HomeMy WebLinkAbout19 - NB-3 - Inclusionary Housing - 4/19/2016CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 19, 2016 ITEM NUMBER: NB -3
SUBJECT: INCLUSIONARY HOUSING
DATE: APRIL 7, 2016
FROM: DEVELOPMENT SERVICES, HOUSING & COMMUNITY DEVELOPMENT
PRESENTATION GARY ARMSTRONG, ECONOMIC & DEVELOPMENT SERVICES
BY: DIRECTOR/DEPUTY CEO
WILLA BOUWENS-KILLEEN, ZONING ADMINISTRATOR
FOR FURTHER INFORMATION WILLA BOUWENS-KILLEEN, AICP
CONTACT: ZONING ADMINISTRATOR
714.754.5153
willa.bouwens-killeen@costamesaca.gov
RECOMMENDATION:
Determine if City Council wishes to initiate an Inclusionary (Affordable) Housing
Ordinance.
BACKGROUND:
At the City Council meeting of December 1, 2015, Council member Foley requested
staff bring an Inclusionary Housing Ordinance to the City Council; however, it was not
ascertained whether the majority of the Council were interested in adopting such an
ordinance and, if they were, which components should be included.
ANALYSIS:
Inclusionary housing is a tool that can be used by cities to integrate affordable units
within market rate developments. One-third of cities and counties in California have
adopted some form of inclusionary zoning, including ten in Orange County, requiring a
stated percentage (typically 10 to 20%) of affordable units to be provided within newly
constructed housing projects. The majority of these regulations allow for payment of a
housing in -lieu fee as an alternative to providing the required affordable units on-site.
The goal of inclusionary housing programs is to increase the supply of affordable
housing proportionate to market -rate development, and to disperse affordable units
throughout the community.
Assuming City Council is interested in such an ordinance, options could include
requiring developments to incorporate affordable units within their development or to
pay an in -lieu fee to the City with the City, ultimately, contracting with an affordable
housing builder. Staff researched surrounding cities to see what requirements they
have and found the following:
City
Inclusionary
Threshold?
In -Lieu Fee
Housing required
Permitted?
Fountain Valley
No — Incentives
NA
NA
provided per State
Law including
density bonus
Huntington Beach
Yes — 10% of new
3 units
Yes
units with density
bonus available
Irvine
Yes — 15% of new
50 units
Yes
units
Newport Beach
No
NA
NA
Santa Ana
Yes —rezone to
5 residential lots or
Yes
allow greater
units
density; rezone from
non-residential to
residential zone; or
condominium
conversion
The City of Newport Beach had an Inclusionary Housing ordinance, requiring any new
residential development projects to include a percentage of affordable units depending
on whether the units were available to very low-income versus low income households,
with the ability to pay an in -lieu fee when the project consisted of 50 dwelling units or
less; however, it was deleted in 2013 based on the increased financial constraints due
to the inclusionary housing program and the availability of other programs and
resources for the production of affordable housing.
Currently, the City's affordable housing requirements are contained in Chapter X, Article
4 of the Zoning Code which, basically, defers to Government Code Section 65915. City
Council Policy 500-3 establishes methods for complying with Government Code Section
65915 — Density Bonuses and Other Incentives; however, it was last revised in 1991
and no longer accurately reflects either the Government Code or the City's Zoning
Code.
City Council has the option of continuing with the voluntary provision of affordable
housing or amending the Code to require affordable housing. Depending on the
changes Council may wish to institute, processing of a Code amendment would be
required. Should City Council wish staff to proceed with the preparation of an
ordinance, direction regarding a threshold number of units to trigger the requirement as
well as the type of projects, and the ability to pay an in -lieu fee should be provided.
WILLA BOUWENS-KILLEEN, AICP
ZONING ADMINISTRATOR
GARY ARMSTRONG, AICP
ECONOMIC DEVELOPMENT &
DEVELOPMENT SERVICES
DIRECTOR/ DEPUTY CEO
ATTACHMENT 1 - Government Code Section 65195
ATTACHMENT 2 - City of Costa Mesa Zoning Code Chapter IX, Article 4
ATTACHMENT 3 - Affordable Housina Ordinances from four surroundina cities
ATTACHMENT 1
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Im
GOVERNMENTCODE-GOV
TITLE 7. PLANNING AND LAND USE [65000 - 66499.58] ( Heading of Title 7
amended by Stats. 1974, Ch. 1536. )
DIVISION i. PLANNING AND ZONING [65000 - 661031 ( Heading of Division 1
added by Stats, 1974, Ch. 1536. )
CHAPTER 4.3. Density Bonuses and Other Incentives [65915 - 65918] ( Chapter 4.3 added by
Stats. 1979, Ch. 1207. )
(a) When an applicant seeks a density bonus for a housing development within, or for the donation of land for
65915.
housing within, the jurisdiction of a city, county, or city and county, that local government shall provide the
applicant with incentives or concessions for the production of housing units and child care facilities as
prescribed in this section. All cities, counties, or cities and counties shall adopt an ordinance that specifies how
compliance with this section will be implemented. Failure to adopt an ordinance shall not relieve a city, county, or city
and county from complying with this section.
(b) (1) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in
subdivision (f), and incentives or concessions, as described in subdivision (d), when an applicant for a housing
development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus
awarded pursuant to this section, that will contain at least any one of the following:
(A) Ten percent of the total units. of a housing development for lower income households, as defined in Section 50079.5
of the Health and Safety Code.
(13) Five percent of the total units of a housing development for very low income households, as defined in Section
50105 of the Health and Safety Code.
(C) A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome
park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5
of the Civil Code.
(D) Ten percent of the total dwelling units in a common interest development, as defined in Section 4100 of the Civil
Code, for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code,
provided that all units in the development are offered to the public for purchase.
(2) For purposes of calculating the amount of the density bonus pursuant to subdivision (t), an applicant who requests a
density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph
(A), (B), (C), or (D) of paragraph (1).
(3) For the purposes of this section, "total units" or "total dwelling units" does not include units added by a density
bonus awarded pursuant to this section or any local law granting a greater density bonus.
(c) (1) An applicant shall agree to, and the city, county, or city and county shall ensue, the continued affordability of all
very low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a
longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance
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program, or rental subsidy program. Rents for the lower income density bonus units shall be set at an affordable rent as
defined in Section 50053 of the Health and Safety Code.
(2) An applicant shall agree to, and the city, county, or city and county shall ensure that, the initial occupant of all for -
sale units that qualified the applicant for the award of the density bonus are persons and families of very low, low, or
moderate income, as required, and that the units are offered at an affordable housing cost, as that cost is defined in
Section 50052.5 of the Health and Safety Code. The local government shall enforce an equity sharing agreement, unless
it is in conflict with the requirements of another public funding source or law. The following apply to the equity sharing
agreement:
(A) Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller's
proportionate share of appreciation. The local government shall recapture any initial subsidy, as defined in
subparagraph (B), and its proportionate share of appreciation, as defined in subparagraph (C), which amount shall be
used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety
Code that promote home ownership.
(B) For purposes of this subdivision, the local government's initial subsidy shall be equal to the fair market value of the
home at the time of initial sale minus the initial sale price to the moderate -income household, plus the amount of any
downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value,
then the value at the time of the resale shall be used as the initial market value.
(C) For purposes of this subdivision, the local government's proportionate share of appreciation shall be equal to the
ratio of the local government's initial subsidy to the fair market value of the home at the time of initial sale.
(3) (A) An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if
the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units
are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have
been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of
lower or very low income; subject to any other form of rent or price control through a public entity's valid exercise of
its police power; or occupied by lower or very low income households, unless the proposed housing development
replaces those units, and either of the following applies:
(i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable
units at the percentages set forth in subdivision (b).
(ii) Each unit in the development, exclusive of a manager's unit or units, is affordable to, and occupied by, either a
lower or very low income household.
(B) For the purposes of this paragraph, "replace" shall mean either of the following:
(i) If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housing
development shall provide at least the same number of units of equivalent size or type, or both, to be made available at
affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income
category as those households in occupancy. For unoccupied dwelling units described in subparagraph (A) in a
development with occupied units, the proposed housing development shall provide units of equivalent size or type, or
both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the
sante or lower income category in the same proportion of affordability as the occupied units. All replacement
calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be
rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the
proposed development is for -sale units, the units replaced shall be subject to paragraph (2).
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(ii) If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year period
preceding the application, the proposed housing development shall provide at least the same number of units of
equivalent size or type, or both, as existed at the highpoint of those units in the five-year period preceding the
application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families
in the same or lower income category as those persons and families in occupancy at that time, if kriown. If the incomes
of the persons and families in occupancy at the highpoint is not known, then one-half of the required units shall be made
available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and
one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-
income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next
whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded
affordability restriction for at least 55 years. If the proposed development is for -sale units, the units replaced shall be
subject to paragraph (2).
(C) Paragraph (3) of subdivision (c) does not apply to an applicant seeking a density bonus for a proposed housing
development if his or her application was submitted to, or processed by, a city, county, or city and county before
January 1, 2015.
(d) (1) An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a
proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a
meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or
incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon
substantial evidence, of any of the following:
(A) The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section
50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c).
(B) The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of
Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the
California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact without rendering the development unaffordable to low- and moderate -income households.
(C) The concession or incentive would be contrary to state or federal law.
(2) The applicant shall receive the following number of incentives or concessions:
(A) One incentive or concession for projects that include at least 10 percent of the total units for lower income
households, at least 5 percent for very low income households, or at least 10 percent for persons and families of
moderate income in a common interest development.
(B) Two incentives or concessions for projects that include at least 20 percent of the total units for lower income
households, at least 10 percent for very low income households, or at least 20 percent for persons and families of
moderate income in a common interest development.
(C) Three incentives or concessions for projects that include at least 30 percent of the total units for lower income
households, at least 15 percent for very low income households, or at least 30 percent for persons and families of
moderate income in a common interest development.
(3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested
density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or
concession is in violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit.
Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that
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has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or
the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific
adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or
concession that would have an adverse impact on any real property that is listed in the California Register of Historical
Resources. The city, county, or city and county shall establish procedures for carrying out this section, that shall include
legislative body approval of the means of compliance with this section.
(e) (1) In no case may a city, county, or city and county apply any development standard that will have the effect of
physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with
the concessions or incentives permitted by this section. An applicant may submit to a city, county, or city and county a
proposal for the waiver or reduction of development standards that will have the effect of physically precluding the
construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or
incentives permitted under this section, and may request a meeting with the city, county, or city and county. If a court
finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court
shall award the plaintiff reasonable attorney's fees and costs of suit. Nothing in this subdivision shall be interpreted to
require a local government to waive or reduce development standards if the waiver or reduction would have a specific,
adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical
environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards
that would have an adverse impact on any real property that is listed in the California Register of Historical Resources,
or to grant any waiver or reduction that would be contrary to state or federal law.
(2) A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce
nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d).
(f) For the purposes of this chapter, "density bonus" means a density increase over the otherwise maximum allowable
residential density as of the date of application by the applicant to the city, county, or city and county. The applicant
may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled
shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage
established in subdivision (b).
(1) For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density
bonus shall be calculated as follows:
Percentage Low -Income Units
10
11
12
13
14 -
15
17
18
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(2) For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density
bonus shall be calculated as follows:
(3) For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density
bonus shall be 20 percent of the number of senior housing units.
(4) For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density
bonus shall be calculated as follows:
Percentage Moderate -Income Units
10
15
16
17
Percentage Density Bonus
18
13
19
..14
20
15
21
16
17
18
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26
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27
22
28
23
29
24
30
25
31
..
26
32
27
33
28
34
29
35
30
36
31
37
32
38
33
39 I
34 '
40
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20
25
i
21
26
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27
i
23
28
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25
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30
35
(2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum
combined mandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision
and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number.
Nothing in this subdivision shall be construed to enlarge or diminish the authority of a city, county, or city and county
to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased
density bonus described in this subdivision if all of the following conditions are met:
(A) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel
map, or residential development application.
