HomeMy WebLinkAbout2010-09-28; City Council; 20370; Inclusionary HousingCITY OF CARLSBAD - AGENDA BILL 12
20,370AB#
MTG. 9/28/2010
DEPT.CED
INCLUSIONARY HOUSING -
ZCA 10-03/LCPA 10-02
DEPT. DIRECTOR^ grj'
CITY ATTORNEY
CITY MANAGER
RECOMMENDED ACTION:
That the City Council hold a public hearing and INTRODUCE Ordinance No. CS-109
APPROVING an amendment to the City of Carlsbad Zoning Ordinance (ZCA 10-03), and
ADOPT Resolution No. 2010-231 . APPROVING a Local Coastal Program Amendment
(LCPA 10-02), for consistency with ZCA 10-03, based upon the findings contained therein.
ITEM EXPLANATION:
Project
ZCA 10- 03
LCPA 10- 02
Housing
Commission
RA
Planning
Commission
RA
RA
City
Council
X
X
Coastal
Commission**
•
RA = Recommended adoption/approval
X = Final City decision-making authority
• = Requires Coastal Commission approval
** = Will not become effective until the Coastal Commission approves LCPA 10-02
To comply with recent case law, the City of Carlsbad is proposing an amendment to its
inclusionary housing requirements (Zoning Ordinance Chapter 21.85) that would result in only
minor changes. The changes are primarily needed to clarify that inclusionary requirements
apply to rental projects only if the project developer agrees by contract to limit rent as
consideration for a "direct financial contribution" or any other forms of assistance specified in
density bonus law.
In July 2009, the Court of Appeal determined in Palmer/Sixth Street Properties, L.P. v. City of
Los Angeles that local inclusionary requirements for rental units are pre-empted by state law
(the 1995 Costa-Hawkins Rental Housing Act,("Act")) regarding rent control. The Court found
that forcing Palmer/Sixth Street Properties to provide affordable housing at regulated rent was
"clearly hostile" to its right under the Act to establish the initial rental rate for a dwelling unit. The
Act allows owners in rent control communities to establish the initial rent for a new unit and to
increase the rent to market levels whenever a unit is vacated.
Presently, inclusionary housing requirements apply equally to rental and ownership projects.
The proposed amendment would affect only the application of inclusionary requirements to
rental projects; the application of inclusionary standards to ownership projects, including the
conversion of apartments to condominiums, would not change.
DEPARTMENT CONTACT: Scott Donnell 760-602-4618 scott.donnell® carlsbadca.gov
FOR CITY CLERKS USE ONL Y.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED *
D
n
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
D
D
D
D
Page 2
Other than the limitations proposed to conform with case law, proposed changes would not
affect key inclusionary housing provisions such as the percentage and affordability of
inclusionary units that new development must provide, affordability tenure, and resale
restrictions. As part of this amendment, staff also has proposed minor housekeeping changes
to Chapter 21.85. All recommended changes are discussed in detail in the attachments.
Because the Zoning Ordinance is an implementing ordinance for the City's Local Coastal
Program, a Local Coastal Program Amendment (LCPA 10-02) is also required for this project.
On June 17, 2010, the Housing Commission voted 3-0 (Kirk and Wrisley absent) to recommend
approval of the proposed minor revisions to Chapter 21.85, finding them necessary to comply
with the case law, and, subject to the limitations imposed by it, consistent with the intent and
purpose of the inclusionary housing requirements. The Planning Commission made similar
findings at a July 21, 2010, public hearing and voted 6-0-1 (Baker absent) to recommend
project approval. As part of its action, the Commission also determined project consistency
with the General Plan, Local Coastal Program, those parts of the Zoning Ordinance not
proposed for amendment, and the Airport Land Use Compatibility Plan. No members of the
public spoke at either the Housing Commission or Planning Commission meetings.
FISCAL IMPACT:
Anticipated fiscal impacts result from the staff time required to complete the amendment
process through the California Coastal Commission. Additionally, if certain rental projects are
exempted from inclusionary requirements as proposed, the City may see a reduction in the
amount of housing in lieu fees collected, affordable housing credits sold, and Affordable
Housing Trust Funds and other similar-purpose funds expended. However, most apartment
construction since the City's 1993 adoption of inclusionary requirements has resulted from
application of inclusionary requirements to market rate ownership projects rather than stand-
alone apartment developments. If this pattern continues, staff anticipates any project-related
fiscal impacts will be small.
ENVIRONMENTAL IMPACT:
The project is exempt from the California Environmental Quality Act (CEQA). Municipal Code
Title 19 states minor zone code amendments that refine or clarify existing land use standards
are exempt from environmental review. This exemption is pursuant to CEQA Guideline
15061(b)(3), which states "when it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment, the activity is not subject to
CEQA."
EXHIBITS:
1. City Council Ordinance No. CS-109
2. City Council Resolution No. 2010-231
3. Planning Commission Resolutions No. 6712 and 6713
4. Housing Commission Resolution No. 2010-002
5. Planning Commission Staff Report dated July 21, 2010
6. Housing Commission Staff Report dated June 17, 2010
7. Excerpt of the Planning Commission Minutes dated July 21, 2010
8. Excerpt of the Housing Commission Minutes dated June 17, 2010.
EXHIBIT 1
1 ORDINANCE NO. CS-109
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A ZONE CODE
3 AMENDMENT TO MAKE MINOR MODIFICATIONS TO THE
INCLUSIONARY HOUSING REQUIREMENTS OF ZONING
4 ORDINANCE CHAPTER 21.85
CASE NAME: INCLUSIONARY HOUSING
5 CASE NO.: ZCA10-03
6 The City Council of the City of Carlsbad, California, does ordain as follows:
7 Section I: That the list of sections at the beginning of Chapter 21.85 is amended to read
8 as follows:
9 Sections:
21.85.010 Purpose and intent.
10 21.85.020 Definitions.
21.85.030 Inclusionary housing requirement.
11 21.85.035 New master plans or specific plans.
21.85.040 Affordable housing standards.
12 21.85.050 Calculating the required number of inclusionary units.
21.85.060 Inclusionary credit adjustment.
21.85.070 Alternatives to construction of inclusionary units.
21.85.080 Combined inclusionary housing projects.
21.85.090 Creation of inclusionary units not required.
21.85.100 Offsets to the cost of affordable housing development.
15 21.85.110ln-lieufees.
21.85.120 Collection of fees.
21.85.130 Preliminary project application and review process.
21.85.140 Affordable housing agreement as a condition of development.
17 21.85.145 Agreement processing fee.
21.85.150 Agreement amendments.
^ ° 21.85.155 Expiration of affordability tenure.
21.85.160 Pre-existing approvals.
1 y 21.85.170 Enforcement.
20 21.85.180 Savings clause. .
21.85.190Severability.
21 Section II: That Section 21.85.010 A. 1. (Purpose and Intent) is amended as follows:
22 1. Require that a minimum of fifteen percent of all approved ownership and qualifying rental
units as set forth in Section 21.85.030 A be restricted to and affordable to lower-income
households; subject to adjustment based on the granting of an inclusionary credit;
24 Section III: That Section 21.85.020 (Definitions) is amended as follows:
25 21.85.020 Definitions.
Whenever the following terms are used in this chapter, they shall have the meaning established
27 by this section:
28
1 A. "Affordable housing" means housing for which the allowable housing expenses
paid by a qualifying household shall not exceed a specified fraction of the county median
2 income, adjusted for household size, as follows:
1. Extremely low-income, rental or ownership units: the product of thirty percent
3 times thirty percent of the county median income, adjusted for household size;
2. Very low-income, rental and ownership units: the product of thirty percent times
4 fifty percent of the county median income, adjusted for household size;
3. Low-income, ownership units: the product of thirty percent times eighty percent of
5 the county median income, adjusted for household size; and
4. Low-income, rental units: the product of thirty percent times seventy percent of
6 the county median income, adjusted for household size.
7 B. "Affordable housing agreement" means a legally binding agreement between a
developer and the city to ensure that the inclusionary requirements of this chapter are satisfied.
8 The agreement establishes, among other things, the number of required inclusionary units, the
unit sizes, location, affordability tenure, terms and conditions of affordability and unit production
9 schedule.
10 C. "Allowable housing expense" means the total monthly or annual recurring
expenses required of a household to obtain shelter. For an ownership unit, allowable housing
11 expenses include loan principal and interest at the time of initial purchase by the homebuyer,
allowances for property and mortgage insurance, property taxes, homeowners' association dues
12 and a reasonable allowance for utilities as defined by the Code of Federal Regulations
(24CFR982). For a rental unit, allowable housing expenses include rent and a utility allowance
as established and adopted by the city of Carlsbad housing authority, as well as all monthly
payments made by the tenant to the lessor in connection with use and occupancy of a housing
14 unit and land and facilities associated therewith, including any separately charged fees, utility
charges, or service charges assessed by the lessor and payable by the tenant.
D. "Affordable housing policy team" shall consist of the community development
director, planning director, housing and redevelopment director, administrative services
director/finance director and a representative of the city attorney's office.
E. "Combined inclusionary housing project" means separate residential
development sites which are linked by a contractual relationship such that some or all of the
inclusionary units which are associated with one development site are produced and operated
at a separate development site or sites.
20 F. "Conversion" means the change of status of a dwelling unit from an ownership
unit to a rental unit or vice versa and/or a market-rate unit to a unit affordable to lower-income
households.
22 G. "Development revision" means revisions to development permits, entitlements,
and/or related maps.
H. "Density bonus" shall have the same meaning as defined in Section 21.86.020(A)
(7) of this title.
25
I. "Extremely low-income household" means those households whose gross
income is equal to or less than thirty percent of the median income for San Diego County as
determined by the U.S. Department of Housing and Urban Development.27 ///
28
-2-
1 J. "Financial assistance" means assistance to include, but not be limited to, the
subsidization of fees, infrastructure, land costs, or construction costs, the use of redevelopment
2 set-aside funds, community development block grant (CDBG) funds, or the provision of other
direct financial aid in the form of cash transfer payments or other monetary compensation, by
3 the city of Carlsbad.
4 K. "Growth management control point" shall have the same meaning as provided in
Chapter 21.90, Section 21.90.045 of this title.
5
L. "Incentives or concessions" shall have the same meaning as defined in Section
6 21.86.020(A)(12) of this title.
7 M. "Inclusionary credit" means a reduction in the inclusionary housing requirement
granted in return for the provision of certain desired types of affordable housing or related
8 amenities as determined by the city council.
9 N. "Inclusionary housing project" means a new residential development or
conversion of existing residential buildings which has at least fifteen percent of the total units
10 reserved and made affordable to lower-income households as required by this chapter.
11 O. "Inclusionary unit" means a dwelling unit that will be offered for rent or sale
exclusively to and which shall be affordable to lower-income households, as required by this
12 chapter.
P. "Income" means any monetary benefits that qualify as income in accordance with
the criteria and procedures used by the city of Carlsbad housing and redevelopment department
for the acceptance of applications and recertifications for the tenant based rental assistance
program, or its successor.
Q. "Low-income household" means those households whose gross income is more
than fifty percent but does not exceed eighty percent of the median income for San Diego
County as determined annually by the U.S. Department of Housing and Urban Development.
R. "Lower-income household" means low-income, very low-income and extremely
° low-income households, whose gross income does not exceed eighty percent of the median
income for San Diego County as determined annually by the U.S. Department of Housing and
Urban Development.
70 S. "Market-rate unit" means a dwelling unit where the rental rate or sales price is not
„. restricted either by this chapter or by requirements imposed through other local, state, or federal
affordable housing programs.
22 T. "Offsets" means concessions or assistance to include, but not be limited to, direct
financial assistance, density increases, standards modifications or any other financial, land use,
or regulatory concession which would result in an identifiable cost reduction enabling the
24 provision of affordable housing.
U. "Ownership Unit" means a residential unit with a condominium or other
subdivision map allowing units to be sold individually.
V. "Rental Unit" means a residential unit with no condominium or other subdivision
27 map allowing units to be sold individually.
28
-3-
1 W. "Residential development" means any new residential construction of ownership
or rental units; or development revisions, including those with and without a master plan or
2 specific plan, planned unit developments, site development plans, mobile home developments
and conversions of apartments to condominiums, as well as dwelling units for which the cost of
3 shelter is included in a recurring payment for expenses, whether or not an initial lump sum fee is
also required.
4
X. "Target income level" means the income standards for extremely low, very low
5 and low-income levels within San Diego County as determined annually by the U.S. Department
of Housing and Urban Development, and adjusted for family size.
