HomeMy WebLinkAbout2000-03-14; City Council; 15648; Inclusionary Housing Ordinance113 *- h t ,
CITY OF CARLSBAD -AGENDA BILL 6)
I 57 ,’
AB# 15t4Y TITLE- REPEAL AND RE-ENACTMENT OF CARLSBAD
iiiiklPAL CODE CHAPTER 21.85 - INCLUSIONARY
DEPT. HD.
MTG. 03/14/00 HOUSING ORDINANCE CITY ATTY. @?
DEPT. CA CITY MGR.
RECOMMENDED ACTION:
Introduce Ordinance No. /ifs- 531 repealing and re-enacting Chapter 21.85
(Inclusionary Housing Ordinance) of the darlsbad Municipal Code.
ITEM EXPLANATION
At its meetings of February 8, 2000 and February 15, 2000, the Council carefully
considered the public testimony and evidence that was presented at the hearing
including the positions expressed by developers. Council approved resolutions
authorizing the Local Coastal Program Amendment 99-06 (LCPA 99-06) and Zone
Code Amendment 99-08 (ZCA 99-08), and approving the related Negative Declaration
based upon the findings contained therein, repealing and re-enacting Chapter 21.85 of
the Carlsbad Municipal Code. The Council also directed the City Attorney to return
with Ordinance NS-535 as suggested for modification for subsequent reintroduction
and approval at a future meeting. The Council should satisfy itself that the ordinance
fully represents these stated modifications, which are summarized as follows:
l Clarified the definition of total residential units.
l Clarified the manner in which the number of onsite and offsite inclusionary units are
calculated, for example:
Example 1: ’
Total residential units = 15% lnclusionary units plus 85% Market rate units. If the final
decision making authority approves 100 total residential units, then the lnclusionary
requirement equals 15% of the “Total” or 15 units (100 x .I 5 = 15). The allowable
market rate units would be 85% of the “Total” or 85 units.
Example 2:
If the inclusionary units are to be provided offsite, the total number of inclusionary units
shall be calculated according to the total number of market rate units approved by the
final decision-making authority. If 100 market rate units are approved, then this total is
divided by .85 which provides a total residential unit count (100 +- .85 = 117). The 15%
requirement is applied to this “total” (117 units) which equals the inclusionary unit
requirement (117 x .I 5 = 17.6 units).
l Clarified that alternatives to the construction of inclusionary units may be approved by
the City Council in appropriate cases.
l Continued the restriction of the payment of in-lieu fees to residential developments of
less than seven units.
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FISCAL IMPACT
The fiscal impact is as previously reported to the City Council on Agenda Bill No.
15,617.
ENVIRONMENTAL REVIEW:
A negative Declaration was issued for the subject project by the Planning Department
on October 22, 1999 and approved by the Planning Commission in Resolution No.
4708 on January 19,200O and City Council on February 15,200O.
EXHIBIT
1. Ordinance No. N5- 53 c
3. Redline/Strikeout version of ordinance
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EXHIBIT 1
ORDINANCE NO. NS- 535
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21
OF THE CARLSBAD MUNICIPAL CODE AND THE
LOCAL COASTAL PROGRAM BY THE REPEAL AND
REENACTMENT OF CHAPTER 21.85 REGARDING
AFFORDABLE HOUSING UNITS FOR LOWER-INCOME
HOUSEHOLDS AND IN-LIEU FEES.
CASE NAME: INCLUSIONARY HOUSING ORDINANCE
AMENDMENT
CASE NO: ZCA 99-08/LCPA 99-06
WHEREAS, Government Code Section 65584(a) requires localities to
address the Regional Share housing needs for persons of all income levels in their
General Plan Housing Elements; and
WHEREAS, based upon its Housing Element, the City of Carlsbad finds that
Carlsbad is experiencing a lack of housing affordable to lower-income households;
and
WHEREAS, new residential development which does not include nor
contribute toward housing for lower income households will only serve to aggravate
the current affordable housing shortage and create additional need for affordable
lower income housing by reducing the supply of residential land available for
affordable housing development and increasing the population and the demand for
community services businesses staffed by lower wage employees; and
WHEREAS, in 1993, the mandatory lnclusionary Housing Program was
implemented within the City’s Housing Element as a viable program available to the
City to assist it in achieving its Housing Element objectives for lower-income units;
and
WHEREAS, the City‘s Housing Element and this chapter identify programs
to provide technical, financial, and standards flexibility, offsets and incentives, to
facilitate inclusionary housing development;
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WHEREAS, on August 12, 1999, the Housing Commission held a public
meeting to consider a recommendation to the Planning Commission and City
Council to amend Title 21 of the Carlsbad Municipal Code by the repeal and
reenactment of Chapter 21.85 regarding affordable housing units for lower-
income households and in-lieu fees; and
WHEREAS, at said public meeting, upon hearing and considering all
testimony, if any, of all persons desiring to be heard, said Commission considered
all factors relating to the repeal and reenactment of Chapter 21.85, and voted to
recommend approval of said modifications; and
WHEREAS, on January 19, 2000, the Planning Commission held a public
meeting to consider a recommendation to the City Council to amend Title 21 of
the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85
regarding affordable housing units for lower-income households and in-lieu fees;
and
WHEREAS, at said public meeting, upon hearing and considering all
testimony, if any, of all persons desiring to be heard, said Commission considered
all factors relating to the repeal and reenactment of Chapter 21.85.
The City Council of the City of Carlsbad, California does ordain as follows:
SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended by the
repeal and reenactment of Chapter 21.85 to read as follows:
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Sections:
21.85.010
21.85.020
21.85.030
21.85.035
21.85.040
21.85.050
21.85060
21.85.070
21.85.080
21.85.090
21.85100
21.85.110
21.85120
21.85130
21.85.140
21.85.145
21.85.150
21.85.160
21.85.170
21.85.180
21.85.190
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“Chapter 21.85
INCLUSIONARY HOUSING
Purpose and Intent.
Definitions.
lnclusionary Housing Requirement.
New Master Plans and Specific Plans.
Affordable Housing Standards.
Calculating the Required Number of lnclusionary Units.
Incentive Credit Adjustment to the lnclusionary
Requirement.
Alternatives to Construction of lnclusionary Units.
Combined lnclusionary Housing Projects.
Creation of lnclusionary Units Not Required .
Offsets to the Cost of Affordable Housing Development.
In-lieu Fees.
Collection of Fees.
Preliminary Project Application and Review Process.
Affordable Housing Agreement as a Condition of
Development.
Agreement Processing Fee.
Agreement/Amendments.
Pre-existing Approvals.
Enforcement.
Savings Clause.
Separability of Provisions.
21.85010. Pureose and Intent.
The purpose and intent of this chapter is as follows:
A. It is an. objective of the City, as established by the Housing
Element of the City’s General Plan, to ensure that all residential development,
including all Master Planned and Specific Planned communities and all residential
subdivisions provide a range of housing opportunities for all identifiable economic
segments of the population, including households of lower and moderate income. It
is also the policy of the City to:
1. Require that a minimum of fifteen (15%) percent of all
approved residential development be restricted to and affordable to lower-income
households; subject to adjustment based on the granting of certain incentives;
2. Require that for those developments which provide ten or
more units affordable to lower-income households, at least ten (10%) percent of the
lower-income units shall have three or more bedrooms;
3. Under certain conditions, allow alternatives to onsite
construction as a means of providing affordable units; and
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4. In specific cases, allow inclusionary requirements to be
satisfied through the payment of an in-lieu fee as an alternative to requiring
inclusionary units to be constructed.
B. It is the purpose of this chapter to ensure the implementation of
the City objective and policy stated in subsection A.
C. Nothing in this chapter is intended to create a mandatory duty on the part of
the City or its employees under the Government Tort Claims Act and no cause of
action against the City or its employees is created by this chapter that would not arise
independently of the provisions of this chapter.
21.85020. Definitions.
Whenever the following terms are used in this Chapter, they shall have the
meaning established by this section:
A. “Affordable housing” means housing for which the allowable
housing expenses paid by a qualifying household shall not exceed a specified
fraction of the gross monthly income, adjusted for household size, for the following
classes of housing:
Extremely low-income, rental or for-sale units: thirty
(30%) percent of thJ*gross monthly income, adjusted for household size, at thirty
(30%) percent of the County median income;
Very low-income, rental and for-sale units: thirty (30%)
percent of the grosz-monthly income, adjusted for household size, at fifty (50%)
percent of the County median income;
3. Low-income, for-sale units: thirty (30%)’ percent of the
gross monthly income, adjusted for household size, at eighty (80%) percent of the
County median income; and
4. Low-income, rental units: thirty (30%) percent of the gross
monthly income, adjusted for household size, at seventy (70%) percent of the County
median income.
