $504,956.64 $681,387.28 $554,843.92_
Maximum Loan/Unit . • , $30,.844.94 $25,247.83 $34,069.36 $27,742.20 .
Total Development Cost Per Unit $83,200.00 $83,200.00 $96,500.00 $96,500.00_
CAPITAL SUBSIDY REQUIRED $52,355.06 $57,952.17 $62,430.64 $68,757.80
48
RENTAL UNITS WITH NON-PROFIT PARTICIPATION (ASSISTED)
.·.-::::'·:,:·::::::·:·:·::,::c:}t::"':·.::·::-l~jNAN¢j?'ftirnatJ~-:IL::':·::'.2''·:.i.'::::.·:·:'··_:,:_'·'··.::: :-.,:.:··. ,-::.,:._:,.-,.::·:·:_::.:, .. <·::.: • ••• •
Debt Coverage Ratio 1.05
Interest Rate (Percentage) 0.080
Term of Loan (Months) 360.00 I
Vacancy Rate (Perce~tage) 0.01 I • O(>tlrating Cost (Percentage) 0.30 I
M• ·o·:·•N' m·. L.' ·::y· JA'• •'•f'p"'o• .RO'-'A"BLE. •'·HOU:··s·INo .R, ;,E' N .. TS·· :.--:-.::,:,:,:: ... : :.:_:.: : ·.... ' . • • .. · ,•, . : ... ::::: ... · .. ·.•-· .: .• .. ·.· ... ·.· .. • . ,:.: ::·:·.·:,:::.:· ... ::.,•··:.•:,•'. . .• .. • •,
, .. ·.-:..: ·:· . ·_::· /'
Unit Size 2 BR/I BA 2 BR/I BA 3 BR/2 BA 3 BR/2 BA
Income Level Low Income Very Low Income Low Income Very Low Income
Number of Units 20 20 20 20
Gross Monthly Affordable Housing costs $557.00 $465.00 $620.00 $516.00
Utilities $50.00 $50.00 $60.00 $60.00
Maximum Monthly Affordable Housing Rents $507.00 $415.00 $560.00 $456.00
T~NANT-'iV.I>ilogXJtP. tiE13TIRENTAt;:::::.:-:::r.-( .:-':·\,:::/ ·.,.:·_··--........... . •:;•; ··;:_: _: • ;·. -.. _.::•,: .... . . . · :,, . .>:·, •
Monthly Vacancy Rate $35.49 $29.05 $39.20 $31.92
Monthly Operating Costs $152.10 $124.50 $168.00 $136.80
Net Monthly Operating income Per Unit $319.41 $261.45 $352.80 $287.28
Monthly Income Available for Debt Service/Unit $304.20 $249.00 $336.00 $273.60
Monthly Income Available for Debt Service/Project $6,084.00 $4,980.00 $6,720.00 $5,472.00 • Maximum Loan/Project $829,148.78 $678,691.80 $915,825.08 $745,743.28
Maximum Loan/Unit $41,457.44 $33,934.59 $45,791.25 $37,287.16
Total Development Cost Per Unit $133,600.00 $133,600.00 $146,900.00_ $146,900.00
CAPITAL SUBSIDY REQUIRED $92,142.56 $99,665.41 $101,108.75 $109,612.84
49
••
APPENDIX D
Inclusionary Housing Proforma Outline
50
• •
Inclusionar_y Housing Proforma
I. PROJECT DESCRIPTION
A. Number of dwelling units
B. Proposed density
C. Product type(s)
D. Unit size
1. Square footage
2. Number of bedrooms
3. Number of bathrooms
E. Par~ng facilities
F. Open space/Recreational amenities
G. For sale/Rental
II. PROJECT COSTS/DWELLING UNIT
A. Land cost
B. Land development costs
1. Grading
2. Facilities
C. Land carry
1. For sale
2. Rental
D. Onsites/Construction Costs
1. Directs (hard costs) @ $ ___ /sq ft
2. Indirects@ $ ___ /sq ft
3. Recreation & amenities
E. Application processing costs
1. City application fees
F. Predevelopment costs
1. Consultants (Environmental consultants, Architects, Planners, Engineers)
• G. City fee
1. Grading permit
2. Grading plancheck
3. Sewer permit
4. Sewer benefit area
5. Sewer plancheck
6. Sewer inspection
7. Sewer lateral charges
8. Water meter
9. Water service connection
10. Water plancheck
11. Water inspection
12. Improvements plancheck
13. Improvements inspection
51
•
. 14. Landscape plancheck
15. • Landscape inspection
16. Building permit
17. Building plancheck
18. Building inspection
19. ·stron·g motion
20. Street ljght energize
21. Facilities management fee
22. Mello Roos
23. Public facilities fee·
24. Traffic impact fee
25. Bridge & thoroughfare
26. School fees
27. Park in-lieu fees
28. Drainage area fees
29. Fire hydrant fees
H. Overhead costs @ _·_% of sales price
I. Selling costs @ __ % of sales. price
J. Marketing costs @ __ % of cost to build
K. Finance costs
1. For sale -construction financing
2. Rental -construction and permanent financing
52
• STAFF REPORT •
DATE: AUGUST 19, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-6 CITY OF CARLSBAD ..oAn amendment to the Carlsbad Municipal
Code (Title 21) by the addition of Chapter 21.85 to establish requirements
for the reservation and affordability of housing units for moderate and lower
income households in residential projects under a Citywide Inclusionary
Housing Program and the payment of an In-Lieu Fee or Inclusionary Housing
Impact Fee in specified circumstances.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3424
recommending APPROVAL of the Negative Declaration issued by the Planning Director and
ADOPT Planning Commission Resolution No. 3425 recommending APPROVAL of ZCA 91-6,
based on the findings contained therein.
IL PROJECT DESCRIPTION AND BACKGROUND
On October 22, 1991, the City Council adopted a Revised Housing Element for the City of
Carlsbad. The Revised Housing Element concludes that there exists a considerable demand
for, yet an inadequate supply of housing affordable to, lower-income households and
moderate-income, first time homebuyers within the City. Consistent with these findings,·
the Revised Housing Element includes numerical objectives for the provision of around
1,400 lower-income and 1,300 moderate-income dwelling units by 1996.
In order to achieve these housing objectives, the Revised Housing Element includes a
number of Housing Programs that target the provision of housing affordable to lower and
moderate-income households within the City.
Of the City's proposed new Housing Programs, the Inclusionary Housing Program is
anticipated to produce the majority of the projected affordable housing units.
Approximately 75% (1,050 DU's) of the projected 1,400 lower-income dwelling units and
15% (200 DU's) of the projected 1,300 moderate-income dwelling units are anticipated to
be developed through the City's proposed Inclusionary Housing Program. The balance of
the proposed lower-income dwelling units (350 DU's) and moderate-income dwelling units
(1,100 DU's) are proposed to be created through Section 8 Rental Assistance Vouchers
(100 DU's), City Initiated Development (200 DU's), Mortgage Revenue Bonds (200 DU's)
and New Lending Programs.
zcA 91-6 CITY OF cAAD • AUGUST 19, 1992 •
PAGE 2
The Revised Housing Element specifies that the City develop an Inclusionary Housing
Program under which the following standards are established:
(1) A minimum of 15% of all approved residential units in any master plan, specific
plan, or qualified subdivision be reserved and affordable to lower-income households
(Policies 3.6.a., 3.6.b. and Programs 3.6.a. and 3.6.b.);
(2) A minimum of 5% of all approved units in any master plan or specific plan be
reserved and affordable to moderate-income, first-time homebuyers (Policy 3.10.c.
and Program 3.1 O.c.); and
(3) In developments which are required to include ten or more units affordable to
lower-income households, at least ten percent of the lower-income units should have
three or more bedrooms (Policy 3.2 and Program 3.2).
( 4) In specific cases, allow inclusionary requirements to be satisfied through payment
of an in-lieu fee as an alternative to requiring inclusionary units to be constructed
on the ground (Program 3.6.c.).
Consistent with the above referenced Housing Element Policies and Programs, this project
is a Zone Code Amendment (ZCA 91-6) to the Carlsbad Municipal Code (Title 21, Zoning)
add Section 21.85, et seq., establishing a Citywide Inclusionary Housing Program.
ANALYSIS
Included below is a brief synopsis of each section of the proposed new Inclusionary
Housing Program. Included within this synopsis is an analysis of the major planning issues.
Reference can be made to Exhibit "X", the draft ordinance, to review in detail all definitions
and text additions.
Planning Issues
1. What constitutes a "Qualified Subdivision"?
2. Which residential projects will be subject to the Inclusionary Housing Program and
which projects will be exempted?
3. What are the specific inclusionary requirements (i.e.; construction of affordable
units, payment of in-lieu fees, or payment of inclusionary housing impact fees) for
the various classes of residential projects or permits?
4. What is the recommended dollar value of an in-lieu fee?
5. What is the recommended dollar value of an inclusionary housing impact fee?
ZCA 91-6 CI1Y OF CAR.AD
AUGUST 19, 1992
PAGE 3
•
6. What is the methodology for calculating the number of lower and moderate-income
units required per residential project?
7. What is an Inclusionary Housing Plan?
8. What is a Combined Inclusionary Housing Project?
9. What are the recommended inclusionary housing standards regarding: (1) timing
of development, (2) tenure of affordability, (3) location of units, (4) design
guidelines and (5) unit mix by number of bedrooms.
10. Are residential projects, which are subject to the Inclusionary Housing Program,
eligible to request density bonuses or other financial incentives from the City?
11. What are the application requirements and timing for submittal of inclusionary
projects to the City?
12. What is an Affordable Housing Agreement?
13. What is an Administrative Agreement for Inclusionary Rental Units?
14. What is a Sales Agreement for Inclusionary For-Sale Units?
15. What is an Inclusionary Housing Resale Agreement?
16. How are households ~o be qualified for available inclusionary units?
17. Is the proposed Zone Code Amendment consistent with the various elements of the
General Plan?
18. Is there a reasonable relationship between the need for affordable housing and the
imposition of a 15% lower-income and 5% moderate-income inclusionary housing
requirement on market-rate residential development?
Section 21.85.010 -Purpose and intent. -This Section includes specific Objective and
Policy statements from the Housing Element, relative to the City's commitment to providing
affordable housing opportunities for lower and moderate-income households, through the
implementation of an Inclusionary Housing Program.
Section 21.85.020 -Definitions. -A number of definitions for new terms which are
included within the Inclusionary Housing Chapter of Title 21 are proposed. These new
terms include the following: Administrative Agreement for Inclusionary Rental Units,
Affordable Housing, Affordable Housing Agreement, Allowable Housing Expense, Assisted
Unit, Base Residential Units, Combined Inclusionary Housing Project, Conversion, Density
Bonus, Existing Master Plan or Specific Plan, Growth Management Control Point,
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AUGUST 19, 1992
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Inclusionary Housing Project, Inclusionary Unit, Income, Low Income Household , Lower-
Income Household, Market Rate Unit, Moderate Income Household, Net Developable
Acreage, New Master Plan or Specific Plan, Qualified Subdivision, Sales Agreement for
Inclusionary For-Sale Units, Target Income Level, Unassisted Unit, Very Low Income
Household, Originating Site, and Receiving Site.
The majority of the new terms and definitions proposed are taken directly from State Law,
or from existing successful Inclusionary Housing Programs of other California jurisdictions.
For example, this Inclusionary Housing Program includes definitions of target income
groups (i.e.; Very Low, Low, and Moderate Income) that are eligible for housing assistance,
which are consistent with the definitions included in the State Health and Safety Code.
One new term and definition which is unique to Carlsbad is "Qualified Subdivision".
Although the term "Qualified Subdivision" was undefined in the City's Housing Element,
Policy 3.6.b. specifies that qualified subdivisions shall be subject to a 15% inclusionary
housing requirement. The definition of a "Qualified Subdivision" as proposed in the
Inclusionary Housing Program includes any existing residential lot or future residential
subdivision of land, which is not income-restricted. This recommendation is based upon
the finding that, all future residential development within Carlsbad, which does not create
affordable housing, will only further serve to exacerbate the current Citywide affordable
housing shortage by reducing the supply of developable land upon which affordable
housing could have been achieved. In accordance, staff recommends that all future
residential units, which are not income-restricted, should be subject to the 15%
Inclusionary Housing Program.
Section 21.85.030 -Applicability of inclusionary housing requirement. -This Section
identifies which residential projects shall be subject to the Inclusionary Housing
requirements and those which will be exempted. To summarize, all new market rate
residential units (for-sale or rental) resulting from new construction shall be subject to the
inclusionary housing requirements. The only residential units to be exempted from
inclusionary housing requirements would be those units which received a building permit
on or before the effective date of the Inclusionary Ordinance; existing residences which are
altered, reconstructed, restored, expanded, extended, or replaced, provided that the number
of units is not increased; and those residential units which are deed-restricted as affordable
to lower or moderate-income households.
While staff is recommending that all future residential development be subject to
inclusionary housing requirements, the following discussion of Sections 21.85.040 -
21.85.060 identify what the specific alternative inclusionary requirements (i.e.;
construction of affordable units, payment of in-lieu fees, or payment of inclusionary
housing impact fees) would be for various classes of residential projects or permits (See
Exhibit "A").
The recommendations reflect a comprehensive strategy for addressing the City's Fair Share
Housing Needs, through the provision of housing for low and moderate-income households
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PAGE 5
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over the short, mid and long-term buildout of the City. The proposed strategy, is in part
based upon a City study titled "The Economics of Developing Affordable Housing" (See
Exhibit "B"), which concludes that, the costs of developing new affordable housing units
within the City are high (ranging between $134,000 and $156,000/unit), relative to the
amount of income that a low-income household can afford to pay for this housing. This
results in a significant "affordability gap" (ranging from over $75,000 to nearly
$120,000/unit).
Staff is recon;unending the assessment of three types of inclusionary requirements on new,
amended or revised residential projects. These include the requirement: (1) to construct
new affordable units (see Section 21.85.040), (2) pay in-lieu fees or other in-lieu
contributions (see Section 21.85.050) which would be used to subsidize the production of
new affordable housing units, over the mid to long term buildout of the City or 3) pay
impact fees.
The concept of the impact fees drawn from the findings of the above noted economic study
that new affordable housing units will not be easily achieved over the short term
(especially considering the overall depressed state of the regional building industry). Staff
is recommending that the City create a new program of lower-income family rental
subsidies over the short term. Funding for this new program would be achieved through
the assessment of an inclusionary housing impact fee on existing approved, but unbuilt,
residential projects (see Section 21.85.060).
Overall, the proposed inclusionary requirements have been structured to minimize the
number of future residential units within the City which would be subject to the payment
of an in-lieu fee. In fact, less than 10% of future residential development would be subject
to this in-lieu fee. The emphasis of the program is on the production of affordable units
by private for-profit and non-profit developers, with assistance from the City, where
feasible.
Section 21.85.040 -Construction of Required Inclusionary Units. -This Section specifies
which classes of residential projects or permits shall be required to satisfy inclusionary
requirements through construction of new affordable housing units. Those residential
projects, subject to this requirement include:
(1) Any residential project, of seven (7) or more dwelling units, approved after the
effective date of the Inclusionary Ordinance.
(2) Any residential tentative map, of seven (7) or more dwelling units, which is
approved for revision, after the effective date of the Inclusionary Ordinance.
The justification for recommending that residential projects of 7 or more dwelling units
being required to construct new affordable housing units, is based upon the finding that
15% (which is the minimum inclusionary requirement adopted within the City's Revised
Housing Element) of a 7 unit project equates to 1 required inclusionary unit. As discussed
in the next section of this report, since projects of 6 dwelling units or less, would not
ZCA 91-6 CITY OF CA.AD
AUGUST 19, 1992
PAGE 6
achieve a full inclusionary unit (6 DU's X .15 = .9 DU's), the 15% Inclusionary requirement
may be satisfied through the payment of an in-lieu fee.