(B) The developable acreage and zoning classification of the land being transferred are sufficient to permit construction
of units affordable to very low income households in an amount not less than 10 percent of the number of residential
units of the proposed development.
(C) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has
the appropriate general plan designation, is appropriately zoned with appropriate development standards for
development at the density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by
adequate public facilities and infrastructure.
(D) The transferred land shall have all of the permits and approvals, other than building permits, necessary for the
development of the very low income housing units on the transferred land, not later than the date of approval of the final
subdivision map, parcel map, or residential development application, except that the ,local government may subject the
proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the
design is not reviewed by the local government prior to the time of transfer.
(E) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of
the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of
the transfer.
(F) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency
may require the applicant to identify and transfer the land to the developer.
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(G) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within
one-quarter mile of the boundary of the proposed development.
(H) A proposed source of funding for the very low income units shall be identified not later than the date of approval of
the final subdivision map, parcel map, or residential development application.
(h) (1) When an applicant proposes to construct a housing development that conforms to the requirements of
subdivision (b) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the
project, the city, county, or city and county shall grant either of the following:
(A) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the
amount of square feet in the child care facility.
(B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of
the child care facility.
(2) The city, county, or city and county shall require, as a condition of approving the housing development, that the
following occur:
(A) The child care facility shall remain in operation for a period of time that is as long as or longer than the period of
time during which the density bonus units are required to remain affordable pursuant to subdivision (c).
(B) Of the children who attend the child care facility, the children of very low income households, lower income
households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of
dwelling units that are required for very low income households, lower income households, or families of moderate
income pursuant to subdivision (b).
(3) Notwithstanding any requirement of this subdivision, a city, county, or city and county shall not be required to
provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the
community has adequate child care facilities.
(4) "Child care facility," as used in this section, means a child day care facility other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and schoolage child care centers.
(i) "Housing development," as used in this section, means a development project for five or more residential units. For
the purposes of this section, "housing development" also includes a subdivision or common interest development, as
defined in Section 4100 of the Civil Code, approved by a city, county, or city and county and consists of residential
units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial
building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision
(d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For
the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one
development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus
shall be permitted in geographic areas of the housing development other than the areas where the units for the lower
income households are located.
a) (1) The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan
amendment, local coastal plan amendment, zoning change, or other discretionary approval. This provision is declaratory
of existing law.
(2) Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not be interpreted to require the
waiver of a local ordinance or provisions of a local ordinance unrelated to development standards.
(k) For the proposes of this chapter, concession or incentive means any of the following:
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(1) A reduction in site development standards or a modification of zoning code requirements or architectural design
requirements that exceed the minimum building standards approved by the California Building Standards Commission
as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but
not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that
would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions.
(2) Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land
uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are
compatible with the housing project and the existing or planned development in the area where the proposed housing
project will be located.
(3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that
result in identifiable, financially sufficient, and actual cost reductions.
(1) Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development,
including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or
dedication requirements.
(in) This section does not supersede or in any way alter or lessen the effect or application of the California Coastal Act
of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code).
(n) If permitted by local ordinance, nothing in this section shall be construed to prohibit a city, county, or city and
county from granting a density bonus greater than what is described in this section for a development that meets the
requirements of this section or from granting a proportionately lower density bonus than what is required by this section
for developments that do not meet the requirements of this section.
(o) For purposes of this section, the following definitions shall apply:
(1) "Development standard" includes a site or construction condition, including, but not limited to, a height limitation, a
setback requirement, a floor area ratio, an onsite open -space requirement, or a parking ratio that applies to a residential
development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law,
policy, resolution, or regulation.
(2) "Maximum allowable residential density" means the density allowed under the zoning ordinance and land use
element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific
zoning range and land use element of the general plan applicable to the project. Where the density allowed under the
zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general
plan density shall prevail.
(p) (1) Except as provided in paragraphs (2) and (3), upon the request of the developer, a city, county, or city and
county shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development
meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios:
(A) Zero to one bedroom: one onsite parking space.
(B) Two to three bedrooms: two onsite parking spaces.
(C) Four and more bedrooms: two and one-half parking spaces.
(2) Notwithstanding paragraph (1), if a development includes the maximum percentage of low- or very low income
units provided for in paragraphs (1) and (2) of subdivision (f) and is located within one-half mile of a major transit stop,
as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the
major transit stop from the development, then, upon the request of the developer, a city, county, or city and county shall
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not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom.
For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is
able to access the major transit stop without encountering natural or constructed impediments.
(3) Notwithstanding paragraph (1), if a development consists solely of rental units, exclusive of a manager's unit or
units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety
Code, then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking
ratio, inclusive of handicapped and guest parking, that exceeds the following ratios:
(A) If the development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section
21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development,
the ratio shall not exceed 0.5 spaces per unit.
(B) If the development is a for -rent housing development for individuals who are 62 years of age or older that complies
with Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed 0.5 spaces per unit. The development shall have
either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least
eight times per day.
(C) If the development is a special needs housing development, as defined in Section 51312 of the Health and Safety
Code, the ratio shall not exceed 0.3 spaces per unit. The development shall have either paratransit service or
unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.
(4) If the total number of parking spaces required for a development is other than a whole number, the number shall be
rounded up to the next whole number. For purposes of this subdivision, a development may provide on-site parking
through tandem parking or uncovered parking, but not through on -street parking.
(5) This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at the
request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this
subdivision pursuant to subdivision (d).
(6) This subdivision does not preclude a city, county, or city and county from reducing or eliminating a parking
requirement for development projects of any type in any location.
(7) Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or an independent consultant has
conducted an areawide or jurisdictionwide parking study in the last seven years, then the city, county, or city and county
may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial
evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing
levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking
requirements on the cost of market -rate and subsidized developments, and the lower rates of car ownership for low- and
very low income individuals, including seniors and special needs individuals. The city, county, or city and county shall
pay the costs of any new study. The city, county, or city and county shall make findings, based on a parking study
completed in conformity with this paragraph, supporting the need for the higher parking ratio.
(Amended by Stats. 2015, Ch. 699, Sec. 2. Effective January 1, 2016.)
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Costa Mesa, CA Code of Ordinance -
ATTACHMENT 2
ARTICLE 4. - DENSITY BONUSES AND OTHER INCENTIVESP)
Footnotes:
Page 1 of 2
--- (4) ---
Editor's note— Ord. No. 06-7, § 1b., adopted April 18, 2006, amended article 4 in its entirety to read as herein set out. Former article 4, §§ 13.
152-13-158, pertained to affordable housing incentives, and derived from Ord. No. 97-11, §Z 5-5-97.
Sec. 13-152. - Purpose.
The purpose of this article is to provide incentives for the production of affordable housing, senior
housing, and child care facilities in compliance with State Government Code Section 65915 et. seq.
regarding density bonuses and other incentives.
(Ord. No. 06-7. § 1 b. 4-18-06)
Sec. 13-153. - Qualified project.
To qualify for a density bonus and concessions or other incentives, the developer of a proposed
housing project of at least five (5) units, must provide housing units affordable to certain income
households, donate land, and/or construct a child care facility pursuant to State Government Code
Section 65915 et seq.
(Ord. No. 06-7. § 1 b.. 4-18-06)
Sec. 13-154. -Application and review process.
(a) Preliminary application. A developer of a qualified housing project and/or child care facility may
submit a preliminary application pursuant to this article prior to the submittal of any formal
requests for approvals for a housing project development.
Within thirty (30) days of receipt of the application, the planning division shall provide to the applicant,
the procedures for compliance with this article, a copy of this article and related policies, the pertinent
sections of the State Codes to which reference is made in this article, and an application.
(b) Submittal. The completed formal application shall include the following information.
(1) A legal description of the total site proposed for development including a statement of
present ownership and present and proposed zoning.
(2) A letter signed by the present owner stating how the project will comply with State
Government Code Section 65915 et seq. and stating what is being requested of the city, i.e.,
density bonus and specific concessions or incentives.
(3) A pro -forma for the proposed project to justify the requested concession or incentive and to
establish the land valuation per dwelling unit of bonus units. The applicant shall show that any
requested waiver or reduction of a development standard is necessary to make the housing
units economically feasible.
(4) A management plan for complying with the maintenance of the designated units regarding
income qualification documentation and rent or sale price documentation.
(5) Site plan and supporting plans per the planning application submittal requirements.
(c) Review. The review of an application for a density bonus and concession or incentive request shall
be processed as a planning application pursuant to chapter III planning applications. The planning
division shall review the application for its conformance with State Government Code Section
mn�
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Costa Mesa, CA Code of Ordinances
Page 2 of 2
65915 et seq. and applicable City Codes and make a report to the planning commission. If the
application involves a request for direct financial incentives, then any action by the planning
commission on the application shall be advisory only, and the city council shall have the authority
to make the final decision on the application.
(Ord. No. 06-7. § 1 b.. 4-18-06)
Secs. 13-155-13-158. - Reserved.
.
ev
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ATTACHMENT 3 -- CITY OF FOUNTAIN VALLEY
Fountain Valley Municipal Code
mes
Title 21 ZONING
Chapter 21.08 RESIDENTIAL ZONING DISTRICTS
21.05.050 Standards for specific land uses.
(a) Affordable Housing Density Bonus Incentives.
(1) Purpose. The purpose of this section is to provide incentives for the production of affordable housing,
senior housing, and child care facilities in compliance with State Government Code Section 65915 et seq.,
regarding density bonuses and other incentives.
(2) Qualified Project. To qualify for a density bonus and concessions or other incentives, the developer of
a proposed housing project of at least five units, must provide housing units affordable to certain income
households, donate land, and/or construct a child care facility or provide qualifying senior housing pursuant to
State Government Code Section 65915 et seq.
..........1
(3) Application and Review Process.
(A) Preliminary Application. A developer of a qualified housing project and/or child care facility may
submit a preliminary application pursuant to this article prior to the submittal of any formal requests for
approvals for a housing project development.
Within thirty days of receipt of the application, the planning department shall provide to the applicant the
procedures for compliance with this section, a copy of this section and related policies, the pertinent sections
of the state codes to which reference is made in this section, and an application.
(B) Submittal. The completed formal application shall include the following information.
(i) A legal description of the total site proposed for development including a statement of present
ownership and present and proposed zoning.
(ii) A letter signed by the present owner stating how the project will comply with California Government
Code Section 65915 et seq., and stating what is being requested of the city, e.g., density bonus and specific
concessions or incentives.
(iii) A pro -forma for the proposed project to justify the requested concession or incentive and to establish
the land valuation per dwelling unit of bonus units. The applicant shall show that any requested waiver or
reduction of a development standard is necessary to make the housing units economically feasible.
(iv) A management plan for complying with the maintenance of the designated units regarding income
qualification documentation and rent or sale price documentation.
(v) Site plan and supporting plans per the planning application submittal requirements.
(C) Review. The review of an application for a density bonus and concession or incentive request shall be
processed as a planning application pursuant to Chapter 21.32 of the Municipal Code. The planning
department shall review the application for its conformance with California Government Code Section 65915
....
or seq., and applicable city codes and make a report to the planning commission. If the application involves a
request for direct financial incentives, then any action by the planning commission on the application shall be
advisory only, and the city council shall have the authority to make the final decision on the application.
(b) Accessory Uses and Structures. This section provides standards for accessory uses and structures
allowed in the applicable zoning district (see Section 21.08.030, Residential zoning district land uses and
permit requirements), subject to the following criteria and standards:
_ 1 (.0-
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230.26 <em class="hit">Af
CITY OF HUNTINGTON BEACH
Beach Charter and
No
ZONING CODE
Title 23 ZONING CODE—PROVISIONS APPLYING IN ALL OR SEVERAL DISTRICTS
Chanter 230 SITE STANDARDS
Article I. Residential Districts
1 remove hiehliehtine 1
230.26 Affordable Housing
A. Purpose.
1. The purpose and intent of this chapter is to implement the goals, objectives and policies of the
City's Housing Element. It is intended to encourage low- and moderate -income housing, which is
integrated, compatible with and complements adjacent uses, and is located in close proximity to
public and commercial services.
