The City of Santa Rosa declares that the provision of housing
in a suitable living environment for all residents is a priority of
the highest order and is consistent with State, regional and national
policies. The goal of the City is to achieve a balanced community
with housing available for persons of all income levels. There exists
within the City a shortage of housing that is affordable to households
of lower and moderate incomes. Federal and State housing finance subsidy
programs are not sufficient by themselves to satisfy these income
housing needs. The City finds that the housing shortage for households
of lower and moderate income is detrimental to the public health,
safety and welfare and, further, that it is a public purpose of the
City to seek assistance and cooperation from the private sector in
making available an adequate supply of housing for persons of all
economic segments of the community.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
The purpose of this chapter is to enhance the public welfare
and assure the compatibility between future housing development and
the housing element of the Santa Rosa general plan through increasing
the production of housing units affordable to households of lower
and moderate incomes. It is the purpose of this chapter to meet Santa
Rosa general plan goals to expand the supply of housing available
to lower and moderate-income households.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
means a legally binding agreement between an applicant and
the Housing Authority to ensure continued affordability of allocated
units is maintained in accordance with this chapter.
means the maximum monthly rent an owner may charge for an
allocated unit in accordance with Section 50053.b of the California
Health and Safety Code, less the appropriate allowance for utilities.
means a newly constructed "for-rent" or "for-sale" dwelling
unit which is: (1) provided by a developer under the provisions of
this chapter; (2) to be made available and occupied by a household
of lower or moderate income, as required under the provisions of this
chapter; (3) subject to occupancy and affordable rent or sales price
controls for a period of not less than 55 years; (4) compatible with
the design of other units in the residential housing development of
which it is part in terms of exterior appearance, materials and quality
finish; and (5) a similar unit type and bedroom mix to the overall
residential development.
means all new development projects and expansion of gross
square footage to existing building that is not residential development
as defined in this section.
means the fee assessed on commercial development to help
off-set the impact of the additional demand for affordable housing
caused by such activity.
means a facility, place or building which is maintained and
operated, subject to licensing by the California Department of Social
Services, to provide nonmedical residential care, which may include
home finding and other services, for children and/or adults, including:
the physically handicapped; mentally impaired, mentally disordered,
or incompetent; developmentally disabled; court wards and dependents;
neglected or emotionally disturbed children; the addicted; the aged.
Community care facility includes a continuing care and retirement
community.
means a site or construction condition, including, but not
limited to, height limits, required setbacks, maximum floor area ratio,
on-site open-space requirement, or required parking that applies to
a residential development pursuant to any ordinance, General Plan,
Specific Plan, charter, or other local condition, law, policy, resolution,
or regulation.
means the area encompassed by the Downtown Station Area Specific
Plan and the Downtown Core as identified by the Santa Rosa General
Plan (see Figure 1-1).
 Figure 1-1: Downtown Station Area Specific Plan Boundaries
(College Avenue to the north, E Street to the east, Sebastopol Road
and Highway 12 to the south, and Dutton Avenue and Imwalle Gardens
to the west), and Downtown Core Boundaries (College Avenue to the
north, Brookwood Avenue to the east, the properties on the west side
of the railroad tracks to the west, and Sonoma Avenue to the south).
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means a facility, place or building other than a hospital
which is maintained and operated as a residence for patients and to
provide long-term medical care. Includes nursing homes, intermediate
care facilities, extended care facilities, hospice homes, and similar
facilities which are licensed by the California State Department of
Health Services, and defined in Health and Safety Code, Section 1200,
et seq. May include a lab, radiology, pharmacy, rehabilitation, and
other similar services as accessory uses.
means the not-for-profit public entity, responsible for ensuring
adequate, decent, safe and sanitary housing for qualified people with
limited income within Santa Rosa consistent with Federal, State and
local laws and which is involved in administering programs designed
to develop affordable housing, provide Federal rental subsidy, and
various other programs to benefit Santa Rosa residents with limited
income.
means a fee paid as an alternative to providing an allocated
unit or a fraction of an allocated unit.
means a household whose gross income does not exceed 80%
of the area median income for the Santa Rosa Metropolitan Area, adjusted
for family size, as published and periodically updated by the State
Department of Housing and Community Development pursuant to Section
50079.5 of the California Health and Safety Code.