The recommendation to impose the same inclusionary requirements on revised tentative
maps, of 7 or more dwelling units, is consistent with Section 20.12.120(d) of Title 20,
which specifies that " ... a revised tentative map shall be treated in all respects as an original
tentative map and shall be reported on, approved, conditionally approved or disapproved
in the same manner as a tentative map".
Section 21.85.050 -In Lieu Contributions. -This Section specifies which classes of projects
or permits may satisfy inclusionary housing requirements for lower-income households,
through the payment to the City of an in-lieu fee or other in-lieu contribution (i.e. land).
Those residential projects include:
(1) Any residential project, of 6 dwelling units or less, approved after the effective date
of the Inclusionary Ordinance.
(2) Any residential tentative map or parcel map, of 6 or less dwelling units, which is
approved for revision after the effective date of the Inclusionary Ordinance.
(3) Residential projects, of any size, which were conditioned to pay an in-lieu fee and
were approved on or before the effective date of the Inclusionary Ordinance.
( 4) Residential projects, of any size, in process and for which the application was
deemed complete on or before the effective date of the Inclusionary Ordinance.
(5) Creation of 6 or fewer new mobilehome spaces in a mobilehome park.
While it is preferable for developers to construct the required inclusionary dwelling units
on the ground as a first priority, imposing this requirement on those classes of projects
listed above could pose an onerous burden. Specifically, small developments of 6 units or
less may not be economically viable if the inclusionary housing requirement could only be
satisfied by the development of the unit on the ground. In addition, requiring 1 unit of
affordable housing to be constructed for every 6 or fewer market rate units developed
would result in an inclusionary housing requirement of greater than 15%.
As discussed in Section 21.85.040, Title 20 mandates that revised tentative and parcel
maps be treated in the same manner as original tentative and parcel maps.
For residential projects, of any size, with existing entitlements (and conditioned to pay an
in-lieu fee) or applications in process and already deemed complete, a tremendous
economic hardship would also be imposed if a developer had to redesign the project to
provide the affordable units on the ground. Therefore, an in-lieu fee or other in-lieu
contribution appears as a reasonable alternative to satisfying the inclusionary requirement.
With this in-lieu alternative, the City is accepting the burden of producing the affordable
dwelling units instead of the private developers. The in-lieu fee or other in-lieu
contribution will be used by the City to subsidize the production of affordable dwelling
units.
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Staff is recommending that the in-lieu fee be equal to 15% of the subsidy required to make
affordable to a lower income household, for a 30 year tenure, one newly constructed,
typical attached housing unit. The identified subsidy is based upon the findings of the
economic study, "Economics Of Developing Affordable Housing" (see Exhibit 11B11). The
dollar value of this in-lieu fee would be $14,900 per market rate unit (see Exhibit "C").
Staff acknowledges that this fee amount could likely pose a significant economic burden
on developers. However, as discussed earlier, less than 10% of future residences developed
within the City would be subject to this fee. Assuming that the actual costs to subsidize
the development of affordable housing within the City, as discussed in the above noted
economic study, are accurate, then the primary means for reducing this fee would be
through direct financial assistance from the City.
As an alternative to paying this in-lieu fee, a developer may satisfy his/her inclusionary
requirement through a combined inclusionary housing project, which is discussed later in
this report. This alternative would enable a developer, who is able to, construct, operate
and maintain the required number of inclusionary units at a cost less than the value of the
in-lieu fee, to pursue this option. In view of the likelihood that a residential developer
would be able to produce residential units more cost effectively and efficiently than the
City, the City would encourage any developer to build the units rather than pay the
required in-lieu fees.
The in-lieu fee would be assessed against all market rate units of a development subject
to the fee. The fee will be required to be paid to the City at the time of building permit
issuance. All in-lieu fees collected by the City would be deposited in a Housing Trust Fund
to be administered by the City. The in-lieu fees collected would only be used for the
provision of lower-income housing to fulfill the developer's inclusionary housing
requirements. Any in-lieu fees collected, could not be used to fulfill the City's own
obligation to provide housing affordable to lower-income households.
Section 21.85.060 -Inclusionary Housing Impact Fee. -This Section specifies which classes
of projects or permits may satisfy inclusionary housing requirements, for lower-income
households through the payment of an inclusionary housing impact fee. Those residential
projects include:
(1) Residential projects, which were not conditioned to pay an in-lieu fee or construct
required inclusionary units, and for which all discretionary approvals were granted
(excluding site development plans for single family residences) on or before the
effective date of the Inclusionary Ordinance.
(2) Any residential tentative map or parcel map, which was not conditioned to pay an
in-lieu fee or construct required inclusionary units, and is approved for extension
after the effective date of the Inclusionary Ordinance.
(3) Any residential planned unit development, site development plan, conditional use
permit or redevelopment permit, which was not conditioned to pay an in-lieu fee
or construct required inclusionary units, and is approved for amendment after the
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AUGUST 19, 1992
PAGE 8
effective date of the Inclusionary Ordinance.
•
The recommendation to assess an inclusionary housing impact fee on previously approved,
yet unconstructed residential projects is based upon the principle of requiring all future
market rate residential development to bear responsibility for the provision of affordable
housing within the City. There currently exist approximately 6,000 approved, yet
unconstructed dwelling units within the City. These 6,000 units represent approximately
1/5 of the remaining buildout capacity of the City. Without the participation of these
previously approved residential projects, the City would not be able to achieve its
affordable housing Fair Share objectives through buildout. However, because these
projects were approved prior to the City's commitment to an Inclusionary Housing
Program, staff is recommending that a less onerous inclusionary housing requirement be
assessed these projects.
The proposed housing impact fee would not be used to build or create new affordable
units, but instead would be used to create rental subsidies for lower income households.
The dollar value of the impact fee would be $3,250/unit (see Exhibit "D"). At this dollar
value, each fee would provide 15 percent of rental subsidy needed for a low-income
household for a period of 30 years. If all 6,000 previously approved, yet unconstructed
units within the City were assessed this fee, the City, could provide rental assistance for
900 low-income households for a tenure of 30 years.
The dollar value of the fee would be determined by calculating the difference between the
average monthly rental costs for housing within the City (U.S. Department of Housing and
Urban Development Fair Market Rent Schedule for San Diego), and the maximum amount
of money that a low income household can afford to pay for rent (U.S. Department of
Housing and Urban Development Income Limits for the San Diego MSA). The fee is
weighted relative to demand for housing by bedroom size (taken from City's existing
Section 8 Certificate waiting list). The value of this impact fee would be recalculated
yearly based upon revised: (1) HUD Fair Market Rent Schedules, (2) HUD Income Limits
for the San Diego Region, and 3) demand for different sized units from the City's Section
8 waiting list.
Similar to the proposed In-Lieu Fee, the impact fee would be required to be paid at the
issuance of building permits. The impact fees would be deposited into a Housing Trust
Fund, and expended for rental subsidies in a reasonable period of time.
Sections 21.85.070 -21.85.100 -Regulations for New Master Plans and Specific Plans,
Existing Master Plans and Specific Plans, Qualified Subdivisions and Mobilehome Parks -
These Sections establish the inclusionary housing regulations and requirements applicable
to specific residential application types (i.e.; New Master Plan or Specific Plan, Existing
Master Plan or Specific Plan, Qualified Subdivision or Mobilehome Park). The key
provisions of these Sections are described below.
A Number of Lower/Moderate Income Units Required -The number of lower income and
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moderate-income units required per residential project is equal to the "base" number of
dwelling units permitted within the project multiplied by 15% and 5% respectively.
The 11base11 number of units for: (1) new Master Plans or Specific Plans (those approved
after the effective date of the Inclusionary Ordinance), (2) Qualified Subdivisions not
subject to a Master Plan or Specific Plan, and (3) Mobilehome Parks, is determined by
multiplying the net developable acreage of the project site times the Growth Management
Control Point of the applicable General Plan designation. In simple terms, this
methodology would determine a project's inclusionary requirements based upon what is
allowed on a site rather than what is proposed or approved. This approach for calculating
dwelling unit yields is consistent with the methodology adopted through the City's Growth
Management Program.
The "base" number of units for an existing Master Plan or Specific Plan is equal to the
maximum number of dwelling units permitted under that Master or Specific Plan minus the
number of residential building permits issued within the Plan area on or before the
effective date of the Inclusionary Ordinance. Notwithstanding this general rule, any
residential phase or development area within an Existing Master or Specific Plan, which
has a tentative map or final map approved on or before the effective date of the
Inclusionary Ordinance, and the number of units approved per said map(s) is less then the
maximum number that could have been achieved under the Master or Specific Plan, then
the base shall be equal to the number of dwelling units actually approved on that tentative
or final map.
The justification for the above noted inclusionary housing regulations is based upon an
important assumption: the City is committed to achieving the affordable housing numerical
objectives contained within the Housing Element. As discussed earlier in this report, the
Housing Element includes an objective for the development of 1,050 lower-income and 200
moderate-income dwelling units, through the Inclusionary Housing Program, by 1996.
Research conducted by staff indicates that the Inclusionary Housing Program could only
produce enough affordable dwelling units to meet the identified affordable housing
objectives if all future residential development is subject to these standards. To the extent
that portions of the base are exempted from these standards, production of affordable units
may be fewer than are needed to meet the City's Inclusionary objectives.
It is also likely that if the City does not meet its lower income housing objectives, or at
least adopt ordinances which would enable the achievement of these objectives, then the
City's lower income housing needs, as identified by the State, would be increased over the
next Housing Element cycle. Under this scenario, the City would be asked by the State to
produce a greater number of affordable units, but would have fewer acres of land upon
which to develop this housing. This could necessitate that the 15% Inclusionary
requirement be increased to a greater percentage, and that significantly higher density
projects would be required to be approved.
B. Large Family Requirement -Consistent with the Revised Housing Element Policy 3.2,
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AUGUST 19, 1992
PAGE 10
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•a standard has been included to require that residential projects which must provide ten
or more units affordable to lower income households, provide at least ten percent of the
lower income units with three or more bedrooms. This standard was incorporated to
ensure that lower income families with children have access to decent and affordable
housing opportunities within Carlsbad.
C. Inclusionary Housing Plan Requirement -All New Master and Specific Plans or Existing
Master and Specific Plans, which are proposed for amendment, shall be required to provide
an Inclusionary Housing Plan within the body of the Master or Specific Plan. An
Inclusionary Housing Plan is a plan which outlines the basic components of the Master or
Specific Plan's inclusionary housing requirements, and commits the Master or Specific Plan
developer to fulfilling these requirements.
This Inclusionary Housing Plan shall be required to include:
(1) • the total number of base residential units within the Master or Specific Plan;
(2) the required number of lower and moderate-income units over the entire plan area;
(3) designated sites or areas for the location of the required inclusionary units;
(4) a phasing schedule for the development of the inclusionary units; and
(5) a provision that all future discretionary applications processed within the plan area
shall be conditioned to enter into an Affordable Housing Agreement and either an
Administrative Agreement For Inclusionary Rental Units or Sales Agreement for
Inclusionary For Sale Units, with the City prior to final map approval and building
permit issuance, respectively. The Affordable Housing Agreement shall be recorded
as a deed restriction on those lots or units designated for the location of
inclusionary units.
All other qualified subdivisions and mobilehome park projects shall be required to enter
into an Affordable Housing Agreement and a Rental Administrative or Sales Agreement as
a condition of their approval(s).
It is important to understand that the Inclusionary Housing Plan constitutes but a single
part of the agreement process and documentation which shall be necessary for ensuring the
development of inclusionary units. As shown on Exhibit "E", other agreements (i.e.;
Affordable Housing Agreement, Rental Administrative Agreement, Sales Agreement, Resale
Agreement, and Annual Reports), discussed later in this report, shall also be required to
• successfully implement this program.
Section 21.85.110 -Combined Inclusionary Housing Projects. -This section establishes that
it may be in the public interest for the City to authorize some or all of the inclusionary
units associated with one residential project site to be produced and operated at a second
site. Where the parties-in-interest to the two sites and the City form an agreement to such
an effect, the resulting linked project sites would be considered to be a single combined
inclusionary housing project. This section establishes the circumstances and conditions
necessary for the formation of combined inclusionary housing projects. It requires the City
ZCA 91-6 CITY OF CAR.AD
AUGUST 19, 1992
PAGE 11
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to be a party to an agreement between the principals of the originating site and the
receiving site and that this agreement shall be made a part of the larger Housing
Agreement required by Section 21.85.180 for both sites.
These regulations would pertain to any development proposing to satisfy its inclusionary
housing requirement by producing units "off-site". This City-approved option may be of
interest to developers of small (less than 7 units total), in-fill projects who are eligible to
meet their inclusionary requirements with in-lieu fees, but who may find it less costly to
arrange for a second party to produce on their behalf actual units at another site. It may
also appeal to larger developers with low density land who wish not to apply for density
bonuses for higher density projects. And it will probably appeal to developers working
within master plans which call for meeting the inclusionary requirements of the whole
master plan in just a few locations.
Key provisions include: it is the City's exclusive prerogative to authorize a combined
inclusionary housing project. The receiving site must add the transferred inclusionary units
to its own inclusionary requirement, together with a strict accounting to assure that no
inclusionary units "slip through the cracks" in the transfer. The receiving site must be in
the same City quadrant as the originating site. The receiving site must have been already
granted discretionary permits or such permits must be processed concurrently with the
permits for the originating site.
Section 21.85.120 -Affordable Housing Standards.
A Timing of Development -The Inclusionary Housing Program specifies that inclusionary
units should be constructed concurrent with market rate units unless both the City and
developer agree to an alternative schedule for development. Developing the inclusionary
units at the same time as the market rate units would help to ensure that the lower income
units are integrated physically within a project or community. Lower-income units that are
satisfactorily integrated into a community are less likely to create neighborhood opposition
associated with NIMBY (Not-In-My-Backyard) attitudes that otherwise might occur.
Although it is desirable for the inclusionary units to be constructed concurrent with the
market rate units, there will likely be situations where it may be necessary to allow the
inclusionary units to be constructed in a subsequent phase of development. Therefore, this
standard includes flexibility to enable a developer and the City to negotiate an alternative
schedule for the construction of the inclusionary units. The schedule for construction of
the inclusionary units would be identified within an Affordable Housing Agreement, which
is required by this Inclusionary Housing Program.
B. Tenure of Affordability -All required inclusionary units shall be restricted and
affordable to designated income groups for a minimum period of 30 years. This
recommendation is based upon a principle of maintaining the units as affordable for the
longest reasonable period of time, particularly in geographic areas (such as Carlsbad)
where market forces would otherwise rapidly force these units out of reach of the lower
zcA 91-6 CITY OF cAAD
AUGUST 19, 1992
PAGE 12
income population.
A survey of Inclusionary Housing Programs of other jurisdictions revealed that some
jurisdictions have tenure standards which extend for the life of the structure (assumed to
be 55 years). This minimum 55 year tenure standard is, in fact, now the minimum
standard for qualifying for tax credits and some Federal and State government affordable
housing grants and loan programs. However, conventional lenders typically are not willing
to finance affordable housing projects which have tenures which exceed 30 years. In order
to enable private developers the opportunity to qualify for loans for affordable housing
from conventional lenders, staff is recommending a minimum tenure of 30 years. In that
this proposed tenure standard does not include a maximum, if a longer tenure than 30
years is required to secure other non-conventional, government loans, grants or tax credits,
then the tenure could be increased on a project basis. In conclusion, this recommended
30 year minimum tenure standard will provide the development community the greatest
opportunity to secure financing, conventional or otherwise, for affordable housing.