B. “Affordable housing agreement” means a legally binding
agreement between a Developer and the City to ensure that the inclusionary
requirements of this chapter.are satisfied. The agreement establishes, among other
things, the number of required inclusionary units, the unit sizes, location, affordability
tenure, terms and conditions of affordability and unit production schedule.
C. “Allowable housing expense” means the total monthly or annual
recurring expenses required of a household to obtain shelter. For a for-sale unit,
allowable housing expenses include loan principal and interest at the time of initial
purchase by the homebuyer, allowances for property and mortgage insurance,
property taxes, homeowners association dues and a reasonable allowance for utilities
as defined by the Federal Regulations for the Tenant Based Rental Assistance
Program. For a rental unit, allowable housing expenses include rent and a utility
allowance as established and adopted by the City of Carlsbad Housing Authority, as
well as all monthly payments made by the tenant to the lessor in connection with use
and occupancy of a housing unit and land and facilities associated therewith,
including any separately charged fees, utility charges, or service charges assessed
by the lessor and payable by the tenant.
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D. “Affordable housing policy team” shall consist of the Community
Development Director, Planning Director, Housing and Redevelopment Director,
Administrative Services Director/Finance Director, and a representative of the City
Attorney’s office.
E. “Combined inclusionary housing project,, means separate
residential development sites which are linked by a contractual relationship such that
some or all of the inclusionary units which are associated with one development site
are produced and operated at a separate development site or sites.
F. “Conversion” means the change of status of a dwelling unit from
a purchased unit to a rental unit or vice versa.
G. “Density bonus (new residential construction),, means a
minimum density increase of at least twenty-five (25%) percent over either the
Growth Management Control Point of the applicable General Plan designation, as
defined in Section 21.90.045 of this Title, or the otherwise maximum allowable
residential density as specified by the applicable Master Plan or Specific Plan, at the
time of application.
H. “Extremely low-income household” means those households
whose gross income is equal to or less than thirty-five (35%) percent of the median
income for San Diego County as determined by the U.S. Department of Housing and
Urban Development.
I. “Financial assistance” means assistance to include, but not be
limited to, the subsidization of fees, infrastructure, land costs, or construction costs,
the use of redevelopment set-aside funds, Community Development Block Grant
(CDBG) funds, or the provision of other direct financial aid in the form’of cash transfer
payments or other monetary compensation, by the City of Carlsbad.
J. “Growth management control point,, shall have the same
meaning as provided in Chapter 21.90, Section 21.90.045 of this Title.
K. “Incentives” means a reduction in the inclusionary housing
requirement granted in return for the provision of certain desired types of affordable
housing or related amenities as determined by the City Council.
L. “lnclusionary housing project,, means a new residential
development or conversion of existing residential buildings which has at least fifteen
(15%) percent of the total units reserved and made affordable to lower-income
households as required by this Chapter.
M. “Inclusionary unit,, means a dwelling unit that will be offered for
rent or sale exclusively to and which shall be affordable to lower-income households,
as required by this chapter.
N. “Income” means any monetary benefits that qualify as income in
accordance with the criteria and procedures used by the City of Cadsbad Housing
and Redevelopment Department for the acceptance of applications and
recertifications for the Tenant Based Rental Assistance Program, or its successor.
0. ‘Low-income household” means those households whose gross
income is more than fifty (50%) percent but does not exceed eighty (80%) percent of
the median income for San Diego County as determined annually by the US.
Department of Housing and Urban Development.
P. “Loweriincome household” means low-income, very low-income
and extremely low-income households, whose gross income does not exceed eighty
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(80%) percent of the median income for San Diego County as determined annually
by the U.S. Department of Housing and Urban Development.
Q. “Market-rate unit” means a dwelling unit where the rental rate or
sales price is not restricted either by this chapter or by requirements imposed through
other local, state, or federal affordable housing programs.
R. “Offsets” means concessions or assistance to include, but not be
limited to, direct financial assistance, density increases, standards modifications or
any other financial, land use, or regulatory concession which would result in an
identifiable cost reduction enabling the provision of affordable housing.
S. “Residential development” means any new residential
construction of rental or for-sale units; or development revisions, including those with
and without a Master Plan or Specific Plan, planned unit developments, Site
Development Plans, mobilehome developments and conversions of apartments to
condominiums, as well as dwelling units for which the cost of shelter is included in a
recurring payment for expenses, whether or not an initial lump sum fee is also
required.
T. “Target income level” means the income standards for extremely
low, very low and low-income levels within San Diego County as determined annually
by the U.S. Department of Housing and Urban Development, and adjusted for family
size.
U. “Total residential units” means the total units approved by the
final decision making authority. Total residential units are composed of both market
rate units and inclusionary units.
V. “Very low-income household” means a household earning a
gross income equal to fifty (50%) percent or less of the median income for San Diego
County as determined annually by the U.S. Department of Housing and Urban
Development.
21.85030. lnclusionarv Housina Requirement.
The inclusionary housing requirements of this chapter shall apply as follows:
A. This chapter shall apply to all residential market-rate dwelling
units resulting from new construction of rental and “for-sale” projects, as well as the
conversion of apartments to condominiums:
B. For any residential development or development revision of
seven or more units, not less than fifteen (15%) percent of the total units approved
shall be constructed and restricted both as to occupancy and affordability to lower-
income households.
C. For those developments which are required to provide ten or
more units affordable to lower income households, at least ten (10%) percent of the
lower income units shall have three or more bedrooms.
D. This chapter shall not apply to the following:
1. Existing residences which are altered, improved, restored,
repaired, expanded or extended, provided that the number of units is not increased,
except that this chapter shall pertain to the subdivision of land for the conversion of
apartments to condominiums;
2. Conversion of a mobilehome park pursuant to Section
21.37.120 of the Code;
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3. The construction of a new residential structure which
replaces a residential structure that was destroyed or demolished within two years
prior to the application for a building permit for the new residential structure, provided
that the number of residential units is not increased from the number of residential
units of the previously destroyed or demolished residential structure;
4. Any residential unit which is accessory as defined in
Section 21.04.020 of this Code; or
5. Second dwelling units not constructed to fulfil1
inclusionary housing requirements and developed in accordance with Section
21 .10.015 of this Code;
6. Any project or portion of a project which is a commercial
living unit as defined in Section 21.04.093 of this code; and
7. Those residential units which have obtained affordable
housing approvals prior to the effective date of this ordinance, as set forth in Section
21.85160 of this chapter.
21.85.035s
New Master Plans and Specific Plans shall submit an inclusionary housing plan as
follows:
A. All Master Plans and Specific Plans approved on or after the
effective date of this -Ordinance are required by this Chapter to provide an
inclusionary housing plan within the Master Plan or Specific Plan document. This
inclusionary housing plan will include appropriate text, maps, tables, or figures to
establish the basic framework for implementing the requirements of’this chapter. It
shall establish, as a minimum, but not be limited to, the following:
1. The number of market rate units in the Master Plan or
Specific Plan;
2. The number of required inclusionary units for lower-
income households over the entire Master Plan or Specific Plan;
3. The designated sites for the location of the inclusionaty
units, including but not limited to any sites for locating offsite inclusionary housing
projects or combined inclusionary housing projects;
4. A general provision stipulating that an affordable housing
agreement shall be made a condition of all future discretionary permits for
development within the Master or Specific Plan area such as tentative maps, parcel
maps, planned unit developments and Site Development Plans. The provision shall
establish that all relevant terms and conditions of any affordable housing agreement
shall be filed and recorded as a restriction on the project as a whole and those
individual lots, units or projects which are designated as inclusionary units. The
affordable housing agreement shall be consistent with Section 21.85140 of this
chapter.
B. The location and phasing of inclusionary dwelling units may be
modified as a minor amendment to the Master Plan pursuant to Section 21.38.120 of
this Title if the City Council authorizes such modifications when approving the Master
Plan.
C. All existing Master Plans or Specific Plans proposed for major
amendment, pursuant to Section 21.38.120 of this Code, shall incorporate into the
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C
amended Master Plan or Specific Plan document an inclusionary housing plan,
consistent with this section of this chapter.
21.85040. Affordable Housina Standards.
The affordable housing standards are as follows:
A. All residential developments are subject to and must satisfy the
inclusionary housing requirements of this chapter, notwithstanding a Developer’s
request to process a residential development under other program requirements,
laws or regulations, including but not limited to Chapter 21.86 (Residential Density
Bonus) of this Code.
B. Whenever reasonably possible, inclusionary units should be built
on the residential development project site.
