Chapter 19.16 AFFORDABLE HOUSING

§ 19.16.010 Purpose and applicability.

Intent. This chapter prescribes incentives for the production and preservation of housing for persons and families of low and moderate income in furtherance of the Housing Element of the General Plan and Redevelopment Plan for the Buellton Improvement Project. In addition, the provisions of this chapter are intended to implement statutory requirements governing affordable housing including, but not limited to, inclusionary zoning (California Health and Safety Code Section 33413(b)), replacement housing (California Health and Safety Code Section 33413(a)), Density Bonuses (California Government Code 65915), and accessory dwelling units (California Government Code Section 65852.2).

Effectuation. The provisions of this chapter apply to all Residential Projects for which entitlements have not been obtained as of October 12, 2002. For the purpose of Section 19.16.016(D)(3), this chapter shall not apply to residential projects for which entitlements, other than a zoning clearance, have been obtained as of October 12, 2002. Furthermore, the provisions of Section 19.16.016 do not apply to the demolition of structures which have been declared to be a public nuisance or results from an order to abate or correct substandard conditions issued by a government agency having jurisdiction prior to October 12, 2002.

Conflicts. The requirements set forth in this chapter do not replace other statutes or regulations. In case of conflict, the most restrictive requirement shall govern.

Exemptions. The requirements set forth in this chapter do not apply to: (1) zoning clearance or administrative approvals (including final development plans) required in connection with entitlement permits for which discretionary approval was granted before October 12, 2002, so long as such actions are incidental to the entitlement permit and conform to the terms and conditions of the discretionary approval; or (2) modifications in entitlement permits for which discretionary approval was granted before October 12, 2002, and do not increase the number of residential dwellings that were previously authorized for construction or demolition. Any modifications in discretionary permits on or after October 12, 2002, that change the dwelling unit count from that which was originally approved, the net change shall be subject to the requirements of this chapter.

(Ord. 02-03 Exh. A, 2002; Ord. 06-10 § 2(J)(2), 2006; Ord. 19-03 § 2, 2019)

§ 19.16.012 Reserved.

Prior History: Former Section 19.16.012 Definitions, compiled of Ord. 02-03 Exh. A, 2002; Ord. 05-05 §§ 2(A), (B), 2005; Ord. 06-10 §§ 2(B)(4), (D)(1), (F)(1), (G)(1), 2006; Ord. 10-04 § 4, 2010; repealed by Ord. 25-02, 5/8/2025. Definitions have been moved to Sections 19.12.020 and 19.18.018.

§ 19.16.013 Affordable housing overlay zone ("AHOZ").

Applicability. The provisions of this section apply to all AHOZ Sites identified in Figure 1 and Table 5 below. The list of properties set forth in Figure 1 and Table 5 may be modified from time to time by further amendment of this code.

Basic Provisions. In addition to (and not as a limitation of) the uses allowed according to the underlying zone district of the properties listed in Figure 1 and Table 5, each such property may be developed as a Residential Project, wholly independent and not constrained by the underlying zone district, subject to the provisions set forth below.

Base Density. Except as otherwise provided in subsection B.8 of this section, AHOZ Sites must be developed to a minimum density of 25 units per acre. The computation of the minimum required density shall be based on the Net Buildable Area of the properties identified in Figure 1 and Table 5. Where the computation of the minimum required density results in a fraction of a number, the minimum number of units required shall be rounded to the closest whole number.

Inclusionary Requirement. Not less than 20% of all new and Substantially Rehabilitated dwelling units in Residential Projects undertaken by a Developer (other than the Agency) shall be developed with Affordable Units, and not less than 30% of all new and Substantially Rehabilitated dwelling units undertaken by the Agency shall be developed with Affordable Units. Except as otherwise provided in subsections B.7 and 8 of this section, all of the Affordable Units required by this subsection shall be developed on-site as part of each Residential Project.

Affordable Unit Distribution. Affordable Units required under this section shall be allocated among the Target Households in proportion to Net RHNA Goals as set forth in Table 4 of Section 19.12.020, but in no event shall the percentage allocated to Very Low Income be less than 40%. In addition, at least 50% of all Affordable Units developed by the Agency shall be reserved for Very Low Income and the balance shall be allocated to Lower and Moderate Income in proportion to Net RHNA Goals.

Illustrative Calculation. By way of example, for illustrative purposes only, where a proposed AHOZ Site consists of one acre of land and is proposed to be developed with a total of 20 dwelling units (and the project is to be undertaken by a private Developer without the Agency's involvement), the base density, inclusionary requirement, affordable unit distribution and Density Bonus would be calculated as follows:

Base Density. Twenty units/one acre equals 20 units/acre.

Inclusionary Requirement. Twenty percent as determined by Table 6.

Computation of Affordable Units. Twenty percent times 20 total units equals four Affordable Units.

Distribution of Affordable Units.

Very Low Income. Four total Affordable Units times 42% per Table 4 equals 1.68 Very Low Income Affordable Units.

ii.

Lower Income. Four total Affordable Units times 31% per Table 4 equals 1.24 Lower Income Affordable Units.

iii.

Moderate Income. Four total Affordable Units times 27% per Table 4 equals 1.08 Moderate Income Affordable Units.

Density Bonus. (1.68 Very Low Income Affordable Units plus 1.24 Lower Income Units) times two equals 5.84 Non-Restricted Units. Rounding to the next whole number equals six units.

Adjusted Unit Total. Base Density (20 units) plus Density Bonus (six units) equals 26 total units.

Production Requirement. Except as otherwise provided in subsections B.7 and 8 of this section, the Affordable Units required under this section shall be constructed concurrent with the Non-Restricted Units developed as part of the Residential Project. For fractions of Affordable Units, including fractions resulting from construction of less than ten dwellings and fractions of Affordable Units allocated among the Target Households, the Developer may elect, at his or her option, to construct the next higher whole number of Affordable Units or pay a Housing In-Lieu Fee for the fractional amount.

Equivalent Action. Subject to the provisions of subsection B.10 of this section, the city council (at its sole discretion) may allow a Developer to dedicate vacant land in lieu of constructing Affordable Units on-site as part of a Residential Project otherwise required by subsections B.2 and B.6 of this section. All of the units developed on land donated pursuant to this section shall be Affordable Units distributed among the Target Households pursuant to subsection (B)(3) of this section.

Exceptions.

Minimum Allowable Density. Subject to the provisions of subsection B.10 of this section, the minimum required density may be reduced by the city council (at its sole discretion) when: (i) the findings required in Sections 19.08.100D (Zoning Clearance), 19.08.110D (Conditional Uses), or 19.08.120F (Development Plans), as applicable, cannot otherwise be made; or (ii) the Developer requests relief and compensates for the difference between the minimum number of Affordable Units computed pursuant to subsection B.1 of this section compared to the number of Affordable Units computed pursuant to subsection B.2 of this section (hereinafter referred to as the "affordable unit differential").

Illustrative Calculation. By way of example, and for illustrative purposes only, where the Net Buildable Area is ten acres, the minimum required density is computed as 250 units and the inclusionary requirement is computed as 50 dwellings (i.e., ten acres times 25 du/acre times 20% equals 50 Affordable Units). If a Developer requests that the minimum required density be reduced to 200 units, then the resulting inclusionary requirement is computed as 40 dwellings (i.e., 200 units times 20% equals 40 Affordable Units). The affordable unit differential is computed as ten dwellings (i.e., 50 units minus 40 units equals ten Affordable Units). Except as provided in subsection B.8.a.ii of this section, the affordable unit differential shall be satisfied by construction on-site as part of, and concurrent with development of, a Residential Project.

ii.

Equivalent Actions. Subject to review and approval by the city council (at its sole discretion), and provided the mandatory findings of subsection B.10 of this section can be made, the affordable unit differential may be satisfied by dedication of vacant land or payment of a Housing In-Lieu Fee. Except for fractional units for which an Housing In-Lieu Fee may be paid as provided in subsection B.6 of this section, or the dedication of vacant land as provided in subsection B.7 of this section, in no event shall the number of Affordable Units that must be developed on-site be less than 20% of the total units within a Residential Project.

Inclusionary Requirement. At the discretion of the Developer, the overall inclusionary requirement specified in subsection B.2 of this section may be reduced in exchange for a higher percentage of Lower and Very Low Income Affordable Units. The reduction may be achieved by exchanging Moderate Income Affordable Units for Low and Very Low Income Affordable Units at the following rate of exchange: (i) one and one-half Moderate Income Affordable Units for one Low Income Affordable Unit; and (ii) two Moderate Income Units for one Very Low Income Affordable Unit. Fractions of Affordable Units resulting from such an exchange shall be governed by the provisions of subsection B.6 of this section.