C. Location of Inclusionary Units -The Inclusionary Housing Program includes a hierarchy
for preferred location of inclusionary units. In order of priority, the required inclusionary
units should be located:
(1) Within the same project site of the proposed market rate units ;
(2) Within the same Local Facilities Management Zone of the proposed market rate
units;
(3) Within the same City quadrant of the proposed market rate units.
Inclusionary units shall not be permitted to be located outside of the City quadrant which
the market rate units are located.
The location standards of the Inclusionary Housing Program implement Revised Housing
Element Goal 3 which states "Sufficient new, affordable housing opportunities in all
quadrants of the City to meet the needs of groups, with special requirements, and in
particular, the needs of current lower and moderate-income households ... " The proposed
location standard will ensure that: (1) inclusionary units are as a first priority, fully
integrated into a development and, (2) are evenly distributed throughout the City, thereby
avoiding concentration in infill areas of the City such as the Northwest Quadrant.
The location standard also establishes criteria for identifying appropriate sites for the
location of inclusionary units. Inclusionary units restricted for lower income households
should be locat~d on sites which are in proximity to or will provide access to :
transportation corridors ( freeways, major roads, bus lines, or commuter rail), services and
facilities ( commercial centers, parks and schools), employment opportunities (commercial,
industrial) and which would be compatible with adjacent land uses.
D. Design Guidelines -Consistent with the City's overall commitment to project design
quality, this Section requires that the inclusionary units shall be compatible with the design
zcA 91-6 CITY OF cAAD
AUGUST 19, 1992
PAGE 13
of the larger project and adjacent structures in terms of appearance, and materials. In
addition, by requiring, as a first priority, that the inclusionary units be located in proximity
to the market rate units of a project, there is assurance that the appearance of the
inclusionary units will not negatively affect the marketability of other market rate units
within a development.
E. Unit Mix (by number of bedrooms) -Program 3.9 of the City's Housing Element specifies
that the City will annually set priorities for its future lower-income and special housing
needs. In order to ensure that identified lower-income housing needs, by family size are
addressed, this Section requires that Inclusionary projects shall include a mix of affordable
units (by number of bedrooms) to meet the identified demand. Until this priority list is
approved by the City Council, the Census data ("Housing Assistance Needs of Low and
Moderate-Income Households", October 1, 1991), can be used to establish demand. As
discussed in the City's Comprehensive Housing Affordability Strategy (CHAS), the current
demand is: 1 BR (20%), 2 BR (36%), 3 BR (36%), and 4 BR (8%).
Section 21.85.130 -21.85.140 -Terms and Conditions of Rental and For-sale Inclusionary
Units. -These Sections identify the affordable housing payment standards for rental and
for-sale units. These standards include:
(1) Maximum affordable housing payment per target income group;
(2) Maximum sales/rental prices and move in costs;
(3) Marketing procedures, and
( 4) Occupancy restrictions.
The maximum affordable housing payment per target income group is consistent with
Federal Law (U.S. Department of Housing and Urban Development) and State policy. The
City shall annually revise, the rental rates and maximum sales prices for inclusionary units
based upon revised Housing and Urban Development Income Limits for the San Diego
MSA. Occupancy restrictions are stipulated to ensure that only qualified lower and
moderate-income households reside in the affordable units. In addition, the principal
householder must reside in the unit. Renting, leasing, subleasing and subletting of units
is permitted provided that the total household income qualifies under the eligibility
requirements of the ordinance.
Section 21.85.150 -Resale guidelines, prices and adjustments to resale prices for
inclusionary units. -This Section mandates that all future owners of for-sale inclusionary
units shall be required to enter into an Affordable Housing Resale Agreement with the City.
The major resale control provisions which are incorporated into this Section include the
following:
(1) That low-income dwelling units, upon resale, may be sold only to qualifying low
income households, and that moderate-income dwelling units, upon resale, may be
sold only to qualifying moderate-income households;
ZCA 91-6 CITY OF CAR.AD
AUGUST 19, 1992
PAGE 14
•
(2) That the City, upon notification of unit availability, shall establish the resale price,
and shall have the first right of refusal to purchase the unit, or assign its right to
an eligible household.
Section 21.85.160 -Incentives. -This Section clarifies that a developer, subject to the
Inclusionary Housing Program, may request a density bonus or other incentives permitted
under State Density Bonus Law .. However, consistent with State Density Bonus Law, a
density bonus and/ or other incentives shall only be granted if a developer of a housing
development of at least five units agrees to develop and restrict: (1) a minimum of 10%
of the total units for very low-income households, or (2) a minimum of 20% of the total
units for low-income households, or (3) a minimum of 50% of the total units for qualified
senior residents. Otherwise, under the Inclusionary Housing Program, the City is not
obligated to offer any incentives to offset the additional costs incurred as a result of this
Inclusionary Housing Program. The City may however, at its discretion, agree to offer
other incentives including, but not limited to: (1) subsidized plan check, permit, or facilities
fees, (2) modification of development standards or (3) density bonus.
Section 21.85.170 -Application and Review Process. -This Section provides the submittal
requirements and guidelines for review of inclusionary housing project proposals (both
preliminary and formal). All inclusionary housing project proposals shall be required to
undergo a preliminary project review prior to submitting a formal application for
development. The purpose of this preliminary review is to identify major project issues up
front and to provide feedback to a prospective applicant regarding any specific economic
incentives (i.e.: standards modifications, density bonus, or fee subsidies) being requested
of the City. All residential projects which are required to satisfy their inclusionary
requirements through new construction of affordable units (either on or off-site) shall be
required to process a site development plan in addition to any other applications required
for the inclusionary or market rate units of the project. Any proposal requesting an
incentive from the City shall be required to submit a project pro-forma to justify that the
request is necessary to make the project economically feasible. All requests for direct
financial incentives (i.e.; fee subsidies) from the City shall be required to be reviewed and
approved by the City Council.
Section 21.85.180 -Inclusion of Affordable Housing Agreement as a Condition of
Development. -For any residential project subject to the Inclusionary Housing Program
(excluding those projects eligible to satisfy their inclusionary requirement through the
payment of an in-lieu fee or impact fee) the project applicant shall be required to submit
for review and approval by the City an Affordable Housing Agreement prior to final map
approval, or final approval of any other applicable discretionary application. An Affordable
Housing Agreement is a legally binding agreement between the developer (proposing the
discretionary application) and the City which provides the specific details regarding the
implementation of the inclusionary requirements of a project.
An Affordable Housing Agreement for newly constructed inclusionary units shall: (1)
describe the inclusionary requirements of the project (i.e.; the number, size and location
ZCA 91-6 CITY OF CAR.i..AD
AUGUST 19, 1992
PAGE 15
of the proposed units), and (2) identify the unit prices, tenant/owner income qualification
process, tenure of affordability, schedule for production, and program for selling or
marketing the units. In order to guarantee that the inclusionary units shall be constructed,
reserved as affordable and operated consistent with the terms of this agreement, the
Affordable Housing Agreement shall be recorded as a deed restriction on those individual
lots or units designated as affordable . .
The Affordable Housing Agreement for projects making a non-monetary in-lieu contribution
shall include the dollar value of the in-lieu contribution and the method and schedule for
payment of the in-lieu contribution.
Projects eligible to pay monetary in-lieu fees or inclusionary housing impact fees shall not
be required to enter into an Affordable Housing Agreement with the City, but instead shall
be conditioned to pay the in-lieu fees to the City on a per dwelling unit basis prior to the
issuance of building permits.
Section 21.85.190 -Administrative Agreement for Inclusionary Rental Units. -All
developers of residential projects proposing to satisfy their inclusionary requirements
through the construction of rental units shall be required to enter into an Administrative
Agreement for Inclusionary Rental Units, with the City. The Administrative Agreement for
Inclusionary Rental Units, shall be required to clearly establish the rules, procedures and
plans for: (1) qualifying tenants, (2) setting rental rates, (3) filling vacancies, and ( 4)
operating and maintaining the units. The purpose of this agreement is to ensure the long
term maintenance and operation of inclusionary units as affordable. This agreement shall
be required to be completed prior to the issuance of building permits for inclusionary units.
Section 21.85.200 -Sales Agreement for Inclusionary For-Sale Units. -All developers of
inclusionary for-sale units shall be required to enter into an Agreement for Inclusionary
For-Sale Units with the City prior to the issuance of building permits for those inclusionary
units. The For-Sale Agreement shall serve to establish sales guidelines and regulations
which shall govern the initial sale of the inclusionary units to a qualified household. The
Sales Agreement shall include: (1) an income qualification process for home buyers, (2) unit
sales and resale regulations and price standards, and (3) a marketing program which
includes a loan package with a low downpayment to enable qualified households to
purchase the restricted units.
Section 21.85.210 -Inclusionary Housing Resale Agreement. -This Section requires that
all buyers of for-sale inclusionary units shall be required to enter into an Inclusionary
Housing Resale Agreement with the City prior to purchasing an inclusionary unit. The
Resale Agreement shall specify to a prospective buyer of a for-sale inclusionary unit that
the unit may not be resold to any other buyer without the approval of the City. Resale
controls are necessary for ensuring that inclusionary units, which have been made available
to a lower or moderate-income household at a price substantially below the market price,
are not lost from the City's pool of affordable housing through the subsequent sale of an
income restricted unit at a market price.
ZCA 91-6 CITY OF CAR.AD
AUGUST 19, 1992
PAGE 16
•
While resale controls are essential for preserving for-sale inclusionary units as affordable
over the long term, there will likely be costs to the City for administration and
enforcement. The administration of resale controls shall require that the City: (1) place
a limitation on the amount of appreciation on the unit, in order that the price of the unit
continues to be affordable to lower and moderate-income households, and (2) establish a
process to ensure that the new buyer of the unit is a qualified income household, similar
to the seller. Such programs, to be most effective, require not only ongoing monitoring
of prices and sales transactions, but also maintenance of a pool of qualified buyers, who
can be referred in a timely fashion as units become available.
Section 21.85.220 -Eligibility requirements and tenant selection -This Section establishes
household eligibility requirements (based upon income) and a tenant selection priority list.
The process of marketing inclusionary units and making their availability known to those
households in need is critical to ensuring that Carlsbad's Inclusionary Housing Program is
as responsive as possible to the needs of it's lower income population. In order to more
effectively match housing units to the target households in need, a tenant selection
priorities list is included in this Section. This list assigns the highest priority to qualified
income Carlsbad resident/worker households, and a lower priority to other low income
households within the region. This priority ranking is based upon the objective of
providing housing opportunities to: (1) existing City residents who may be living in
substandard or overcrowded housing conditions or paying a large portion of their income
to hosing costs or, (2) people working within the City who are unable to live within the
City.
While acknowledging that the City's "fair share" affordable housing objectives are in large
part based upon identified regional needs, the recommendation to assign a preference for
local residents or workers is based upon the fact that the City currently has a list of
households who qualify for, but have not received Section 8 assistance because an adequate
number of Certificates are not available to the City. In accordance, with the
implementation of this Program, this existing list could be used to qualify households for
inclusionary units which are available.
Section 21.85.230 -Management and Monitoring. -This Section establishes that all
inclusionary rental units shall be required to be managed and operated by the owner of the
units. Consistent with this requirement, an annual monitoring report, which is due on the
anniversary of the initial certificate of occupancy release date shall be required to be
submitted to the City. This report shall review the status of the inclusionary units and the
tenant households over the past year. This report shall identify: (1) the inclusionary units,
(2) the monthly rent and monthly income of tenants, and (3) the vacancy information for
each unit. The City shall have the responsibility for monitoring and administering all
inclusionary for-sale units.
Section 21.85.240. -Administrative Fee for Inclusionary Housing. -Over the minimum
thirty-year tenure of projects containing inclusionary housing units the City will either
ZCA 91-6 CITY OF CAR.AD
AUGUST 19, 1992
PAGE 17
•
directly or, via one or more third parties, provide a number of recurring services associated
with the administration and monitoring of inclusionary units. Although the provision of
some of these services will be within the normal purview of existing City activities, others
will involve new costs to the City for which there are no existing funding sources. Unless
and until alternative funding sources are identified it may be necessary to require the
builders/owners of residential projects to share in these administrative costs. Therefore,
staff recommends that the ordinance provide for the establishment of an administrative fee
for inclusionary housing, the amount to be established by City Council resolution and paid
prior to the issuance of building permit(s).
Establishing the amount of the fee will depend upon several factors, the dollar implications
of which are not known at this time. For example, will the City directly provide
administrative services or will it contract out with a third party? If done in-house, what
will the exact staffing and non-personnel expenses be? What time and skills will be
required to negotiate and enforce the several types of agreements called for by the
ordinance? What will be the role of the Housing and Redevelopment Advisory Committee?
Until the new Director of Housing and Redevelopment is brought on-board to assist with
answering these questions, it may not be possible to estimate these expenses. Nevertheless,
the expenses will be real and they will be non-trivial. Therefore, it is recommended to
establish a fee in the ordinance now, and determine the dollar amount at a later time.
Consistency with the General Plan.
In that this zone code amendment, implements Inclusionary Housing Programs; 3.2 (Large
Family Inclusionary), 3.6.a. (15% Low-Income Inclusionary for Master Plans), 3.6.b. (15%
Low-Income Inclusionary for Specific Plans and Qualified Subdivisions) 3.6.c. (Inclusionary
In-Lieu Fee), and 3.10.c. (5% Moderate-Income Inclusionary for Master and Specific Plans)
of the City's Housing Element, it is consistent with the General Plan.
Reasonable Relationship.
As discussed below, there is a reasonable relationship between the need for affordable
housing and the imposition of a 15% low-income and 5% moderate-income inclusionary
housing requirement on market-rate residential development.
The State Department of Housing and Community Development (HCD) and the San Diego
Association of Governments (SANDAG) have identified numerical objectives for the
production of housing units for all income groups within each jurisdiction in San Diego
County. These numerical objectives are contained within SANDAG's Regional Housing
Needs Statement, and are recognized as each jurisdiction's "regional share" of the total
region-wide housing needs.
Consistent with State Law (Section 65584), SANDAG's Regional Housing Needs Statement
identifies that the minimum number of total dwelling units to be constructed in Carlsbad
during the period 1991-1996 is estimated at 6,273 (see Table 1).
ZCA 91-6 CITY OF CAR.AD
AUGUST 19, 1992
PAGE 18
CARLSBAD REGIONAL SHARE
•
FUTURE HOUSING NEED BY INCOME CATEGORY 1991-1996
Income Type Dwelling Units ~ -1-. -__ . Perc_~iitage _ • '·:1
Very Low -
Low Income -
Median Income
Less than 50% of County
Median Income
50 -80% of County
Moderate Income -80 -120% of County
Median Income
Upper -
TOTAL
120% + of County
Median Income
1,443
1,066
1,317
2,447
6,273
Source: Regional Housing Needs Statement, SANDAG (page 135)
23%
17%
21 %
39%
100%
The Regional Housing Needs Statement breaks this figure down by income groups. There
is a total need of 2,509 units affordable to lower-income (very-low and low-income)
households. The need for housing affordable to moderate-income households is 1,317 units
and for upper-income households is 2,447 dwelling units. The need for lower-income and
moderate-income households represents 40% and 21 % respectively, of Carlsbad's future
residential development through 1996.
However, because of historic and anticipated economic and market conditions (i.e.; 1986
Federal Tax Reform Act which reduced multi-family housing tax benefits and made project
financing difficult to obtain, an existing recessive economy, higher land costs associated
with Carlsbad's coastal location, and significant facility fee requirements) it will not be
feasible to achieve 2,509 units affordable to lower-income households within the City by
1996.
The need (1,317 units) for housing affordable to moderate-income households in Carlsbad
is also significant, particularly for first-time homebuyers. The income needed to qualify for
a loan for a median priced home is far above the median income in San Diego County (see
Table 2). •
ZCA 91-6 CITY OF CAR.AD
AUGUST 19, 1992
PAGE 19
•
AVERAGE PRICE OF HOME AND QUALIFYING HOUSEHOLD INCOME
.. . . .. . ·.· . .Average Price of Qualifying Average Household
• 1:S'~fi~it.=:::tt Area Homes Sold Income Inca.me · .. .. .. . ..
