A. Inclusionary
housing shall be required in the following residential developments:
1. Residential developments outside the Old Town Redevelopment Project, Amendment No. 2 Area. Residential developments of 10 units or more that are not exempt pursuant to Subsection
B, and that are outside of the Old Town Redevelopment Project, Amendment No. 2 Area, shall be required to comply with inclusionary housing requirements in compliance with Section 17.324.030.A unless an alternative method of compliance, per Section
17.324.040 (Alternative Methods of Compliance), is approved by the review authority.
2. Residential developments within the Old Town Redevelopment Project, Amendment No. 2 Area. Within the Old Town Redevelopment Project, Amendment No. 2 Area, residential developments shall be required to comply with inclusionary housing requirements in compliance with Section 17.324.030.B, unless an alternative method of compliance, per Section
17.324.040 (Alternative Methods of Compliance), is approved by the review authority.
B. Exemptions.
The following developments are exempt from the inclusionary housing
requirement of this Chapter:
2. Accessory dwelling units and junior accessory dwelling units.
4. Emergency shelters and any development operated by a non-profit or
social services organization to provide food storage, meal service,
and/or temporary shelter to the homeless.
(Ord. 1670(19) § 11; Ord. 1685(21) § 4; Ord. 1702(23) § 7)
A. Where it is not feasible or desirable for an applicant to meet the inclusionary housing requirements, the applicant may request, as part of the project application, the use of alternative compliance methods, which shall then be considered by the review authority under Subsection
B. Such alternative compliance methods may include, but are not limited to, the following:
1. Housing in-lieu fee. Residential developments may choose to satisfy
the inclusionary requirement by payment of a housing in-lieu fee.
The housing in-lieu fee may be used to satisfy the entire inclusionary
requirement or a portion of the inclusionary requirement.
a. Per-unit housing in-lieu fee.
(i)
The per-unit housing in-lieu fee shall be equal to the maximum
amount of financial assistance available to a single applicant under
the Homebuyer Assistance Program, as established by a resolution of
the City Council, plus a 10% administrative fee. The maximum amount
of financial assistance available to a single applicant under the
Homebuyer Assistance Program shall be the sum of (a), (b), and (c),
below, and shall be calculated in accordance with the formulas and
assumptions stated in the Lompoc Affordable Housing Trust Fund Program
Implementation Plan, as may be amended by resolution of the City Council.
The per-unit housing in-lieu fee shall be the sum of (a), (b), (c),
and (d), below.
(a)
The difference between the average sale price of a market-rate
three-bedroom home in the City of Lompoc and the maximum affordable
purchase price for a four-person moderate-income household in the
City of Lompoc;
(b)
An allowance for inflation to cover potential increases in home
prices over the 12 months following the calculation of the in-lieu
fee;
(c)
A closing cost grant, in an amount approved by City Council
resolution, which shall not exceed the actual market rate for closing
costs at the time the grant amount is adopted. Closing costs include,
but are not limited to, loan origination and/or processing fees, appraisal,
credit reports, prepaid hazard insurance and property taxes, and title
and escrow fees; and
(d)
An administrative fee equal to 10% of the sum of (a), (b), and
(c). This administrative fee will be used to pay for the salaries
and benefits of staff working directly with the Homebuyer Assistance
Program, office supplies, program marketing, consulting costs, legal
fees, audit charges, environmental fees, maintenance costs associated
with properties received through default actions (including in-lieu
of foreclosures), loan servicing costs, title, escrow and covenant
monitoring costs.
(ii)
The maximum amount of financial assistance available to a single
applicant under the Homebuyer Assistance Program and the amount of
the per-unit housing in-lieu fee shall be re-calculated and adopted
annually in or around June of each year and shall be effective on
July 1 of each year.
(iii)
If the City terminates or temporarily suspends the Homebuyer
Assistance Program, then the housing in-lieu fee shall, nonetheless,
continue to be calculated and annually updated as described in subsections
(i) and (ii) based on the formulas and assumptions in the last-adopted
version of the Lompoc Affordable Housing Trust Fund Program Implementation
Plan.
b. Total housing in-lieu fee. The total housing in-lieu fee shall be
calculated by multiplying the required number of inclusionary units
by the per-unit housing in-lieu fee.
c. Timing of payment. The housing in-lieu fee shall be paid in one of
the following ways:
(i)
In one lump sum at any time between approval of the project
and issuance of the first Building Permit for a residential unit in
the development, in which case the total housing in-lieu fee shall
be based on the current in-lieu fee at the time of payment; or
(ii)
On a pro rata basis, where the developer pays the in-lieu fee
for one inclusionary unit for every 10 Building Permits issued for
residential units for developments outside of the Old Town Redevelopment
Project, Amendment No. 2 Area, or for every six Building Permits issued
for residential units for developments in the Old Town Redevelopment
Project, Amendment No. 2 Area. The project conditions of approval
shall specify the payment schedule of in-lieu fees based on the prorated
computation (e.g., for developments outside of the Old Town Redevelopment
Project, Amendment No. 2 Area, the first in-lieu fee payment would
be due prior to issuance of the Building Permit for the first unit,
the second in-lieu fee payment would be due prior to issuance of the
Building Permit for the eleventh unit, etc.; and for a development
in the Old Town Redevelopment Project, Amendment No. 2 Area, the first
in-lieu fee payment would be due prior to issuance of the Building
Permit for the first unit, the second in lieu fee payment would be
due prior to issuance of the Building Permit for the seventh unit,
etc.). Each in-lieu fee payment shall be based on the current in-lieu
fee at the time of payment; or
(iii)
The developer may lock in the per-unit in-lieu fee at the amount
of the fee at the time of first payment by paying 25% of the total
in-lieu fee at any time between approval of the project and issuance
of the first Building Permit for a residential unit in the development
and then paying the remainder of the in-lieu fees as follows: After
making the first payment, the developer shall then be required to
pay the in-lieu fee for one inclusionary unit for every 10 Building
Permits issued for residential units for developments outside of the
Old Town Redevelopment Project, Amendment No. 2 Area, or for every
six Building Permits issued for residential units for developments
in the Old Town Redevelopment Project, Amendment No. 2 Area, unless
such amount has already been paid as provided in the following paragraph.
