HomeMy WebLinkAbout1999-08-12; Housing Commission; Minutes@ T~E CI., of CARisbAd HousiNq d REdEVElopMENT L+ARTMUYT
HOUSING COMMISSION AGENDA
THURSDAY, AUGUST 12,1999
6:OO P.M.
1. Meetings are divided into categories shown below.
2. When you are called to speak, please come forward andstate your name and address.
3, All persons requiring assistance or auxiliary aids in order to effectively participate may contact the
Housing & Redevelopment Office (434-2811) at least 24 hours prior to the meeting to arrange for
reasonable accommodations.
CONSENT AGENDA: If you desire to talk about Consent Items a written "Request to Speak" form must be
filed with the Minutes Clerk prior to the time the Consent Agenda is called. The items listed under Consent
Agenda are considered routine and will be enacted by one motion as listed. There will be no separate
discussion on these items prior to the time the Commission votes, unless an item is removed.
PUBLIC COMMENT: If you desire to speak about an item not listed on the agenda, a "Time Reservation
Request" form should be filed with the Minutes Clerk. A total of 15 minutes is provided for the Public
Comment portion of the Agenda. Speakers are limited to three (3) minutes each.
In conformance with the Brown Act, no action can occur on items presented during Public Comment.
PUBLIC HEARINGS: It is not necessary to file a written request to speak on items listed on this agenda as
Public Hearings.
ALL OTHER CATEGORIES: For all other agenda items a "Request to Speuk" form must be filed with the
Minutes Clerk before the item is announced. There is a five (5) minute time limit for individual speakers.
CALL TO ORDER ABSENT:
PLEDGE OF ALLEGIANCE
ROLL CALL
APPROVAL OF MINUTES
NONE. ACTION:
VOTE:
. COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED IN THE AGENDA
PIEASE bMiT YOUR COMMENTS TO TkREE MINUTES. fA TOTA/OffiV€Spclk€RS MA,Yb€kHRd)
' HOUSING COMMISSION AGEND .-
AUGUST 12,1999
PAGE 2
CONTINUED BUSINESS:
1. LEASE-PURCHASE AFFORDABLE HOUSING PROCRAM HCRESONO: 99-025
RECOMMENDATION OF APPROVAL TO THE CITY VOTE:
COUNCILOF THE AGREEMENT BY AND BETWEEN THE ACTION:
CITY OF CARLSBAD AND THE SAN DIEGO AREA
HOUSING AND FINANCE AGENCY, A JOINT POWERS
AUTHORITY, FOR THE PURPOSE OF CREATING A
LEASE-TO-OWN AFFORDABLE HOUSING PROGRAM.
STAFF RECOMMENDATION: APPROVAL
STAFF: CRAIG RUlZ
MANAGEMENT ANALYST
NEW BUSINESS:
2. INCLUSIONARY HOUSING ORDINANCE REVISION - HC RES0 NO: W'! RECOMMENDATION TO THE PLANNING COMMISSION
AND CARLSBAD CITY COUNCIL TO REVISE THE CITY'S
VOTE:
ACTION:
INCLUSIONARY HOUSING ORDINANCE TO BEllER
SERVE THE NEEDS FOR AFFORDABLE HOUSING
DEVELOPMENT.
STAFF RECOMMENDATION: APPROVAL
STAFF: CRAIG RUlZ
MANAGEMENT ANALYST
ANNOUNCEMENTS
CHAIRPERSON REPORT
DIRECTOR REPORT
TIME:
ADJOURNMENT
TkE CiTy of CaRlsbnd HousiNc, md REdwdopMEM DEPARTMENT
STAff: CRAiCj Ruiz
MANAC~EMENT ANA~YST L
A REPORT TO T~E HousiNc, COMMiSSiON
DATE: AUGUST 12,1999
SUBJECT: LEASE-PURCHASE AFFORDABLE HOUSING PROGRAM -
RECOMMENDATION OF APPROVAL TO THE CITY COUNCIL OF THE
AGREEMENT BY AND BETWEEN THE CITY OF CARLSBAD AND THE SAN
DIEGO AREA HOUSING AND FINANCE AGENCY, A JOINT POWERS
AFFORDABLE HOUSING PROGRAM.
AUTHORITY, FOR THE PURPOSE OF CREATING A LEASE-TO-OWN
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RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 99-006, recommending
APPROVAL to the City Council of the agreement by and between the City of Carlsbad
and the San Diego Area Housing and Finance Agency, a Joint Powers Authority for the
purpose of creating a Lease-to-Own Housing Program.
PROJECT BACKGROUND
This item was heard by the Housing Commission at their July 8,1999 meeting. The item
was continued so that a representative from the Lease-to-Own Housing Program could
make a presentation and address specific questions from the Commission. A handbook
regarding the program has been provided under separate cover to the Commission by
the Program’s representative.
STAFF RECOMMENDATION
The City’s Housing Element states that the City will establish programs that will meet
the needs of lower and moderate income households. It is staff‘s opinion that the Lease-
to-Own Program will provide valuable home ownership opportunities. Therefore, staff
recommends that the Housing Commission recommend to the City Council that the
City of Carlsbad participate in the subject program with a modification to limit
participation to households at 120% or less of AMI.
EXHIBITS
1. Housing Commission Resolution No. 99-006
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HOUSING COMMISSION RESOLUTION NO. 99-006
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL TO
THE CITY COUNCIL OF THE AGREEMENT BY AND BETWEEN
THE CITY OF CARLSBAD AND THE SAN DIEGO AREA
HOUSING AND FINANCE AGENCY, A JOINT POWERS
OWN AFFORDABLE HOUSING PROGRAM.
AUTHORITY, FOR THE PURPOSE OF CREATING A LEASE-TO-
WHEREAS, the City of Carlsbad seeks to promote home ownership to improve the City's
housing stock and to further economic development for the welfare of its residents; and
WHEREAS, the Housing Element seeks to provide a variety of housing opportunities for
iouseholds of all income levels; and
WHEREAS, there is growing need for the City to find new cooperative ways to develop
programs that will increase home ownership opportunities and improve community life; and
WHEREAS, the San Diego Area Housing & Finance Agency is a cooperative approach
between cities that will increase home ownership and thereby improve the quality of community life
for those cities participating in the Authority; and
WHEREAS, the City of Carlsbad will further its goal of home ownership within the
community through membership in the San Diego Area Housing and Finance Agency; and
WHEREAS, the San Diego Area Housing and Finance Agency provides for home ownership
programs individually tailored for each member city;
WHEREAS, on July 8, 1999, the Housing Commission held a public meeting to consider the
,ease-to-Own Program to provide home ownership opportunities to households earning up to 140% of
he Area Median Income in the City of Carlsbad; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
iersons desiring to be heard, said Commission considered all factors relating to the Lease-to-Own
'rogram, and continued the item to a future meeting
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WHEREAS, on August 12, 1999, the Housing Commission held a public meeting to consider
the Lease-to-Own Program to provide home ownership opportunities to households earning up to 140%
of the Area Median Income in the City of Carlsbad; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
persons desiring to be heard, said Commission considered all factors relating to the Lease-to-Own
Program
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of
Carlsbad, California, as follows:
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The above recitations are true and correct.
The Program is consistent with the goals and objectives of the City of Carlsbad's Housing
Element, the Consolidated Plan, the Inclusionary Housing Ordinance, and the Carlsbad
General Plan.
As recommended by the Commission, the project will provide a minimum of homebuying
opportunities to household earning up to 120% of the Area Median Income. The Program,
therefore, has the ability to effectively serve the City's housing needs and priorities as
expressed in the Housing Element.
That based on the information provided within the Housing Commission Staff Report and
testimony presented during the public meeting of the Housing Commission on July 8, 1999,
the Housing Commission ADOPTS Resolution No. 99-006, recommending APPROVAL to
the City Council of the agreement by and between the City of Carlsbad and the San Diego
Area Housing and Finance Agency, a Joint Powers Authority for the purpose of creating a
Lease-to-Own Affordable Housing Program, with a modification to limit participation in the
Program to those households with a gross annual income equal to or less than 120% of the
Area Median Income adjusted for household size.
HC RESO. NO. 99-006
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5. That the Housing Commission recommends that the City Manager or his designee be
authorized to execute all documents related to the Lease-to-Own Housing Program,
including but not limited to the Joint Exercise of Powers Agreement creating the San
Diego Area Housing and Finance Agency, subject to review and approval by the City
Attorney .