San Diego $189,600 $64,900 $48,000 -$16,900
Few moderate-income households are able to qualify for a typical mortgage on an entry
level home. Carlsbad~s moderate-income families who can afford to purchase a home
within the City are usually "move-up" buyers, with substantial equity from a previous home
sale.
Accordingly, the City's adopted Housing Element includes more modest, but realistic
objectives for the development of housing affordable to lower-income households. The
minimum number of lower-income units to be provided is 1,125 (as identified by
SANDAG's Fair Share goals). This represents 18% of the 6,273 total Regional Share units
needed in Carlsbad over the next five years.
The City's revised Housing Element includes ob)ectives for the provision of 1,400 lower-
income units (275 units in excess of the City's Fair Share requirements) and 1,300
moderate-income units (17 units less than the Regional Share requirement). Of the 1,400
lower-income and 1,300 moderate-income required units, the City has committed itself to
producing 300 lower-income and 1,100 moderate-income units through City initiated
development.
The private sector has not produced in the past, nor is likely to produce in the future, an
adequate amount of housing units affordable to lower and moderate-income households
to meet the remaining balance of the City's lower-income Fair Share need (1,050 units) or
moderate-income Regional Share need (200 units). If the development of the remaining
vacant residentially designated land is driven by private sector market forces, market-rate
priced housing will be produced that is unaffordable to lower and moderate-income
households. Continued new residential development, which does not include, nor
contribute toward the lower cost of housing will only serve to aggravate the current
affordable housing shortage, by reducing the supply of available residential land upon
which affordable housing could have been developed.
Accordingly, the proposed, mandatory Inclusionary Housing Program was identified within
the City's Housing Element as the best program available to the City to achieve the
remaining balance of the City's Fair Share objective for lower-income units and Regional
Share objective for moderate-income units.
Based upon an assumed rate for projected residential development between 1991 and
1996, the imposition of a 15% low-income and 5% moderate-income inclusionary
requirement on future residential development is necessary to achieve the City's Fair Share
ZCA 91-6 CITY OF CARi.AD
AUGUST 19, 1992
PAGE 20 •
(lower-income) and Regional Share (moderate-income) objectives, as mandated by the
State of California.
SUMMARY
In summary, since the proposed Inclusionary Ordinance: (1) is necessary in order for the
City to achieve its lower income Fair Share and moderate-income Regional Share housing
objectives, (2) is consistent with the various elements of the General Plan, and (3) there
is a reasonable relationship between the need for affordable housing and the imposition
of a 15% lower income and 5% moderate-income inclusionary housing requirement on
market rate residential development, staff recommends approval of ZCA 91-6.
IV. ENVIRONMENTAL REVIEW
The Planning Director has determined that this Zone Code Amendment, to add an
Inclusionary Housing Chapter to Carlsbad's Zoning Ordinance, will not have a significant
impact on the environment and therefore has issued a Negative Declaration on June 25,
1992. The environmental analysis concluded that since: (1) this zone code amendment
is not associated with any specific development project, (2) will not directly or indirectly
result in any significant physical, biological, or human environmental impacts, and that,
(3) any future residential development processed pursuant to the Inclusionary Housing
Program shall be required to undergo detailed environmental review, no project specific
environmental impacts are anticipated. There were no letters of comment received during
the public review period for this Negative Declaration.
ATTACHMENTS
1. Planning Commission Resolution No. 3424
2. Planning Commission Resolution No. 3425
3. Memo from Planning Director, dated August 19, 1992
4. Exhibit "A", Inclusionary Housing Requirements
5. Exhibit "B", The Economics of Developing Affordable Housing
6. Exhibit "C", In-Lieu Fee Calculation
7. Exhibit "D", Inclusionary Housing Impact Fee Calculation
8. Exhibit "E", Inclusionary Housing Processing Flowchart.
CDD:km
INCLUSIONARY HOUSING REQUIREMENTS
CONSTRUCT NEW UNITS PAY IN-LIEU FEE OR OTHER
IN-LIEU CONTRIBUTION
Any residential project of~ 7 DU's, Any residential project of::; 6 DU's,
approved after the effective date of the approved after the effective date of
lnclusionary Ordinance this Ordinance
Any residential tentative map of ~ 7
DU's, approved for revision after the
effective date of the lnclusionary
Ordinance
Any residential tentative map or parcel
map of$ 6 DU's, approved for revision
after the effective date of the
lnclusionary Ordinance
Residential projects, of any ~ize, which
were conditioned to pay an in-lieu fee
and were approved on or before the
effective date of the lnclusionary
Ordinance
Residential projects, of any size, in
process, and deemed complete on or
before the effective date of the
lnclusionary Ordinance
Creation of 6 or fewer spaces in a
mobile home park
PAY INCLUSIONARY HOUSING
IMPACT FEE
Residential projects, which were not
conditioned to pay an in-lieu fee or
develop inclusionary units, and for
which all discretionary approvals were
granted, on or before the effective date
of the lnclusionary Ordinance
Any residential tentative map or parcel
map, which was not conditioned to pay
an in-lieu fee or develop inclusionary
units, and is approved for extension
after the effective date of the
lnclusionary Ordinance
Any residential PUD, SOP, CUP, or
RP, which was not conditioned to pay
an in-lieu fee or develop inclusionary
units, and is approved for amendment
after the effective date of the
lnclusionary Ordinance
-
-
~ m
=i
~
X
X
A
B
C
D
E
=
=
=
=
=
=
=
IN-LIEU FEE FORMULA
(A+ B + C + D) E
4
Dollar Value of In-Lieu Fee.
• EXHIBIT "C"
The capital subsidy required to develop within the City of Carlsbad an
assisted 2 BR/1 BA, 850 sq. ft. condominium unit, and deed restrict the unit
as affordable to a low income family of 3 for a 30 year tenure. *
The capital subsidy required to develop within the City of Carlsbad an
assisted 3 BR/2 BA, 1,100 sq. ft. condominium unit, and deed restrict the
units affordable to a low income family of 4 for a 30 year tenure. *
The capital subsidy_ required to develop within the City of Carlsbad an
assisted 2 BR/1 BA, 850 sq. ft. apartment unit, and deed restrict the unit as
affordable to a low income family of 3 for a 30 year tenure. *
The capital subsidy required to develop within the City of Carlsbad an
assisted 3 BR/2 BA, 1,100 sq. ft. apartment unit, and deed restrict the unit
as affordable to a low income family of 4 for a 30 year tenure. *
15% Inclusionary Requirement = .15
*" Economics of the Development of Affordable Housing", City of Carlsbad, December,
1991.
•
FORMUIA:
X = (A + B + C + D) E
4
IN-LIEU FEE
TENANT SUBSIDY REQUIREMENTS BY UNIT SIZE FOR CARLSBAD
Unit Income Capital Subsidy Required
Size Level For-Sale Units Rental Units
2BR/SIZE1BA Low $87,064 $103,355
850 SF
3BR/2BA Low $93,547 $113,431
1,100 SF
($87,064 + $93,547 + $103,355 + $113,431).15 = $14,902.38
4
X = $14,902.38
1.
2.
F
F
T
E
=
=
=
=
=
=
=
=
=
=
=
EXHIBIT 11D11
INCLUSIONARY HOUSING IMPACT FEE FORMULAS
Dollar Value of Inclusionary Housing Impact Fee.
Unit Tenure of Affordability= 360 months (30 years).
Annual Rental Subsidy Required for a 2 Person Low Income
Household.
Annual Rental Subsidy Required for a 3 Person Low Income
Household.
Annual Rental Subsidy Required for a 4 Person Low Income
Household.
Annual Rental Subsidy Required for a 5 Person Low Income
Household.
15% Inclusionary Requirement = .15
Percent of Total Households on Carlsbad's Section 8 Waiting List
Eligible for a 1 Bedroom Unit.
Percent of Total Households on Carlsbad's Section 8 Waiting List
Eligible for a 2 Bedroom Unit.
Percent of Total Households on Carlsbad's Section 8 Waiting List
Eligible for a 3 Bedroom Unit.
Percent of Total Households on Carlsbad's Section 8 Waiting List
Eligible for a 4 Bedroom Unit.
=
• •
Average Monthly Rental Rate in Carlsbad for a 1 Bedroom Apartment
(HUD Fair Market Rents for the San Diego MSA).
= Average Monthly Rental Rate in Carlsbad for a 2 Bedroom
Apartment (HUD Fair Market Rents for the San Diego MSA).
= Average Monthly Rental Rate in Carlsbad for a 3 Bedroom.,.
=
=
=
Apartment (HUD Fair Market Rents for the San Diego MSA).
Average Monthly Rental Rate in Carlsbad for a 4 Bedroom
Apartment (HUD Fair Market Rents for the San Diego MSA).
Monthly Rental Income Available for a 2 Person Low Income
Household (HUD Income Limits for the San Diego MSA).
Monthly Rental Income Available for a 3 Person Low Income
Household (HUD Income Limits for the San Diego MSA).
Monthly Rental Income Available for a 4 Person Low Income
Household (HUD Income Limits for the San Diego MSA).
Monthly Rental Income Available for a 5 Person Low Income
Household (HUD Income Limits for the San Diego MSA).
Page 2 of 2 Exhibit 11D11
FORMULA-1
s
s
H
R
I
S2
S3
S4
Ss
=
=
=
=
=
=
=
=
=
FORMULA-2
F
F
T
E
=
=
=
=
.CLUSIONARY HOUSING IMPACT F,
H (R -I)
Rental Subsidy Required by Household Size.
% Of Total Households on Carlsbad's Section 8 Waiting List eligible for 1 Bedroom
(33%), 2 Bedroom (32%), 3 Bedroom (28%) OR 4 Bedroom (7%) Units.
Average Monthly Rent In Carlsbad For a 1 Bedroom ($618), 2 Bedroom ($725), 3
Bedroom ($908) and 4 Bedroom ($1016) Apartment (HUD Fair Market Rents for
the San Diego Region -1993).
Monthly Rental Income Available for a Low Income Household of 2 Persons ($612),
3 Persons($695), 4 Persons ($777) and 5 Persons ($844) (HUD Income Limits for the
San Diego MSA -1992) .
. 33 ($618 -$612) = $1.98
.32 ($725 -$695) = $9.60
.28 ($908 -$777) = $36.68
.07 ($1016 -$844) = $12.04
Dollar Value of Inclusionary Housing ImpactFee.
Unit Tenure of Affordability =
15% Inclusionary Requirement
360 Months
=
360 ( $1.98 + $9.60 + $36.68 + $12.04) .15 =
.15
$3256.03
F = $3256.03
TOT AL FEES AVAILABLE
6000 DU'S X $3256.03 = $19,536,180
NUMBER OF RENTAL SUBSIDIES WHICH COULD BE ACHIEVED WITH FEES COLLECTED
RENTAL SUBSIDIES FOR 900 LOW INCOME HOUSEHOLDS FOR 30 YEARS TENURE COULD BE
ACHIEVED .
. 15($19.536.180)
$3256.03
= 900 UNITS
EXH131T''E"
INCLUSIONARY HOUSING PROCESSING FLOWCHART
➔
AFFORDABLE I
INCLUSIONARY ➔ HOUSING -H HOUSING PLAN AGREEMENT
~
NEW/AMENDEC: PRIOR TO FINAL
MASTER/ MAP APPROVAL OR r-----. SPECIFIC OTHER FINAL
PLAN APPROVAL
APPLICANT FOR bMASTER l
EVELOPER[ ~ DISCRETIONAR·:
APPLICATION
RENTAL ADMIN. AGREEMENT
PAYMENT OF IN-LIEU OR
IMPACT FEES
FOR SALE AGREEMENT .. ,,,
PRIOR TO
~ ,, ISSUANCE OF
BUILDING PERMIT
DEVELOPERS OF
~ INCLUSIONARY .. ,,
UNITS
RESALE AGREEMENT
I
PRIOR TO .. PURCHASING ..
UNIT
I
BUYERS OF
FOR-SALE
INCLUSIONARY
!ANNUAL REPOR~ ~ ~1ANNUAL REPORl
t
CERTIFICATE
PF OCCUPANC"
RELEASE DATE
OWNER OF
RENTAL
UNITS
jOWNER OF
RENTAL
UNITS
•
• • GARY
JULY 28, 1992
TO: PLANNING COMMISSIONERS
FROM: Principal Planner--Advance Planning
INCLUSIONARY HOUSING ORDINANCE--REVISED EDffiON
As Wl;I.S indicated at the workshop on July 15th, the draft of the ordinance which we
distributed was a 1195 percent" version--there would be some revisions prior to the hearing.
Since we always keep our word, please find attached to this memo a copy of the revised
draft ordinance for inclusionary housing.
Some of the changes originated with staff and some resulted from feedback we have
received from parties outside the Planning Department. There are four types of changes:
1) minor grammatical, and formatting corrections; 2) minor editorial changes, where
phrases a:p.d sentences have been re-written for increased clarification; 3) major re-writes
of sections that just weren't saying what we were trying to say, and 4) a couple of new
sections, not found in the previous draft.
The revised draft is in a strike-out/highlight format. Text to be deleted is in strike-out
type; new text is in highlighted type. You should be able to tell exactly where the changes
are. However, to aid you, here is a list of the major changes:
1. Section 21.85.110 (plus several other spots), "Combined Inclusionary Housing
Projects", has been completely re-written. Two new terms were added to the
definitions list as a consequence. Also, several other sections which referred to
combined projects have had partial re-writes to reflect the new section. The section
better establishes the obligations of two sites, where one is transferring inclusionary
units to the other.
2. Section 21.85.240, "Administrative Fee for Inclusionary Housing", is a totally new
section. The city will encumber a significant administrative burden with the
adoption of this program. As some of the procedural matters having to do with the
administration of various agreements are still a little fuzzy, a sharp estimate of
administrative costs is still unclear. Nevertheless, the emerging consensus is that
the City will find this burden difficult to handle without some assistance. Hence,
we are proposing to ask the developers to share some of the costs, especially for for-
sale projects where developers typically sell and run, but where there will be major
administrative and fiscal issues associated with re-sales for 30 or more years.
3. Section 21.85.130.(9) and (10), "Terms and Conditions of Rental Inclusionary
Units", were prompted by Commissioners Noble and Schlehuber, respectively.
• •
PLANNING COMMISSION
INCLUSIONARY HOUSING ORDINANCE -REVISED EDITION -MEMO
JULY 28, 1992
PAGE 1WO
4.
Paragraph (9) establishes the rights of low-income tenants at the end of the 30-year
tenure, to include notice and specific re-location assistance. Paragraph (10) adds
a new requirement for 24-hour, on-site management in rental projects.
Several sections were· amended to!reflect more clearly that tentative maps for condo
conversions are subject to inclusionary housing requirements.
5. Sections 21.85.070 and .080, regulations for new and existing master plans.
Although both sections already required a master plan to have a master Housing
Plan and then required later subdivisions to enter into Housing Agreements with the
City for the ipdividual projects, there was no requirement that the Housing
Agreement had to be consistent with the master plan's Housing Plan. The new
paragraphs (6) and (k), respectively, fix this problem. Now both developer and the
City must follow the master plan's Housing Plan at the subdivision level.
There are quite a number of other minor changes. Our apologies for the confusion this
creates. With an ordinance of this size, which deals with terra incognita, it is a difficult
process. We want to get it as right as we can, the first time. Thanks for bearing with us.
A reminder: staff will be available to discuss this ordinances at the regular briefing times
on August 3rd a1:1d 4th (there is no Commission meeting on the 5th).