For three years following the first payment on the anniversary
of the first payment. and regardless of the number of Building Permits
that have been issued, the developer shall make additional fee payments,
as necessary, such that on the first anniversary the developer shall
have paid at least 50% of the total in-lieu fee, on the second anniversary
the developer shall have paid at least 75% of the total in-lieu fee,
and on the third anniversary the developer shall have paid 100% of
the total in-lieu fee. If the developer fails to maintain a payment
balance in accordance with the previous sentence, then the amount
of the in-lieu fee shall no longer be locked in and developer shall
thereafter make payments in accordance with Subsection A.1.c.ii.
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d. Payment non-refundable. The payment of in-lieu fees is non-refundable.
2. Off-site construction. Off-site affordable housing units may be proposed
within the City limits to satisfy the inclusionary requirement for
the development. Off-site housing units may include any combination
of new units, new units created in existing structures, or acquisition
and conversion of existing market-rate units to units that are affordable
to target income groups. Off-site units shall meet the same requirements
as if they were inclusionary (on-site) units (e.g., number, unit type
and size, etc.).
3. Conveyance of land.
a. Criteria for conveyance of land. The dedication of land may be proposed
to satisfy the housing mitigation requirement, if it can be determined
by the City that all the following criteria have been met:
(i)
Marketable title to the site is transferred to the City, or
an affordable housing developer or non-profit approved by the City,
no later than the approval of a final map or issuance of first Building
Permit, in compliance with an agreement between the market-rate project
developer and the City, and such agreement is in the best interest
of the City.
(ii)
The site has General Plan and zoning designations that authorize
residential uses.
(iii)
Infrastructure to serve the dedicated site, including, but not
limited to, streets and public utilities, must be available at the
property line, or will be made available prior to issuance of certification
of occupancy.
(iv)
Environmental review of the proposed site has been completed
to allow full disclosure for the conveyance of the proposed site,
including, but not limited to, an analysis of the site for the presence
of hazardous materials; cultural and historical resources; and geological
hazards and that such resources or hazards are or will be mitigated
to the satisfaction of the City prior to acceptance of the site by
the City.
(v)
The value of the site upon the date of conveyance is equal to
or greater than the applicable housing fee for the market-rate development.
Fair market value shall be determined preliminarily at the time and
market-rate development is submitted to the City for review. Final
determination of fair market value shall be made by a licensed California
appraiser prior to Building Permit issuance and shall be net of any
real estate commission for the conveyance of the land.
(vi)
If the value of the site upon the date of conveyance exceeds
the amount of the applicable housing in-lieu fee in compliance with
Subsection A.1 of this section, the developer shall be assigned housing
migration credit for the difference in the value of the site conveyance
and the applicable housing in-lieu fee, consistent with these requirements
for conveyance of land.
b. Disposition of land by the City. The City shall not be required to construct inclusionary units on the site dedicated to the City, but may sell, transfer, lease, or otherwise dispose of the dedicated site in order to facilitate the construction of those units and only when a clearly demonstrable greater housing benefit would be achieved as determined by Council. Any funds collected as a result of sale, transfer, lease, or other disposition of sites dedicated to the City shall be deposited in the Affordable Housing Trust Fund and the funds and interests accrued shall remain in the fund and shall be used in compliance with Section
17.324.060 (Affordable Housing Trust Fund).
c. Conveyance of development-ready lots within the project site. The builder or developer may dedicate development-ready lots within the project site in compliance with Section
17.324.030 (Inclusionary Requirements). All conveyance lots shall be part of an approved final subdivision map and have completed utility connections and roadway improvements at the time of conveyance so as to be development ready. Such conveyance shall be subject to the criteria in Subsection A.3.a.
4. Combination. The review authority may approve any combination of on-site construction, off-site construction, housing in-lieu fees, and land dedication that is at least equal to the inclusionary requirement if it makes the finding in Subsection
B.
B. Findings.
The review authority may approve, conditionally approve or deny any
alternative proposed by an applicant as part of a project application.
Any approval or conditional approval shall be based on a finding that
the proposed alternative is consistent with the City's General Plan
and shall be based on a consideration of market conditions, development
proformas, land economics and other substantial evidence.
(Ord. 1670(19) § 11; Ord. 1685(21) § 4; Ord. 1698(22) §§ 3—5; Ord. 1703(23) § 1)
A rental regulatory agreement with the City, shall be required
for rent inclusionary housing units and shall be consistent with all
applicable State laws.
(Ord. 1670(19) § 11)
A. All
housing in-lieu fees collected in compliance with this Chapter shall
be deposited into an affordable housing fund (Lompoc Affordable Housing
Trust Fund).
B. Separate
accounts within the 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 housing fund.
C. The
housing fund shall be administered by the City Manager (or designee)
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 Council.
D. Expenditures
from the housing fund shall be controlled, authorized and paid in
compliance with general City budgetary policies. Execution of contracts
related to the use or administration of housing fund moneys shall
comply with standard Council policy.
E. Monies
deposited in the housing fund, along with any interest earnings on
monies, shall be used to provide affordable housing in compliance
with the Lompoc Affordable Housing Trust Fund Program Implementation
Plan, as adopted and revised by City Council resolution.
(Ord. 1670(19) § 11; Ord. 1698(22) § 6)