6 Y. "Total residential units" means the total units approved by the final decision-
making authority. Total residential units are composed of both market-rate units and
inclusionary units.
Z. "Very low-income household" means a household earning a gross income equal
to fifty percent or less of the median income for San Diego County, as determined annually by
the U.S. Department of Housing and Urban Development.
Section IV: That Section 21.85.030 A (Inclusionary Housing Requirements) is amended
as follows:
12 A. This chapter shall apply to all residential market-rate dwelling units resulting from
new construction of ownership units, including the conversion of apartments to condominiums
and to new construction of rental units where the developer receives direct financial assistance,
offsets, or any incentive of the type specified in density bonus law pursuant to the provisions of
Chapter 21.86 of this code, and the developer agrees by contract to limit rents for below market-
ic rate rental units. Any developer not receiving direct financial assistance, offsets, or other
incentives may voluntarily agree to provide inclusionary rental units.
Section V: That Section 21.85.030 B (Inclusionary Housing Requirements) is amended
17 as follows:
18 B. For any residential development or development revision of seven or more units
as set forth in Section 21.85.030 A, not less than fifteen percent of the total units approved shall
be constructed and restricted both as to occupancy and affordability to lower-income
2Q households.
Section VI: That Section 21.85.030 D (Inclusionary Housing Requirement) is amended
as follows:
D. This chapter shall not apply to the following:
1. Existing residences which are altered, improved, restored, repaired, expanded or
24 extended, provided that the number of units is not increased, except that this chapter shall
pertain to the subdivision of land for the conversion of apartments to condominiums;
25 2. Conversion of a mobile home park pursuant to Section 21.37.120 of the code;
3. The construction of a new residential structure which replaces a residential
25 structure that was destroyed or demolished within two years prior to the application for a
building permit for the new residential structure, provided that the number of residential units is
27 not increased from the number of residential units of the previously destroyed or demolished
residential structure;
28
-4-
1 4. Any residential unit which is accessory as defined in Section 21.04.020 of this
code;
2 5. Second dwelling units not constructed to fulfill inclusionary housing requirements
and developed in accordance with Section 21.10.030 of this code;
3 6. Any project or portion of a project which is a commercial living unit as defined in
Section 21.04.093 of this code;
4 7. Any rental unit where the developer does not obtain direct financial assistance,
offset, or any other incentive or concession of the type specified in density bonus law, although
5 a mandatory density bonus may have been applied pursuant to the provisions of Chapter 21.86
of this code; and
6 8. Those residential units which have obtained affordable housing approvals prior to
the effective date of the ordinance codified in this chapter, as set forth in Section 21.85.160 of
7 this chapter.
8 Section VII: That Section 21.85.040 A (Affordable Housing Standards) is amended as
9 follows:
10 A. All qualifying residential developments pursuant to Section 21.85.030 A are
subject to and must satisfy the inclusionary housing requirements of this chapter,
11 notwithstanding a developer's request to process a residential development under other
program requirements, laws or regulations, including but not limited to Chapter 21.86
12 (Residential Density Bonus) of this code. If an applicant seeks to construct affordable housing to
qualify for a density bonus in accordance with the provisions of Chapter 21.86 (Residential
13 Density Bonus), those affordable dwelling units that qualify a residential development for a
density bonus are in addition to, and do not count toward satisfying, the inclusionary housing
14 requirements of this chapter.
15 Section VIII: That Section 21.85.040 D (Affordable Housing Standards) is amended as
16 follows:
17 D. Inclusionary rental units shall remain restricted and affordable to the designated
income group for fifty-five years. In addition to the income of a targeted group, limitations on
18 assets may also be used as a factor in determining eligibility for rental or ownership units.
Notwithstanding anything to the contrary in this chapter, no inclusionary unit shall be rented for
19 an amount which exceeds ninety percent of the actual rent charged for a comparable market
unit in the same development, if any.
20
Section IX: That Section 21.85.040 E (Affordable Housing Standards) is amended as
21
follows:
22
E. After the initial sale of the inclusionary ownership units at a price affordable to the
23 target income level group, inclusionary ownership units shall remain affordable to subsequent
income eligible buyers pursuant to a resale restriction with a term of thirty years or ownership
24 units may be sold at a market price to other than targeted households provided that the sale
shall result in the recapture by the city or its designee of a financial interest in the units equal to
25 the amount of subsidy necessary to make the unit affordable to the designated income group
and a proportionate share of any appreciation. Funds recaptured by the city shall be used in
26 assisting other eligible households with home purchases at affordable prices. To the extent
possible, projects using ownership units to satisfy inclusionary requirements shall be designed
27 to be compatible with conventional mortgage financing programs including secondary market
requirements.
28
-5-
1 Section X: That Section 21.85.070 A (Alternatives to construction of inclusionary units)
2 is amended as follows:
3 A. The city council may approve alternatives to the construction of new inclusionary
units where the proposed alternative supports specific housing element policies and goals and
4 assists the city in meeting its state housing requirements. Such determination shall be based on
findings that new construction would be infeasible or present unreasonable hardship in light of
5 such factors as project size, site constraints, market competition, price and product type
disparity, developer capability, and financial subsidies available. Alternatives may include, but
6 not be limited to, acquisition and rehabilitation of affordable units, conversion of existing market-
rate units to affordable units, construction of special needs housing projects or programs
7 (shelters, transitional housing, etc.), and the construction of second dwelling units.
8 Section XI: That Section 21.85.110 A (In-lieu fees) is amended as follows:
9 A. For any qualifying residential development or development revision pursuant to
Section 21.85.030 A. of less than seven units, the inclusionary requirements may be satisfied
10 through the payment to the city of an in-lieu fee.
11 Section XII: That Section 21.85.110 B (In-lieu fees) is amended as follows:
12 B. The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen
percent of the subsidy needed to make affordable to a lower-income household one newly
13 constructed, typical attached-housing unit. This subsidy shall be based upon the city council's
determination of the average subsidy that would be required to make affordable typical, new
14 two-bedroom/one bath and three-bedroom/two-bath ownership units and rental units, each with
an assumed affordability tenure of at least fifty-five years.
Section XIII: That Section 21.85.170 A (Enforcement) is amended as follows:16
A. The provisions of this chapter shall apply to all developers and their agents,
' successors and assigns proposing a qualifying residential development governed by this
chapter pursuant to Section 21.85.030 A. No building permit or occupancy permit shall be
issued, nor any entitlement granted, for a project which is not exempt and does not meet the
requirements of this chapter. All inclusionary units shall be rented or owned in accordance with
this chapter.
?fl Section XIV: That the title only of Section 21.85.190 (Separability of provisions) is
amended as follows:
22 21.85.190 Severability.
23 ///
24 ///25 ///
26 ///27 ///
28
-6-
1 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption,
2 and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at
3 least once in a publication of general circulation in the City of Carlsbad within fifteen days after
4 adoption. Notwithstanding the preceding, this ordinance shall not be effective until approved by
5 the California Coastal Commission.
6 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on
7 the 28th day of September, 2010, and thereafter.
8 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
9 City of Carlsbad on the day of , 2010, by the following vote to wit:
10
AYES:
12 NOES:
13 ABSENT:
14 ABSTAIN:
15
16 APPROVED AS TO FORM AND LEGALITY
17
18
19 RONALD R. BALL, City Attorney
20
21 CLAUDE A LEWIS, Mayor
22"
23
ATTEST:
24"
25
LORRAINE M. WOOD, City Clerk
26
(SEAL)
27"
28
EXHIBIT 2
1 RESOLUTION NO. 2010-231
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A LOCAL COASTAL
3 PROGRAM AMENDMENT TO MAKE MINOR TEXT CHANGES
TO ZONING ORDINANCE CHAPTER 21.85.
4 CASE NAME: INCLUSIONARY HOUSING
CASE NO.: LCPA 10-02
5
The City Council of the City of Carlsbad, California, does hereby resolve as
6 follows:
7 WHEREAS, pursuant to the provisions of the Municipal Code, the Planning
8 Commission did on July 21, 2010, hold a duly noticed public hearing as prescribed by law to
9 consider the Zone Code Amendment (ZCA 10-03), as referenced in Planning Commission
10 Resolution No. 6712, and Local Coastal Program Amendment (LCPA 10-02), as referenced in
11 Planning Commission Resolution No. 6713; and
12 WHEREAS, the Planning Commission adopted Planning Commission
13 Resolutions No. 6712 and 6713 recommending to the City Council that ZCA 10-03 and LCPA
14 10-02 be approved; and
15 WHEREAS, the City Council of the City of Carlsbad, on the 28th day of
16 September 201Q, held a duly noticed public hearing to consider the Zone Code Amendment and
1' Local Coastal Program Amendment; and
1 8 WHEREAS, at said public hearing, upon hearing and considering all testimony
1 Q and arguments, if any, of all persons desiring to be heard, the City Council considered all factors
20 relating to the Zone Code Amendment and Local Coastal Program Amendment.
21 NOW, THEREFORE, the City Council of the City of Carlsbad, California does
22 hereby resolve as follows:
23 1. That the above recitations are true and correct.
24 2. That the findings of the Planning Commission in Planning Commission
2<r Resolutions No. 6712 and 6713 constitute the findings of the City Council in this matter.
26 3. That the amendment to the Local Coastal Program (LCPA 10-02), is
approved as shown in Planning Commission Resolution No. 6713, on file with the City Clerk and
27 incorporated herein by reference.
28
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
4. That the approval of LCPA 10-02 shall not become effective until it is
approved by the California Coastal Commission and the California Coastal Commission's
approval becomes effective.
"NOTICE TO APPLICANT"
The time within which judicial review of this decision must be sought is governed
by Code of Civil Procedure, Section 1094.6, which has been made applicable in the City of
Carlsbad by Carlsbad Municipal Code Chapter 1.16. Any petition or other paper seeking review
must be filed in the appropriate court not later than the ninetieth day following the date on which
this decision becomes final; however, if within ten days after the decision becomes final a
request for the record is filed with a deposit in an amount sufficient to cover the estimated cost
or preparation of such record, the time within which such petition may be filed in court is
extended to not later than the thirtieth day following the date on which the record is either
personally delivered or mailed to the party, or his attorney of record, if he has one. A written
request for the preparation of the record of the proceedings shall be filed with the City Clerk,
City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA. 92008."
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Carlsbad on the 28th day of September 2010, by the following vote, to wit:
AYES: Council Members Lewis, Hall, Packard and Blackburn.
NOES: None.
ABSENT: Council Member Kulchin
ATTEST:
v—TORRAlNE M. WOOD, City Clerk
(SEAL)
-2-
EXHIBIT 3
1 PLANNING COMMISSION RESOLUTION NO. 6712
2 A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING
APPROVAL OF MINOR CHANGES TO THE CITY'S
4 EXCLUSIONARY HOUSING REQUIREMENTS FOUND IN
ZONING ORDINANCE CHAPTER 21.85.
5 CASE NAME: EXCLUSIONARY HOUSING
CASE NO.: ZCA 10-03
6
WHEREAS, the Planning Director has prepared a Zone Code Amendment (ZCA
0 10-03) pursuant to Section 21.52.020 of the Carlsbad Municipal Code relating to inclusionaryo
g housing requirements; and
10 WHEREAS, ZCA 10-03 is necessary to ensure compliance with recent case law
11 (Palmer/Sixth Street Properties, L.P. v. City of Los Angeles ("Pa/mer")); and
12 WHEREAS, ZCA 10-03 is set forth in the draft City Council Ordinance, Exhibit
13 "X", dated July 21, 2010, and attached hereto MINOR REVISIONS TO CHAPTER 21.85 -
14 ZCA 10-03; and
15
WHEREAS, the Housing Commission, did, on June 17, 2010, hold a public
16
meeting as prescribed by law to consider said amendment and recommended its approval by
17
passing Housing Commission Resolution 2010-002; and18
jo WHEREAS, the Planning Commission did on the 21st day of July, 2010, hold a
20 duly noticed public hearing as prescribed by law to consider said request; and
21 WHEREAS, at said public hearing, upon hearing and considering all testimony
22 and arguments, if any, of all persons desiring to be heard, said Commission considered all factors
9-3
relating to the Zone Code Amendment.
24 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning
25
Commission as follows:
26
A) That the foregoing recitations are true and correct.
