HomeMy WebLinkAbout1993-03-23; City Council; 12129; Inclusionary Housing ProgramCIT\ 3F CARLSBAD - AGENL ‘BILL
\Bk /a#J~Y TITLE:
ATG. 3+3-c/3 INCLUSIONARY HOUSING PROGRAM
PLN ZCA 91-6 - CITY OF CARLSBAD
IEPT.
IECOMMENDED ACTION:
If Council concurs, both the Planning Commission and staff are recommending that the City Council ADOPT Resolution No. c/3--&2 APPROVING the Negative Declaration issued by the Planning Director; and INTRODUCE Ordinance No. t'?';-a'3+ , APPROVING ZCA 91-6.
On November 18, 1992 the Planning Commission conducted a public hearing and recommended approval (4-3; HaM, Schramm, Welshons) of a Zone Code Amendment (ZCA 91-6) to the Carlsbad Municipal Code (Title
21, Zoning) to add Section 21.85, et seq., establishing a Citywide Inclusionary Housing Program.
The Inclusionary Housing Program is one of 33 housing programs included within the City's Housing Element (adopted October 22, 1991), which the City has committed to implement for purposes of enabling the achievement of it's lower and moderate income housing objectives.
The Inclusionary Housing Program establishes the following mandates:
1. 15% of all future residential units within the City shall be restricted and affordable to lower-income households;
2. 5% of all future residential units in any Master Plan or Specific Plan shall be restricted and affordable to moderate- income first-time homebuyers;
3. All market-rate residential units (for-sale or rental) resulting from new construction shall be subject to inclusionary housing requirements. The specific inclusionary requirements for various classes of residential projects are generally as follows:
a. Construct Inclusionary Units - Any residential project of 7 or more dwelling units, approved after the effective date of the Ordinance.
b. Pay inclusionary In-Lieu Fees - Any residential project of 6 units or less, approved after the effective date of this Ordinance.
C. Pay Inclusionary' Impact Fees - Any residential project approved prior to the effective date of this Ordinance and for which building permits have not been issued.
4. All inclusionary units shall be deed-restricted to be affordable for a minimum tenure of 30 years; and
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5. For all residential projects required to satisfy inclusionary requirements through the construction of affordable units, the project developer shall be required to enter into an Affordable Housing Agreement with the City. The Agreement would establish all such matters as will be necessary to ensure that the inclusionary requirements of the specific residential project are satisfied.
The draft Inclusionary Ordinancehas undergone extensive public review including; a Planning CommissionHousing Ordinance Workshop (7/15/92), and 3 Planning Commission public hearings (8/19/92, 10/28/92 and 11/18/92). In addition, staff has responded to letters of comment on the draft Ordinance (See Exhibit 8) and met individually with members of the public and development community who provided testimony at the public hearings for the draft Ordinance.
The Draft Inclusionary Ordinance has been significantly revised in response to the above-mentioned public input. A summary of these revisions are contained in an attached memorandum to the City Manager (Exhibit 4). Also, the Planning Commission did recommend approval of several additional revisions to the Draft Inclusionary Ordinance as follows:
1. Allowing a property to transfer it's inclusionary units to another property in a different quadrant, provided that both properties abut a road, which forms the quadrant boundary, and the two properties would be contiguous, except for the presence of the road.
2. Providing the City the first right of refusal to purchase an inclusionary rental project, at an appraised value with rent restrictions in place, at the termination of the minimum 30-year tenure of affordability.
These revisions have been incorporated into the draft Inclusionary Ordinance.
BNVIRONMENTAL REVIEW
On November 18, 1992, The Planning Commission recommended approval of the Negative Declaration issued by the Planning Director on June 25, 1992.
The implementation of the Inclusionary Ordinance will result in a commitment of City staff resources. Specifically, there will be administrative (staff) costs to the City for providing a number of recurring services, including, but not limited to: (1) administering affordable housing and resale agreements: (2) establishing rental rates and sales prices for units; and (3) qualifying eligible households. The Inclusionary Ordinance provides for an administrative fee to be established to pay for these City services. Staff is recommending that a portion of future Inclusionary Housing In-Lieu
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Fees and Impact Fees which are deposited within the City's Housing Trust Fund be allocated for Inclusionary Housing administrative services. Based upon a review of other Housing Trust Funds, staff concludes that administrative fees are a reasonable use of Housing Trust Funds.
For specifics of the proposed Inclusionary Housing In-Lieu Fee and Impact Fee (including recommended dollar values of the fees and methodologies for calculating) please see separate agenda bills and resolutions included in this City Council agenda package.
BXBIBITS
1. 2. 3. 4.
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City Council Resolution No. 93-G* City Council Ordinance No. fiC-%?% Planning Commission Resolution Nos. 3424 and 3425 Memorandum from Planning Director to City Manager Documenting Revisions to Inclusionary Ordinance, dated December 11, 1992. Memorandum from Housing and Redevelopment Director to City Manager Regarding Affordability Tenure, dated December 10, 1992. Planning Commission Staff Reports, dated August 19, 1992; October 28, 1992 and November 18, 1992 Excerpts of Planning Commission Minutes, dated August 19, 1992, October 28, 1992, November 4, 1992 and November 18, 1992. Attachment ltBl# - Letters of Comment on the Inclusionary Ordinance and Staff Responses. Memorandum from the Planning Director to the City Manager regarding proposed
revisions to the Inclusionary Ordinance, and the Density Increase General Plan
Amendment based on City Council direction, dated April 5, 1993.
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4 EXHIBIT 1
RBSOLBTION NO. 93-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A NEGATIVE DECLARATION FOR A ZONE CODE AMENDMENT TO AMEND TITLE 21 OF THE CARLSBAD MUNICIPAL CODE, TO ESTABLISH A CITYWIDE INCLUSIONARY HOUSING PROGRAM THROUGH THE ADDITION OF NEW CHAPTER 21.85. CASE NAME: INCLUSIONARY.HOUSING ORDINANCE SE CA 0.
WHEREAS, pursuant to the provisions of the Municipal
Code, the Planning Commission did, on August 19, 1992, October 28,
1992 and November 18, 1992, hold duly noticed public hearings as
prescribed by law to consider said request.; and
WHEREAS, at said public hearings, upon hearing and
considering all testimony and arguments, examining the initial
study, analyzing the information submitted by staff, and
considering any written comments received, the Planning Commission
considered all factors relating to the Negative Declaration; and
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City
Council of the City of Carlsbad as follows:
1. That the above recitations are true and correct.
2. That the findings and conditions of Planning
Commission Resolution No. 3424, on file with the City Clerk and
incorporated herein by reference constitute the findings of the
City Council in this matter and that the.Negative Declaration is
hereby approved.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, on the
13th day of APRIL I 1993, by the following vote, to
wit:
AYES: Council Members Lewis, Stanton, Nygaard, Finnila
NOES: None
ABSENT: Council Member Ku
ATTEST: I
ALETHA L. RAUTENKRANZ, City Cle%k
(SEAL)
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EXHl0IT 2
oR.D~iiN~NO. k-232
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
IN SPECIFIED CIRCUMSTANCES.
LICANT: CITY OF CARLSBAD
ovemment Code Section 65588(b) requires local jurisdictions to
mevise their Housin ments every five years; and
f Carlsbad has revised its Housing Element for the period July
1991 through June 1996;
WHEREAS, Governme de Section 65584(a) requires localities to address the
Zegional Share housing needs for ons of all income levels in their Housing Elements;
tnd
WHEREAS, the City’s Regional e needs are 2,509 Lower-income units and
1,317 moderate-income units of a projected 73 total dwelling units needed over a five
rear period; and
WHEREAS, based upon the needs analysis ded within its revised Housing
Zlement, the City of Carlsbad finds that Carlsbad i eriencing a lack of housing
tffordable to lower-income households and first-time mod ncome home buyers; and
WHEREAS, the City of Carlsbad’s lower-income Fair re Housing objective
minimum good faith effort of guaranteed units) is 1125 low-in
WHEREAS, the City’s revised Housing Element includes objectiv
If 1400 lower-income units (275 units in excess of the Fair Share require
noderate-income units (17 units less than the Regional Share requirement),“\and of the
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1400 lower-income and 1300 moderate-income units, the City has committed to
reducing 350 lower-income and 1100 moderate-income units through City initiated
EREAS, the remaining 1050 lower-income and 200 moderate-income units
be provided through some other means; and
d market conditions, the private market has not
nor is likely to produce in the future, an adequate amount of
using units affordable lower and moderate-income households to meet the remaining
lance of the City’s lower- r Share need (1050 units) or moderate-income
ential development which does not include nor
moderate-income households
housing shortage; and
s not include nor contribute
a need for affordable lower
residential land upon which
g population, which creates
rs, gas stations), which are
staffed by lower wage employees, who create a demand
housing; and
WHEREAS, over the next 5 years, there is an actual need
lower income units and 1,317 moderate income units
dwelling units needed; and
WHEREAS, new market rate residential
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WHEREAS, the 15% lower-income and 5% moderate-income inclusionary
ment represents 1050 lower-income and 200 moderate-income units which is less
alf of the actual (Regional Need) need over the next 5 years and therefore
nable relationship to the need created by new residential development; and
S, the mandatory Inclusionary Housing Program was identified within the
Element as the best program available to the City to achieve the
City’s Fair Share objective for lower-income units and Regional
e objective for moder -income units, and
WHEREAS, the 15% lo ncome and 5% moderate-income inclusionary housing
uirement will ensure that the r aining balance of the City’s Fair Share objectives
er-income) and Regional Share ves (moderate-income) can be achieved, and
WHEREAS, based upon an ass te for projected residential development
een 1991 and 1996, the imposition of low-income and 5% moderate-income
ntial development is necessary to
eve the City’s Fair Share and Regional Share o
WHEREAS, the 15% lower-income and 5% mod income inclusionary housing
quirements are necessary to ensure conformance with th sing Element of the City’s
eneral Plan; and will protect the health, safety and welfar
WHEREAS, City staff, in association with an Ad Hoc Co e of master plan and
-fill residential builders and non-profit builders, prepared an e omit study of the
velopment of affordable housing within the City of Carlsbad; and
WHEREAS, the economic study concludes that while the propdsed inclusionary
using requirements, would create an additional economic burden on, the private
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evelopment community, the development of housing affordable to low and moderate
lcome households is achievable through cooperative partnerships between the
fit organizations, and the City; and
g Element identifies programs to provide technical,
standards flexibility incentives to facilitate inclusionary housing
of Carlsbad, California does ordain as follows:
of the Carlsbad Municipal Code is amended by the
lections: 21.85.010 21.85020
21.85.030
21.85040
21.85050
21.85.060 21.85.070
21.85080
21.85.090
21.85.100
21.85110 21.85.120 21.85.130 21.85.140
21.85.150 21.85160
21.85.170 21.85.180
21.85.190
IN LUSIONARY HOUSING
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Purpose Intent.