We hope to have the staff report to you R.S.N. (Real Soon Now) .
. --:::::t::>..a., 1 t ft ..
DENNIS A. TURNER
Attachment:
Draft Ordinance for ZCA 91-6, Inclusionary Housing (revised)
DT:vd
PCinclor.mem
•
ORDINANCE NO. ----
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE
CARLSBAD MUNICIPAL CODE BY THE ADDITION OF
CHAPTER 21.85 TO ESTABLISH REQUIREMENTS FOR THE
RESERVATION AND AFFORDABILITY OF HOUSING UNITS
FOR MODERATE AND LOWER-INCOME HOUSEHOLDS IN
RESIDENTIAL PROJECTS UNDER A CITY WIDE
INCLUSIONARY HOUSING PROGRAM AND THE PAYMENT
OF AN IN-LIEU FEE OR INCLUSIONARY HOUSING IMPACT
FEE IN SPECIFIED CIRCUMSTANCES.
APPLICANT: CITY OF CARLSBAD
CASE NO: ZCA 91-6
WHEREAS, Government Code Section 65588(b) requires local jurisdictions to
revise their Housing Elements every five years; and
WHEREAS, the City of Carlsbad has revised its Housing Element for the period
July 1991 through June· 1996; and
WHEREAS, Government code Section 65584(a) requires localities to address the
Regional Share housing needs for persons of all income levels in their Housing Elements;
and
WHEREAS, the City's Regional Share needs are 2,509 Lower-income units and •
1,317 moderate-income units; and
WHEREAS, based upon the needs analysis included within it's revised Housing
Element, the City of Carlsbad finds that Carlsbad is experiencing a lack of housing
affordable to lower-income households and first-time moderate income home buyers; and
WHEREAS, the City of Carlsbad's lower-income Fair Share Housing objecti_ve
(minimum good faith effort of guaranteed units) is 1125 low-income units; and
WHEREAS, the City's revised Housing Element includes objectives for the provision
of 1350 lower-income units (225 units in excess of the Fair Share requirement) and 1300
moderate-income units (17 units less than the Regional Share requirement), and of the
-1-
• ~RAFT
1350 lower-income and 1300 moderate-income units, the City has committed to
produci~g 300 lower-income and 1100 moderate-income units through City initiated
development; and
WHEREAS, the remaining 1050 lower-income and 200 moderate-income units
would have to be provided through some other means; and
WHEREAS, due to economic ijnd market conditions, the private market has not
produced in the past, nor is likely to produce in the future, an adequate amoµnt of
housing units affordable to lower and moderate-income households to meet the
remaining balance of the City's lower-income Fair Share need (1050 units) or moderate-
income Regional Share need (200 units); and
WHEREAS, continued new residential development which does not include nor
contribute toward the lower cost of housing will only serve to further aggravate the
current affordable housing shortage by reducing the supply of residential land upon
which affordable housing could have been developed; and •
WHEREAS, the mandatoryinclusionary Housing Program was identified within the
• City's revised Housing Element as the best program available to the City to achieve the
remaining balance of the City's Fair Share objective for lower-income units and Regional
Share objective for moderate-income units; and
WHEREAS, the 15% low-income and 5% moderate-income inclusionary housing
requirement was selected in order to ensure that the remaining balance of the City's Fair
Share objectives (lower-income) and Regional Share objectives (moderate-income) could
be achieved; and
WHEREAS, based upon an assumed rate for projected residential development
between 1991 and 1996, the imposition of 15% low-income and 5% moderate-income
-2-
..
• •
inclusionary housing requirement on future residential development is necessary to
achieve the City's Fair Share and Regional Share objectives; and
WHEREAS, City staff, in association with an Ad Hoc Committee of master plan
and in-fill residential builders and non-profit builders, prepared an economic study of the
development of affordable housing within the City of Carlsbad; and
WHEREAS, the economic study concludes that while the proposed inclusionary
housing req'll:irements, would create an additional economic burden on the private
development community, the development of housing affordable to low and moderate
income households is achievable through cooperative partnerships between the
development community, non-profit organizations, and the City.
The City Council of the City of Carlsbad, California does ordain as follows:
SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended by the
addition of Chapter 21.85 to read as follows:
Sections:
21.85.010
21.85.020
21.85.030
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
"Chapter 21.85
INCLUSIONARY HOUSING
Purpose and intent.
Definitions.
Applicability of inclusionary housing requirement.
Construction of Required Inclusionary Units.
In-lieu Contributions.
Inclusionary Housing Impact Fee
Regulations for New Master Plans or Specific Plans (Approved
After the Effective Date of this Ordinance). •
Regulations for Existing Master Plans and Specific Plans
(Approved On or Before the Effective Date of this Ordinance).
Regulations for Qualified Subdivisions Not Subject to Master Plan
or Specific Plan.
Regulations for Mobile Home Parks.
Combined inclusionary housing projects.
Affordable housing standards.
Terms and Conditions of Rental Inclusionary Units
Terms and Conditions of For-Sale Inclusionary Units.
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21.85.150
21.85.160
21.85.170
21.85.180
• iRAFT
Resale guidelines, prices and adjustments to resale prices for
inclusionary units.
Incentives to offset the cost of affordable housing development.
Inclusionary housing project application and review process.
Inclusion of Affordable Housing Agreement as a Condition of
Development. • .
21.85.190 Administrative Agreement for Inclusionary Rental Units.
21.85.200 Sales Agreement for Inclusionary For-Sale Units.
21.85.210 Inclusionary Housing Resale Agreement.
21.85.220 Eligibility requirements and tenant selection.
21.85.230 Management and Monitoring.
21~;8!5.i,24q:·:·· ~: .. : .. i·_-:-::Att!Jli¢sttativ~:tFee;:£9rJndus~onm;}f'.rfpusix!g
21.85.010. Purpose and Intent.
(a) It is an objective of the City, as established by the Housing Element of the
City's General Plan, to ensure that all master planned and specific planned communities
and all qualified subdivisions provide a range of housing opportunities for all identifiable
economic segments of the population, including households of lower and moderate
income.
(b) It is also the policy of the City to:.
(1) Require that a minimum of 15% of all approved residential units in any
master plan, specific plan, or qualified subdivision be restricted to and affordable by
lower income households;
(2) Require that a minimum of 5% of all approved residential units in any
master plan or specific planned community be restricted to and affordable by moderate-
income first-time home buyers; .
(3) Require-that for those developments which provide 10 or more units
affordable to lower-income households, at least 10% of the lower-income units should
have three or more bedrooms; and
( 4) 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.
(5) It is the purpos_e of this Chapter to ensure the implementation of the
City objective and policies stated in subsections (a) and fb).
21.85.020. Definitions.
Whenever the following terms are used in this Chapter, they shall have the
meaning established by this section:
(l) "Administrative agreement for inclusionary rental units" means a legally
binding agreement between a developer and the City which establishes the rules and
procedures for: qualifying tenants, setting rental rates, filling vacancies, and operating
and maintaining· units.
(2) "Affordable housing" means housing for which the allowable housing
ex enses for a for-sale or rental dwellin unit aid b a 16.W.!i~liffltiffi~ household would p g p y •.•:•:•.•:•:•:•·❖•❖•❖-•·•:•::•.•.•·····•:•:•:-:-:•:•.•···•:•:•:•.•:
not exceed 30 percent of the gross monthly 1.§miill income····fef···iafget ineeme ler;els,
aEi:i:-~:-~_,_··,·,~•
-4-
I'
• •DRAFT
(3) "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 the number of required inclusionary
units, the unit sizes, location, affordability tenure, terms and conditions of affordability
and unit production schedule.
( 4) "Allowable housing expense" means the total roqiiµµy:~:'.:'p.r·:\~iiti~~
t~su,mtig expenses required of a household to obtain shelter,:]!~t~j@~d,i,fgfJ~ndit(9#5
~!~.!?~@~f:;;;;?tt,i·~~S.#Qps>~!}~;!Je!f:!II~'I~,!;t~s;11Pte!=t~s(ep,J.p!(~l··F·or· a ·rc,r-sa!e tirui,
allowable expenses include loan principal, loan interest, property and mortgage
insurance, property taxes, home owners association dues and a reasonable allowance for
utilities. For a rental unit, allowable expenses include rent, a reasonable allowance for
utilities, and any applicable transient occupancy tax levied pursuant to Title 3, Chapter
3.12 of this Code.
(5) "Assisted unit" means any dwelling unit that has received some form
of assistance from a public body in its production or occupancy and use of such housing.
(6) "Base residential units" (~lst;itlllibv.ifttaf}-':r6.~e~J means a number
associated with each master plan, specific plan, plan. phase;·=···or·=fuclividual development
within a master or specific plan or qualified subdivision from which are calculated the
lower and moderate-income inclusionary units to be provided in conjunction with that
master plan, specific plan, phase or development or qualified subdivision.
(7) "Combined inclusionary housing project" means a single inclusionary
housing project constructed or acquired by a consortium of de:r;elopers for the purpose
of fulfilling fully or partially the inclusionary housing requirements of this Chapter for
F~iii!lia~~ii!Jlilll&~
···············-----·································cs) "Conversion" means the change of occupancy of a dwelling unit from
owner-occupied to rental or vice versa.
(9) "Density bonus (new residential construction)" means a minimum
density increase of at least twenty-five percent (25%) over eit~er 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.
(10) "Existing Master Plan or Specific Plan" means any master plan or
specific plan approved on or before the effective date of this ordinance.
(11) "Growth Management Control Point" shall have the same meaning as
Chapter 21.90; Section 21.90.045 of this Title.
(12) "Inclusionary housing project" means a new residential development
or conversion of existing residential buildings which has at least fifteen percent (15%)
. or five percent (5%) of the total units reserved and made affordable to lower-income
households or moderate-income households, respectively, as required by this Chapter.
(13) "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 or a
dwelling unit that will be offered for sale exclusively to and which will be affordable to
moderate-income first-time home buyers, as required by this Chapter.
(14) "Income" means any monetary benefits that qualifies as income in
accordance with the criteria and procedures used by the City of Carlsbad Housing and
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• ••
DRAFT
Redevelopment Department for the acceptance of applications and recertifications for the
Section 8 Rental Assistance Program, or its successor.
(15) "Low-income household" means those households whose gross income
is at least 50 percent but less than 80 percent of the median income for San Diego
County as determined annually by the U.S. Department of Housing and Urban
Development.
(16) "Lower-income household" means low-income and very low-income
households, not to exceed 80 percent of the area median income.
(17) "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.
(18) "Moderate-income household" means those households whose gross
income is at least. 80 percent but less than 120 percent of the median income for San
Diego County as determined annually by the U.S. Department of Housing and Urban
Development. .
(19) "Net developable acreage (for base residential unit calculations)"
means the total numper of acres of a subJect property minus those lands considered to
be undevelopable, as listed in Section 21.53.230 of this Code.
(20) "New Master Plan 'Or Specific Plan" means any master plan or specific
plan approved after the effective date of this ordinance.
~2?;:·. -·~=
(2t-l) "Qualified subdivision" means any existing residential lot, or any
existing or future·····residential subdivision -of land.
== •••••••• .. ••• .. ··•·:.• .. ••••••••• .. • .. ··················• ....... (2~j'l •••• i,·sat;;····agreement for inclusionary for-sale units" means a legally
binding agreement between a developer and. the City which establishes sales guidelines
and regulations which shall govern the initial sale of the inclusionary units to qualified
households.
(23S) "Target income level" means the income standards for very low, low
and moderate income levels within San Diego County as determined annually by the U.S.
Department of Housing and Urban Development, and adjusted for family size.
(24§,) "Unassisted unit11 means a dwelling unit regarding which no form of
assistance has been received from a public body in the production, occupancy and use of
said dwelling unit. •
(2-S/i) 'Very low-income household" means a household earning a gross
income equal to .. 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. Applicability of Inclusionary Housing Requirement.
(a) This Chapter shall apply to all residential market rate dwelling units resulting
from new construction of rental; and new eonstraetion of eonversion of "for-sale"
projects;tas.::::•c~j:·~~i:::::::~er'!i!:~~~~mct:i:~=e:~e~feeff e:~~~ate
• DRAFT
of this Ordinance);
(2) Existing master plans or specific plans (approved on or before the
effective date of this Ordinance) with or without development entitlements (i.e., tentative
maps, final maps, building permits);
(3) Qualified subdivisions not located within any master plan or specific
plan area; and
(4) Mobile home developments;;::,an4 .
condbiriiruUmf f l;=;:;tiatAm~¥:!:=t'f.B!.F!\;:!!§F)i1\\~'Y,:.s,§niir.#.9.~t:JJ!fi!!i?l!~BtJ~,!9tf~f.~~
• '. • •• ,,, ..... "(bj. '·'-~J'otwithstanding 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 date of this Ordinance;
(2) Existing residences which are altered, improved, reconstructed,
restored, repaired, expanded, extended or replaced, provided that the number of units is
~~~~~~~~s.~~~,;Fl-!~;:/il!~l~lbY~~l~~fl~:i~,~!P-1-11~'~,:§,rI!~4;:J9~.'.~:_ .. t,!!~
,:;,;;, ,, .. ,;:,,: •• :·.;,.,,,•,• ..• ··c~···•·:: Thb's•e 're~1a~-~ITaf'-\i'cif;··.fo:i-·:~hich'.: consistent with this Chapter, an
Affordable Housing Agreement, and an Administrative Agreement for Inclusionary Rental
Units and/or a Sales Agreement for Inclusionary For-Sale Units has been approved by the
City, and a deed restriction recorded restricting the units as affordable rental, ownership
or limited equity cooperative housing for households of lower-income or moderate-
income. . ~-..
21.85.040. Construction of 0Required Inclusionary Units:~
(a) For the following classes of residential projects· or permits, the inclusionary
housing requirements for lower and moderate income households shall be required to be
satisfied through the construction of new units.
eB.nv.effiloii-o.n'~·::~h~:~~:~~~~~'~c~:~~J~~~~~~~~;!v;e:ef J' J!~@~!!;;:;~?!!t:~~
d~v~'l'~p:~~~r::::;!a~~~l~p:~~h{'p'~~t· r~~:idential ~8bile home p!'rk pe~t ~; conditional
use permit) of seven (7) or more dwelling units; approved after the effective date of this
Ordinance.
~~nye~siqn==::g.r~:;~~:~§~'.~~t;:~iii.;.r~~~~~~~fi~,~~~~~::If~!Y!!~~~!ii~
tiiiits, ... approved .. for· revis'ion "after 'the· effec'iive· 'date ·of this Ordinance.
(b) If, at the sole discretion of,;the City, it is determined that an alternative to the
construction of new inclusionary units is acceptable, this alternative shall be r6Eftru=ed ro
~ processed through an Affordable Housing Agreement, consistent with Section
21.85.l~SO)o~f t];tli's ~+apt7t,r. 1 '-·+l-...::-1-i • -. °tJ $. (l C D • <1'-... •• • ' .Pc ,..... lt..l I • .., -_. \ ..• _ ~-__ . ":, _
21.85.050. In-lieu Contributions.
(a) For the following classes of residential projects or permits, the inclusionary
housing requirement for lower-income households may be met by the payment to the City
of an in-lieu fee or other in-lieu contributions.
