The purpose of this chapter is to:
Provide a chapter implementing Program 1.2, Inclusionary Housing
Requirements for Residential Development, of the city's housing element.
Promote the provision of housing for all economic segments of
the community.
Ensure that affordable rental housing is managed, maintained
and operated consistently with its status as an important community
asset.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
The city council finds that:
The city, as a member of the Sacramento Area Council of Governments
has received housing development goals, which require the use of a
variety of tools and methods to address the housing needs of very
low, lower and moderate income households.
The housing element of the city's general plan, which guides
and directs new growth and development, calls for an implementing
chapter to further the affordable housing goals of the city and address
state housing requirements, including the city's regional "fair share"
allocation pursuant to Government Code Section 65584. The lack of
affordable housing has a direct impact upon the health, safety and
welfare of city residents.
Federal and state housing subsidy programs are insufficient
to address the housing needs of very low and lower income households.
Affordable rental housing developed under this chapter represents
a unique and valuable community asset. Unlike for-sale housing, the
households benefiting directly from affordable rental housing have
only a limited ability to control such issues as maintenance and repair
of units, leasing and operating practices, and on-site security. Ensuring
that this asset is well managed and maintained for the duration of
the affordability controls furthers important public goals by providing
a safe and healthy living environment for households most in need,
and by ensuring that rental housing developments do not deteriorate
and create or exacerbate urban blight within the city.
Certain for-sale housing developments contain significant areas
and buildings that are under common ownership and control, typically
through a homeowner's association, and thus present some of the same
issues that arise in the case of rental housing. For that reason it
is important to ensure that such common areas and buildings are also
well managed and maintained.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
means the agreement described in Section 15.40.100 of this chapter between the developer of a residential project and the city detailing how a residential project's inclusionary requirements will be met.
means, for residential projects with for-sale units, a monthly
payment which shall not exceed the product of thirty percent of seventy
percent of the area median income, adjusted for household size appropriate
for the unit and inclusive of mortgage principal and interest, property
taxes, insurance, and any applicable special taxes or homeowners'
association dues. As used in this section, "appropriate for the unit"
means a household of one person in the case of a studio unit, two
persons in the case of a one-bedroom unit, three persons in the case
of a two-bedroom unit, four persons in the case of a three-bedroom
unit, and five persons in the case of a four-bedroom unit.
means an affordable rent determined in accordance with any
state or federal funding program actually used to finance development
or construction of the units within a particular residential project.
If no such state or federal funding program is involved, or if the
program does not specify how affordable rent is to be determined,
"affordable rent" shall have the meaning as set forth in Health and
Safety Code Section 50053, as that section may be amended from time
to time.
means a dwelling unit which, pursuant to a recorded instrument,
may only be sold or rented to a household of a designated income or
for a restricted sale price or rent.
means area median income for Yolo County as published by
the California Department of Housing and Community Development pursuant
to Health and Safety Code Section 50093.
means the city of West Sacramento.
means the city manager of the city or the city manager's
designee.
means the owner of any real property upon which a residential
project is to be constructed or the owner's duly authorized designee.
means the standards governing development of real property
within the city as set forth in the city's municipal code, uncodified
ordinances, and any applicable regulations adopted pursuant thereto.
has the meaning set forth in the zoning regulations. For purposes of this chapter, the term "dwelling unit" does not include "secondary units" as defined in Chapter 17.41.
means that even after complying with the requirements of
this policy, the residential project as a whole remains reasonably
capable of being financed, built and marketed, given the economic
conditions prevailing at the time of approval of the affordable housing
agreement and taking into account the incentives and alternatives
that may be made available to the residential project and under this
chapter. In all cases, feasibility shall be determined by the city
council in its sole discretion.
means attached or detached dwelling units developed as part
of a residential project which the developer intends will be offered
for individual sale or which are customarily offered for individual
sale, including, but not limited to, single-family detached homes,
duplex units, condominiums and cooperatives.
means the general plan of the city of West Sacramento, as
it may be amended from time to time.
has the same meaning as "family" as set forth in the zoning
regulations.
