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HomeMy WebLinkAbout2010-10-05; City Council; CS-109; MODIFICATIONS TO INCLUSIONARY HOUSING REQUIREMENTS...EXHIBIT 1 1 ORDINANCE NO. CS-109 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A ZONE CODE 3 AMENDMENT TO MAKE MINOR MODIFICATIONS TO THE INCLUSIONARY HOUSING REQUIREMENTS OF ZONING 4 ORDINANCE CHAPTER 21.85 CASE NAME: INCLUSIONARY HOUSING 5 CASE NO.: ZCA10-03 6 The City Council of the City of Carlsbad, California, does ordain as follows: 7 Section I: That the list of sections at the beginning of Chapter 21.85 is amended to read 8 as follows: 9 Sections: 21.85.010 Purpose and intent. 10 21.85.020 Definitions. 21.85.030 Inclusionary housing requirement. 11 21.85.035 New master plans or specific plans. 21.85.040 Affordable housing standards. 12 21.85.050 Calculating the required number of inclusionary units. 21.85.060 Inclusionary credit adjustment. 21.85.070 Alternatives to construction of inclusionary units. 21.85.080 Combined inclusionary housing projects. 21.85.090 Creation of inclusionary units not required. 21.85.100 Offsets to the cost of affordable housing development. 15 21.85.110ln-lieu fees. 21.85.120 Collection of fees. 21.85.130 Preliminary project application and review process. 21.85.140 Affordable housing agreement as a condition of development. 17 21.85.145 Agreement processing fee 21.85.150 Agreement amendments. ° 21.85.155 Expiration of affordability tenure. 21.85.160 Pre-existing approvals. iy 21.85.170 Enforcement. 21.85.180 Savings clause. 21.85.190Severability. 21 Section II: That Section 21.85.010 A. 1. (Purpose and Intent) is amended as follows: 22 1. Require that a minimum of fifteen percent of all approved ownership and qualifying rental ~<* units as set forth in Section 21.85.030 A be restricted to and affordable to lower-income households; subject to adjustment based on the granting of an inclusionary credit; 24 Section III: That Section 21.85.020 (Definitions) is amended as follows: 21.85.020 Definitions. Whenever the following terms are used in this chapter, they shall have the meaning established 27 by this section: 28 1 A. "Affordable housing" means housing for which the allowable housing expenses paid by a qualifying household shall not exceed a specified fraction of the county median 2 income, adjusted for household size, as follows: 1. Extremely low-income, rental or ownership units: the product of thirty percent 3 times thirty percent of the county median income, adjusted for household size; 2. Very low-income, rental and ownership units: the product of thirty percent times 4 fifty percent of the county median income, adjusted for household size; 3. Low-income, ownership units: the product of thirty percent times eighty percent of 5 the county median income, adjusted for household size; and 4. Low-income, rental units: the product of thirty percent times seventy percent of 6 the county median income, adjusted for household size. 7 B. "Affordable housing agreement" means a legally binding agreement between a developer and the city to ensure that the inclusionary requirements of this chapter are satisfied. 8 The agreement establishes, among other things, the number of required inclusionary units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production 9 schedule. 1° C. "Allowable housing expense" means the total monthly or annual recurring expenses required of a household to obtain shelter. For an ownership unit, allowable housing 11 expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners' association dues 12 and a reasonable allowance for utilities as defined by the Code of Federal Regulations (24CFR982). For a rental unit, allowable housing expenses include rent and a utility allowance as established and adopted by the city of Carlsbad housing authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. D. "Affordable housing policy team" shall consist of the community development 16 director, planning director, housing and redevelopment director, administrative services director/finance director and a representative of the city attorney's office. E. "Combined inclusionary housing project" means separate residential development sites which are linked by a contractual relationship such that some or all of the inclusionary units which are associated with one development site are produced and operated at a separate development site or sites. 20 F. "Conversion" means the change of status of a dwelling unit from an ownership unit to a rental unit or vice versa and/or a market-rate unit to a unit affordable to lower-income households. 79 G. "Development revision" means revisions to development permits, entitlements, and/or related maps. 24 H. "Density bonus" shall have the same meaning as defined in Section 21.86.020(A) (7) of this title. 