£?.PY~f~pp:;\:I2~:t~P~~~fi~~:;:,•~~P~i.~:i~:s~[4§--~ ;::~elS:::~·:~:,f~~~
development, site development plan, conditional use permit, residential mobile home park
permit or redevelopment permit) of six (6) dwelling units or less, approved after the
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• • DRAFT
effective date of this Ordinance;
(2) Any residential tentative map or parcel map i'irelUWgiIIItihtitiv.iifflij fo.t.i@!\:,¢♦1\-J;tn\,,p.f,-•Pljnenlti{i:,ib,t~m~i:¢;&p,db~"~· ~{s·ix· (6 )'d~~lling· u~its '·or iess-~?'approved for revisiop> after the effective date of this Ordinance;
(3) Residential ro'ects (i.e.·· tentative ma s finti.tiw.llfflit··1,tfoi:\/B ~t~~~d~=,
permit and redevelopment permits) of any size, Whkh were conditioned to pay an in-lieu)
{ fee; and were approved on or before the effective date of this Ordinance; , •
( 4) Residential ro 'ects (i.e.· tentative ma s teiititiV.!i:ma····'':sfifotf=ffl.i
~=~~=~=:.~~::d=~~!fu~~f~:~
permits and redevelopment permits)~~~e, in process and for which the application
was lieemed compleie1 on or before the effective date of this Ordinance;
. (5) Development of 6 (six) or fewer new mobile home pads in a mobile
home park.·•·
(b) The in-lieu fee to be paid for each market-rate dwelling unit shall be 15
percent of the subsidy needed to ma],<e affordable to a lower-income household one
newly-constructed, typical attached-housing unit. This subsidy shall be based upon the
City's determination of the average subsidy that would be required to make affordable
typical, new two-bedroom/one-bath and three-bedroom/one-bath for-sale units and two-
bedroom/on -bath and three-bedroom/one-bath rental units, each with an assumed
affordabili enure 30 years.¥ ..
e ~&Ult amount 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 units/pads of a development.
(d) All in-lieu fees· collected hereunder shall be deposited in a Housing Trust Fund
with separate accounts for in-lieu fees for lower-income units and mobile homes. 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 consistent with the
policies and programs contained in the Housing Element of the General Plan. Fees
collected in-lieu of providing lower-income affordable housing and mobile homes
affordable to lower-income households shall be utilized only to provide housing for
lower-income households or mobile homes in fulfillment of the developer's inclusionary
housing requirement as required by this Chapter.
(e) At the discretion of the)ifi~al decisio~fmaking authority, an irrevocable
~~~~:t!~~e~=~=!~!f,~:~~~~~!'!i~~!,~: i~:e:~~ep~~~=gt~:1 :~~~~
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 developer. Costs associated with the appraisal shall be borne by the developer.
(t) Where an applicant/developer is authorized to pay a fee in-lieu of
development of affordable housing units, approval of qualifying parcel maps, tentative
maps, site development plans, planned unit developments, residential mobile home park
permits,. redevelopment permits or conditional use permits listed in subsection
21.85.0S0(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) The in-lieu contribution shall be paid:
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• • DRAFT
(1) As individual fees, on a per market-rate dwelling unit basis at the time
~=:~~;.~~:;:~~\a=r§.q:~:pt::~:::m:::a~;~fi@.i'''pf
(2) As a land dedication or other special consideration directly related to
the production of housing affordable to lower income households. The land dedication
or other special consideration shall be established in the Affordable Housing Agreement
prepared, approved and recorded pursuant to Section 21.85.180 of this Chapter, but in
no case shall the value of the total consideration approved under this Section be less than
the dollar amount of the otherwise required per market-rate dwelling unitii.i.i}l.iti.1 fees as
established by the schedule in effect at the time of payment. ··-···················· ..... •••❖-
(h) As an alternative to paying to the City a pro:ieets required in-lieu fee(s),
i.nclusionary housing requirements may be satisfied through a combined -inclusionary
housing project, pursuant to Section 21.85.110 of this Chapter.
21.85.060. Inclusionacy: Housing Impact Fee.
(a) For the following classes of residential projects, 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, (i.e.: parcel maps, tentative maps, tti.Uij1!.f.¢'_;rtffe~
fo}~'@litt~i.,1y~ii);i\Af)Jm,#i;~*ts/:tc>: .. i4'~~n!ijjf~9.nd9~~i site devefopinenr·· plans;
plaiiried····urut ... developIJ].enis·~--·conditional .. use····· eririits •••••••••• sidential mobile home park d -I _J
perm.its and redevelo ment erm.its) 'ch were not conditioned to a an m-·eu fee "l~
or construct required inclusionary units, an or which all 1scretionary approvals were
granted (excluding site deve opment pans for single family residences) on or before the
~ ,, i,,-effective date of this Ordinance;
~r\ , ' r fJ ._,, ,._ ~ '>" , ,·t ,o..✓-(2 • • ntative map or parcel
. I', ~' t.: __ _<?.nditi~n~~ to, a an in-lieu ~ee or constru~t require me us1on units 1 ---is app_roved.
_· ~ .... _. t -\le~· • for_ extension ~effective date of this Ordinance; • ~
' Ii\" l -~-(3) Any residential planned unit development, site development plan,
11t.\'r11 ~nal ~se perm.it, residential mobile home park perm.it or redevelopment perm.it, ... ~..:: -
i' which was not conditioned to pay an in-lieu fee or construct required inclusionary units,
and is approved for amendment after the effective date of this Ordinance.
(b) The housing impact 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 the
market-rate rent at a typical existing apartment for a period of 30 years. This subsidy
shall be based upon the City's determination of the average 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 number of bedrooms, as determined by the applications for lower-income affordable
housing qualified and approved by the City.
(c) The d§Ulr amount of the inclusionary housing impact fee 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 units of a development.
(d) The inclusionary housing impact fee shall be paid, as an individual fee, on a
per market-rate dwelling unit basis at the time of building permit issuance.
(e) All inclusionary housing impact fees collected hereunder shall be deposited
in a Housing Trust Fund. Said fund s e administered by the City and shall be -used
only for the purpose of providin rental a sistance for qualified households.
~w~ -9-
• s.J..J.id-sb , .,,.,._ .. ~ ..-1
,~ Zl-&s..Octt) ( ~)
DRAFT
. Re lations for New Master Pl or S ecific Plans. (Approved after
the Prt'lrcn:wdate of this Ordinance.)
• s 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 lower-income households; and
(2) Not less than five percent (5%) of all,base residential units in any new
master plan or specific plan · community shall be set aside for sale to and shall be
affordable to moderate-income first-time home buyers.
(b) For those developments which are required to provide ten or more units
affordable to lower income households, at least ten percent of the lower income units
shall have three or more bedrooms.
( c) The inclusionary housing requirement for lower-income and moderate-income
households in a new master plan or new 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.
(d) All new master •plans and specific plans are required by this Chapter to
provide an Inclusionary Housing Plan within the te:Mt of the master plan or specific plan
~~Yrlng;=
(1) The total number of base residential units of the master plan or specific
plan;
(2) The number of required inclusionary units for lower and moderate-
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 off-site inclusionary housing projects or combined
inclusionary housing projec1s;
(4) A phasing schedule for production of inclusionary units; and
(5) A general provision stipulating that an Affordable Housing Agreement
and an Administrative Agreement for Inclusionary Rental Units and/or a Sales Agreement
for Inclusionary For-Sale Units shall be made a condition of all future discretionary
applications for developm~nt within the Master or Specific Plan area (i.e. tentative maps,
parcel maps, planned unit developments and site development plans). The provision shall
establish that any Affordable Housing Agreement shall be recorded as a deed restriction
on those individual lots or units, designated for the location of inclusionary units. The
Affordable Housing Agreement and the Administrative Agreement for Inclusionary Rental
Units and/or Sales Agreement for Inclusionary For-Sale Units shall be consistent with
Sections 21.85.180, 21.85. 190 and 21.85.200 of this Chapter.
:_~:-•
• (el' ... For· the purpose .. of'determining the number of required lower-income ~ilni1im~~ f~~!:;~;~~~~ci:~~~~:i~~~;~~~ary units ip.tU!:::!Ml'-~::::i,lfflj!::!'~I
..
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• DRAFT
(1) The number of required lower-income inclusionary units shall be
obtained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
(2) The number of required moderate-income inclusionary units shall be
obtained by the following formula:
Moderate-Income Inclusionary units = "base" x 0.05.
(f) The base for a new master plan or specific plan is determined by multiplying
the net developable acreage of the project site times the growth management control
point(s) for the project site's applicable f~d¢gfif4 general plan designation(s). If a
density bonus has been rit::-su~~~t.JyJisµm.,e~f'a-warded, the increased density is not
included when determining the.niirnber·or required inclusionary units relative to the total
project units.
(g) In determining the number of inclusionary units required pursuant to the
standards of this Section, any resulting decimal fraction shall be rounded to the next
largest laig.¢f integer. , ~.1.. , ~ -~ -~(' f' ..... -,::,l ....__-...,.. ,,0 /, , ..••• .....•• ~-/~ Ye / ~ (1:r:1...,,_;n~-l "'-' /)--=-.._ -<7--<.J "T" L"'J
21.85.0 . Re lations for Existin Master Plans and S ecific Plans. (Approved
the effective date of this Ordinance.)
his Chapter requires the following:
(1) Not less than fifteen percent (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; and
(2) Not less than five percent (5%) of all base residential units in any
existing master plan or specific plan community shall be set aside for sale to and shall be
affordable to moderate-income first-time home buyers.
(b) For those developments which are required to provide ten or more units
affordable to lower income households, at least ten percent of the lower income units
shall have three or more bedrooms.
(c) If the existing master plan or specific plan proposes a transfer of density
within the existing master plan or specific plan or a general plan change, then a formal
master plan or specific plan amendment shall be required.
(d) All existing master plans or specific plans proposed for major amendment,
pursuant to Section 21.38.120 of this Code, shall be required to incorporate into the text
ef the amended master plan or specific plan 4.9.~f an Inclusionary Housing Plan,
consistent with Section 21.85.070 (d) of this chapier~---.....
(e) Consistent with Section 21.85.050 of this Ghapter, certain classes of projects
or permits within an existing master plan or specific plan may satisfy their inclusionary
housing requirement for lower-inco_me and moderate-income households through the
payment to the City of an in-lieu fee or other in-lieu contributions.
(f) Consistent with Section 21.85.060 of this Chapter, certain classes of projects
or permits within an existing master plan or specific plan may satisfy their inclusionary
housing requirement through the payment of an inclusionary housing impact fee.
(g) For the purpose of determining the' number of required lower-income
inclusionary units and moderate-income inclusionary units ~:'~TI.i::~P.~::Jp.~~;:·~1-~~='9-~
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• • DRAFT
~~~~if!Klifi the followin standards shall a 1 : fffitff:,t:,:::::i!:!:::;:;:;:;;::::' g . pp y . .
(1) The number of reqwred lower-income mclusionary units shall be
obtaine~ by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
(2) The number of required moderate-income inciusionary units shall be
• obtained by the following formula:
Moderate-Income Irtclusionary units = "base" x 0.05.
(h) The base for an existing master plan or existing specific plan shall be equal
to the sum of the maximum nu~ber of dwelling units permitted under that existing
master plan or specific plan for all phases or individual developments within the existing
master plan or specific plan. The base for existing master plan or specific plan phases and
developments shall not be less than the maximum number of dwelling units permitted
for that phase or development in the existing master plan or specific plan, except for the
following specific development phases of an existing master plan or specific plan:
(1) 1 Where building permits were issued, as of the effective date of this
Ordinance, for the construction of new dwelling units approved in a master plan or
specific plan phase or. individual development area, the number of dwelling units
approved via said permits shall be subtracted from the base as otherwise determined for
that phase or individual development.
(2) Where a t~ntative map or final map (which establishes individual
residential lots or dwelling units) for any phase or individual development area of a
master plan or specific plan was approved, as the effective date of this Ordinance, and
the number of approved dwelling units is less than the maximum number of dwelling
units permitted in the master plan or specific plan, then the base shall be equal to the
number of dwelling units actually approved on the tentative map or final map for that
phase or individual development of the master plan or specific plan.
(3) For any phase or individual development area of a master plan or
specific plan for which a tentative map (which establishes individual residential lots or
dwelling units) has not been approved, as of the effective 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 individual development area.
(i) In determining the number of inclusionary units required pursuant to the
~ds of this Section, any resulting decimal fraction shall be rounded to the next
~teger.
(j) An. Affordable Housing Agreement and an Administrative Agreement for
Inclusionary Rental Units and/or a Sales Agreement for For-Sale Inclusionary Units shall
be made a condition of all future discretionary applications for development within the
master or specific plan area (i.e. tentative maps, parcel maps, planned unit developments
and site development plans). The Affordable Housing Agreement shall be recorded as a
deed restriction on those individual lots or units designated for the location of
inclusionary units. The Affordable Housing Agreement and the Administrative Agreement
for Inclusionary Rental Units and/or Sales Agreement for Inclusionary For-Sale Units shall
be consistent with Sectihns 21.85.180, 21.85.190 and 21.85.200 of this Chapter.
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BB::~
21.85.090. Regulations for Qualified Subdivisions Not Subject to Master Plan or
f ~his Chapter requires the following: ~) # ~-ft't!¥v-<-?L~ {!Jf I' ~l_). Not less than fift_een percent (15%) of all base residential units in any
"~ '_t'/4lo~p(k)~uahfied subd1vis1on shall be set aside for occupancy by and shall be affordable to lower-
, ;B,! ~ mcome households.
,
(b) Consistent with Section 21.85.050 of this Chapter, certain qualified
subdivisions may satisfy their inclusionary housing requirement for lower-income
households through the payment to the City of an in-lieu fee or other in-lieu
contributions.
(c) Consistent with Section 21.85.060 of this Chapter, certain qualified
subdivisions may satisfy their inclusionary housing requirement through the payment to
the City of an inclusionary housing impact fee.
(d) For the purpose of determining the number of required lower-income
inclusionary units the following standards shall apply:
(1) The number of required lower-income inclusionary units shall be
o brained by the following formula:
Lower-Income Inclusionary units = "base" x 0.15.
(e) For those developments which are required to provide ten or more units
-~ affordable to lower income households, at least ten percent of the lower income units
shall have three or more bedrooms.
(0 The base for a qualified subdivision is determined by multiplying the net
developable acreage of the project site times the growth management control point(s) for
the project site's applicable general plan designation(s). If a density bonus is awarded,
the increased density shall not be included when determining the number of required
inclusionary units relative to the total project units.
(g) In determining the number of inclusionary units required pursuant to the
standards of this Section, any resulting decimal fraction shall be rounded to the next
largest 'integer.
(h) An Affordable Housing Agreement and an Administrative Agreement for
Inclusionary Rental Units and/or a Sales Agreement for Inclusionary For-Sale Units shall
be made a condition of the discretionary applications for development of the qualified
subdivision (i.e. tentative maps, parcel maps: planned unit developments and site
development plans). The Affordable Housing Agreement shall be recorded as a deed
restriction on those individual lots or units designated for the location of inclusionary
units. The Affordable Housing Agreement and the Administrative Agreement for
Inclusionary Rental Units and/or Sales Agreement for Inclusionary For-Sale Units shall
be consistent with Sections 21.85.180, 21.85.190 and 21.85.200 of this Chapter.
'~ .1 ,;;J-·.ld l. .· i' ~, ...____] c,y-. ~ .··)
,;1.-0 t,L'-1 ,
5.100. Re lations for Mobile Home Parks.
This Chapter requires the following:
t°"'IJ\-· ,.~s-0 '4: . ,., .' (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
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• • DRAFT
affordable to lower-income households.
(b) The development of (6) six or fewer new mobile home pads in a mobile home
park IIU:IY meet their inclusionary housing requirement for lower-income households by
the payment to the City of an in-lieu fee or other in-lieu contributions, consistent with
Section 21.85.050 of this Chapter.
(c) For the purpose of determining the number of required lower-income
inclusionary units the following standards shall apply: •
(1) The number of required lower-income inclusionary units shall be
obtained by the following formula: •
Lower-Income Inclusionary units = "base" x 0.15. .
( d) For those developments which are required to provide ten or more units
affordable to lower income households, at least ten percent of the lower income units
shall have three or more bedrooms.