27
28
13
1 B) That based on the evidence presented at the public hearing, the Commission
RECOMMENDS APPROVAL of MINOR REVISIONS TO CHAPTER
2 21.85 - ZCA 10-03, based on the following findings:
3 Findings:
4 That the proposed Zone Code Amendment ZCA 10-03 is consistent with the General
5 Plan in that the proposed amendment does not conflict with any goal, objective or
policy of the General Plan. Land Use Element Residential Policy C.I directs the
6 City to encourage the provision of low and moderate income housing to meet
Housing Element objectives. Housing Element Program 3.1 states the City will
7 continue to implement its inclusionary housing requirements, which is the primary
provider of low income housing in Carlsbad. ZCA 10-03, subject to the limitations
° ' imposed by Palmer, does not interfere with the ongoing implementation of
Q inclusionary housing requirements to provide affordable housing.
2. That the proposed ZCA 10-03 reflects sound principles of good planning in that it is
internally consistent with the other Zoning Ordinance procedures and standards
11 not proposed for amendment. ZCA 10-03 also improves use of the Zoning
Ordinance by clarifying and improving the meaning of terms and by correcting
12 references. Furthermore, the amendment to Zoning Ordinance Chapter 21.85,
subject to the limitations imposed by Palmer, maintains consistency with the intent
and purpose of the inclusionary housing requirements. Part of the intent and
purpose as stated in Zoning Ordinance Section 21.85.010 A. is "...to ensure that all
residential development... provide a range of housing opportunities for all
i c identifiable economic segments of the population, including households of lower and
moderate income."
16
3. That the proposed Zone Code Amendment, ZCA 10-03, affects land within the Airport
17 Influence Area; however, it is consistent with the adopted McClellan-Palomar Airport
Land Use Compatibility Plan, amended March 4, 2010, in that the proposed Zone Code
Amendment does not involve any land use or development standard changes within
the Airport Influence Area that affect compatibility with the safety, noise, airspace
protection and overflight criteria.
20
21
22
23
24
25
26
27
28
PCRESONO. 6712 -2-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning
Commission of the City of Carlsbad, held on July 21, 2010, by the following vote, to wit:
AYES:
NOES:
Chairperson Douglas, Commissioners Dominguez, L'Heureux,
Montgomery, Nygaard and Schumacher
ABSENT: Commissioner Baker
ABSTAIN:
, CKaupfrson
CARLSBAD PLANNING COMMISSION
ATTEST:
DON NEU
Planning Director
PCRESONO. 6712 -3-
1 PLANNING COMMISSION RESOLUTION NO. 6713
2 A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING
J APPROVAL OF A LOCAL COASTAL PROGRAM
4 AMENDMENT TO MAKE MINOR CHANGES TO THE
CITY'S INCLUSION ARY HOUSING REQUIREMENTS
5 FOUND IN ZONING ORDINANCE CHAPTER 21.85.
CASE NAME: INCLUSIONARY HOUSING
6 CASE NO.: LCPA10-02
' WHEREAS, the Planning Director has prepared a Local Coastal Program
o
Amendment (LCPA 10-02) to Title 21 of the Municipal Code (Zoning Ordinance) relating to
9 inclusionary housing requirements; and
10
WHEREAS, the Zoning Ordinance is one of the implementing ordinances for the
11
City of Carlsbad Local Coastal Program; and
12
, „ WHEREAS, California State law requires conformance between the Local13
14 Coastal Program and Zoning Ordinance; therefore, an amendment to the Local Coastal Program
15 is required in conjunction with an amendment to the Zoning Ordinance (ZCA 10-03) to ensure
16 consistency between the two documents; and
17 WHEREAS, the amendment to the Zoning Ordinance is necessary to ensure
18 compliance with recent case law; and
19 WHEREAS, the proposed amendment is set forth in the draft City Council
20
Ordinance, Exhibit "X", dated July 21, 2010, attached to Planning Commission Resolution
21
No. 6712 as provided in Public Resources Code Section 30514 and Section 13551 of California
22
Code of Regulations Title 14, Division 5.5; and
^—_J
24 WHEREAS, the Planning Commission did on the 21st day of July, 2010, hold a
25 duly noticed public hearing as prescribed by law to consider said request; and
26 WHEREAS, at said public hearing, upon hearing and considering all testimony
27 and arguments, if any, of all persons desiring to be heard, said Commission considered all factors
980 relating to the Local Coastal Program Amendment.
WHEREAS, State Coastal Guidelines requires a six-week public review period
for any amendment to the Local Coastal Program.
3 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning
4 Commission as follows:
5
A) That the foregoing recitations are true and correct.
6
B) At the end of the State-mandated six-week review period, starting on May 28,
' 2010 and ending on July 9, 2010, staff shall present to the City Council a
summary of the comments received.o
n C) That based on the evidence presented at the public hearing, the Commission
RECOMMENDS APPROVAL of MINOR REVISIONS TO CHAPTER
10 21.85 - LCPA 10-02, based on the following findings:
11 Findings;
12 1. That the proposed Local Coastal Program Amendment meets the requirements of, and is
in conformity with, the policies of Chapter 3 of the Coastal Act and all applicable policies
of the Carlsbad Local Coastal Program not being amended by this amendment, in that the
. . amendment ensures consistency with the Carlsbad Zoning Ordinance, and does not
conflict with any coastal zone regulations, land use designations or policies with
15 which development must comply.
15 2. That the proposed amendment to the Carlsbad Local Coastal Program is required to bring
it into consistency with the proposed Zone Code Amendment (ZCA 10-03).
17"
18
19
20
21
22
23
24
25
26
27
28
PCRESONO. 6713 -2-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning
Commission of the City of Carlsbad, held on July 21, 2010, by the following vote, to wit:
AYES:Chairperson Douglas, Commissioners Dominguez, L'Heureux,
Montgomery, Nygaard and Schumacher
NOES:
ABSENT: Commissioner Baker
ABSTAIN:
FARRAHGf-BOUGLAS, Unairperson
CARLSBAD PLANNING COMMISSION
ATTEST:
DON NEU
Planning Director
PCRESONO. 6713 -3-
EXHIBIT 4
1 HOUSING COMMISSION RESOLUTION NO. 2010-002
2 A RESOLUTION OF THE HOUSING COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING
APPROVAL OF MINOR CHANGES TO THE CITY'S
4 INCLUSIONARY HOUSING REQUIREMENTS FOUND IN
ZONING ORDINANCE CHAP1ER 21.85.
5 CASK NAME: MINOR REVISIONS TO CHAPTER 2 \ .85
CASK NO.: ZjCAlMM^PA !QiQ26 """"
WHEREAS, the Planning Director has prepared a Zone Code Amendment (ZCA
10-03) and Local Coastal Program Amendment (LCPA 10-02) pursuant to Section 21,52.020 of8
9 the Carlsbad Municipal Code relating to inclusionary housing requirements; and
10 WHEREAS, the amendments are necessary to ensure compliance with recent case
11 law; and
*- WHEREAS, a Housing Commission responsibility is to recommend on proposed
i *%
amendments to affordable housing programs, policies and regulations; and
WHEREAS, the Housing Commission did, on June 17, 2010, hold a public
15
meeting as prescribed by law to consider said amendments; and
16
WHEREAS, at said public meeting, upon hearing and considering all testimonv
17
and arguments, if any, of all persons desiring to be heard, said Commission considered all factors1 iS
, Q relating to the amendments to Zoning Ordinance Chapter 21.85 - Inclusionary Housing.
2() NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing
21 Commission of the City of Carlsbad, California, as follows:
22 A) That the foregoing recitations are true and con-eel.
~* B) That based on the information provided within the Housing Commission stall
.,. report and testimony and arguments, if any, presented during the public meeting
of the Housing Commission on June 17. 2010, the Housing Commission hercb>
25 ADOPTS Resolution No. 2010-002. recommending APPROVAL to the
Planning Commission and City Council of the amendments to Zoning Ordinance
26 Chapter 21.85 as shown in Exhibit A attached hereto and based upon the findings
contained herein.
27
HC RE SOLUTION NO. 2010-002
28 PAGE I
3
4
5
6
7
8
9
10
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Findings:
1. The amendments to Zoning Ordinance Chapter 21.85 are necessary to comply with a
recent Court of Appeal decision in Palmer/Sixth Street Properties, LP v. City of Los
Angeles ("Palmer'),
2. The amendments to Zoning Ordinance Chapter 21.85, subject to the limitations
imposed by Palmer, maintain consistency with the intent and purpose of the
inclusionary housing requirements. Pan of the intent and purpose as stated in Section
21.85.010 A. is "...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." The City can
continue to implement this objective as the amendments make only minor revisions as
necessary to comply with Palmer and do not change any fundamental components of
the inclusionary housing requirements.
3. The amendments to Zoning Ordinance Chapter 21.85 improve use of the inclusionary
housing requirements by clarifying and improving the meaning of terms and by
performing other minor housekeeping changes.
PASSED,' APPROVED, AND ADOPTED at a special meeting of the Housing
Commission of the City of Carlsbad, California, held on the if* day of June 2010 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Bradwellj Igoe and Smith
None
Kirk and Wrisley
None
BOBBIE SMITH, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
-it\
DEBORAH K. FOUNTAIN
HOUSING AND REDEVELOPMENT DIRECTOR
HC RESOLUTION NO. 2010-002
^0
The City of Carlsbad Planning Department EXHIBIT 5
A REPORT TO THE PLANNING COMMISSION
Item No.
P.C. AGENDA OF: July 21, 2010
Application complete date: N/A
Project Planner: Scott Donnell
Project Engineer: N/A
SUBJECT: ZCA 10-03/LCPA 10-02 - INCLUSIONARY HOUSING - Request for a
recommendation of approval of minor changes to the City's inclusionary housing
requirements found in Zoning Ordinance Chapter 21.85.
I.RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolutions No. 6712 and 6713,
recommending APPROVAL of Zone Code Amendment ZCA 10-03 and Local Coastal Program
Amendment LCPA 10-02 based on the findings contained therein.
II. INTRODUCTION
To comply with recent case law, the City of Carlsbad is proposing an amendment to its
inclusionary housing requirements that would result in only minor changes. The changes are
primarily needed to clarify that the requirements apply to rental projects only under certain
circumstances. Presently, inclusionary housing requirements apply equally to rental and
ownership projects. Other than the limitations proposed to conform with case law, the changes
would not affect key inclusionary housing provisions such as the percentage and affordability of
inclusionary units that new development must provide, affordability tenure, and resale
restrictions.
Because the Zoning Ordinance is an implementing ordinance for the City's Local Coastal
Program, a Local Coastal Program Amendment (LCPA 10-02) is also required for this project.
On June 17, 2010, the City's Housing Commission reviewed and recommended approval of the
proposed minor revisions to Chapter 21.85. A function of the Housing Commission is to advise
and recommend on the amendment of affordable housing programs, policies, and regulations.
III. PROJECT DESCRIPTION AND BACKGROUND
The proposed amendment stems from a July 2009 Court of Appeal decision in Palmer/Sixth
Street Properties, L.P. v. City of Los Angeles ("Palmer"}. In this case, the court determined that
local inclusionary requirements for rental units are pre-empted by State law regarding rent
control unless the developer agrees by contract to limit rent in exchange for a "direct financial
contribution" or any other forms of assistance specified in density bonus law. The California
Supreme Court denied review of the decision allowing it to remain valid law.
^\
ZCA 10-03/LCPA 10-02 - INCLUSIONARY HOUSING
July 21, 2010
PAGE 2
Therefore, the proposed amendment to Zoning Ordinance Chapter 21.85 would add a
clarification that inclusionary housing requirements do not apply to:
Any rental project where the developer does not obtain direct financial assistance,
offset, or any other incentive or concession of the type specified in density bonus
law, although a mandatory density bonus may have been applied pursuant to the
provisions of [Zoning Ordinance] Chapter 21.86.
The proposed amendment also provides that a developer not receiving direct financial assistance,
offsets, or other incentives may voluntarily agree to provide inclusionary rental units.
In the proposed clarification above, "offsets" are offered through inclusionary housing
requirements and are separate from and can be in addition to the incentives and concessions the
City must grant if a developer requests a density bonus as allowed by state law.
Complying with Palmer necessitates changes to several sections of Zoning Ordinance Chapter
21.85; these changes can be summarized as follows:
1. Clarify when inclusionary housing requirements do and do not apply to rental
developments, consistent with Palmer and as described above. This affects the purpose
and intent, inclusionary housing requirement, in-lieu fees, and enforcement sections of
Chapter 21.85.