Definitions.
Applicability f Inclusionary Housing Requirement.
Construction of, Required Inclusionary Units.
In-lieu Contributions.
Inclusionary Housing Impact Fee.
Regulations for Ne& 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 Residential Subdivisions Not Subject to
Master Plan or Specific Plan,
Regulations for Mobile Home Parks.
Combined Inclusionary Housing Projects.
Affordable Housing Standards. ,
Expiration of Affordability Tenurj. Incentives to Offset the Cost \,of Affordable Housing
Development.
k Preliminary Project Application and ,eview Process.
Inclusion of Affordable Housing Agreement as a Condition of
Development. ‘\
Inclusionary Housing Resale Agreement.
Eligibility Requirements.
Management and Monitoring.
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21.85200 Administrative Fee for Inclusionary Housing.
1 21.85210 Collection of Fees.
Separability of Provisions
as established by the Housing Element of the
ster planned and specific planned communities
subdivisions provide a range of housing opportunities for all
5 identifiable eco ‘c segments of the population, including households of lower and
) It is also the policy of the City to:
ire that a minimum of 15% of all approved residential units in any
or residential subdivision be restricted to and affordable by
a minimum of 5% of all approved residential units in any
community be restricted to and affordable by moderate-
r those developments which provide 10 or more units
Ids, at least 10% of the lower-income units should
11 have three or more bedrooms; an
(4) In specific cases, inclusionary requirements to be satisfied through
12 the payment of an in-lieu fee as ternative to requiring inclusionary units to be
constructed on the ground. 13 (5) Require existing, esidential subdivisions and subdivision
14 proposals with completed applications ctive date of this ordinance to pay a
housing impact fee to satisfy the inc
15 (c) It is the purpose of this the implementation of the City
objective and policies stated in subsections (a
16 (d) Nothing in this Chapter is inten create a mandatory duty on behalf
of the City or its employees under the Governme Claims Act and no cause of action
l7 against the City or its employees is created s Chapter that would not arise
18 independently of the provisions of this Chapter.
19 21.85020. Definitions.
Whenever the following terms are used in hapter, they shall have the
20 meaning established by this section:
21 (1) “Affordable housing” means housing for h the allowable housing
expenses paid by a qualifying household shall not excee specified fraction of the
88 gross monthly income, adjusted for household size, for the ng classes of housing:
A. Very low-income, unassisted and assiste tate and/or Federal)
23 rental and unassisted and assisted (State and/or Federal) for-sa . 30 percent of the
gross monthly income, adjusted for household size, at 50 pert he County median
24 income.
25 B. Low-income, unassisted rental and unassiste -sale units: 30
percent of the gross monthly income, adjusted for household size, at
26 county median income.
C. Low-income, assisted (State and/or Federal) re
27 percent of the gross monthly income, adjusted for household size, at 60
28 County median income.
D. Low-income, assisted (State and/or Federal) for-sale units: 30
hold size, at 70 percent of the
median income.
E. Moderate-income, unassisted for-sale units: 35 percent of the
y income, adjusted for household size, at 120 percent of the County median
F. Moderate-income, assisted (State and/or Federal) for-sale units:
monthly income, adjusted for household size, at 110 percent of
able housing agreement” means a legally binding agreement
the City to ensure that the inclusionary requirements of this
7 Chapter are satisfied. ent establishes the number of required inclusionary
units, the unit sizes, loca rdability tenure, terms and conditions of affordability
8 and unit production sche
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the total monthly or annual
recurring expenses required of a r. For a for-sale unit, allowable
1o housing expenses include loan loan interest, property and mortgage insurance, property taxes, home owners dues and a reasonable allowance for utilities.
11 For a rental unit, allowable housmg enses include rent, a reasonable allowance for
utilities.
12 (4) “Assisted (State and/o eral) unit” means a dwelling unit as defined
in Section 50055 of the California Healt 13 (5) “Base residential units” number of units associated with each
14 master plan, specific plan, plan phase, ual development within a master or
specific plan or residential subdivision ulated the lower and moderate-
15 income inclusionary units to be provi with that master plan, specific
plan, phase or development or residential subdivisi
16 (6) “Combined inclusionary housing ct” means separate residential
development sites which are linked by a contractual relakjonship such that some or all
l7 of the inclusionary units which are associated with one development site are produced
18 and operated at the alternative development site or sites. ‘1
(7) “Conversion” means the change of occupanti of a dwelling unit from
19 owner-occupied to rental or vice versa.
(8) “Density bonus (new residential means a minimum
80 density increase of at least twenty-five percent (25%) either the Growth
21 Management Control Point of the applicable General Plan desi
Section 21.90.045 of this Title, or the otherwise
28 as specified by the applicable master plan or
(9) “Existing Master Plan or
funds, or the provision of other direct financial aid, such as cash transfer payments or
86 other monetary compensation, by the City of Carlsbad. :
(11) “Growth Management Control Point” shall have the same meaning as
27 Chapter 21.90, Section 21.90.045 of this Title.
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(12) “Incentives” means such regulatory concessions to include but not be
ted to a density increase, the modification of site development standards or zone code
ments, approval of mixed use zoning in conjunction with the residential project,
er regulatory incentive which would result in an identifiable cost reduction to
provision of affordable housing for lower or moderate-income households.
“Inclusionary housing project” means a new residential development
sting residential buildings which has at least fifteen percent (15%) or
of the total units reserved and made affordable to lower-income
erate-income households, respectively, as required by this Chapter.
and which shall be affordable to lower-income households or a
offered for sale exclusively to and which will be affordable to
e home buyers, as required by this Chapter.
’ means any monetary benefits that qualifies as income in
dance with the cnt and procedures used by the City of Carlsbad Housing and
velopment Departme the acceptance of applications and recertifications for the
hon 8 Rental Assistance am, or its successor.
usehold” means those households whose gross income not exceed 80 percent of the median income for San
by the U.S. Department of Housing and Urban
(17) “Lower-income ho old” means low-income and very low-income
useholds, whose gross income does n exceed 80 percent of the median income. for
n Diego County as determined annual1 e U.S. Department of Housing and Urban
(18) “Market-rate unit” means ng unit where the rental rate or sales
is not restricted either by this Chapt equirements imposed through other
state, or federal affordable housing
(19) “Moderate-income household” those households whose gross
come is more than 80 percent but does not exe percent of the median income
dential unit calculations)”
those lands considered to
aster plan or specific
(22) ‘Target income level” means the income st
moderate-income levels within San Diego County as determin
artment of Housing and Urban Development, and adjusted for
(23) “Unassisted unit” means a dwelling unit regardi
tance has been received from a public body in the production’ occ
(24) “Very low-income household” means a househol
me equal to 50 percent or less of the median income for San
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21.85030. Annlicabilitv of Inclusionarv Housing Reauirement.
