The purpose and intent of this chapter is as follows:
A. 
On April 8, 2015 the City Council of the City of South San Francisco (“City”) adopted its 2015-2023 Housing Element to the City General Plan. As established by the Housing Element, the objective of the City is to ensure that all residential development, including all master planned and specific planned communities, provide a range of housing opportunities for all identifiable economic segments of the population, including households of extremely low, very low, lower and moderate income.
B. 
City Housing Element Chapter 6.1, entitled “Promote New Housing Development,” includes Goal I to “promote the provision of housing by both the private and public sectors for all income groups in the community.”
C. 
Implementing Policy I-3 of the Housing Element provides that “[a]s feasible, the City will investigate new sources of funding for the City’s affordable housing programs.”
D. 
There is a reasonable relationship between the need for affordable housing and the impacts of market rate residential development within the City. Development of new market rate residential projects increases the population of the City and generates additional resident demand for goods and services, and some of the employees needed to provide those goods and services earn incomes only adequate to pay for affordable housing.
E. 
Because affordable housing is in short supply within the City, these employees might otherwise be forced to live in less-than-adequate housing within the City, pay a disproportionate share of their incomes to live in adequate housing within the City, or commute ever-increasing distances to their jobs from housing located outside the City, thereby harming the City’s ability to attain goals articulated in the City’s General Plan.
F. 
The City Council finds and determines that in order to provide sufficient affordable housing to achieve the City’s goal of providing a full range of affordable housing options to residents of the City, in accordance with the standards established in the general plan, housing element, and other applicable plans and regulations, residential development projects identified in Section 20.380.030 shall provide inclusionary housing units, or provide one of the alternative means of compliance specified in this chapter, in order to mitigate the impacts of these residential development projects on affordable housing in the City.
G. 
It is the policy of the City to:
1. 
Require that for rental residential development of five or more units for which applications are received and deemed complete during a period of one year from the effective date of the ordinance codified in this chapter, a minimum of 10 percent of the dwelling units in all such developments shall be inclusionary units; and
2. 
Require that for rental residential developments of five or more units for which applications are received and deemed complete upon and after the effective date of the ordinance codified in this chapter, a minimum of 15 percent of the dwelling units in all such developments shall be inclusionary units; and
3. 
Require that for for-sale residential developments of five or more units for which applications are received and deemed complete upon and after the effective date of the ordinance codified in this chapter, a minimum of 15 percent of the dwelling units in all such developments shall be inclusionary units; and
4. 
Allow inclusionary requirements, at the option of the applicant, to be satisfied through the payment of an in-lieu fee as an alternative to requiring inclusionary units to be constructed, and under certain conditions with City Council approval, allow other alternatives to constructing new inclusionary units on-site.
H. 
The City Council finds and determines that this chapter will:
1. 
Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the City as mandated by Government Code Section 65580, et seq.
2. 
Offset the demand for affordable housing that is created by new residential development and mitigate impacts that accompany new residential development by protecting the economic diversity of the City’s housing stock; reducing traffic, transit and related air quality impacts; promoting jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.
3. 
Promote the City’s policy to promote the provision of housing by both the private and public sectors for all income groups in the community, as identified by the Housing Element of the General Plan.
4. 
Support the Housing Element goal of encouraging high-quality residential development, as well as ensure a full range of affordable housing and the policies and actions that support this goal.
5. 
Support the Housing Element goal of providing suitable, decent, and affordable housing for its residents.
6. 
Support the guiding principle of the Housing Element that housing in South San Francisco supports increasing the range and diversity of housing options that will be an integral aspect of the City’s growth and development.
7. 
Support the guiding principle of the Housing Element that South San Francisco values diversity and strives to ensure that all households have equal access to the City’s housing resources.
8. 
Meet the housing needs identified by the Housing Element of the General Plan.
9. 
Encourage the production of the very low, low, and moderate-income units planned for by the Housing Element of the General Plan.
I. 
Nothing in this chapter is intended to create a mandatory duty on the part of the City or its employees under the Government Tort Claims Act and no cause of action against the City or its employees is created by this chapter that would not arise independently of the provisions of this chapter.
(Ord. 1565 §2, 2018)
Whenever the following terms are used in this chapter, they shall have the meaning established by this section:
“Affordable housing”
means, for the purposes of this chapter, housing that is affordable to families with very low, low, or moderate incomes.
“Affordable housing agreement”
means a legally binding agreement between an applicant and the City to ensure that the requirements of this chapter are satisfied in accordance with Section 20.380.014.