2. Replace "for sale unit" or "purchased unit" with "ownership unit," a change that would
occur throughout Chapter 21.85. Also, provide definitions for both "ownership unit" and
"rental unit," the latter a currently used term. These changes are proposed to eliminate
any ambiguity with "for sale unit" or "purchased unit," to make clear what ownership and
rental units are, and to provide assistance in implementing inclusionary housing
requirements in light of Palmer. As an example, the proposed definition of "ownership
unit" is "a residential unit with a condominium or other subdivision map allowing units to
be sold individually." This definition makes it clear that application of inclusionary
housing requirements is based not on whether a unit can be purchased or sold, but
whether it can be owned.
A few "housekeeping" revisions not resulting from the case law are also proposed to clarify
terms and correct references. These changes are:
3. Add a definition of "development revision," a term currently used but not defined. As
proposed, development revision would mean "revisions to development permits,
entitlements, and/or related maps."
4. Revise the definition of "conversion" to match the current meaning of the word in
Chapter 21.85. Presently, in the definition section, conversion is defined only as the
change of status of a home from a purchased unit to rental unit or vice versa. Elsewhere
in Chapter 21.85, however, conversion also means the change in status of a market rate
unit to an affordable unit. The amendment would add this additional meaning to the
definition.
ZCA 10-03/LCPA 10-02 - INCLUSIONARY HOUSING
July 21, 2010
PAGE 3
5. Perform other minor changes to improve use of Chapter 21.85. These changes include
correcting two wrong references to density bonus and second dwelling unit provisions
found in different chapters of the Zoning Ordinance.
Attachment 3 shows the revisions proposed to Chapter 21.85 in a strike out and underline
format; only those sections proposed for amendment are included.
IV. ANALYSIS
Staff developed its approval recommendation by analyzing the proposed amendment's
consistency with the following relevant documents:
General Plan
ZCA 10-03 is consistent with the General Plan in that the proposed amendment does not conflict
with any goal, objective or policy of the General Plan. For example, Land Use Element
Residential Policy C.I directs the City to encourage the provision of low and moderate income
housing to meet Housing Element objectives. In Carlsbad, affordable (low income) housing is
primarily achieved through inclusionary housing requirements. Accordingly, Housing Element
Program 3.1 states the City will continue to implement its inclusionary housing requirements
originally adopted in 1993.
Subject to the limitations imposed by Palmer, the proposed amendment does not interfere with
the ongoing implementation of inclusionary housing requirements to provide affordable housing.
Zoning Ordinance
ZCA 10-03 reflects sound principles of good planning. It is internally consistent with the other
Zoning Ordinance procedures and standards not proposed for amendment. Also, proposed
changes are limited to clarifying the applicability of inclusionary requirements to rental projects,
improving and clarifying the meaning of some terms, and making reference corrections. No
changes to land uses or development standards would be made by this amendment.
Furthermore, the amendment to Zoning Ordinance Chapter 21.85, subject to the limitations
imposed by Palmer, maintains consistency with the intent and purpose of the inclusionary
housing requirements. Part of the intent and purpose as stated in Zoning Ordinance Section
21.85.010 A. is "...to ensure that all residential development... provide a range of housing
opportunities for all identifiable economic segments of the population, including households of
lower and moderate income."
Local Coastal Program
The Zoning Ordinance is an implementing ordinance of the City's Local Coastal Program, which
provides policy guidance for land use and development in the City's Coastal Zone. To ensure the
amendment is consistent with coastal policy, a Local Coastal Program Amendment is necessary.
The proposed Local Coastal Program Amendment meets the requirements of, and is in
conformity with, the policies of Chapter 3 of the Coastal Act and all applicable policies of the
ZCA 10-03/LCPA 10-02 - INCLUSIONARY HOUSING
July 21, 2010
PAGE 4
Carlsbad Local Coastal Program not proposed for change by this amendment. The Local Coastal
Program does not have any inclusionary requirements and provides very little discussion on
affordable housing. Further, ZCA 10-03 does not conflict with any coastal zone regulations, land
use designations or policies with which development must comply.
McClellan-Palomar Airport Land Use Compatibility Plan
The proposed amendment affects land within the Airport Influence Area, which covers a large
portion of Carlsbad and includes residential properties; however, the amendment is consistent
with the adopted McClellan-Palomar Airport Land Use Compatibility Plan in that it does not
propose any land use or development standard changes that affect compatibility with the Plan's
safety, noise, airspace protection and overflight criteria.
V. ENVIRONMENTAL REVIEW
Municipal Code Title 19, Environmental Protection Procedures, identifies minor zone code
amendments which refine or clarify existing land use standards as being exempt from the
California Environmental Quality Act (CEQA) and thus not requiring environmental review.
This exemption is pursuant to CEQA Guideline 15061(b)(3), which states "when it can be seen
with certainty that there is no possibility that the activity in question may have a significant
effect on the environment, the activity is not subject to CEQA."
ATTACHMENTS;
1. Planning Commission Resolution No. 6712 (ZCA)
2. Planning Commission Resolution No. 6713 (LCPA)
3. Chapter 21.85 sections proposed for amendment with revisions shown
ATTACHMENT 3
ZCA 10-03/LCPA 10-02 - Inclusionary Housing
strike out/underline Version of Proposed Text Changes
Zoning Ordinance Chapter 21.85 is proposed to be amended as follows:
Chapter 21.85
INCLUSIONARY HOUSING
Sections:
21.85.010 Purpose and intent.
21.85.020 Definitions.
21.85.030 Inclusionary housing requirement.
21.85.035 New master plans or specific plans.
21.85.040 Affordable housing standards.
21.85.050 Calculating the required number of inclusionary units.
21.85.060 Inclusionary credit adjustment.
21.85.070 Alternatives to construction of inclusionary units.
21.85.080 Combined inclusionary housing projects.
21.85.090 Creation of inclusionary units not required.
21.85.100 Offsets to the cost of affordable housing development.
21.85.110In-lieufees.
21.85.120 Collection of fees.
21.85.130 Preliminary project application and review process.
21.85.140 Affordable housing agreement as a condition of development.
21.85.145 Agreement processing fee.
21.85.150 Agreement amendments.
21.85.155 Expiration of affordability tenure.
21.85.160 Pre-existing approvals.
21.85.170 Enforcement.
21.85.180 Savings clause.
21.85.190 Separability of provisionsSeverability.
21.85.010 Purpose 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 percent of all approved ownership residential
development and qualifying rental units as set forth in Section 21.85.030 A be restricted to and
affordable to lower-income households; subject to adjustment based on the granting of an
inclusionary credit;
2. Require that for those developments which provide ten or more units affordable to
lower-income households, at least ten percent of the lower-income units shall have three or more
bedrooms;
ATTACHMENT 3
3. Under certain conditions, allow alternatives to on-site construction as a means of
providing affordable units; and
4. In specific cases, allow inclusionary requirements to be satisfied through the
payment of an in-lieu fee as an alternative to requiring inclusionary units to be constructed.
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.
21.85.020 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 county median
income, adjusted for household size, as follows:
1. Extremely low-income, rental or for sale ownership units: the product of thirty
percent times thirty percent of the county median income, adjusted for household size;
2. Very low-income, rental and for sale ownership units: the product of thirty
percent times fifty percent of the county median income, adjusted for household size;
3. Low-income, for sale ownership units: the product of thirty percent times eighty
percent of the county median income, adjusted for household size; and
4. Low-income, rental units: the product of thirty percent times seventy percent of
the county median income, adjusted for household size.
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 an ownership 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 Code of Federal
Regulations (24CFR982). For a rental unit, allowable housing expenses include rent and a utility
allowance as established and adopted by the city of Carlsbad housing authority, as well as all
monthly payments made by the tenant to the lessor in connection with use and occupancy of a
housing unit and land and facilities associated therewith, including any separately charged fees,
utility charges, or service charges assessed by the lessor and payable by the tenant.
D. "Affordable housing policy team" shall consist of the community development
director, planning director, housing and redevelopment director, administrative services
director/finance director and a representative of the city attorney's office.
ATTACHMENT 3
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 an ownership
purchased unit to a rental unit or vice versa and/or a market-rate unit to a unit affordable to
lower-income households.
G. "Development revision" means revisions to development permits, entitlements,
and/or related maps.
GrH "Density bonus" shall have the same meaning as defined in Section
21.86.020(A)(7)ofthistitle.
HI. "Extremely low-income household" means those households whose gross income
is equal to or less than thirty percent of the median income for San Diego County as determined
by the U.S. Department of Housing and Urban Development.
IJ. "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.
JK. "Growth management control point" shall have the same meaning as provided in
Chapter 21.90, Section 21.90.045 of this title.
KL. "Incentives or concessions" shall have the same meaning as defined in Section
21.86.020(A)( 12-?) of this title.
LM. "Inclusionary credit" means a reduction in the inclusionary housing requirement
granted in return for the provision of certain desired types of affordable housing or related
amenities as determined by the city council.
MN. "Inclusionary housing project" means a new residential development or
conversion of existing residential buildings which has at least fifteen percent of the total units
reserved and made affordable to lower-income households as required by this chapter.
NO. "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.
OP. "Income" means any monetary benefits that qualify as income in accordance with
the criteria and procedures used by the city of Carlsbad housing and redevelopment department
for the acceptance of applications and recertifications for the tenant based rental assistance
program, or its successor.
PQ. "Low-income household" means those households whose gross income is more
than fifty percent but does not exceed eighty percent of the median income for San Diego County
as determined annually by the U.S. Department of Housing and Urban Development.
21
ATTACHMENT 3
QR. "Lower-income household" means low-income, very low-income and extremely
low-income households, whose gross income does not exceed eighty percent of the median
income for San Diego County as determined annually by the U.S. Department of Housing and
Urban Development.
RS. "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.
ST. "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.
U. "Ownership Unit" means a residential unit with a condominium or other
subdivision map allowing units to be sold individually.
V. "Rental Unit" means a residential unit with no condominium or other subdivision
map allowing units to be sold individually.
T-W. "Residential development" means any new residential construction of rental or for
sale ownership or rental units; or development revisions, including those with and without a
master plan or specific plan, planned unit developments, site development plans, mobile home
developments and conversions of apartments to condominiums, as well as dwelling units for
which the cost of shelter is included in a recurring payment for expenses, whether or not an
initial lump sum fee is also required.
UX- "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.
VY. "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.
WZ. "Very low-income household" means a household earning a gross income equal
to fifty percent or less of the median income for San Diego County as determined annually by
the U.S. Department of Housing and Urban Development.
21.85.030 Inclusionary housing 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 ownership units, as well as including the
conversion of apartments to condominiums? and to new construction of rental units where the
developer receives direct financial assistance, offsets, or any incentive of the type specified in
density bonus law pursuant to the provisions of Chapter 21.86 of this code, and the developer
agrees by contract to limit rents for below market-rate rental units. Any developer not receiving
direct financial assistance, offsets, or other incentives may voluntarily agree to provide
inclusionary rental units.
ATTACHMENT 3
B. For any residential development or development revision of seven or more units
as set forth in Section 21.85.030 A. not less than fifteen percent of the total units approved shall
be constructed and restricted both as to occupancy and affordability to lower-income households.
C. For those developments which are required to provide ten or more units
affordable to lower-income households, at least ten percent of the lower-income units shall have
three or more bedrooms.
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 mobile home park pursuant to Section 21.37.120 of the code;
3. The construction of a new residential structure which replaces a residential
structure that was destroyed or demolished within two years prior to the application for a
building permit for the new residential structure, provided that the number of residential units is
not increased from the number of residential units of the previously destroyed or demolished
residential structure;
4. Any residential unit which is accessory as defined in Section 21.04.020 of this
code; er
5. Second dwelling units not constructed to fulfill inclusionary housing requirements
and developed in accordance with Section 21.10.Q4£ 030 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. Any rental unit where the developer does not obtain direct financial assistance,
offset, or any other incentive or concession of the type specified in density bonus law, although a
mandatory density bonus may have been applied pursuant to the provisions of Chapter 21.86 of
this code; and
78. Those residential units which have obtained affordable housing approvals prior to
the effective date of the ordinance codified in this chapter, as set forth in Section 21.85.160 of
this chapter.
21.85.040 Affordable housing standards.
The affordable housing standards are as follows:
A. All qualifying residential developments pursuant to Section 21.85.030 A are
subject to and must satisfy the inclusionary housing requirements of this chapter,
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. If an applicant seeks to construct affordable housing to qualify for a
density bonus in accordance with the provisions of Chapter 21.86 (Residential Density Bonus),
those affordable dwelling units that qualify a residential development for a density bonus are in
addition to, and do not count toward satisfying, the inclusionary housing requirements of this
chapter.