1 (a) This Chapter shall apply to all residential market rate dwelling units resulting
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new construction of rental and “for-sale” projects, as well as the conversion of
4 i+l -- - - ents to air-space condominiums within:
(1) New master plans or specific plans (approved after the effective date
of this dinance);
(2) Existing master plans or specific plans (approved on or before the
effective da of this Ordinance) with or without development entitlements (i.e., tentative
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6 sions not located within any master plan or specific
7 obile home developments; and
for the conversion of apartments to air-space
8 :ondominiums.
r shall not apply to the following: 9 for which building permits have
10 which are altered, improved, restored, repaired,
11 expanded or extended, that the number of units is not increased, however, this
Chapter shall pertain of land for the conversion of apartments to air-
12 ;pace condominiums;
of a new residential structure which replaces a
al structure that was des or demolished within two years prior to the
on for a building permit e new residential structure, provided that the
residential units is not incr m the number of residential units of the
destroyed or demolished re
(4) Any residential unit whit accessory as defined in Section 21 .&I.020
d by the City to be in the public interest;
(5) Those residential units for consistent with this Chapter, an
the City, and a deed restriction
ds of lower-income or moderate-
ermits, for which the
ce, the inclusionary
s shall be satisfied
ough the construction of new units:
(1) Any residential project (i.e.; tentative m
version of apartments to air-space condominiums, site deve plan, planned unit
elopment, redevelopment permit, residential mobile home t or conditional
permit) of seven (7) or more dwelling units, for which the deemed complete on or after the effective date of this ordinan
or more dwelling units, that have been approved prior to the
ordinance and that require, as a condition of approval, the processing of
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development plans, shall be subject to the requirements of Chapter 21.85.060 and each
unit will meet the inclusionary requirements by payment of an inclusionary
2) Any residential tentative map revision, including a tentative map
e conversion of apartments to air-space condominiums, of seven (7) or
pproved after the effective date of this Ordinance.
residential tentative map of seven (7) or more dwelling units, for
was deemed complete on or following the effective date of this
sequently approved for extension after the effective date of this
residential planned unit development, site development plan,
7 conditional use permi ential mobile home park permit or redevelopment permit for
seven (7) or more dwe units, for which the application was deemed complete on or
8 following the effective f this ordinance, and is subsequently approved for
amendment after the effec ate of this Ordinance. 9 (b) Notwithstanding, ntrary provisions of Sections 21.85070, 21.85.080,
le discretion of the final decision making authority
hat an alternative to the construction of new
shall be required to be processed through an
with Section 21.85160 of this Chapter.
clusionary units that are required to be built
70 (New Master/Specific Plans), Section
on21.85.090 (Residential Subdivisions),
14 and Section 21.85.100 (Mobile Home Par ctional units that result from the
formulas contained in these sections may be sa y the developer, at the discretion
15 of the developer, by either of the following ah
(1) The fractional inclusionary unit eated as a whole inclusionary
16 unit (i.e.: any resulting fraction shall be rounded next larger integer) and the
17 inclusionary unit shall be built pursuant to the pr
(2) The fractional inclusionary unit ded in the number of
18 units otherwise required to be built pursuant to the provi of these sections, but the
developer shall pay to the City, within 90 calendar day he hearing date granting
19 approval of the requested discretionary permits, an amount o ey equal to the fraction
times the average subsidy needed to make affordable to a r or moderate-income
20 household, as appropriate, one newly-constructed typical at d housing unit, as set
21 forth in Section 21.85.050 (b) of this Chapter.
22 21.85050. In-lieu Contributions.
(a) For the following classes of residential projects or p
23 application was deemed complete on or after the effective date
inclusionary housing requirement for lower-income households m
24 payment to the City of an in-lieu fee or other in-lieu contributions.
25 (1) Any residential project (i.e.; tentative map, tentati
conversion of apartments to air-space condominiums, parcel map,
26 development, site development plan, conditional use permit, residential mo
permit or redevelopment permit) of six (6) dwelling units or less, approve
27 effective date of this Ordinance.
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(2) Any residential tentative map or parcel map revision, including a
1 tentative map revision for the conversion of apartments to air-space condominiums, of six
(3) Any residential tentative map or parcel map of six (6) dwelling units
roved on or after the effective date of this Ordinance, and is subsequently
nsion after the effective date of this Ordinance.
Any residential planned unit development, site development plan,
residential mobile home park permit or redevelopment permit for
or less, approved on or after the effective date of this Ordinance,
oved for amendment after the effective date of this Ordinance.
ment of 6 (six) or fewer new mobile home pads in a mobile
after the effective date of this Ordinance.
to be paid for each market-rate dwelling unit shall be 15
8 percent of the subsidy d to make affordable to a lower-income household one
newly-constructed, typi ched-housing unit. This subsidy shall be based upon the
9 City’s determination of the subsidy that would be required to make affordable
1o typical, new two-bedroorq/one- and three-bedroom/two-bath for-sale units and two-
bedroom/one-bath and three-be two-bath rental units, each with an assumed
d of payment of the in-lieu fees shall be fixed
pads of a development.
(d) All in-lieu fees collected he 1 be deposited in a Housing Trust Fund.
14 Said fund shall be administered by t shall be used only for the purpose of
providing funding assistance for the provision rdable housing units consistent with
15 the policies and programs contained in the H Element of the General Plan.
(e) At the discretion of the City irrevocable dedication of land or
16 other non-monetary contribution of a v than the sum of the otherwise
required in-lieu fee may be accepted in-lieu of provi required affordable housing
l7 units or in-lieu fees. The valuation of any land offere eu shall be determined by an
18 appraisal made by an agent mutually agreed upon by ity and the developer. Costs
e in-lieu of development
s, tentative maps, site
le home park permits,
ion 21.85.050(a) shall ount established by
26 (a) For the following classes of residential projects, for which the
deemed complete before the effective date of this Ordinance, the inclusi
27 requirement for lower-income households may be met by the payment to
28 inclusionary housing impact fee.
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(1) Residential projects, of any size, establishing individual lots or dwelling
ccl maps, tentative maps, tentative maps for the conversion of apartments
condominiums, site development plans, planned unit developments,
residential mobile home park permits, and redevelopment
application was accepted and deemed complete prior to the
gle family residential projects, (i.e.: parcel maps and tentative maps)
discretionary approvals, except site development plans, were
effective date of this Ordinance and site development plans are
condition of the prior approval and are approved after the
dential tentative map or parcel map revision, including a
tentative map revision conversion of apartments to air-space condominiums, of any
after the effective date of this Ordinance.
al tentative map or parcel map for which the application
tive date of this Ordinance, which was approved
this Ordinance, and is subsequently approved for
extension on, before, or after t ctive date of this Ordinance.
11 (5) Any residentr ed unit development, site development plan,
conditional use permit, residenti home park permit or redevelopment permit, for
12 which the application was deeme before the effective date of this ordinance,
which was approved on, before, or
15 subsequently approved for amendment
e effective date of this Ordinance, and is
o fore, or after the effective date of this
14 Ordinance.
(b) Those residential projects which w d on or before the effective date
15 of this Ordinance, and for which a condition was to pay inclusionary in-lieu
fees shall instead pay a housing impact fee, in a ance with this Section.
lower-income household the
‘od of 30 years. This subsidy
age subsidy that would be
three-, and four-bedroom
al demand for housing,
ower-income affordable
recordation of final map and/or issuance of certificate
24 existing apartments to airspace condominiums.
of complian
25 (f) All housing impact fees collected hereunder shah be deposit
Trust Fund. Said fund shall be administered by the City and shall be
26 purpose of providing funding assistance for the provision of afforda
consistent with the policies and programs contained in the Housing Ele
27 General Phin.
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21.85.070. Regulations for New Master Plans or Specific Plans. (Approved after
the effective date of this Ordinance.)
(a) This Chapter requires the following:
(1) Not less than fifteen percent (15%) of all base residential units in any
plan or specific plan shall be set aside for occupancy by and shall be
lower-income households; and (2) Not less than five percent (5%) of all base residential units in any new
ecific plan community shall be set aside for sale to and shall be
erate-income first-time home buyers.
developments which are required to provide ten or more units
affordable to lo come households, at least ten percent of the lower income units
shall have three o
housing requirement for lower-income and moderate-income
households in a new m plan or new specific plan may not be met by the payment to
the City of an in-lieu fee, er in-lieu contributions or inclusionary housing impact fee,
with the exception that any r g fractional inclusionary unit may be satisfied through
the payment of a fee, as set Section 21.85.040(c) of this Chapter.
(d) All new master pla pecific plans are required by this Chapter to provide
an Inclusionary Housing Plan wrt he master plan or specific plan document. This
Inclusionary Housing Plan will appropriate text, maps, tables, or figures to
establish the basic framework for the requirements of this Chapter. It shall
establish, as a minimum, but not
(1) The total number of ba sidential units of the master plan or specific
plan; (2) The number of required i onary units for lower and moderate-
income households over the entire master pl
(3) The designated sites for the 1 n of the inclusionary units, including
but not limited to any sites for locating off-site ionary housing projects or combined
inclusionary housing projects;
d and recorded as a deed
ch are designated for the
t shall be consistent with
Title.
welling units may be
on 21.38.120 of this
(e) For the purpose of determining the number of lower-income
inclusionary units and moderate-income inclusionary units in
specific plans, the following standards shall apply:
(1) The number of required lower-income inclusiona
obtained by the following formula:
Lower-Income Inclusionary units = “base” x 0.15.
12
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(2) The number of required moderate-income inclusionary units shall be
y the following formula:
Moderate-Income Inclusionary units = “base” x 0.05.
base for a new master plan or specific plan is determined by multiplying
pable acreage of the project site times the growth management control
ect site’s applicable general plan designation(s). If in the course of ster plan or specific plan, the final decision making authority of the
the base residential yield of the new master plan or specific plan
cause of environmental constraints or regulatory considerations (i.e.
esign guidelines of the City), the base shall be equal to the
maximum number units actually achievable with the consideration of such
7 environmental constr and regulatory considerations. If a density bonus is or
subsequently become ded, the increased density is not included in the base when
8 determining the numbe equired inclusionary units relative to the base project yield.
(a) This Chapter requir
(1) Not less than percent (15%) of all base residential units in any
shall be set aside for occupancy by and shall be
(2) Not less than ent
13 existing master plan or specific plan c
(5%) of all base residential units in any
ty shall be set aside for sale to and shall be
14 affordable to moderate-income first-
(b) For those developments required to provide ten or more units
15 affordable to lower-income househol t ten percent of the lower-income units
shall have three or more bedrooms.