means a household whose gross income does not exceed 50%
of the area median income for the Santa Rosa Metropolitan Area, adjusted
for family size, as published and periodically updated by the State
Department of Housing and Community Development pursuant to Section
50105 of the California Health and Safety Code.
is a general term which refers to households whose gross
income falls under the categories of very low or low income as those
terms are defined in this section.
means a household whose gross income does not exceed 120%
of the area median income for the Santa Rosa Metropolitan Area, adjusted
for family size, as published and periodically updated by the State
Department of Housing and Community Development pursuant to Sections
50079.5 and 50052.5 of the California Health and Safety Code.
means an individual who obtains a building permit to construct
a single dwelling unit on a single lot as his or her residence and
who may not be issued another residential building permit as an "owner/builder"
for a period of five years following the issuance of such a permit
and the completion of construction of the dwelling unit authorized
thereunder.
means a project containing at least one residential unit,
including mixed use developments. For the purposes of this chapter,
"residential development" also includes projects defined in California
Government Code Section 65915(i), including a subdivision or Common
Interest Development, as defined in Section 4100 of the California
Civil Code, approved by a City 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 California Government Code Section
65863.4, where the result of the rehabilitation would be a net increase
in available residential units.
means the individual or official City body (Planning and
Economic Development Director, Housing and Community Services Director,
Zoning Administrator, Design Review Board, Planning Commission, City
Council) which has the responsibility and authority to review, and
approve or disapprove, applications for land use entitlements.
is a residential building including units with living space
with a minimum floor area of 150 square feet and a maximum of 400
square feet restricted to occupancy by no more than two persons. Kitchen
and bathroom facilities may be wholly or partially included in each
living space or may be fully shared.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
The inclusionary requirements of this chapter apply to all residential
developments within the City, including the residential component
of mixed-use developments.
(B)
The commercial linkage fee of this chapter applies to all commercial
development projects as defined in Section 21-02.030.D, unless listed
as exempt under Section 21-02.080.B.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
Except those development projects complying with this chapter in an alternative manner consistent with Section 21-02.070, all residential or mixed use development projects shall pay a housing impact fee, per Section 21-02.090, or construct on-site allocated units as follows:
(1)
For-rent residential development projects shall provide at least
8% of the total number of new dwelling units as affordable to low
income households or at least 5% of the total number of new dwelling
units as affordable to very low income households.
(2)
For-sale residential development projects shall provide at least
10% of the total number of new dwelling units as affordable to moderate
income households.
(B)
Notwithstanding the inclusionary requirements of subsection A, all multifamily residential or mixed use development projects located in the Downtown shall pay a housing impact fee, per Section 21-02.090, or construct on-site allocated units as follows:
(1)
For-rent multifamily residential development projects shall provide
at least four percent of the total number of new dwelling units as
affordable to low income households or at least three percent of the
total number of new dwelling units as affordable to very low income
households.
(2)
For-sale multifamily residential development projects shall provide
at least five percent of the total number of new dwelling units as
affordable to moderate income households.
Multifamily residential or mixed-use development projects with six or fewer units shall pay a housing impact fee as noted in Section 21-02.090.
(C)
Residential or mixed-use development projects with six or fewer units shall pay a housing impact fee as noted in Section 21-02.090.
(D)
Each allocated unit shall be subject to a recorded affordability
agreement at the targeted income level for a term of at least 55 years.
The Director of the Department of Housing and Community Services or
a designee is authorized to make the calculation, in each instance,
of the affordable rent or housing cost.
(E)
For a fractional unit requirement of 0.5 and above, the fraction
will be rounded up to the next larger integer and treated as a whole
unit.
(F)
If a proposed residential development project would result in the
elimination of existing deed restricted affordable housing units,
the affordable units must be replaced on a one-for-one basis with
equally affordable deed restricted units.
(Ord. 2019-015 § 1; Ord. 3998 § 2, 2012)
A residential applicant proposing allocated units consistent with Section 21-02.050(C) which also applies for a density bonus consistent with Chapter 20-31 of this Code, may count units affordable to lower or moderate-income house-holds toward both requirements. Additional units allowed by the density bonus shall not be included in the total project units when determining the proportion of required allocated units in a residential development.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1; Ord. 2019-025 § 1)
Alternatives to provision of on-site allocated units or payment of the housing impact fee in accordance with Section 21-02.050 include provision of allocated units off site, dedication or conveyance of land, conversion of market rate units to affordable, preservation of at-risk housing, use of inclusionary credits, or other innovative approaches. All alternative compliance measures must produce at least the same number and affordability of units that would have been provided on site, and are subject to review and approval by the Director of Planning and Economic Development.