B. Whenever reasonably possible, inclusionary units should be built on the
residential development project site.
ATTACHMENT 3
C. The required inclusionary units shall be constructed concurrently with market-rate
units unless both the final decision-making authority of the city and developer agree within the
affordable housing agreement to an alternative schedule for development.
D. Inclusionary rental units shall remain restricted and affordable to the designated
income group for fifty-five 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 ownership
units. Notwithstanding anything to the contrary in this chapter, no inclusionary unit shall be
rented for an amount which exceeds ninety 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 ownership units at a price
affordable to the target income level group, inclusionary for sale ownership units shall remain
affordable to subsequent income eligible buyers pursuant to a resale restriction with a term of
thirty years or for sale ownership 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 ownership units to satisfy
inclusionary requirements shall be designed to be compatible with conventional mortgage
financing programs including secondary market requirements.
F. Inclusionary units should be located on sites that are in proximity to or will
provide access to employment opportunities, urban services, or major roads or other
transportation and commuter rail facilities and that are compatible with adjacent land uses.
G. The design of the inclusionary units shall be reasonably consistent or compatible
with the design of the total project development in terms of appearance, materials and finished
quality.
H. Inclusionary projects shall provide a mix of 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 chapter. No inclusionary unit shall be
rented or sold except in accordance with this chapter.
21.85.070 Alternatives to construction of inclusionary 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-rate
30
ATTACHMENT 3
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 fifteen 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.
21.85.110 In-lieu fees.
Payment of a fee in lieu of construction of affordable units may be appropriate in the
following circumstances:
A. For any qualifying residential development or development revision pursuant to
Section 21.85.030 A of less than seven units, the inclusionary requirements may be satisfied
through the payment to the city of an in-lieu fee.
B. The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen
percent of the subsidy needed to make affordable to a lower-income household one newly
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 ownership units and rental units,
each with an assumed affordability tenure of at least fifty-five 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 dedication of land or other non-monetary contribution of a
value not less than the sum of the otherwise required in-lieu fee may be accepted as an
alternative to paying the in-lieu fee if it is determined that the non-monetary contribution will be
effectual in furthering the goals and policies of the housing element and this chapter. The
valuation of any land offered in-lieu shall be determined by an appraisal made by an agent
mutually agreed upon by the city and the developer. Costs associated with the appraisal shall be
borne by the developer.
F. Where a developer is authorized to pay a 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.
ATTACHMENT 3
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.
21.85.170 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 qualifying residential development governed by this chapter
pursuant to Section 21.85.030 A. No building permit or occupancy permit shall be issued, nor
any entitlement granted, for a project which is not exempt and does not meet the requirements of
this chapter. All inclusionary units shall be rented or owned in accordance with this chapter.
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.
21.85.190 Separability of provisionsSeverability.
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.
EXHIBIT 6
City oJ'Ocwtefoad ffotxsilng 4s ffeJ&hlbox'liood
Staff: Scott Doxmell
Senior*
Item No.
JUNE 17,2010
SUBJECT: ZCA 10-03/LCPA 10-02 -MINOR REVISIONS TO CHAPTER 21.85 -
Request for a recommendation of approval of minor changes to the
City's inclusionary housing requirements found in Zoning Ordinance
Chapter 21.85.
I. RECOMMENDATION
That the Housing Commission ADOPT Housing Commission Resolution No. 2010-002
recommending APPROVAL to the Planning Commission and City Council of the City of
Carlsbad of changes to Zoning Ordinance Chapter 21.85 as shown in Zone Code
Amendment 10-03 and Local Coastal Program 10-02 and based upon the findings contained
in Resolution 2010-002.
II. PROJECT BACKGROUND
To comply with recent case law, the City of Carlsbad is proposing minor amendments to its
inclusionary housing requirements. The changes are primarily needed to clarify that the
requirements apply to rental projects only under certain circumstances. Presently,
inclusionary housing requirements apply equally to rental and ownership projects. Other than
the limitations proposed to conform with case law, the changes would not affect key
inclusionary housing provisions such as the percentage and affordability of inclusionary
units that new development must provide, affordability tenure, and resale restrictions.
A Zone Code Amendment (ZCA 10-03) is needed for the changes proposed to Zoning
Ordinance Chapter 21.85; this chapter contains the city's inclusionary housing requirements.
Because the Zoning Ordinance is an implementing ordinance for the City's Local Coastal
Program, a Local Coastal Program Amendment (LCPA 10-02) is also required.
Following the Housing Commission's review, the Planning Commission and then the City
Council will hold public hearings to review the proposed amendments.
III. PROJECT DESCRIPTION
The proposed amendments stem from a July 2009 Court of Appeal decision in Palmer/Sixth
Street Properties, L.P. v. City of Los Angeles (^Palmer"). In this case, the court determined
that local inclusionary requirements for rental units are pre-empted by State law regarding
33
I
MINOR REVISIONS TO CHAP i ER 21.85
June 17,2010
PAGE 2
rent control unless the developer agrees by contract to limit rent in exchange for a "direct
financial contribution" or any other forms of assistance specified in density bonus law. This
decision was upheld by the California Supreme Court. Therefore, the proposed amendments
to Zoning Ordinance Chapter 21.85 would add a clarification that inclusionary housing
requirements do not apply to:
Any rental project where the developer does not obtain direct financial
assistance, offset, or any other incentive or concession of the type specified in
density bonus law, although a mandatory density bonus may have been
applied pursuant to the provisions of [Zoning Ordinance] Chapter 21.86.
The proposed amendments also provide that a developer not receiving direct financial
assistance, offsets, or other incentives may voluntarily agree to provide inclusionary rental
units.
In the proposed clarification above, "offsets" are offered through inclusionary housing
requirements and are separate from and can be in addition to the incentives and concessions
the City must grant if a developer requests a density bonus as allowed by state law.
Complying with Palmer necessitates changes to several sections of Zoning Ordinance
Chapter 21.85; many of these changes are minor and can be summed as follows:
1. Clarify when inclusionary housing requirements do and do not apply to rental
developments, consistent with Palmer and as described above. This affects the
purpose and intent, inclusionary housing requirement, in-lieu fees, and enforcement
sections of Chapter 21.85.
2. Replace "for sale unit" or "purchased unit" with "ownership unit," a change that
would occur throughout Chapter 21.85. Also, provide definitions for both
"ownership unit" and "rental unit," the latter a currently used term. These changes
are proposed to eliminate any ambiguity with "for sale unit" or "purchased unit," to
make clear what ownership and rental units are, and to provide assistance in
implementing inclusionary housing requirements in light of Palmer. As an example,
the proposed definition of "ownership unit" is "a residential unit with a
condominium or other subdivision map allowing units to be sold individually." This
definition makes it clear that application of inclusionary housing requirements is
based not on whether a unit can be purchased or sold, but whether it can be owned.
A few "housekeeping" revisions not resulting from the case law are also proposed to clarify
terms and correct references. These changes are:
3. Add a definition of "development revision," a term currently used but not defined.
As proposed, development revision would mean "revisions to development permits,
entitlements, and/or map revisions."
MINOR REVISIONS TO CHAPTER 21.85
June 17, 2010
PAGES
4. Revise the definition of "conversion" to match the current meaning of the word in
Chapter 21.85. Presently, in the definition section, conversion is defined only as the
change of status of a home from a purchased unit to rental unit or vice versa.
Elsewhere in Chapter 21.85, however, conversion also means the change in status of
a market rate unit to an affordable unit. The amendment would add this additional
meaning to the definition.
5. Perform other minor changes to improve use of Chapter 21.85. These changes
include correcting two wrong references to density bonus and second dwelling unit
provisions found in different chapters of the Zoning Ordinance.
Attached Exhibit 1 is the proposed Housing Commission resolution recommending approval
of the proposed changes. Attached to and referenced by the resolution is a draft City Council
ordinance that formally identifies each section of Chapter 21.85 proposed for amendment
with the recommended changes already incorporated. Also attached is Exhibit 2, which
shows the revisions proposed to Chapter 21.85 in a strike out and underline format; only
those sections proposed for amendment are included. Finally, attached Exhibit 3 shows
Chapter 21.85 in its entirety and as presently adopted.
IV. SUMMARY
The City's Housing Element, adopted by City Council in December 2009 and certified by
the state in March 2010, states the City will continue to implement its inclusionary housing
standards. The amendments to Zoning Ordinance Chapter 21.85, subject to the limitations
imposed by Palmer, maintain consistency with the intent and purpose of the inclusionary
housing requirements. Part of the intent and purpose as stated in Section 21.85.010 A. is
"...to ensure that all residential development... provide a range of housing opportunities for
all identifiable economic segments of the population, including households of lower and
moderate income."
The City can continue to implement this objective as the amendments make only minor
revisions to the inclusionary housing requirements as necessary to comply with Palmer and
do not change any fundamental components of the requirements. Additionally, other minor
revisions will improve use of the requirements by clarifying and improving the meaning of
terms and by correcting references.
V. ENVIRONMENTAL IMPACT
Municipal Code Title 19, Environmental Protection Procedures, identifies minor zone code
amendments which refine or clarify existing land use standards as being exempt from the
California Environmental Quality Act (CEQA) and thus not requiring environmental review.
This exemption is pursuant to CEQA Guideline 15061(b)(3), which states "when it can be
seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment, the activity is not subject to CEQA."
35
MINOR REVISIONS TO CHAr FER 21.85
June 17,2010
PAGE 4
VI. EXHIBITS
1. Housing Commission Resolution 2010-002
2; Exhibit 2: Chapter 21.85 sections proposed for amendment with revisions shown
3* Exhibit 3: Chapter 21.85 as presently adopted
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
Chapter 21.85
EXCLUSIONARY HOUSING
Sections:
21.85.010 Purpose and intent.
21.85.020 Definitions.
21.85.030 Inclusionary housing requirement.
21.85.035 New master plans or specific plans.
21.85.040 Affordable housing standards.
21.85.050 Calculating the required number of inclusionary units.
21.85.060 Inclusionary credit adjustment.
21.85.070 Alternatives to construction of inclusionary units.
21.85.080 Combined inclusionary housing projects.
21.85.090 Creation of inclusionary units not required.
21.85.100 Offsets to the cost of affordable housing development.
21.85.110 In-lieu fees.
21.85.120 Collection of fees.
21.85.130 Preliminary project application and review process.
21.85.140 Affordable housing agreement as a condition of development.
21.85.145 Agreement processing fee.
21.85.150 Agreement amendments.
21.85.155 Expiration of affordability tenure.
21.85.160 Pre-existing approvals.
21.85.170 Enforcement.
21.85.180 Savings clause.
21.85.190 Separability of provisions.
21.85.010 Purpose 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 percent of all approved residential
development be restricted to and affordable to lower-income households;
subject to adjustment based on the granting of an inclusionary credit;
37
EXHIBITS
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
2. Require that for those developments which provide ten or more units
affordable to lower-income households, at least ten percent of the lower-
income units shall have three or more bedrooms;
3. Under certain conditions, allow alternatives to on-site construction as a
means of providing affordable units; and
4. In specific cases, allow inclusionary requirements to be satisfied through
the payment of an in-lieu fee as an alternative to requiring inclusionary
units to be constructed.
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.
(Ord. NS-794 § 2, 2006; Ord. NS-535 § 1 (part), 2000)
21.85.020 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 county
median income, adjusted for household size, as follows:
1. Extremely low-income, rental or for-sale units: the product of thirty
percent times thirty percent of the county median income, adjusted for
household size;
2. Very low-income, rental and for-sale units: the product of thirty percent
times fifty percent of the county median income, adjusted for household
size;
3. Low-income, for-sale units: the product of thirty percent times eighty
percent of the county median income, adjusted for household size; and
4. Low-income, rental units: the product of thirty percent times seventy
percent of the county median income, adjusted for household size.
c •
EXHIBITS
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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 Code of Federal Regulations (24CFR982). For a rental unit,
allowable housing expenses include rent and a utility allowance as established and
adopted by the city of Carlsbad housing authority, as well as all monthly
payments made by the tenant to the lessor in connection with use and occupancy
of a housing unit and land and facilities associated therewith, including any
separately charged fees, utility charges, or service charges assessed by the lessor
and payable by the tenant.
D. "Affordable housing policy team" shall consist of the community development
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" shall have the same meaning as defined in Section
21.86.020(A)(7) of this title.
