The purpose of this chapter is to enhance the public welfare by enacting a citywide inclusionary housing ordinance to require the development of rental housing affordable to lower income households in conjunction with market-rate housing, or payment of an in-lieu fee. This ordinance is intended to assist the city in meeting its regional share of housing needs and implementing the goals and objectives of the general plan, including the housing element and any applicable specific or community plans.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
A. 
This chapter shall apply citywide to the new construction of all rental housing developments, as defined in this chapter.
B. 
Definitions. The following definitions shall apply to the requirements of this chapter:
“Adjusted for household size appropriate for the unit”
means for 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. As used in this chapter, this phrase is a benchmark used in the calculation of affordable housing cost and is not meant to be, and shall not be construed to set, an occupancy minimum or maximum.
“Affordable housing cost”
means the total housing costs paid by a qualifying household, which shall not exceed a specified fraction of their gross income, adjusted for household size appropriate for the unit. Rental rates for inclusionary units shall be calculated as follows:
1. 
Rental rates for very low income households shall be calculated as follows: 30% of 50% of the Los Angeles County area median income adjusted for household size appropriate for the unit.
2. 
Rental rates for low income households shall be calculated as follows: 30% of 60% of the Los Angeles County area median income adjusted for household size appropriate for the unit.
“Affordable housing trust fund”
shall have the meaning set forth in Section 30.35.060(A)(4).
“Density bonus”
means a density increase over the otherwise maximum allowable residential density specifically provided for in California Government Code Sections 65915 et seq., and Glendale Municipal Code Chapter 30.36.
“Developer”
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities, that applies for city approvals, permits or entitlements for all or part of a housing development.
“Housing development”
means a rental development project of eight or more dwelling units proposed to be constructed in the city. For purposes of this chapter, “housing development” also includes a subdivision, planned unit development or common interest development, as defined in Section 4100 of the Civil Code, approved by the city, and consists of residential units or unimproved residential lots.
“Implementation policies”
means written policies and guidelines consistent with this chapter, on file with the community development department, to assist in the implementation and enforcement of this chapter.
“Inclusionary housing plan”
means the plan referenced in Section 30.35.080(A) and further described in the Implementation Policies, which sets forth the manner in which the requirements of this chapter will be implemented for a particular housing development.
“Inclusionary units” or “affordable units”
means dwelling units that will be offered for rent to very low and low income households pursuant to this chapter.
“Income categories”
means the following income levels for households:
1. 
“Very low income households”
means households whose gross income is equal to 50% or less of the area median income for Los Angeles County, as defined in California Health and Safety Code Section 50105.
2. 
“Low income households”
means households whose gross income does not exceed 80% of the area median income for Los Angeles County, as defined in California Health and Safety Code Section 50079.5.
“Maximum residential density”
means the maximum number of residential units permitted by the applicable zoning designation. The maximum density for a housing development on a lot that qualifies for additional density based on lot width, as provided in Section 30.11.030, shall be the highest allowable density within the zoning designation. In the downtown specific plan (DSP) area, the maximum number of units shall be calculated by determining the maximum number of units allowed within the building envelope that would be created by complying with all of the design standards and guidelines in the DSP, including, but not limited to, height, number of stories, setbacks, FAR, and minimum unit size. For mixed-use projects in the DSP, the maximum residential density shall exclude all square footage dedicated to nonresidential uses. This definition is intended to be consistent with, and applied in the same manner as, the same or similar term in California Government Code Section 65915(o) and Glendale Municipal Code Section 30.36.030.
“Substantial rehabilitation” or “substantially rehabilitated”
means, with respect to a housing development, work which results in an after-rehabilitation value equal to or greater than 25% of the prerehabilitation value of the housing development, inclusive of the land value.
“Total housing cost”
means the total monthly or annual recurring expenses required of a household to obtain shelter. For a rental unit, total housing costs include the monthly rent payment and utilities.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
A. 
All new housing developments shall reserve 15% of the lesser of either the maximum residential density or the number of residential units proposed by the developer (prior to the grant of any density bonus), as units affordable to low income households, as defined in this chapter. Subject to exercise of the options described in subsections B and C of this section, inclusionary units shall be comparable to noninclusionary units with respect to square footage, size, unit mix, design, quality, workmanship and finishes, and shall be dispersed throughout the housing development and shown on the inclusionary housing plan to the satisfaction of the community development department. Alternatively, the developer shall have the option to develop inclusionary units off-site, acquire and rehabilitate existing market rate units or pay an in lieu fee, as provided elsewhere in this chapter.
B. 