Retention Period. Except to the extent a longer period of time may be required by other provisions of law, all Affordable Units required under this section shall remain available at affordable housing costs to, and occupied by, the Target Households for the longest feasible time, but for not less than the following: (a) 55 years for renter-occupied dwelling units; and (b) 45 years for owner-occupied dwelling units. Under terms and conditions of the Affordable Housing Agreement, the city may permit sale of owner-occupied Affordable Units prior to the expiration of the 45 year period pursuant to an adopted program which protects the city's investment of moneys from the Housing Trust Fund, including, but not limited to, equity sharing that permits retention by the seller of a portion of sales proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the city and deposited in the Housing Trust Fund.

10.

Mandatory Findings.

Equivalent actions and exceptions provided in subsections B.7 and 8 of this section shall be considered on a case-by-case basis and may only be approved if the city council determines that: (i) the land offered for dedication or the payment of an Housing In-Lieu Fee shall result in production of an equivalent number of required Affordable Units ("equivalent action finding"); (ii) the production of an equivalent number of required Affordable Units is reasonably expected to occur within the planning period of the current adopted Housing Element ("timely production finding"); and (iii) the remaining inventory of AHOZ Sites is sufficient to meet Net RHNA Goals in combination with policy decisions regarding base density, percent of inclusionary housing, distribution of affordable units among target income groups and other housing production programs identified in the Housing Element ("sufficient sites finding"). The equivalent action and timely production findings shall only apply when land is offered for dedication or payment of a Housing In-Lieu Fee is proposed as an alternative to constructing required Affordable Units on-site as part of a Residential Project; the sufficient sites finding shall apply in all cases.

In the event that the required findings cannot be made, the city council shall take one of the following actions: (i) not approve the Residential Project; (ii) not grant the equivalent action or exception; or (iii) designate additional AHOZ Sites as necessary such that the potential number of dwellings that may be developed for all property with an AHOZ designation, in combination with other housing production programs identified in the Housing Element, is sufficient to meet Net RHNA Goals for target income groups.

Development Standards. Residential Projects developed under the provisions of this section shall be designed and processed in the time and manner set forth below.

General Guidelines. The Affordable Units required under this section:

May either be rental or for-sale dwellings;

Should be comparable in number of bedrooms, exterior appearance and overall quality of construction to Non-Restricted Units;

May have less square footage and interior amenities to those of Non-Restricted Units in the same Residential Project, so long as they are of good quality and are consistent with contemporary standards for new housing; and

May be clustered or disbursed within the Residential Project.

Commercial Priority. AHOZ Sites with frontage upon Avenue of Flags or Highway 246 are expressly subject to General Plan Land Use Element policies that give commercial uses priority over residential. In compliance with these policies, AHOZ Sites with frontage upon Avenue of Flags or Highway 246 are subject to the following development parameters: (i) the Maximum Residential Density may be computed on the basis of the gross area of the AHOZ Site; (ii) the minimum required density, for purposes of subsection B.1 of this section and computing inclusionary requirements pursuant to subsection B.2 of this section, shall be based on Net Buildable Area of the AHOZ Site, exclusive of the portion of property devoted to or supporting commercial uses (e.g., building space, parking areas, and drive aisles); and (iii) new development shall conform to the development standards prescribed in Land Use Policy L-23 of the General Plan. Exceptions to the development standards set forth in Land Use Policy L-23 of the General Plan may be considered on a case-by-case basis and may only be approved by majority vote of the city council when all of the findings set forth in Land Use Policy L-23 can be made.

Development Review. All Residential Projects shall comply with adopted community design guidelines of the city, provided such guidelines are not unreasonably imposed as to render a project infeasible. Furthermore, discretionary authority under a development plan or conditional use permit shall not be unreasonably exercised to impose standards or criteria for the purpose of rendering infeasible the development of housing for any and all economic segments of the community as prohibited in Section 65913.2 of the California Government Code.

Environmental Review. All Residential Projects shall be subject to the requirements of the California Environmental Quality Act (California Public Resources Code Section 21000 et seq., and its implementing regulations), if applicable, and shall adhere to mitigation measures prescribed in the Buellton General Plan and companion environmental impact report, as updated and amended from time to time.

Application Processing. Applications for development of AHOZ Sites under the provisions of this section shall be processed as follows:

Zoning Clearance. Residential Projects conforming to the following criteria shall be allowed by zoning clearance under the jurisdiction of the planning director as provided in Sections 19.02.110 and 19.08.100 of this code: (i) the Residential Project consists of no more than 25 units per acre (inclusive of density bonus units) on sites with an underlying zone district of general commercial (CR) or residential multifamily (RM); and (ii) the physical attributes of design conform to the development standards of the underlying zone district (i.e. building height, lot coverage, setbacks, etc.) and adopted community design guidelines of the city.

Development Plan Approval. Residential Projects greater than 25 units per acre (or do not otherwise qualify for a zoning clearance) on AHOZ Sites with an underlying zone district of CR or RM may be allowed by development plan approval under the jurisdiction of the planning commission as provided in Sections 19.02.110 and 19.08.120 of the Buellton Municipal Code. The physical attributes of design shall conform to the development standards of the underlying zone district (i.e. building height, lot coverage, setbacks, etc.) and adopted community design guidelines of the city except or unless a modification is granted under the provisions of Section 19.08.120(G)(1) of this code.

Conditional Use Permit. Residential Projects on AHOZ Sites zoned single-family residential (RS), commercial service (CS), open space (OS) or industrial (M) may be allowed by conditional use permit approval under the jurisdiction of the planning commission as provided in Sections 19.02.110 and 19.08.110 of the Buellton Municipal Code. The physical attributes of design shall conform to the development standards of the underlying zone district (i.e. building height, lot coverage, setbacks, etc.) and adopted community design guidelines of the city except or unless a development plan is processed concurrent with the conditional use permit and a modification is granted under the provisions of Section 19.08.120(G)(1) of this code.

Miscellaneous Provisions.

Affordable Housing Agreement. An Affordable Housing Agreement shall be made a condition of land use permit approval for all Residential Projects pursuant to this section. The Affordable Housing Agreement shall: (a) be recorded as a restriction on the parcel or parcels on which the Affordable Units will be constructed; and (b) be consistent with Section 19.16.022B of this chapter.

Project Entitlements. Every Entitlement for a Residential Project that is granted under the provisions of this section shall contain a condition detailing the method of compliance with this section, as applicable. Every final and parcel map shall bear a note indicating whether compliance with the requirements of this section must be met prior to issuance of a building permit for each lot created by such map.

Requirements for Certificate of Occupancy/Final Inspection. No temporary or permanent certificate of occupancy shall be issued, final inspection approved or release of utilities authorized for any new dwelling unit in a residential project until the developer has satisfactorily completed the requirements of this section and conditions of approval.

Variable Limit. The provisions of this section shall apply to all development permit applications which are filed with the city on or after the effective date of Ordinance No. 05-05 or subsequently amended for applications filed before the effective data, and shall continue thereafter until: (i) the Net RHNA Goals are achieved; or (ii) approval of Residential Projects on AHOZ Sites reaches a total of 1,529 total dwelling units inclusive of density bonuses. The list of properties set forth in Figure 1 and Table 5, as well as the variable limit set forth in this subsection, is anticipated to be modified from time to time by further amendment of this code.