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission
,f the City of Carlsbad, California, held on the 12” day of August, 1999, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROY LATAS, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
IEBORAH K. FOUNTAIN
IOUSING AND REDEVELOPMENT DIRECTOR
IC RESO. NO. 99-006
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I A REPORT TO T~E HousiNq COMMiSSiON
STAff: CRAIG Ruiz
MANAGEMENT ANA~YST
ITEM NO. 2
DATE: AUGUST 12,1999
SUBJECT: INCLUSIONARY HOUSING ORDINANCE REVISION -
RECOMMENDATION TO THE CARLSBAD PLANNING COMMISSION AND
CITY COUNCIL TO REVISE THE CITY’S INCLUSIONARY HOUSING
ORDINANCE
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 99-007, recommending to the
Planning Commission and City Council of the City of Carlsbad that Title 21 of the
Carlsbad Municipal Code be amended by the repeal and reenactment of Chapter 21.85
regarding affordable housing units for lower-income households and in-lieu fees.
11. PROJECT BACKGROUND
On May 21, 1999, the adopted Inclusionary Housing Ordinance became effective to
implement the City of Carlsbad’s Inclusionary Housing Program. The City’s
Inclusionary Housing Program requires that 15 percent of all residential units
developed within Carlsbad be affordable to lower income households, specifically to
those household with gross household incomes equal to or less than 80% of the San
Diego County Area Median Income (AMI).
In implementing the Inclusionary Housing Ordinance over the past six years, staff has
discovered that there are some aspects of the Ordinance which require revision for
better implementation of the Inclusionary Housing Program. In addition to
implementing difficulties due to some language within the original Ordinance, there
are other reasons for considering revisions to the Ordinance. First, a Housing Element
Self-Certification Pilot Program was recently established for San Diego County. The
Carlsbad City Council has authorized staff to proceed with efforts to qualify for self-
certification during the next Housing Element cycle (1999-2004). Revisions to the
Inclusionary Housing Ordinance are necessary to assist in the City’s effort to qualify
for self-certification. Second, some policies for providing affordable housing, such as
Second Dwelling Units, have been the subject of much debate and require resolution.
Second Dwelling Units and other similar issues can be resolved through revisions to the
Inclusionary Housing Ordinance.
INCLUSIONARY HOUSING ORDINANCE REVISION
AUGUST 12,1999
PAGE 2
111. DISCUSSION
On June 10, 1999, the Housing Commission received an informational report which
summarized the key proposed revisions to the Inclusionary Housing Ordinance. The
information below discusses in detail the primary proposed revisions to the Ordinance.
The remaining changes are primarily administrative in nature or delete repetitive
sections of the existing ordinance.
Definition Additions:
Extremely Lo7u Inconre - Under the existing Housing Element Regional Share Allocation
system, the City is required to provide affordable housing in four income categories.
These categories include very low, low, moderate, and above moderate income. Under
the new Housing Element Self-certification Program, requirements are established for
the income categories of extremely low, very low, low and moderate income
households. Because the current Inclusionary Housing Ordinance does not contain a
definition for extremely lo70 income, a definition has been proposed for addition.
Extremely Lo7u Income is defined as a household whose annual income is 30% of the
Area Median Income (AMI) or below.
Low Income Rent - A monthly rental rate affordable to low income households is
currently defined as 1/12fi of 30% of 80% of AMI. When the Inclusionary Housing
Ordinance was originally adopted, the City decided to set the low income rental rate at
the subject level (30% of 80%) because it was the maximum acceptable to obtain credit
for producing a low income affordable housing unit. With over six years of experience
in implementing the Inclusionary Housing Ordinance, the City has discovered that the
acceptable affordable rents (at 80%) are often equal to, and sometimes higher than,
market rents within the community. In order to ensure that the Inclusionary Housing
Ordinance is actually providing a unit which is more affordable to low income
households, staff is proposing to define Low Income Rent as 1/12th of 30% of 70% of
AMI. For a two bedroom unit, this would reduce the current maximum affordable rent
from $1,050 to $919. It should be noted that the new affordability level applies to
rentals only. The affordability level for a for-sale product shall remain at the original
80%.
Ofsets and Incentives - The Inclusionary Housing Ordinance in effect at this time uses
the terms "offsets" and "incentives" interchangeably. In the new Ordinance, staff
proposes to more clearly define the two terms. Ofsets are to be defined as direct
financial incentives, density increases, standards modifications, and/ or other financial,
land use or regulatory concessions. Incentives are to be defined as an actual reduction
in the inclusionary housing requirement in return for the provision of certain types of
affordable housing or related amenities as determined appropriate, and approved, by
the City Council. For example, if a developer agrees to produce housing units which
all have 3 bedrooms or more and/or are affordable to households at 50% of the AMI,
INCLUSIONARY HOUSING ORDINANCE REVISION
AUGUST 12,1999
PAGE 3
they may be eligible to reduce their inclusionary housing requirement from 15% to
10%. This would be a negotiated agreement based on the needs and/or desires of the
City of Carlsbad as related to affordable housing. The reason for this consideration is
related to the new Housing Self-certification Program and the fact that it allows the
City to receive additional credit for certain types of housing or level of affordability.
The City would pass that credit onto the developer as deemed appropriate by the City
Council.
Applicability of Provisions:
Cunsfmctzun Requirement - All projects which propose seven or more units are required
to ensure that 15 percent of the units constructed (rental or for-sale) are affordable to
low income households. This means that some projects will have a very small
requirement (e.g. 1 to 10 units). To date, these smaller requirements have been met
through the provision of second dwelling units (under the existing ordinance
requirements), or through the purchase of housing credits from the Villa Loma
Affordable Apartment project (as permitted). Currently, only those projects located in
the southeast or southwest quadrant are allowed to purchase housing credits from the
Villa Loma Project. Typically, projects with a requirement of 10 affordable units or less
have had their requests to purchase housing credits in Villa Loma approved by the City
Council with little discussion.
Small affordable housing requirements are difficult to finance. Therefore, to date, the
best method for meeting a small affordable housing requirement in the southern
portion of the City is to either provide a second dwelling unit or purchase housing
credits. There are no qualified combined projects with excess affordable units in the
northern half of the City. Therefore, projects in the northeast or northwest quadrants of
the City do not have an option to purchase housing credits. They must build units.
Typically, these developers or property owners have chosen to construct second
dwelling units.
Over the past year or more, both the Planning and Housing Commissions have
expressed concern about the use of second dwelling units to meet the requirements
under the Inclusionary Housing Ordinance. The concern has been that the units are not
required to remain available as a rental unit on the open market and that there are no
income qualifications for the person’s living within the unit. Because of the concerns
expressed by the two Commissions and the reality of the situation that there are few
other options for projects with small affordable housing requirements, staff is
proposing that the requirement to actually produce units be increased to a higher level.
The Housing Policy Staff Team is recommending that the Inclusionary Housing
Ordinance be modified to require the consfnrctiun of affordable housing units only
when the size of the total housing project is 50 units or more. If the housing project is
50 units or less, which means that the affordable housing requirement will be 7 units or
less, the developer/property owner will have the option of paying the Housing In-Lieu
INCLUSIONARY HOUSING ORDINANCE REVISION
AUGUST 12,1999
PAGE 4
Fee. Staff anticipates that this will result in fewer Second Dwelling Units. However, if
second dwelling units continue to be proposed to meet an Inclusionary Housing
Requirement, then they will need to meet the new requirements set forth below.
Second D7oeIling Units - As mentioned above, under existing policy, a Second Dwelling
Unit is not required to be rented and the tenants do not need to meet maximum income
requirements. Simply stated, if the unit is rented, existing policy only requires the unit to
be rented at a rate affordable to lower income households (1/12th of 30% of 80% of AMI).
The reason for this policy is primarily related to enforcement. It would be nearly
impossible or extremely difficult to effectively monitor the operations of individual
homeowners as related to the rental of second dwelling units. Therefore, the City took the
policy position that second dwelling units are affordable simply by the fact that they are
small (less than 640 square feet), and they meet an affordable housing need for elderly
parents, domestic help, college students, etc.