2. The affordable housing program is one tool the City utilizes to meet its commitment to
provide housing affordable to all economic sectors, and to meet its regional fair -share
requirements for construction of affordable housing.
3. As a result of being located within a redevelopment area and/or Specific Plan area, additional
restrictions or requirements may apply.
B. Applicability. This section shall apply to new residential projects three or more units in size.
1. A minimum of 1.0% of all new residential construction shall be affordable housing units. The
whole number established by dividing the total unit count proposed by 10 shall be affordable
housing units unless paragraph (13)(4) of this section applies. Any fractional amount may be paid
with an equivalent in -lieu fee.
2. Rental units included in the project shall be made available to low-income households as
defined by Health and Safety Code Section 50079.5, or a successor statute. Rental units included in
the project may be made available to moderate -income households as defined by Health and Safety
...............
Code Section 50093, or a successor statute if the moderate -income units are located on-site within
the project.
3. For sale units included in the project shall be made available to moderate -income households,
as defined by Health and Safety Code Section 50093, or a successor statute.
_
.....................................................
4. Developers of residential projects consisting of 30 or fewer units may elect to pay a fee in lieu
of providing the units on-site to fulfill the requirement of this section, tmless the affordable
housing requirement is outlined as part of a Specific Plan project.
5. Developers of residential projects may elect to provide the affordable units at an off-site
location pursuant to subsection B of this section unless otherwise outlined as part of a Specific Plan
project. If affordable units are off-site, they must be under the full control of the applicant, or other
approved party.
6. New residential projects shall include construction of an entirely new project or new units
added to an existing project. For purposes of determining the required number of affordable
housing units, only new units shall be counted.
C. Fees in Lieu of Construction.
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1. Fees paid to fulfill the requirements of this section shall be placed in the City's Affordable
Housing Trust Fund, the use of which is governed by subsection E of this section.
2. The amount of the in -lieu fees shall be calculated using the fee schedule established by
resolution of the City Council.
3. One hundred percent of the fees required by this section shall be paid prior to issuance of a
building permit.
[Ordinance. No. 3827 (expired 4/15/10) and Ordinance No. 3879, effective from 5/3/10 to 5/3/11, temporarily deferred the
payment of certain Development Impact Fees.]
4. Fees paid as a result of new residential projects shall be based upon the total number of the
new residential units which are to be constructed.
D. Off -Site Construction of Affordable Units. Except as may be required by the California Coastal
Act and/or the Government Code Section 65590 or a successor statute developers may provide the
required affordable housing off-site, at one or several sites, within the City of Huntington Beach.
1. Off-site projects may be new construction or substantial rehabilitation, as defined by
Government Code Section 33413 affordable housing production requirements of existing non-
.................. .... ....I..........
restricted units conditioned upon being restricted to long-term affordability. "At risk" units
identified in the Housing Element or mobile homes may be used to satisfy this requirement.
2. All affordable off-site housing shall be constructed or rehabilitated prior to or concurrently
with the primary project. Final approval (occupancy) of the first market rate residential unit shall be
contingent upon the completion and public availability, or evidence of the applicant's reasonable
progress towards attainment of completion, of the affordable units.
E. Miscellaneous Provisions.
1. The conditions of approval for any project that requires affordable units shall specify the
following items:
a. The density bonus being provided pursuant to Section 23 0.14, if any;
b. The number of affordable units;
e. The number of units at each income level as defined by the 'Health and Safety Code; and
........................................................
d. A list of any other incentives offered by the City.
2. An Affordable Housing Agreement outlining all aspects of the affordable housing
provisions shall be executed between the applicant and the City and recorded with the Orange
County Recorder's Office, or the applicable in -lieu fee shall be paid in full, prior to issuance of the
first building permit.
3. The agreement shall specify an affordability term of not less than 55 years for rental housing
or 45 years for ownership housing.
4. All affordable on-site units in a project shall be constructed concurrently with or prior to the
construction of the primary project units unless otherwise approved through a phasing plan. Final
approval (occupancy) of the first market rate residential unit shall be contingent upon the
completion and public availability, or evidence of the applicant's reasonable progress towards
attainment of completion, of the affordable units.
5. All affordable units shall be reasonably located throughout the project unless otherwise
designed through a master plan, shall contain on average the same number of bedrooms as the
market rate units in the project, and shall be comparable with the market rate units in terms of
exterior appearance, materials and finished quality.
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6. Affordable Housing Trust Funds shall be used for projects which have a minimum of 50% of
the dwelling units affordable to very low- and low-income households, with at least 20% of the
units available to very low-income households. Concurrent with establishing the annual fee
schedule pursuant to subsection C of this section, the City Council shall by resolution set forth the
permitted uses of Affordable Housing Trust Funds. All units that obtain Affordable Housing
Trust Funds shall maintain the affordability of the units for a minimum of 55 years. The funds may,
at the discretion of the City Council, be used for pre -development costs, land or air rights
acquisition, rehabilitation, land write downs, administrative costs, gap financing, or to lower the
interest rate of construction loans or permanent financing.
7. New affordable units shall be occupied in the following manner:
a. If residential rental units are being demolished and the existing tenant(s) meets the
eligibility requirements, he/she shall be given the right of first refusal to occupy the
affordable unit(s); or
b. If there are no qualified tenants, or if the qualified tenant(s) chooses not to exercise the
right of first refusal, or if no demolition of residential rental units occurs, then qualified
households or buyers will be selected.
F. Price of Affordable Units. Affordable housing cost shall be calculated in accordance with Health
...................
and Safety Code Section 50052.5 standards for ownership units and Health and Safety Code Section
...............111.1.. 1111.
50053 standards for rental units. This methodology is fully described in the City's adopted housing
policies.
G. Reduced Fees for Affordable Housing. Projects that exceed inclusionary requirements on-site
will be eligible for reduced City fees, pursuant to an Affordable Housing Fee Reduction Ordinance,
upon adoption by the City Council.
H. Annual Program Review and Periodic Adjustment of the Fee. Within 180 days after the last day
of each fiscal year, the City Council shall review the status of the City's Affordable Housing Trust
Fund, including the amount of fees collected, expenditures from the Affordable Housing Trust Fund,
and the degree to which the fees collected pursuant to this chapter are assisting the City to provide and
encourage low- and moderate -income housing. The fee shall be updated annually using the Real Estate
and Construction Report published by the Real Estate Research Council of Southern California. The fee
change shall be based on the percentage difference in the new home prices in Orange County published
in the fourth quarter report for the then current year versus the immediately preceding year. (3687-12/04,
3827-4/09, 3829-6/09, 3879-6/10, 4040-12/14)
View the mobile version.
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I Huntington Beach Charter and Codes
T
ZONING CODE
Title 23 ZONING CODE—PROVISIONS APPLYING IN ALL OR SEVERAL DISTRICTS
Chapter 230 SITE STANDARDS
Article I. Residential Districts
1 remove highlighting 1
230.14 Affordable Housing Density Bonus
A. when a developer of a residential property which is zoned and general planned to allow five or
more dwelling units proposes to provide affordable housing, he or she may request a density bonus and
incentives or concessions through a Conditional Use Permit subject to the provisions contained in this
section. A density bonus request pursuant to the provisions contained within this section shall not be
denied unless the project is denied in its entirety.
B. Affordability Requirements.
1. Percentage of Affordable Units Required. To qualify for a density bonus and incentives or
concessions, the developer of a residential project shall elect at least one of the following:
a. Provide at least 10% of the total units of the housing development for lower income
households, as defined in Health and Safety Code Section 50079.5; or
._ ..
b. Provide at least 5% of the total units of the housing development for very -low-income
households, as defined in Health and Safety Code Section 50105; or
c. Provide a senior citizen housing development as defined in Civil Code Sections 51.3 and
51.12, or mobile home park that limits residency based on age requirements for housing for
older persons pursuant to Civil Code Sections 798.76 or 799.5; or
d. Provide at least 10% of the total dwelling units in a common interest development as
defined in Civil Code Section 1351 for persons and families of moderate income, as defined
in Section 50093 of the Health and Safety.Code, provided that all units in the development are
offered to the public for purchase.
The density bonus shall not be included in the total number of the housing units when detennining
the number of housing units required to be affordable. Remaining units may be rented, sold or
leased at "market" rates.
Duration of Affordability.
a. An applicant shall agree to, and City shall ensure, continued affordability of all low- and
very -low-income units that qualified the applicant for the award of the density bonus for 30
years or a longer period of time if required by a construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program.
b. Where there is a direct financial contribution to a housing development pursuant to
Government Code Section 65915 through participation in cost of infrastructure write-down
..... ............................
...........
of land costs, or subsidizing the cost of construction, the City will ensure continued
availability for low- and moderate -income units for 30 years. The affordability agreement
required by Section 230.14(B)(4) shall specify the mechanisms and procedures necessary to
carry out this section.
c. An applicant shall agree to, and the City shall ensure that, the initial occupant of the
moderate -income units that are directly related to the receipt of the density bonus in the
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common interest development, as defined in Section 1351 of the Civil Code, are persons and
uid Code. The
Safety
families o moderate income, as defined in Section 50093 of the Health
City shall enforce an equity -sharing agreement, unless it is in conflict with the 1.requirements
of another public funding source of law. The following shall apply to the equity -sharing
agreement:
i. Upon resale, the seller of the unit shall retain the value of any improvements, the
down payment, and the seller's proportionate share of appreciation. The City shall
recapture any initial subsidy and its proportionate share of appreciation, which shall then
be used within three years for any of the purposes described in subdivision (e) of Section
.2 of the Health and Safety Code that promote home ownership.
ii. The City's initial subsidy shall be equal to the fair market value of the home at the
time of initial sale minus the initial sale price to the moderate -income household, plus
the amount of any down payment assistance or mortgage assistance. If upon resale the
market value is lower than the initial market value, then the value at the time of the
resale shall be used as the initial market value.
iii. The City's proportionate share of appreciation shall be equal to the ratio of the
initial subsidy to the fair market value of the home at the time of initial sale.
3. Affordable Unit Distribution and Product Mix. Affordable units shall be located throughout
the project and shall include a mixture of unit types in the same ratio as provided throughout the
project.
4. AffordabilityAgreement. Affordability shall be guaranteed through an Affordability
Agreement executed through the developer and the City. Said agreement shall be recorded on the
subject property with the Orange County Recorder's Office prior to the issuance of building
permits and shall become effective prior to final inspection of the first unit. The subject agreement
shall be legally binding and enforceable on the property owner(s) and any subsequent property
owner(s) for the duration of the agreement. The agreement shall include, but not be limited to, the
following items:
a. The duration of the affordability and the number of the affordable units;
b. The method in which the developer and the City are to monitor the affordability of the
subject affordable units and the eligibility of the tenants or owners of those units over the
period of the agreement;
G. The method in which vacancies will be marketed and filled;
d. A description of the location and unit type (bedrooms, floor area, etc.) of the affordable
units within the project; and
e. Standards for maximum qualifying household incomes and standards for maximum rents
or sales prices.
5. City Action. Pursuant to this section the City shall grant a density bonus and at least one of the
concessions or incentives identified in subsection D of this section unless the City makes a written
finding pursuant to subsection J of this section.
C. Calculation of Density Bonus.
1. The amount of density bonus to which the applicant is entitled shall vary according to the
amount by which the project's percentage of affordable housing exceeds the percentage
established in subsection B of this section.