Table 5: List of AHOZ Sites
Map No.	General Location (All Within the City of Buellton)	No. of Parcels	Site Area (Acres)		Assessor Parcel Numbers and Maps
Map No.	General Location (All Within the City of Buellton)	No. of Parcels	Gross	Net	Assessor Parcel Numbers and Maps
I	Northeasterly of the northerly terminus of McMurray Road adjacent to the McMurray Industrial Park	2	17.95	17.10	137-090-006 137-090-007
II	Along the west side of Jonata Park Road, north of the intersection of Avenue of Flags and Central Avenue	2	18.17	15.00	099-400-064 099-400-065
III	Northwest and southwest of the intersection of Rufus T. Buell Drive and McMurray Road	2	3.39	3.20	137-170-059 137-170-060
IV	East of McMurray Road and north of the easterly prolongation of Glennora Way	1	2.16	1.60	137-090-067
V	Northeast corner of La Lata Drive and Hwy 246	49	1.57	.080	099-85 099-87 099-88 099-89 099-90
VII	Southeast of the intersection of Hwy 246 and Avenue of Flags	6	2.5	1.15	137-190-013 137-190-017 137-190-024 137-190-026 137-190-032 137-190-033
IX	Southeasterly of the southerly terminus of McMurray Road behind and adjacent to the Buellton Town Center	4	6.72	6.00	137-200-077 137-200-078 137-200-087 137-200-094
X	North of the easterly terminus of Second Street	1	3.63	3.00	137-170-053
XI	Along the easterly side of McMurray Road at the intersection of Rufus T. Buell Drive	1	4.04	4.20	137-170-067

Notes:
1.	Numeric listing of AHOZ Sites above excludes potential candidates identified in the General Plan Land Use and Housing Elements that have not been designated for purposes of this section. The gap in numbering is intentional.
2.	Net Acres is based on the definition of Net Buildable Area and is derived from Table 2-8B of the final EIR for the General Plan Update — Land Use and Circulation Elements, August 4, 2005. Figures shown are estimated; actual Net Buildable Area will be determined at the time of Entitlements. In addition, the Net Acres for AHOZ Sites V and VII have been further reduced by 50% to account for the commercial priority provisions of Section 19.16.013C.2.

(Ord. 05-05 § 2(C), 2005; Ord. 06-10 § 2(J)(1), 2006; Ord. 25-02, 5/8/2025)

§ 19.16.014 Inclusionary zoning.

Applicability. Except as provided below, the provisions of this section apply to all Residential Projects resulting in the creation of new housing regardless of the number or location of dwelling units or lots that are constructed, placed, converted, substantially rehabilitated or subdivided on a single parcel of record or as part of a single project. The following Residential Projects are expressly exempt from the requirements of this section:

Accessory Dwelling Units. Accessory dwelling units (ADUs) constructed by a Developer (other than the Agency) shall be exempt from the inclusionary housing requirements of this section provided that such dwellings are affirmatively marketed to income qualifying tenants under the Federal Section 8 Housing Assistance Payments Program. The requirements for affirmative marketing shall be deemed satisfied by one of the following means: (a) the Developer occupies the ADU with a family member; or (b) the Developer shall, in addition to other means of advertising as determined at the Developer's sole discretion, provide written notice to the Santa Barbara County housing authority and Santa Ynez Valley People Helping People each time the ADU becomes vacant and available for occupancy. The requirement for affirmative marketing shall be evidenced by deed restriction on the parcel recorded with the county of Santa Barbara prior to and as condition precedent to issuance of a certificate of occupancy, and shall remain in full force and effect until the ADU is no longer used or occupied. The form and content of the deed restriction shall be determined by the city.

Special Needs Housing. Special needs housing (as defined in Section 19.16.012) constructed by a Developer (other than the Agency) shall be exempt from the inclusionary requirements of this section. Special needs housing developed by the Agency shall be governed by applicable redevelopment statutes.

Basic Provisions. As summarized in Table 6: (i) at least 30% of all new and Substantially Rehabilitated dwelling units in Residential Projects undertaken by the Agency shall be developed with Affordable Units; and (ii) at least 15% of all new and Substantially Rehabilitated dwelling units in Residential Projects undertaken by a Developer (other than the Agency) shall be developed with Affordable Units. The Affordable Units required under this section shall be constructed concurrent with the Non-Restricted Units developed as part of the Residential Project. For fractions of Affordable Units, including fractions resulting from construction of less than ten dwellings, the Developer may elect, at his or her option, to construct the next higher whole number of Affordable Units, perform an equivalency action alternative or pay the In-Lieu Housing Fee specified below.

Production Alternatives. As an alternative to constructing Affordable Units as part of a Residential Project, a Developer may satisfy the inclusionary requirements of this section by one of the following means:

Equivalent Action. Subject to review and approval by the city council, a Developer may propose an alternative equivalent action including, but not limited to: (i) dedication of vacant land; (ii) construction of Affordable Units on another site; (iii) acquisition and enforcement of rental/sales price restrictions on existing standard dwelling units; or (iv) Substantial Rehabilitation of existing substandard dwellings. Any such proposal shall show how the alternative will further affordable housing opportunities in the city to an equal or greater extent than construction of Affordable Units on-site as part of the Residential Project or payment of a Housing In-Lieu Fee. Such proposals may be approved if the city council determines that such alternative: (i) is necessary due to economic hardship or physical constraints that render on-site construction infeasible; and (ii) will further affordable housing opportunities in the city to an equal or greater extent than payment of the Housing In-Lieu Fee.

Housing In-Lieu Fee. For Residential Projects located within redevelopment project areas, a Developer, at his or her option, may satisfy the inclusionary requirements of this section by payment of an In-Lieu Housing Fee. The Housing In-Lieu Fee shall be paid prior to the issuance of a building permit for the Residential Project. For Residential Projects located within redevelopment project areas under the jurisdiction of the Agency, a Developer may pay a Housing In-Lieu Fee as a means of satisfying the inclusionary requirements of this section only if approved at the sole discretion by the city council. Such requests shall be considered on a case by case basis and may only be approved if the city council determines that such payment: (i) is necessary due to economic hardship or physical constraints that render on-site construction infeasible; and (ii) will further the affordable housing obligations of the Agency within redevelopment project areas.

Target Households. Affordable Units required under this section shall be allocated among the Target Households in proportion to Net RHNA Goals as set forth in Table 4 of Section 19.16.012, but in no event shall the percentage allocated to Very Low Income be less than 40%. In addition, at least 50% of all Affordable Units developed by the Agency shall be reserved for Very Low Income and the balance shall be allocated to Lower and Moderate Income in proportion to Net RHNA Goals. (Note: Section 19.16.013(B)(5) provides an illustration of how proportionality is calculated.)

Production Schedule. For Affordable Units that are constructed as part of a Residential Project, such dwellings shall be completed and occupied concurrent with the Non-Restricted Units. Where the requirements of this section are satisfied either through Equivalent Action or the payment of Housing In-Lieu Fees, the time period for compliance shall be governed by the city's Housing Element and Agency's Implementation Plan, but in no event longer than ten years from the date of approval of the Residential Project except as allowed pursuant to California Health and Safety Code Section 33413(b)(4).

Retention Period. Except to the extent a longer period of time may be required by other provisions of law, all Affordable Units required under this section shall remain available at affordable Housing Costs to, and occupied by, the Target Households for the longest feasible time, but for not less than the following: (i) 55 years for renter-occupied dwelling units; and (ii) 45 years for owner-occupied dwelling units. Under terms and conditions of the Affordable Housing Agreement, the city may permit sale of owner-occupied Affordable Units prior to the expiration of the 45-year period pursuant to an adopted program which protects the city's investment of moneys from the Housing Trust Fund, including, but not limited to, equity sharing which that permits retention by the seller of a portion of sales proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the city and deposited in the Housing Trust Fund.

Density Bonus. All Residential Projects to which this section applies shall be granted a Density Bonus of two Non-Restricted Units for each Affordable Unit that is produced or required for a Lower or Very Low Income Household, up to a maximum combined density (inclusive of Density Bonus Units) of: (i) 50% above the base density for property zoned multifamily residential (RM): and (ii) 25 units per acre for property zoned general commercial (CR). To further induce the production of Affordable Units, and subject to development plan approval under the provisions of Section 19.02.120(E)(2), an Additional Incentive for multifamily dwellings on property zoned multifamily residential (RM) may be granted pursuant to Section 19.16.018(B)(1)(a).

Development Standards. The Affordable Units required under this section may either be rental or for-sale dwellings. When constructed as part of a Residential Project, the Affordable Units shall be comparable in number of bedrooms, exterior appearance and overall quality of construction to Non-Restricted Units. The square footage of Affordable Units and interior features in Affordable Units may not be the same as or equivalent to those in Non-Restricted Units in the same Residential Project, so long as they are of good quality and are consistent with contemporary standards for new housing. Affordable Units shall be dispersed throughout the Residential Project or, subject to the approval of a development plan as provided in Section 19.08.120 of this title, may be clustered within the Residential Project when this furthers affordable housing opportunities.

Miscellaneous Provisions.