Inclusionary Unit Smaller Per Unit Floor Area Option. Notwithstanding subsection A above, the developer may request to provide inclusionary units with per unit floor area less than the per unit floor area of non-inclusionary units. If the developer chooses this option, the developer shall provide additional inclusionary units above and beyond the minimum number of inclusionary units required, provided the total required floor area of all inclusionary units remains the same or is greater, consistent with the Implementation Policies and to the satisfaction of the director of community development. In no event may a developer who chooses this option use the additional inclusionary units to increase the amount of density bonus or the amount of or nature of the incentives, concessions or waivers granted or applied for under a density bonus application.
C. 
Inclusionary Unit Mix Option. Notwithstanding subsection A above, a developer may request to provide a different unit mix of the inclusionary units than the unit mix of the non-inclusionary units. If the developer chooses this option, the developer shall provide inclusionary units with at least a 10% increase in bedroom count, consistent with the Implementation Policies and to the satisfaction of the director of community development.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
Affordable units may only be rented by qualified low income households for a minimum of 55 years, as secured by recorded covenants.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
A. 
Any fractional unit resulting from the calculation of the inclusionary requirement referenced in Section 30.35.030 will be rounded up to the next whole number or the developer may elect to pay the appropriate in-lieu fee for the fractional unit.
B. 
Senior Citizen Housing Development. Any senior citizen housing development as defined in Sections 51.3 and 51.12 of the California Civil Code is subject to the inclusionary unit requirements contained in this chapter. All inclusionary units within an all senior development shall remain restricted to seniors, with the exception of the on-site manager’s unit.
C. 
Density Bonus Affordable Units. To the extent required by state law, all affordable units required pursuant to the grant of a density bonus shall count toward the inclusionary unit requirement contained in this chapter. Very low income density bonus units shall be equivalent to low income inclusionary units.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
A. 
Developers of housing development projects may choose to pay a fee, or comply with the requirements of this chapter through a combination of payment of a fee and the provision of units, in-lieu of providing all inclusionary units on site.
1. 
Amount of fee. The amount of the in-lieu fee shall be calculated in compliance with the fee resolution adopted by the city council.
2. 
Timing of payment. The fee required by this section shall be paid to the satisfaction of the director of finance before issuance of a temporary or final certificate of occupancy for the approved project.
3. 
Basis for fee computation. Fees paid to fulfill the requirements of this chapter shall be computed based on the number and size of the units to be constructed. Unit size shall be calculated based on gross livable floor area, including private balconies, decks and patios.
4. 
Affordable housing trust fund. Fees paid to fulfill the requirements of this chapter shall be placed in the city’s affordable housing trust fund. The funds shall be used exclusively for housing projects which target extremely low, very low, low, and moderate income households.
B. 
Notwithstanding the fact that ownership residential projects are exempt from the inclusionary housing requirements contained in this chapter, a developer of an ownership residential project shall, prior to issuance of the project’s building permit, execute a covenant, in a form acceptable to the city attorney, agreeing to payment of the in-lieu fee in the event the units are rented prior to being sold. The covenant shall be secured by the posting of a cash bond in a form satisfactory to the city attorney guaranteeing the developer’s agreement to pay the in-lieu fee under the terms of the covenant. The Implementation Policies shall provide a mechanism for partial release of the covenant and bond upon sale of individual units.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
Developers of housing development projects may choose to comply with the requirements of this chapter by building the required inclusionary units off site, at a site other than the site of the housing development, in lieu of providing the inclusionary units on site. In addition to all requirements of this chapter, off-site development of required inclusionary housing, at one or more approved sites, shall be subject to all of the following requirements and those contained in the inclusionary housing plan for that housing development:
A. 
The number of units to be provided off site shall be consistent with the requirements of this chapter;
B. 
All off-site inclusionary units will contain, on average, the same number of bedrooms as the non-inclusionary units in the project, and shall be comparable with the non-inclusionary units in terms of square footage of individual units, overall unit mix, appearance, finished quality, materials, and even distribution throughout the building, subject to the options set forth in Section 30.35.030(B) and (C);
C. 
All inclusionary off-site units shall be constructed before or concurrently with the main project and final approval of the project shall be contingent upon completion and final approval of the inclusionary units;
D. 
Off-site inclusionary units shall be allowed only in those areas which are designated in the General Plan for the densities proposed by the developer and comply with zoning regulations and standards;
E. 
Off-site inclusionary units shall be located within one mile of the housing development and within the city of Glendale; and
F. 
All off-site inclusionary units shall be rental units.
(Ord. 5416 § 7, 2004; Ord. 5928 § 3, 2019)
Developers of housing development projects may choose to comply with the requirements of this chapter through the acquisition and rehabilitation of off-site existing market-rate units in the city of Glendale for conversion to units affordable to low income households only, in lieu of constructing inclusionary units on the site of the new housing development. This option is subject to all of the following requirements and those contained in the inclusionary housing plan for that housing development:
A. 
At the time the developer submits the first permit or entitlement application for the new housing development, the existing market-rate units proposed to be substantially rehabilitated for conversion into inclusionary units are under citation for substantial building code violations, as determined by the building official;
B. 