Due to recent concerns raised by the Housing and Planning Commissions and the fact
that the City Council has already made the decision to participate in the program to
quahfy for Housing Element Self-certification, staff is proposing changes to the
Inclusionary Housing Ordinance which would revise the policy position on the use of
second dwelling units to meet the City's affordable housing requirements. Under the
Housing Element Self-certification requirements, second dwelling units count only if the
units are rented at an affordable housing cost to a low income household. This means that
the tenants must be income qualified.
For discussion purposes, there are actually three policy options which can be considered
by the City as related to second dwelling units. They are summarized below:
1 . The City could decide to allow second dwelling units to be used to satisfy the
requirements of the Inclusionary Housing Ordinance under the existing policy, where
income qualification is not a requirement. Lf the unit is rented, it must be rented at an
affordable rate (at 30% of 70% of AMI, under the proposed revision to the rental rate).
Under this option, the units would not count for self-certification purposes. It would
simply be recognized that the units meet an affordable housing need and the existing
policy would continue.
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2. The City could decide to allow second dwelling units to be used to satisfy the
requirements of the Inclusionary Housing Ordinance only if the tenants meet
' maximum income qualifications for a low income household and the unit is rented at
an affordable rate (30% of 70% of AMI, under the proposed revision to the rental
rate). Under this option, the units would count for self-certification purposes.
However, it must also be noted that this option will substantially increase the impact
on the City for monitoring and enforcement purposes.
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INCLUSIONARY HOUSING ORDINANCE REVISION
AUGUST 12,1999
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3. City could decide to not allow second dwelling units to be used, under any
circumstances, to satisfy the requirements of the Inclusionary Housing Ordinance.
Under this option, a developer could exercise his/her right to build second
dwelling units. However, the units could not be used to meet the affordable
housing requirements of the Inclusionary Housing Ordinance.
Because there may remain situations where the only practical option for meeting the
Inclusionary Housing requirements is through the provision of second dwelling units, the
Housing Policy Staff Team has recommended that Option #2 be approved as a revision to
the Inclusionary Housing Ordinance. With the revision, if second dwelling units are used
to satisfy the requirements of the Inclusionary Housing Ordinance, they must be rented
at an affordable rate to a low income qualified tenant.
Affordable Housing - Standards
Afurdnble Tentire - Under Housing Element Self-Certification, greater credit is earned
when projects have a regulatory requirement which maximizes the term of
affordability. The greatest credit is earned for projects which are restricted for 55-years
or longer. Projects developed under the current ordinance state that projects will be
affordable for a minimum of 30 years, or for the useful life of the project. In practice, all
projects have been deemed to have a useful life of 55 years and have be so restricted.
The proposed revisions to the Ordinance will change the standard to reflect the current
practice of restricting units for a 55-year period.
Maximum Afurdable Rent within n Mixed Income Project- As stated above, at the current
rental standard for low income households (1/12th of 30% of go%), the rent for a low
income affordable unit may be equal to or greater than the market rate rent for a
comparable unit. Staff has proposed that the rental standard for a low income
affordable unit be reduced to 1/12th of 30% of 70% of the AMI. Staff is also proposing
that within a mixed income rental project, the maxhum affordable rent be further
restricted to require that the rental rate be the lessor of 1/12* of 30% of 70% or 90% of
the market rate rent for a comparable unit within the project.
Incentive Credit
As mentioned above, as an incentive to assist the City in providing more desirable
types of housing, developers may receive additional credit (more than one unit) for
each unit of more desirable housing, thereby reducing the total inclusionary housing
requirement. For example, if a developer proposes to provide units affordable to
extremely low income households, they would be eligible to receive additional credit
for those units.
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AUGUST 12,1999
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Alternative to Construction
Under the current housing element system, the City only receives credit for new
construction of affordable units. Under the new Housing Element Self-certification
Program, a variety of housing types now receive credit. Examples include acquisition
and rehabilitation of existing units, conversion of existing market rate units to
affordable units, construction of special needs housing or programs (shelters,
transitional housing, etc.), or contributions to a special needs housing project or
program. Staff is proposing that, at the discretion of the City Council, such alternatives
to new construction may be approved where the proposed alternative supports specific
Housing Element policies and goals, and assists the City in meeting its housing
requirements. Alternatives would only be acceptable if new construction is infeasible
or presents an unreasonable hardship.
Additional Considerations
There is one item that was not considered by staff during its review and revision of the
Ordinance. In the City's density bonus ordinance, the City has the first right of refusal
to purchase housing projects that were developed under the ordinance once their
affordability tenure expires. It is staff's recommendation that similar language be
included in the Inclusionary Housing Ordinance for affordable rental projects. In
general, 90 days prior to the expiration of the affordability tenure, the property owner
would provide the Housing and Redevelopment Director with an offer to purchase the
property. The City, or its designee, would then have 90 days to act upon the offer.
IV. RECOMMENDATION
The Inclusionary Housing Ordinance has been in effect for six years. Overall, the
Ordinance has been extremely effective in providing affordable housing opportunities
for low income households. In implementing the Ordinance, some aspects need to be
revised for easier implementation. Also, the City Council has expressed its desire to
work to achieve the goals and requirements of the new Housing Element Self-
Certification Program. Staff believes that the proposed changes will make the
Ordinance easier to implement by the City, easier to understand by the public, and will
be better able to meet the criteria under the new Self-certification Program. Therefore,
staff is recommending that the Housing Commission take action to recommend
approval of the amended Inclusionary Housing Ordinance to the Planning
Commission and City Council.
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AUGUST 12,1999
PAGE 7
V.
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EXHIBITS
Housing Commission Resolution No. 99-007, recommending repeal and re-enactment of
Chapter 21.85 of the Carlsbad Municipal Code to amend the Inclusionary Housing
Ordinance.
Ordinance for Adoption by City Council for the Zone Code Amendment to Chapter 21.85
of the Carlsbad Municipal Code.
Legislative Draft of Proposed Zone Code Amendment (Chapter 21.85) - Inclusionary
Housing Ordinance.
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HOUSING CO1LIMlSSION RESOLUTION KO. 99-007
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, RECOMMENDING TO THE
PLANNING COMMISSION AND CITY COUNCIL OF THE CITY
OF CARLSBAD APPROVAL OF AN AMENDMENT TO TITLE 21
OF THE CARLSBAD MUNlCIPAL CODE BY THE REPEAL AND
REENACTMENT OF CHAPTER 21.85 REGARDING AFFORDABLE
LIEU FEES.
APPLICANT: CITY OF CARLSBAD
HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-
CASE NO: ZCA 9 1-06
WHEREAS, Government Code Section 65584(a) requires localities to address the Regional Share
housing needs for persons of all income levels in their General Plan Housing Elements; and
WHEREAS, the City's Regional Share needs are 2,509 lower-income units out of a projected
6,273 total dwelling units needed over a five year period; and
WHEREAS, based upon its Housing Element, the City of Carlsbad finds that Carlsbad is
experiencing a lack of housing affordable to lower-income households; and
WHEREAS, the City of Carlsbad's lower-income Fair Share Housing objective (minimum good
faith effort of affordable units) is 1125 low-income units; and
WHEREAS, the City's Housing Element includes objectives for the provision of 1400 lower-
income units (275 units in excess of the Fair Share requirement); and
WHEREAS, due to economic and market conditions, the private market has not produced in the
past, enough housing units affordable to lower income households to meet a significant-portion of the
City's lower-income Fair Share need; and
WHEREAS, new residential development which does not include nor contribute toward housing
for lower income households will only serve to aggravate the current affordable housing shortage and
create additional need for affordable lower income housing by reducing the supply of residential land
available for affordable housing, development and increasing the population ,and the demand for
community services businesses staffed by lower wage employees; and
WHEREAS, a continuing shortage of affordable housing is detrimental to the public health, safety
and welfare as it contributes to overcrowded and substandard conditions for lower-income families, and
the inability of industry to find and retain a quality labor supply; and
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WHEREAS, an inclusionary requirement of fifteen (1 5%) percent lower-income housing
represents 1050 lower-income units which is less than one-half of the designated Regional Need over the
next five years; and
WHEREAS, the City's Housing Element also identifies a variety of other City initiated programs
to respond to the Regional Need; and
WHEREAS, the mandatory Inclusionary Housing Program was identified within the City's
Housing Element as a viable program available to the City to achieve a significant portion of the City's
Fair Share objective for lower-income units; and
WHEREAS, an inclusionary housing requirement of fifteen (1 5%) percent lower-income use will
help ensure that a significant portion of the City's Fair Share lower-income objectives can be achieved;
and
WHEREAS, based upon projected residential development between 1991 and 1996, the
imposition of a requirement of fifteen (15%) percent low-income inclusionary housing on future
residential development is necessary to achieve the City's Fair Share and Regional Share objectives; and
WHEREAS, the City's Housing Element and this chapter identify programs to provide
technical, financial, and standards flexibility, offsets and incentives, to facilitate inclusionary housing
development;
participating in the Authority; and
WHEREAS, on August 12, 1999, the Housing Commission held a public meeting to consider
a recommendation to the Planning Commission and City Council to amend Title 21 of the Carlsbad
Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units
for lower-income households and in-lieu fees; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
persons desiring to be heard, said Commission considered all factors relating to the proposed
amendments.