(e) The base for a mobile home development is determined by multiplying the net
developable acreage of the project site times the growth management control point(s) for
the project site's applicable general plan designation(s). If a densit;r bonus is awarded,
the increased density shall not be included when determining the number of required
inclusionary units relative to the total project units.
(f) In determining the number of inclusionary units required pursuant to the
standards of this Section, any resulting decimal fraction shall be rounded to the next
laFgcst l~&¢t integer.
(g) • An Affordable Housing Agreement and an Administrative Agreement for
Inclusionary Rental Units and/or Sales Agreement for [nclusionary For-Sale Units shall
be made a condition of the discr~tionary applications for development of the mobile
home park (i.e. tentative maps, residential mobile home park permits, or conditi~nal use
permits). The Affordable Housing Agreement shall be recorded as a deed restriction on
those individual pads or .units designated for the location of inclusionary units. The
Affordable Housing Agreement and the Administrative Agreement for Inclusionary Rental
Units and/or Sales Agreement for Inclusionary For-Sale Units shall be consistent with
Sections 21.85.180, 21.85.190 and 21.85.200 of this Chapter.
21.85.110. Combined Inclusionazy Housing Projects.
WheFe an applieant/ae1;elopeF pFoposes a eomeined. inelusionary housing pFojeet
to meet the Fe£tl:lirements of this Chaptef, tac applieant/d.CT;eloper and. a-ll other
de1,telopeFS in.1;olt;ed in the eomeined indusionary projeet shall eomply with the following
• • f L' • pF01/l:Sions o ttUs section:
(a) At the time of filing an::y aiscretionary applications for a residential
det.ielopment which proposes to satisfy their inelusionary hol:lsing re£tl:lirement through
a eomeined inelusionary hol:lsing projeet, the applieant(s) shall provide mdenee of
OW'ftership or control of the site pFoposed for the comeinee. inelusionary housing project
ana demonstFate that all e.et.ielof)eFs ha1+'C a suestantial interest in the project to ee
comeined and the respectit.ie pFojeet sites;
(e) Consistent 1i1Ath Section 21.8S .170 (a) (2) of this Chapter, applieations
foF the e.e:r.1elopment of eofft9in.ee. inclusionary housing projects shall ee fC£tl:lifee. to ee
processed eoncuffently w4th the otherwise require& prejeet d.C¥elopment applications,
(e) Aft Affordaele Housing Agreement and 8ft A<k&imstrati,,;c Agreement
for Incll:lsionary Rental Umts and-/or Sales •6igreement for Inelt:isionary For Sale UBits shall
L .:I .:I' • • & .:I' • I' • {' • 1 ue maue a eonu1twn or any uiseret1onary app 1cations ci,e. tentatY.te maps, parce1 maps,
-14-
• •
planned l.¼fti.t de,;elopments and site development plaBS) fur a residential der.•elopment B0 h • f:, h • • l • h • • \~Lue proposes to sans • t err me us10naryousing requrrement through a combined
inclusionary housing project. The Affordable Mousmg A-greement shall be recordee as a
deed restrietion on the site proposed for the eombined inclusioaary housiag projeet
and/or the inelusionary units. The Affordable Housing .'\greement and the Administrative
Agfeement fur Inelusionary R£ntal Units and/or Sales .A,g:Eeement for Inclusionary For
Sale Units shall be consistent with Sections 21.8S.180(d), 21.8S.190 and 21.8S.200 of
this Chapter.
(d) Once an applicant/de¥eloper has designated the location of the site and
the number of units on the site in¥ol¥ed in the combined inclusionary housing project,
no substitution of sites may be made 1,vithout prior approval of the final decision making
authority. In order to obtain approwl, the applicant must demonstrate, and the final
dedsion malcing authority shall find that:
(1) The applieant/dC¥eloper has lost eontrol of the site due to
circumstances beyond his/her control;
(2) The applicant/deYelopeF has made a good faith effort to
proceed with the combined inclusionary housing project as proposed;
(3) The applicant/de11eloper o:wns or contl'ols the ne1.v site
proposed as part of the combined inclusionary housing project; and
(1) The proposed substitution would be consistent :i:ivith the
General Plan.
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• •
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. .
• • ; ! DRAFT
21.85.120. Affordable Housing Standards.
(a) The required inclusionary units shall be constructed concurrent with market
rate u~ts unless both the City and developer agree within the Affordable Housing
Agreement to an alternative schedule for development.
(b) Inclusionary units shall remain restricted and affordable to the designated
income group for a minimum period of thirty (30) years.
(c) Inclusionary units should be built on-site and whenever reasonably possible,
be distributed throughout the project site.
Cd) In certain cases whefeJ;iiic6mbined:"indusi6ni.fj.Jhtiusi'.,.,-----=-=r--··fir~ebis'./_, __ 'iB .. ____ .,_,sed,
in whleh both the City and 'd'c:r.tdop~~ "cigf:e·e·:=···-1:he -i~chisi~~~-=·u@~'!~i·•·t~--pr~Vick~fon
a site separate from the site of the other market-rate units. However construction of the
inclusionary units is, in order of priority, limited to sites within the same Local Facilities
Management Zone or within the same City quadrant {ij~fiqjfiji.~/{ffi'<:":$ecti.6ri.
~1:,;9.0:P4S;,;(a):~(3);Jif,mi.§::;r;,~_ci,~) in which the market-rate units are··1ocatec:C·.·1nchi's·fonai=y
urut:s shaif"not: be ilernifrie·d-"io be constructed outside of the City quadrant v1hlch the
marlcet rate units are located, In the case of an individual development or phase witrun
a master plan or specific plan eomrnunity where it has beeft agreed that the inclusionary
units will ftot be built on site, the priority is for requifea inclus:ionery units to be
constructed on another site witrun the master plan or specific plan community. ~~ie
iili91fi~;&i
City may impose more stringent affordability standards for off-site developments than are
imposed when inclusionary units are developed on,r,sitefi]fi:¢!\iJl,ffigfi/:Jiitttn§I!/l.iffii(ed ·:t9.
&?~°1!--
(e) Inclusionary units restricted for lower-income households 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 (i.e.
freeways, bus lines) and that are compatible with adjacent land uses.
(f) With the approval of the City, the developer/applicant may reduce both the
size and amenities of the inclusionary units provided that all units conform to the
requirements of the applicable building and housing codes and there are not significant
identifiable differences visible from the exterior between the market-rate units and
inclusionary units. The size and design of the inclusionary units shall be reasonably
consistent or compatible with the design of the project and adjacent structures in terms
of appearance, materials and finished quality.
(g) Inclusionary projects shall provide a mix of affordable dwelling units (by
number of bedrooms) in response to affordable housing demand priorities of the City,
.whenever feasible.
21.85.130. Terms and Conditions of Rental Inclusionary Units.
For the purpose of establishing the requirements of inclusionary rental units, the
following shall apply:
., (1) Allowable housing expenses shall not exceed thirty percent (30%) of
the gross monthly income of target income levels;
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•
• • ·DRAFT
(2) Allowable housing expenses for unassisted rental units are calculated
frbm. the mgii cad (SOQ4, T/€fY 101l.t iaeem.e aad 80Q4' 10111 iaeom.e) l.fi:lfl1::Bl1!1:iJ.fflll :~,~:i!;,~:~~~,~~!;;,c;=::1:::::=;:m~~=~::u.=.J.;j r:~~11~S!i!&at1; • • ...... ,.,. .. ,.. ~ •••• •• ..... ,., .................... ,. • ❖ ........ : ......... • •••• • ... ··• ... ❖ •• ••••••• • • • ••• • •
• • (3) Allowable housing expenses for assisted rental uruts are calculated at
fi..fty percent (50%) and sixty percent (60%) of the County median income, adjusted for
household size, for very low-income households and low-income households, respectively;
(4) In the case of inclusionary rental units for lower-income households,
rental ratesW:r··1nsUui\alldw.Weffatfhtilfi~,:, are not to exceed the affordable allowable ~P . .,.,.,, .· .,.,,·,. ❖ ••• ,,.,,, .• ·• ,_.,,,,,,,,,,,,, •• ,,,· •••• ❖, •. ,.,, •• ,,,,,· •• ,, ··,,,.,,,,,,,,,,,,,,,,,,,,,,,,, ........... ,., ••••• ,.,·,·. ~
housing expenses for lower-income households and shall be established by the City and
revised annually on a city-wide basis. Total fft011e in easts ~~p.gfif.j for lower-income
tenants occupying the inclusionary units shall be limited to last' moe:th's rem plus a
eleanie: e.e o•sit e:ot to eKeeee. oe:e afiUihio.Uh'lflio.ttUiU~xc@@dttw6 month's rent· • g p . •:::,.,:, ... ❖• .. ::.: •• ·.,. ·•:,:.,:,.,:.::::.::,:( ::,.,:,.,:,.;:v····:•:•:•:•:"'❖·•:':':':•.::·.:·:: .. :,:;.;.'.:.:• ... /:::·.,:·:,:.::: ' (5) The same rental terms. arid conditions are applied to tenants of
inclusionary units as to all other tenants, and no other additional fees are charged;
(6) All rental units shall be occupied by their renters. Renting, leasing,
subleasing or subletting shall be allowed only if the total household income, including
income from all potential renters or lessees, qualifies under the requirements of this
Chapter;
(7) A notice of availability of rental inclusionary units shall be prepared
by the property owner and submitted to the City after final inspection of the project by
the City. The City, upon written notification from the owner that rental inclusionary units
are available, shall authorize the rental of the inclusionary units; and
(8) At any time a tenant occupying an inclusionary rental unit no longer
qualifies under the income· &t\:J:i§:ijijijftflJ]:!ijJf.# provisions specified above, that tenant may~
ij:ji§tj:;::ij,uit.~tiJ~Jfipf.i¢!.¥ then li'e····cha·rgecfinarket rate rent. If this occurs, any comparable
arid .. Eurreridy~vacarif in~tk@biat¢. unit shall then be designated as an inclusionary rental
unit, and the ownerZinan.iger shall immediately attempt to secure tenants in accordance
with this Section. 'if.no·····vacant units are available at such time, the next comparable
available vacartt unit shall be designated as the inclusionary rental unit.
(9) The e:Kistie:g property c>1.iffler shall ee required. to PB3/ aJ..l mo1f..ng
eKpenses for reloeatie:g hot1:sehole.s e.isplaeee. ffom. ie:elusioe:ary umts at the temuaatioe
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21.85.140. Terms and Conditions of For-Sale Inclusiomuy Units.
For the purpose of establishing the requirements of inclusionary for-sale units, the
following shall apply:
(1) Allowable housing expenses shall not exceed; thirty percent (30%) of
the gross monthly income for low and very low income households and thirty-five percent
(35%) • of the gross monthly income for moderate income households;
(2) Allowable housing expenses for unassisted for-sale units are calculated
from the high end (SO% 1ttery low ineome, 80% lo'II ineome and 120Q~ moderate
it;iiiiiirfi~~li~
(3) Allowable housing expenses for assisted for-sale units are calculated
at fifty percent (50%), seventy percent (70%) and one hundred ane ten percent (110%)
of the County median income, adjusted for household size, for very low-income
households, low-income households, and moderate-income households, respectively;
( 4) In the ease of indusionary for sale umts for moderate and lo1Ner
income households, sales prices are not to mcceed the affordable housing expenses for the
target income households and the maximum sales price shall be established by the City
and revised annually: on a city wide basis by City staff. Qhifth.~}'ij#pijl'{:~~:)&f'Wiri;
~f:Bbll!h11i~;~is,91:~8S~O,rO}III'
o •.❖:'u1e··au.Owa · e, ... OUSlP.g'·'·e'Xpense· (Set-·out::.=tn===· eCuOtt•","'"" ,,,,,. · ==· ii.t•·i).i:=·=.u1e'•''':f01:wt=recum.ng ~~,11~f~!!°l~fJ!~~~--FS!i;;1~1~
shall not exceed ten percent (10%) of the purchase price. •
(5) No charge or fee shall be imposed Riiit::AR~~~R~tijf{l!~~@!~pifigi,
~~9sijgy¢I[ on the purchaser of an inclusionary unit which ~t,:[;q~;:ft! is in addition to~ ... oi<more .. than, charges o#,i(ij$ imposed upon purchasers ofmarke'i~rate units;
(6) All for-sale ·foclusionary units shall be occupied by their purchasers.
Renting, leasing, subleasing or subletting shall be allowed only if the total household
income, including that from all potential renters or lessees, qualifies under the
requirements of this Chapter; and
(7) A notice of availability of for-sale inclusionary units shall be prepared
by the property owner and submitted to the City after final inspection of the project by
the City. The City, upon written notification from the owner that for-sale inclusionary .,, ~.J . units are available, shall authorize the sale of the inclusionary units to qualified
'f7"r~ th, purchasers.
{£) p ll> ~ lo. Resale Guidelines, Prices and Adjustments to Resale Prices for
Inclusionary Units.
(a) All future iirP@P~£fr-l.~ owners of for-sale inclusionary units shall be required
to enter into an Inclusfonary Housing Resale Agreement with the City pursuant to Section
21.85.210 of this Chapter.
(b) At any time the owner of an inclusionary for-sale unit, wishes to sell the
inclusionary unit, the owner shall notify the City of his/her intent to sell. A~fit which
time, the City shall establish the resale price in accordance with iJ!f@~~!~;~:P:dft~~!::i$
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I .,~ • '
i/ DRAFT
I · ... '"··-· ...
-~c~•~!:ea:!"!::t=i!!i~::::~e t:~!:~~~n;~ -~ligible l~~\·~~.
i.::=~~~v~:~T7
-· -,r~
•• (d). Tlie ·allowable· resale pnce will be set according to a formula established by
City Council resolution. In no case shall the maximum allowable sales price be lower than
the sum of the purchase price of the dwelling unit at the time of its last sale plus the
seller's closing costs and title insurance for the current sale~ or larger thaa the al-lowable
resale f)rice, as established b;r the City and re•rised anaualiy on a city wide hasis.
(e) The resale price of any inclusionary unit may be adjusted for substantial
structural or permanent fixed improvements and deterioration of the unit. No
improvements shall be considered substantial unless the aggregate, actual costs of the
improvements to the owner exceed one percent of the purchase price paid by the selling
owner for the dwelling unit.
(t) Within 60 days of the notification of availability of the inclusionary for-sale
unit, the City or its designee has the first right of refusal to buy the inclusionary unit or
assign its right to an eligible lower or moderate-income household, as certified by the
City's Housing and Redevelopment Department. Under this option, the City or its
designee would have an additional 90 days to close escrow. If the City or its designee
does not exercise its option to purchase the inclusionary unit within 60 days of
notification of availability of the inclusionary for-sale unit, the owner of this unit may sell
this unit to any eligible household at the resale price as determined by the City.
21.85.160. Incentives to o·ffset the Cost of Affordable Housing Development.
Costs v.ihieh ma;r be incurred b;r an af)f)licant/dev:elof)er as a result of the
ret}Uirements of this Chaf)ter may, but neeel not, be f)Brtiall;r or fully offset b;r meeath·es
pro¥ideel b;r the City, nor are these ret}Uirements contiBgent upoa the EFJailability of local,
state, or feeleral subsielies for afforelable housiBg · projects. L.i. , .... ,.,.,,,.,., :·=·=·=,=·=·=•:·=•·❖• ··=·=:::=·=·=:::;::, :=•:::-:❖'•:·= •• ,.,.,.,,::.,.
ilt':~--'~-
ntc:e:n ...
[~ ,",e,o1&~-~,
meet appliiiiaele ie'qiifremeftts of State" la111 as a res"\:1-lt of mefusionmy 1:lmtS are entitled
to density bonuses and/or other incentives in accordance with the' provisions of sueh
Stat~ law~ aBEl pursuant to the provisions of Chapter 21.86.00, et seq. of this Code. Any
.incentives provided by the City shall be set out w:ithin the Affordable Housing Agreement
pursuant to Section 21.85.180. Furthermore, developers are not precluded from utilizing
local, state or federal assistance, when available, to meet the affordability standards set
forth in Section 2.1.85.120.