H. "Extremely low-income household" means those households whose gross income
is equal to or less than thirty percent of the median income for San Diego County
as determined by the U.S. Department of Housing and Urban Development.
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.
f
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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 or concessions" shall have the same meaning as defined in Section
21.86.020(A)(7) of this title.
L. "Inclusionary credit" means a reduction in the inclusionary housing requirement
granted in return for the provision of certain desired types of affordable housing
or related amenities as determined by the city council.
M. "Inclusionary housing project" means a new residential development or
conversion of existing residential buildings which has at least fifteen percent of
the total units reserved and made affordable to lower-income households as
required by this chapter.
N. "Inclusionary unit" means a dwelling unit that will be offered for rent or sale
exclusively to and which shall be affordable to lower-income households, as
required by this chapter.
O. "Income" means any monetary benefits that qualify 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 tenant based rental assistance program, or its successor.
P. "Low-income household" means those households whose gross income is more
than fifty percent but does not exceed eighty percent of the median income for
San Diego County as determined annually by the U.S. Department of Housing
and Urban Development.
Q. "Lower-income household" means low-income, very low-income and extremely
low-income households, whose gross income does not exceed eighty percent of
the median income for San Diego County as determined annually by the U.S.
Department of Housing and Urban Development.
R. "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.
S. "Offsets" means concessions or assistance to include, but not be limited to, direct
financial assistance, density increases, standards modifications or any other
financial, land use, or regulatory concession which would result in an identifiable
cost reduction enabling the provision of affordable housing.
i . (
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
T. "Residential development" means any new residential construction of rental or
for-sale units; or development revisions, including those with and without a
master plan or specific plan, planned unit developments, site development plans,
mobile home 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.
U. "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.
V. "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.
W. "Very low-income household" means a household earning a gross income equal
to fifty percent or less of the median income for San Diego County as determined
annually by the U.S. Department of Housing and Urban Development.
(Ord. NS-794 § 3, 2006: Ord. NS-535 § 1 (part), 2000)
21.85.030 Inclusionary housing 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 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 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
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
conversion of apartments to condominiums;
2. Conversion of a mobile home park pursuant to Section 21.37.120 of the
code;
3. The construction of a new residential structure which replaces a residential
structure that was destroyed or demolished within two years prior to the
application for a building permit for the new residential structure,
provided that the number of residential units is not increased from the
number of residential units of the previously destroyed or demolished
residential structure;
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 fulfill 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 the ordinance codified in this chapter, as set
forth in Section 21.85.160 of this chapter.
(Ord. NS-535 § 1 (part), 2000)
21.85.035 New master plans or specific plans.
New master plans and specific plans shall submit an inclusionary housing plan as
follows:
A. All master plans and specific plans approved on or after the effective date of the
ordinance codified in this chapter 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;
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
3. The designated sites for the location of the inclusionary units, including
but not limited to any sites for locating off-site inclusionary housing
projects or combined inclusionary housing 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 21.85.140 of this chapter.
B. The location and phasing of inclusionary dwelling units may be modified as a
minor amendment to the master plan pursuant to Section 21.38.120 of this title if
the city council authorizes such modifications when approving the master plan.
C. All existing master plans or specific plans proposed for major amendment,
pursuant to Section 21.38.120 of this code, shall incorporate into the amended
master plan or specific plan document an inclusionary housing plan, consistent
with this section of this chapter.
(Ord. NS-535 § 1 (part), 2000)
21.85.040 Affordable housing standards.
The affordable housing standards are as follows:
A. All residential developments are subject to and must satisfy the inclusionary
housing requirements of this chapter, notwithstanding a developer's request to
process a residential development under other program requirements, laws or
regulations, including but not limited to Chapter 21.86 (Residential Density
Bonus) of this code. If an applicant seeks to construct affordable housing to
qualify for a density bonus in accordance with the provisions of Chapter 21.86
(Residential Density Bonus), those affordable dwelling units that qualify a
residential development for a density bonus are in addition to, and do not count
toward satisfying, the inclusionary housing requirements of this chapter.
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
7
(" r
EXHIBITS
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
units unless both the final decision-making authority of the city and developer
agree within the affordable housing agreement to an alternative schedule for
development.
D. Inclusionary rental units shall remain restricted and affordable to the designated
income group for fifty-five 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 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 years or for-sale units may be sold at a market price to other than targeted
households provided that the sale shall result in the recapture by the city or its
designee of a financial interest in the units equal to the amount of subsidy
necessary to make the unit affordable to the designated income group and a
proportionate share of any appreciation. Funds recaptured by the city shall be
used in assisting other eligible households with home purchases at affordable
prices. To the extent possible, projects using for-sale units to satisfy inclusionary
requirements shall be designed to be compatible with conventional mortgage
financing programs including secondary market requirements.
F. Inclusionary units should be located on sites that are in proximity to or will
provide access to employment opportunities, urban services, or major roads or
other transportation and commuter rail facilities and that are compatible with
adjacent land uses.
G. The design of the inclusionary units shall be reasonably consistent or compatible
with the design of the total project development in terms of appearance, materials
and finished quality.
H. Inclusionary projects shall provide a mix of 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 chapter. No
inclusionary unit shall be rented or sold except in accordance with this chapter.
(Ord. NS-794 § 4,2006; Ord. NS-535 § 1 (part), 2000)
I (
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
21.85.050 Calculating the required number of inclusionary units.
Subject to adjustments for an inclusionary credit, the required number of lower-income
inclusionary units shall be fifteen percent of the total residential units, approved by the final
decision-making authority. If the inclusionary units are to be provided within an off-site
combined or other project, the required number of lower-income inclusionary units shall be
fifteen percent of the total residential units to be provided both on-site and/or off-site. 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 0.5 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 1: Total residential units = fifteen percent inclusionary units plus eighty-five
percent market-rate units. If the final decision-making authority approves one hundred total
residential units, then the inclusionary requirement equals fifteen percent of the "total" or fifteen
units (100 x .15 = 15). The allowable market-rate units would be eighty-five percent of the
"total" or eighty-five units.
Example 2: If the inclusionary units are to be provided off-site, 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 one hundred market-rate units are approved, then this
total is divided by .85 which provides a total residential unit count (100 + .85 = 117). The fifteen
percent requirement is applied to this "total" (one hundred seventeen units) which equals the
inclusionary unit requirement (117 x .15 = 17.6 units).
(Ord. NS-794 § 5, 2006: Ord. NS-535 § 1 (part), 2000)
21.85.060 Inclusionary credit adjustment.
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.
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 percent of all residential units approved. A schedule of
inclusionary housing credit specifying how credit may be earned shall be adopted by the city
council and made available to developers subject to this chapter.
(Ord. NS-794 § 6,2006: Ord. NS-535 § 1 (part), 2000)
15
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
21.85.070 Alternatives to construction of inclusionary 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 fifteen 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.
(Ord. NS-535 § 1 (part), 2000)
21.85.080 Combined inclusionary housing projects.
An affordable housing requirement may be satisfied with off-site 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
10
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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
on-site 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 on-site development entity to deliver
affordable housing. Also to be considered are whether the off-site 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 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.
(Ord. NS-535 § 1 (part), 2000)
21.85.090 Creation of inclusionary units not required.
Inclusionary units created which exceed the final requirement for a project may, subject
to city council approval in the affordable housing agreement, be utilized by the developer to
satisfy other inclusionary requirements for which it is obligated or market the units to other
developers as a combined project subject to the requirements of Section 21.85.080.
(Ord. NS-535 § 1 (part), 2000)
21.85.100 Offsets to the cost of affordable housing 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
11
47
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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.
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 of this chapter 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 of this chapter.
(Ord. NS-794 § 7, 2006: Ord. NS-535 § 1 (part), 2000)
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.
B. The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen
percent of the subsidy needed to make affordable to a lower-income household
one newly 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 fifty-five 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 dedication of land or other non-monetary
contribution of a value not less than the sum of the otherwise required in-lieu fee
may be accepted as an alternative to paying the in-lieu fee if it is determined that
the non-monetary contribution will be effectual in furthering the goals and
policies of the housing element and this chapter. The valuation of any land offered
in-lieu shall be determined by an appraisal made by an agent mutually agreed
12
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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.
(Ord. NS-535 § 1 (part), 2000)
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.
(Ord. NS-535 § 1 (part), 2000)
21.85.130 Preliminary project application 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 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
13
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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 inclusionary credit adjustments, or
ninety days for projects requesting offsets or inclusionary credit adjustments, the
department shall provide to an applicant, a letter which identifies project issues of
concern, the offsets and inclusionary credit 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.
(Ord. NS-794 § 8, 2006; Ord. NS-535 § 1 (part), 2000)
21.85.140 Affordable housing agreement as a condition of development.
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
redevelopment 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 an inclusionary credit, 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 an inclusionary credit, 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.
14
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
B. An affordable housing agreement, for which the inclusionary housing requirement
will be satisfied through new construction of inclusionary units, either on-site or
off-site, 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 inclusionary credit
adjustment;
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.
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.
(Ord. NS-794 §§ 9, 10,2006; Ord. NS-535 § 1 (part), 2000)
15
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
21.85.145 Agreement processing fee.
The city council may establish by resolution, fees to be paid by the developer at the time
of preliminary project application to defray the city's cost of preparing and/or reviewing all
inclusionary housing agreements.
(Ord. NS-535 § 1 (part), 2000)
21.85.150 Agreement amendments.
Any amendment to an affordable housing agreement shall be processed in the same
manner as an original application for approval, except as authorized in Section 21.85.035(8).
Amendments to affordable housing agreements initially approved prior to the effective date of
the ordinance codified in this chapter shall be entitled to consideration under the ordinance
provisions superseded by the ordinance codified in this chapter.
(Ord. NS-535 § 1 (part), 2000)
21.85.155 Expiration of affordability 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.
(Ord. NS-535 § 1 (part), 2000)
21.85.160 Pre-existing approvals.
Any residential developments for which a site development plan for the affordable
housing component of the development was approved prior to the effective date of the ordinance
codified in this chapter shall be subject to the ordinance in effect at the time of the approval.
(Ord. NS-535 § 1 (part), 2000)
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.
16
EXHIBIT 3
ZCA 10-03/LCPA 10-02 - Minor Revisions to Chapter 21.85
Chapter 21.85 as presently adopted
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.
(Ord. NS-535 § 1 (part), 2000)
21.85.180 Savings clause.
All code provisions, ordinances, and parts of ordinances in conflict with the provisions of
this chapter are repealed. The provisions of this chapter, insofar as they are substantially the
same as existing code provisions relating to the same subject matter shall be construed as
restatements and continuations thereof and not as new enactments. With respect, however, to
violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of the
ordinance codified in this chapter, under any 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.
(Ord. NS-535 § 1 (part), 2000)
21.85.190 Separability of provisions.
If any provision of this chapter or the application thereof to any person or circumstances
is held invalid, the remainder of the chapter and the application of the provision to other persons
not similarly situated or to other circumstances shall not be affected thereby.
(Ord. NS-535 § 1 (part), 2000)
17
S3
EXHIBIT 7
Planning Commission Minutes July 21,2010 Page 2
vote as a consent item. Staff would be available to respond to questions if the Commission or someone
from the public wished to pull Agenda Item 1.
Chairperson Douglas asked if any member of the audience wished to address Agenda Item 1. Seeing
none, she opened and closed public testimony,
MOTION
ACTION: Motion by Commissioner L'Heureux, and duly seconded, that the Planning
Commission approve Agenda Item 1 including the errata sheet.
VOTE: 6-0-1
AYES: Chairperson Douglas, Commissioner DomJnguez, Commissioner L'Heureux,
Commissioner Montgomery, Commissioner Nygaard and Commissioner
Schumacher
NOES: None
ABSENT: Commissioner Baker
ABSTAIN: None
Chairperson Douglas asked Mr. Neu to introduce the next item.
2. ZCA 10-03H.CPA 10-02 - INCLUSIONARY HOUSING - Request for a recommendation
of approval of minor changes to the City's inclusionary housing requirements found in
Zoning Ordinance Chapter 21.85.
Mr. Neu introduced Agenda Item 2 and stated Senior Planner Scott Donnell would make the Staff
presentation.
Chairperson Douglas opened the public hearing on Agenda Item 2.
Mr. Donnell gave a brief presentation and stated he would be available to answer any questions.
Chairperson Douglas asked if there were any questions of Staff.