C. The required inclusionary units shall be constructed concurrently
with market-rate units unless both the final decision-making authority of the City and
Developer agree within the affordable housing agreement to an alternative schedule
for development.
D. lnclusionaty rental units shall remain restricted and affordable to
the designated income group for 55 years. In addition to the income of a targeted
group, limitations on assets may also be used as a factor in determining eligibility for
rental or for sale units. Notwithstanding anything to the contrary in this Chapter, no
inclusionary unit shall be rented for an amount which exceeds ninety (90%) percent
of the actual rent charged for a comparable market unit in the same development, if
any.
E. After the initial sale of the inclusionary for-sale ‘units at a price
affordable to the target income level group, inclusionary for-sale units shall remain
affordable to subsequent income eligible buyers pursuant to a resale restriction with a
term of thirty (30) years or for-sale units may be sold at a market price to other than
targeted households provided that the sale shall result in the recapture by the City or
its designee of a financial interest in the units equal to the amount of subsidy
necessary to make the unit affordable to the designated income group and a
proportionate share of any appreciation. Funds recaptured by the City shall be used
in assisting other eligible households with home purchases at affordable prices. To
the extent possible, projects using for-sale units to satisfy inclusionary requirements
shall be designed to be compatible with conventional mortgage financing programs
including secondary market requirements.
F. lnclusionaty units should be located on sites that are in proximity
to or will provide access to employment opportunities, urban services, or major roads
or other transportation and commuter rail facilities and that are compatible with
adjacent land uses.
G. The design of the inclusionary units shall be reasonably consistent
or compatible with the design of the total project development in terms of
appearance, materials and finished quality.
H. lnclusionary projects shall provide a mix of number of bedrooms
in the affordable dwelling units in response to affordable housing demand priorities of
the City.
I. No building permit shall be issued, nor any development
approval granted for a development which does not meet the requirements of this
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chapter. No inclusionary unit shall be rented or sold except in accordance with this
chapter.
21.85.050. Calculatina the Required Number of lnclusionarv Units.
Subject to adjustments for incentives, the required number of lower-income
inclusionary units shall be fifteen (I 5%) percent of the total residential units, approved
by the final decision-making authority. If the inclusionary units are to be provided
within an offsite combined or other project, the required number of lower income
inclusionary units shall be fifteen (15%) percent of the total residential units to be
provided both onsite and/or offsite. Subject to the maximum density allowed per the
growth management control point or per specific authorization granted by the
Planning Commission or City Council, fractional units for both market rate and
inclusionaty units of .5 will be rounded up to a whole unit. If the rounding calculation
results in a total residential unit count which exceeds the maximum allowed, neither
the market rate nor the inclusionary unit count will be increased to the next whole
number.
Example I:
Total residential units = 15% lnclusionary units plus 85% Market rate units. If
the final decision making authority approves 100 total residential units, then the
lnclusionary requirement equals 15% of the “Total” or 15 units (100 X .I 5 = 15). The
allowable market rate units would be 85% of the “Total” or 85 units.
Example 2:
If the inclusionary units are to be provided offsite, the total number of
inclusionary units shall be calculated according to the total number of market rate
units approved by the final decision-making authority. If 100 market rate units are
approved, then this total is divided by .85 which provides a total residential unit count
(100 + .85 = 117). The 15% requirement is applied to this ‘Total” (117 units) which
equals the inclusionary unit requirement (117 X .I 5 = 17.6 units).
21.85060. Incentive Credit Adiustment to the lnclusionarv Requirement.
Certain types of affordable housing are relatively more desirable in satisfying
the City’s state-mandated affordable housing requirement as well as the City’s
Housing Element goals, objectives and policies, and these may change over time.
As an incentive to assist the City in providing this housing, Developers may
receive additional (more than one unit) credit for each of such units provided, thereby
reducing the total inclusionary housing requirement to less than fifteen (15%) percent
of all residential units approved. A schedule of inclusionary housing incentive credit
specifying how credit may be earned shall be adopted by the City Council and made
available to developers subject to this chapter.
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21.85.070. Alternatives to Construction of lnclusionarv Units.
Notwithstanding any contrary provisions of this chapter, at the sole discretion
of the City Council, the City may determine that an alternative to the construction of
new inclusionary units is acceptable.
A. The City Council may approve alternatives to the construction of
new inclusionary units where the proposed alternative supports specific Housing
Element policies and goals and assists the City in meeting its state housing
requirements. Such determination shall be based on findings that new construction
would be infeasible or present unreasonable hardship in light of such factors as
project size, site constraints, market competition, price and product type disparity,
developer capability, and financial subsidies available. Alternatives may include, but
not be limited to, acquisition and rehabilitation of affordable units, conversion of
existing market units to affordable units, construction of special needs housing
projects or programs (shelters, transitional housing, etc.), and the construction of
second dwelling units.
B. Second dwelling units constructed to satisfy an inclusionary
housing requirement shall be rent restricted to affordable rental rates, and renters
shall be income-qualified, as specified in the applicable affordable housing
agreement. In no event shall a developer be allowed to construct more than a total of
15 second dwelling units in any given development, Master Plan, or Specific Plan, to
satisfy an inclusionary requirement.
C. Contribution to a special needs housing project or program may
also be an acceptable alternative based upon such findings. The requisite
contribution shall be calculated in the same manner as an in-lieu fee per Section
21.85.110.
21.85.080. Combined lnclusionarv Housinq Proiects.
An affordable housing requirement may be satisfied with offsite construction as
follows:
A. When it can be demonstrated by a developer that the goals of
this chapter and the City’s Housing Element would be better served by allowing some
or all of the inclusionary units associated with one residential project site to be
produced and operated at an alternative site or sites, the resulting linked inclusionary
project site(s) is a combined inclusionary housing project.
B. It is at the sole discretion of the City Council to authorize the
residential site(s) which form a combined inclusionary housing project. Such decision
shall be based on findings that the combined project represents a more effective and
feasible means of implementing this chapter and the goals of the City’s Housing
Element. Factors to be weighed in this determination include: the feasibility of the
onsite option considering project size, site constraints, competition from other
projects, difficulty in integrating due to significant price and product type disparity, and
lack of capacity of the onsite development entity to deliver affordable housing. Also
to be considered are whether the offsite option offers greater feasibility and cost
effectiveness, particularly regarding potential local public assistance and the City’s
affordable housing financial assistance policy, location advantages such as proximity
to jobs, schools, transportation, and services, diminished impact on other existing
developments, capacity of the development entity to deliver the project, and
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satisfaction of multiple developer obligations that would be difficult to satisfy with
multiple projects.
C. All agreements between parties to form a combined inclusionary
housing project shall be made a part of the affordable housing agreement required for
the site(s), which affordable housing agreement(s) shall be approved by Council.
D. Location of the combined inclusionary housing project is limited
to sites within the same City quadrant in which the market-rate units are located, or
sites which are contiguous to the quadrant in which the market-rate units are
proposed.
21.85.090. Creation of lnclusionarv Units Not Required.
lnclusionary units created which exceed the final requirement for a project
may, subject to City Council approval in the affordable housing agreement, be utilized
by the developer to satisfy other inclusionary requirements for which it is obligated or
market the units to other developers as a combined project subject to the
requirements of Section 21.85.080.
21.85.100. Offsets to the Cost of Affordable Housina Development.
The City shall consider making offsets available to developers when necessary
to enable residential projects to provide a preferable product type or affordability in
excess of the requirements of this chapter. Offsets will be offered by the City to the
extent that resources and programs for this purpose are available to the City and
approved for such use by the City Council, and to the extent that the residential
development, with the use of offsets, assists in achieving the City’s housing goals.
To the degree that the City makes available programs to provide offsets, developers
may make application for such programs. Evaluation of requests for offsets shall be
based on the effectiveness of the offsets in achieving a preferable product type
and/or affordability objectives as set forth within the Housing Element; the capability
of the development team; the reasonableness of development costs and justification
of subsidy needs; and the extent to which other resources are used to leverage the
requested offsets. Nothing in this chapter establishes, directly or through implication,
a right to receive any offsets from the City or any other party or agency to enable the
Developer to meet the obligations established by this chapter. Projects are entitled to
density bonuses and/or other incentives in accordance with provisions of state law,
pursuant to the provisions of Chapter 21.86. of this code. Any offsets approved by
the City Council and the housing affordability to be achieved by use of those offsets
shall be set out within the affordable housing agreement pursuant to Section
21.85.140 or, at the City’s discretion in a subsequent document. Furthermore,
developers are encouraged to utilize local, state or federal assistance, when
available, to meet the affordability standards set forth in Sections 21.85.030 and
21.85.040.