25 I. "Extremely low-income household" means those households whose gross income is equal to or less than thirty percent of the median income for San Diego County as determined by the U.S. Department of Housing and Urban Development. 27 ,// 28 -2- 1 J. "Financial assistance" means assistance to include, but not be limited to, the subsidization of fees, infrastructure, land costs, or construction costs, the use of redevelopment 2 set-aside funds, community development block grant (CDBG) funds, or the provision of other direct financial aid in the form of cash transfer payments or other monetary compensation, by 3 the city of Carlsbad. 4 K. "Growth management control point" shall have the same meaning as provided in Chapter 21.90, Section 21.90.045 of this title. 5 L. "Incentives or concessions" shall have the same meaning as defined in Section 6 21.86.020(A)(12)ofthistitle. 7 M. "Inclusionary credit" means a reduction in the inclusionary housing requirement granted in return for the provision of certain desired types of affordable housing or related 8 amenities as determined by the city council. 9 N. "Inclusionary housing project" means a new residential development or conversion of existing residential buildings which has at least fifteen percent of the total units 10 reserved and made affordable to lower-income households as required by this chapter. O. "Inclusionary unit" means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to lower-income households, as required by this 12 chapter. p. "Income" means any monetary benefits that qualify as income in accordance with the criteria and procedures used by the city of Carlsbad housing and redevelopment department 14 for the acceptance of applications and recertifications for the tenant based rental assistance program, or its successor. Q. "Low-income household" means those households whose gross income is more 16 than fifty percent but does not exceed eighty percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. R. "Lower-income household" means low-income, very low-income and extremely ° low-income households, whose gross income does not exceed eighty percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 20 S. "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. 22 T. "Offsets" means concessions or assistance to include, but not be limited to, direct ~T financial assistance, density increases, standards modifications or any other financial, land use, or regulatory concession which would result in an identifiable cost reduction enabling the 24 provision of affordable housing. 25 U. "Ownership Unit" means a residential unit with a condominium or other subdivision map allowing units to be sold individually. V. "Rental Unit" means a residential unit with no condominium or other subdivision 27 map allowing units to be sold individually. 28 -3- 1 W. "Residential development" means any new residential construction of ownership or rental units; or development revisions, including those with and without a master plan or 2 specific plan, planned unit developments, site development plans, mobile home developments and conversions of apartments to condominiums, as well as dwelling units for which the cost of 3 shelter is included in a recurring payment for expenses, whether or not an initial lump sum fee is also required. 4 X. "Target income level" means the income standards for extremely low, very low 5 and low-income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban Development, and adjusted for family size. 6 Y. "Total residential units" means the total units approved by the final decision- 7 making authority. Total residential units are composed of both market-rate units and inclusionary units. Q Z. "Very low-income household" means a household earning a gross income equal 9 to fifty percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. Section IV: That Section 21.85.030 A (Inclusionary Housing Requirements) is amended as follows: 12 A. This chapter shall apply to all residential market-rate dwelling units resulting from , T new construction of ownership units, including the conversion of apartments to condominiums and to new construction of rental units where the developer receives direct financial assistance, ,4 offsets, or any incentive of the type specified in density bonus law pursuant to the provisions of Chapter 21.86 of this code, and the developer agrees by contract to limit rents for below market- 15 rate rental units. Any developer not receiving direct financial assistance, offsets, or other incentives may voluntarily agree to provide inclusionary rental units. Section V: That Section 21.85.030 B (Inclusionary Housing Requirements) is amended 17 as follows: 18 B. For any