HomeMy WebLinkAbout2022-03-22; City Council; Resolution 2022-077RESOLUTION NO. 2022-077
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING THE CITY'S INCLUSIONARY HOUSING IN-LIEU FEE
(MCA2022-0002/PUB2022-0004)
Exhibit 1
WHEREAS, it is in the best interest of the public to establish reasonable standards relating to
the provision of affordable housing for all income levels; and
WHEREAS, t he city's lnclusionary Housing Ordinance (Section 21.85) was established in April
1993 and requires that all residential developments greater than six units restrict 15 percent 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 units may satisfy their inclusionary housing
obligation through payment of an inclusionary housing in-lieu fee; 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, Objective "a" of Program 2.1 in the city's 2021-2029 Housing Element states that 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.
WHEREAS, Objective "b" of Program 2.1 in the city's 2021-2029 Housing Element directs the
city to amend its inclusionary housing program to reflect the updated in-lieu fee and revise the program
as necessary to maximize production of affordable units without adversely affecting market-rate
development.
WHEREAS, Keyser Marston Associates, Inc. (KMA), a real estate economics advisory consulting
firm who was selected by the city via a competitive bidding process, prepared a report dated April 2021
entitled the lnclusionary Housing In-Lieu Fee Update for the City of Carlsbad, which provided options
for an in-lieu fee based on an updated Gap Analysis of the Carlsbad housing market; and
WHEREAS, in a staff report dated Feb. 10, 2022, staff recommended that the Housing
Commission approve the consolidation of Council Policy Statement Nos. 57, 58, and 68 into a single,
amended Council Policy Statement and recommended adjustments to the inclusionary in-lieu fee as
follows:
1. 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 the Consumer Price Index (CPI); and,
2. For all other qualifying residential development projects, change the in-lieu fee
methodology from $4,515 per market-rate unit to $15 per square foot of net building area
for each market-rate unit.
WHEREAS, at their publicly noticed Feb. 10, 2022 meeting, the Housing Commission considered
the KMA report, public comment, and testimony of staff and a representative from KMA and
recommended the following inclusionary housing in-lieu fee adjustments:
1. 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
construction inflation; and,
2. 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, adjusted annually based on a price index that most closely
responds to housing construction inflation.
WHEREAS, the city distributed a notice of intended decision to adopt the "Common Sense"
exemption, covered by the general rule under State CEQA Guidelines 15061(b)(3). The notice was
circulated for a 10-day period, which began on Feb. 15, 2022 and ended on Feb. 25, 2022. The city did
not receive any comment letters on the CEQA findings and determination. The effective date and order
of the city planner CEQA determination was Feb. 28, 2022; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the inclusionary housing in-lieu fee for a new single-family dwelling on a single-family
lot changes from $4,515 to $8,529, adjusted annu ally based on the Engineering News-
Record -Construction Cost Index; and,
3. That the inclusionary housing in-lieu fee for residential development projects proposing two
to six units change from $4,515 per market-rate unit to $15 per square foot of net building
area for each market-rate unit, adjusted annually based on the Engineering News-Record -
Construction Cost Index.
4. That the above fee adjustments become. effective April 1, 2022. Discretionary permit
applications deemed complete prior to that date or building permit applications submitted
where the associated discretionary permit application was approved prior to that date, are
not subject to the new higher in-lieu fee rate.
5. That the inclusionary housing in-lieu fee be reassessed within ten years.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 22nd day of March, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
~V' FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)