21.85.110. In-lieu Fees.
Payment of a fee in-lieu of construction of affordable units may be appropriate
in the following circumstances:
A. For any residential development or development revision of less
than seven units, the inclusionary requirements may be satisfied through the payment
to the City of an in-lieu fee.
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B. The in-lieu fee to be paid for each market-rate dwelling unit shall
be fifteen (15%) percent of the subsidy needed to make affordable to a lower-income
household one newly-constructed, typical attached-housing unit. This subsidy shall
be based upon the City Council’s determination of the average subsidy that would be
required to make affordable typical, new two-bedroom/one bath and three-
bedroom/two-bath for-sale units and rental units, each with an assumed affordability
tenure of at least 55 years.
C. The dollar amount and method of payment of the in-lieu fees
shall be fixed by a schedule adopted, from time to time, by resolution of the City
Council. Said fee, shall be assessed against the market-rate lots/units of a
development.
D. All in-lieu fees collected hereunder shall be deposited in a
Housing Trust Fund. Said fund shall be administered by the City and shall be used
only for the purpose of providing funding assistance for the provision of affordable
housing and reasonable costs of administration consistent with the policies and
programs contained in the Housing Element of the General Plan. _ - E. At the discretion of the City Council, where a developer is
authorized to pay a fee in-lieu of development, an irrevocable dedrcatron of land or
other non-monetary contribution of a value not less than the sum of the otherwise
required in-lieu fee may be accepted as an alternative to paying the in-lieu fee if it is
determined that the non-monetary contribution will be effectual in furthering the goals
and policies of the Housing Element and this Chapter. The valuation of any land
offered in-lieu shall be determined by an appraisal made by an agent mutually agreed
upon by the City and the developer. Costs associated with the appraisal shall be
borne by the developer.
F. Where a developer is authorized to pay a fee in-lieu of
development of affordable housing units, any approvals shall be conditioned upon a
requirement to pay the in-lieu fee in an amount established by resolution of the City
Council in effect at the time of payment.
G. As an alternative to paying an in-lieu fee(s), inclusionary housing
requirements may be satisfied either through a combined inclusionary housing
project, pursuant to Section 21.85.080 of this chapter or new construction of
inclusionary units subject to approval of the final decision-making authority.
21.85.120. Collection of fees.
All fees collected under this chapter shall be deposited into a Housing Trust
Fund and shall be expended only for the affordable housing needs of lower-income
households, and reasonable costs of administration consistent with the purpose of
this chapter.
21.85.130. Preliminarv Proiect ADDlication and Review Process.
The preliminary project application/review process shall be as follows:
A. A developer of a residential development not subject to a Master
Plan or Specific Plan, proposing an inclusionary housing project shall have an
approved Site Development Plan prior to execution of an affordable housing
agreement for the project. The developer may submit a preliminary application to the
Housing and Redevelopment Director prior to the submittal of any formal applications
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for such housing development. The preliminary application shall include the following
information if applicable:
1. A brief description of the proposal including the number of
inclusionary units proposed;
2. The Zoning, General Plan designations and assessors
parcel number(s) of the project site;
3. A site plan, drawn to scale, which includes: building
footprints, driveway and parking layout, building elevations, existing contours and
proposed grading; and
4. A letter identifying what specific offsets and/or
adjustments are being requested of the City. Justification for each request should
also be included.
B. Within thirty days of receipt of the preliminary application by the
Planning Director for projects not requesting offsets or incentive adjustments, or
ninety days for projects requesting offsets or incentive adjustments the department
shall provide to an applicant, a letter which identifies project issues of concern, the
offsets and incentive adjustments that the Community Development Director can
support when making a recommendation to the final decision-making authority, and
the procedures for compliance with this chapter. The applicant shall also be provided
with a copy of this chapter and related policies, the pertinent sections of the California
codes to which reference is made in this chapter and all required application forms.
21.85.140. Affordable Housinca Aareement as a Condition of Dev@opment.
This chapter requires the following:
A. Developers subject to this chapter shall demonstrate compliance
with this chapter by executing an affordable housing agreement prepared by the City
Housing and Redeveloper Director and submitted to the developer for execution.
Agreements which conform to the requirements of this section and which do not
involve requests for offsets and/or incentives, other than those permitted by right, if
any, shall be reviewed by the Affordable Housing Policy Team and approved by the
Community Development Director or his designee. Agreements which involve
requests for offsets and/or .incentives, other than those permitted by right, shall
require the recommendation of the Housing Commission and action by the City
Council as the final decision-maker. Following the approval and execution by all
parties, the affordable housing agreement with approved Site Development Plan shall
be recorded against the entire development, including market-rate lots/units and the
relevant terms and conditions therefrom filed and subsequently recorded as a
separate deed restriction or regulatory agreement on the affordable project individual
lots or units of property which are designated for the location of affordable units. The
approval and execution of the Affordable Housing Agreement shall take place prior to
final map approval and shall be recorded upon final map recordation or, where a
map is not being processed, prior to the issuance of building permits for such
lots/units. The affordable housing agreement may require that more specific project
and/or unit restrictions be recorded at a future time. The affordable housing
agreement shall bind all future owners and successors in interest for the term of
years specified therein.
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B. An affordable housing agreement, for which the inclusionary
housing requirement will be satisfied through new construction of inclusionary units,
either onsite or offsite, shall establish, but not be limited to, the following:
1. The number of inclusionary dwelling units proposed, with
specific calculations detailing the application of any incentive adjustment credit;
2. The unit square footage, and number of bedrooms;
3. The proposed location of the inclusionary units;
4. Amenities and services provided, such as daycare, after
school programs, transportation, job training/employment services and recreation;
5. Level and tenure of affordability for inclusionary units;
6. Schedule for production of dwelling units;
7. Approved Offsets provided by the City;
8. Where applicable, requirements for other documents to
be approved by the City, such as marketing, leasing and management plans;
financial assistance/loan documents; resale agreements: and monitoring and
compliance plans;
9. Where applicable, identification of the affordable housing
developer and agreements specifying their role and relationship to the project; and
C. An affordable housing agreement, for which the inclusionary
housing requirement will be satisfied through payment to the City of any in-lieu
contributions other than fee monies, such as land dedication, shall include the
method of determination, schedule and value of total in-lieu contributions.
D. An affordable housing agreement will not be required for projects
which will be satisfying their inclusionary housing requirement through payment to the
City of an in-lieu fee.
21.85145. Aweement Processina Fee.
The City Council may establish by resolution, fees to be paid by the developer
at the time of preliminary project application to defray the City’s cost of preparing
and/or reviewing all inclusionary housing agreements.
21.85150. Aqreement Amendments.
Any amendment to an affordable housing agreement shall be processed in the
same manner as an original application for approval, except as authorized in Section
21.85.035(B). Amendments to affordable housing agreements initially approved prior
to the effective date of this ordinance shall be entitled to consideration under the
ordinance provisions superseded by this ordinance.
21.85.155. Expiration of Affordabilitv Tenure.
The City or its designee shall have a one-time first right of refusal to purchase
any project containing affordable units offered for sale at the end of the minimum
tenure of affordability for rental projects. The first right of refusal to purchase the
rental project shall be submitted in writing to the Housing and Redevelopment
Director. Within ninety days of its receipt, the City shall indicate its intent to exercise
the first right of refusal for the purpose of providing affordable housing.
21.85.160. Pre-existinq Amwovals.
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Any residential developments for which a Site Development Plan for the
affordable housing component of the development was approved prior to the effective
date of this ordinance shall be subject to the ordinance in effect at the time of the
approval.
21.85.170. Enforcement.
Enforcement provisions are as follows:
A. The provisions of this chapter shall apply to all developers and
their agents, successors and assigns proposing a residential development governed
by this chapter. No building permit or occupancy permit shall be issued, nor any
entitlement granted, for a project which is not exempt and does not meet the
requirements of this chapter. All inclusionary units shall be rented or owned in
accordance with this chapter.
B. The City may institute any appropriate legal actions or
proceedings necessary to ensure compliance with this chapter, including but not
limited to actions to revoke, deny or suspend any permit or development approval.
C. Any individual who sells or rents a restricted unit in violation of
the provisions of this chapter shall be required to forfeit all monetary amounts so
obtained. Such amounts shall be added to the City’s Housing Trust Fund.