21-
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a. For housing developments meeting the low-income criteria of subparagraph 230.14(B)
(1)(a), the base density bonus of 20% shall be increased by 1.5% for every 1% increase in the
percentage of low-income units above 10%. The maximum allowable density bonus shall be
35%.
b. For housing developments meeting the very low-income criteria of subparagraph 230.14
(13)(1)(b), the base density bonus of 20% shall be increased by 2.5% for every 1% increase in
the percentage of very low-income units above 5%. The maximum density bonus shall be
35%.
c. For housing developments meeting the senior citizen housing criteria of subparagraph
230.14(B)(1)(c), the density bonus shall be 20%.
d. For housing developments meeting the moderate -income criteria of subparagraph
230.14(B)(1)(d), the base density bonus of 5% shall be increased by 1% for every 1%
increase in the percentage of moderate -income units over 10%. The maximum density bonus
shall be 35%.
2. All density calculations resulting in fractional units shall be rounded up to the next whole
number. The granting of a density bonus shall not be interpreted, in and of itself, to require a
General Plan amendment, Local Coastal Plan amendment, zoning change, or other discretionary
approval. As used in subsection B of this section, "total units" does not include units permitted by a
density bonus awarded pursuant to this section.
3. The developer may request a lesser density bonus than the project is entitled to, but no
reduction will be permitted in the number of required affordable units pursuant to paragraph
230.14(B)(1).
4. Reductions in Density Within the Coastal Zone. In reviewing residential development
application for low- and moderate -income housing, as defined in Government Code Section
65589.5(h)(3), the City may not require measures that reduce residential densities below the
density sought by an applicant if the density sought is within the permitted density or range of
density established by local zoning plus the additional density permitted under Government Code
Section 65915, unless the City makes a finding, based on substantial evidence in the record, that
the density sought by the applicant cannot feasibly be accommodated on the site in a manner that is
in conformity with the certified Local Coastal Program.
D. Incentives and Concessions.
1. Types of Incentives or Concessions. The City shall grant an incentive or concession to the
developer. An incentive or concession includes, but is not limited to, the following:
a. A reduction in site development standards or modification of zoning code requirements
or architectural design requirements that exceed the minimum building standards approved by
the California Building Standards Commission as provided in Part 2.5 (commencing with
Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a
reduction in setback and square footage requirements and in the ratio of vehicular parking
spaces that would otherwise be required that results in identifiable, financially sufficient, and
actual cost reductions.
i. At the request of the developer, the City will permit a vehicular parking ratio,
inclusive of handicapped and guest parking, for a development meeting the criteria of
subsection B of this section at ratios that shall not exceed:
(A) Zero to one bedroom: one onsite parking space.
(B) Two to three bedrooms: two onsite parking spaces.
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(C) Four or more bedrooms: two and one-half onsite parking spaces.
ii. If the total number of parking spaces required for a housing development is other
than a whole number, the number shall be rounded up to the next whole number. For
purposes of this section only, a housing development may provide on-site parking
through tandem parking or uncovered parking but not through on -street parking.
b. Approval of mixed use zoning in conjunction with the housing project if commercial,
office, industrial, or other land uses will reduce the cost of the housing development and if
the commercial, office, industrial, or other land uses are compatible with the housing project
and the existing or planned development in the area where the proposed housing project will
be located.
c. Other regulatory incentives or concessions proposed by the developer or the City that
result in identifiable, financially sufficient, and actual cost reductions.
2. Number of Incentives and Concessions. An applicant for a density bonus shall receive the
following number of incentives or concessions:
a. One incentive or concession for projects that included at least 10% of the total units for
lower income households, at least 5% for very -low-income households, or at least 10% for
persons and families of moderate income in a common interest development.
b. Two incentives or concessions for projects that include at least 20% of the total units for
lower income households, at least 10% for very -low-income households, or at least 20% for
persons and families of moderate income in a common interest development.
c. Three incentives or concessions for projects that include at least 30% of the total units
for lower income households, at least 15% for very -low-income households, or at least 30%
for persons and families of moderate income in a common interest development.
3. Requirements for Incentives and Concessions Within the Coastal Zone. Within the coastal
zone, any incentive or concession or combination of incentives and concessions must be consistent
with the requirements of the certified Land Use Plan.
E. Waiver or Reduction of Development Standards. An applicant may submit to the City a
proposal for the waiver or reduction of development standards. The applicant shall show that the waiver
or modification is necessary to make the housing units economically feasible.
F. Donation or Transfer of Land. A developer may donate or transfer land in lieu of constructing the
affordable units within the project pursuant to Government Code Section 65915(h).
........... _..... ........
G. Child Care Facilities.
1. When a developer proposes to construct a housing development that includes affordable units
that conform to subsection B of this section and includes a child care facility that will be located on
the premises of, as part of, or adjacent to the housing development, the City shall grant either of
the following:
a. An additional density bonus that is an amount of square feet of residential space that is
equal to or greater than the amount of square feet in the child care facility.
b. An additional concession or incentive that contributes significantly to the economic
feasibility of the construction of the child care facility.
2. A housing development shall be eligible for the density bonus or concession described in this
section if the City makes all of the following findings:
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a. The child care facility will remain in operation for a period of time that is as long as or
longer than the period of time during which the density bonus units are required to remain
affordable pursuant to paragraph (13)(2) of this section.
b. Of the children who attend the child care facility, the percentage of children of very -low-
income households, lower-income households, or moderate -income households shall be equal
to or greater than the percentage of dwelling units that are required to be affordable to very -
low -income households, low-income households, or moderate -income households.
3. "Child care facility," as used in this section, means a child day care facility other than a family
day care home, including, but not limited to, infant centers, preschools, extended day care facilities,
and school age child care centers.
H. Procedure.
1. In addition to submitting all documentation required to apply for a Conditional Use Permit, a
developer requesting a density bonus pursuant to this section shall include the following in the
written narrative supporting the application:
a. A general description of the proposed project, General Plan designation, applicable
zoning, maximum possible density permitted under the current zoning and General Plan
designation and such other information as is necessary and sufficient. The property must be
zoned and general planned to allow a minimum of five units to qualify for a density bonus.
b. A statement detailing the number of density bonus units being proposed over and above
the number of units normally permitted by the applicable zoning and General Plan
designations.
e. A description of the requested incentive or concessions that the developer requests.
d. A calculation of the density bonus allowed.
2. All subsequent City review of and action on the applicant's proposal for a density bonus
and/or consideration of any requested incentives or concessions shall occur in a manner concurrent
with the processing of the Conditional Use Permit and any other required entitlements, if any. If the
developer proposes that the project not be subject to impact fees or other fees regularly imposed on
a development of the same type, final approval will be by the City Council.
3. The Planning Commission/City Council shall review the subject Affordability Agreement
concurrently with the development proposal. No project shall be deemed approved until the
affordability agreement has been approved by the City Council.
4. The Planning Commission/City Council may place reasonable conditions on the granting of
the density bonus and any other incentives as proposed by the applicant; however, such conditions
must not have the effect, individually or cumulatively, of impairing the objective of California
Government Code Section 65915 et seq., and this section, of providing affordable housing for
...................
qualifying residents.
5. A monitoring fee, as established by resolution of the City Council, shall be paid by the
applicant to the City prior to issuance of a certificate of occupancy for the first unit. This fee shall
be in addition to any other fees required for the processing of the Conditional Use Permit,
environmental analysis, and/or any other entitlements required.
Required Findings for Approval.
1. Density Bonus. In granting a Conditional Use Permit for a density bonus, the Planning
Commission/City Council shall make all of the following findings:
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a. The proposed project, which includes a density bonus, can be adequately serviced by the
City and county water, sewer, and storm drain systems without significantly impacting the
overall service or system.
b. The proposed project, which includes a density bonus, will not have a significant adverse
impact on traffic volumes and road capacities, school enrollments, or recreational resources.
c. The proposed project, which includes a density bonus, is compatible with the physical
character of the surrounding area.
d. The proposed project, which includes a density bonus, is consistent with the overall
intent of the General Plan.
e. If located within the coastal zone, the proposed project which includes a density bonus
will be consistent with the requirements of the certified Land Use Plan and will not result in
the fill, dredge, or diking of a wetlands.
J. Required Finding for Denial.
1. Concessions or Incentives. The City shall grant the concession or incentive requested by the
applicant unless the City makes a written finding, based upon substantial evidence, of one or more
of the following:
a. The concession or incentive is not required in order to provide affordable housing costs,
as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units
to be set as specified in California Government Code Section 65915(c).
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b. The concession or incentive would have a specific adverse impact, as defined in
paragraph (2) of subdivision (d) of California Government Code Section 65589.5 upon
public health and safety or the physical environment or on any real property that is listed in
the California Register of Historical Resources and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact without rendering the development
unaffordable to low- and moderate -income households.
c. The concession or incentive is inconsistent with the requirements of the certified Land
Use Plan. (3710-6/05, 3764-3/07, Res. 2009-36-9/09, 4040-12/14)
View the mobile version.
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Irvine, CA Zoning
CITY OF IRVINE
CHAPTER 2-3. -AFFORDABLE HOUSING IMPLEMENTATION PROCEDURE111
Page 1 of 14
Footnotes:
--- (7) ---
Editor's note—Ord. No, 04-75, adopted December 14, 2004, amended the Code by repealing farmer ch. 2-3, §§2-3-7-2-3-8, and adding anew
ch. 2-3. Former ch. 2-3 pertained to similar subject matter, and derived from Ord. No. 03-09, adopted April 8, 2003.
Sec. 2-3-1. - Intent.
The affordable housing implementation procedure is a means for fulfilling the affordable housing
requirements for certain developments or planning areas, as set forth in the General Plan Housing
Element (hereinafter the "Housing Element"). The implementation procedure describes the
requirements for submitting the affordable housing plan to the City and to ensure that General Plan
requirements are met. Except as otherwise provided in the Housing Element, nothing herein is
intended, nor does it place any obligation on the Cityto provide financial incentives or offset the cost
of providing affordable housing.
(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-2. -Applicability.
The provisions of this Chapter shall be applicable to all residential development proposals,
regardless of zoning, within the City of Irvine. However, unless stated otherwise in this Chapter, the
terms "applicant," "application," "project," and "development' relate only to residential developments
of 50 or more units. Forthe purposes of this Chapter, the term "Applicant' shall mean and, depending
on context, shall include the owner(s), lessee(s) or developer(s) of property, or their authorized agents,
with regard to any application for residential property development permits or approvals from the City
of Irvine.
Projects with less than 50 units may utilize one of the menu options listed in Section 2-3-5.13.3, in -
lieu of providing affordable units.
(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-3. - Submittal requirements.
A. An applicant whose proposal is subject to meeting affordable housing requirements shall submit
an affordable housing plan to the Housing Division as follows:
1. Affordable housing plans for an entire planning area(s) shall be submitted in conjunction with
the first residential map. No application subject to this section shall be deemed complete
without submittal of an affordable housing plan. The plan shall be reviewed and approved by
the Planning Commission as part of the entitlement process for a proposed project.
2. Other residential projects shall submit an affordable housing plan in conjunction with an
application for a general plan amendment or zone change, or with the conditional use
application if no general plan amendment or zone change is proposed. No application subject
to this section shall be deemed complete without submittal of an affordable housing plan. ThF
plan shall be reviewed and approved by the Planning Commission as part of the entitlement
process for a proposed project.
B. The plan shall include the following components:
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1. A description of the affordable housing units to be provided, including type of occupancy, unit
mix, income level served by the affordable housing units, and location of the units.
2. A description of how the affordability of the units will be maintained for the period required by
law. The minimum period of affordability for a newly constructed or converted affordable unit
is 30 years. The minimum period of affordability for the extension of affordability of an
existing affordable unit is 40 years.
3. Whether or not affordable credits are being requested. Guidelines for the Affordable Credits
Program are included in Section 2-3-6 of this Chapter.
C. In conjunction with the submittal of an affordable housing plan, the applicant shall submit a
written request to the City for any specific financial and/or processing incentives requested as a
subsidy for the provision of affordable units. Financial and/or processing incentives that the City
may provide include, but are not limited to, U.S. Department of Housing and Urban Development
(HUD) funds, in -lieu fee proceeds, and the waiver of processing fees.