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HC RESO. NO. 99-007
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NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City
of Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. The amendment to the Ordinance is consistent with the goals and objectives of the City of
Carlsbad's Housing Element, the Consolidated Plan, the Inclusionary Housing Ordinance,
and the Carlsbad General Plan,
3. That based on the information provided within the Housing Commission Staff Report and
testimony presented during the public meeting of the Housing Commission on August 12,
1999, the Housing Commission ADOPTS Resolution No. 99-007, recommending
APPROVAL to the Planning Commission and City Council to amend Title 21 of the
Carlsbad Municipal Code by the repeal and reenactment of Chapter 2 1.85 regarding
affordable housing units for lower-income households and in-lieu fees.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission
of the City of Carlsbad, California, held on the 12" day of August, 1999, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROY LATAS, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
DEBORAH K. FOUNTAIN
HOUSING AND REDEVELOPMENT DIRECTOR
YC RESO. NO. 99-007
PAGE 3
ORDINANCE NO. NS-232
EXHIBIT NO. 2
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE
CARLSBAD MUNICIPAL CODE BY THE REPEAL AND
REENACTMENT OF CHAPTER 21.85 REGARDING AFFORDABLE
LIEU FEES.
APPLICANT: CITY OF CARLSBAD
CASE NO: CA 9 1-6
HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-
WHEREAS, Government Code Section 65584(a) requires localities to address the Regional Share
housing needs for persons of all income levels in their General Plan Housing Elements; and
WHEREAS, the City's Regional Share needs are 2,509 lower-income units out of a projected
6,273 total dwelling units needed over a five year period; and
WHEREAS, based upon its Housing Element, the City of Carlsbad finds that Carlsbad is
experiencing a lack of housing affordable to lower-income households; and
WHEREAS, the City of Carlsbad's lower-income Fair Share Housing objective (minimum good
faith effort of affordable units) is 1125 low-income units; and
WHEREAS, the City's Housing Element includes objectives for the provision of 1400 lower-
income units (275 units in excess of the Fair Share requirement); and
WHEREAS, due to economic and market conditions, the private market has not produced in the
past, enough housing units affordable to lower income households to meet a significantgortion of the
City's lower-income Fair Share need; and
WHEREAS, new residential development which does not include nor contribute toward housing
for lower income households will only serve to aggravate the current affordable housing shortage and
create additional need for affordable lower income housing by reducing the supply of residential land
available for affordable housing, development and increasing the population,-and the demand for
community services businesses staffed by lower wage employees; and
1
WHEREAS, a continuing shortage of affordable housing is detrimental to the public health, safety
and welfare as it contributes to overcrowded and substandard conditions for lower-income families, and
the inability of industry to find and retain a quality labor supply; and
WHEREAS, an inclusionary requirement of fifteen (1 5%) percent lower-income housing
represents 1050 lower-income units which is less than one-half of the designated Regional Need over the
next five years; and
WHEREAS, the City's Housing Element also identifies a variety of other City initiated programs
to respond to the Regional Need; and
WHEREAS, the mandatory Inclusionary Housing Program was identified within the City's
Housing Element as a viable program available to the City to achieve a significant portion of the City's
Fair Share objective for lower-income units; and
WHEREAS, an inclusionary housing requirement of fifteen (1 5%) percent lower-income use will
help ensure that a significant portion of the City's .Fair Share lower-income objectives can be achieved;
and
WHEREAS, based upon projected residential development between 1991 and 1996, the
imposition of a requirement of fifteen (15%) percent low-income inclusionary housing on future
residential development is necessary to achieve the City's Fair Share and Regional Share objectives; and
WHEREAS, the City's Housing Element and this chapter identify programs to provide technical,
financial, and standards flexibility, offsets and incentives, to facilitate inclusionary housing development;
The City Council of the City of Carlsbad, California does ordain as follows:
SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended by the repeal and
reenactment of Chapter 21.85 to read as follows:
...
...
2
"Chapter 21.85
INCLUSIONARY HOUSING
Sections:
2 1.85.010
21.85.020
2 1.85.030
21.85.035
21.85.040
21.85.050
21.85.060
2 1.85.070
2 1 A5.080
2 1.85.090
2 1.85.100
21.85.110
21.85.120
21 J5.130
2 1.85.140
21.85.145
2 1.85.150
2 1.85.1 60
21 35.170
21.85.180
21.85.190
Purpose and Intent.
Definitions.
Inclusionary Housing Requirement.
New Master Plans and Specific Plans.
Affordable Housing Standards.
Calculating the Required Number of Inclusionary Units.
Incentive Credit Adjustment to the Inclusionary Requirement.
Alternatives to Construction of Inclusionary Units.
Combined Inclusionary Housing Projects.
Creation of Inclusionary Units Not Required .
Offsets to the Cost of Affordable Housing Development.
In-lieu Fees.
Collection of Fees.
Preliminary Project Application and Review Process.
Affordable Housing Agreement as a Condition of Development.
Agreement Processing Fee.
Agreementlhendments.
Pre-existing Approvals.
Enforcement.
Savings Clause.
Separability of Provisions.
21.85.010. Puruose and Intent.
The purpose and intent of this chapter is as follows:
A. It is an objective of the City, as established by the Housing Element of the City's
General Plan, to ensure that all residential development, including all Master Planned and Specific
Planned communities and all residential subdivisions provide a range of housing opportunities for all
identifiable economic segments of the population, including households of lower and moderate income.
It is also the policy of the City to:
1. Require that a minimum of fifteen (15%) percent of all approved
residential development be restricted to and affordable to lower-income households; subject to adjustment
based on the granting of certain incentives;
Require that for those developments which provide ten or more units
affordable to lower-income households, at 'least ten (10%) percent of the lower-income units shall have
three or more bedrooms;
3. Under certain conditions, allow alternatives to onsite construction as a
means of providing affordable units; and
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. It is the purpose of this chapter to ensure the implementation of the City objective
and policy stated in subsection A.
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.
2.
B.
C.
21 A5.020. Definitions.
by this section:
Whenever the following terms are used in this Chapter, they shall have the meaning established
3
A. "Affordable housing" means housing for which the allowable housing expenses
paid by a qualifying household shall not exceed a specified fraction of the gross monthly income,
adjusted for household size, for the following classes of housing:
Extremely low-income, rental or for-sale units: thirty (30%) percent of
the gross monthly income, adjusted for household size, at thirty (30%) percent of the County median
income;
Very low-income, rental and for-sale units: thirty (30%) percent of the
gross monthly income, adjusted for household size, at fifty (50%) percent of the County median income;
Low-income, for-sale units: thirty (30%) percent of the gross monthly
income, adjusted for household size, at eighty (80%) percent of the County median income; and
Low-income, rental units: thirty (30%) percent of the gross monthly
income, adjusted for household size, at seventy (70%) percent of the County median income.
1.
2.
3.
4.
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.
"Allowable housing expense" means the total monthly or annual recurring
expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses
include loan principal and interest at the time of initial purchase by the homebuyer, allowances for
property and mortgage insurance, property taxes, homeowners association dues and a reasonable
allowance for utilities as defined by the Federal Regulations for the Tenant Based Rental Assistance
Program. For a rental unit, allowable housing expenses include rent and a utility allowance as established
and adopted by the City of Carlsbad Housing Authority, as well as all monthly payments made by the
tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities
associated therewith, including any separately charged fees, utility charges, or service charges assessed by
the lessor and payable by the tenant.