21.85.180. Savinas Clause.
All code provisions, ordinances, and parts of ordinances in conflict with the
provisions of this chapter are repealed. The provisions of this chapter, insofar as they
are substantially the same as existing code provisions relating to ttie same subject
matter shall be construed as restatements and continuations thereof and not as new
enactments. With respect, however, to violations, rights accrued, liabilities accrued,
or appeals taken, prior to the effective date of this ordinance, under any chapter,
ordinance, or part of an ordinance hereby otherwise repealed, all provisions of such
chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for
the purpose of sustaining any proper suit, action, or other proceedings, with respect
to any such violation, right, liability or appeal.
21.85.190. SeDarabilitv of Provisions.
If any provision of this chapter or the application thereof to any person or
circumstances is held invalid, the remainder of the chapter and the application of the
provision to other persons not similarly situated or to other circumstances shall not be
affected thereby.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its
adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it
to be published at least once in a publication of general circulation in the City of
Carlsbad within fifteen days after its adoption. (Notwifhsfanding the preceding, this
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ordinance shall not be effective within the Ctiy’s Coastal Zone until approved by the
California Coastal Commission.)
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
Council on the 14th dayof March ,
2000, and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the’city
of Carlsbad on the day of ,
20 -9 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
CLAUDE A. LEWIS, MAYOR
ATTEST:
LORRAINE M. WOOD, CITY. CLERK (SEAL)
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Sections:
21.85010
21.85.020
21.85.030
21.85.035
21.85.040
21.85.050
21.85.060
21.85.070
21.85.080
21.85.090
21.85.100
21.85.110 21.85.120
21.85.130
21.85.140
21.85.145
21.85.150
21.85.160
21.85.170
21.85.180
21.85.190
“Chapter 21.85
INCLUSIONARY HOUSING
Purpose and Intent.
Definitions. . . wlnclusionaty Housing Requirement.
New Master Plans or Specific Plans.
Affordable Housing Standards.-
quired Number of lnclusionary Unit&+
Adjustment to the lnclusionary
Requirement. rr.rr
AIterna fives to Construction of Inclusionary
Units&g&t&e+
cts.m
Not Required&g&W+&
In-lieu Pe es.g
Collection of Pees-.
Preliminary Project Application and Review
Process.kef3&e~ to #kc Co& cf ,%kfW3k
Affordable Housing Agreement as a Condition of
Development. D
Agreement Processing Pee.
Agreement/Amendments.kelt+ek of ,F
. . Savings Clause.- Separability of Provisions-
21.85010. Pumose and’lntent. The purpose and intent of this chapter is as follows:
/G
@A. It is an objective of the City, as established by the Housing Element of
the City’s General Plan’, to ensure that all residential development, in&ding all Master
Planned and Specific Planned communities and all residential subdivisions, provide a range
of housing opportunities for all identifiable economic segments of the population, including
households of lower and moderate income. It is also the policy of the City to: 1. Require that a minimum of fifteen (15%) percent of all . . approved residential development H#c ;,, L c: m . . . m be restricted to and affordable by to lower-income households; subject to
adjustment based on fhe granting of certain incentives;
2. Require that for those developments which provide ten or
,more units affordable to lower-income households, at least ten (70%) percent of the lower-
income units she&i- shall have three or more bedrooms; and
g Under certain condifions, allow alternatives to onsife
construction as a means of providing affordable units;
. . g /n specific cases,
allow inclusionary requirements to be satisfied through the payment of an in-lieu fee
as an alternative to requiring inclusionary units to be constructed on the ground; &j/3. It is the purpose of this chapter to ensure the implementation of the
City objective and policy stated in subsection (a) A.
(c)C. Nothing in this chapter is intended to create a mandatory duty on
&&a# the part of the City or its employees under the Government Tort Claims Act and no
cause of action against the City or its employees is created by this chapter that would not arise independently of the provisions of this chapter.
21.85020. Definitions.
Whenever the following terms are used in this chapter, they shall have the meaning
established by this section:
+4jA* “Affordable housing” means housing for which the allowable housing
expenses paid by a qualifying household shall not exceed a specified fraction of the gross
monthly income, adjusted for household size, for the following classes of housing:
Extremely low-income, renfal or for-sale units: fhirfy
(30%) percent of fh: ‘gross monfhly income, adjusted for household size, at thirty
(30%) percent of the County median income;
(A$!. Very low-income, - (state-a&&
federa&rental and *for-sale units: thirty (30%)
percent of the gross monthly income, adjusted for household size, at fifty (50%) percent of
the County median income; w3. Low-income, jfor-
sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at
eeventy eighty (80%) percent of the County median income; .
w. Low-income, 4
rental units: thirty (30%) percent of the gross monthly income, adjusted for household size, at seventy (70%) percent of the County median income;
(2)s. “Affordable housing agreement” means a legally binding agreement between a Developer and the City to ensure that the inclusionary requirements of this chapter
are satisfied. The agreement establishes, among other things, the number of required inclusionary units, the unit sizes, location, affordability tenure, terms and conditions of
affordability and unit production schedule.
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@jC. “Allowable housing expense” means the total monthly or annual
recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable
housing expenses include loan principal and interest at the time of initial purchase by the
homebuyer, allowances for property and mortgage insurance, property taxes, homeowners
association dues and a reasonable allowance for utilities as defined by the Federal
Regulations for the Se&M-8 Tenant Based Rental Assistance Program. For a rental unit,
allowable housing expenses include rent and a feafeRitlsle utility allowance #&t&k&s as established and adopted by the City of Carlsbad Housing Authority, as we// as a//
monthly paymenfs made by the tenant to the lessor in connection with use and
occupancy of a housing unit and land and facilities associated therewith, including
any separately charged fees, utility charges, or service charges assessed by the lessor
and payable by the tenant
Development Director, Planning Director, Housing and Redevelopment Director,
Administrative Services Director/Finance Director, and a representative of the Cify
A fforney’s office.
6% “Combined inclusionary housing project” means separate residential
development sites which are linked by a contractual relationship such that some or all of the
inclusionary units which are associated with one development site are produced and
operated at a separate development site or sites.
F-F. “Conversion” means the change of status of a dwelling unit from a
purchased unit to a rental unit or vice versa.
@)G. “Density bonus (new residential construction)” means a minimum
density increase of at least twenty-five (25%) percent over either the Growth Management
Control Point of the applicable General Plan designation, as defined in Section 21.90.045 of
this Title, or the otherwise maximum allowable residential density as specified by the
applicable Master Plan or Specific Plan, at the time of application.
M H. “Extremely low-income household” means those households
whose gross income is equal to or Iess than fhif?y (30%) percent of the median income
for San Diego County as determined by the U.S. Department of Housing and Urban
Development.
0) I. “Financial assistance” means assistance to include, but not be limited
to, the subsidization of fees, infrastructure, land costs, or construction costs, the use of
redevelopment set-aside funds, er Community Development Block Grant (CDBG) funds, or
the provision of other direct financial aid in the form of cash transfer payments or other
monetary compensation, by the City of Carlsbad.
w. “Growth Management Control Point” shall have the same meaning as provided in chapter 21.90, Section 21.90.045 of this Title.
OK. “Incentives” means a reduction in the inclusionary housing requirement granted in return for the provision of certain desired types of affordable housing or related
amenities as determined by the City Council.
3
&$)L. “lnclusionary housing project’ means a new residential development or
conversion of existing residential buildings which has at least fifteen (75%) percent e+five pereenkf the total units reserved and made affordable to lower-income households er
f as required by this chapter.
WM. “lnclusibnary unit” means a dwelling unit that will be offered for rent or
sale exclusively to and which shall be affordable to lower-income households, as required by
this chapter. @-$!N. “Income” means any monetary benefits that qualifyies as income in
accordance with the criteria and procedures used by the City of Carlsbad Housing and
Redevelopment Department for the acceptance of applications and recertifications for the Se&&&Tenant Based Rental Assistance Program, or its successor.
@6jO. “Low-income household” means those households whose gross
income is more than fifty (50%) percent but does not exceed eighty (80%) percent of the
median income for San Diego County as determined annually by the U.S. Department of
Housing and Urban Development.
WP. “Lower-income household” means low-income, an&very low-income
and extremely low-income households, whose gross income does not exceed eighty
(80%) percent of the median income for San Diego County as determined annually by the
U.S. Department of Housing and Urban Development.
WQ. “Market-rate unit” means a dwelling unit where the rental rate or sales
price is not restricted either by this chapter or by requirements imposed through other local,
state, or federal affordable housing programs.
limited to, direct financial assistance, density increases, standards modifications or
any other financial, land use, or regulatory concession which would result in an
identifiable cost reduction enabling the provision of affordable housing.