1. If the applicant is seeking financial, processing or other assistance from the City of Irvine or
the Irvine Redevelopment Agency, as such assistance is defined in the Housing Element, the
following additional information shall be provided:
a. The type and level of financial, processing and/or other assistance being requested.
b. An explanation of why the assistance is being requested.
c. Ajustification for the type and level of assistance being requested. Such justification shall
be in a format acceptable to the City to allow it to determine the validity of the
justification.
d. A list of any and all other non -City or non -Redevelopment Agency sources for assistance
the applicant has received or applied for in conjunction with the project.
e. A list of any and all other non -City or non -Redevelopment Agency sources for assistance
the applicant has reviewed and a detailed explanation of why each of the other sources is
not being used.
D. The applicant shall make a good faith effort to obtain funding sources to achieve the affordable
housing goal. In the event the proposed funding sources are not available or funding is limited for
the development within the planning area, satisfaction of the affordable housing goal shall be
achieved through selection of alternatives in the menu option defined in Section 2-3-5 B 2.
E. The City will participate, when possible, in financial partnerships with applicants of affordable
housing projects as a means of assisting the applicant's endeavor to secure subsidies and
financingforthe development of Income I, II and III rental or ownership housing. An applicant
receiving financial incentives for affordable housing development projects shall be required to
comply with the program monitoring guidelines as defined in Section 2-3-6.
(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-4. - Affordable housing requirements defined.
Residential projects shall provide a minimum of 15 percent of their total units as affordable units,
as defined in the Housing Element and herein, unless otherwise required by this Chapter. The 15
percent affordable units shall be allocated in accordance with the following percentages:
0
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Income Levels I and /l, as defined in the Housing Element. Five percent of the actual number of
dwelling units shall be affordable as rental or ownership units to households earning less than
50 percent of the County median income as annually defined by the California State
Department of Housing and Community Development (Incomes I and II as defined in the
Housing Element).
1. To the degree ownership units are provided to Income II households, a 2:1 credit will be
attributed toward the achievement of the Income II goal.
2. To the degree Income I units are provided, a 1.6:1 credit is available. However, the
number of Income I units in a specific project is subject to approval bythe City.
3. To the degree 3 -bedroom Income I or 11 units are provided, a 1.4:1 credit will be attributed
toward the achievement of the Income II goal.
4. To the degree 4 -bedroom Income I or II units are provided, a 1.6:1 credit will be attributed
toward the achievement of the Income II goal.
B. Income Level Ill, as defined in the Housing Element. Five percent of the actual number of dwelling
units shall be affordable as either rental or ownership units, with the emphasis on ownership
units, to households earning 51 percent to 80 percent of the County median income as
annually defined by the California State Department of Housing and Community
Development. (Income III as defined in the Housing Element).
1. To the degree ownership units are provided to Income III households, a 2:1 credit will be
attributed toward achievement of the Income III goal.
2. To the extent that the affordable units referenced under Section 2-3-4 A, above, are
provided with the use of financial and processing incentives in excess of the five percent
goal, a 2:1 credit will also be attributed toward the achievement of this goal.
3. To the degree three-bedroom Income III units are provided, a 1.4:1 credit will be
attributed toward the achievement of the Income III goal.
4. To the degree four-bedroom Income III units are provided, a 1.6:1 credit will be attributed
toward the achievement of the Income III goal.
C. Combined income levels /, //, and Ill, as defined in the Housing Element (Alternative to meeting
Sections 2-3-4A and B, above). In order to allow projects to compete for County affordable
housing funds and because this approach provides a greater overall level of affordability, the
City will regard the following as meeting the combined affordability goals for Incomes I, 11, and
111, as set forth in Sections 2-3-4 A and 2-3-4 B of this Chapter:
1. Projects which provide a minimum of ten percent of the proposed units affordable to
households earning 60 percent or less of the County median income as annually defined
California State Department of Housing and Community Development.
2. The Planning Commission shall have, on a case-by-case basis, the discretion to consider
and approve ratios other than the currently required five percent ratios if the Commission
determines that a proposal will provide equivalent or enhanced affordability.
D. Income Level IV, as defined in the Housing Element. Five percent of the total number of dwelling
units shall be affordable as rental or ownership units, with emphasis on ownership units in
projects offering ownership housing, to households earning 81 percent to 120 percent of the
County median income as annually defined by the California State Department of Housing and
Community Development. (Income IV as defined in the Housing Element).
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(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-5. - Provision of affordable units; menu option.
A. Location of affordable units.
1. Unless an applicant is qualified to utilize the menu option listed under Section 2-3-5 B,
affordable units must be located within the planning area or on the site of the proposed
project. Any affordable units to be developed outside of the planning area shall be proposed
and identified as part of the affordable housing plan submitted for the overall development
proposal. Provision of units outside of the subject planning area shall count toward the
affordable housing goals of the subject planning area, not the planning area receiving the
u n its.
2. The affordable housing units shall be distributed to prevent a concentration of lower income
households in a neighborhood that already has a disproportionately high number of lower
income households. This prohibition also applies to any excessive concentration of housing
provided for a single income level (e.g., an over -concentration of income level I housing in a
neighborhood). However, in order to expand the applicant's opportunities to obtain financial
assistance for the provision of affordable housing, a project with up to 100 percent
affordability will be considered, and may be approved, by the City. A project application
offering to provide affordable housing excess of the requirements set forth in this Chapter, or
the Housing Element, may only be denied in accordance with the terms of Government Code
Section 65589.5(d).
B. Menu option alternatives.
1. Intent of menu option. The menu option is an alternative to the on-site affordable housing
requirements set forth in Sections 2-3-4 and 2-3-5 A 1 of this Chapter. The menu option is
designed to provide to the City affordable housing benefits that are equal in value to the
actual provision of on-site units in the quantity and quality that would otherwise be provided.
Equivalent values will be determined by taking into account an applicant's ability to reasonably
secure financial incentives (leveraging) for the development of affordable units.
2. Applicability of the menu option. An applicant may only use the menu option if the fulfillment of
its affordable housing obligations under this Chapter are otherwise infeasible. The City will
consider the fulfillment of affordable housing requirements set forth in Sections 2-3-4 and
2-3-5 A 1 of this Chapter to be "infeasible" under the following circumstances:
a. The applicant proposes development in the hillside Planning Areas 1, 2, 6, 17, 18, 22, or 27
where development of affordable housing is impacted by the increased cost of
development in hillside areas; or
b. The applicant proposes a zone change and/or general plan amendment to change the
land use designation from high, medium, or medium-high residential density to low or
estate density which would bring the percentage of residential land in the planning area
designated for low or estate density to 75 percent or more; or
c. The planning area meets all the following criteria:
(1) The planning area is predominately (over 75 percent of the entitlement) developed.
(2) The planning area does not have a City -approved affordable housing program.
(3) The undeveloped residential areas have a zoning designation of estate, low, and/or
medium density; or
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d. Financial or processing incentives are not available do bridge the gap of developing
affordable housing within the planning area. In order to determine whether or not
financial and/or processing incentives are available to bridge the gap of developing
affordable housing within the project area, the applicant shall submit the following items
to the Director of Redevelopment, who will subsequently provide a written determination
regarding the project's ability to utilize the menu option:
(1) A list of any and all other non -City or non -Redevelopment Agency sources for
assistance the applicant has reviewed and a detailed explanation of why each of the
other sources is not being used.
3. Menu options. Applicants who qualify to choose a menu option may choose from one of the
following "equivalent value" options:
a. Convert existing market rate housing to affordable housing for a period of at least 30
years.
b. Extend the term of affordability for affordable units for a period of at least 40 years.
c. Payment of in -lieu fees.
d. Transfer control of units to a nonprofit housing agency.
e. Transfer of off-site credits for affordable units not provided on the site.
f. Provision of alternative housing.
g. Dedication of land for affordable housing.
h. An alternative option acceptable to the City.
An applicant may use one or more options to satisfy the affordable housing requirement.
4. Annual study. To ensure comparable equivalent value of selected menu options in exchange
for not providing units within the planning area, the City shall conduct an annual reevaluation
of the variables used in the in -lieu fee matrix.
5. Implementation of menu options. Should the menu option be utilized in achieving the
affordability goal, the following criteria shall be utilized to implement each option as
respectively listed in Section 2-3-5 B 3:
a. Convert market rate housing to affordable housing: The purchase cost of owner occupied
or the rent for rental units shall be reduced to provide the same number of units at the
same income levels as outlined in Section 2-3-4 for a period of at least 30 years.
Extend the term of affordability of existing program affordable units: For bond units or
other program affordable units whose affordability will expire within five years of the
approval of the affordable housing plan, the existing level of affordability for the
designated income households shall be extended for a period of at least 40 years from
the existing expiration date for an equivalent or greater number of units than required in
Section 2-3-4.
Payment of in -lieu fees: The applicant may pay an in -lieu fee, based on the total number
of units being developed, as determined by City Council resolution and based on the in -
lieu fee formula. The in -lieu fee shall be determined at the time building permits are
issued for development of a project. Applicants may pay an affordable housing in -lieu fee
of $17,000 per unit if an application for a general plan amendment in the Irvine Business
Complex (Planning Area 36) was filed prior to January 1, 2007 and the in -lieu fees are paid
and a building permit is pulled by December 31, 2009. Menu option items are designed to
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generate a value in furtherance of affordable housing that is equivalent or comparable to
the actual value of providing such housing in the planning area as defined in Section 2-3-5
B1.
Fees collected under the in -lieu fee program will be placed in the City's Affordable
Housing Fund (AHF) and will be used to fund projects implementing the City's Housing
Element Needs Assessment and/or serving households earning 80 percent or less of the
Area Median Income (AMI), as annually defined by the California State Department of
Housing and Community Development.
d. Transfer control of units to a nonprofit housing agency: Dedicate applicant -owned units to
nonprofit organizations in the same ratio and at the same income levels as required in
Section 2-3-4.
e. Transfer of credits for affordable units provided elsewhere in the City: If an applicant has
provided affordable housing above the required number of units, the excess units can be
used as credit for satisfaction of affordable housing requirements off-site or can be sold
to applicants who do not provide sufficient affordable units on-site, subject to the
Affordable Housing Credits Program guidelines outlined in Section 2-3-6 of this chapter
f. Provision of alternative housing: The applicant may propose to provide alternative
housing, such as special needs housing, single room occupancy hotels, or resident
shelters. The number of units, rooms, or beds provided in alternative housing shall be
credited on a one-to-one ratio to the total number of units required for the affordable
housing needs goal. The same ratio may be applied to alternative housing provided within
the planning area. To the degree Income I units are provided, a 1.6:1 credit is available.
Menu option items are designed to generate a value in furtherance of affordable housing
that is equivalent or comparable to the actual value of providing such housing in the
planning area as defined in Section 2-3-5 B 1.
g. Dedication of land for affordable housing: Transfer control of land to the City,
Redevelopment Agency, or a City -approved non-profit agency to be used for affordable
housing projects. The value of land dedication will be the same as the value of the number
of affordable units with income levels as defined in Section 2-3-4 which are not provided
in the proposed project. The value shall be calculated based on a City -approved appraisal
of the land. Menu option items are designed to generate a value in furtherance of
affordable housing that is equivalent or comparable to the actual value of providing such
housing in the planning area as defined in Section 2-3-5 B 1.
h. Other programs: Alternative programs which provide affordable housing in a manner not
specifically described above may be considered by the City provided the requirement of
Section 2-3-4 is met either through the provision of units or through the value of the
alternative. Multiple credits may be allowed if such programs provide affordable housing
in excess of the goals either in terms of the degree of affordability, in the amount of
affordable units or both. Such programs may be approved at the discretion of the City as
specified in an affordable housing implementation program. Menu option items are
designed to generate a value in furtherance of affordable housing that is equivalent or
comparable to the actual value of providing such housing in the planning area as defined
in Section 2-3-5 B 1.
(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
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Sec. 2-3-6. - Affordable housing credits guidelines.