Affordable Housing Agreement. An Affordable Housing Agreement shall be made a condition of land use permit approval for all Residential Projects pursuant to this section. The Affordable Housing Agreement shall: (i) be recorded as a restriction on the parcel or parcels on which the Affordable Units will be constructed; and (ii) be consistent with Section 19.16.022(B) of this chapter.

Project Entitlements. Every Entitlement for a Residential Project that is subject to the provisions of this chapter shall contain a condition detailing the method of compliance with this section, as applicable. Every final and parcel map shall bear a note indicating whether compliance with the requirements of this section must be met prior to issuance of a building permit for each lot created by such map.

Requirements for Certificate of Occupancy/Final Inspection. No temporary or permanent certificate of occupancy shall be issued, final inspection approved or release of utilities authorized for any new dwelling unit in a Residential Project until the Developer has satisfactorily completed the requirements of this section (e.g., on-site construction of Affordable Units, alternative equivalent action(s) or payment of the Housing In-Lieu Fee).

Table 6: Inclusionary Zoning Basic Provisions
	Developer	Agency
Inclusionary Percent	15%	30%
Target Households	40% Very Low 60% Lower and Moderate*	50% Very Low 50% Lower and Moderate*
Production Schedule	On-Site Construction: Concurrent with Construction of Non-Restricted Units Equivalent Action or Housing In-Lieu Fees: 10 Years
Retention Period	Renter-Occupied Dwellings: 55 Years Owner-Occupied Dwellings: 45 Years

Notes:
*The distribution between the Lower and Moderate Income categories shall be based on the percentage which these categories represent of total housing needs as identified in the Housing Element according to the following formula:
Lower Income Percentage = Lower Income Needs/(Lower Income Needs + Moderate Income Needs)
Moderate Income Percentage = Moderate Income Needs/(Lower Income Needs + Moderate Income Needs)
Housing needs, for the purpose of computing the distribution of units between income categories, consists of the numeric housing production goals assigned to each income group as determined through the Regional Housing Needs Assessment process embodied in the Housing Element as shown in Table 4 in Section 19.16.012.

(Ord. 02-03 Exh. A, 2002; Ord. 06-10 §§ 2(B)(5), (D)(2)-(5), 2006; Ord. 19-03 § 2, 2019)

§ 19.16.016 Replacement housing.

Applicability. Except as provided below, the provisions of this section apply to all Residential Projects resulting in the Conversion or Demolition of existing housing Inhabited by Very Low, Lower or Moderate Income Households, regardless of the number or location of dwelling units that are destroyed, converted or removed on or from a single parcel of record or as part of a single project. The following Residential Projects are expressly exempt from the requirements of this section:

Owner-Occupied Dwellings. The Conversion or Demolition of a residential structure which is: (i) owned and occupied by the Developer a minimum of 90 consecutive days prior to the date an application is filed with the city for a land use permit; and (ii) is not destroyed or removed as part of a redevelopment project that is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency.

Public Nuisances. The Demolition of any residential structure which: (i) has been declared to be a public nuisance under the provisions of Division 13 (commencing with Section 17000) of the Health and Safety Code, or any local ordinance enacted pursuant to those provisions; (ii) results from an order to abate or correct substandard conditions issued by a government agency having jurisdiction; (iii) is not destroyed or removed as part of a redevelopment project that is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency; and (iv) has not been occupied by a Target Household for a period of 90 or more consecutive days as of the date of declaration of a public nuisance.

Nonconforming Uses. The Conversion or Demolition of a residential structure that: (i) constitutes a nonconforming use; and (ii) is not destroyed or removed as part of a redevelopment project that is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency. For purposes of this section, nonconforming uses include motels and hotels with guestrooms that are used, rented or occupied as primary residences; provided, however, that the replacement housing requirements of this chapter expressly apply to the Demolition of each motel or hotel guestroom that has been occupied by a Target Household for a period of 90 or more consecutive days as of the date on which Entitlements or zoning clearances have been obtained.

Basic Provision. The Conversion or Demolition of existing residential dwelling units Inhabited by persons and families of Very Low, Lower or Moderate Income shall not be authorized unless provision has been made for the replacement of those dwelling units with Affordable Units. Where Conversion or Demolition is undertaken in conjunction with a Residential Project in which new dwelling units are developed, replacement Affordable Units shall be constructed on the site of the Residential Project and occupied concurrent with the Non-Restricted Units.

Production Alternatives. As an alternative to constructing Affordable Units as part of a Residential Project in which new dwelling units are created, or where the Conversion or Demolition is not undertaken in conjunction with a new Residential Project, a Developer may satisfy the replacement housing requirements of this section by one of the following means:

Equivalent Action. Subject to review and approval by the city council, a Developer may propose an alternative equivalent action including, but not limited to, (i) dedication of vacant land; (ii) construction of Affordable Units on another site; (iii) acquisition and enforcement of rental/sales price restrictions on existing standard dwelling units; or (iv) Substantial Rehabilitation of existing substandard dwellings. Any such proposal shall show how the alternative will further affordable housing opportunities in the city to an equal or greater extent than construction of Affordable Units on-site as part of the Residential Project or payment of a Housing In-Lieu Fee. Such proposals may be approved if the city council determines that such alternative: (i) is necessary due to economic hardship or physical constraints that render on-site construction infeasible; and (ii) will further affordable housing opportunities in the city to an equal or greater extent than payment of the Housing In-Lieu Fee.

Housing In-Lieu Fee. For Residential Projects located within the corporate limits of the city, outside of redevelopment project areas, a Developer, at his or her option, may satisfy the replacement housing requirements of this section by payment of an In-Lieu Housing Fee. The Housing In-Lieu Fee shall be paid prior to the issuance of a building permit for the Residential Project. In the event that no new development is proposed in connection with Conversion or Demolition of Very Low, Lower or Moderate Income dwellings: (i) the Housing In-Lieu Fee may be deferred until a building permit is required for the property; and (ii) the Developer and owner, if different, shall execute a secured building agreement recorded against the property, assuring payment of the Housing In-Lieu Fee at the time of issuance of any subsequent building permit. For Residential Projects located within redevelopment project areas under the jurisdiction of the Agency, a Developer may pay a Housing In-Lieu Fee as a means of satisfying the replacement requirements of this section only if approved at the sole discretion by the city council. Such requests shall be considered on a case by case basis and may only be approved if the city council determines that such payment: (i) is necessary due to economic hardship or physical constraints that render on-site construction infeasible; and (ii) will further the affordable housing obligations of the Agency within redevelopment project areas.

Target Households. All replacement dwelling units shall be developed as Affordable Units and shall be available to persons and families in the same or a Lower Income category (Very Low, Lower, or Moderate), as the persons and families displaced from those destroyed or removed units. The Developer shall bear the burden of proving the status of occupancy at the time application is filed with the city for a land use permit allowing such Conversion or Demolition. Data shall be obtained and verified by such methods as may be necessary and reasonable to ensure full, true and complete information from which to base determinations in accordance with the standards set forth in Section 19.16.022(C) of this chapter. In the absence of such data, or where occupancy cannot be established at the time of Conversion or Demolition: (i) all displaced dwellings shall be deemed Inhabited by Target Households; and (ii) all replacement Affordable Units shall be in proportion to the needs identified in the city's Housing Element for Very Low, Lower and Moderate Income.

Production Schedule. Where Conversion or Demolition is undertaken in conjunction with a Residential Project in which new dwelling units are developed and the replacement Affordable Units are constructed on the site of the Residential Project, such dwellings shall be completed and occupied concurrent with the Non-Restricted Units. Where the requirements of this section are satisfied either through Equivalent Action or the payment of Housing In-Lieu Fees, the time period for compliance shall be governed by the city's Housing Element and Agency's implementation plan, but in no event longer than ten years from the date of approval of the Residential Project except as allowed pursuant to California Health and Safety Code Section 33413(b)(4). In all cases where dwellings inhabited by Very Low, Lower and Moderate Income Households are destroyed or removed as part of a redevelopment project that is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency, replacement Affordable Units shall be completed and occupied by Target Households within four years of such destruction or removal.

Retention Period. Except to the extent a longer period of time may be required by other provisions of law, all Affordable Units required under this section shall remain available at affordable housing costs to, and occupied by, the Target Households for the longest feasible time, but for not less than the following: (i) 55 years for renter-occupied dwelling units; and (ii) 45 years for owner-occupied dwelling units. Under terms and conditions of the Affordable Housing Agreement, the city may permit sale of owner-occupied Affordable Units prior to the expiration of the 45 year period pursuant to an adopted program which protects the city's investment of moneys from the Housing Trust Fund, including, but not limited to, equity sharing which that permits retention by the seller of a portion of sales proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the city and deposited in the Housing Trust Fund.