16 (c) All existing master plans or spec lans proposed for major amendment,
pursuant to Section 21.38.120 of this Code, s
l7 plan or specific plan document an Inclusiona
corporate into the amended master
ing Plan, consistent with Section
18 21.85.070 (d) of this Chapter.
(d) Consistent with Sections 21.85.040 and 5.050 of this Chapter, certain
19 classes of projects or permits within an existing mast or specific plan may satisfy
their inclusionary housing requirement for lower-income moderate-income households
20 through the payment to the City of an in-lieu fee or othe eu contributions.
21 (e) Consistent with Section 21.85.060 of this Chap
or permits within an existing master plan or specific plan m
22 housing requirement through the payment of an inclusionary
(f) For the purpose of determining the number o
23 inclusionary units and moderate-income inclusionary units in an ting master plan or
24 specific plan, the following standards shall apply:
(1) The number of required lower-income inclusio 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 inclusion
obtained by the following formula:
27 Moderate-Income Inclusionary units = “base” x 0.05.
h
(g) The base for an existing master plan or existing specific plan shall be equal
sum of the maximum number of dwelling units permitted under that existing
an or specific plan for all phases or individual developments within the existing
or specific plan. If a density bonus is or subsequently becomes awarded, the
nsity is not included in the base when determining the number of required
relative to the base project yield. The base for existing master plan or
es and developments shall not be less than the maximum number of
d for that phase or development in the existing master plan or
the following specific development phases of an existing master
building permits were issued, on or before the effective date
7 of this Ordinance, for construction of new dwelling units approved in a master plan or specific plan phase ’ dividual development area, the number of dwelling units
8 approved via said permit be subtracted from the base as otherwise determined for
that phase or individual
map or final map (which establishes individual
residential lots or dwelling u r any phase or individual development area of a
approved, on or before the effective date of this
tentative map was received and deemed complete
ctive date of this ordinance, and the number
um number of dwelling units permitted
ase shall be equal to the number of dwelling
or final map for that phase or individual
development area of a master plan or
tablishes individual residential lots or
dwelling units) has not been approved, on or effective date of this ordinance,
16 the base shall be equal to the maximum num lling units permitted under that
master plan or specific plan for that phase or in
l7 course of reviewing a phase or individual developm
development area. If in the
a of a master or specific plan,
18 the final decision making authority of the City det at the maximum number of
t area of a master plan or
19 specific plan cannot be achieved because of environm onstraints or regulatory
considerations (i.e, zoning standards or design guidelines o e City), the base shall be 20 equal to the maximum number of units actually achievable wit
21 environmental constraints and regulatory considerations.
(h) An Affordable Housing Agreement shall be
22 discretionary permits for development within the
tentative maps, parcel maps, planned unit
23 relevant terms and conditions of the
recorded as a deed restriction on
24 designated for the location of inclusionary units. The Affordable Housin
25 be consistent with Section 21.85.160 of this Chapter.
26’ 21.85.090. Regulations
or Specific Plan. 27 (a) This Chapter requires the following:
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(1) Not less than fifteen percent (15%) of all base residential units in any
1 residential subdivision shall be set aside for occupancy by and shall be affordable to
ections 21.85.040 and 21.85.050 of this Chapter, certain
satisfy their inclusionary housing requirement for lower-
s through the payment to the City of an in-lieu fee or other in-lieu
with Section 21.85.060 of this Chapter, certain residential
5 subdivisions may s their inclusionary housing requirement through the payment to
the City of an inclus housing impact fee.
se of determinin g the number of required lower-income
7 inclusionary units the g standards shall apply:
of required lower-income inclusionary units shall be
Irxlusionary units = “base” x 0.15. 9 (e) For those devel s which are required to provide ten or more units
Ids, at least ten percent of the lower-income units
lo shall have three or more bedroo
11 (f) The base for a residenh
developable acreage of the project si
1.2 the project site’s applicable general p residential subdivision project, the final making authority of the City determines
13 that the base residential yield of the annot be achieved because of
14 environmental constraints or regulatory (i.e. zoning standards or design
guidelines of the City), the base shall be equ um number of units actually
15 achievable with the consideration of such constraints and regulatory
considerations. If a density bonus is or becomes awarded, the increased
16 density is not included in the base when d e number of required inclusionary
units relative to the base project yield. 17 (g) Where a residential subdivision was either a ved on or before the effective
18 date of this ordinance, or the application for said residen bdivision was received and
deemed complete by the Planning Department, before the ctive date of this ordinance,
19 and the number of approved dwelling units is less than the er of dwelling units
achievable, than the base shall be equal to the number o
20 approved on the residential subdivision.
26 (a) This Chapter requires the following:
affordable to lower-income households. 28
15
(b) The development of (6) six or fewer new mobile home pads in a mobile home
1 park may 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
2 Sections 21.85.040 and 21.85.050 of this Chapter.
3 (c) For the purpose of determinin g the number of required lower-income inclusionary units the following standards shall apply:
4 (1) The number of required lower-income inclusionary units shall be
obtained by the following formula: 5 Lower-Income Inclusionary units = “base” x 0.15.
(d) For those developments which are required to provide ten or more units
6 affordable to lower-income households, at least ten percent of the lower-income units
7 shall have three or more bedrooms.
(e) The base for a mobile home development is determined by multiplying the net
8 developable acreage of the project site times the growth management control point(s) for
9
the project site’s applicable general plan designation(s). If in the course of reviewing a
mobile home project, the final decision making authority of the City determines that the
1o base residential yield of the project site cannot be achieved because of environmental
constraints or regulatory considerations (i.e. zoning standards or design guidelines of the
11 City), the base shall be equal to the maximum number of units actually achievable with
the consideration of such environmental constraints and regulatory considerations. If a
12 density bonus is or subsequently becomes awarded, the increased density is not included
in the base when determinin
l3 base project yield.
g the number of required inclusionary units relative to the
14 (f) An Affordable Housing Agreement shall be made a condition of the discretionary permits for development of the mobile home park (i.e. tentative maps,
15 residential mobile home park permits, or conditional use permits). The relevant terms and
conditions of the Affordable Housing Agreement shall be filed and recorded as a deed
16 restriction on those individual pads or units of a project which are designated for the
location of inclusionary units. The Affordable Housing Agreement shall be consistent with
l7 Section 21.85.160 of this Chapter.
18 21.85.110. Combined Inclusionarv Housing Proiects.
19 Circumstances may arise from time to time in which the public interest would be
served by allowing some or all of the inclusionary units associated with one residential
20 project site to be produced and operated at an alternative site or sites. Where the parties
21 in interest to the sites and the City form an agreement to such an effect, the resulting
linked project sites shall be considered to be a single combined inclusionary housing
22 project. It is the exclusive prerogative of the final decision making authority of the City
to determine whether or not it is in the public interest to authorize the residential sites
23 to form a combined inclusionary housing project.
24
All agreements between parties to form a combined inclusionary housing project
shall be made a part of the Housing Agreement (Section 21.85.160 of this Code) required
25
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for the sites.
: 26 21.85.120. Affordable Housing Standards.
(a) Notwithstanding a developer’s request to process a residential project under 27 Chapter 21.86 (Residential Density Bonus) of this Code, all residential projects are subject
28 to and must satisfy the inclusionary housing requirements of this Chapter.
II 16
(b) The required inclusionary units shall be constructed concurrent with market
1 rate units unless both the final decision making authority of the City and developer agree
2 within the Affordable Housing Agreement to an alternative schedule for development.
(c) Inclusionary units shall remain restricted and affordable to the designated
minimum period of thirty (30) years.
Inclusionary units should be built on-site and whenever reasonably possible,
ted throughout the project site.
rtain cases where a combined inclusionary housing project is proposed,
units may be provided on a site separate from the site of the market-rate
of the inclusionary units is, limited to sites within the same City
the market-rate units are located. However, in the event that two
which forms a quadrant boundary, and the two properties are
contiguous, excep r the presence of the road, then the inclusionary housing
8 requirements of eit perty may be provided on the other property. Where the
are located within a master or specific plan area, the first
mative site is within the same master or specific plan,
acilities Management Zone. In the event that a Local
es City quadrants, the required inclusionary units shall
adrant in which the market-rate units are located.
(f) Inclusionary units r d for lower-income households should be located on
12 sites that are in proximity to or ovide access to employment opportunities, urban
services, or major roads or other tr
13 bus lines) and that are compatible wr
on and commuter rail facilities (i.e. freeways,
acent land uses.
(g) With the approval of the fin
l4 developer/applicant may reduce both the s
cision making authority of the City, the
d amenities of the inclusionary units
15 provided that all units conform to the require of the applicable building and housing
codes. The design of the inclusionary units asonably consistent or compatible
16 with the design of the total project develop erms of appearance, materials and
17 finished quality.
(h) Inclusionary projects shall provide a affordable dwelling units (by
18 number of bedrooms) in response to affordable hous emand priorities of the City,
whenever feasible.
19 (i) No building permit shall be issued, nor any dev nt approval granted for
apter. No inclusionary
21 21.85.130. Exniration of Affordabilitv Tenure.
(a) At the end of the
26 option, the City or its designee will make a good faith effort to close escrow Within 90
days. The sales price of the rental project of for-sale unit(s) shall be the fair-market
27 appraised value at the time of sale, assuming continued affordability restrictions. The, fair
28 market valuation of the inclusionary rental project or for-sale inclusionary unit shall be \_ ‘.\ \\
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letermined by an appraisal made by an agent mutually agreed upon by the City and the
)roperty owner. Costs associated with the appraisal shall be borne by the property
Bwner.