means a separate fund administered by the city into which
in-lieu fees are deposited. Funds deposited into the housing trust
fund shall be used to assist in the development of affordable housing
within the city.
means those dwelling units developed in accordance with an
affordable housing agreement to satisfy the requirements of this chapter,
including for-sale inclusionary units available at an affordable housing
cost, and rental inclusionary units available at an affordable rent.
means lower income as defined in Health and Safety Code Section
50079.5 as amended from time to time.
means all adjacent land within the city owned or controlled
by the same developer or owner, the property lines of which are contiguous
at any point, or the property lines of which are separated only by
a public or private street, road or other public or private right-of-way.
means this inclusionary housing ordinance of the city of
West Sacramento.
shall mean that not more than forty percent of the units
within a residential project or building phase thereof are inclusionary
units.
includes the person, persons, corporation, or public or private
entity having sufficient legal interest in real property to commence
and maintain development of a residential project on the real property,
or the owner's agent, assignee or successor in interest.
means dwelling units developed as part of a residential project
which the developer intends will be offered for lease or rent or which
are customarily offered for lease or rent.
means any parcel of land that has been legally created with
the intention that it will be used for the development of one or more
dwelling unit(s).
means any project involving the construction of five or more
dwelling units at one location and requiring the issuance of a building
permit, or the creation of five or more residential lots at one location,
including in the aggregate all dwelling units or residential lots
for which building permits or discretionary approvals have been applied
for from or granted by the city. Where all or a portion of the inclusionary
units for a residential project are built off-site, the term "residential
project" shall also include all residential units built at the off-site
location(s), including all inclusionary units and market-rate units
built as part of the same development.
means very low income as set forth in Health and Safety Code
Section 50105, as that section may be amended from time to time.
means Title 17 of the municipal code of the city, as it may
be amended from time to time.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
All residential projects within the city shall comply with the
requirements set forth in this chapter, with the following exceptions:
A.
Residential
projects which have acquired a vested right under California law to
proceed with development without complying with this chapter.
B.
Residential
projects with existing affordable housing agreements executed prior
to the effective date of the ordinance codified in this chapter shall
comply with the terms of those agreements.
1.
The city council may approve amendments to existing affordable housing agreements executed prior to the effective date of the ordinance codified in this chapter to include alternatives in Section 15.40.070(B) to allow the developer to satisfy all or part of the inclusionary housing requirement.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
No building permit shall be issued and no use permit, final
parcel or subdivision map or other agreement with the city shall be
approved in connection with any residential project until the city
manager confirms in writing one of the following:
A.
An
affordable housing agreement has been executed by the developer and
the city and a memorandum of that agreement recorded with the Yolo
County recorder.
B.
The
developer has requested and the city council has determined that it
is not feasible to comply with the requirements of this chapter. Full
compliance shall be presumed feasible unless the city council expressly
determines otherwise. Any request by a developer for such a determination
shall be made no later than the time of application for the city approval
that triggers the obligation to comply with this chapter.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
A.
Calculation
of Inclusionary Housing Requirements.
1.
Rental
Units. Ten percent of all rental units in a residential project shall
be made available at affordable rents to very low and low income households.
Five percent shall be affordable to very low income households and
five percent shall be affordable to lower income households.
2.
For-Sale
Units. Ten percent of all for-sale units in a residential project
shall be made available at an affordable cost to low income households.
3.
Application
of Fractional Remainders. If the developer elects to build inclusionary
units and the calculation of inclusionary housing requirements yield
fractional remainders, the remainders shall be rounded up to the nearest
whole number.
4.
Substitution of Rental Units for For-Sale Units. The city shall permit a developer to substitute rental units to meet all or a portion of the inclusionary obligation for the residential project. Such units shall be made available at affordable rents in accordance with subsection (A)(1). The decision to substitute rental units for for-sale units shall be made prior to approval of the affordable housing agreement for the residential project.
B.
General
Standards for Development. Except as may otherwise be provided in
the affordable housing agreement for a residential project, a developer
shall comply with all of the following requirements in fulfilling
the obligations under this chapter:
1.