(A)
Allocated units provided off site. A residential applicant may provide
allocated units off site ("off-site units").
(1)
Allocated units provided off-site must be located in the same quadrant
of the City as the unallocated units of the development, unless the
Director of Planning and Economic Development makes a determination
that locating the off-site units in a different quadrant would better
serve the General Plan Housing goals of the City. The quadrants of
the City are formed by the intersection of Highway 101 and Santa Rosa
Creek.
(2)
As part of the application submittal materials, the applicant shall
submit evidence that the applicant owns, or has an irrevocable option
to purchase, the site where the off-site allocated units are proposed
to be located.
(3)
Allocated units provided off site may not be the recipient of any
City or Housing Authority financing or subsidy.
(B)
Land dedication or conveyance alternative. A residential applicant
may offer to dedicate or convey land to the City, situated on site
or off site.
(1)
Land offered under this section must be within the City's boundaries
and must be designated for a general plan land use which allows multifamily
units.
(2)
The applicant shall provide an analysis which demonstrates that the
land offered is suitable for affordable housing development in terms
of size; location; general plan land use designation; availability
of sewer, water and transit services; absence of toxics; absence of
environmental constraints; site characteristics and surroundings.
Staff will recommend to the review authority whether the dedication
should be accepted.
(3)
The applicant shall also submit evidence that the applicant owns,
or has an irrevocable option to purchase, the site proposed for dedication
or conveyance.
(4)
Land conveyed under this section shall be used for the development
of affordable housing for households of lower income.
(5)
Land shall be identified and offered for dedication or conveyance
at the time of development application submittal. If the offer is
accepted by the review authority, the land must be donated to the
City no later than the date of approval of the final subdivision map,
parcel map or housing development application, and must have all the
permits and approvals, other than building permits, necessary for
development with the required number of affordable units.
(C)
Impaction determination. Each site proposed to be dedicated or conveyed
to the City for construction of affordable units or proposed for one
or more off-site allocated units shall be evaluated as to whether
the placement of such units will overly impact an area with lower
income units. If the site is within 1,000 feet of one or more existing
or approved developments in which more than 50% of the units are,
or will be, restricted to occupancy by households of lower incomes,
impaction shall be found, unless the existing or approved development
is located Downtown. The review authority may override a determination
of impaction by making findings that local schools, services and adjacent
uses will not be negatively impacted by the construction of allocated
or affordable units at the proposed site.
(D)
Conversion of market rate units to affordable. A residential applicant
may propose to convert existing market rate units to affordable units
in an amount equal to or greater than the required on-site inclusionary
housing requirement, including any needed rehabilitation to ensure
compliance with building, health and safety standards.
(E)
Preservation of at-risk housing. A residential applicant may offer
to purchase long term affordability covenants on an existing deed
restricted affordable housing project at imminent risk of contract
termination and conversion to market rate housing.
(F)
Credit for additional affordable units. If an applicant completes
construction on a site of a greater number of affordable units than
required by this chapter, the additional units may be credited towards
meeting the requirements of this chapter for a future project. The
applicant may use credits in a future project or transfer the credits
in writing to another developer. Credits will only be counted toward
required affordable units with the same bedroom count, the same tenure
(rental or ownership), and required affordability targets. The credits
must be used within 10 years of issuance. Projects which have received
a density bonus or which receive a government subsidy in any form,
financial or other, shall not be eligible for credits.
(G)
Innovation encouraged. Innovative alternatives to providing affordable
housing not outlined in this chapter shall be evaluated by staff and
considered on a case-by-case basis. Substitute programs shall be permitted
providing, at the recommendation of staff and determination of the
review authority that the objectives of the inclusionary housing ordinance
are being met with the alternate proposal.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
The following residential developments are exempt from the inclusionary requirements (Section 21-02.050) of this chapter:
(1)
The construction of a dwelling unit to replace a previously existing
dwelling unit situated on the same lot if the previous dwelling was
demolished or destroyed within five years of the date the building
permit application for the replacement unit is submitted to the Department
of Planning and Economic Development.
(2)
The construction of homeless shelters, community care and health
care facilities, single room occupancy units and units which, under
agreement with the City or a City agency, are only available for occupancy
by lower or moderate income households at affordable rents or affordable
sales prices for a period of not less than 55 years.