A. Introduction. The purpose of the Affordable Credits ("Credits") Program is to promote the
construction of affordable housing units within the City by establishing a system of credits that can
be earned by applicants of residential projects which include higher percentages of affordable
units than are currently required by the City's Inclusionary Housing Program and in turn sold or
transferred to applicants of other residential projects.
Separate credit programs are established for the three categories of affordable homes (Income Levels
1/11, III and IV), so that a project can fulfill its affordable requirements on-site at one income level, while
using credits to cover its requirement at another income level. The City will maintain a database to
keep track of existing credits so that applicants of market -rate projects can be informed of the
availability of such credits.
Defined terms. The following defined terms are utilized in these guidelines:
Affordable housing credits agreement means an agreement required for any residential
development project that is involved in the purchase or sale of credits.
Affordable housing in -lieu fees means fees payable by an applicant of a market -rate project or a
mixed project with affordable shortfalls, in lieu of the actual construction of affordable units on the
project site.
Affordable project means a residential project that includes only affordable units.
Affordable unit means a residential dwelling unit that is affordable to and rented or sold to a
household with an income of below 120 percent of the County of Orange median income. An
affordable unit may be designated as falling into one of four income categories (Income Levels I—IV),
based on the highest household income that is qualified to purchase or rent that unit.
Agreement means an affordable housing credits agreement.
Applicant shall mean and, depending on context, shall include the owner(s), lessee(s) or developer
(s) of property, or their authorized agents, with regard to any application for residential property
development permits or approvals from the City of Irvine.
City means the City of Irvine.
County median income means the current median income in Orange County as determined by the
U.S. Department of Housing and Urban Development.
Credits means affordable housing credits.
Excess affordable units means the number of affordable units in a residential project that fall within
a given income level category that exceeds the required affordable component for that income level.
Income level I means a household income of not more than 30 percent of the county median
income, as adjusted for household size.
Income level II means a household income of over 30 percent but not more than 50 percent of the
county median income, as adjusted for household size.
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Income level 111 means a household income of over 50 percent but not more than 80 percent of the
county median income, as adjusted for household size.
Income level IV means a household income of over 80 percent but not more than 120 percent of
the county median income, as adjusted for household size.
In -lieu fees means affordable housing in -lieu fees.
Market -rate project means a residential project that only includes market -rate units.
Market -rate units mean residential dwelling units that are not affordable units.
Mixed project means a residential project that includes both affordable units and market -rate units.
Mixed project with excess affordables means a mixed project in which there are excess affordable
units at one or more income levels. (Please note that it is possible that a mixed project with excess
affordables for one income level category may have a shortage of affordable units at other income
level categories).
Mixed project with affordable shortfall means a mixed project in which there is a shortage of
affordable units at one or more income levels. (Please note that it is possible that a mixed project with
affordable shortfall at one income level category may have sufficient affordable units or excess
affordable units at other income level categories).
Program means the City Affordable Housing Credits Program.
Required affordable component means, for any residential project within the City, the percentages
of dwelling units that are required to be affordable to households in each of the three income level
categories listed below:
Income levels I and II: Five percent of project
Income level III: Five percent of project
Income level IV: Five percent of project
C. Guidelines. The Program shall be administered by the City according to the following guidelines:
An agreement must be executed prior to the issuance of building permits for those units in a
market -rate project or mixed project with affordable shortfall that will be satisfying their
required affordable component through the use of credits. The purchaser of credits, the seller
of credits and the city shall all be signatories to the agreement. The agreement shall state the
number of credits involved, and must identify the specific residential projects that will be
generating the credits and will be receiving the credits. Information on the purchase price or
payment arrangements for the credits shall not be required to be disclosed within the
agreement.
Affordable credits generated by excess affordable units shall become available for use by a
market -rate project or mixed project after:
(i) Building permits for the excess affordable units have been issued, and
(ii)
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The applicant of the affordable project or mixed project with excess affordables has
posted a bond to assure the construction of the excess affordable units or a certificate of
occupancy has been issued for the excess affordable units.
3. Separate affordable credits shall be issued for excess affordable units in each of the three
income level categories (i.e., income levels 1/11, III and IV).
4. Affordable projects and mixed projects that agree to satisfy the required affordable
component for one or more income level categories on-site shall not be required to pay in -lieu
fees or provide affordable credits for the income level categories anticipated to be provided
on-site. Said agreement will be enforced through a condition of the discretionary approval of
the project.
Until credits become available, even after the agreement is executed, the applicant of any
residential project that is not providing its required affordable component for a given income
level category on-site must pay in -lieu fees at the time of building permit issuance for any
market -rate units or affordable units not yet covered by credits for that income level category.
These in -lieu fees shall be reimbursed to the applicant of the market -rate project and/or the
mixed project, without interest, upon availability of the credits listed in the agreement (see
guideline #2).
One credit for any income level category shall release 19 dwelling units in a market -rate
project or a mixed project with affordable shortfall from their required affordable component
for that same income level category.
The following guidelines for granting credits and combining credits for affordable units are
summarized in table 1 below:
a. Units that are priced for, sold to and occupied by households in income level categories I,
II and III shall receive 2.0 Credits in the corresponding income category.
b. 1.6 income level 1/11 credits shall be granted for each rental excess affordable unit that
satisfies the income level I category requirement.
c. 3.2 income level 1/II credits shall be granted for excess affordable units that satisfy income
level I category requirements and are priced for, sold to and occupied by households in
the income level I category.
d. 1.4 income level II and III credits shall be granted in the corresponding income level
category for rental excess affordable units that include three bedrooms, and 1.6 income
level II and III credits shall be granted in the corresponding income level category for
rental excess affordable units that include four bedrooms.
e. 2.24 income level 1/11 credits shall be granted for rental excess affordable units in the
income level I category that include three bedrooms, and 2.56 income level 1/II credits
shall be granted for rental excess affordable units in the income level I category that
include four bedrooms.
f. 2.8 income level II and III credits shall be granted for excess affordable units in the
corresponding income level categories that include three bedrooms and are priced for,
sold to and occupied by households in the corresponding income level category.
g. 3.2 income level II and III credits shall be granted for excess affordable units in the
corresponding income level categories that include four bedrooms and are priced for,
sold to and occupied by households in the corresponding income level category.
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h. 4.48 income level 1/II credits shall be granted for excess affordable units in the income
level I category that includes three bedrooms and are priced for, sold to and occupied by
households in the income level I category.
i. 5.12 income level 1/II credits shall be granted for excess affordable units in income
category I that include four bedrooms and are priced for, sold to and occupied by
households in the income level I category.
8. All applicants of market -rate projects or mixed projects with affordable shortfalls utilizing the
program shall pay for their share of the administration costs related to the application of
credits to their project through hourly fees charged by the City. Any administrative costs not
covered by the hourly fees shall be paid to the City by the applicant of the market -rate project
or mixed project with affordable shortfall prior to the acceptance of the credits for the specific
project by the city.
9. Credits shall be assigned to applicants of affordable projects or mixed projects with excess
affordables, based on the guidelines listed above, for:
(i) The conversion of existing market -rate units to affordable units for a period of at least 30
years,
(ii) The extension of the term of affordability of existing affordable units by an additional 40
years, and
(iii) The construction of second units that meet the City's affordability guidelines.
Credits may be assigned to property owners and applicants in return for the dedication of
land for affordable housing use and the construction of special needs housing, with the
number of credits assigned based on the City's determination of the value of these types of
assistance.
10. Affordable projects or mixed projects with excess affordable that have received affordable
housing in -lieu fees from the City shall have their credits reduced based on the proportion of
their affordable units that have been fully or partially assisted with the affordable housing in -
lieu fees. The Director shall make all determinations regarding the number of affordable units
assisted in this manner.
11. A database shall be prepared and maintained by the City to keep track of the use and
availability of affordable credits within the City. A list of uncommitted excess affordable
credits shall also be kept on file by the City to be made available to applicants of market -rate
projects and mixed projects with affordable shortfalls who are interested in purchasing
Credits.
(Ord. No. 04-15, § 3, 12-14-04; Ord, No. 07-11, § 3, 4-24-07)
Sec. 2-3-7. - Role of financial and processing incentives.
Pursuant to the Housing Element, the purpose of financial and processing incentives is to bridge
the gap between the actual cost of construction of a market rate unit and the value of an affordable
unit. If financial incentives are not available for on-site construction of affordable units, satisfaction of
the affordable housing goal shall be achieved through the selection of alternatives in the menu options
outlined in this Section. Nothing herein is intended nor does it place any obligation on the City to
provide financial incentives or offset the cost of providing affordable housing as required by the
Housing Element.
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A. Financial incentives defined. Financial incentives mean monetary assistance to the project for
the purpose of subsidizing the cost of providing affordable units. The City, the Redevelopment
Agency or another public, private or non-profit source may provide financial assistance.
B. Processing incentives defined. Processing incentives are any changes to existing land use
policies which will increase the applicant's ability to provide affordable housing, such as
modifications for setbacks or building height, fee waivers, and density bonuses granted
according to Government Code regulations.
(Ord. No. 04-15, § 3, 12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-8. - Monitoring.
The applicant of an affordable housing development project shall comply with the program
monitoring guidelines set forth herein.
A. The applicant shall provide the City with an annual report detailing compliance with the
adopted affordable housing plan for the project.
B. Failure to comply with the terms of the adopted affordable housing plan may result in the
revocation of a conditional use permit for the project or similar exercises of the City's
enforcement powers.
(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-9. - Affordable housing plan requirements for planning areas.
When a project entails the development of an entire planning area, the applicant shall designate
the sites on which affordable housing units shall be developed. The designation of affordable housing
sites shall be made in conjunction with the submittal of the first subdivision map for the planning area.
The applicant may submit a site plan or a letter indicating the sites designated for affordable housing.
A. The affordable housing sites shall be distributed to prevent undue concentration of affordable
housing in any one area.
B. In order to expand the applicant's opportunities to obtain financial assistance for the provision
of affordable housing, a project with up to 100 percent affordability will be considered, and
may be approved, by the City. A project application offering to provide affordable housing in
excess of the requirements set forth in this Chapter, or the Housing Element, may only be
denied in accordance with the terms of Government Code Section 65589.5(d).
The owner(s) of any of the parcels indicated as a site for affordable housing shall be required to inform
any potential purchaser/applicant that this site is to be used to fulfill the City's affordable housing
requirements.
(Ord. No. 04-15, § 3,12-14-04; Ord. No. 07-11, § 3, 4-24-07)
Sec. 2-3-10. - Residential density bonus standards.
A. Purpose and Intent. The purpose of the provisions of this section is to comply with State Density
Bonus standards, which are intended to provide incentives for the production of housing for very
low income, low, and moderate income households, or senior households in accordance with
Sections 65915 through 65918 of the California Government Code, as may be amended from time
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to time or any successor density bonus statute. In enacting this Section, it is the intent of the City
of Irvine to facilitate the development of affordable housing and to implement the goals, objectives
and policies of the City's Housing Element.
B. Implementation, The City shall grant requests for a Density Bonus and Incentives as set forth in
Subsection 2-3-10(D), and in accordance with California Government Code Sections 65915-65918,
as may be amended from time to time or any successor density bonus statute.
C. Development Standards. Target Units should be constructed concurrently with Market Rate Units
unless both the City and the applicant agree within the Density Bonus Housing Agreement,
required pursuant to Subsection 2-3-10(F), to an alternative schedule for development.
In determining the maximum Affordable Rent or Affordable Sales Price of Target Units the following
household and unit size assumptions shall be used, unless the Housing Development is subject to
different assumptions imposed by other governmental regulations:
Target units should be built on-site wherever possible and, when practical, be dispersed within the
Housing Development. Where feasible, the number of bedrooms of the target units should be
equivalent to the bedroom mix of the market rate units of the Housing Development; except that the
applicant may include a larger proportion of target units with a higher bedroom counts. The design
and appearance of the target units shall be compatible with the design of the total Housing
Development. Housing Developments shall comply with all applicable development standards, except
those which may be modified as provided by this Subsection 2-3-10(D).