D. "Base residential units" means a number of units associated with each Master
Plan or Specific Plan from which are calculated the lower-income inclusionary units to be provided in
conjunction with that Master Plan or Specific Plan or residential subdivision.
"Affordable housing policy team" shall consist of the Community Development
Director, Planning Director, Housing and Redevelopment Director, Administrative Services
DirectorRinance Director, and a representative of the City Attorney's office.
F. "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.
Tonversion" means the change of status of a dwelling unit from a purchased
unit to a rental unit or vice versa.
"Density bonus (new residential construction)" means a minimum density
increase of at least hventy-five (25%) percent over either the Growth Management Control Point of the
applicable General Plan designation, as defined in Section 21.90.045 of this Title, or the otherwise
maximum allowable residential density as specified by the applicable Master Plan or Specific Plan, at the
time of application.
"Extremely low-income household'' means those households whose gross income
is equal to or less than thirty-five (35%) percent of the median income for San Diego County as
determined by the U.S. Department of Housing and Urban Development.
"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.
"Growth Management Control Point" shall have the same meaning as provided in
Chapter 21.90, Section 2 1.90.045 of this Title.
C.
E.
G.
H.
I.
J.
K.
4
L. ''Incentives'' means a reduction in the inclusionary housing requirement granted
in return for the provision of certain desired types of affordable housing or related amenities as determined
by the City Council.
M. "Inclusionary housing project" means a new residential development or
conversion of existing residential buildings which has at least fifteen (15%) percent of the total units
reserved and made affordable to lower-income households as required by this Chapter.
"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.
ltIncome'l 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.
"Low-income household" means those households whose gross income is more
than fifty (50%) percent but does not exceed eighty (80%) percent of the median income for San Diego
County as determined annually by the US. Department of Housing and Urban Development.
"Lower-income household" means low-income, very low-income and extremely
low-income households, whose gross income does not exceed eighty (80%) percent of the median
income for San Diego County as determined annually by the US. Department of Housing and Urban
Development.
"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.
"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.
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, mobilehome developments and conversions of
apartments to condominiums, as well as dwelling units for which the cost of shelter is included in a
recurring payment for expenses, whether or not an initial lump sum fee is also required.
"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 US. Department of
Housing and Urban Development, and adjusted for family size.
"Very low-income household" means a household earning a gross income equal
to fifty (50%) percent or less of the median income for San Diego County as determined annually by the
U.S. Department of Housing and Urban Development.
N.
0.
P.
Q.
R.
S.
U.
V.
21.85.030. Inclusionarv Housinp 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:
For any residential development or development revision of fifty (50) units or
more, not less than fifteen (15%) percent of the total units approved shall be constructed and restricted
both as to occupancy and affordability to lower-income households.
For those developments which are required to provide ten or more units
affordable to lower income households, at least ten (1 0%) percent of the lower income units shall have
three or more bedrooms.
B.
C.
D. Notwithstanding the foregoing, 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;
5
.
2. Conversion of a mobilehome park pursuant to Section 2 1.37.120 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 developed in accordance with Section 2 1.10.01 5
of this Code;
6. Any project or portion of a project which is a commercial living unit as
defined in Section 2 1.04.093 of this code; and
7. Those residential units which have obtained affordable housing
approvals prior to the effective date of this ordinance, as set forth in Section 2 1.85.160 of this chapter.
21.85.035 New Master Plans or SDecific Plans
New Master Plans and Specific Plans shall submit an inclusionary housing plan as follows:
All Master Plans and Specific Plans approved on or after the effective date of
this Ordinance are required by this Chapter to provide an inclusionary housing plan within the Master Plan
or Specific Plan document. This inclusionary housing plan will include appropriate text, maps, tables, or
figures to establish the basic framework for implementing the requirements of this chapter. It shall
establish, as a minimum, but not be limited to, the following:
The total number of base residential units of the Master Plan or Specific
Plan;
The number of required inclusionary units for lower-income households
over the entire Master Plan or Specific Plan;
The designated sites for the location of the inclusionary units, including
but not limited to any sites for locating offsite inclusionary housing projects or combined inclusionary
housing projects;
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.
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.
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.
A.
1.
2.
3.
4.
B.
C.
21.85.040. Affordable Housinp 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
2 1.86 (Residential Density Bonus) of this Code.
B. Whenever reasonably possible, inclusionary units should be built on the
residential development project site.
6
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.
Inclusionary rental units shall remain restricted and affordable to the designated
income group for 55 years. In addition to the income of a targeted group, limitations on assets may' also be
used as a factor in determining eligibility for rental or for sale units. Notwithstanding anything to the
contrary in this Chapter, no inclusionary unit shall be rented for an amount which exceeds ninety (90%)
percent of the actual rent charged for a comparable market unit in the same development, if any.
After the initial sale of the inclusionary for-sale units at a price affordable to the
target income level group, inclusionary for-sale units shall remain affordable to subsequent income
eligible buyers pursuant to a resale restriction with a term of thirty (30) years or for-sale units may be sold
at a market price to other than targeted households provided that the sale shall result in the recapture by
the City or its designee of a financial interest in the units equal to the amount of subsidy necessary to
make the unit affordable to the designated income group and a proportionate share of any appreciation.
Funds recaptured by the City shall be used in assisting other eligible households with home purchases at
affordable prices. To the extent possible, projects using for-sale units to satisfy inclusionary requirements
shall be designed to be compatible with conventional mortgage financing programs including secondary
market requirements.
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.
D.
E.
F.
21.85.050. Calculatinp the Reauired Number of Inclusionarv Units.
Subject to adjustments for incentives, the required number of lower-income inclusionary units
shall be fifteen (1 5%) percent of all residential units, approved by the final decision-making authority.
Fractional unit requirements of .5 or greater will be rounded up to a whole unit, or a fractional proportion
of the in-lieu fee may be paid.
21.85.060. Incentive Credit Adjustment to the Inclusionarv Requirement.
Certain types of affordable housing are relatively more desirable in satisfying the City's state-
mandated affordable housing requirement as well as the City's Housing Element goals, objectives and
policies, and these may change over time.
As an incentive to assist the City in providing this housing, Developers may receive additional
(more than one unit) credit for each of such units provided, thereby reducing the total inclusionary housing
requirement is not less than fifteen (15%) percent of all residential units approved. A Schedule of
Inclusionary Housing Incentive Credit specifying how credit may be earned shall be adopted by the City
Council and made available to Developers subject to this chapter.
21.85.070. Alternatives to Construction of Inclusionarv 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
7
and rehabilitation of affordable units, conversion of existing market units to affordable units, construction
of second dwelling units and construction of special needs housing projects or programs (shelters,
transitional housing, etc.).
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 2 1.85.1 10.
B.
21 .85.080. Combined Inclusionary Housinv Proiects.
An affordable housing requirement may be satisfied with offsite construction as follows:
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.
It is at the sole discretion of the City Council to authorize the residential site(s)
which form a combined inclusionary housing project. Such decision shall be based on findings that the
Combined Project represents a more effective and feasible means of implementing this chapter and the
goals of the City's Housing Element. Factors to be weighed in this determination include: the feasibility
of the onsite option considering project size, site constraints, competition from other projects, difficulty in
integrating due to significant price and product type disparity, and lack of capacity of the onsite
development entity to deliver affordable housing. Also to be considered are whether the offsite option
offers greater feasibility and cost effectiveness, particularly regarding potential local public assistance and
the City's affordable housing financial assistance policy, location advantages such as proximity to jobs,
schools, transportation, and services, diminished impact on other existing developments, capacity of the
development entity to deliver the project, and satisfaction of multiple Developer obligations that would be
difficult to satisfy with multiple projects.
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.
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.
A.
B.
C.
D.
21.85.090. Creation of Inclusionarv Units Not Reauired.
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.
21.85.100. Offsets to the Cost of Affordable Housinp - 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 andor affordability objectives as set forth within the Housing
Element; the capability of the development team; the reasonableness of development costs and
justification of subsidy needs; and the extent to which other resources are used to leverage the requested
offsets. Nothing in this chapter establishes, directly or through implication, a right to receive any offsets
from the City or any other party or agency to enable the Developer to meet the obligations established by
this chapter. Projects are entitled to density bonuses andor other incentives in accordance with provisions
of state law, pursuant to the provisions of Chapter 21.86. of this code. Any offsets approved by the City
Council and the housing affordability to be achieved by use of those offsets shall be set out within the
8
Affordable Housing Agreement pursuant to Section 21.85.140 or, at the City's discretion in a subsequent
document. Furthermore, Developers are encouraged to utilize local, state or federal assistance, when
available, to meet the affordability standards set forth in Sections 2 1.85.030 and 21.85.040.
