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HomeMy WebLinkAbout2022-02-10; Housing Commission; Resolution 2022-003 RESOLUTION NO. 2022-003 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE THE CONSOLIDATION OF COUNCIL POLICY STATEMENTS 57, 58 AND 68 INTO A SINGLE REVISED COUNCIL POLICY STATEMENT AND RECOMMEND ADJUSTMENTS TO THE INCLUSIONARY HOUSING PROGRAM IN-LIEU FEE AMOUNT. WHEREAS, it is in the best interest of the public to establish reasonable standards relating to provision of affordable housing for all income levels; and WHEREAS, the city’s Inclusionary Housing Ordinance was established in April 1993 and requires that all residential developments greater than six units restrict 15percent of the total number of homes in a project as affordable to low-income households; and WHEREAS, while this obligation is fulfilled through construction of a variety of rental or ownership units, residential developments less than seven may satisfy their inclusionary housing obligation through payment of inclusionary housing in-lieu fees; and WHEREAS, in 2015, in California Building Industry Association v. City of San Jose, the California Supreme Court indicated that cities have “broad discretion to regulate the use of real property to serve the legitimate interests of the general public and the community at large” and upheld an ordinance requiring all new residential developments set-aside at least 15 percent of the for-sale units at a price affordable to low or moderate income households; and WHEREAS, in September 2017, Governor Gavin Newsom signed AB 1505 (Bloom), which reinstated a municipality’s right to apply inclusionary requirements to rental housing; and WHEREAS, Goal 10-G.2 of the city’s 2021-2029 Housing Element directs the city to provide sufficient new, affordable housing opportunities in all quadrants of the city to meet the needs of current lower- and moderate-income households and those with special needs, and a fair share proportion of future lower- and moderate-income households; and WHEREAS, as described in Program 2.1 of the city’s 2021-2029 Housing Element, the city will continue to implement its Inclusionary Housing Ordinance, which requires a minimum of 15 percent of all residential projects of seven or more units be restricted and affordable to lower-income households; and WHEREAS, as described in Objective 2.1.a of the city’s 2021-2029 Housing Element, the city shall complete a Gap Analysis of the city’s inclusionary housing in-lieu fee to determine a fee amount necessary and appropriate to reflect market conditions and ensure fees collected are adequate to facilitate the development of affordable units; and WHEREAS, described in Objective 2.1.c of the city’s 2021-2029 Housing Element, the city shall amend its Inclusionary Housing Ordinance to reflect the updated in-lieu fee and revise the ordinance as necessary to maximize production of affordable units without adversely affecting market-rate development; and WHEREAS, the City desires to update its inclusionary housing program policies and fees in a manner consistent with state law and consistent with case law which became effective since the inclusionary rules were last updated; and WHEREAS, at their publicly noticed Feb. 10, 2022 meeting, the Housing Commission considered the proposed inclusionary housing policy as shown in Attachment A to this resolution, the adjusted in- lieu fees as reflected in the staff report, and public testimony when deliberating on this subject; and NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the Housing Commission hereby recommends that the City Council approve revised Council Policy Statement #57, attached hereto as Attachment A. 3.That the Housing Commission hereby recommends that the City Council adjust the inclusionary in-lieu fee amount as follows: a.For a new single-family dwelling on a single-family lot, increase the in-lieu fee from $4,515 to $8,529, adjusted annually based on a price index that most closely responds to housing cost inflation. b.For all other qualifying residential development projects, change the in-lieu fee methodology from $4,515 per market-rate unit to $20 per square foot of net building area for each market-rate unit, phased in over the next five years and then adjusted annually after the five years based on a price index that most closely responds to housing cost inflation. 4. Recommend that the City Council evaluate the feasibility of increasing the number of units eligible to participate in payment of the in-lieu fee from six units to 20 units and consider changing the housing credit purchase price to a flat rate based on the Affordability Gap per Affordable Unit rate as determined in the April 2021 Inclusionary Housing In-Lieu Fee Update Report prepared by Keyser Marston & Associates. PASSED, APPROVED AND ADOPTED at a meeting of the Housing Commission of the City of Carlsbad on the 10th day of February 2022, by the following vote, to wit: AYES: Nguyen-Cleary, Cole, Manzano NAYS: None ABSENT: Cortes-Torres __________________________________ JOHN NGYUEN-CLEARY, Chairperson CARLSBAD HOUSING COMMISSION ATTEST: _________________________ MANDY MILLS Housing & Homeless Services Director