(b) If the City or its designee fails to exercise its option of first right of refusal to
ase the inclusionary rental project or for-sale inclusionary unit within ninety (90)
tification of expiration for the inclusionary rental project or for-sale
unit, then the units may be converted to market-rate units under the
The management of the complex intending to convert inclusionary
et-rate units shall give notice of such intent, via registered mail, to
household and to the City Clerk. Said notice shall be given at least
)ne hundred ei 180) days prior to the date proposed for conversion to market-rate
cted tenant household shall be eligible to receive rental
*elocation assistance amount equal to four (4) months rent, said assistance to be
jrovided by the owner/ ement company and paid to the tenant at least sixty (60)
lays prior to conversion t arket-rate rents.
:onstruction of residential develop gith consider making available to
assistance to enable residential pr
noderate-income households. Incen cial assistance will be offered by the City
o the extent that resources for this available to the City and approved for
‘uch use by the City Council, and to the ex residential projects, with the use
)f incentives or financial assistance, assists the City’s housing goals. To the
legree that the City makes available programs de incentives or financial assistance
o the development industry, developers may e application for such incentives or
assistance. However, nothing in this Chapter estab s, directly or through implication,
I right for a developer to receive any assistance or 1 ntive from the City or any other
jarty or agency to enable him/her to meet the obli established by this Chapter.
‘rejects are entitled to density bonuses and/or o entives in accordance with
)rovisions of state law, pursuant to the provisions of C r 21.86. of this code. Any
ncentives provided by the final decision making authorrty he City and the allowable
rousing expenses established by the final decision making ority of the City shall be
let out within the Affordable Housing Agreement pursua o Section 21.85.160.
+.uthermore, developers are encouraged to utilize local, state eral assistance, when
available, to meet the affordability standards set forth in Secho
21.85.150. Preliminarv Proiect Application and Review Pro&s.
(a) An applicant/developer proposing an inclusionary housing p
t preliminary application to the Planning Director prior to the sub
applications for such housing development. The preliminary applica
bllowing information:
. .
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(1) A brief description of the proposal including the number of
inclusionary units proposed;
(2) The Zoning, General Plan designations and assessors parcel
num er(s) of the project site;
drivew and parking layout, building elevations, existing contours and proposed grading;
and
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(3) A site plan, drawn to scale, which includes: building footprints,
(4) A letter identifying what specific incentives (i.e.; standards
modificatio , density bonus or fee subsidies) are being requested of the City. Justification for each incen ‘ve request should also be included.
(b) Wit ’ L thirty days of receipt of the preliminary application by the Planning
,Director for projects not requesting incentives or financial assistance, or ninety days for
projects requesting incentives or financial incentives, the department shall provide to an
lapplicant/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
The applicant shall also be provided with a copy of this
e pertinent sections of the California Codes to which
licants/developers, s
er by the preparation
ble Housing Agreement s
15 The terms of the draft Agreement shall be
of Housing and Redevelopment, who sh
16 matter to the Community Development D
Following the approval and the signing by all
l7 Agreement shall be recorded, and the relevant
or his designee for final approval. the completed Affordable Housing
and conditions therefrom filed and
18 recorded as a deed restriction on those individual or units of a property which are
designated for the location of affordable unit. Th oval and recordation shall take
19 place prior to final map approval or, where a map eing processed, prior to the
issuance of building permits for such lots or units. rdable Housing Agreement
20 shall be binding to all future owners and successors in
21 (b) An Affordable Housing Agreement, for e inclusionary housing
requirement will be satisfied through new construction of i ionary units, either on-
22 site, off-site or through a combined inclusionary housing proje hall establish, but not
be limited to, the following:
23 (1) The number of inclusionary dwelling units pro
(2) The unit size(s) (square footage) of the incl
24 number of bedrooms per inclusionary dwelling unit;
25 (3) The proposed location of the inclusionary units; 1
(4) Tenure of affordability for inclusionary units (30 year minimum);
26 (5) Schedule for production of dwelling units; ‘l,
(6) Incentives and/or financial assistance provided by the City:‘\ \ \
28 tI \
19 ‘1 \ \ "\ \
(7) Where applicable, terms and conditions establishing rules and
1 procedures for qualifying tenants, setting rental rates, filling vacancies, and operating and units for affordable inclusionary dwelling units; and
(8) Where applicable, terms and conditions governing the initial sale of for-
rdable Housing Agreement, for which the inclusionary housing
satisfied through payment to the City of any in-lieu contributions
onies (i.e. land dedication) shall be required to include the following:
The method, schedule and value of total in-lieu contributions; and
determination of otherwise required per market-rate dwelling unit
in-lieu fees as lished by the schedule in effect at the time of payment.
e Housing Agreement will not be required for projects which will
ionary housing requirement through payment to the City of an
housing impact fee.
arv Housinn Resale Agreement.
10 All buyers of for-sa.l&inclusionary units shall enter into an Inclusionary Housing
Resale Agreement with the ‘City’s Housing Authority prior to purchasing the unit or
11 property. The Resale Agreement shall specify that the title to the subject unit or property
12
may not be transferred without prior approval of the City’s Housing Authority. \
21.85.180. Elinibilitv Reo&e ments. 13 Only households meeting the ndards for designated lower and moderate income
14 groups as defined in Section 21.85.020 shall be eligible to occupy inclusionary units.
15 21.85.190. Management and MO
(a) Inclusionary rental units shall be anaged/operated by the owner of the units
16 or his or her agent. Each owner of inclusion ental units shall submit an annual report
17 8, to the City identifying which units are inclusi ary units, the monthly rent, vacancy
information for each inclusionary rental unit for the prior year, monthly income for
I8 tenants of each inclusionary rental unit throughout b e prior year, and other information
as required by the City, while ensuring the privacy of the tenant.
19 ‘\, 21.85.200. Administrative Fee for Inclusionarv &ousinn. 20 Over the minimum thirty-year tenure of projects containing inclusionary housing
21 units the City will either directly or, via one or more third @@es, provide a number of
recurring services associated with the administration and monitoring of inclusionary units.
22 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
24
necessary to require the builders/owners of residential projects to share in these
administrative costs. Therefore, the City Council hereby establishes an administrative fee
25 for inclusionary housing, the amount to be established by City Council resolution and paid
prior to the issuance of building permit(s). ‘\ ‘\ 26 II \ . . . \ 27
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21.85.210. Collection of fees.
All fees collected under this Chapter shall be deposited into a Housing Trust Fund
and shall be expended only for the affordable housing needs of lower and moderate-
households, consistent with the purpose of this Chapter.
rovrsion 0 e application thereof to any person or
der of the chapter and the application of the situated or to other circumstances shall not be
E: This ordinance shall be effective thirty days after its adoption,
and the City Clerk certify to the adoption of this ordinance and cause it to be
published at least once e Carlsbad Journal within fifteen days after its adoption.
INTRODUCED AND READ at a regular meeting of the Carlsbad City Council
and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad on the ‘,I9 , dayof by the following vote, to wit:
AyES:
NOES:
‘\ ABSENT:
APPROVED AS TO FORM AND LEGALITY
RONALD R. BALL, City Attorney
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
21
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ExMBlr 3
PLANNING COMMIS!SION RFSOLUTION NO. 3424
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA RECOMMENDING
APPROVAL OF A NEGATIVE DECLARATION FOR A ZONE
CODE AMENDMENT TO ESTABLISH A CITYWIDE
INCLUSIONARY HOUSING PROGRAM.
CASE NAME: CITY OF CARLSBAD - INCLUSIONARY
ORDINANCE
CASE NO: ZCA 91-06
7 WHEREAS, the Planning Commission did on the 19th day of August, 1992,
8 the 28th day of October, 1992, the 4th day of November, 1992, and on the 18th day of
9 November, 1992, hold duly noticed public hearings as prescribed by law to consider said
10 II request, and
11 WHEREAS, at said public ‘hearings, upon hearing and considering all
12
testimony and arguments, examinin 13 g the initial study, analyzing the information submitted
14 by staff, and considering any written comments received, the Planning Commission
15 considered all factors relating to the Negative Declaration.
16 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission
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as follows:
A) That the foregoing recitations are true and correct.
B) That based on the evidence presented at the public hearing, the Planning
Commission hereby recommends APPROVAL of the Negative Declaration according
to Exhibit “ND”, dated June 25, 1992, and “PII”, dated January 2, 1992, attached
hereto and made a part hereof, based on the following findings:
Findinns:
1. The initial study shows that there is no substantial evidence that the project may
have a significant impact on the environment.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning
Commission of the City of Carlsbad, California, held on the 18th day of November, 1992,
by the following vote, to wit:
AYES: Chairperson Erwin, Commissioners: Schlehuber, Noble &
Savary.
NOES: Commissioners: Hall, Welshons & Schramm.
ABSENT: None.
ABSTAIN: None.
ATTEST:
TOM ERWIN, Chairperson
CARLSBAD PLANNING COMMISSION
MICHAEL J. H&!ZMILm
PLANNING DIRECTOR
PC RESO NO. 3424 -2-
NEGATIVE DECLARATION
PROJECT ADDRESS/LOCATION: Zone Code Amendment to be implemented Citywide.
PROJECT DESCRIPTION: Zone Code Amendment to add an Inclusionary Housing
Chapter to Carlsbad’s Zoning Ordinance.