Location
of Inclusionary Units. Inclusionary units shall be built on-site,
within the residential project. Inclusionary units shall generally
be dispersed so as to avoid the over-concentration of inclusionary
units within one portion of the overall residential project.
2.
Timing
of Development. Inclusionary units shall generally be constructed
and offered for sale or rent in accordance with this chapter concurrently
with or prior to completion of market rate units within the residential
project or phase thereof. As used in this chapter, "concurrently"
means that a proportionate share of inclusionary units must be completed
by the time each twenty-five percent of the market rate units within
a residential project are completed.
3.
Exterior
Appearance. Inclusionary units shall be visually and architecturally
consistent with and similar in quality of construction materials to
market-rate units within the residential project or phase thereof.
4.
Size
of Inclusionary Units. Inclusionary units may be smaller than the
market rate units within the residential project, provided that the
inclusionary units contain not less than ninety percent of the interior
living space of the smallest market rate unit within the residential
project. The number of bedrooms in multifamily rental inclusionary
units shall be generally consistent with the bedroom mix of market
rate units within the same residential project.
5.
Development
Standards. Inclusionary units shall comply with the same development
standards applicable to market rate units within the residential project.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
A.
Incentives.
1.
Requests
for regulatory and/or financial incentives will be considered on a
project-by-project basis. All requests for incentives under this chapter
shall be accompanied by such information as the city deems necessary
in order to evaluate the request. Incentives may include, but are
not limited to:
2.
Incentives
must be approved by city council except to the extent the authority
to review and approve such incentives has been delegated to the city
manager.
B.
Alternatives.
1.
The
city council may allow the developer to satisfy all or part of the
inclusionary housing requirement through one of the alternative methods
described in this section if the city council determines, at its sole
discretion, that the alternative will achieve goals set forth in the
city's housing element. In approving any alternative, the city council
may impose such conditions as it deems appropriate in order to further
the purposes of this chapter.
a.
Housing Trust Fund Program. The city council may allow the developer
to satisfy all or part of the inclusionary housing requirement by
participating in the housing trust fund program described in the Book
of City Imposts, Section VIII-N, as that section may be amended from
time to time.
b.
Other Alternatives. The city council, at its sole discretion, may allow the developer to satisfy all or part of the inclusionary housing requirement through another alternative method if the city council determines, at its sole discretion, that the proposed alternative meets the general standards for approval set forth in subsection (B)(2). Possible alternatives may include:
i.
Acquisition, Rehabilitation, and Conversion. The developer may propose to acquire, rehabilitate, and convert existing market rate units to inclusionary units. Duration of affordability restrictions shall meet standards in Section 15.40.100(C).
ii.
Off-Site Construction. The developer may propose to construct inclusionary
units at an off-site location.
iii.
Preservation of At-Risk Units. The developer may propose the acquisition and preservation of at-risk affordable rental units. In order for the proposed units to qualify as inclusionary units, the city manager must determine that the units are currently affordable units available at affordable rents but are at-risk of converting to market rate units within the next five years due to expiring affordability covenants. Duration of affordability restrictions shall comply with standards in Section 15.40.100(C).
2.
General
Standards for Approval. Any proposed alternative by a developer must
comply with the following general standards.
a.
City Approval of Third-Party Developer. If the developer is proposing
to partner with another developer to carry out the alternative, such
as a developer specializing in affordable housing, the city council
must approve the third-party developer.
b.
Financing Plan for Inclusionary Units. The developer must submit
a financial analysis for the proposed alternative project (pro forma)
and such additional information as the city council deems necessary
to demonstrate that sufficient funding will be available to complete,
operate, and maintain the affordable units developed through the proposed
alternative.
c.
Suitability of Alternative Site. If the developer is proposing to
construct inclusionary units off-site, the proposed site must be appropriately
zoned to allow for the proposed development, be physically and environmentally
suitable to develop housing, be of sufficient acreage to develop the
required number of inclusionary units.
The proposed off-site development must include full on- and
off-site infrastructure including paved street access, frontage improvements
(curb, gutter, sidewalk, streetlights, etc.), and utility service
connections (installed underground) if otherwise required by the city
for the development of the site.
d.