Inclusionary Offset. Affordable Units required under Section 19.16.014 may offset replacement housing requirements on a 2:1 basis (i.e., a reduction of two replacement units for each inclusionary unit) subject to the following provisions:

The inclusionary housing offset shall apply only to inclusionary requirements that are imposed on the same parcel of record as that on which replacement units also are required;

The units which are demolished or converted (and for which the replacement units are required under this section) must not otherwise be governed by affordable housing covenants that impose rent or occupancy restrictions for a minimum of ten years;

In the event that a demolished or converted unit dwelling is deed restricted with rent or occupancy restrictions for no fewer than ten years, replacement requirements shall be in addition to, and not offset by, inclusionary units; and

Replacement and inclusionary housing requirements stipulated under redevelopment law shall govern projects financed, in whole or in part, by the Agency.

Development Standards. The Affordable Units required under this section may either be rental or for-sale dwellings. Where Conversion or Demolition is undertaken in conjunction with a Residential Project in which new dwelling units are developed, and replacement Affordable Units are constructed on the site of the Residential Project, the Affordable Units shall be developed in accordance with the standards specified in Section 19.16.014(C) of this chapter. All replacement dwellings developed or constructed pursuant to this section shall be decent, safe and sanitary and shall contain at least the same number of bedrooms and other living areas as the dwelling unit destroyed or removed.

Miscellaneous.

Affordable Housing Agreement. An Affordable Housing Agreement shall be made a condition of land use permit approval for all Residential Projects pursuant to this section. The Affordable Housing Agreement shall: (i) be recorded as a restriction on the parcel or parcels on which the Affordable Units will be constructed; and (ii) be consistent with Section 19.16.022(B) of this chapter.

Requirements for Permit Issuance. The Conversion or Demolition of existing housing shall be allowed in all zone districts subject to: (i) a zoning clearance as provided in Section 19.08.100 of this title; and (ii) adherence to the terms and conditions of this section. No Demolition permit shall be issued and no land use approval shall be granted for any Residential Project involving the Conversion or Demolition of any residential dwelling until the Developer has satisfactorily completed the requirements of this section (e.g., on-site construction of Affordable Units, alternative equivalent action(s) or payment of the Housing In-Lieu Fee).

Table 7: Replacement Housing Basic Provisions
	Within Redevelopment Project Area		Outside Redevelopment Project Area
	Developer	Agency	Developer	Agency
Project Exemptions	Owner-Occupied Public Nuisances Non-Conform Uses	None	Owner-Occupied Public Nuisances Non-Conform Uses	None
Target Households	Occupancy Known: Same as Displaced Households Occupancy Unknown: Proportionate to Housing Elements Needs*
Production Schedule	Developer: 10 years Agency: 4 years
Retention Period	Renter-Occupied Dwellings: 55 Years Owner-Occupied Dwellings: 45 Years

Notes:
*The distribution between the Lower and Moderate Income categories shall be based on the percentage which these categories represent of total housing needs as identified in the Housing Element according to the following formula:
Lower Income Percentage = Lower Income Needs/(Lower Income Needs + Moderate Income Needs)
Moderate Income Percentage = Moderate Income Needs/(Lower Income Needs + Moderate Income Needs)

(Ord. 02-03 Exh. A, 2002; Ord. 06-10 §§ 2(D)(6), (7), 2006)

§ 19.16.017 Relocation assistance and advisory services.

Applicability. The provisions of this section apply to all Residential Projects resulting in the Conversion or Demolition of a Residential Rental Unit regardless of: (i) the number or location of dwelling units that are destroyed, converted or removed on or from a single parcel of record or as part of a single project; (ii) whether the dwelling units are occupied by Target Households or persons or families who do not otherwise qualify as being Very Low, Lower or Moderate Income; (iii) whether the Conversion or Demolition results from code enforcement initiated by a Local Enforcement Agency or voluntary acts of a Developer; or (iv) whether the Conversion or Demolition is otherwise exempt from the replacement housing provisions of Section 19.16.016.

Basic Provisions. Any tenant who is displaced or subject to displacement from a Residential Rental Unit as a result of the following actions shall be entitled to receive relocation benefits from the Developer as specified in this section: (i) an order to vacate or an order requiring the vacation of a Residential Rental Unit by a Local Enforcement Agency as a result of a violation so extensive and of such a nature that the immediate health and safety of the residents is endangered; or (ii) a notice to vacate issued by a Developer in conjunction with a Residential Project.

Timing of Payments. The relocation benefits required by this section shall be paid by the Developer or designated agent to the tenant within ten days after the date that the order to vacate is first mailed to the tenant and posted on the premises, or at least 20 days prior to the vacation date set forth in the order to vacate, whichever occurs later. If there are fewer than ten days between the first posting and mailing of the order to vacate and the vacation date, the relocation benefits shall be paid by the Developer or designated agent to the tenant within 24 hours after the notice is posted and mailed. The Local Enforcement Agency shall attempt to provide telephonic or written notice to the owner to notify the owner that the benefits are payable immediately. Failure to provide the notice as specified in this section shall not relieve the Developer of any obligations imposed by this section.

Noticing Requirements. If a tenant is entitled to relocation benefits pursuant to this section, the Developer shall provide either telephonic or written notice to the tenant of his or her entitlement to the benefits. Written notice may be satisfied by posting a bilingual (English/Spanish) written notice on the premises stating that tenants may be entitled to relocation benefits. Any order by a Local Enforcement Agency that requires a tenant's displacement and is issued to an owner, designated agent, or tenant, shall be accompanied by a summary of the provisions of this section. Failure to provide a summary shall not relieve any person of the obligations imposed by this section.

Relocation Benefits. A relocation payment shall be made available by the Developer or designated agent to the tenant in each residential unit and shall be a sum equal to the greater of: (i) two times the actual monthly rent; or (ii) six times the monthly difference between the Affordable Housing Price (rent) and the current fair market rent published by the Santa Barbara County housing authority in conjunction with the Federal Section 8 Housing Assistance Payments Program (determined by the Department of Housing and Urban Development pursuant to Section 1437f of Title 42 of the United States Code). In addition, the relocation payment shall include an amount, as determined by the Local Enforcement Agency, sufficient for utility service deposits. The relocation benefits shall be paid by the owner or designated agent in addition to the return, as required by law, of any security deposits held by the owner. The relocation benefits shall be payable on a per residential unit basis.

Penalty for Noncompliance. Any Developer or designated agent who does not make timely payment as specified in subsection (B)(1) of this section shall be liable to the tenant for an amount equal to one and one-half times the relocation benefits payable pursuant to subsection (B)(3) of this section. The foregoing penalty shall not apply when relocation benefits are payable fewer than ten days after the date the order to vacate is first mailed and posted on the premises, if the Developer or designated agent makes the payment no later than ten days after the order is first mailed and posted.

Exceptions. No relocation benefits pursuant to this section shall be required under the following circumstances: (i) any tenant who has caused or substantially contributed to the condition giving rise to the order to vacate, nor shall any relocation benefits be payable to a tenant if any guest or invitee of the tenant has caused or substantially contributed to the condition giving rise to the order to vacate; or (ii) the unit or structure became unsafe or hazardous as the result of a fire, flood, earthquake, or other event beyond the control of the owner or the designated agent and the Developer or designated agent did not cause or contribute to the condition. Determinations as to whether either of the foregoing applies shall be vested with the Local Enforcement Agency and shall be rendered at the same time that the order to vacate the tenants is made.

Appeals. A Developer or designated agent shall have the right to appeal determinations of the Local Enforcement Agency relative to the payment of relocation benefits under the provisions of Section 19.16.022(D). If such an appeal is filed, the Developer shall bear the burden of presenting substantial evidence to support the appeal and justify a reduction, adjustment or waiver of relocation payments.

Elective Payments. If the Developer or designated agent fails, neglects, or refuses to pay relocation payments to a displaced tenant or a tenant subject to displacement, except in the situations described in subsection (B)(3)(b) of this section, the Local Enforcement Agency may advance relocation payments on the Developer's behalf. If the Local Enforcement Agency, at its sole discretion, offers to advance relocation payments as provided in subsection B of this section, the Local Enforcement Agency shall be entitled to recover from the Developer any amount paid to a tenant except payments made pursuant to subsection (C)(3) of this section. The Local Enforcement Agency shall also be entitled to recover from the Developer or designated agent an additional amount equal to the sum of one-half the amount so paid, but not to exceed $10,000, as a penalty for failure to make timely payment to the displaced tenant, and the Local Enforcement Agency's actual costs, including direct and indirect costs, of administering the provision of benefits to the displaced tenant.