(3)
The construction of accessory dwelling units.
(4)
A unit constructed under a building permit issued to an owner/builder.
(B)
The following commercial developments are exempt from the commercial linkage fee requirements (Section 21-02.090(B)) of this chapter:
(1)
Mixed-use projects consisting of two stories or more of residential
over commercial space.
(2)
Any commercial development project being constructed by or on behalf
of a government or public institution such as a school, museum or
other such community use projects.
(3)
The construction of homeless shelters, community care and health
care facilities, single room occupancy units and units which, under
agreement with the City or a City agency, are only available for occupancy
by lower or moderate income households at affordable rents or affordable
sales prices for a period of not less than 55 years.
(4)
Public and private childcare facilities.
(5)
Churches.
(6)
Reconstruction of any building that was destroyed by fire, flood,
earthquake or other act of nature, so long as the square footage does
not exceed the square footage before the loss.
(7)
Replacement for commercial use gross floor area previously on the
site but demolished within one year prior to the filing of a complete
application for the new construction.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
Housing impact fee.
(1)
Residential development projects shall be assessed a housing impact fee as an alternative to provision of on-site allocated units in accordance with Section 21-02.050.
(2)
The City Council, by resolution, shall establish the amounts and
calculation of the housing impact fee. The fee for a for-rent unit
shall be paid no later than prior to the final inspection for each
unit in a residential project; payment for a for-sale unit shall be
no later than the close of escrow or one-year following the final
inspection, whichever is sooner. The fee for rental and for-sale units
shall be adjusted annually in July based on the percentage change
in the Bureau of Labor Statistics San Francisco/Oakland/San Jose Consumer
Price Index – All Urban Consumers (CPI-U).
(3)
All housing impact fees paid under this chapter shall be paid to
the City and shall be used by the City's Housing Authority only for
the development of housing situated within the City limits that is
affordable to households of lower and moderate incomes, including,
but not limited to, the acquisition of property, costs of construction,
including costs associated with planning, administration and design,
as well as actual building or installation costs, and program administration.
Housing assisted with housing impact fees shall be subject to a minimum
55-year affordability agreement with the Housing Authority.
(4)
Housing impact fees paid by projects located Downtown shall be utilized
for development of housing affordable to households of lower and moderate
incomes and proposed to be located Downtown, as possible. If no such
developments are proposed by July 1st of the second year after the
date these funds are paid to the Housing Authority, the fees may be
utilized for the development of lower income units outside of Downtown.
(B)
Commercial linkage fee.
(1)
Commercial development shall be assessed a commercial linkage fee
to mitigate the impact of the additional demand for affordable housing
caused by such activity.
(2)
The City Council, by resolution, shall establish the amounts and
calculation of the commercial linkage fee that shall be assessed on
new commercial development, as required by this subsection. The fee
shall be based on the rate in effect at the time the building permit
application is submitted, and the fee is due at or before building
permit issuance. If a building permit is not required, the fee shall
be based on the rate in effect at the time of Business Tax Certificate
application. Fees are due at or before certificate issuance. The fee
shall be adjusted annually in July based on the percentage change
in the Bureau of Labor Statistics San Francisco/Oakland/San Jose Consumer
Price Index – All Urban Consumers (CPI-U).
(3)
All commercial linkage fees paid under this chapter shall be paid
to the City and shall be used by the City's Housing Authority only
for the development of housing situated within the City limits that
is affordable to households of lower and moderate incomes, including,
but not limited to, the acquisition of property, costs of construction,
including costs associated with planning, administration and design,
as well as actual building or installation costs, and program administration.
Housing assisted with commercial linkage fees shall be subject to
a minimum 55-year affordability agreement with the Housing Authority.
(4)
The developer of any project subject to the fee requirements may
apply to receive a credit against the total amount of fees due, or
a portion thereof, if said developer provides affordable housing through
some other means for review and approval by the Director of the Department
of Planning and Economic Development.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
Allocated units shall be constructed concurrent with or before construction
of unallocated units, whether provided on- or off-site. For phased
projects, allocated units shall be provided in the first phase or
with each phase of the project in proportion to the project.
(B)
Allocated units shall be distributed throughout the residential project.
Exceptions may be granted by the Director of Planning and Economic
Development in instances where site dispersion is constrained by affordable
housing funding sources which require clustering of subsidized units.