Commissioner Dominguez asked if Variances would be a considered form of assistance. Mr. Donnell
stated it would be more of a matter when a developer would come to the City to ask for assistance in
meeting the inclusionary housing requirement. Commissioner Dominguez asked what happens to
properties that are part of the inclusionary housing that go off contract. Mr. Donnell stated affordability
restrictions are good for 55 years. When those terms are up the units are subject to becoming market
rate units. Mr. Donnell stated that in many of the instances, the city has first right of refusal to purchase
the unit or provide some sort of assistance to keep the unit affordable. Commissioner Dominguez further
asked if there is an inclusionary requirement for apartments that are subsequently converted to
condominiums. Mr. Donnell stated the conversion of those apartments would be subject to inclusionary
standards.
Mr. Neu stated that in regards to Variances, the way the affordable housing projects are processed, Site
Development Plans are required and within that section, the City is allowed to do standards modifications
for an affordable project. It gives the City greater flexibility and latitude to the decision making bodies to
modify standards through the site plan as opposed to doing a variance. Staff has also looked at
standards modifications in helping the affordability factor.
Jane Mobaldi, Assistant City Attorney, stated that the case law refers to the Density Bonus Law which
talks about incentives and concessions with examples such as financial support and contribution of land.
Commissioner Nygaard asked if the same applies to any variances the state might give. Mr. Donnell
stated that if a developer sought a density bonus that would trigger the inclusionary housing requirement.
Planning Commission Minutes July 21, 2010 Page 3
Commissioner Schumacher asked if this will be codified and become statutory and if other cities are
following suit. Ms. Mobaldi stated it is a movement across the state. Several years ago there was a case
in Napa, California where their inclusionary ordinance was approved by the court. One of the
components of that ordinance was rent restriction for rental housing. There was later case law, the
Palmer Case, which stated the ordinance violated rent control law. Because there was a conflict in the
two districts, the Palmer case was forwarded to the Supreme Court. The Supreme Court denied review
which means the most recent decision is upheld. Ms. Mobaldi stated that because of this, cities are now
amending their inclusionary ordinances in order to comply with the case law, A city cannot make rental
units satisfy an affordable housing requirement through inclusionary standards unless the City is
somehow giving another concession which then makes it voluntary on the part of the developer.
Commissioner Montgomery commented that a market rate second dwelling unit would essentially be rent
controlled because of the maximum square footage allowed and asked if a unit could be counted as an
affordable unit because of that. Mr. Donnell stated the City would not count those units as inclusionary
but the units could be counted as affordable to lower income families if documentation proved it.
Chairperson Douglas asked if the City would have less affordable housing because of the changes to the
Inclusionary Housing Ordinance. Mr, Donnell stated that was correct. Mr. Donnell stated that the change
is minimal because standalone apartment complexes are not that common in the City. Chairperson
Douglas asked if Staff had an approximate number of units that could be lost because of the changes.
Mr. Donnell stated it is difficult to predict how many inclusionary units could be built over the next several
years; however looking at the number of units built in the 10 year period from 1996 to 2007, under 10% of
the inclusionary units derived from standalone apartment complexes and 90% are from ownership units.
Chairperson Douglas asked if there were any further questions of Staff. Seeing none, she asked if there
were any members of the audience who wished to speak on the item. Seeing none, Chairperson
Douglas opened and closed public testimony.
MOTION
ACTION: Motion by Commissioner L'Heureux, and duly seconded, that the Planning
Commission adopt Planning Commission Resolutions No. 6712 and 6713,
recommending approval of Zone Code Amendment ZCA 10-03 and Local Coastal
Program Amendment LCPA10-02 based on the findings contained therein.
VOTE: 6-0-1
AYES: Chairperson Douglas, Commissioner Dominguez, Commissioner L'Heureux,
Commissioner Montgomery, Commissioner Nygaard and Commissioner
Schumacher
NOES: None
ABSENT: Commissioner Baker
ABSTAIN: None
Chairperson Douglas asked Mr. Neu to introduce the next item.
3. SECOND DWELLING UNITS AND RENT RESTRICTION - Planning Commission
discussion to consider recommending to the City Council that they direct staff to prepare
the necessary policy and code amendments to exclude homeowner built second dwelling
units from low income rent restrictions.
Mr. Neu introduced Agenda Item 3 and stated Senior Planner Scott Donnell would make the Staff
presentation.
Chairperson Douglas opened the public hearing on Agenda Item 3.
Mr. Donnell gave a detailed presentation and stated he would be available to answer any questions.
EXHIBIT 8
Minutes of: SPECIAL HOUSING COMMISSION
Time of Meeting: 6:00 P.M.
Date of Meeting: JUNE 17, 2010
Place of Meeting: HOUSING & NEIGHBORHOOD SERVICES CONFERENCE ROOM
CALL TO ORDER
Chairperson Smith called the Meeting to order at 6:00 p.m.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was not said due to the office not having a flag.
ROLL CALL
Present: Commissioners: Emelda Bradwell
Susan Igoe
Bobbie Smith
Absent: Craig Kirk
Hope Wrisley
Staff Present: Housing and Redevelopment Director: Debbie Fountain
Senior Planner: Scott Donnell
APPROVAL OF MINUTES
Minutes of March 11, 2010, meeting were approved as written.
VOTE: 3-0
AYES: Bradwell, Igoe, and Smith
NOES: None
ABSTAIN: Kirk and Wrisley
ABSENT: None
ITEM NOT ON AGENDA
There were no items not on the agenda.
NEW BUSINESS
Scott Donnell, Senior Planner, said the presentation is for minor changes to the city's inclusionary
housing ordinance. The inclusionary housing ordinance is part of our zoning ordinance. It contains most
of the land use standards for the City of Carlsbad. Changes that are proposed and that you are
considering tonight all stem from the lawsuit known as Palmer versus the City of Los Angeles. Palmer is
a developer, and at the time was proposing to construct rental apartments, and the City of Los Angeles
imposed an inclusionary housing requirement similar to our inclusionary housing ordinance. Palmer filed
suit and the case made its way to the Court of Appeals and eventually to the California State Supreme
Court. The State Supreme Court refused to hear it, but upheld the Court of Appeals decision. That
decision was that the inclusionary housing requirements do not apply to rental projects. That is based on
some previous case law. Our City Attorney felt that we needed to amend our inclusionary housing
ordinance to come in line with that Court of Appeals decision. Essentially what it says is, for developers
proposing apartment projects, the city cannot apply inclusionary requirements to them unless they are
requesting some kind of city assistance. As you know, we use our inclusionary housing ordinance to get
affordable housing. This court ruling says the city cannot do that with rental projects. The caveat to that
is if a developer of affordable housing comes along and wants to build apartments, and also need
financial assistance or some kind of incentive then that triggers the inclusionary housing requirement.
Really the only time the court ruling would apply is if a developer did not request any assistance. The
changes that have been proposed for the inclusionary housing ordinance mainly are based just on the
court case. There isn't anything currently in the ordinance to say inclusionary housing requirements don't
apply to apartment developments unless the developer is requesting the assistance or incentive.
SPECIAL HOUSING COMMISSION MINUTES
JUNE 17, 2010
PAGE 2 of 4
At the same time, we have gone through the ordinance and made some minor changes. We wanted to
add some terms and clarify some terms so the ordinance is just easier to use. We also did some
housekeeping. For the most part a couple of references to some of the code sections are wrong and they
have been corrected. The resolution you have would recommend approval of the changes. It simply
says the inclusionary housing ordinance still can do its purpose, still requires affordable housing, subject
to the limitations of this court case, the Palmer case. Your recommendation gets forwarded to the
Planning Commission. The Planning Commission also makes a recommendation. Both
recommendations go to City Council for final approval. I would be happy to walk through this and go over
the changes with you. That is my presentation.
Debbie Fountain, the Housing and Redevelopment Director, said one of the things that has been working
in the City of Carlsbad is that we don't get too many stand alone apartment projects that people are
proposing. Most of the time if we get an apartment project, it is because they have the inclusionary
housing requirement on their single-family home development, If they have a single-family home
development, they can build an apartment complex within their master plan or specific plan or subdivision
to meet the inclusionary requirements for the single-family home subdivision. We can put restrictions on
that because that is meeting their inclusionary requirement for their single-family home development. It is
only if somebody came in and wanted to build an apartment complex and they didn't have any other
single-family home units or anything that would trigger the inclusionary, other than the apartment
complex itself, then we would not be able to get oar< 15% inclusionary unless they asked for financial
assistance. We don't think it will have a real widespread problem for us. Depending on what the market
does, if there is a big run on trying to build more apartments as standalone projects, it might be an issue.
We think in general, it is not going to have a huge impact on our program. As you all know, we are not
getting a lot of market rate housing of any type right now. We were hoping the City of Los Angeles would
have won on appeal and this wouldn't have happened so we waited until all the final actions were done
before any changes were proposed to the ordinance. It is unfortunately because it goes back to a law
that has been on the books for a while called the Costa-Hawkins Act, which when originally proposed,
was limited to a certain number of cities; it wasn't supposed to be this widespread prohibition on rent
restrictions, but as it got final adoption, it didn't go along with this original intent. The developer in the
case in Los Angeles found a loophole and was able to get its inclusionary requirement removed as a
result of this lawsuit, but it doesn't affect widespread on developers. Instead I think some of the
developers thought it might have had more of an impact. We are hoping it won't have a huge negative
impact on us in trying to get more affordable housing, but it is a reality that we have to deal with and make
some repairs to our ordinance. Would you like Mr. Donnell to go through the changes with you?
Commissioner Bradwell asked if that would create a conflict of interest down the line in some way if they
are asking the city for funding, would that present a conflict of interest?
Ms. Fountain asked if Commissioner Bradwell meant if they were trying to build housing and asking the
city for money.
Commissioner Bradwell said right.
Ms. Fountain said she doesn't think it would if there is some specific public purpose served by that. So if
they are requesting money, and we say we need something in return for that such as affordable units,
then it shouldn't cause us any problems.
Commissioner Igoe said she is disappointed too and understands what is being said.
Ms. Fountain said we are doing what we need to do. We are not going above and beyond the changes of
the ordinance which is to address the lawsuit. If you look at some of the history of the Costa Hawkins
Act, it was in place before we adopted our inclusionary so it is not a new law. You would have thought
this would have come up sooner than it did. Partly that has to do with the fact that it is difficult to interpret
what that actual law says. Whoever could have benefitted from it initially, did benefit and then a lot of
SPECIAL HOUSING COMMISSION MINUTES
JUNE 17,2010
PAGE 3 of 4
people did not pay much attention to it afterwards because of the original intent. It is helpful to make sure
we are clear with how things get interpreted so we don't have these some type of issues that somebody
could challenge.
Chairperson Smith said she can appreciate bringing this to the Commission's attention because anything
could come up and we may not be aware of the law in Los Angeles. In reading over this material, it made
me wonder. At least we are informed as to what is going on.
Commissioner Igoe asked what the project they are looking to build is. I don't know that I read that in the
material. What is the project they are talking about building.
Ms. Fountain said we don't have any specific project with this. This is just the ordinance revision. Mr.
Donnell was mentioning the case which is what triggered the changes in the requirement. That wasn't a
project for Carlsbad. That was a project outside our city limits. This one is just the ordinance changes.
We don't' have any project for you at this point.
Mr. Donnell said he ran some numbers looking at all the affordable housing that has been built in the City
of Carlsbad from 1996 through 2007. I found three standalone apartment projects. If they were built
today and subject to this new law and therefore didn't provide inclusionary housing, then the question is
how much of that affordable housing would be lost, I came up with about 123 units; that would be only
6% of the almost 2,000 inclusionary units that have been built. It really is a small number.
Ms. Fountain said if some of those were doing it for inclusionary purposes, they would still have had to do
it. Fortunately it doesn't affect anything we have already approved.
Commissioner Bradwell asked if the approval of this ordinance, will it safeguard against any future
litigation.
Ms. Fountain said we never totally get out of the risk of somebody suing us. People can sue at any time.
Because the attorneys review all of these ordinances and they are subject to the test of other case law,
we feel like we are in a very good position for defending our inclusionary ordinance. It doesn't preclude
somebody from suing us in the future, but we think we have a good ordinance that is consistent with other
case law related to the right to implement inclusionary ordinances. This was law related to application of
inclusionary ordinances. Those could change in the future so we can't totally protect against those. We
have a City Attorney's office that watches all of that pretty closely. They usually let us know if they think
something is coming our way.