The City of Carlsbad has conducted an environmental review of the above described project
pursuant to the Guidelines for Implementation of the California Environmental Quality Act
and the Environmental Protection Ordinance of the City of Carlsbad. As a result of said
review, a Negative Declaration (declaration that the project will not have a significant
impact on the environment) is hereby issued for the subject project. Justification for this
action is on tile in the Planning Department.
A copy of the Negative Declaration with supportive documents is on file in the Planning
Department, 2075 Las Pahnas Drive, Carlsbad, California 92099. Comments from the
public are invited. Please submit comments in writing to the Planning Department within
30 days of date of issuance. If you have any questions, please call Chris DeCerbo in the
Planning Department at 438-1161, extension 4445.
DATED:
CASE NO:
JUNE 25, 1992
ZCA 91-6
CASE NAME: CITY OF CABLSBAD
PUBLISH DATE: JUNE 25, 1992
cDc:km
I _ 1, 8 \,_1-: ‘k \.-A , . i ‘,.
MICHAEL J: .HOLZMILLEB ’
Planning Director
l2O75 Las Palmas Drive - Carlsbad. California 92009-l 576 l (619) 436-l 161 @
ENVIRO~‘UTAL WACI- ASSESSMENT FOP PARTU
(TO BE COMPLETED BY THE PLANNING DEPARTMENT)
CASE NO. ZCA 91-6
DATE: JANUARY 2, 1992 BACKGROUND
1. CASE NAME: INCLUSIONARY HOUSING PROGRAM
2. APPLICANT: CITY OF CARLSBAD
3. ADDRESS AND PHONE NUMBER OF APPLICANT: 2075 LAS PALMAS DRIVE
CARLSBAD. CA 92009
(619) 438-l 161
4. DATE EIA FORM PART I SUBMITTED:
5. PROJECT DESCRIPTION: Zone Code Amendment to add an inclusionarv housing chanter to Carlsbad’s Zoning Ordinance. This chanter shall establish reauirements for the reservation and
affordabilitv of housing units for moderate and lower-income households in residential nroiects
under a cior wide inclusionarv housing nrozram and the navment of an in-lieu fee or inclusionarv housing imnact fee in snecified circumstances.
ENVIRONMENTAL IMPACTS
STATE CEQA GUIDELINES, Chapter 3, Article 5, section 15063 requires that the City conduct an
Environmental Impact Assessment to determine if a project may have a significant effect on the environment. The Environmental Impact Assessment appears in the following pages in the form of a checklist. This checklist 8 identities any physical, biological and human factors that might be impacted by the proposed project and provides the City with information to use as the basis for deciding whether to prepare an Environmental Impact Report or Negative Declaration.
* A Negative Declaration may be prepared if the City perceives no substantial evidence that the project or
any of its aspects may cause a significant effect on the environment. On the checklist, “NO” will be checked to indicate this determination.
* An EIR must be preplrcd if the City determines that there is substantial evidence that any aspect of the project may cause a &ifican~ effect on the environment. The project may qualify for a Negative
Declaration however, if adverse impacts are mitigated so that environmental effects can be deemed insignificant. These findings are shown in the checklist under the headings “YES+” and “YES-in&g’ respectively.
A discussion of potential impacts and the proposed mitigation measures appears at the end of the form under DISCUSSION OF ENVIRONMENTAL EVALUATION. Particular attention should be given to discussing mitigation for impacts which would otherwise be determined significant.
PHYSICAL ENvrRoIWENT
WILL THE PROPOSAL DIRECl-LY OR INDIRECTLY:
1.
2.
3.
4.
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6.
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8.
9.
10.
11.
Resuh in unstable earth conditions or increase the exposure of people or property to geologic hazards?
Appreciably change the topography or any unique physical features?
Rest.& in or be affected by erosion of soils either on or off the site?
Result in changes in the deposition of beach sands, or modification of the channel of a
river or stream or the bed of the ocean or any bay, inlet or lake?
Result in substantial adverse effects on
ambient air quality?
Result in substantial changes in air
movement, odor, moisture, or temperature?
Substantially change the course or flow of
water (marine, fresh or flood waters)?
Affect the quantity or quality of surface
water, ground water or public water supply?
Substantially increase usage or cause
depletion of any natural resources?
Use substantial amounts of fuel or energy?
Alter a signifkant archeological,
paleontological or historical site,
structure or object?
YES YES NO big) (big)
x
x
x
x
x
x
x
x
x
X’
x
-2-
BIOLOGICAL ENVIRONMENT
WILL THE PROPOSAL DIRECTLY OR INDIRECTLY: YES YES
Wgl (insig)
12.
13.
14.
15.
16.
Affect the diversity of species, habitat or numbers of any species of plants (including trees, shrubs, grass, microflora and aquatic plants)?
Introduce new species of plants into an area, or a barrier to the normal replenishment of existing species?
Reduce the amount of acreage of any
agricultural crop or affect prime, unique or other farmland of state or local
importance?
Affect the diversity of species, habitat
or numbers of any species of animals (birds,
land animals, all water dwelling organisms
and insects?
Introduce new species of animals into an
area, or result in a baker to the
migration or movement of animals?
I-IUMANENVIRONMENT
WILL THE PROPOSAL DIRECTLY OR INDIRECIZY:
17. Alter the present or planned land use of an area?
18. Substantially affect publie utilities, schools, police, fire, anagency or other public services?
NO
x
x
X
x
x
YES YES NO
(sig) &&?I
x
x
-3-
HUMAN EWVIRONMEMT
WILL THE PROPOSAL DIRECTLY OR INDIRECTLY:
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
Result in the need for new or modified sewer systems, solid waste or hazardous waste control systems?
Increase existing noise levels?
Produce new .light or glare?
Involve a significant risk of an explosion or the release of hazardous substances (including, but not limited to, oil, pesticides, chemicals or radiation)?
Substantially alter the density of the
human population of an area?
Affect existing housing, or create a demand for additional housing?
Generate substantial additional traffic?
Affect existing parking facilities, or
create a large demand for new parking?
Impact existing transportation systems or alter present patterns of circulation or
movement of people and/or goods?
Alter waterborne, rail or air traf%c?
Increase traff?c hazards to motor vehicles, bicyclists or pedestrians?
Interfere with emergency response plans or
emergency evacuation plans?
Obstruct any scenic vista or create an aesthetically offensive public view?
Affect the quality or quantity of
existing recreational opportunities?
YES YES
big) (insig)
NO
x
x
x
x
x
x
x
x
x
x
x
x
x
x
-4-
MANDATORY FINDINGS OF SIGNIFICANCE
WILL THE PROPOSAL DIRECTLY OR INDIRECXY: YES YES
(sigl (insig)
33. Does the project have the potential
to substantially degrade the quality
of the environment, substantially reduce the ‘:abitat of a fish or wild- life species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or
restrict the range of a rare or en-
dangered plant or animal, or eliminate important examples of the major periods
of California history or prehistory.
34. Does the project have the potential
to achieve short-term, to the dis- advantage of long-term, environmental goals? (A short-term impact on the environment is one which occurs in a relatively brief, definitive period of time while long-term impacts will
endure well into the future.)
35. Does the project have the possible
environmental effects which are in- dividually limited but cumulatively
considerable? (“Cumulatively con-
siderable” means that the incremental effects of an individual project are considerable when viewed in connection
with the effects of past projects, the
effects of other current projects, and
the effects of probable future projects.)
36. Does the project bnn environmental effects which will cause substantial
adverse effects on human beings, either directly or indirectly?
NO
x
X
x
x
-5-
DISCUSSION OF ENVIRONMENTAL EVALUATION
This project is a Zone Code Amendment to add an Inclusionary Housing Chapter (21.85) to the City
of Carlsbad’s Zoning Ordinance (Title 21). This Inclusionary Housing Chapter implements Programs
3.2, 3.6.a., 3.6.b., 3.6.~. and 3.1O.c., of the City’s revised Housing Element.
The Inclusionary Housing Program requires that: (1) a minimum of 15% of all base residential dwelling units within a master plan, specific plan, or qualified subdivision be reserved and affordable to lower income households, that (2) a minimum of 5% of all base residential dwelling units within a master
plan or specific plan be made affordable to moderate income households, that (3) in developments
which are required to include ten or more units affordable to lower-income households, at least 10%
of the lower-income units should have 3 or more bedrooms, and that (4) in specific cases, allow
inclusionary requirements to be satisfied through the payment of an in-lieu fee or inclusionary housing impact fee as an alternative to requiring inclusionary units to be constructed on the ground. The proposed inclusionary ordinance was identified within the City’s Housing Element as the best program
available to achieve the City’s fair share housing objectives. The proposed Inclusionary Housing
Chapter includes Sections covering: Definitions, Applicability, Affordable Housing Standards, Application Processing Requirements, Incentives, Necessary Agreements (i.e., Affordable Housing,
Rental, Sales, Resale), Eligibility, Management and Monitoring.
In that: (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 development projects processed pursuant to the Inclusionary Housing Program
shall be required to undergo detailed environmental review, no project specific environmental impacts are anticipated.
1. The proposed Zone Code Amendment will not result in unstable earth conditions or increase the exposure of people or property to geologic hazards because no actual development is proposed. All future development processed pursuant to the Inclusionary Housing Program will need to comply with all City Standards, including the issuance of grading permits to prevent unstable earth conditions or the creation of geologic hazards due to development
and grading.