Circumstances may arise in which the public interest would be served by allowing some or all of the
target units associated with one Housing Development to be produced and operated at an alternative
development site. Where the applicant and the City form such an agreement, the resulting linked
developments shall be considered a single Housing Development for purposes of this Section. Under
these circumstances, the applicant shall be subject to the same requirements of this Section for the
target units to be provided on the alternative site.
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A density bonus housing agreement shall be made a condition of the discretionary planning permits
(e.g., tract maps, parcel maps, site plans, planned development or conditional use permits, etc.) for all
Housing Developments pursuant to this Section. The agreement shall be recorded as a restriction on
the parcel or parcels on which the target units will be constructed. The agreement shall be consistent
with Subsection 2-3-10(F).
D. Development incentives. Development incentives shall be granted by the City in accordance with
California Government Code Sections 65915-65918, as may be amended from time to time or any
successor density bonus statute.
Criteria that may be used to evaluate whether an incentive is sufficient to make the affordable units
economically feasible may include, but are not limited to, one or more of the following:
1. A development pro forma outlining the capital costs, operating expenses, return on
investment, revenues, loan -to -value ratio and the debt -coverage ration including the
contribution provided by any applicable subsidy programs, and the economic effect created
by the 30 -year use and income restrictions of the affordable housing units.
2. An appraisal report indicating the value of the density bonus and of the incentive(s) and of the
value of any other incentives.
3. Sources and use of funds statement identifying the projected financing gap of the project with
the affordable housing units that are the basis for granting the density bonus and incentive(s).
The applicant shall establish how much of the gap would be covered by the density bonus,
leaving a remainder figure to be covered by additional incentives.
Application requirements and review. An application pursuant to this Section shall be processed
concurrently with any other application(s) required for the Housing Division. Final approval or
disapproval of an application shall be made by the Planning Commission. The approval or
disapproval of the proposed development may be subject to the provisions of Government Code
Section 65589.5, which requires certain findings where the City proposes to:
1. Disapprove, or approve with conditions rendering the affordable housing development
infeasible, or
2. Disapprove, or approve at a lesser density, a housing development proposal which complies
with the applicable general plan, zoning, and development policies in effect at the time the
project's application is deemed complete.
F. Density bonus housing agreement. Applicants requesting a density bonus, shall (draft and) agree to
enter into a density bonus housing agreement with the City. The terms of the draft agreement
shall be reviewed and revised as appropriate by the director of redevelopment. Following
execution of the agreement by all parties, the completed density bonus housing agreement, or
memorandum thereof, shall be recorded and the resulting conditions filed and recorded on the
parcel or parcels designated for the construction of target units.
The approval and recordation shall take place prior to final map approval, or, where a map is not being
processed, prior to issuance of building permits for such parcels or units. The density bonus housing
agreement shall be binding to all future owners and successors in interest.
The density bonus housing agreement shall include at least the following:
1. The total number of units approved for the housing development, including the number of
target units,
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2. A description of the household income group to be accommodated by the housing
development, as outlined in Subsection 2-3-10(A) and the standards for determining the
corresponding affordable rent or affordable sales price and housing cost.
3. The location, unit sizes (square feet) and number of bedrooms of target units.
4. Tenure of use restrictions for target units of at least 30 years, in accordance with Government
Code Sections 65915-65918, as may be amended from time to time or any successor density
bonus statute.
5. A schedule for completion and occupancy of target units.
6. A description of the incentive(s) being provided by the City.
7. A description of remedies for breach of the agreement by either party (the City may identify
tenants or qualified purchasers as third party beneficiaries under the agreement).
8. Other provisions to ensure implementation and compliance with this section.
In the case of for -sale housing developments, the density bonus housing agreement shall provide for
the following conditions governing the initial sale and use of target units during the applicable use
restriction period:
1. Target units shall, upon initial sale, be sold to eligible very low, low or moderate income
households at an affordable sales price and housing cost, or to qualified residents (i.e.,
maintained as senior citizen housing) as defined in Government Code Sections 65915-65918,
as may be amended from time to time or any successor density bonus statute.
2. Target units shall be initially owner -occupied by eligible very low, low or moderate income
households, or by qualified residents in the case of senior citizen housing.
3. The initial purchaser of each target unit shall execute an instrument or agreement approved
bythe City restricting the sale of the target unit in accordance with this chapter during the
applicable use restriction period. Such instrument or agreement shall be recorded against the
parcel containing the target unit and shall contain such provisions as the City may require to
ensure continued compliance with this ordinance and the state density bonus law.
In the case of rental housing developments, the density bonus housing agreement shall provide for the
following conditions governing the use of target units during the use restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies,
and maintaining target units for qualified tenants;
2. Provisions requiring owners to verify tenant incomes and maintain books and records to
demonstrate compliance with this Section.
3. Provisions requiring owners to submit an annual report to the City, which includes the name,
address, and income of each person occupying target units, and which identifies the bedroom
size and monthly rent or cost of each target unit.
In the case of housing developments that utilize the density bonus provisions associated with child
care facilities, the applicant shall comply with Government Code Sections 65915-65918, as may be
amended from time to time or any successor density bonus statute.
(Ord. No. 04-16, § 3, 12-14-04; Ord. No. 07-11, § 3, 4-24-07)
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CITY OF SANTA ANA
ARTICLE WILL - HOUSING OPPORTUNITY ORDINANCE
Sec. 41-1900. - Purpose.
Page 1 of 8
This article establishes standards and procedures to encourage the development of housing that is
affordable to a range of households with varying income levels. The purpose of this article is to
encourage the development and availability of affordable housing by requiring the inclusion of
affordable housing units within developments that involve an increase in the density otherwise
available under applicable zoning and development standards; a change in land use designation from
a zoning regulation that does not permit residential uses to one that does permit residential uses; or
the conversion of rental units to condominium ownership.
(Ord. No. NS -2825, § 2, 11-28-11)
Sec. 41-1901. - Definitions.
As used in this article, the following terms shall have the following meanings:
Adjusted for household size appropriate for the unit means a household of one (1) person in the case
of a studio unit, two (2) persons in the case of a one -bedroom unit, three (3) persons in the case of a
two-bedroom unit, four (4) persons in the case of a three-bedroom unit, and five (5) persons in the
case of a four-bedroom unit.
Affordable housingcost means the total housing costs paid by a qualifying household, which shall
not exceed the fraction of gross income specified, as follows, in accordance with Sections 50052.5 and
50053 of the Health & Safety Code:
Very low-income households. Thirty (30) per cent of the income of a household earning fifty (50) per
cent of the Orange County median income adjusted for family size appropriate for the unit.
Low-income households. Thirty (30) per cent of the income of a household earning seventy (70) per
cent of the Orange County median income for for -sale units, and thirty (30) per cent of the income
of a household earning sixty (60) per cent of the Orange County median income for rental units,
adjusted in either case for family size appropriate for the unit.
Moderate income households. Thirty-five (35) per cent of the income of a household earning one
hundred ten (110) per cent of the Orange County median income for for -sale units, and thirty (30)
per cent of the income of a household earning one hundred ten (110) per cent of the Orange
County median income for rental units, adjusted in either case for family size appropriate for the
unit.
In the event of a conflict between the fractions specified in this definition and those found in
Sections 50052.5 and 50053 of the Health & Safety Code, the fractions specified by state law shall
control.
Administrative procedures means those regulations promulgated by the executive director pursuant
to section 41-1910 of this article.
Developer means any association, corporation, firm, joint venture, partnership, person, or any
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entity or combination of entities, which seeks city approval for all or part of a Residential Project.
Executive director means the executive director of community development for the city.
Inclusionary housing agreement means a legally binding agreement between the developer and the
city, in a form and substance satisfactory to the executive director and the city attorney, and containing
those provisions necessary to ensure that the requirements of this article are satisfied, whether
through the provision of inclusionary units or through an approved alternative method.
Inclusionary housing fund means the fund created by the city in which all fees collected in
compliance with this article shall be deposited.
Inclusionary housing plan means the plan submitted bythe developer, in a form specified by the
executive director, detailing how the provisions of this article will be implemented forthe proposed
residential project.
Inclusionary unit means a dwelling unit that will be offered for sale or rent to low or moderate -
income households, at an affordable housing cost, in compliance with this article.
Low-income households means 'lower income households" as that term is defined by Section
50079.5 of the Health & Safety Code.
Low-income units, moderate -income units, and very low-income units means inclusionary units
restricted to occupancy by low, moderate, or very low-income households, respectively, at an
affordable housing cost.
Market rate units means dwelling units in a residential project that are not inclusionary units.
Moderate -income households means "persons and families of low or moderate income" as that
term is defined by Section 50093 of the Health & Safety Code.
Regulatory agreement means an agreement entered into between the city or the Santa Ana
Community Redevelopment Agency and a developer by which the developer covenants to keep certain
housing units at an affordable housing cost for a specified period of time.
Residential project means any of the following:
A subdivision resulting in the creation of five (5) or more residential lots or residential
condominium units; or
The new construction of a project consisting of five (5) or more multi -family units; or
The new construction of five (5) or more separate houses or dwelling units; or
The conversion of five (5) or more rental units to condominium ownership.
Total housing costs mean the total monthly or annual recurring expenses required of a household
to obtain shelter. For a rental unit, total housing costs shall include the monthly rent payment and
utilities paid by the tenant (excluding telephone and television). For an ownership unit, total housing
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costs shall include the mortgage payment (principal and interest), insurance, homeowners' association
dues (if applicable), private mortgage insurance (if applicable), taxes, utilities, an allowance for
maintenance and any other related assessments.
Very low-income households means "very low income households" as that term is defined by
Section 50105 of the Health & Safety Code.
(Ord. No. NS -2825, § 3, 11-28-11)
Sec. 41-1902. -Applicability and inclusionary unit requirements.
(a) Zone changes. The requirements of this article shall apply to any residential project located within a
zone that has been changed to allow for residential uses where such uses were not previously
allowed, or where the zone change allows an increase to the existing residential density permitted
by the zoning in place as of the effective date of the ordinance from which this article derives.
(b) Applications. The requirements of this article shall apply to any residential project proposed in
connection with an application to do any of the following:
(1) Increase the permitted residential density of the subject property above the density permitted
by applicable zoning at the time of the application.
(2) Increase the permitted percentage of residential development allowed for a mixed-use
development above the percentage at the time of the application.
(3) Convert commercial or industrial land to residential uses; including, but not limited to, the
conversion of a hotel to residential use.
(4) Approval of an overlay zone site plan permitting residential land uses pursuant to division 28
of this chapter.
(5) Convert rental units to condominium ownership.
(c) Units forsole. If the residential project consists of units for sale, then a minimum of fifteen (15) per
cent of the total number of units in the project shall be sold to moderate -income households, or
lower.
(d) Rental units. If the residential project consists of rental units, then a minimum of fifteen (15) per
cent of the units shall be rented to low or very low-income households.
(e) Allowable credits. The inclusionary unit requirements of this section may be reduced at the
discretion of the executive director if a greater level of affordability is provided.
(f) Rounding of quantities in calculations. In calculating the required number of inclusionary units,
fractional units shall be rounded -up to the next whole unit. The developer may choose to pay an
in -lieu fee set forth in subsection 41-1904(c) for the fractional units, which shall be calculated
based on a percentage of the per unit cost.
(g) Displacement of existing inclusionary units. Notwithstanding any other provision of this article, any
residential project subject to this article that results in the displacement of very low, low, and/or
moderate income household(s) shall be required to provide on-site inclusionary units as required
by this article.
(h) [Compliance with article.]All inclusionary units required by this article shall be sold or rented in
compliance with this article.
(Ord. No. NS -2825, § 4,11-28-11)
Sec. 41-1903. - Exempt projects.
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The following are exempt from the requirements of this article:
(a) Applications deemed complete. A residential project for which a development application has
been deemed complete prior to December 29, 2011.
(b) Development agreements. A residential project that is the subject of a development agreement
under applicable provisions of the California Government Code that expressly provides for an
exclusion to this article or provides for a different amount of inclusionary units from that
specified by this article.