residential development or development revision of seven or more units ,Q as set forth in Section 21.85.030 A, not less than fifteen percent of the total units approved shall be constructed and restricted both as to occupancy and affordability to lower-income 2Q households. Section VI: That Section 21.85.030 D (Inclusionary Housing Requirement) is amended as follows: D. This chapter shall not apply to the following: 1. Existing residences which are altered, improved, restored, repaired, expanded or 24 extended, provided that the number of units is not increased, except that this chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums; 25 2. Conversion of a mobile home park pursuant to Section 21.37.120 of the code; 3. The construction of a new residential structure which replaces a residential 26 structure that was destroyed or demolished within two years prior to the application for a building permit for the new residential structure, provided that the number of residential units is 27 not increased from the number of residential units of the previously destroyed or demolished residential structure; 28 -4- 1 4. Any residential unit which is accessory as defined in Section 21.04.020 of this code; 2 5. Second dwelling units not constructed to fulfill inclusionary housing requirements and developed in accordance with Section 21.10.030 of this code; 3 6. Any project or portion of a project which is a commercial living unit as defined in Section 21.04.093 of this code; 4 7. Any rental unit where the developer does not obtain direct financial assistance, offset, or any other incentive or concession of the type specified in density bonus law, although 5 a mandatory density bonus may have been applied pursuant to the provisions of Chapter 21.86 of this code; and 6 8. Those residential units which have obtained affordable housing approvals prior to the effective date of the ordinance codified in this chapter, as set forth in Section 21.85.160 of 7 this chapter. 8 Section VII: That Section 21.85.040 A (Affordable Housing Standards) is amended as 9 follows: 10 A. All qualifying residential developments pursuant to Section 21.85.030 A are subject to and must satisfy the inclusionary housing requirements of this chapter, 11 notwithstanding a developer's request to process a residential development under other program requirements, laws or regulations, including but not limited to Chapter 21.86 12 (Residential Density Bonus) of this code. If an applicant seeks to construct affordable housing to qualify for a density bonus in accordance with the provisions of Chapter 21.86 (Residential 13 Density Bonus), those affordable dwelling units that qualify a residential development for a density bonus are in addition to, and do not count toward satisfying, the inclusionary housing 14 requirements of this chapter. 15 Section VIII: That Section 21.85.040 D (Affordable Housing Standards) is amended as 16 follows: 17 D. Inclusionary rental units shall remain restricted and affordable to the designated income group for fifty-five years. In addition to the income of a targeted group, limitations on 18 assets may also be used as a factor in determining eligibility for rental or ownership units. Notwithstanding anything to the contrary in this chapter, no inclusionary unit shall be rented for 19 an amount which exceeds ninety percent of the actual rent charged for a comparable market unit in the same development, if any. 20 Section IX: That Section 21.85.040 E (Affordable Housing Standards) is amended as 21 follows: 22 E. After the initial sale of the inclusionary ownership units at a price affordable to the 23 target income level group, inclusionary ownership units shall remain affordable to subsequent income eligible buyers pursuant to a resale restriction with a term of thirty years or ownership 24 units may be sold at a market price to other than targeted households provided that the sale shall result in the recapture by the city or its designee of a financial interest in the units equal to 25 the amount of subsidy necessary to make the unit affordable to the designated income group and a proportionate share of any appreciation. Funds recaptured by the city shall be used in 26 assisting other eligible households with home purchases at affordable prices. To the extent possible, projects using ownership units to satisfy inclusionary requirements shall be designed 27 to be compatible with conventional mortgage financing programs including secondary market requirements. 