Timing of Development. Inclusionary units developed through the proposed
alternative shall generally be constructed concurrently with or prior
to completion of market rate units within the residential project.
If the inclusionary units will not be available for occupancy concurrently
with market rate units within the residential project, the city council
may require that the developer provide performance security in an
amount determined to be sufficient to secure completion of the inclusionary
units.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
A.
The
city manager may promulgate guidelines for the implementation of this
chapter.
B.
The
city council may, by resolution, establish a reasonable fee for the
administration of this chapter, including, but not limited to, the
annual monitoring of units.
C.
Except as otherwise required by this chapter, the city manager is authorized to approve affordable housing agreements. A decision by the city manager approving or denying an affordable housing agreement, or denying any incentive requested by the developer that the city manager is authorized to approve, may be appealed to the city council in accordance with Chapter 1.08. On appeal, the city council shall determine whether the city manager's decision conforms to the requirements of this chapter. No appeal shall be filed under this chapter for the purpose of seeking city council review of the underlying merits of the residential project.
D.
Affordable
housing agreements may be referred to the housing advisory commission
or other city boards or commissions for a recommendation prior to
action on the agreement.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
Inclusionary units will be monitored annually by the city to
verify that the dwelling units are and continue to be affordable.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
A.
Evidence
of compliance with this chapter shall be in the form of an affordable
housing agreement between the developer and the city.
B.
Affordable
housing agreements shall require full compliance with this chapter
and shall specifically address all of the following:
1.
Number,
location, household incomes targeted and affordability of inclusionary
units.
2.
Calculation
of affordable housing price for for-sale units and affordable rent
for rental units.
3.
Duration
of affordability of the inclusionary units.
4.
In
the case of residential projects containing rental units or with significant
areas or buildings under common ownership or control (for example,
condominiums and apartments), provisions designed to ensure that the
residential project will be well managed and maintained throughout
the term of the affordability controls. Prior to initial occupancy,
the developer shall be required to provide, for city review and approval,
a management plan that addresses in detail issues such as maintenance
of common areas and buildings (including the provision of adequate
reserves), operations, and leasing practices. The management plan
shall provide for city enforcement of its terms.
5.
In the case of residential projects that satisfy all or a portion of the requirements of this chapter through an alternative, the affordable housing agreement shall specify how the proposed alternative is consistent with Section 15.40.070.
6.
Any
other provisions required by the city to document the obligations
imposed by this chapter.
C.
Duration
of Affordability Restrictions.
1.
Rental
dwelling units shall remain affordable for no less than fifty-five
years.
2.
For-sale
units shall be regulated with the goal of preserving affordability
for forty-five years. Upon a showing that the owner of the inclusionary
unit has been unable to identify a qualified buyer for the unit after
a good faith affirmative marketing effort, the city manager may:
a.
Permit the owner to sell the unit to a buyer who is not income qualified
but who will remain obligated to resell the unit at an affordable
price to an income qualified household; or
b.
Permit the early termination of the affordability restrictions on
the unit as part of a program that will ensure that the city recaptures
an amount that reflects the gap between the affordable and market
prices for the unit at the time of the unit's sale to the current
owner.
D.
Master
Affordable Housing Agreement. A developer may propose a master affordable
housing agreement for any residential project which the developer
anticipates will be developed over an extended period of time. Developers
are encouraged to request master affordable housing agreements for
residential projects containing a mixture of for-sale and rental units,
or when the developer believes that the project can be enhanced and
the purposes of this chapter better served by modifying the standard
requirements of this chapter. The master affordable housing agreement
will contain the general rules that will govern the development of
the inclusionary units for the residential project. It is anticipated
that details such as, for example, the specific location of the inclusionary
units within the overall project will be addressed through map- or
project-specific affordable housing agreements that will incorporate
the terms set out in the master agreement.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
Nothing in this chapter shall in any way preclude or limit any
aggrieved party from seeking judicial review after such person has
exhausted the administrative remedies provided in this chapter. However,
it shall be conclusively presumed that a litigant has not exhausted
administrative remedies of any and all issues not raised in the administrative
proceedings authorized herein.
(Ord. 05-3 § 1; Ord. 14-4 § 1)