S. “Residential Development” means any new residential
construction of rental or for-sale units or development revisions, including those with
and without a Masfer Plan or Specific Plan, planned unit developments, Site
Development Plans, mobilehome developments and conversions of apartments to condominiums, as well as dwelling units for which the cost of shelter is included in a
retuning payment for expenses, whether or not an initial lump sum fee is also
required. @QT. ‘Target income level” means the income standards for extremely very
low, very low and low-income levels within San Diego County as determined annually by the
U.S. Department of Housing and Urban Development, and adjusted for family size.
WQU. “Base-Total residential units” means the total units
approved by the final decision making authority Total residential unifs are composed
of both market rate units and inclusionary units. 1
- 1 f22) “IJ,N xc fem+e#
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WV. “Very low-income household” means a household earning a gross
income equal to fifty (50%) percent or less of the median income for San Diego County as
determined annually by the U.S. Department of Housing and Urban Development.
21.85.030. V lnclusionarv Housina Reauirement. The inclusionary housing requirements of this chapter shall apply as follows:
@A. This chapter shall apply to all residential market-rate dwelling units
resulting from new construction of rental and “for-sale” projects, as well as the conversion of
apartments to &spaee condominiums within:
For any residential development or development revision of
seven or more-units, nof less fhan fifteen (75%) percent of the fofal units approved
shall be constructed and restricted both as to occupancy and affordability to lower-
income households.
C. For those developments which are required to provide fen or more units affordable to lower income households, at least fen (10%) percent of the
lower income units shall have three or more bedrooms. &jD. ) This chapter shall not apply to the
following:
repaired, expanded or extended, provided that the number of units is not increased, heweve~
except that this chapter shall pertain to the subdivision of land for the conversion of
apartments to a&paee condominiums;
2. Conversion of a mobilehome park pursuant to Section
27.37.720 of the Code;
@j@3.The construction of a new residential structure which replaces
a residential structure that was destroyed or demolished within two years prior to the
application for a building permit for the new residential structure, provided that the number of residential units is not increased from the number of residential units of the previously
destroyed or demolished residential structure;
&#+#.Any residential unit yhich is accessory as defined in Section
21.04.020 of this Cod]
ifdee&; or
5. Second Dwelling Units not constructed to fulfil
inclusionary housing requirements and developed in accordance with Section
21.10.015 of this Code;
6. Any project or portion of a project which is a commercial living unit as defined in Section 21.04.093 of this Code; and
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7. Those residential units which have obtained affordable
housing approvals prior to the effective date of this ordinance, as set forth in Section
21.85.760 of this chapter.
2 1.85.035 New Master Plans or Specific Plans
New Master Plans and Specific Plans shall submit an inclusionaty housing plan as follows:
A. Ail Master Plans and Specific Plans approved on or after the effective
date of this Ordinance are required by this chapter to provide an inclusionary housing plan
within the Master Plan or Specific Plan document. This inclusionary housing plan will include
appropriate text, maps, tables, or figures to establish the basic framework for implementing
the requirements of this chapter. It shall establish, as a minimum, but not be limited to, the
following:
7. The number of market rate units in the Master Plan or
Specific Plan;
2. The number of required inclusionary units for lower-
income households over the entire Master Plan or Specific Plan;
3. The designated sites for the location of the inclusionary . unifs, including but not limited to any sites for locating of/site inclusionary housing
projects or combined inclusionary housing projects; 4
4:
Agreement shall be made a condition of all future discretionary permits for
development within the Master or Specific Plan area such as tentative maps, parcel
maps, planned unit developments and Sife Development Plans. The provision shall
s establish that all relevant ferms and conditions of any Affordable housing Agreement
shall be filed and recorded as a restriction on the project as a whole and those
individual lots, units or projects which are designated as inclusionary unifs. The Affordable Housing Agreement shall be consistent with Section 21.85.140 of this
chapter.
6. The location and phasing of inclusionary dwelling units may be modified as a minor amendment to the Master Plan pursuant to Section 21.38.120 of
this Title if the City Council aufhorizes such modifications when approving the Master
Plan.
C. All existing Master Plans or Specific Plans proposed for major
amendmenf, pursuanf to Section 27.38.120 of this Code, shall incorporate info the
amended Master Plan or Specific Plan document an lnclusionary housing plan,
consistent with this Section of this chapter.
21.85.040. Affordable Housina Standards
The affordable housing standards are as follows:
A. All residential developments are subject to and must satisfy the
inclusionary housing requirements of this chapter, notwithstanding a Developer’s
request to process a residential development under other program requirements, laws or regulations, including but not limited to Chapter 27.86 (Residential Density Bonus)
of this Code.
6. Whenever reasonably possible inclusionary units should be built
on the residential development project site.3
!3ik
C. The required inclusionary units shall be constructed concurrently
with market-rate units unless both the final decision-making authority of the Cify and Developer agree within the Affordable Housing Agreement to an alternative schedule
for development.
0. lnclusionary rental units shall remain resfricfed and affordable to
the designated income group for 55 years. In addition to the income of a targeted
group, limitations on assets may also be used as a factor in determining eligibility for
rental or for-sale units. Notwithstanding anything to the contrary in this chapter, no
, .
inclusionary unit shall be rented for an amount which exceeds ninety (90%) percent of
the actual renf charged for a comparable market unit in the same developmenf, if any.
E. Affer the initial sale of the inclusionary for-sale units at a price
affordable to the target income level group, inclusionary for-sale units shall remain
affordable fo subsequent income eligible buyers. pursuant to a resale restriction wifh
a term of thirty (30) years or for-sale units may be sold at a market price to other than
targeted households provided that the sale shall result in the recapture by the City or
ifs designee of a financial interest in the units equal to the amount of subsidy necessary to make the unit affordable to the designated income group and a
proportionate share of any appreciation. Funds recaptured by the City shall be used in
assisting other eligible households with home purchases at affordable prices. To the extent possible, projects using for-sale units to satisfy inclusionary requirements shall
be designed to be compatible with conventional mortgage financing programs
including secondary market requirements.
F. lnclusionary units should be located on sites that are in proximity
to or will provide access to employment opportunities, urban services, or major roads
or other transportation and commuter rail facilities and that are compatible with
adjacent land uses.
G. The design of the inclusionary units shall be reasonably
consistent or compatible with the design of the total project development in terms of
appearance, materials and finished qualify.
H. lnclusionary projects shall provide a mix of affordable dwelling
units, as to number of bedrooms, in response to affordable housing demand priorities
of the City.
I. No building permit shall be issued, nor any development
approval granted for a development which does not meet the requirements of this
chapter. No inclusionary unit shall be rented or sold except in accordance with this
chapter.
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21.85. 050. Calculatins the Required Number of lnclusionarv Units.
Subject to adjustments for incentives, the required number of lower-
income inclusionary units shall be fifteen (15%) percent of Total
residential units, approved by the final decision-making authority. hF c; r\B- “I .” “I
. . zcm,. c: 2 m cf B I=2 pa& . If the
inclusionary units are ‘to be provided within an offsite combined or other
project, the required number of lower income inclusionary units shall be
fifteen (15%) percent of the total residential units to be provided both
onsite and/or offsite. Subject to the maximum density allowed per the
growth management control point or per specific authorization granted by
the Planning Commission or City Council, fractional units for both market
rate and inclusionary units of .5 wilt be rounded up to a whole unit. If the
rounding calculation results in a total residential unit count which
9
exceeds the maximum allowed, neither the market rate nor the
inclusionary unit count will be increased to the next whole number.
Example 1:
Total residential units = 15% lnclusionary units plus 85% Market rate units. If
the final decision making authority approves 100 total residential units, then the
lnclusionary requirement equals 15% of the “Total” or 15 units (100 x .I5 = 15). The
allowable market rate units would be 85% of the “Total” or 85 units.
Example 2:
If the inclusionary units are to be provided offsite, the total number of
inclusionary units shall be calculated according to the total number of market rate
units approved by the final decision-making authority. If 100 market rate units are
approved, then this total is divided by .85 which provides a total residential unit count
(100 + .85 = 117). The 15% requirement is applied to this “total” (I 17 units) which
equals the inclusionary unit requirement (117 x .I 5 = 17.6 units.
ef+ 3: e cf )klrcc x
21.85060. Incentive Credit Adjustment to the lnclusionarv Reuuirement.
Certain types of affordable housing are relatively more desirable in satisfying
the City’s state mandated affordable housing requirement as well as the City’s
Housing Element, goals, objectives and policies, and these may change over time.
As an incentive to assist the City in providing this housing, Developers may
receive additional (more than one unit) credit for each of such units provided, thereby
reducing the total inchrsionary housing requirement to less than fifteen (15%) percent
of all residential units approved.4: cf Ilnl) . . -A Schedule of lnclusionary Housing Incentive Credit specifying
how credit may be earned sha// be adopted by the City Council and made avaiiabie to
Developers subject to this chapter.