21.85.110. In-lieu Fees.
Payment of a fee in-lieu of construction of affordable units may be appropriate in the following
circumstances:
For any residential development or development revision of six units or less, the
inclusionary requirements may be satisfied through the payment to the City of an in-lieu fee.
The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen
(15%) percent of the subsidy needed to make affordable to a lower-income household one newly-
constructed, typical attached-housing unit. This subsidy shall be based upon the City Council's
determination of the average subsidy that would be required to make affordable typical, new two-
bedroodone bath and three-bedroodtwo-bath for-sale units and rental units, each with an assumed
affordability tenure of at least 55 years.
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 lotshnits of a development.
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.
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.
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.
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.
A.
B.
C.
D.
E.
F.
G.
21.85.120. Collection of fees.
All fees collected under this chapter shall be deposited into a Housing Trust Fund and shall be
expended only for the affordable housing needs of lower-income households, and reasonable costs of
administration consistent with the purpose of this chapter.
21.85.130. Preliminarv Project Apdication and Review Process.
The preliminary project applicatiodreview 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 should include the following
information:
A brief description of the proposal including the number of inclusionary
units proposed;
The Zoning, General Plan designations and assessors parcel number(s)
of the project site;
1.
2.
9
3. A site plan, drawn to scale, which includes: building footprints, driveway
and parking layout, building elevations, existing contours and proposed grading; and
4. A letter identifying what specific offsets and/or adjustments are being
requested of the City. Justification for each request should also be included.
Within thirty days of receipt of the preliminary application by the Planning
Director for projects not requesting offsets or incentive adjustments, or ninety days for projects requesting
offsets or incentive adjustments the department shall provide to an applicant, a letter which identifies
project issues of concern, the offsets and incentive adjustments that the Community Development Director
can support when making a recommendation to the final decision-making authority, and the procedures
for compliance with this chapter. The applicant shall also be provided with a copy of this chapter and
related policies, the pertinent sections of the California Codes to which reference is made in this chapter
and all required application forms.
B.
21.85.140. Affordable Housing Agreement as a Condition of Develonment.
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 and submitted to the Developer for
execution. Agreements which conform to the requirements of this section and which do not involve
requests for offsets and/or incentives, other than those permitted by right, if any, shall be reviewed by the
Affordable Housing Policy Team and approved by the Community Development Director or his designee.
Agreements which involve requests for offsets and/or incentives, other than those permitted by right, shall
require the recommendation of the Housing Commission and action by the City Council as the final
decision-maker. Following the approval and execution by all parties, the Affordable Housing Agreement
with approved Site Development Plan shall be recorded against the entire development, including market-
rate lots/units and the relevant terms and conditions therefrom filed and subsequently recorded as a
separate deed restriction or regulatory agreement on the affordable project individual lots or units of
property which are designated for the location of affordable units. The approval and execution of the
Affordable Housing Agreement shall take place prior to final map approval and shall be recorded upon
final map recordation or, where i? map is not being processed, prior to the issuance of building permits
for such lotshnits. 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.
B. An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through new construction of inclusionary units, either onsite or offsite, shall
establish, but not be limited to, the following:
1. The number of inclusionary dwelling units proposed, with specific
calculations detailing the application of any incentive adjustment credit;
2. The unit square footage, and number of bedrooms;
3. The proposed location of the inclusionary units;
4. Amenities and services provided, such as daycare, after school programs,
5. Level and tenure of affordability for inclusionary units;
6. Schedule for production of dwelling units;
7. Offsets provided by the City; if approved at the time of the execution of
the Affordable Housing Agreement;
8. Where applicable, requirements for other documents to be approved by
the City, such as marketing, leasing and management plans; financial assistance/loan documents; resale
agreements; and monitoring and compliance plans;
9. Where applicable, identification of the affordable housing Developer and
agreements specifying their role and relationship to the project; and
C. An Affordable Housing Agreement, for which the inclusionary housing
requirement will be satisfied through payment to the City of any in-lieu contributions other than fee
monies, such as land dedication, shall include the method of determination, schedule and value of total in-
lieu contributions.
transportation, job training/employment services and recreation;
10
D. An Affordable Housing Agreement will not be required for projects which will
be satisfying their inclusionary housing requirement through payment to the City of an in-lieu fee.
21.85.145. 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 andor reviewing all inclusionary
housing agreements.
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(B). Amendments to
Affordable Housing agreements initially approved prior to the effective date of this ordinance shall be
entitled to consideration under the ordinance provisions superseded by this ordinance.
21.85.160. Pre-existinp Auurovals.
Any residential developments for which a Site Development Plan for the affordable housing
component of the development was approved prior to the effective date of this ordinance shall not be
subject to the amended provisions of this chapter, but shall be governed by the ordinance superseded by
this ordinance.
2 1.85.170. 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.
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.
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.
B.
C.
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 this ordinance, under any chapter, ordinance, or
part of an ordinance hereby otherwise repealed, all p:ovisions of such chapter, ordinance, or part of an
ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or
other proceedings, with respect to any such violation, right, liability or appeal.
21.85.190. Seuarabilitv 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. ...
...
11
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City
Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in the
Carlsbad Sun within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the
day of , 19-, and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the
day of , 19-, by the following vote, to wit:
AYES:
NOES:
ABSENT:
APPROVED AS TO FORM AND LEGALITY
RONALD R. BALL, CITY ATTORNEY
CLAUDE A. LEWIS, MAYOR
ATTEST:
ALETHA L. FUUTENKRANZ, CITY CLERK
(SEAL)
12
EXHIBIT NO. 3
"Chapter 21.85
INCLUSIONARY HOUSING
Sections:
21.85.010
2 1.85.020
21.85.030
21.85.035
21.85.040
21.85.050
21.85.060
2 1.85.070
2 1.85.080
2 1 .85.090
21.85.100
21.85.1 10
21.85.120
21.85.130
Purpose and Intent.
Definitions.
WInclusionary Housing Requirement.
New Master Plans or Specific Plans.
Affordable Housing Standards.-
Calculating the Required Number of Inclusionary Units.k-.t-kett
. ..
ustment to the Inclusion
lusionary Units.-
ects.- ..
ot Required.-
2 1.85.140
21.85.145
21.85.150
2 1.85.160
21.85.170 Enforcement.-.
21.85.180 Savings Clause.-
21.85.190 Separability of Provisions.-
. . ..
..
21.85.010. Pumose and Intent.
The purpose and intent of this chapter is as follows:
1
HA. It is an objective of the City, as established by the Housing Element of the City's General Plan,
to ensure that all residential development, including all Master Planned and Specific Planned communities and all
residential subdivisions, provide a range of housing opportunities for all identifiable economic segments of the
population, including households of lower and moderate income. It is also the policy of the City to:
1. Require that a minimum of fifteen (15%) percent of all approved residential
development Jm- be restricted to and affordable by to
lower-income households; subject to adjustment based on the granting of certain incentives;
Require that for those developments which provide ten or more units affordable to
lower-income households, at least ten (10%) percent of the lower-income units AetAd- shall have three or more
bedrooms; and
& el 0 Under certain conditions, allow alternatives to onsite construction as a means of providing affordable units;
.. . ..
2.
.. . 3. ..
In specific cases, allow inclusionary requirements to be satisfied through the payment of an in-lieu
fee as an alternative to requiring inclusionary units to be constructed on the ground;
It is the purpose of this chapter to ensure the implementation of the City objective and policy
stated in subsection (E+ A.
Nothing in this chapter is intended to create a mandatory duty on W 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.
OB.
(c)C.
21 ~5.020. Definitions.
