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