‘.
21.85.070. Alternatives to Construction of lnclusionarv Units.
Notwithstanding any contrary provisions of this chapter, at the sole discretion
of the City Council, the City may determine that an alternative to the construction of
new inclusionary units is acceptable.
A. The City Council may approve alternatives to the construction of
new inclusionary units where the proposed alternative supports specific Housing
Element policies and goals and assists the City in meeting its m
stated- a#fe&#e housing
requirements. Such determination shall be based on findings that new construction
would be infeasible or present unreasonable hardship in light of such factors as
project size, site constraints, market competition, price and product type disparity,
Developer capability, and financial subsidies available. Alternatives may include, but
not be limited to, acquisition and rehabilitation of affordable units, conversion of
existing market units to affordable units, construction of special needs housing
projects or programs (shelters, transitional housing, etc.), and the construction of
second dwelfing units.
B. Second, dwelling units constructed, to satisfy an inclusionary
housing requirement shall be rent restricted to affordable rental rates, and renters
shall be income-qualified, as specified in the applicable affordable housing
12
agreement. fn no event shtill a developer be allowed to construct more than a total of
15 second dwelling units in any given development, Master Plan, or Specific Plan, to
satisfy an inclusionary requirement.
BC. Contribution to a special needs housing project or program may
also be an acceptable alternative based upon such findings. The contribution shall
amount to the calculation of amount for an in-lieu fee as set forth in Section
21.85.110.
fe: c=cc . .
13
21.85. 080. Combined lnclusionarv Housina Proiects.
An affordable housing requirement may be satisfied with offsite construction
as follows: A. When it can be demonstrated by a Developer that the location of
inclusionary units onsite is not feasible, and that the goals of this chapter and the
City’s Housing Element would be better served by allowing some or all of the
inclusionary units associated with one residential project site to be produced and
operated at an alternative site or sites the resulting /inked inclusionary project site(s)
is a combined inclusionary housing project.
6. It is at the so/e discretion of the City Council to authorize the
residential site(s) which form a combined inclusionary housing project. Such decision
shall be based on findings that the Combined Project represents a more effective and
feasible means of implementing this chapter and the goals of the City’s Housing Element. Factors to be weighed in this determination include: the feasibility of the
onsite option considering project size, site constraints, competition from multiple
projects, difficulty in integrating due to significant price and product type disparity, lack of capacity of the onsite development entity to deliver affordable housing. Also to
be considered is whether the offsite option offers greater feasibility and cost
effectiveness, particularly, regarding potential local public assistance and the City’s affordable housing financial assistance policy, location advantages such as proximity
to jobs, schools, transportation, services, less an impact on other existing
developments, capacity of the development entity to deliver the project, and
satisfaction of multiple Developer obligations that would be difficult to satisfy with multiple projects. C. All agreements between parties to form a combined inclusionary
housing project shall be made a part of the Affordable Housing Agreement required for the site(s) which Affordable Housing Agreement(s) shall be approved by Council.
D. Location of the combined inclusionary housing project is limited to,sites within the same City quadrant in which the market-rate units are located, or
site which are contiguous to the quadrant in which the market-rate units are proposed.
14
15
21.85.090. Creation of lnclusionarv Units Not Reauired.
lnclusionary units created which exceed the final requirement for a project may,
1 subject to City Council approval in the Affordable Housing Agreement, be utilized by
the Developer to satisfy other inclusionary requirements for which it is obligated or market the units to other Developers as a Combined Project subject to the
requirements of Section 21.85.080.
21.85. 100. Offsets to the Cost of Affordable Housinu Development.
The City shall v consider making offsets avai/ab/e to Developers
when necessary to enable residential projects to provide a preferable product type or
affordability in excess of the requirements of this chapter. Offsets will be offered by
the City to the extent that resources and programs for this purpose are available to the City and approved for such use by the City Council, and to the extent that the
residential development, with the use of offsets, assists in achieving the City’s
housing goals. To the degree that the City makes available programs to provide
offsets, Developers may make application for such programs Evaluation of requests
for offsets shall be based on the effectiveness of the offsets in achieving a preferable product type andor affordability objectives as set forth within the Housing Element;
the capability of the development team; the reasonableness of development costs and
justification of subsidy needs; and the extent to which other resources are used to
a leverage the requested offsets. Nothing in this chapter establishes, direct/y or through
implication, a right to receive any offsets from the City or any other party or agency to
enable the Developer to meet the obligations established by this chapter. Projects are
entitled to density bonuses and/or other incentives in accordance with provisions of
state law, pursuant to the provisions of Chapter 21.86. of this code. Any offsets
approved by the City Council and the housing affordability to be achieved by use of
those offsets shall be set out within the Affordable Housing Agreement pursuant to
Section 21.85.140 or, at the City’s discretion in a subsequent document. Furthermore,
Developers are encouraged to utilize local, state or federal assistance, when available,
to meet the affordability standards set forth in Sections 21.85.030 and 21.8.040.
21.85. 110. In-lieu Fees.
Payment of a fee in-lieu of construction of affordable units may be appropriate in the following circumstances:
17 3s
A. For any residential development or development revision of #My
less than seven units e&?ss, the inclusionary requirements may be satisfied through
the payment to the City of an in-lieu fee or other in-lieu contribution such as land.
B. The in-lieu fee to be paid for each market-rate dwelling unit shall
be fifteen (15%) percent of the subsidy needed to make affordable to a lower-income
household one newly-constructed, typica/ attached-housing unit. This subsidy shall
be based upon the City Council’s determination of the average subsidy that would be required to make affordable typical, new two-bedroom/one bath and three-
bedroom/two-bath for-sale units and rental units, each with an assumed affordability
tenure of at /east 55 years.
C. The dollar amount and method of payment of the in-lieu fees shall
be fixed by a schedule adopted, from time to time, by resolution of the City Council. Said fee shall be assessed against the market-rate lots/units of a development.
D. All in-lieu fees collected hereunder shall be deposited in a
Housing Trust Fund. Said fund shall be administered by the City and shall be used
only for the purpose of providing funding assistance for the provision of affordable
housing units or assistance programs and reasonable costs of administration consistent with the policies and programs contained in the Housing Element of the
General Plan.
E. At the discretion of the City Council, where a Developer is
authorized to pay a fee in-lieu of development, an irrevocable dedication of land or
other non-monetary contribution of a value not less than the sum of the otherwise
required in-lieu fee may be accepted as an alternative to paying the in-lieu fee if it is
determined that the non-monetary contribution will be effectual in furthering the goals
and policies of the Housing E/ement, and this chapter. The valuation of any land
offered in-lieu shall be determined by an appraisal made by an agent mutually agreed
upon by the City and the Developer. Costs associated with the appraisal shall be
borne by the Developer.
F. Where a Developer is authorized to pay a fee in-lieu of
development of affordabk housing units, any approvals shall be conditioned upon a
requirement to pay the in-lieu fee in an amount established by resolution of the City
Council in effect at the time of payment.
G. As an alternative to paying an in-lieu fee(s), inclusionary housing
requirements may be satisfied either through a combined inclusionary housing
project, pursuant to
Section 21.85080 of this chapter or new construction of-inclusionary units subject to
approval of final decision-making authority.
18 36
21.85. 120. Collection of fees.
All fees collected under this chapter shall be deposited into a Housing Trust
Fund and shall be expended on/y for the affordable housing needs of lower-income
households, and reasonable costs of administration consistent with the purpose of
this chapter.
C
21.85.44QI30. Preliminarv Proiect A&ication and Review Process.
The preliminary project application/review process shall be as follows:
DA. An-ap@&#Developer of a Residential Development not subject
to a Master P/an or Specific P/an, proposing an inclusionary housing project shall have an approved Site Development Plan prior to execution of an affordable housing
agreement for the project. The Developer&a++ may submit a preliminary application to the
MauMg-Housing and Redevelopment Director prior to the submittal of any formal
applications for such housing development. The preliminary application shall include the
following information if applicable:
1. A brief description of the proposal including the number of
inclusionary units proposed;
2. The Zoning, General Plan designations and assessors parcel
number(s) of the project site;
3. A site plan, drawn to scale, which includes: building footprints,
driveway and parking layout, building elevations, existing contours and proposed grading; and
4. A letter identifying what specific &e&ivec (ic., cfand&s . . -8. ke+&&e@ offsets and/or adjustments are being
tion for each ineentM request should also be included.
