A. 
The purpose of this chapter is to facilitate the development and availability of housing affordable to a range of households with varying income levels within the city through creation and imposition of a fee on new nonresidential development, which will partially fund the need for affordable housing created by the workforce of new development.
B. 
The requirements of this chapter are based on a number of factors, including, but not limited to, the city's long-standing commitment to increasing opportunities for affordable housing; the immediate need for affordable housing, as reflected in local, state, and federal housing regulations and policies; the demand for affordable housing created by nonresidential development; and the impact that the lack of affordable housing production has on the health, safety, and welfare of the city's residents including its impacts on traffic, transit and related air quality impacts, and the demands placed on the regional transportation infrastructure. Imposing a fee that is reasonably related to the burdens created by new nonresidential development on the city's need for affordable housing will enable the city to fund development of affordable housing units that will contribute to addressing these impacts and fulfilling these goals.
C. 
It is the intent of the city council that the fee required by this chapter shall be supplementary to any conditions imposed upon a development project pursuant to other provisions of this code, the Subdivision Map Act, the California Environmental Quality Act, and other state and local laws, which may authorize the imposition of project-specific conditions on development.
(Ord. No. 991 § 2, 2022)
For the purpose of this chapter, the following words, terms, and phrases shall be defined as set forth below:
"Affordable housing development impact fee"
means the fee paid by a developer of a nonresidential development project to mitigate the impacts that such a project has on the demand for affordable housing in the city.
"Affordable housing development impact fund"
means a fund or account designated by the city to maintain and account for all monies received pursuant to this chapter.
"Community land uses which serve the public"
means uses that include, but are not limited to, hospitals, places of worship, museums, educational facilities (public K-12 schools, community colleges, and colleges and universities), youth and recreational facilities, retirement or rest homes, emergency shelters, and other such institutional uses which serve the public, as determined by the director.
"Developer"
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities, which seeks or applies for city approvals, permits or entitlements for all or part of a non-residential development project.
"Director"
means the engineering services director.
"Gross floor area"
has the same meaning as set forth in section 17.126.020 ("Floor area, gross").
"Mixed-use development"
has the same meaning as that set forth in section 17.126.020 ("Development, mixed use").
"Nonresidential development project"
means the construction or the addition of new nonresidential gross floor area, or the conversion from a use exempt from the affordable housing development impact fee to a use subject to the affordable housing development impact fee. Nonresidential development includes retail/commercial, office, industrial, warehouse, and research and development uses.
(Ord. No. 991 § 2, 2022)
A. 
Requirement. An affordable housing development impact fee is hereby imposed on all nonresidential development projects, except those exempt projects identified below. No application for a building permit for a nonresidential development project shall be approved, nor shall any such nonresidential development project be constructed, without first complying with this chapter. The fee imposed by this chapter shall be paid by each developer no sooner than issuance of a building permit and no later than issuance of a certificate of occupancy for the structure. No certificate of occupancy shall be issued for a nonresidential development project that has not paid the fee required under this chapter. The amount of the fee shall be calculated at the time the fee is paid, based upon the rate then in effect.
B. 
Exemptions. Notwithstanding subsection A above, this chapter shall not apply to the following:
1. 
Any nonresidential development project with a gross floor area of 10,000 square feet or less;
2. 
Community land uses which serve the public, as defined by this chapter;
3. 
Reconstruction of any building that was destroyed by fire, flood, earthquake or other act of nature, so long as the square footage does not exceed the square footage before the loss;
4. 
The residential portion of a mixed-use development project;
5. 
Utility, transportation, public facility, and communication uses;
6. 
Any nonresidential development project developed by a public agency;
7. 
The nonresidential area of any mixed-use project that includes at least five percent of the total number of residential units reserved for extremely low-, very low-, or low-income households. The applicant shall enter into a regulatory agreement with the city to preserve the units at such income levels for at least 45 years. The agreement shall be recorded as a deed restriction against the property.
C. 
Calculation of the fee. The affordable housing development impact fee shall be charged on new gross floor area, subject to section 3.76.050 of this chapter. The amount of the fee shall be established by resolution of the city council.
(Ord. No. 991 § 2, 2022)
A. 
The requirements of this chapter may be adjusted or waived by the city council if the developer demonstrates that an insufficient nexus exists between the proposed use and the affordable housing development impact fee. The developer shall submit documentation demonstrating this with a request for an adjustment or waiver in writing to the director no later than ten days prior to the public hearing on the development permit application for the project or, if no development permit is required, at the time of the filing of the request for a building permit. The developer shall provide such additional information as may be required by the director to process the request for consideration by the city council.
B. 
The requirements of this chapter may be adjusted or waived by the city council if the developer demonstrates that applying this chapter would constitute a taking of property without just compensation in violation of the United States and/or California Constitutions. The developer shall submit a request for an adjustment or waiver in writing to the director no later than ten days prior to the public hearing on the development permit application for the project or, if no development permit is required, at the time of the filing of the request for a building permit than the date it files its initial development application with the city. The developer shall provide such additional information as may be required by the director to process the request for consideration by the city council.
(Ord. No. 991 § 2, 2022)
If a development is exempt from the fee at initial construction, but later converts to a nonresidential development project subject to the fee, the converted square footage will be deemed new gross floor area and the affordable housing development impact fee shall be paid pursuant to section 3.76.030 of this chapter. The amount of the fee shall be calculated at the time the fee is paid, based upon the rate then in effect.
(Ord. No. 991 § 2, 2022)
All funds derived from this chapter shall be placed in a separate and distinct affordable housing development impact fund and used solely to increase the supply of housing affordable to extremely low-, very low-, low-, and moderate-income households, the demand for which is created by the development of new nonresidential development in the city.
(Ord. No. 991 § 2, 2022)