Whenever the following terms are used in this chapter, they shall have the meaning established by this section:
HA. "Affordable housing" means housing for which the al!owable housing expenses paid by a
qualifying household shall not exceed a specified fraction of the gross monthly income, adjusted for household size, for
the following classes of housing:
1. le units: thirty (30%) percent of the gross
monthly income, adjusted for household size, at
w2. Very low-income, 1 rental and t+mm&d +for-sale units: thirty (30%) percent of the gross monthly income, adjusted for
household size, at fifty (50%) percent of the County median income;
Low-income, 1 for-sale units: thirty (30%)
percent of the gross monthly income, adjusted for household size, at sew&y eighty (80%) percent of the County median
income;
(Bj.4. Low-income, rental units: thirty (30%)
percent of the gross monthly income, adjusted for household size, at seventy (70%) percent of the County median
income;
BB. "Affordable housing agreement" means a legally binding agreement between a Developer and
the City to xw!w that the inclusim I FC 1'rrrr.e"ti cf th: chapter are satisfied. The zgeement establishes, among
other thmgs, the number of required inclusionary units, the unit sizes, location, aifordability tenure, telms arid conditions
of affordability and unit production schedule.
"Allowable housing expense" means the total monthly or annual recurring expenses required of
a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and interest at the
time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners
association dues and a reasonable allowance for utilities as defined by the Federal Regulations for the Ske&eA Tenant
Based Rental Assistance Program. For a rental unit, allowable housing expenses include rent and a eemmble utility
allowance ~%M&&w- . as established and adopted by the City of Carlsbad Housing Authority, as well as all monthly
2
County median income;
w3.
w.
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.
WD. "Base residential units" means a number of units associated with each Master Plan or Specific
Plan fi from which are
calculated the lower-income inclusionary units to be provided in conjunction with that Master Plan or Specific Plan.
"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.
"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.
"Conversion1' means the change of status of a dwelling unit from a purchased unit to a rental
unit or vice versa.
"Density bonus (new residential construction)" means a minimum density increase of at least
twenty-five (25%) percent over either the Growth Management Control Point of the applicable General Plan
designation, as defined in Section 21.90.045 of this Title, or the otherwise maximum allowable residential density as
specified by the applicable Master Plan or Specific Plan, at the time of application.
. .. .. . ..
E.
OF.
HG.
@H.
-3 I" Vlll" 1
I. "Extremely low-income household" means those households whose gross income is equal to or
less than thirty (30%) percent of the median income for San Diego County as determined by the US. Department of
Housing and Urban Development.
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 set-aside funds, 8f: 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.
(H-jK. "Growth Management Control Point" shall have the same meaning as provided in chapter
2 1.90, Section 2 1.90.045 of this Title.
WL. "Incentives" means a reduction in the inclusionary housing requirement granted in return for
the provision of certain desired types of affordable housing or related amenities as determined by the City Cokcil.
WM. "Inclusionary housing project" means a new residential development or conversion of existing
residential buildings which has at least fifteen (15%) percent ed%e-pee&--of the total units reserved and made
affordable to lower-income households 1 , as required by this chapter.
ON. "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.
WO. "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 Se&ki+Tenant Based Rental Assistance Progam, or its siic,cesso~.
"Low-income household" means those households whose gross income is more than fifty
(50%) percent but does not exceed eighty (80%) percent of the median income for San Diego County as determined
annually by the US. Department of Housing and Urban Development.
WQ. "Lower-income household" means low-income; &very low-income and extremely low- income households, whose gross income does not exceed eighty (80%) percent of the median income for San Diego
County as determined annually by the U.S. Department of Housing and Urban Development.
MR. "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.
WP.
3
622
nn Ub, I"
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.
"Residential Development" means any new residential construction of rental or for-sale units or
development revisions, including those with and without a Master Plan or Specific Plan, planned unit developments,
Site Development Plans, mobilehome developments and conversions of apartments to condominiums, as well as
dwelling units for which the cost of shelter is included in a recurring payment for expenses, whether or not an initial
lump sum fee is also required.
WU. "Target income level" means the income standards for extremely veiy low, very low and low-
income levels within San Diego County as determined annually by the US. Department of Housing and Urban
Development, and adjusted for family size.
T.
@+V: "Very low-income household" means a household earning a gross income equal to fifty (50%)
percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing
and Urban Development.
. .. 21.85.030. W Inclusionarv Housing Requirement.
The inclusionary housing requirements of this chapter shall apply as follows:
HA. This chapter shall apply to all residential market-rate dwelling units resulting from new
condominiums construction of rental and "for-sale" projects, as well as the conversion of apartments to
+W-&nf?:
t? Tee B. For any residential development or development revision of fefeft fifty (50) units or more, not
less than fifteen (15%) percent of the total units approved shall be constructed and restricted both as to occupancy and
affordabihty to lower-income households.
For those developments which are required to provide ten or more units affordable to lower
income households, at least ten {IO%) percent of the lower income units shall hevs t' ee CT xcre bedrooms.
Notwithstanding the foregoq, this chapter shall not apply io the foilmvin?.
C.
&)D.
w1. Existing residences which are altered, improved, restored, repaired. expanded or
. , except that this chapter shall pertain to the
Conversion of a mobilehome park pursuant to Section 21.37.120 of the Code:
extended, provided that the number of units is not increased,
subdivision of land for the conversion of apartments to m+sp-ee condominiums,
2.
4
&$33. The construction of a new residential structure which replaces a residential structure
that was destroyed or demolished within bo 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
prcviously destroyed or demolished residential structure; m. Any residential unit which is accessory as defined in Section 2 1.04.020 of this CodeT 7; or ..
)) 0
5.
6.
7.
Second Dwelling Units developed in accordance with Section 2 1.10.0 15 of this Code;
Any project or portion of a project which is a commercial living unit as defined in
Those residential units which have obtained affordable housing approvals prior to the
Section 21 -04.093 of this Code; and
effective date of this ordinance, as set forth in Section 21.85.160 of this chapter.
21.85.035 New Master Plans or SDecific Plans
New Master Plans and Specific Plans shall submit an inclusionary housing plan as follows:
All Master Plans and Specific Plans approved on or after the effective date of this Ordinance
are required by this chapter to provide an inclusionary housing plan within the Master Plan or Specific Plan document.
This inclusionary housing plan will include appropriate text, maps, tables, or figures to establish the basic framework for
implementing the requirements of this chapter. It shall establish, as a minimum, but not be limited to, the following:
A.
1.
2.
3.
The total number of base residential units of the Master Plan or Specific Plan;
The number of required inclusionary units for lower-income households over the entire
The designated sites for the location of the inclusionary units, including but not limited
Master Plan or Specific Plan;
to any sites for locating offsite inclusionary housing projects or combined inclusionary housing projects;
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 temis 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 2 1.85.140 of this chapter.
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.
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.
B.
C.
5
21.85.040. Affordable Housing Standards
The affordable housing standards are as
A. All residential devel
requirements of this chapter, notwithstanding a residential development under other
program requirements, laws or regulations, including but not limited to Chapter 2 1.86 (Residential Density Bonus) of
esidential development
project site.
The required inclusionary units shall be constructed concurrently with market-rate units unless
both the fmal decision-making authority of the City and Developer agree within the Affordable Housing Agreement to
an alternative schedule for development.
Inclusionary rental units shall remain restricted and affordable to the designated income group
for 55 years. In addition to the income of a targeted group, limitations on assets may also be used as a factor in
determining eligibility for rental or for-sale units. Notwithstanding anything to the contrary in this chapter, no
inclusionary unit shall be rented for an amount which exceeds ninety (90%) percent of the actual rent charged for a
comparable market unit in the same development, if any.
After the initial sale of the inclusionary for-sale units at a price affordable to the target income
level group, inclusionary for-sale units shall remain affordable to subsequent income eligible buyers. pursuant to a resale
restriction with a term of thirty (30) years or for-sale units may be sold at a market price to other than targeted
6
this Code. 1_ ~
C.
D.
E.
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.
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.
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.
Inclusionary projects shall provide a mix of affordable dwelling units, as to number of
bedrooms, in response to affordable housing demand priorities of the City.
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.
F.
G.
H.
I.
21 35.050. CalculatinP the Reauired Number of Tnclusionarv Units.
Subject to adjustments for incentives, the required number of lower-income inclusionary units shall be fifteen
(15%) percent of all residential units, approved by the final decision-making authority. Fractional unit requirements of
.5 or greater will be rounded up to a whole unit, 1 . or a
fractional proportion of the in-lieu fee may be paid.