BB. Within thirty days of receipt of the preliminary application by the
‘Planning Director for projects not requesting # offsets or
incentive adjustments or ninety days for projects requesting iRseFtlivcs c: !%a~14
m ofisets or incentive adjustments the department shall provide to an
applicant/developer, a letter which identifies project issues of concern, the m m offsets and incentive adjustments that the @~FH+KJ Community
Development Director can support when making a recommendation to the final decision-
making authority, and the procedures for compliance with this chapter. The applicant shall
also be provided with a copy of this chapter and related policies, the pertinent sections of the
California Codes to which reference is made in this chapter and all required application forms.
21.85.%0140. -Affordable Housina Aareement as a Condition of
Development.
This chapter requires the following:
+)A. &@e&enMDevelopers, subject to this chapter, shall demonstrate
compliance with this chapter by{ executing an Affordable
Housing Agreement prepared ir: :: ~&FM ,,,W by the City Housing and
Redevelopment Director and submitted to the Developer for execution. A
4+--&z- Agreements
and which do not involve requests for offsets and/or incentives, other than those
permitted by right, if any, shall be reviewed by the 9
or his designee v. Agreements which involve requests for offsets and/or
incentives, other than those permitted by right, shall require the recommendation of
the Housing Commission and action by the City Council as the final decision-maker. Following #be approval and #be4gMg execution by all parties the e Affordable
Housing Agreement with approved Site Development P/an shall be recorded, against the
-entire development, including market-rate lots/units and the relevant terms and
conditions therefrom filed and subsequent/y recorded as a separate deed restriction 8~
(krrrr. or regulatory agreement on the affordable project individual lots or units of property
which are designated for the location of affordable units. The approval and RXM&&R
execution of the Affordable Housing Agreement shall take place prior to final map approval and shall be recorded upon final map recordation or, where a map is not being
processed, prior to the issuance of building permits for such lots+ /units. The Affordable Housing Agreement may require that more specific project and/or unit restrictions be
recorded at a future time. The Affordable Housing Agreement shall be bind&g-& all future
owners and successors in interest for the term of years specified therein.
B. An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through the new construction of inclusionary units, either onsite
or offsite, g shall establish, but not be
limited to, the following:
1. The number of inclusionary dwelling units proposed, with
specific calculations detailing the application of any incentive adjustment credit;
2. The unit size@) {square footaga\, and #+e number of bedrooms w - .
3. The proposed location 0; the inclusionaty units;
4.
MI~+wM+ Amenities and services provided, such as day-care, affer school programs,
transporta fion, job training/emp/oymen t services and recreation; Level and tenure of affordability for inclusionary units;
&6. Schedule for production of dwelling units;
(637. -z! ~&&ee Approved Off.sets
provided by the City;
(738. Where applicable, )nrmr . . . .
CI
g requiiements for other
21
-
documents to be approved by the City, such as marketing, /easing and management
plans; financial assistance/loan documents; resale agreements; and monitoring and compliance plans; . . . . . @j9. where applicable, 9
S identification of the affordable housing Developer and
agreements specifying their rok and relationship to the project; and
c: c+
10: Upon request of the Community Development Director,
identification of al sources and uses of funds for construction and permanent
financing, including profonna financial statements, and evidence of a firm commitment from the sources when available
.
C. An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through payment to the City of any in-lieu contributions other
than fee monies, -such as land dedication+, shall b+mqukM include the method of
determination, schedule and value of total in-lieu contributions.
c: Th.-. tffefkcd . . - - . re I ” I
D. An Affordable Housing Agreement will not be required for projects
which will be satisfying their inclusionary housing requirement through payment to the City of . . an in-lieu fee *.
21.85.145 Aureement Processina Pee.
The City Council may establish by resolution, fees to be paid by the Developer
at the time of preliminary project application to defray the City’s cost of preparing
and/or reviewing all inclusionary housing agreements.
t:: TT
. . . . v: Tcnl 9
22
21.85.150. ,&-eemenVAmendments.
Any amendment to an Affordable Housing Agreement shall be processed in the
same manner as an original application for approval, except as authorized in Section
21.85.035(B). Amendments to Affordable Housing agreements initially approved prior
to the effective date of this ordinance shall be entitled to consideration under the
ordinance provisions superseded by this ordinance.
21.85.155. ExM-ation of Affordabilitv Tenure.
The City or its designee shall have a one-time first right of refusal to purchase
any project containing affordable units offered for sale at the end of the minimum
tenure of affordability for rental projects. The first right of refusal to purchase the
rental project shall be submitted in writing to the Housing and Redevelopment Director. Within ninety days of its receipt, the Cify shall indicate its intent to exercise
the first right of refusal for the purpose of providing affordable housing.
21.85.160. Pre-existina Aaorovals.
Any residential developments for which a Site Development P/an for the
affordable housing component of the development was approved prior to the effective
date of this ordinance shall be subject to the Ordinance in effect at the time of the
approval.
21.85.170. Enforcement. Enforcement provisions are as follows:
A. The provisions of this chapter shall apply to all Developers and
their agents, successors and assigns of a Developer proposing a residential
development governed by this chapter. No building permit or occupancy permit shall
, ’ I. ; .f-
be issued, nor any entitlement granted, for a project which is not exempt and does not
meet the requirements of this chapter. Ail inclusionary units shall be rented or owned
in accordance with this chapter.
B. The City may institute any appropriate /ega/ actions or
proceedings necessary to ensure compliance with this chapter, including but not
limited to actions to revoke, deny or suspend any permit or development approval.
C. Any individual who sells or rents a restricted unit in violation of
the provisions of this chapter shall be required to forfeit all monetary amounts so
obtained. Such amounts shall be added to the City’s Housing Trust Fund.
21.85.180. Savinus Clause.
All code provisions, ordinances, and parts of ordinances in conflict with the
provisions of this chapter are repealed. The provisions of this chapter, insofar as they
are substantially the same as existing code provisions relating to the same subject
maffer shall be construed as restatements and continuations thereof and not as new
enactments. With respect, however, to violations, rights accrued, liabilities accrued,
or appeals taken, prior to the effective date of this ordinance, under any chapter,
ordinance, or part of an ordinance hereby otherwise repealed, all provisions of such
chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for
the purpose of sustaining any proper suit, action, or other proceedings, with respect
to any such violation, right, liability or appeal.
21.85.Z94W90. SeDarabilitv of Provisions.
If any provision of this chapter or the application thereof to any person or
circumstances is held invalid, the remainder of the chapter and the application of the
provision to other persons not similarly situated or to other circumstances shall not be
affected thereby.
24
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident
of the County aforesaid: I am over the age of
eighteen years and not a party to or interested in
the above-entitled matter. I am the principal clerk
of the printer of
North County Times
formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have
been adjudged newspapers of general circulation by the Superior Court of the County of San Diego, State of California, for the cities of Escondido, Oceanside, Carlsbad, Solana Beach and San Diego County; that the notice of which
the annexed is a printed copy (set in type not
smaller than nonpareil), has been published in
each regular and entire issue of said newspaper
and not in any supplement thereof on the following dates, to-wit:
Jars. 29, 2000
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at San Marcos , California
this 31st day
Jan. 2000 of
Signafire
NORTH COUNTY TIMES
Legal Advertising
-. -. /
This space is for the County Clerks Filing Stamp
Proof of Publication of
Notice of Public HEarirrg
Ordinance NS-535
h(j+&E, ‘$$F, eii;rs@,Jc r _ ; :;. 2’. ,,M,EARIN@’ ” ’ :
affected, #f$$E IS tlEREhVEw to yoti, &cause your‘interest may be V&t th4Gty Couhcfi M$ta City of.Carlsbad will hold a public hearing at the Council’ Charirbers, #.I6 C@bad Wage Drive, at 690 p.m. on
: Qe@ay~:febru@ry f3; 2OW,,to ceakider agprov@ of a-t@$ativr, D~aration tone Code Amendment afid a U-&II Coastal Proora’m Ai&riiYm”ent to.timenri
is ast@shed by state law and/q ,cjty ordinance, and is very shprt. Ii jfou diallenge, the Negative ,!%cl id on,’ zone Ikule Amendment, and Local &a&l Pmgf&m Amendment io court, yoti may be limited‘& fWn only
tho.WBiies you or someooe else raised at Ihe public hearing desc & thB hotice or in j!Mterj correspondence de!ivere(l to the City of@rlsbad a&. $riprto theplrbkt@$ng. I ‘:l: “’ ‘:;:
* ‘, ;
g&j&jj~CPAes$jI‘ i A,~,
E: i@kDNARY k@Wffi ORDltjANCE Ab#ENk& -
”
’ : ; $&&:~[$ti&,,; .
cm cciNcri.