“Affordable initial sales price”
means a sales price for which allowable housing expenses do not exceed the following:
1. 
For an inclusionary unit sold to a moderate income household, allowable housing expenses do not exceed 35% x 110% of AMI for a household size appropriate to the unit.
2. 
For an inclusionary unit sold to a lower income household, allowable housing expenses do not exceed 30% x 70% of AMI for a household size appropriate to the unit.
“Affordable rent”
means allowable housing expenses do not exceed the following:
1. 
For an inclusionary unit rented to a very low income household, allowable housing expenses do not exceed 30% x 50% of AMI for a household size appropriate to the unit.
2. 
For an inclusionary unit rented to a lower income household, allowable housing expenses do not exceed 30% x 60% of AMI for a household size appropriate to the unit.
“Allowable housing expense”
means the total monthly or annual recurring expenses required of a household to obtain shelter.
1. 
For a for-sale unit, allowable housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners association dues and a reasonable allowance for utilities.
2. 
For a rental unit, allowable housing expenses include rent and a reasonable allowance for utilities, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant.
3. 
Allowable housing expense may be further defined by regulation prepared by the Economic and Community Development Department and adopted by the City Council.
“Area median income” or “AMI”
means the annual median income for San Mateo County, adjusted for household size, as published periodically in Section 6932 of Title 25 of the California Code of Regulations, or its successor provision. In the event such area median income figures are no longer published in the California Code of Regulations, area median income shall be as established by the City.
“Conversion”
means the change of status of a dwelling unit from a for-sale unit to a rental unit or vice versa.
“Deemed complete”
means an applicant has submitted all items listed on the Planning Application Checklist used upon the date the application is received, including all required plans and full payment of all required fees, and the Planning Division has determined each item contains all requested and relevant information pursuant to the review procedures set forth in Chapter 20.450 “Common Procedures” of the South San Francisco Municipal Code.
“Density bonus”
means a density increase in a residential development granted pursuant to Government Code Section 65915, et seq., and Chapter 20.390 of the Municipal Code.
“Density bonus unit”
means dwelling units approved in a residential development pursuant to Government Code Section 65915, et seq., and Chapter 20.390 of the Municipal Code, that are in excess of the maximum residential density otherwise permitted by the City General Plan Or Zoning Ordinance.
“Dwelling unit”
shall have the definition given for dwellings in Section 20.630.002 of the Municipal Code.
“Financial assistance”
means assistance to include, but not be limited to, the subsidization of fees, infrastructure, land costs, or construction costs, the use of funds from the City housing trust fund, the use of low and moderate income housing asset funds, community development block grant (CDBG) funds, HOME funds, or the provision of other direct financial aid in the form of cash transfer payments or other monetary compensation, by the City of South San Francisco.
“For-sale unit”
means a dwelling unit, including an attached or detached single family home, condominium, stock cooperative or community apartment, which is offered for sale to individual buyers.
“Household size appropriate for the unit”
means one person for a zero bedroom dwelling unit, two persons for a one bedroom dwelling unit, three persons for a two-bedroom dwelling unit, four persons for a three-bedroom dwelling unit, and five persons for a four-bedroom dwelling unit.
“Incentives”
means concessions and incentives as described in Government Code Section 65915(k), granted by the City in accordance with Government Code Section 65915 and Chapter 20.390 of the Municipal Code.
“Inclusionary housing project”
means a new residential development or conversion of existing residential buildings which includes units reserved and made affordable to very low, lower or moderate-income households as required by this chapter.
“Inclusionary unit”
means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to very low, lower or moderate income households, as required by this chapter.
“Income”
shall have the meaning as defined in Section 6914 of Title 25 of the California Code of Regulations, or its successor provision, as may be further defined by regulations of the Economic and Community Development Department.
“In lieu fee”
means a fee payable to the City instead of constructing inclusionary units as described in Section 20.380.011 of this chapter.
“Lower income household”
shall have the meaning as defined in California Health and Safety Code Section 50079.5.
“Market-rate unit”
means a dwelling unit where the rental rate or sales price is not restricted either by this chapter, Chapter 20.390 of the Municipal Code, or by requirements imposed through other local, state, or federal affordable housing programs.
“Maximum resale price”
means the maximum amount a for-sale inclusionary unit may be sold, except for the initial sale of the inclusionary unit, as provided in Section 20.380.006(F) of this chapter.
“Moderate income household”
shall have the meaning as defined in California Health and Safety Code Section 50093.