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21.85.170. Inclusionazy Housing Project Application and Review Process.
All residential projects subject to this Chapter and required to satisfy their
inclusi9na.ry housing requirement through new construction of units, shall be required
to comply with the following application requirements:
4.fB, Application for On-site Inclusiona.ry Units: Inclusiona.ry units proposed
to be develope·d within the same project site requiring such units shall be included within
the project plans and shall be required to be processed under a 5$.ite El§evelopment pPlan
application in addition to otherwise required project development application(s) (i.e.,
tentative maps, parcel maps, planned unit developments, conditional use permits,
residential mobile home park permits and redevelopment permits). fi![§.i.t.fliW':~1.ppifi~~t
~1~~~,~:~~:t~~!$~!e~!~~~~~~k~~~~~1:=~~~:;;~~~~::·~;~?A~ ~~g:!diti~o~~
provision of financial incentives. If the application involves a request to the City for direct
financial incentives, then,any action by the Planning Commission on the application shall
be advisory only, and the City Council shall have the authority to make the final decision
on
th
e §!!~'.J?-~~1~~~~~~! ;~;~~;!!~:G.4.~illf!ia!!aW8!~~1m!L1~G~=
Separate devefopment application(s) (inch.idmg tn~::~t,iPiN!:tiIPf a site develcipmeni plan)
shall be reql:lired to be processed C(}.*~W!.~F!lY. for' 'inehisfonary units proposed to be
developed on a site separate from the pi.-o:fect' sfre of proposed marltet rate units requir..ng
the indusionary urn.ts. 'I;he de•;elopment applieation(s) for the indusionary units shall be
required to be proeessed eoneurrently ~vith the otherwise reql:lired projeet de·,elopment
applieation(s) (i.e., tentati:s;e maps, pareel maps, planned unit de11elopments, eonditional
use permits, residential mobile home park permits and Fede1relopment permits) for the
No additional applications, hearings or approvals shall be required, except as provided
herein with regard to the provision of financial incentives. If the §:U~)}Qly§,9:p~t::flin
application involves a request to the City for direct financial inceritives~ .. then··any adfori
by the Planning Commission on the application shall be advisory only, and the City
Council shall have the authority to make the final decision on the application ;1:::§fJ~I
requesteaiae.velo.pmenf'iiniuts. • • • •••••• • • •
····:·::•:•:• .. :•• ·::·:·:·::,.,:,:,.,:,:::::<:::::::::::::::::::!.°'c3)'''''':':s'\.ihicifiaE···::The completed application(s) shall include the following
information: ••••••
. 5tit A legal description of the total site proposed for development
of the inclusionary unit's including a statement of present ownership. and present and
proposed zoning;
~ A letter signed by the present owner stating what
incentives, if any, are b·eing requested from the City;
G.ti#t A detailed vicinity map showing the project location and
such details as the lociition of the nearest commercial retail, transit stop, potential
employment locations, park or recreation facilities or other social or community service
facilities.
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\ .. . .
·---··. 1 ~ Site plans, designating the total number of units proposed
on the site and the number of inclusionary units, and supporting plans per the application
submittal requirements.
•-L ~~:y~ :-::~~vec:.a
• {ffiffl.ifflt~Y.Utffitit!l:i~pro·~forma)' for the proposed project to justcy···,tntt"request.
······································:·:········ •••• Review: the PlaB:fllfl O.biimtmr::···:1]Je.i,i.llf]iient Director an or
his/her dtli~d staff shall evaluate ·~he'''''''·r~qIT~'s~!:,::~n~'.t"''':•:'fe~o';F:•:'''its fiseisgs ~ftG
reeommeridaifoils··based upon the following criteria:
• ~tit The inclusionary housing project helps • achieve the
City's low-cost housing goals as s~t forth in the Housing Element of the General Plan;
~e~~re:tbon,r,~et·:$.,tbd·~~~~ -)lltiiiitmb::~:·~•i!!!f!
;;~~~:~,:~:·c?~cono~lca11;1:=::bk~s~::;#MeP.9e.WF-9.f:ht.i¥\l,,;,,.,.,.,-:,:;:::f:;.,, mus e necessary
(;.'tfflt The inclusionary housing project shall not be materially
detrimental to public health, safety and welfare, nor injurious to property and/or
improvements within the projects' vicinity;
-~ The inclusionary housing project shall not result in an
overall development pattern that is incompatible with other structures and land uses in
the immediate vicinity; and
ijf¥1 The inclusionary housing project complies with the General
Plan, zoning and development poli<;ies of the City of Carlsbad.
U) ~ Preliminary application: An applicant/ developer proposing an
inclusionary housing project, shall submit a preliminary application prior to the submittal
of any formal applications for such housing development. The preliminary application
shall include the following information:
:b.H) A brief description of the proposal including the number of
inclusionary units propo.sed;
itiit The Zoning, General Plan designations and assessors parcel
.number(s) of the project site;
~(iii) A site plan, drawn to scale, which includes: building
footprints, driveway and parking layout, building elevations, existing contours and
proposed grading; and
lfw), A letter identifying what specific incentives (i.e.; standards
modifications,. density ... bonus or fee subsidies) are being requested of the City.
Justification for each incentive request should also be included.
Within 90 days of receipt of the preliminary application by the Planning Department, the
department shall provide to an applicant/ developer, a letter identifying project issues of
concern to staff, the procedures for compliance with this Chapter, 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.
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21.85.180. Inclusion of Affordable Housing Agreement as a Condition of
Development.
(a) Applicants/developers, subject to this Chapter, shall demonstrate compliance
with this Chapter by the preparation and approval of an Affordable Housing Agreement.
AJ.:t ~ Affordable Housing Agreement shall be submitted by the applicant to the City,i
1-lie',:~~'ii§.f:;~t?.ffit!i~~i:;~\i~J.~'di.,i;;!:Y!!W-'=~ appi07/E!d by the Planning Director
a:id Director of Housfog· and Redevefoprneiii~ .. who· shall formulate a recommendation and
refer the matter to the Community Development Director or his designee for final
;tl;;~1,¥.;~~~=~~~~~,1u;~;,~2:li;~?~!r~!i!:il~~!ID.f.~~~::•·;;:~~~
conditidnsithe.reffom=:.filed/an&rci:6r.de.li as a deed restrictfon ·011· tho·sei"iridividiial lots· ·or ~nfr~·'··''~t'\i • pr8°p'~ny•'• ~hich•'''•~'ie'···•,ae;i~ated for the location of affordable unitsift .:Tlre.
~ll~~~1m;~~flt.~1l.l~~;#.If-l':~~,a~~rc:v~ ::;~ih:r~~~~~a~r~:;~~~a~~~
application. The Affordable Housing Agreement shall be binding to all future owners and
successors in interest.
(b) An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through new construction of inclusionary units, either on-
site, off-site or through a combined inclusionary housing project, shall be required to
include ~st&.blijffiJI?,µt'·.,ti¢t:::p¢j=:,:Jiinite4~ the following:
.......... •,Ti). The nuinher··a1o;A~er and moderate income hii:\~i~#.litry dwelling units proposed; ................... .
(2) The unit size(s) (square footage) and the number of bedrooms per
dwelling unit;
units;
(3) The proposed location of the lo7.ver and moderate income inclusionary
(4) Tenure of affordability for inclusionary units (30 year minimum);
(5) Schedule for production of dwelling units;
(6) Incentives provided by the City;
(7) Terms and conditions of rental inclusionary units as stipulated in
Section 21.85.130; and
(8) Terms and conditions of for-sale inclusionary units as stipulated in
Section 21.85.140. f:JJ ('----------;(r,;cn-)-iAnr.:;~ Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through payment to the City of ether ~ in-lieu
contributions iffit.!Itfili::f~e.]riQi.µ¢.§ (i.e. land dedication) shall be required to hidude the following: ............ ·.················ ....... ·.··• .. · .. ·.· .. ··· ... ·.·.......... . ........... · ..
(1) The method, schedule and value of total in-lieu contributions; and
(2) ,~i:t.i&t~ati&ff;:Jif +he otherwise required per market-rate dwelling
unit ¥.t-1~¥:P fees (i.e·:· ia···u;;u··reesY .. 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.
21.85.190. Administrative Agreement for Inclusionary Rental Units.
(a) All developers of residential projects, subject to an Affordable Housing
Agreement, pursuant to Section 21.85.180 (b) of this Chapter, and proposing to fulfill
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their inclusionary requirements through the development of rental illtlts, shall ee re~eii
to sabmi:t ~t~\\ffi.~§ an Administrative Agreement for Inclusionary Rental Units te ~
the City. Tne···1~I~fUH.e Administrative Agreement shall be reviewed anEi approir;:e,foy
the Planning Director and Director of Housing and Redevelopment, and eemplet:ed ~
!~~:::~:::1-;g~::!~W~~:]~itm!:!~ffil! prior to the issuance of building permits for such
lots or units. The Administrative Agreement for. Inclusionary Rental Units shall be binding
to all future owners.
(b) Per Enelusionary R-ental Units, the Administrative Agreement ~§.~:~-,~ 8.~iitilUJ.ruti shall be required to include the following: ••••••••••••• .. •••••••••••••••••••••••••••••
·········'·········· ••••••••• , ••••• , (1) Tenant income qualification process;
(2) Rent prices relative to the .affordability standards of this Chapter, and
procedure for adjustment, consistent with Section 21.85.130; ,,
(3) Program for filling vacancies, consistent with Section 21.85.130;
(4) Reporting/monitoring program for complying with the maintenance
of the designated units regarding income qualification documentation and rent price
documentation;
(5) The procedures for compliance with this Chapter in the event that an
inclusionary unit or inclusionary housing project is. destroyed or condemnedtflt:!j}:Jfflfffl. ~---$~-e~i~; and -¼¼W••·······¼•ww•
(6) A long-term maintenance plan for the units.
21.85.200. Sales Agreement for Inclusionacy: For-Sale Units.
(a) All developers of residential projects subject to an Affordable Housing
Agreement, pursuant to Section 21.85.170 (b) of this Chapter, and proposing to fulfill
their inclusionary requirements through the development of for-sale units, shall he
re<tlJired to submit to the City !tit.¢.itffito. a Sales Agreement for Inclusionary For-Sale
Units fflffi(ffl,"ijf\lil]. The tf'tfiffi{'.Qf)@flj Sales Agreement for Inclusionary For-Sale Units
shall be···=·;eviewecr··anel ap~f.O\;ea=·=·t;y'•:•a1e Planning Director and Director of Housing and
Redevelo ment and §i •• , .. :···:··:edltf'\ialUr'·':'.'iffie.i eom leteel rior to the issuance of buildin P , ,,,, .... m,.,,,,,,,,,,,,,,, ... ,,.,*=·=,,,.,,,,,,,,,,,,,,,1,,,,,,,.,,,,,.,.,,,,,,,,,,,,,· ➔ P . g
permits for such lots or units. The Sales Agreement for Inclusionary For-Sale Units shall
be binding to all future owners.
(b) Tf.ielS.ili'i!U\gfeeiif!.ni For Inclusionary For-Sale Units, the Sales Agi'eement
shall inelude:•:•.~ia'illsli~lliiiffa{BiHJt¥flifffi.tedlt6. the following: •
(1) Owner income qualification process;
(2) Sales prices relative to the affordability standards of this Chapter, and
procedure for adjustment;
(3) Restrictions and enforcement mechanisms for the sale or resale of
units, consistent with Sections 21.85.140, 21.85.150 and 21.85\210;
( 4) A program for marketing available units, to include, a loan financing
package with a low down payment requirement, to enable qualified households to
purchase the restricted units;
(5) The procedures for compliance with this Chapter in the event that an
inclusionary unit or inclusionary housing project is destroyed or condemned, a
condominium association· is liquidated ~i a notice of default is recorded~I§l:1iil11§\\m~IJ9. lo.ngetfq\!alifies.d>.:g1::reasb.n::,.of:::eliange.i4hou~eH&li:;;:ih¢ntn6:f:otdsize. • ..................................................... -............................ .
21.85.210. Inclusionacy: Housing Resale Agreement.
(a) All buyers of for-sale inclusionary units shall be Pe(1uirea tc;> enter into an
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Inclusionary Housing Resale Agreement with the City's Housing Authority pri~~ t~ •
purchasing the unit or property. The City's Housing A-uthority shall be a. thlfd party to
this agreement. The Resale Agreement shall specify that the subject unit or property may
not be transferred through resale without prior approval of the City's Housing Authority.
--~~i restriction on the subject property or unit. •
21.85.220. Eligibility Requirements and Tenant Selection.
(a) Only households meeting the standards for designated lower and moderate
income groups as defined in Section 21.85.020 shall be eligible to occupy inclusionary
units.
(b) The managing/operating agency of rental and for-sale inclusionary units shall
review the assets and income of prospective renters and purchasers of inclusionary units
and shall inform them of the requirements of this program.
(c) The following priority shall be used for selecting tenants and purchasers of
inclusionary units reserved for very low-income households:
(1) Very low-income Carlsbad resident/worker households without Section
8 certificates; and
(2) Very low-income households.
(d) The following priority shall be used for selecting tenants and purchasers of
inclusionary units reserved for low-income households:
(1) Low-income Carlsbad resident/worker households;
(2) Low-income households.
(e) The following priority shall be used for selecting purchasers of inclusionary
units reserved for moderate-income households:
(1) Moderate-income Carlsbad resident/worker households;
(2) Moderate-income households.
(f) In addition, priority shall be given to households of the following sizes in
relationship to the number of bedrooms available in each inclusionary dwelling unit:
No. of Bedrooms Households With Households With
Available First Priority Second Priority
Studio 2 persons 1 person
1 bedroom 2 persons 1 person
2 bedrooms 4 persons 3 persons or less
3 bedrooms 6 persons 3 persons or less
(g) The developer shall advertise the availability of the affordable unit to the
general public in accordance with the Developer's marketing plan.
21.85.230. Management and Monitoring.
(a) Inclusionary rental units shall be managed/ operated by the owner of the units
?r his or her agent. Each owner of inclusionary rental units shall submit an annual report
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• I
\. :..:::: -:~ -~ ·----~ .. -=-.: ... -•
to the City identifying which units are inclusionary units, the monthly rent, vacancy
information for each inclusionary rental unit for the prior year, monthly income for
tenants of each inclusionary rental unit throughout the prior year, and other information
as required by the City, while ensuring the privacy of the tenant. The annual report shall
be due on the anniversary of the initial certificate of occupancy release. date.
(b) The adm:imstratioa aae. -operatioa of iBefl:lsioaary for sale l:lfllts shell be
performee. b;r the City's Housiag Authority or its appoiatee. e.esigaee,
(el)) The owner of the inclusionary rental units shall maintain all project related
records on file. The City shall have the right to inspect these. records at any reasonable
time.
(~) The City shall be entitled to have an independent audit of the owner's
records c·onducted once per year. Such audit shall be at the City's expense unless a
violation of tlus Chapter is discovered. The City shall give at least 48 hours notice prior
to conducting an audit.
(~) No building permit shall be issued, hor 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 accord~nce with this Chapter.
• ... ······.:::• ••,•.·· •'•'' ... '❖, •❖····; •. 'ti.;··
···::::
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EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption;
and the City Clerk shall certify to the adoption of this ordinance and cause it to be
published at least once in the Carlsbad Journal within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council
on the __ day of ____ _, 19 _, and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad on the __ day of ___ _, 19 __ , by the following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY
RONALD R. BALL, City Attorney
CLAUDE A. LEWIS, Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
Revised: 7/28/92
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