Cost Recovery. Any amounts paid by the Local Enforcement Agency, except pursuant to subsection (C)(3) of this section, and any applicable penalties and actual costs may also be placed as a lien against the property by the Local Enforcement Agency by recording the lien in the recorder's office of the county of Santa Barbara. Prior to instituting any action to collect from the Developer or designated agent relocation benefits paid pursuant to this section, or to impose a lien therefor, send to the Developer or designated agent by first-class mail, postage prepaid, at the owner's address as shown on the last equalized assessment roll, an itemized accounting of all benefits paid by the Local Enforcement Agency to the Developer's tenants, and any penalties or costs the Local Enforcement Agency is seeking to recover. If the Developer or designated agent contends that not all of the benefits are chargeable to the Developer or designated agent because the recipients were not displaced tenants, no benefits were payable pursuant to subsection (B)(3)(b) of this section, or on other grounds, the Developer or designated agent shall submit a written appeal to the city within 20 days after receipt by the owner or designated agent of the itemized accounting. The appeal shall be filed and processed in the time and manner stipulated in Section 19.16.022(D). The final decision of the local appellate body shall be subject to Section 1094.5 of the Code of Civil Procedure. If the Developer fails to obtain a more favorable decision than that set forth in the itemized accounting, the Developer or designated agent shall be liable to the Local Enforcement Agency for the costs of the administrative hearing and appeal, not to exceed $5,000. The failure to receive the itemized accounting shall not relieve the Developer of any obligation to reimburse the Local Enforcement Agency.

Nonreimbursable Payments. If there are fewer than ten days between the first posting and mailing of the order to vacate and the vacation date as provided in subsection (B)(1) of this section, and if the Local Enforcement Agency advances relocation benefits to any tenants prior to the expiration of the ten-day period, the Developer shall not be required to reimburse the Local Enforcement Agency for a charge identified on the itemized accounting described in subsection (C)(1) of this section, if the Developer contests the charge within 30 days after the itemized accounting is mailed to the Developer or designated agent pursuant to subsection (C)(1) of this section. The Developer or designated agent shall pay the charge that was the subject of the appeal pursuant to subsection (C)(1) of this section within 30 days after an adverse decision by the city on the appeal is mailed to the Developer.

Optional Benefits. In the situations described in subsection (B)(3)(b) of this section, the Local Enforcement Agency, at its sole discretion, may pay relocation payments to the tenants of units within a multi-unit structure who did not cause or substantially contribute to the uninhabitable condition.

Voluntary Payments. Nothing in this section shall be construed to require the Local Enforcement Agency to pay any relocation benefits to any tenant, or assume any obligation, requirement, or duty of the Developer pursuant to this section.

Abatement of Substandard Housing Conditions. A tenant shall not be required to move until proper notice has been given and relocation payments have been made pursuant to this section, except or unless the conditions of the property are so severe as to pose an immediate and serious threat to the health or safety of the occupants, in which case: (1) the Local Enforcement Agency may suspend the requirement for notice and payment of relocation assistance prior to displacement; (2) the property shall be vacated in the time and manner provided by law; and (3) prior to displacement of the occupants, the Local Enforcement Agency shall contact the Santa Barbara County housing authority (SBCHA) and Santa Ynez Valley People Helping People regarding the impending displacement, request that those agencies provide a preference for the occupants for subsidized housing, and provide the occupants with a referral to the SBCHA and People Helping People. In the event that the property must be vacated before the notice and relocation payment requirements are satisfied, the Developer shall remain responsible for payment of relocation assistance after the tenants have been displaced.

(Ord. 06-10 § 2(G)(2), 2006)

§ 19.16.018 Density bonus.

Purpose. The purpose of this section is to implement Government Code Section 65915. If any provision of this chapter should conflict with a provision of such statute, the statutory provision shall prevail.

Definitions. Terms defined in Government Code Section 65915 shall have the same meaning in this chapter.

Eligibility.

Pursuant to eligibility defined in Government Code Section 65915, the city shall grant a density bonus, the amount of which shall be as specified in Government Code Section 65915, and incentives or concessions, the amount of which shall be as specified in Government Code Section 65915.

The applicant for a density bonus may submit a proposal for the waiver or reduction of development standards that have the effect of physically precluding the construction of a housing development incorporating the density bonus and any incentives or concessions granted to the applicant, except as restricted by Government Code Section 65915.

The applicant may request a reduction in parking requirements in accordance with Government Code Section 65915.

The density bonus units shall not be included when calculating the total number of housing units that qualify the housing development for a density bonus, except as otherwise required by Government Code Section 65915.

The amount of the density bonus shall not exceed the percentages established in Government Code Section 65915.

An applicant shall not receive a density bonus or any other incentive or concession if the housing development would be excluded under Government Code Section 65915, which includes projects that fail to "replace" existing housing units, as required by state law.

A development application within the Avenue of Flags Specific Plan area which has been granted density bonus requests under this section shall be eligible for the Development Opportunity Reserve (DOR) program, as defined in the specific plan, on a project-specific basis, under the discretion of the city council, per the Avenue of Flags Specific Plan.

Application Requirements.

Applications for a density bonus shall be filed with the planning director on a form approved by the director.

The density bonus application shall be filed and processed concurrently with an application for a land use permit and the applicant shall pay the density bonus application fee, established by the city council.

The application shall clearly indicate the number of base units allowed by the General Plan and zoning regulations, the number of density bonus units requested, the number of affordable units, and the affordability levels that will be included in the proposed project.

The application shall specify requested incentives or concessions, waivers or reductions of development standards, and parking ratios.

The application shall include reasonable documentation to establish eligibility for a requested density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios, to the satisfaction of the planning director.

A request for a waiver or reduction of development standards shall be accompanied by documentation demonstrating that the waiver or reduction is physically necessary to construct the housing development with the additional density allowed pursuant to the density bonus and incorporating any incentives or concessions required to be granted.

The application shall be processed in a manner consistent with the timelines specified in Government Code Section 65943.

Continued Affordability. The continued affordability requirements of Government Code Section 65915 shall be required for all density bonus applications, including that the units be deed-restricted for at least 55 years if renter occupied, and at least 45 years if owner occupied.

Unit Mix Requirements.

For any development project that is granted a density bonus or other benefit pursuant to this chapter, the affordable units shall be integrated with the market rate units so that there is a mix of affordable and market rate units, if any, in each building of the development project.

All affordable units shall be comparable to market rate units with regard to total square footage, bedroom size, amenities, design, use of materials, finish quality, and exterior appearance.

Affordable Unit Construction Timing. The affordable units that qualify the project as eligible for a density bonus shall be constructed concurrently with or prior to the construction of any market rate units.

Projects with a Childcare Facility.

When an applicant proposes to construct a housing development that includes a childcare facility that will be located on the premises of, as part of, or adjacent to, the project, the city and the applicant shall adhere to the requirements of Government Code Section 65915.

The city shall not be required to provide a density bonus or concession or incentive for a childcare facility if it finds, based upon substantial evidence, that the community has adequate childcare facilities.

Findings.

The city shall approve a request for a concession or incentive, waiver, or reduction of development standards unless it makes one or more of the following findings:

The concession or incentive does not result in identifiable and actual cost reductions, consistent with Government Code Section 65915, 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 Government Code Section 65915.

The request would have a specific, adverse impact, as defined in Government Code 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 without rendering the development unaffordable to low-income and moderate-income households;

The request would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or

The request would be contrary to state or federal law.

The application of a development standard included in a request for a waiver or reduction of development standards does not have the effect of physically precluding the construction of a housing development at the density allowed by the density bonus and with the incentives or concessions requested by the applicant;

Appeals. Appeals of any decision of the Planning Director pursuant to this chapter shall be heard in compliance with the procedures of Section 19.10.130 of this title.

(Ord. 25-02, 5/8/2025)

§ 19.16.020 Reserved.

Prior History: Ord. 02-03 Exh. A, 2002; Ord. 06-10 §§ 2(B)(1), (2), 2006; Ord. 07-01 § 4, 2007; Ord. 19-03 § 2, 2019; repealed by Ord. 25-04, 5/22/2025.