(c) Project with regulatory agreement. A residential project for which a regulatory agreement has
been approved, provided that the regulatory agreement is effective at the time the residential
project would otherwise be required to comply with the requirements of this article, and there
is no uncured breach of the regulatory agreement before issuance of a certificate of
occupancy for the project. This may include a residential project that has obtained a density
bonus under article XVII of this chapter.
(Ord. No. NS -2825, § 5,11-28-11)
Sec. 41-1904. - Alternatives.
(a) On site units. The primary means of complying with the inclusionary requirements of this article
shall be the provision of on-site inclusionary units in accordance with section 41-1901 above. A
developer may only satisfy the requirements of this article by means of an alternative to on-site
inclusionary units in accordance with the requirements and procedures of this section.
(b) Off-site units. Upon application by the developer and at the discretion of the city council, the
developer may satisfy the inclusionary unit requirements for the project, in whole or in part, by
constructing a mix of affordable units or substantially rehabilitating existing rental units. For
purposes of providing off-site units, substantially rehabilitating means rehabilitating a dwelling
unit that has substantial building and other code violations, and has been vacant for at least ninety
(90) days, such that the unit is returned to the city's housing supply as decent, safe and sanitary
housing, and the cost of the work exceeds twenty-five (25) per cent of the market value of the unit
after rehabilitation. The number of substantially rehabilitated units that will be required under the
off-site unit provision will be determined based on a calculation of the affordability gap associated
with on-site provision of the units. This affordability gap will then be translated into the number of
off-site units that can be produced at a financial gap equal to the affordability gap associated with
on-site provision of the units.
(c) In -lieu fee.
(1) Twenty (20) or fewer units. In the case of a residential project containing between five (5) and
twenty (20) residential lots or residential units, the developer may elect to satisfy the
inclusionary unit requirements for the project, in whole or in part, by payment of a fee in lieu
of constructing some or all of the required units.
(2) More than twenty (20) units. In the case of a residential project comprised of more than twenty
(20) residential lots or residential units, the developer may apply to pay a fee in lieu of
constructing some or all of the required units, and such application shall be subject to the
review and approval of the city council, which may grant such the developer's request if
substantial evidence supports a finding that the cost of providing inclusionary units on-site
would substantially exceed the amount of the applicable in -lieu fee.
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(3) Calculation of fee. The amount of the fees allowed by this section shall be calculated in
accordance with the methodology to be set forth in the administrative procedures. The
calculation methodology is based on the affordability gap associated with fulfilling the
required affordable housing units on site within the proposed residential project.
(4) Timing of payment. The developer shall pay any in -lieu fees allowed by this section in full
before issuance of a building permit for any portion of the residential project, including any
non-residential portions of a mixed-use development.
(5) Inclusionary housing fund. Fees collected in compliance with this section shall be deposited in
the inclusionary housing fund.
(Ord. No. NS -2825, § 6,11-28-11)
Sec. 41-1905. - Housing plan and housing agreement.
(a) Submittal and execution. The developer shall comply with the following requirements.
(1) Inclusionary housing plan. The developer shall submit an inclusionary housing plan, in a form
specified by the executive director, detailing how the provisions of this article will be
implemented for the proposed residential project. If the inclusionary housing plan includes
alternatives to on-site units that require the approval of the city council, then the inclusionary
housing plan shall be subject to the review and approval of the city council. All other
inclusionary housing plans shall be subject to the approval of the executive director, subject tc
appeal to the city council. Any such appeal shall be filed within fifteen (15) days of the decision
of the executive director.
(2) Inclusionary housing agreement. The developer shall execute and cause to be recorded an
inclusionary housing agreement. The inclusionary housing agreement shall be a legally
binding agreement between the developer and the city, in a form and substance satisfactory
to the executive director and the city attorney, and containing those provisions necessary to
ensure that the requirements of this article are satisfied, whether through the provision of
inclusionary units or through an approved alternative method.
(b) Discretionary approvals. No discretionary approval shall be issued for a residential project subject
to this article until the developer has submitted an inclusionary housing plan.
(c) Issuance of building permit. No building permit shall be issued for a residential project subject to
this article unless the executive director has approved the inclusionary housing plan, and any
required inclusionary housing agreement has been recorded.
(d) Issuance of certificate of occupancy. A certificate of occupancy shall not be issued for a residential
project subject to this article unless the approved inclusionary housing plan has been fully
implemented.
(Ord. No. NS -2825, § 7, 11-28-11)
Sec. 41-1906. - Standards.
(a) Location within project, relationship to non -inclusionary units. All inclusionary units shall be:
(1) Reasonably dispersed throughout the residential project;
(2) Proportional, in number of bedrooms, and location, to the market rate units;
(3) Comparable to the market rate units included in the residential project in terms of design,
materials, finished quality, and appearance; and
(4) Permitted the same access to project amenities and recreational facilities, as are market rate
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units.
(b) Timing of construction. All inclusionary units in a residential project shall be constructed concurrent
with, or before the construction of the market rate units. If the city approves a phased project, a
proportional share of the required inclusionary units shall be provided within each phase of the
residential project.
(c) Units forsale,
(1) Time limit for inclusionary restrictions. A unit for sale shall be restricted to the target income
level group at the applicable affordable housing cost for a minimum of forty-five (45) years.
(2) Certification of purchasers. The developer and all subsequent owners of an inclusionary unit
offered for sale shall certify, on a form provided by the city, the income of the purchaser.
(3) Resale price control. In order to maintain the availability of inclusionary units required by this
article, the resale price of an owner occupied inclusionary unit shall be limited to the lesser of
the fair market value of the unit as established by a licensed real estate agent based upon
three (3) comparable properties or the restricted resale price. For these purposes, the
restricted resale price shall be the applicable affordable housing cost.
(4) Inheritance of inclusionary units. Upon the death of an owner of an owner -occupied
inclusionary unit, title in the property may transfer to the surviving joint tenant or heir (in the
case of the death of a sole owner or all owners of the household).
(5) Forfeiture. If an inclusionary unit for sale is sold for an amount in excess of the resale price
controls required by this section, the buyer and the seller shall be jointly and severally liable
to the city for the entire purchase price of the unit. Recovered funds shall be deposited into
the inclusionary housing fund. Notwithstanding the foregoing, it shall be within the discretion
of the executive director to allow the buyer and seller to cure any violation of the resale price
controls within one hundred eighty (180) days.
(d) Rental units.
(1) Time limit for inclusionary restrictions. A rental unit shall remain restricted to the target income
level group at the applicable affordable housing cost for fifty-five (55) years.
(2) Certification of renters. The owner of any rental inclusionary units shall certify, on a form
provided by the city, the income of all members of the household above the age of eighteen
(18) at the time of the initial rental and annually thereafter.
(3) Forfeiture. Any lessor who leases an inclusionary unit in violation of this article shall be
required to forfeit to the city all money so obtained. Recovered funds shall be deposited into
the inclusionary housing fund.
(e) (Execution and recording of documents.] The executive director may require the execution and
recording of whatever documents are required to ensure enforcement of this section; including
but not limited to promissory notes, deeds of trust, resale restrictions, rights of first refusal,
options to purchase, and/or other documents, which shall be recorded against all inclusionary
units.
(f) General prohibitions.
(1) No person shall sell or rent an inclusionary unit at a price or rent in excess of the maximum
amount allowed by any restriction placed on the unit in accordance with this article.
(2) No person shall sell or rent an inclusionary unit to a person or persons that do not meet the
income restrictions placed on the unit in accordance with this article.
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(3) No person shall provide false or materially incomplete information to the city or to a seller or
lessor of an inclusionary unit to obtain occupancy of housing for which that person is not
eligible.
(g) Principal residency requirement.
(1) The owner or lessee of an inclusionary unit shall reside in the unit for not less than ten (10)
out of every twelve (12) months.
(2) No owner or lessee of an inclusionary unit shall lease or sublease, as applicable, an
inclusionary unit without the prior permission of the executive director.
(Ord. No. NS -2825, § 8, 11-28-11)
Sec. 41-1907. - Takings determination.
(a) Determination of a taking of property without just compensation. In accordance with the procedures
provided by this section, a developer may request a determination as to whether the
requirements of this article, taken together with the inclusionary incentives as applied to the
residential project, would constitute a taking of property without just compensation under the
California or Federal Constitutions.
(1) The developer may request the executive director to make a takings determination within
fifteen (15) days of approval or disapproval of the inclusionary housing plan. The developer
may file an appeal of the takings determination of the executive director within fifteen (15)
calendar days after the date of the decision. Any appeal shall be subject to the provisions of
chapter 3 of this Code.
(2) Reserved.
(b) Presumption of facts. In making the takings determination, the executive director, shall presume
each of the following facts:
(1) Application of requirements. Application of the inclusionary housing requirement to the
residential project;
(2) Incentives. Application and utilization of all density bonuses and incentives available under
state and local law;
(3) Product type. Utilization of the most cost-efficient product type for the inclusionary units that
would meet the standards of this article; and
(4) External funding. The reasonable availability of external funding.
(c) Modifications to reduce obligations. If it is determined that the application of the provisions of this
article would be a taking, the inclusionary housing plan shall be modified to reduce the obligations
in the inclusionary housing component to the extent, and only to the extent necessary, to avoid a
taking. If it is determined no taking would occur through application of this article to the residential
project, the requirements of this article remain applicable.
(Ord. No. NS -2825, § 9,11-28-11)
Sec. 41-1908. - Enforcement.
(a) (ViolationjAnyviolation of this article constitutes a misdemeanor.
(b) Forfeiture of funds. Any individual who sells or rents an inclusionary unit in violation of this article
shall be required to forfeit all money so obtained. Recovered funds shall be deposited into the
inclusionary housing fund.
(c) Legal actions. The city may institute any appropriate legal actions or proceedings necessary to
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ensure compliance with this article, including actions:
(1) To disapprove, revoke, or suspend any permit, including a building permit, certificate of
occupancy, or discretionary approval; and
(2) For injunctive relief or damages.
(d) Recovery of costs. In any action to enforce this article, or an inclusionary housing agreement
recorded hereunder, the city shall be entitled to recover its reasonable attorney's fees and costs.
(Ord. No. NS -2825, § 10, 11-28-11)
Sec. 41-1909. - Inclusionary housing fund.
(a) Inclusionary housing fund. There is hereby established a separate fund of the city, to be known as
the inclusionary housing fund. All monies collected pursuant to this article shall be deposited in
the inclusionary housing fund. Additional monies from other sources may be deposited in the
inclusionary housing fund. The monies deposited in the inclusionary housing fund shall be subject
to the following conditions:
(1) Monies deposited into the inclusionary housing fund must be used to increase and improve
the supply of housing affordable to moderate, low and very low income households in the
city. Monies may also be used to cover reasonable administrative or related expenses
associated with the administration of this article.
(2) The fund shall be administered by the executive director, or his or her designee, who may
develop procedures to implement the purposes of the inclusionary housing fund consistent
with the requirements of this article and any adopted budget of the city.
(3) Monies deposited in accordance with this section shall be used in accordance with the city's
housing element, redevelopment plan, consolidated plan, or subsequent plan adopted by the
city council to construct, rehabilitate, or subsidize affordable housing or assist other
government entities, private organizations, or individuals to do so. Permissible uses include,
but are not limited to, assistance to housing development corporations, equity participation
loans, grants, pre -home ownership co -investment, pre -development loan funds, participation
leases, or other public-private partnership arrangements. The inclusionary housing fund may
be used for the benefit of both rental and owner -occupied housing.
(Ord. No. NS -2825, § 11, 11-28-11)
Sec. 41-1910. - Administrative.
(a) Fees. The council may by resolution establish reasonable fees and deposits for the administration
of this article.
(b) Administrative procedures. The city manager is hereby authorized and directed to promulgate
administrative procedures for the implementation of this article.
(Ord. No. NS -2825, § 12, 11-28-11)
Secs. 41-1911-41-1999. - Reserved.
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