Commissioner Igoe make a recommendation that the Housing Commission adopt Housing Commission
Resolution 2010-002 recommending approval to the Planning Commission and the City Council of the
City of Carlsbad changes to Zoning Ordinance Chapter 21.85 as shown in Zone Code Amendment 10-03
on Local Coastal Program 10-02 and based upon the findings contained in Resolution 2010-002.
Commissioner Bradwell seconded the motion.
VOTE: 3-0
AYES: Bradwell, Igoe, and Smith
NOES: None
ABSTAIN: None
ABSENT: Kirk and Wrisley
DIRECTOR'S REPORT
Ms. Fountain said she does not have any announcements or updates other than she did want to share
about the Tavarua Senior Apartments on Harding Street. They are the senior units that has been going
through several application processes to try and get financing. They went for their second round of tax
credits and got denied again so they are going to go one more time. They are also trying to work on
Sfc
Easy Peel Labels
Use Avery® TEMPLATE 5160®Paper
See Instruction Sheet j
for Easy Peel Feature ^IAVERY®5160®
BUREAU OF INDIAN AFFAIRS
2800 COTTAGE WAY
SACRAMENTO CA 95825
BUSINESS, TRANS & HSG AGENCY
STE 2450
980 NINTH ST
SACRAMENTO CA 95814
CA COASTAL COMMISSION
STE 103 ^^
7575 METRpEOttTANDR
SAN^IEGOCA 92108
CANNEL ISLANDS NATL PARK
SUPERINTENDENT'S OFFICE
1901 SPINNAKER DR
SAN GUENA VENTURA CA 93001
CITY OF ENCINITAS
505 S VULCAN AV
ENCINIL 92024
COASTAL CONSERVANCY
STE 1100
1330 BROADWAY
OAKLAND CA 94612
COUNTY OF SD
SUPERVISOR
RM335
1600 PACIFIC
SAN DIEGO CA 92101
DEPT OF DEFENSE
LOS ANGELES DISTENG
PO BOX 2711
LOS ANGELES CA 90053
DEPT OF ENERGY
STE 400
611 RYAN PLZDR
ARLINGTON TX 760114005
DEPT OF ENERGY
STE 350
901 MARKET ST
SAN FRANCISCO CA 94103
DEPT OF FISH & GAME
ENVSERVDIV
PO BOX 944246
SACRAMENTO CA 942442460
DEPT OF FOOD & AGRICULTURE
AGRICULTURAL RESOURCES
RM100
1220 N ST
SACRAMENTO CA 95814
DEPT OF FORESTRY
ENV COORD
PO BOX 944246
SACRAMENTO CA 942442460
DEPT OF HOUSING & URBAN DEV
600 HARRISON ST
SAN FRANCISCO CA 94107
DEPT OF JUSTICE
DEPTOFATTYGEN
RM700
110 WEST AST
SAN DIEGO CA 92101
DEPT OF TRANSPORTATION
RM 5504
1120NST
SACRAMENTO CA 95814
FED AVIATION ADMIN WESTERN REG
PO BOX 92007
LOS ANGELES CA
MARINE RESOURCES REG DR & G
ENV SERVICES SPR
STEJ
4665 LAMPSON AVE
LOS ALAMITOS CA 907205139
OFF OF PLANNING & RESEARCH
OFF OF LOCAL GOV AFFAIRS
PO BOX 3044
SACRAMENTO CA 958123044
SAN FRANCISCO BAY CONSERV & DEV
COM
STE 2600
50 CALIFORNIA ST
SAN FRANCISCO CA 941114704
SANDAG
EXEC DIRECTOR
STE 800
I DIEGO CA 92101
SD COUNTY
PLANNING & LAND USE DEPT
STE B-5
5201 RUFFIN RD
SAN DIEGO CA 92123
SDGE
8315 CENTURY PARK CT
SAN DIEGO CA 92123
STATE LANDS COMMISSION
STE 1005
100 HO WE A V
SACRAMENTO CA 958258202
US ARMY CORPS OF ENGINEER
1455 MARKET ST FL17
SAN FRANCISCO CA 94103
US BUREAU OF LAND MGMT
STE RM W
2800 COTTAGE WY
SACRAMENTO CA 95825
US BUREAU OF RECLAMATION
MID PACIFIC REG
2800 COTTAGE WY
SACRAMENTO CA 95825
US FISH & WILDLIFE SERVICES
2800 COTTAGE WAY
STE W-2605
SACRAMENTO CA 95825
USDA RURAL DEVELOPMENT
DEPT 4169
430 GST
DAVIS CA 95606
WATER RESOURCES CONTROL BOARD
PO BOX 100
SACRAMENTO CA 95801
Etiquettes faciles a peler
Utilisez le gabarit AVERY® 5160®Sens de chargement
Consultez la feuille
d'instruction
www.avery.com
1-800-GO-AVERY
Easy Peel Labels
Use Avery® TEMPLATE 5160®
\ A
j^Feed Paper
See Instruction Sheet j
for Easy Peel Feature^^AVERY®5160® !
CARLSBAD UNIF SCHOOL DIST
6225 EL CAMINO REAL
CARLSBAD CA 92011
SAN MARCOS SCHOOL DISTRICT
STE 250
255 PICO AVE
SAN MARCOS CA 92069
ENCINITAS SCHOOL DISTRICT
101 RANCHO SANTA FE RD
ENCINITAS CA 92024
SAN DIEGUITO SCHOOL DISTRICT
701 ENCINITAS BLVD
ENCINITAS CA 92024
LEUCADIA WASTE WATER DIST
TIM JOCHEN
1960 LA COSTA AVE
CARLSBAD CA 92009
OLIVENHAIN WATER DISTRICT
1966OLIVENHAINRD
ENCINITAS CA 92024
CITY OF ENCINITAS
505 S VULCAN AV
ENCINITAS CA 92024
CITY OF SAN MARCOS
1 CIVIC CENTER DR
SAN MARCOS CA 92069-2949
CITY OF OCEANSIDE
300 NORTH COAST HWY
OCEANSIDE CA 92054
CITY OF VISTA
600 EUCALYPTUS AVE
VISTA CA 92084
VALLECITOS WATER DISTRICT
201 VALLECITOS DE ORO
SAN MARCOS CA 92069
I.P.U.A.
SCHOOL OF PUBLIC ADMIN AND
URBAN STUDIES
SAN DIEGO STATE UNIVERSITY
SAN DIEGO CA 92182-4505
CALIF DEPT OF FISH & GAME
4949 VIEWRIDGE AV
SAN DIEGO CA 92123
REGIONAL WATER QUALITY
STE 100
9174 SKY PARK CT
SAN DIEGO CA 92123-4340
SD COUNTY PLANNING
STEB
5201 RUFFIN RD
SAN DIEGO CA 92123
LAFCO
1600 PACIFIC HWY
SAN DIEGO CA 92101
AIR POLLUTION CONTROL DISTRICT
10124 OLD GROVE RD
SAN DIEGO CA 92131
SANDAG
STE 800
401 B STREET
SAN DIEGO CA 92101
U.S. FISH & WILDLIFE
601 CHIDDEN VALLEY RD
CARLSBAD CA 92011
CA COASTAL COMMISSION
STE 103
7575 METROPOLITAN DR
SAN DIEGO CA 92108-4402
ATTN TEDANASIS
SAN DIEGO COUNTY AIRPORT
AUTHORITY
PO BOX 82776
SAN DIEGO CA 92138-2776
CARLSBAD CHAMBER OF
COMMERCE
5934 PRIESTLEY DR
CARLSBAD CA 92008
CITY OF CARLSBAD
PUBLIC WORKS/ENGINEERING
DEPT- PROJECT ENGINEER
CITY OF CARLSBAD
PROJECT PLANNER
STEVE MACIEJ - BIASD
STE 110
9201 SPECTRUM CENTER BLVD
SAN DIEGO CA 92123-1407
Etiquettes faciles a peter
Utilisez le aabarit AVERY® 5160®Sens de chargement
Consultez la feuille
d'instruction
www.avery.com
1-800-GO-AVERY
This space is for the County Clerk's Filing Stamp
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
Proof of Publication of
North County Times
Formerly known as the Blade-Citizen and Th«
Advocate and which newspapers have
adjudicated newspapers of general circulatior
Superior Court of the County of San Diego,
California, for the City of Oceanside and th
Escondido, Court Decree number 171349,
County of San Diego, that the notice of w
annexed is a printed copy (set in type not sm£
nonpariel), has been published in each reg
entire issue of said newspaper and not
supplement thereof on the following dates, to-
NOTICE OF PUBLIC HEARING
September 18th, 2010
NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that the City
Council of the City of Carlsbad will hold a public hearing at the Council Chambers, 1200
Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m. on Tuesday, September 28, 2010, to
consider approval of minor changes to the City's inclusionary housing requirements
found in Zoning Ordinance Chapter 21.85. Primarily, the minor changes would clarify the
applicability of inclusionary requirements to rental units.
Whereas, on July 21 , 2010 the City of Carlsbad Planning Commission voted 6-0-1 to
recommend approval of minor changes to the City's inclusionary housing requirements
found in Zoning Ordinance Chapter 21.85.
Those persons wishing to speak on this proposal are cordially invited to attend the
public hearing. Copies of the agenda bill will be available on and alter September 24,2010. If
you have any questions, please contact Scott Donnell in the Planning Department at (760)
602-4618 or scott.donnell@carlsbadca.gov.
If you challenge the Zone Code Amendment and/or Local Coastal Program Amendment
in court, you may be limited to raising only those issues you or someone else raised at the
public hearing described in this notice or in written correspondence delivered to the City
I certify (or declare) under penalty of perjury ofCartsbadAM
foregoing is true and correct.
CASE FILE: ZCA 10-03/LCPA 10-02
Dated at Escondido, California
This^0th, of SeptemberTSlO.
CASE NAME: INCLUSIONARY HOUSING
PUBLISH: September 18, 2010.
CITY OF CARLSBAD
CITY COUNCIL
NORTH COUNTY TIMES
Legal Advertising
The Coast News
Decreed A Legal Newspaper by the Superior Court
of San Diego County.
Mail all correspondence regarding public
notice advertising to
The Coast News, P.O. Box 232-550,
Encinitas, CA 92023 (760) 436-9737
Proof of Publication
STATE OF CALIFORNIA, ss
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 principal clerk of the printer of The Coast News, a
newspaper printed and published weekly and which news-
paper has been adjudged a newspaper of general circulation
for the cities of Del Mar, Solana Beach, Encinitas/Cardiff,
Carlsbad, Oceanside, San Marcos/Vista and the County
Judicial District by the Superior Court of the State of
California, County of San Diego (8/4/94, #677114, B2393,
P396); and that the notice, of which the annexed is a print-
ed copy, has been published in, each regular and entire issue
of said newspaper and not in any supplement thereof on the
following dates, to-wit:
September 17. 201Q
I certify under penalty of perjury that the
foregoing is true and correct. Executed at
Encinitas, County of San Diego, State of
California on the 20th day of September, 2010
Clerk of the Printer
Space above for County Clerk's Filing Stamp
CITY OF CARLSBAD
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN to you, because your
interest may be affected, that the City Council of the
City of Carlsbad will hold a public hearing at the
Council Chambers, 1200 Carlsbad Village Drive, Carlsbad,
California, at 6:00 p.m. on Tuesday, September 28, 2010, to con-
sider approval of minor changes to the City's inclusionary housing
requirements found in Zoning Ordinance Chapter 21.85. Primarily,
the minor changes would clarify the applicability of inclusionary
requirements to rental units.
Whereas, on July 21, 2010 the City of Carlsbad Planning
Commission voted 6-0-1 to recommend approval of minor changes
to the City's inclusionary housing requirements found in Zoning
Ordinance Chapter 21.85.
Those persons wishing to speak on this proposal are cordially invit-
ed to attend the public hearing. Copies of the agenda bill will be
available on and after September 24, 2010. If you have any ques-
tions, please contact Scott Donnell in the Planning Department at
(760) 602-4618 or scott.donnellScartsbadca.gov.
If you challenge the Zone Code Amendment and/or Local Coastal
Program Amendment in court, you may be limited to raising only
those issues you or someone else raised at the public hearing
described in this notice or in written correspondence delivered to
the City of Carlsbad. Attn: City Clerk's Office, 1200 Carlsbad
Village Drive, Carlsbad, CA 92008, at or prior to the public hearing.
CASE FILE: ZCA 10-03/LCPA 10-02
CASE NAME: INCLUSIONARY HOUSING
PUBLISH: September 17, 2010.
CITY OF CARLSBAD
CITY COUNCIL
CN 10458, Sept. 17, 2010