“Offsets”
means concessions or assistance to include, but not be limited to, direct financial assistance, density increases, modifications of standards or any other financial, land use, or regulatory concession which would result in an identifiable cost reduction enabling the provision of affordable housing.
“Reasonable allowance for utilities”
means the utility allowance published by the Housing Authority of the County of San Mateo from time to time. If the foregoing utility allowance is no longer published, then a reasonable allowance for utilities shall be calculated based upon comparable governmental published figures as determined by regulation of the City.
“Rental unit”
means a dwelling unit that is not a for-sale unit.
“Residential development”
means any new residential construction of rental or for-sale units; or development revisions, including those with and without a master plan or specific plan, planned unit developments, site development plans, mobilehome developments and conversions of apartments to condominiums, as well as dwelling units for which the cost of shelter is included in a recurring payment for expenses, whether or not an initial lump sum fee is also required.
“Total dwelling units”
means the total units approved by the final decision making authority. Total dwelling units are composed of both market rate units and inclusionary units. For purposes hereof, total dwelling units does not include density bonus units.
“Utilities”
means garbage collection, sewer, water, electricity, gas and other heating, cooling, cooking and refrigeration fuels for a dwelling unit. Utilities does not include telephone, cable or internet service.
“Very low income household”
shall have the meaning as defined in California Health and Safety Code Section 50105. For purposes hereof, very low income households shall include extremely low income households, as defined in California Health and Safety Code Section 50106.
(Ord. 1565 § 2, 2018)
A. 
The requirements of this chapter shall apply as follows:
1. 
This chapter shall apply to all residential market-rate dwelling units resulting from new construction of for-sale and rental residential developments consisting of five or more dwelling units, as well as the conversion of apartments to condominiums or condominiums to apartments.
2. 
An applicant shall not avoid the requirements of this chapter by submitting piecemeal planning permit applications. For purposes of this chapter a residential development shall include all contiguous property under common ownership and control.
B. 
The requirements of this chapter shall not apply to the following:
1. 
Existing residences which are altered, improved, restored, repaired, expanded or extended, provided that the number of dwelling units is not increased, except that this chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums or condominiums to apartments;
2. 
The construction of a new residential structure which replaces a residential structure that was destroyed or demolished within two years prior to the approval of a Building Permit for the new residential structure, provided that the number of dwelling units is not increased from the number of dwelling units of the previously destroyed or demolished residential structure;
3. 
Accessory dwelling units not constructed to fulfill inclusionary housing requirements and developed in accordance with Section 20.350.003 ("Accessory Dwelling Units");
4. 
Those dwelling units which have obtained approval of a vesting tentative map or a development agreement prior to the effective date of the ordinance codified in this chapter, as set forth in Section 20.380.017 ("Pre-Existing Approvals");
5. 
Applications for rental residential dwelling units that are deemed complete prior to the effective date of the ordinance codified in this chapter.
(Ord. 1565 § 2, 2018; Ord. 1656, 6/12/2024)
Applications for planned unit development permits, tentative maps, vesting tentative maps, and other land use entitlements that seek approval of a residential development project of five or more dwelling units shall submit an inclusionary housing plan as follows:
A. 
All applications approved or deemed complete on or after the effective date of the ordinance codified in this chapter are required by this chapter to provide an inclusionary housing plan with the application for development. The inclusionary housing plan will include appropriate text, maps, tables, or figures to establish the basic framework for implementing the requirements of this chapter. It shall establish, at a minimum, but shall not be limited to, the following:
1. 
The number of market rate units in the master plan or specific plan;
2. 
The number of required inclusionary units for very low, lower and moderate income households in the project, including the specific levels of affordability;
3. 
The location of the inclusionary units, including, but not limited to, any sites for locating off-site inclusionary housing projects;
4. 
Acknowledgement that an affordable housing agreement shall be a condition of all future discretionary permits for the development area such as tentative maps, parcel maps, planned unit developments and site development plans. The affordable housing agreement shall be consistent with Section 20.380.014 (“Affordable Housing Agreement as a Condition of Development”).
B. 
The location and phasing of inclusionary dwelling units may be modified by the body granting final approval of the project as a condition of approval for the project.
C. 
All existing planned unit development permits, Conditional Use Permits, master plans or specific plans proposed for major amendment, pursuant to Chapter 20.530 (“Specific Plans and Plan Amendments”), shall incorporate into the amended master plan or specific plan document an affordable housing agreement, consistent with this section.
D. 