§ 19.16.021 Residential development capacity.

Applicability. The provisions of this section apply to all zoning ordinance amendments and rezonings (as authorized and regulated in Section 19.10.110) which are initiated by a Developer; and result in a reduction of residential development capacity by virtue of: (i) a redesignation of land use from residential to a nonresidential; or (ii) a decrease in residential density (i.e., downzoning). The provisions of this section do not apply to zone changes and ordinance amendments that are initiated by the city council.

Basic Provisions. No amendment to the municipal code or rezoning of residentially designated property shall be permitted which results in a reduction of residential development capacity unless: (i) the city council determines that such change is consistent with findings required by Section 19.10.110(C); and (ii) the Developer compensates for the difference between the number of Affordable Units computed pursuant to Section 19.16.014(B) prior to the change compared to the number of Affordable Units computed after the change based on maximum allowable densities (hereinafter referred to as the "inclusionary differential").

Illustrative Calculation. By way of example, and for illustrative purposes only, where a parcel of ten acres is presently zoned RM-16, the maximum allowed density would be 160 units and the inclusionary requirement is computed as 24 dwellings (i.e., ten acres times 16 du/acre times 15% equals 24 Affordable Units). If a Developer requests a zone change to RS-10, the maximum allowed density would be reduced to 100 units and the resulting inclusionary requirement is computed as 15 dwellings (i.e., ten acres times ten du/acre times 15% equals 15 Affordable Units). The inclusionary differential is computed as nine dwellings (i.e., 24 units minus 15 units equals nine Affordable Units). Except as provided in Section 19.10.013(B)(8)(a)(2), the affordable unit differential shall be satisfied by construction on-site as part of, and concurrent with development of, a Residential Project.

Equivalent Action. Subject to review and approval by the city council, a Developer may satisfy the inclusionary differential through one or more of the following means:

Construction of Affordable Units on the site which is rezoned or otherwise reduced in density;

Dedication of vacant land;

Construction of Affordable Units on another site;

Acquisition and enforcement of rental/sales price restrictions on existing standard dwelling units;

Substantial Rehabilitation of existing substandard dwellings; or

Payment of a Housing In-Lieu Fee.

(Ord. 06-10 § 2(C), 2006)

§ 19.16.022 Administration (Affordable Housing Trust Fund, Affordable Housing Agreement, Income Verification and Appeals).

Affordable Housing Trust Fund. All Housing In-Lieu Fees collected under this chapter shall be deposited into an Affordable Housing Fund ("Housing Fund"). Separate accounts within such Housing Fund may be created from time to time to avoid commingling as required by law or as deemed appropriate to further the purposes of the Fund. The Housing Fund shall be administered by the city manager who shall have the authority to govern the Housing Fund consistent with this chapter, and to prescribe procedures for said purpose, subject to approval by the city council. Expenditures by the housing director from the Housing Fund shall be controlled, authorized and paid in accordance with general city budgetary policies. Execution of contracts related to the use or administration of Housing Fund monies shall be in accordance with standard city council policy.

Purposes and Use of Funds. Monies deposited in the Housing Fund along with any interest earnings on such monies shall be used solely to increase and improve the supply of housing affordable to Households of Very Low, Lower and Moderate Income including, including, but not limited to (i) acquisition of real property, buildings and structures; (ii) completion of on and off-site improvements; (iii) donation of real property to private or public entities; (iv) construction and rehabilitation of buildings and structures; (v) payment of insurance premiums, principal and interest, debt financing and carrying charges; (vi) subsidization of market rate housing; (vii) preservation of mobile homes and subsidized housing "at risk" of Conversion to market rates; and (viii) reasonable planning and administrative expenses. In addition, monies deposited in the Housing Fund may be used for the special purposes set forth below.

Relocation Assistance. If Affordable Units are not otherwise available, monies deposited in the Housing Fund may be used to provide relocation assistance for Very Low, Lower and Moderate Income Households that are involuntarily displaced from housing as a direct result of its Conversion or Demolition. This includes Target Households displaced from housing not otherwise subject to Replacement Housing requirements prescribed in Section 19.16.016(A) of this chapter. Such assistance may only be provided to Displaced Persons: (i) who are Very Low, Lower or Moderate Income Households and for whom replacement housing is not immediately available; (ii) who lawfully inhabited the demised premises a minimum of 90 days prior to the date of displacement; and (iii) who are not otherwise entitled to relocation assistance prescribed by state or federal law. Relocation assistance, if provided, shall be subject to availability and based on need, not to exceed the lesser of: (i) the amount of Housing In-Lieu Fees assessed for one dwelling; or (ii) the unencumbered balance of monies in the Housing Trust Fund, net of funds expressly reserved for Affordable Units for which the Agency is obligated. Relocation payments, when disbursed from the Housing Trust Fund, shall automatically defer the timetable required to provide Affordable Units of equivalent value.

Rental Loss Compensation. In exchange for exercising its right of first refusal pursuant to Section 19.16.022(B)(1) of this chapter, the city may disburse monies deposited in the Housing Fund to compensate Developers for a sum equal to the total lost rent incurred from the date that an Affordable Unit becomes vacant until it is reoccupied by a Target Household. The city's obligation to pay rental loss compensation shall only apply if the city notifies the Developer in writing of its intent to exercise its right of first refusal within ten calendar days after the date the city receives written notification from the Developer as to the vacancy of an Affordable Unit.

Planning and Programming. Monies in the Housing Fund shall be used in accordance with the goals, policies, programs and priorities identified in the City's Housing Element and the Agency's Implementation Plan. Monies in the Housing Fund may be disbursed, hypothecated, collateralized or otherwise employed for these purposes from time to time as the city council determines is appropriate to accomplish the purposes of the Housing Fund. These uses include, but are not limited to, assistance to private, public and non-profit housing sponsors, equity participation loans, grants, pre-homeownership co-investment, predevelopment loan funds, participation leases, or other public/private partnership arrangements.

Affordable Housing Agreement. The purpose of the Affordable Housing Agreement is to create easements, conditions, covenants, restrictions, liens, servitudes, and charges upon and subject to which Affordable Units and each and every part and portion thereof shall be occupied, owned, maintained, held, leased, rented, sold, and conveyed. An Affordable Housing Agreement shall be required for all Residential Projects governed by this chapter. Each Agreement shall be subject to review and approval by the city council prior to execution. Prior to the issuance of certificates of occupancy or approval of the final inspection for Affordable Units, Affordable Housing Agreements and, if the Affordable Units are owner-occupied, resale restrictions, deeds of trust and/or other such documents, shall be recorded against parcels having such Affordable Units. The form and content of the Affordable Housing Agreement shall be determined by the city and, among other things, the items listed below.

Occupancy Preferences. The city shall have the right of first refusal to occupy any and all Affordable Units with Target Households of its choosing. This right shall be: (i) defined in the Affordable Housing Agreement; and (ii) effective upon issuance of certificates of occupancy and anytime thereafter should any Affordable Unit become vacant. In exchange for the city exercising its right of first refusal, the Developer shall be entitled to a rental loss compensation payable by the city in a sum equal to the total lost rent incurred from the date that an Affordable Unit becomes available until it is occupied. In exercising this prerogative, the city shall give preference to the following Target Households, in the order listed: (i) Displaced Persons whose dislocation involves a Residential Project within the city; (ii) Disabled Persons; (iii) population groups with special needs as identified in the city's Housing Element (e.g., handicapped, elderly, farm workers, and single family Households); and (iv) all other Very Low, Lower and Moderate Income Households. Within these categories, preference will be given to current residents of the city and priority will be assigned based on date of application.

Resale of Affordable Units. The maximum sales price permitted on resale of an Affordable Unit intended for owner-occupancy shall not exceed the seller's purchase price, adjusted for the percentage increase in the Area Median Income since the seller's purchase, plus the value of substantial structural or permanent fixed improvements to the property and the cost of reasonable seller's broker fee as determined by the housing director. For purposes of this subparagraph, Area Median Income shall be calculated based upon the occupancy levels used to determine the original affordable sales price. The resale restrictions shall provide that in the event of the sale of an Affordable Unit intended for owner-occupancy, the city shall have the right to purchase or assign its right to purchase such Affordable Unit at the maximum price that could be charged to an eligible Household. In-lieu of resale and re-occupancy by a Target Household, the city may permit sale of owner-occupied Affordable Units prior to the expiration of the 45 year period pursuant to an adopted program which protects the city's investment of moneys from the Housing Trust Fund, including, but not limited to, equity sharing which that permits retention by the seller of a portion of sales proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the city and deposited in the Housing Trust Fund.