(C)
Allocated units shall be comparable in number of bedrooms, exterior
appearance and overall quality of construction to market rate units
in the residential project as a whole. While the square footage of
allocated units and interior features may not be equivalent to those
in the project's market rate units, all features shall be of good
quality and consistent with contemporary standards for new housing.
(D)
Accessory dwelling units shall not be counted towards meeting a project's
inclusionary requirements.
(Ord. 3998 § 2, 2012)
An applicant may request the City provide regulatory, procedural
or financial incentives, including but not limited to a density bonus
or modified development standards, in exchange for providing on-site
inclusionary units as required by this chapter. The request for incentives
shall be included as part of the project application materials, and
shall be subject to review and approval by the Director of Planning
and Economic Development.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
For developments providing allocated units, an affordability agreement
must be executed prior to recording any final map for the residential
development or prior to the issuance of any building permit for the
residential development, whichever comes first. The affordability
agreement shall be binding on all future owners and successors of
interests of the residential development.
(B)
Once the residential development including allocated units has received
its final discretionary approval, the applicant shall file an application,
including payment of any processing and monitoring fees, with the
Housing Authority for approval and finalization of the affordability
agreement.
(C)
The affordability agreement shall:
(1)
Identify the type, size and location of each allocated unit provided.
(2)
Identify the term of the agreement, which would define the term of
affordability of the allocated units.
(3)
Require that the allocated units be constructed and completed by
the applicant as specified in this chapter.
(4)
Require that each allocated unit be kept available only to members
of the identified income group at the maximum affordable rent or housing
cost during the term of the agreement.
(5)
Identify the means by which such continued availability shall be
secured and enforced and the procedures under which the allocated
units shall be leased and shall contain such other terms and provisions
the Housing Authority may require. The agreement, in its form and
manner of execution, shall be in a form able to be recorded with the
Sonoma County Recorder.
(6)
The affordability agreement shall be reviewed and approved by the
Executive Director of the City's Housing Authority and the affordability
of the allocated units shall be monitored for compliance by the Housing
Authority staff. The Housing Authority is hereby expressly authorized
to act as the City's agent to enter into the affordability agreement
for the purpose of enforcing the terms of the agreement consistent
with this chapter.
(D)
A project providing allocated units consistent with this chapter
and affordable units consistent with the provisions of the density
bonus and other developer incentives chapter of this code may enter
into a single affordability agreement.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
The City Council, by resolution, may from time to time adopt procedures,
policies, rules and requirements, including the adoption of processing
and administrative fees, to implement, administer, and/or enforce
the provisions of this chapter.
(B)
The Director of the Department of Planning and Economic Development
or designee is authorized to determine the number of dwelling units
contained within a particular residential development, if a determination
is needed to resolve a disagreement. When a question arises regarding
the meaning, or requires an interpretation of any provision of this
chapter to any specific circumstances or situation, the Director of
Planning and Economic Development is authorized to render a decision
thereon in writing.
(C)
The Director of the Department of Planning and Economic Development
or designee is authorized to determine the classification of a commercial
land use. Commercial land uses shall be divided into three classifications:
commercial, retail, and industrial. When necessary, the Director shall
determine the land use classification that most accurately describes
the commercial development, or in the case of mixed-use developments,
the portion thereof, for the purposes of determining the fee to be
imposed.
(D)
The City's Department of Housing and Community Services shall keep
on file and available for public review a copy of the current income
schedules and utility allowances.
(Ord. 3998 § 2, 2012; Ord. 2019-015 § 1)
(A)
At least once each calendar year, the Department of Planning and
Economic Development shall prepare a report on the effectiveness of
the inclusionary housing ordinance, both citywide and Downtown, which
shall include the following:
(1)
The number of allocated units, both on and off site, issued building
permits during the time period covered by the report.
(2)
The number of qualifying units, owner/builder units, accessory dwelling
units, very low, low or moderate income units and mixed use units
issued building permits during the time period covered by the report.
(3)
The amount of housing impact fees collected.
(4)
The amount of acreage by land use category dedicated to the City.
(5)
A listing of any staff recommendations, with regard to changes or
revisions to the adopted program to improve its effectiveness and/or
administration.
(B)
The staff report shall be submitted to the Planning Commission and
City Council as an agenda item at a joint or individual regular meeting.
(Ord. 3998 § 2, 2012)