2. The proposed Zone Code Amendment will not appreciably change the topography of any site or alter physical features of any site, in that no specific development is proposed with this action.
3. The erosion of soils on or off a given site will not be affected by this Zone Code Amendment. All future development processed pursuant to this Inclusionary Housing Program will meet
applicable standards and all conditions associated with the issuance of grading permits.
4. In that no specific development is proposed, this Zone Code Amendment will not result in any changes in the deposition patterns of beach sands or the alignment of river or streambeds or the bottoms of any lagoons or inlets.
-6-
S-6. The proposed Zone Code Amendment is not a specific development project and therefore will
not have any adverse impacts on ambient air quality or will result in any change in air
movement, odor, moisture, or temperature.
7-10. The proposed Zone Code Amendment is not associated with any specific development
project, therefore the proposed amendment will not substantially alter the course or flow of marine fresh or flood waters or effect ground water or .public water supply. The proposed amendment will not cause a depletion of any natural resource or will use substantial
amounts of fuel or energy.
11. Future projects processed pursuant to the Inclusionary Housing Program shall undergo environmental review to evaluate impacts to archaeological, historical or cultural resources. This Zone Code Amendment is not a specific development project, and therefore will not impact resources.
BIOLOGICAL E3IVIRONMEIU-I’
12/13.
14.
15/16.
17.
18 - 22.
23.
Since no specific development is proposed, there will be no impacts to the diversity of any plant species and there will be no barriers to the normal replenishment of existing plant species. There will be no introduction of plant species into an area within the City through this Inclusionary Housing Program.
The proposed Inclusionary Housing Program will not impact agricultural lands of any importance within the City. Since this Zone Code Amendment is proposed Citywide, it would not affect any specific site.
Since this project does not propose specific development, there will be no impacts to the
diversity of animal species and there will be no barriers created to alter the migrations or
movements of animal species within the City and no new animal species will be introduced
by this Inclusionary Housing Program.
The Inclusionary Housing Program will not directly alter the present or planned land use of a specific area. Any future development application processed pursuant to this Inclusionary Housing Program shall be required to undergo specik environmental review. Any potential land use capability impacts shall be identified and adequately mitigated.
This Inclusionary Housing Program is not associated with any specific development. It will not substantially affect utilities, schools, police, fire, emergency or other public services. The proposed program will not alter or result in the need for sewer, s&d waste, hazardous waste
or other systems. The proposed amendment will not increase noise levels, light or glare or deal with hazardous substances. Future projects processed pursuant to this Inclusionary Housing Program shall be required to address and adequately mitigate associated impacts.
The density of an area within the City will not be directly affected by this proposed Zone
Code Amendment. Any potential impacts from density increases proposed on future
development projects subject to, this Inclusionay Housing Program shall be required to be
adequately mitigated.
24. Existing housing will not be directly affected by this action and there will not be a demand
for additional housing created by the adoption of the recommendations comprising this amendment. This new ordinance will result in the creation of additional units within the
City which are affordable to lower and moderate income households. Any potential impacts
associated with the conversion of existing market rate units to affordable units shall be
required to be analyzed and mitigated on a project by project basis.
25 - 30. The proposed amendment will not substantially affect parking, generate substantial traffic, or alter existing transportation systems. This proposed Zone Code Amendment
is not affiliated with any specific development project and will not interfere with safety issues such as emergency evacuation response plans or increase traffic hazard to motorists, pedestrians and bicyclists. Any future project processed pursuant to the inclusionary ordinance shall be required to adequately mitigate associated parking or
traffic impacts.
31. In that no specific development is proposed b&th this ZCA, no scenic vistas will be obstructed and aesthetically offensive views will not be created by the implementation
of the proposed Inclusionary Housing Program.
32. The proposed Zone Code Amendment will not affect the quality or quantity of existing recreational opportunities. Projects processed pursuant to this Inclusionary Housing Program shall still be required to provide recreational amenities.
-8-
ANALYSIS OF VIABLE ALTERNATIVES TO THE PROPOSED PROJECT SUCH AS:
a) Phased development of the project,
b) alternate site designs,
c) alternate scale of development,
d) alternate uses for the site, e) development at some future time rather than now, I’) alternate sites for the proposed, and g) no project alternative.
a) Phasing the implementation of this ZCA will not substantially reduce environmental impacts associated with the comprehensive implementation of this ZCA.
b) N/A.
cl WA.
d) This ZCA will be implemented Citywide. There is no specific site involved/actual development
proposed.
e) This ZCA implements Programs 3.2, 3.6.a., 3.6.b., 3.6.~. and 3.10.~. of the Housing Element. Implementation at this time is necessary to ensure consistency with Housing Element affordable
housing objectives.
f) See (d).
g) The no project alternative would not substantially effect the environmental findings for this project.
-9-
DETERMINATION (To Be Completed By The Planning Department)
On the basis of this initial evaluation:
x I find the proposed project COULD NOT have a signifkant effect on the environment, and a NEGATIVE
DECLARATION will be prepared.
I End that the proposed project COULD NOT have a significant effect on the environment, because the environmer*al effects of the proposed project have already been considered in conjunction with previously certified environmental documents and no additional environmental review is required. Therefore, a Notice of Determination has been prepared.
I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A Conditional Negative
Declaration will be proposed.
I find the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required.
6-lq-?t
Date Signature
I - I ‘,‘I’ ’ :, 5 t . c.- ‘: .; ..; ,. , IC . ,‘,I.. ‘. _ 8
Date Planning Director
CDD:lh:km
LIST MITIGATING MEASURES (IF APPLICABLE~
-lO-
L
- APPLICANT CONCU
THIS IS TO CERTIFY THAT I HAVE REVIEWED THE ABOVE MITIGATING MEASURES
AND CONCUR WITH THE ADDITION OF THESE MEASURES TO THE PROJECT.
Date Sign&u-e
-ll-
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PLANNING COMMISSION RESOLUTION NO. 3425
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING
APPROVAL OF A ZONE CODE AMENDMENT, 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
LOWERINCOME HOUSEHOLDS IN RESIDENTIAL PROJECTS
UNDER A CITYWIDE INCLUSIONARY HOUSING PROGRAM
AND THE PAYMENT OF AN IN-LIEU FEE OR IMPACT FEE IN
SPECIFIED CIRCUMSTANCES.
CASE NAME: CITY OF CARLSBAD - INCLUSIONARY
ORDINANCE
CASE NO: ZCA 91-06
WHEREAS, the Planning Commission did on the 19th day of August, 1992,
the 28th day of October, 1992, the 4th day of November, 1992, and on the 18th day of
November, 1992, hold duly noticed public hearings as prescribed by law to consider said
request; and
WHEREAS, at said public hearings, upon hearing and considering all
testimony and arguments, if any, of all persons desiring to be heard, said Commission
considered all factors relating to the Zone Code Amendment.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission
as follows:
A) That the foregoing recitations are true and correct.
B) That based on the evidence presented at the public hearing, the Commission
recommends APPROVAL of ZCA 91-06, according to revised Exhibit(s) “X”,
dated November 18, 1992, attached hereto and made a part hereof, based on the
following findings:
Findings:
1. This Zone Code Amendment, to add an Inclusionary Housing Chapter to the
Carlsbad Municipal Code (Title 21) is consistent with the various Elements of the
General Plan.
///
C
.
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2
3
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5
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14
15
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21
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2.
3.
4.
5.
This Zone Code Amendment, implements Housing Element Program 3.6.a., 3.6-b.,
3.2, 3.6-q and 3.10.~.
Implementation of Zone Code Amendment 91.06 is necessary for the City to be
able to achieve its Lower Income Fair Share and Moderate Income Regional Share
Housing Objectives.
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.
This amendment will not cause any significant environmental impacts. All future
development projects processed pursuant to this ZCA shall be subject to site
specific emironmental review. A Negative Declaration has been issued by the
Planning Director on June 25,1992.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning
Commission of the City of Carlsbad, California, held on the 18th day of November, 1992,
by the following vote, to wit:
AYES: Chairperson Erwin, Commissioners: Schlehuber, Savary 81
Noble.
NOES: Commissioners: Hall, Welshons & Schramm.
ABSENT: None.
ABSTAIN: None.
TOM ERWIN, Chairperson
CARLSBAD PLANNING COMMISSION
ATTEST: : we~w,
MICHAEL J. HOBMIL&R
Planning Director
PC RESO NO. 3425 -2-
A - EXHBIT 4
DECEMBER 11, 1992
TO: CITY MANAGER
FROM: Planning Director
SUMMARY OF REVISIONS TO INCLUSIONARY ORDINANCE (SCA 91-6)
The Draft Inclusionary Ordinance has gone through extensive public review including; a Planning Commission Housing Ordinance Workshop (7/15/92) I and three (3) Planning Commission public hearings (8/19/92, 10/28/92 and 11/18/92). In response to comments (verbal and written) from the general public and the development community, and specific direction from the Planning Commission, the Inclusionary Ordinance was continued two times, and sent back to staff to be revised.
Each Ordinance revision broughtbackbefore the Planning Commission was accompanied by a memorandum from the Planning Department which summarized the revisions. However, consistent with departmental procedure, the original Planning Commission staff report for the Inclusionary Ordinance (dated 8/19/92) was never amended to reflect the revisions to the Ordinance. The purpose of this memorandum is to summarize the major revisions made to the Inclusionary Ordinance. In conjunction with the original staff report for the Inclusionary Ordinance, it will clarify for you and the City Council the revisions to the Inclusionary Ordinance.