28 -5- 1 Section X: That Section 21.85.070 A (Alternatives to construction of inclusionary units) 2 is amended as follows: 3 A. The city council may approve alternatives to the construction of new inclusionary units where the proposed alternative supports specific housing element policies and goals and 4 assists the city in meeting its state housing requirements. Such determination shall be based on findings that new construction would be infeasible or present unreasonable hardship in light of 5 such factors as project size, site constraints, market competition, price and product type disparity, developer capability, and financial subsidies available. Alternatives may include, but 6 not be limited to, acquisition and rehabilitation of affordable units, conversion of existing market- rate units to affordable units, construction of special needs housing projects or programs 7 (shelters, transitional housing, etc.), and the construction of second dwelling units. 8 Section XI: That Section 21.85.110 A (In-lieu fees) is amended as follows: 9 A. For any qualifying residential development or development revision pursuant to Section 21.85.030 A. of less than seven units, the inclusionary requirements may be satisfied 10 through the payment to the city of an in-lieu fee. 11 Section XII: That Section 21.85.110 B (In-lieu fees) is amended as follows: 12 B. The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen percent of the subsidy needed to make affordable to a lower-income household one newly 13 constructed, typical attached-housing unit. This subsidy shall be based upon the city council's determination of the average subsidy that would be required to make affordable typical, new 14 two-bedroom/one bath and three-bedroom/two-bath ownership units and rental units, each with an assumed affordability tenure of at least fifty-five years. Section XIII: That Section 21.85.170 A (Enforcement) is amended as follows:16 A. The provisions of this chapter shall apply to all developers and their agents, ' successors and assigns proposing a qualifying residential development governed by this chapter pursuant to Section 21.85.030 A. No building permit or occupancy permit shall be issued, nor any entitlement granted, for a project which is not exempt and does not meet the requirements of this chapter. All inclusionary units shall be rented or owned in accordance with this chapter. 70 Section XIV: That the title only of Section 21.85.190 (Separability of provisions) is 21 amended as follows: 22 21.85.190 Severability. 23 /// 24 /// 25 /// 26 /// 27 /,/ 28 -6- '/ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 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 a publication of general circulation in the City of Carlsbad within fifteen days after its adoption. Notwithstanding the preceding, this ordinance shall not be effective until approved by the California Coastal Commission. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 28th day of September 2010, and thereafter. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 5th day of October 2010, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. ABSTAIN: None. APPROVED AS TO FORM AND LEGALITY RONATD R. BALL, City Attor M. W0OD, City Clerk 0 (SEAL) -7- CERTIFICATION OF POSTING AND PUBLICATION OF ORDINANCE NO. CS-109 Section 36933 (c) of the Government Code provides that a summary of an Ordinance may be published in lieu of the full text, providing the summary is published and a certified copy of the full text is posted in the Office of the City Clerk at least five days prior to the Council Meeting at which the Ordinance is adopted. Section 36933 (c) also requires that, within 15 days of the adoption of the Ordinance, a summary be published, showing the vote for and against the Ordinance, and a certified copy of the Ordinance be posted in the Office of the City Clerk. Therefore, in accordance with Section 36933 (c) of the Government Code, I do hereby certify as follows: 1.) That the adoption of Ordinance No. CS-109 is to be considered at the City Council Meeting to be held on the 28th day of September, 2010 2.) That a certified copy of the full text of Ordinance No. CS-109 was posted in the City Clerk's Office on the 22nd day of September 2010. 3.) That a summary of the Ordinance was published in the North County Times, on the 22nd day of September, 2010. DONNA HERATY, Depu -City Clerk Dated: September 22, 010 (Seal) Certification of Posting and Publication of Ordinance No. CS-109 Page 2 4.) That Ordinance No. CS-109 was adopted on the 28th day of September 2010. 5.) That a certified copy of the full text of Ordinance No.CS-109, showing the names of those who voted in favor and against the Ordinance was posted in the City Clerk's Office on the 1st day of October 2010. 6.) That a summary of the Ordinance, showing the names of those who voted in favor of and against the Ordinance was published in the Coast News, on the 1st day of October 2010. DONNA HERATY, Depu -City Clerk Dated: October 1, 2010 (Seal)