In the event the residential development obtains a density bonus, the affordable housing agreement shall also contain the terms of the agreement required pursuant to Government Code Section 65915, et seq., and Chapter 20.390 of the Municipal Code.
(Ord. 1565 § 2, 2018)
A. 
The requirements for rental residential developments, which shall apply to both construction of rental units and conversion of for-sale units to rental units, are as follows:
1. 
For rental residential developments consisting of five or more units for which applications are received and deemed complete during a period of one year from the effective date of the ordinance codified in this chapter, a minimum of 10 percent of the dwelling units in all such developments shall be inclusionary units designated for lower income households.
2. 
For rental residential developments consisting of five or more units for which applications are received and deemed complete upon and after one year from the effective date of the ordinance codified in this chapter, a minimum of 15 percent of the dwelling units in all such development shall be inclusionary units with two-thirds designated for lower income households and one-third designated for very low income households.
B. 
The requirements for for-sale residential developments, which shall apply to both construction of for-sale units and conversion of rental units to for-sale units, is as follows:
1. 
For for-sale residential developments of five or more units for which applications are received and deemed complete upon and after the effective date of this ordinance, a minimum of 15 percent of the dwelling units in all such developments shall be inclusionary units with 50 percent designated for moderate income households and 50 percent designated for lower income households.
C. 
If the calculation of the required total number of inclusionary units results in a fraction of one-half or greater, the number of inclusionary units shall be rounded up to the next whole number. If the calculation of the required total number of inclusionary units results in a fraction of less than one-half, the fractional amount shall be provided to the City through payment of an in lieu fee as provided in Section 20.380.011 hereof. (For example, if 6.4 inclusionary units are required for a for-sale residential development, the applicant would be required to construct six inclusionary units and pay an in lieu fee for 0.4 units.)
D. 
Where the calculation of the designated income levels of inclusionary units results in a fractional number, the number of inclusionary units designated at each required income level shall be rounded toward the higher income level. (For example, if seven inclusionary units are required for a for-sale residential development, four would be designated for moderate income households and three would be designated for lower income households.)
E. 
The applicant may voluntarily elect to provide more inclusionary units at a lower income or very low income level than required by this chapter. Voluntarily providing more units at a lower affordability level than otherwise required under this section shall satisfy the applicant’s requirements related to affordability distribution, provided the applicant has provided the total required number of inclusionary units.
(Ord. 1565 § 2, 2018)
The affordable housing standards are as follows:
A. 
All residential developments subject to this chapter must satisfy the inclusionary housing requirements of this chapter, notwithstanding an applicant’s request to process a residential development under other program requirements, laws or regulations. Affordable units provided in order to obtain a density bonus under Chapter 20.390 (“Bonus Residential Density”), which otherwise meet the requirements of this chapter, shall qualify as inclusionary units for purposes of this chapter.
B. 
Unless an alternative method of compliance is allowed pursuant to Section 20.380.007 of this chapter, inclusionary units shall be built on the residential development project site.
C. 
The required inclusionary units shall be constructed concurrently with market-rate units unless both the final decision-making authority of the City and applicant agree within the affordable housing agreement to an alternative schedule for development. The schedule for construction of inclusionary units shall be included in the affordable housing agreement.
D. 
Inclusionary units which are rental units shall be made available and rented to the designated income group at an affordable rent for 55 years from the date of a final certificate of occupancy for the project. Notwithstanding anything to the contrary in this chapter, no inclusionary rental unit shall be rented for an amount which exceeds 90 percent of the actual rent charged for a comparable market-rate unit in the same residential development, if any.
E. 
Inclusionary units which are for-sale units shall remain affordable for a term of 55 years from the date of a final certificate of occupancy for the inclusionary unit, and a resale restriction containing such affordability term shall be filed and recorded as a restriction on those individual lots, units or projects which are designated as inclusionary for-sale units.
F. 
The initial sale of inclusionary for-sale units shall be at an affordable initial sales price. The maximum resale price at which an owner of an inclusionary for-sale unit may sell that inclusionary unit shall be annually adjusted by the percentage increase or decrease in area median income for a family of four in effect between the date of the owner’s purchase and the date of the owner’s sale of the inclusionary unit. The maximum resale price shall be increased by the market value, if any, of any documented, permanent capital real estate or fixed improvements to the inclusionary unit approved by City. As a condition of obtaining such an adjustment, the owner shall present to the City written documentation of all expenditures made by owner for which an adjustment is requested. The maximum resale price shall be decreased by the amount necessary to repair any damages and to put the unit into a sellable condition, including items such as paint, cleaning, construction repairs, and to bring said unit into conformity with all applicable provisions of the City Municipal Code and the affordable housing guidelines established by the City. The amount of price adjustments shall be reasonably determined by the City. The resulting price shall be the maximum resale price of the inclusionary unit.