21.85.060. Incentive Credit Adiustment to the Inclusionary Reauirement.
Certain types of affordable housing are relatively more desirable in satisfying the City's state mandated
affordable housing requirement as well as the City's Housing Element, goals, objectives and policies, and these may
change over time.
As an incentive to assist the City in providing this housing, Developers may receive additional (more than one
unit) credit for each of such units provided, thereby reducing the total inclusionary housing requirement-
ic>edit m-
by the City Council and made availabIe to Developers subject to this chapter.
.. (1 KO/
9
Cty. !f c 7
21.85.070. Alternatives to Construction of Inclusionaw 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.
The City Council may approve alternatives to the construction of new inclusionary units where
the proposed alternative supports specific Housing Element poIicies and goals and assists the City in meeting its +the 5 stated+wm&ed i+i%&t& 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 second
dwelling units and construction of special needs housing projects or programs (shelters, transitional housing, etc.).
Contribution to a special needs housing project or program may also be an acceptable
alternative based upon such findings. The contribution shall amount to the calculation of amourir for an in-lieu fee as set
forthin Section21.85.110.
A.
B.
10
/I\ ,c ~ \&J "I 1 *
An affordable housing requirement may be satisfied with offsite cons
A. When it can be demonstrated by a Developer that the location of inclusionary units onsite is not
feasible, and that the goals of this chapter and the City's Housing Element would be better served by allowing some or
all of the inclusionary units associated with one residential project site to be produced and operated at an alternative site
or sites the restllting linked inclusionary project site(s) is a combined inclusionary housing project.
It is at the sole discretion of the City Council to authorize the residential site(s) which form a
combined inclusionary housing project. Such decision shall be based on findings that the Combined Project represents a
more effective and feasible means of implementing this chapter and the goals of the City's Housing Element. Factors to
be weighed in this determination include: the feasibility of the onsite option considering project size, site constraints,
competition fiom multiple projects, difficulty in integrating due to significant price and product type disparity, lack of
capacity of the onsite development entity to deliver affordable housing. Also to be considered is whether the offsite
option offers greater feasibility and cost effectiveness, particularly, regarding potential local public assistance and the
City's affordable housing financial assistance policy, location advantages such as proximity to jobs, schools,
11
B.
transportation, services, less an impact on other existing developments, capacity of the development entity to deliver the
project, and satisfaction of multiple Developer obligations that would be difficult to satisfy with multiple projects.
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.
Location of the combined inclusionary housing project is limited to sites within the same City
quadrant in which the market-rate units are located, or site which are contiguous to the quadrant in which the market-
rate units are proposed. s
C.
D.
/I\
*&+de@.-
-
12
Inclusionary units created which exceed the final re ment 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.
4%”-k
13
21.85.100. Offsets to the Cost of Affordable Housing Develonment.
consider making offsets available to Developers when necessary to enable
residential projects to provide a preferable product type or affordability in excess of the requirements of this chapter.
Offsets will be offered by the City to the extent that resources and programs for this purpose are available to the City and
approved for such use by the City Council, and to the extent that the residential development, with the use of offsets,
assists in achieving the City's housing goals. To the degree that the City makes available programs to provide offsets,
Developers may make application for such programs Evaluation of requests for offsets shall be based on the
effectiveness of the offsets in achieving a preferable product type and/or affordability objectives as set forth within the
Housing Element; the capability of the development team; the reasonableness of development costs and justification of
subsidy needs; and the extent to which other resources are used to leverage the requested offsets. Nothing in this chapter
establishes, directly or through implication, a right to receive any offsets from the City or any other party or agency to
enable the Developer to meet the obligations established by this chapter. Projects are entitled to density bonuses andor
other incentives in accordance with provisions of state law, pursuant to the provisions of Chapter 21.86. of this code.
Any offsets approved by the City Council and the housing affordability to be achieved by use of those offsets shall be
set out within the Affordable Housing Agreement pursuant to Section 21.85.140 or, at the City's discretion in a
subsequent document. Furthermore, Developers are encouraged to utilize local, state or federal assistance, when
available, to meet the affordability standards set forth in Sections 21.85.030 and 21.8.040.
The City shall
21.85.110. In-lieu Fees.
Payment of a fee in-lieu of construction of a le units may be appropriate in the following circumstances:
A.
B.
For any residential development or development revision of six units or less, the inclusionary
requirements may be satisfied through the payment to the City of an in-lieu fee or other in-lieu contribution such as land.
The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen (15%) percent of
the subsidy needed to make affordable to a lower-income household one newly-constructed, typical attached-housing
unit. This subsidy shall be based upon the City Council's determination of the average subsidy that would be required to
make affordable typical, new two-bedroodone bath and three-bedroodtwo-bath for-sale units and rental units, each
with an assumed affordability tenure of at least 55 years.
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
lotshnits of a development.
All in-lieu fees collected hereunder shall be deposited in a Housing Trust Fund. Said fund shall
be administered by the City and shall be used only for the purpose of providing funding assistance for the provision of
affordable housing units or assistance programs and reasonable costs of administration consistent with the policies and
programs contained in the Housing Element of the General Plan.
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
14
C.
D.
E.
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.
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.
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 35.080 of this chapter or new construction of-inclusionary units subject to approval of final decision-malung
authority.
F.
G.
15
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.
S:
ent not subject to a Mas
te Development Plan prior t
a preliminary application to the 44emm-g
pplications for such housing development.
A brief description of the proposal including the number of inclusionary units
The Zoning, General Plan designations and assessors parcel number(s) of the project
A site plan, drawn to scale, which includes: building footprints, driveway and parkng
1.
2.
3.
4.
offsets and/or adjustments are being requested of the City. Justification for each meex&+e
request should also be
in thirty days of receipt of the preliminary application by the Planning Director for
projects not requestin tive adjustments or ninety days for projects
requesting 1 offsets or incentive adjustments the department shall provide to an
applicant/developer, a letter which identifies project issu oncern, the 4 offsets
and incentive adjustments that the phim-mg Community Development Director can support when making a
recommendation to the final decision-making authority, and the procedures for compliance with thls chapter. The
proposed;
site;
layout, building elevations, existing contours and proposed grading; and
A letter identifying what specific fi . .>
bB.
..
16
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.
ubject to this chapter, shall demonstrate compliance with this
therein.
An Affordable Housing Agreement, for which the inclusionary housing requirement will be
satisfied through the new construction of inclusionary units, either onsite or offsite, 1
ionary dwelling units proposed, with specific calculations
B.
shall establish, but not be limited to, the following:
17
r
,
2. The unit (square footage- , and rke number of
3.
4. Amenities and
services provided, such as day-care, after school programs, transportation, job traininglemployment services and
recreation;
Level and tenure of affordability for inclusionary units;
Schedule for production of dwelling units;
bedrooms ,,,IPnl..,,,,,,;
The proposed location of the inclusionary units; ..
5.
(96.
4337.
mS. Where applicable,
Offsets provided by the City; if approved at the
time of the execution of the Affordable Housing Agreement;
requirements for other documents to be approved by the City, such as marketing, leasing and
(839. Where applicable, cf kma4-e
identification of the affordable housing Developer and agreements specifying their role and
management plans; financial assistance/loan documents; resale agreements; and monitoring and compliance plans;
relationship to the project; and
Director, identification of all sources
financial statements, and evidence of a
An Affordable Housing Agreement, for which the inclusionary housing requirement will be
utions other than fee monies, f+e-rsuch as land dedicationj,
and uses of funds for co
fm commitment from the sources when available.
C.
satisfied through payment to the City of any in-lieu c
include the method of determinati c: shall bempwxk dule and value of total in-lieu contributions.
nm
7 , G9 ..
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 7.
per at the time of preliminary
1 inclusionary housing agreements.
.. vv b
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1 I.V-/. Q< < .
their agents, successors and
uilding permit or occupancy
s not meet the requirements oper proposing
of this chapter. All inclusionary units,shall be rented o
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B. The City may &stithe 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.
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.
C.
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 ter, insofar as they are substantially the same as existing code provisions relating to
the same subject matter shall be trued as restatements and continuations thereof and not as new enactments. With
respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this
ordinance, under any chapter, ordinance, or part of an ordinance hereby otherwise repealed, all provisions of such
chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any
proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal.
21.85.-2186190. SeDarabilitv of Provisions.
If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the
remainder of the chapter and the application of the provision to other persons not similarly situated or to other
circumstances shall not be affected thereby.
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