Target Household Eligibility. No Household shall be permitted to occupy an Affordable Unit, or purchase an Affordable Unit for owner-occupancy, unless the city has approved the Target Household's eligibility. If the city maintains a list of eligible Households as provided in Section 19.16.22(B)(1) of this chapter, Households selected to occupy Affordable Units shall be selected first from that list to the extent provided in the Affordable Housing Agreement or resale restrictions.

Annual Monitoring and Transfer Fees. For each rental Affordable Unit required under this chapter, the Developer (and his or her successor's and assigns) may be required to pay an annual monitoring fee for the term of required affordability. Such fee shall be specified in the Housing Affordability Agreement. For each owner-occupied Affordable Unit, the current owner may be required to pay a transfer fee for any change of ownership during the term of required affordability. Such fee shall be specified in the resale restrictions required by Section 19.16.022(B)(2) of this chapter.

Deferral of Development Impact Fees. To the maximum extent feasible, the city will defer Development Impact Fees for each Affordable Unit until issuance of certificates of occupancy. The type of Development Impact Fees to be deferred shall be determined on a case-by-case basis taking into account specific costs and impacts uniquely attributable to each Residential Project. In general, the policy of the city shall be to defer payment of Development Impact Fees until the time that actual costs or impacts arise for which the fees are assessed including, for example, delaying payment of sewer and water connection fees until these utilities are actually placed in service.

Fair Employment and Housing Act. The Fair Employment and Housing Act prohibits discrimination in all aspects of housing (rental, lease, terms and conditions, etc.) because of a person's disability. Disabled Persons have the right to use the services of a guide, signal or service dog or other such designated animal and to keep such animals in or around their dwellings. At the request of a Disabled Person (or by someone acting on behalf of such person with his or her written consent), the Developer of each Affordable Unit (and each subsequent owner thereof) must make reasonable accommodations in rules, policies, practices or services when these accommodations may be necessary to afford a Disabled Person equal opportunity to use and enjoy a dwelling. The Developer (and each subsequent owner of an Affordable Unit) must allow a Disabled Person (at the tenant's expense or at the expense of someone acting on behalf of such person with his or her written consent) to reasonably modify existing premises if the modifications are necessary to afford the Disabled Person full enjoyment of the premises. These provisions shall be stipulated in the Affordable Housing Agreement.

Affirmative Marketing. The following requirements shall be incorporated into all Affordable Housing Agreements:

Fair Housing. The Developer shall carry out an affirmative program to attract tenants, regardless of sex, of all minority and majority groups to the encumbered property, publicizing to minority persons the availability of housing opportunities regardless of race, color, religion, sex or national origin, through the type of media customarily utilized by the qualified tenants, including minority publications or other minority outlets which are available in the housing market area, and all advertising shall include either the HUD-approved equal housing opportunity logo or slogan or statement and all advertising depicting persons shall include persons of majority and minority groups, including both sexes;

EEO Notice (Office). The Developer shall prominently display in all offices in which sale or rental activity pertaining to the encumbered property takes place the HUD-approved Fair Housing Poster and include in any printed material used in connection with said sales or rentals, the HUD-approved equal housing opportunity logo or slogan or statement;

EEO Notice (Property). The Developer shall post in a conspicuous position within the encumbered property a sign displaying prominently either the HUD-approved equal housing opportunity logo or slogan or statement; and

Fair Housing Compliance. As part of the annual reporting process, the Developer shall document any and all claims of housing discrimination filed in regard to the encumbered property and the disposition of such claims.

Expiration Notice. Prior to expiration of the retention period for Affordable Units, written notice shall be given by the Developer to the city a minimum of two years before termination of the Affordable Housing Agreement.

Income Verification. In determining the income, occupancy and eligibility of Target Households, data shall be obtained and verified by such methods as may be necessary and reasonable to ensure full, true and complete information from which to base determinations under this chapter. The Developer or Target Household, as the case may be, shall certify, under penalty of perjury, that all information furnished as part of the application is true and complete. Resultant determinations of eligibility shall remain in full force and effect for a period of six months from the date of initial application, after which time new application and verification shall be required. Income verification shall be performed in accordance with the standards and criteria set forth below.

Income Basis. If circumstances are such that it is not reasonably feasible to anticipate a level of income over a 12 month period, a different basis may be used including, but not limited to, a shorter time frame of projection for a period of time preceding the date of application. Circumstances wherein an adjustment in the basis of determining Household Income is warranted include:

Unemployment. A person is unemployed at the time of application and there are no anticipated prospects of re-employment.

Self-Employment. A person is self-employed and annual income is either inconstant due to fluctuations in business or undeterminable due to the recentness of such employment.

Seasonal and Temporary Employment. The conditions of employment and/or receipt of income are so unstable as to invalidate usual and normal standards of determination.

Verification Standards. The following, although not all inclusive, represent the types of verification required for various sources and elements of Household Income:

Regular Employment. Letters and statements from employers, pay stubs and similar such receipts evidencing compensation, and/or IRS Tax Returns.

Self-Employment. Statements from Certified Public Accountants, notarized declarations, and/or IRS Tax Returns for three years preceding the date of application.

Social Security Benefits. Award letter, bank statement evidencing direct deposit of benefits, and/or verification statement from the Social Security Administration.

Aid to Families With Dependent Children. Award letter and/or verification statement from the Public Social Services Agency.

Child Support/Alimony. Copy of divorce papers and/or verification statement from ex-spouse.

Veterans Benefits. Award letter, statement from bank evidencing direct deposit of benefits, and/or verification statement from the Veterans Administration.

Disability Benefits. Award letter, bank statement evidencing direct deposit of benefits, and/or statement of verification of payer.

Unemployment Benefits. Award letter, bank statement evidencing direct deposit of benefits, and/or verification statement from the California State Department of Employment Development.

Retirement/Pension Benefits. Award letter, check stub, and/or verification statement from the pension fund.

Savings Account Interest. Copy of quarterly statement, IRS tax returns, and/or verification statement from bank or savings and loan.

Dividends. Copy of statement with amount received and/or IRS tax returns.

Rental Income. Statement of net cash flow as verified by IRS tax returns.

Liquid Assets (i.e., Savings and Checking Accounts). Copy of savings passbook showing current balance, month or quarter-ending bank statement, and/or verification statement from financial institution.

Marketable Securities. Copy of stock/bond and/or verification statement from benefactor.

Equity in Real Estate. Copy of deed verification statement from mortgagor as to mortgage balance together with assessor's valuation records, verified purchase price and/or independent appraisal.

Appeals. A developer of any residential project subject to the requirements of this chapter may appeal to the city council for a reduction, adjustment, or waiver of the requirement(s) based upon a showing by the developer that imposition of such requirement(s) on the residential project will: (1) cause undue hardship and that such residential project will contribute significantly to affordable housing opportunities in the city; or (2) defeat the general purposes of this chapter. Examples of residential projects for which a reduction, adjustment or waiver may be appropriate include, but are not limited to, sweat equity homeownership programs and similar special purpose government and nonprofit programs with statutory constraints that conflict with the technical requirements of this chapter. Appeals under this chapter shall be filed and processed in the time and manner prescribed in Chapter 1.24 of the Buellton Municipal Code. The appellant shall bear the burden of presenting substantial evidence to support the appeal including comparable technical information to support appellant's position: (1) identifying all overriding conditions impacting the residential project that prevent developers from meeting the requirements of this chapter; (2) sufficient independent data, including appropriate financial information, that supports the developer's claim that it is not feasible to construct the required affordable units or pay requisite fees; and (3) a detailed analysis of why the various concessions and incentives identified in Section 19.16.018 of this chapter cannot mitigate the developer's identified conditions that are preventing him or her from complying with the requirements of this chapter.

Enforcement. It is unlawful, a public nuisance and a misdemeanor for any person to sell or rent an affordable unit at a price or rent exceeding the maximum allowed under this chapter or to a household not qualified under this chapter. The remedies provided for in Section 19.10.300 of this title shall be cumulative and not exclusive and shall not preclude the city from any other remedy or relief to which it otherwise would be entitled under law or equity.

(Ord. 02-03 Exh. A, 2002; Ord. 06-10 §§ 2(F)(2), (3), (H), (I), 2006)