G. 
The design of the inclusionary units shall be consistent with General Plan standards; compatible with the design of the total project development in terms of appearance, materials and finished quality and conform to General Plan standards; and consistent with affordable housing development standards prepared by the Department of Economic and Community Development as adopted by the City Council. The distribution of the size of inclusionary units, as measured by the number of bedrooms in an inclusionary unit, shall be in the same proportion as the distribution of the size of market rate units, as measured by the number of bedrooms in the market rate units. Residents of inclusionary units shall be entitled to use all of the same amenities and facilities of the residential development as residents of market rate units within the residential development.
H. 
No building permit shall be issued, nor any development approval granted for a residential development which does not meet the requirements of this chapter. No inclusionary unit shall be rented or sold except in accordance with this chapter.
(Ord. 1565 § 2, 2018)
Each applicant may, at the sole discretion of the applicant, elect to pay the in lieu fee as provided in Section 20.380.011 of this chapter instead of the construction of new inclusionary units within the residential development. In addition to the foregoing, and notwithstanding any contrary provisions of this chapter, the City may, at the sole discretion of the City Council, determine that one or more of the following alternatives in subsections A through E to the construction of new inclusionary units within the residential development is acceptable. Such determination shall be based on findings that new construction would be infeasible or present unreasonable hardship in light of such factors as project size, site constraints, market competition, price and product type disparity, applicant capability, and financial subsidies available. Evidence must be submitted to the City Manager or designee and included in the request for any approval of alternatives to the construction of new inclusionary units.
A. 
Off-Site Construction. The applicant may construct some or all of the inclusionary units at a location within the City outside of the residential development. Off-site inclusionary units should, if feasible, be located on sites that are in proximity to or will provide access to employment opportunities, urban services, or major roads or other transportation and commuter rail facilities and that are compatible with adjacent land uses.
B. 
Dedication of Land. The applicant may donate land to the City or to the designee of the City. The land shall meet all of the requirements of Government Code Section 65915(g). The value of the land shall be not less than the sum of the in-lieu fee that would be due under Section 20.380.011 of this chapter. The valuation of any land offered in-lieu shall be determined by an appraisal made by an appraiser mutually agreed upon by the City and the applicant. Costs associated with the appraisal shall be borne by the applicant.
C. 
Construction of Accessory Dwelling Units. The applicant may construct accessory dwelling units which shall be rented to very low and lower income households at an affordable rent, in accordance with an affordable housing agreement.
D. 
Funding of Affordable Housing Project. The applicant may make a contribution to a special needs housing project or program or other affordable housing project. The requisite contribution shall be calculated in the same manner as an in-lieu fee per Section 20.380.011 (“In-Lieu Fees”).
E. 
The City Council may approve other alternatives to the construction of new inclusionary units within the residential development where the proposed alternative supports specific housing element policies and goals of the City and assists the City in meeting its State housing requirements. Alternatives may include, but are not limited to, acquisition and rehabilitation of affordable units, conversion of existing market units to affordable units, or construction of special needs housing projects or programs (shelters, transitional housing, etc.).
(Ord. 1565 § 2, 2018)
Applicants may apply to the City for a waiver, adjustment or reduction of the requirements of this chapter. In connection with such a request, the applicant shall present evidence to the City in support of the request. The City may approve or disapprove an application for waiver, adjustment or reduction in its sole discretion, provided that the City shall approve requests for waiver, adjustment or reduction when the application of this chapter to a residential development would result in a taking of property in violation of the United States or California Constitutions or otherwise be contrary to applicable law.
(Ord. 1565 § 2, 2018)
Inclusionary units created which exceed the final requirement for a residential development may, subject to City Council approval in the affordable housing agreement, be utilized by the applicant to satisfy inclusionary requirements for other residential developments of the applicant or other developers.
(Ord. 1565 § 2, 2018)
The City shall consider making offsets available to applicants when necessary to enable residential developments to provide a preferable product type or affordability in excess of the requirements of this chapter.
A. 
Offsets may be offered by the City to the extent that resources and programs for this purpose are available to the City and approved for such use by the City Council, and to the extent that the residential development, with the use of offsets, assists in achieving the City’s housing goals. If the City makes available programs to provide offsets, applicants may make application for such programs.
B. 