The major revisions to the Ordinance include the following:
1. Amending the methodology for calculating the number of required inclusionary units. The Ordinance (Sections 21.85.070 - 21.85.100) originally specified that the number of inclusionary units required per residential project would be equal to the maximum number of units achievable on a site (based upon the Growth Management Control Point of the Site X the Net Acres of the Site), multiplied by 5% moderate-income and/or 15% lower-income. The Ordinance has been revised to specify that, if in the course of project review, the City determines that the maximum residential yield is not achievable because of environmental constraints or regulatory considerations (development standards or design guidelines), then the number of required inclusionary 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. The Ordinance (Section 21.85.050) originally specified that any project which was in process and deemed a complete application, or approved with a condition to pay an in-lieu fee, on or before the effective date of the Inclusionary Ordinance, shall be required to satisfy inclusionary requirements through the payment of an in-lieu fee.
h
DECNMDER 11, 1992 BUMMARY OF REVISIONS TO INCLUSIONARY PAGE 2
3. Allowing residential developers, with a requirement to produce a fraction of an inclusionary unit the option of either:
ORDINANCE (8CA 91-6)
building the complete inclusionary unit or paying to the City an amount of money equal to the fraction of the unit times the average subsidy needed to make one newly constructed typical attached unit affordable to a low-income household. The Ordinance (Sections 21.85.070 - 21.85.100) originally specified that any resulting decimal fraction of an inclusionary unit owed by a developer would be required to be constructed as a whole inclusionary unit.
4. Amending Section 21.85.140, Incentives to Offset the Cost of Affordable Housing, to specify that the City shall in good faith consider making available to the development industry incentives or financial assistance to enable residential developers to provide affordable housing, provided that resources for this purpose are available and approved for such 'use by the City Council. The Ordinance originally included no statement of. commitment that the City would be willing to provide financial, incentives to the development community (provided resources are available) to help enable the development of affordable housing.
5. Deleting or refining programmatic or "how to*' sections or. provisions of sections from the Ordinance, for the purpose of reducing the Ordinance's complexity, while providing the development community and the City greater flexibility and opportunities to achieve the inclusionary mandates of this Ordinance. Specifically, the following sections of the original Ordinance have been deleted:
21.85.140 (Terms and Conditions for For-Sale Inclusionary Units); 21.85.150 (Resale Guidelines, Prices and Adjustments to Resale Prices for Inclusionary Units); 21.85.190 (Administrative Agreement for Inclusionary Rental Units): and 21.85.200 (Sales Agreement for Inclusionary For-Sale Units) and, the following sections have been refined:
21.85.110 (Combined Inclusionary Housing Projects): 21.85.150 (Inclusionary Housing Project Application and Review Process): 21.85.220 (Eligibility Requirements and Tenant Selection) and 21.85.230 Management and Monitoring).
The programmatic sections and provisions of sections which were eliminated or refined, will be more appropriately incorporated into standardized City Affordable Housing Agreements.
h
DECEMBER 11, 1992 SUMMARY OF REVISIONS TO INCLUSIONARY ORDINANCE (SCA 91-6) PAGE 3
ri
6. Amending Section 21.85.150 to establish that within thirty days of receipt of a preliminary application for an inclusionary housing project, not requesting incentives or financial incentives, or ninety days for projects requesting incentives or financial assistance, the Planning Department shall provide to the applicant/developer, a letter which identifies project issues of concern and the incentives and/or financial assistance that the Planning Director can support when making a recommendation to the final decision making authority. The Ordinance originally specified that the City would respond to all inclusionary housing preliminary applications (regardless of whether or not incentives of any type were requested) within ninety days of receipt of a L b preliminary application.
There were other major project issues which were discussed during the course of the public hearings on this item. Several of the issues discussed included conflicting testimony. Based upon additional research conducted by staff, staff is recommending the revision to two provisions of the Inclusionary Ordinance, as discussed below.
1. Section 21.85.070(d)(6), Modification to the Location and Phasing of Inclusionary Units within Master Plans - In adopting the Inclusionary Ordinance, the Planning Commission agreed to incorporate a developer initiated (Hofman Planning Associates) revision to Section 21.85.070(d)(6), which would specify with regard to Master Plans that, "The location and phasing of inclusionary units may be modified subject to the approval of the Planning Director pursuant to Section 21.38.120 of this Code." While staff concurs with the intent of this revision, Section 21.38.120 of Title 21 specifies that the Planning Commission, and not the Planning Director, has the exclusive authority to determine whether the proposed amendment would be minor in nature based upon a recommendation from the Planning Director. Consistent with this existing provisionwithinthe City's Zoning Ordinance, staff recommends that the proposed modification to Section 21.85.070(d)(6), should be revised to read: "The location and phasing of Inclusionary units may be modified as a minor amendment of the Master Plan pursuant to Section 21,38.120 of this Titl8.r1
- h
DECRRBER 11, 1992 SUMMARY OF REVISIONS TO INCLUSIONARY ORDINANCE (BCA 91-6) PAGE 4
2. Section 21.85.120(c), Inclusionary Unit Tenure of
Affordability - Staff recommends that the minimum tenure of affordability for inclusionary units be revised from 30 years to 55 years per the memorandum from the Housing and Redevelopment Director attached to the City Council Agenda Bill.
MICHAEL J. HOLZMILLER Planning Director
arb
EXHCBIT 5
DECEMBER 10, 1992
TO: CITY MANAGER
FROM: Housing and Redevelopment VIA: Community Development Director
DRAFT INCLUSIONARY ORDINANCE (RCA 91-6)
ISSUE OF AFFORDABILITY TENURE FOR RENTAL UNITS
In the Planning Commission's deliberations over the Inclusionary Ordinance, considerable discussion centered on the issue of how long reserved units would remain affordable. The Ordinance to be considered by the City Council establishes thirty (30) year affordability.with an option for the City to buy the affordable units (or projects containing affordable units) at the end of the thirty (30) years. The option price would be based on an appraised value that reflects continuing affordability requirements. The intent here is to see the affordability extended.
A more straightforward and, perhaps, less costly approach to extending affordability would be to establish permanent affordability at the outset in the Ordinance. This would be achieved by establishing affordability tenure as: "the remaininq life of the housincr unit, assumincr crood faith efforts to maintain the housincJ unit and rehabilitate it as necessary. The remaininq life of the housina units'shall be presumed to be a minimum of fifty-five (55) vears.g@ This language is borrowed from the City of San Diego Housing Trust Fund Ordinance. It covers rental units. I believe this approach for rental housing emphasizes the key objective of resolving the affordability issue once so it does not need to be revisited or extended at an uncertain cost in the future. Although we may get some debate, the difference between 30 year affordability and the "useful life" approach is not that significant in terms of project economics (in present value terms). It is significant and necessary that affordability restrictions be subordinated to conventional financing in order for projects to be feasible. It is also likely that affordable projects will involve sources of subsidy financing that are requiring long term affordability.
IBBUE OF AFFORDABILITY TENURE AND DEBIGN OF FOR-SALE PROGRAR
Currently the draft inclusionary ordinance has for-sale units remaining affordable for thirty (30) years with a City option to buy at each resale or at the end of 30 years as with rental units.
Although the 30 year affordability term does not start again at each resale, the City's option to buy at the "affordable price" at each resale and at the end of 30 years would, in effect, guarantee continued affordability.
I have a concern about the for-sale program which leads me to suggest a more flexible approach to for-sale units for first-time homebuyers. An approach such as called for in the Ordinance ties affordability to a unit permanently and requires very intense administration of resales to subsequent low-income buyers. It requires complicated price setting, potential infusions of additional subsidy and great difficulty in providing at least some homeownership benefits to the participants (i.e. shared appreciation).
A more flexible and less administratively burdensome approach would involve the following:
0 Establish that for-sale target units will be re-sold at market price.
0 Upon resale, the seller's first mortgage is repaid. The City's 1Rsilent18 second trust deed* is repaid and remaining appreciation is shared based on the initial ratio of contribution by the buyer and City.
0 The City's VecapturedRV subsidy will be deposited with financial institutions and re-loaned as 88silent@1 second loan* to new low-income eligible buyers making their choice of homes in the private market, subject to pre- established limitations on purchase prices and amount of the 18silent1a second.
This approach has a number of advantages:
0 Less public administrative burden due to greater use of existing private market institutions and mechanisms.
0 Banks have the capacity to administer such a program.
0 Greater choice/flexibility for eligible homebuyers and eventual removal of low-income stigma from specific units.
0 Potentially greater numbers of households served. '
0 Allows for equity sharing with each buyer who sells . ..gives essential motivating benefits of homeownership.
l The City’s l Silent= second trust deed is initially the Uidy valw? built into the first sale. That
is, it is difference between the mrket price md the affordable price to a low-income buyer. This is
a %iLetV Loan for the initial end s&seqwnt buyers because it uill have either deferred or no
peymnts.
h
Interestingly, the new Federal HOME Block Grant Program has revised their guidelines on first-time homebuyer programs to allow this "recapture and re-lend" approach. I think the difficulties of the other approach prompted this.
I believe these suggestions advance the purpose of the Inclusionary Ordinance as we try to convert it into a workable affordable housing program. The affordability tenure issue (for rental) is certainly a policy call; however, the first-time homebuyer suggestion, in my opinion, is more a matter of program design.
EVAN E. BECKER
:a1