All of the existing market-rate units proposed to be substantially rehabilitated for conversion into inclusionary units are and remain vacant for a minimum of 90 days prior to the date the developer submits the first permit or entitlement application for the housing development;
C. 
The existing market-rate units are or will be substantially rehabilitated, as defined in this chapter, and thereafter comply with all applicable building and housing codes;
D. 
The substantial rehabilitation of the existing market-rate units to be converted to inclusionary units is or will be completed prior to or concurrently with the market-rate housing development;
E. 
A physical needs assessment is completed, to the satisfaction of the city, with respect to each market-rate dwelling unit to be acquired and rehabilitated, the property upon which it is located, and any associated common area; and all items identified in the physical needs assessment needing repair, replacement and maintenance at the time of the assessment or that will likely require repair or replacement within three years of the assessment, are or will be completed prior to the approval of each market-rate unit as an inclusionary unit;
F. 
Environmental review of the site upon which the existing market-rate units are located for the presence of hazardous materials and geological review of such site for the presence of geological hazards is completed and shows that the site is clear of all such hazards, to the satisfaction of the city;
G. 
The unit mix (in terms of bedroom count) of the substantially rehabilitated inclusionary units shall be substantially similar to the unit mix in the new market-rate housing development, as set forth in the Implementation Policies. The substantially rehabilitated inclusionary units shall also be comparable with the market-rate units located in the new housing development in terms of square footage of individual units, appearance, finished quality, materials, and even distribution throughout the building, subject to the options contained in Section 30.35.030(B) and (C);
H. 
The substantially rehabilitated inclusionary units shall be rental units;
I. 
The inclusionary housing restrictions shall be recorded against the market-rate housing development and the rehabilitated inclusionary units pursuant to this chapter and the Implementation Policies; and
J. 
The term of affordability of the substantially rehabilitated inclusionary units shall be 55 years commencing upon initial occupancy of the inclusionary units to the targeted income group at an affordable housing cost.
(Ord. 5928 § 3, 2019)
A. 
Procedures. In accordance with the standards and procedures set forth in the Implementation Policies, for any proposed new construction or substantially rehabilitated housing development, as defined in Section 30.35.020, the developer shall:
1. 
Submit an inclusionary housing plan for approval by the director of community development, setting forth in detail the manner in which the provisions of this chapter will be implemented. If a density bonus housing plan is also requested, the director of community development may elect to combine the inclusionary housing plan and the density bonus housing plan into one plan;
2. 
Execute and cause to be recorded an inclusionary housing agreement subject to review and approval by the city attorney, unless a developer elects to comply with this chapter solely through payment of the in-lieu fee alternative referenced in Section 30.35.060. If a density bonus or incentive(s) pursuant to Chapter 30.36 is also requested, the director of community development may elect to combine the inclusionary housing agreement and the density bonus housing agreement into one agreement. The agreement shall at a minimum include:
a. 
Whether an in-lieu fee is required and the amount;
b. 
The number of inclusionary units to be provided;
c. 
The number of units at each applicable rent level;
d. 
A list of any other incentives or conditions approved for the project; and
e. 
A requirement to notify the city upon occupancy of each inclusionary unit.
The Implementation Policies shall describe the submission and review timelines for the inclusionary housing plan and inclusionary housing agreement in further detail.
B. 
Approvals. The developer shall meet all applicable requirements as follows:
1. 
Prior to issuance of any discretionary approval, the developer shall submit an inclusionary housing plan for review and approval by the director of community development;
2. 
Prior to issuance of a building permit, the developer shall submit original documentation that the inclusionary housing agreement has been properly recorded; and
3. 
If the developer has elected to pay an in lieu fee, the developer shall submit evidence that the fee has been paid in compliance with the fee resolution adopted by the city council, prior to issuance of a temporary or final certificate of occupancy for the housing development.
C. 
Construction Schedule. All inclusionary units in a housing development project shall be constructed concurrently with or before the construction of the non-inclusionary units.
1. 
Phasing. In the event a phased project is approved by the city, required inclusionary units shall be provided proportionally within each phase.
2. 
Occupants. New inclusionary units shall be occupied in the following manner:
a. 
The units shall be offered first to qualified tenants displaced by the activity of the city of Glendale, the former Glendale redevelopment agency or the Glendale housing authority;
b. 
If inclusionary units remain available after offering units as described above, the availability of inclusionary units shall be marketed pursuant to the management plan for the project and consistent with the Implementation Policies;
c. 
Whenever an inclusionary unit becomes available, the director of community development shall be notified immediately in writing prior to acting on tenant selection requirements described in the management plan for the project.
(Ord. 5416 § 7, 2004; Ord. 5747 § 56, 2011; Ord. 5928 § 3, 2019)