The City’s evaluation of requests for offsets shall be based on the effectiveness of the offsets in achieving a preferable product type and/or affordability objectives as set forth within the housing element; the capability of the development team; the reasonableness of development costs and justification of subsidy needs; and the extent to which other resources are used to leverage the requested offsets.
C. 
Nothing in this chapter establishes, directly or through implication, a right of any applicant to receive any offsets from the City or any other party or agency to enable the applicant to meet the obligations established by this chapter.
D. 
Offsets may include incentives provided by the City to residential developments qualifying for a density bonus pursuant to the provisions of Chapter 20.390.
E. 
Any offsets approved by the City Council shall be described in the affordable housing agreement.
F. 
Applicants are encouraged to utilize local, State or Federal assistance, when available, to meet the affordability standards set forth in this chapter.
(Ord. 1565 § 2, 2018)
Payment of an in-lieu fee to the City instead of construction of inclusionary units is permitted as follows:
A. 
For any residential development or development revision consisting of five or more dwelling units, the applicant may elect to satisfy the inclusionary unit requirements through the payment to the City of an in-lieu fee.
B. 
The in-lieu fee to be paid for each inclusionary dwelling unit shall be determined by resolution of the City as approved by the City Council from time to time.
C. 
In lieu-fees shall be paid at the time a building permit is issued for the development.
D. 
Where an applicant elects to pay an in lieu fee instead of the development of inclusionary units, any approvals for the residential development shall be conditioned upon a requirement to pay the in-lieu fee in an amount established by the chapter in effect at the time of payment.
(Ord. 1565 § 2, 2018)
All in-lieu fees collected hereunder shall be deposited in a housing trust fund. The housing trust fund shall be administered by the City and shall be used only for the purpose of providing funding assistance for the provision of affordable housing and reasonable costs of administration consistent with the policies and programs contained in the housing element of the General Plan.
(Ord. 1565 § 2, 2018)
The preliminary project application/review process shall be as follows:
A. 
An applicant of a residential development, proposing an inclusionary housing project shall have an approved site development plan prior to execution of an affordable housing agreement for the project. The applicant may submit a preliminary application to the director of the Department of Economic and Community Development prior to the submittal of any formal applications for such housing development. The preliminary application shall include the following information if applicable:
1. 
A brief description of the proposal, including the number of inclusionary units proposed;
2. 
The zoning, General Plan designations and assessor’s parcel number(s) of the project site;
3. 
A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, building elevations, existing contours and proposed grading; and
4. 
A letter identifying what specific offsets, incentives and/or adjustments are being requested of the City. Justification for each request should also be included.
B. 
Within 30 days of receipt of the preliminary application by the planning director for projects not requesting offsets or incentive adjustments, or 90 days for projects requesting offsets or incentive adjustments, the Economic and Community Development Department shall provide to an applicant a letter which identifies project issues of concern, the offsets and incentive adjustments that the City Manager or designee can support when making a recommendation to the final decision-making authority, and the procedures for compliance with this chapter. The applicant shall also be provided with a copy of this chapter and related policies, the pertinent sections of the California codes to which reference is made in this chapter and all required application forms.
(Ord. 1565 § 2, 2018)
This chapter requires the following:
A. 
Applicants subject to this chapter shall demonstrate compliance with this chapter by executing an affordable housing agreement prepared by the Department of Economic and Community Development and submitted to the applicant for execution. Agreements which conform to the requirements of this section and which do not involve requests for offsets and/or incentives, other than those permitted by right, if any, shall be reviewed by the City Manager or designee and approved by the City Manager or designee.
B. 
Agreements which involve requests for offsets and/or incentives, or for alternate means of compliance with the inclusionary housing requirements, other than those permitted by right, shall require the recommendation of the Department of Economic and Community Development and action by the City Council as the final decision-maker.
C. 
Following the approval and execution by all parties, the affordable housing agreement with approved site development plan shall be recorded against the entire development, including market-rate lots and units and the relevant terms and conditions therefrom filed and subsequently recorded as a separate deed restriction or regulatory agreement on the affordable project individual lots or units of property which are designated for the location of inclusionary units.
D. 
The approval and execution of the affordable housing agreement shall take place prior to final map approval and shall be recorded upon final map recordation or, where a map is not being processed, prior to the issuance of building permits for such lots or units.
E. 
The affordable housing agreement may require that more specific project and/or unit restrictions be recorded at a future time.
F. 
The affordable housing agreement shall provide that the project applicant pay an administrative fee to reimburse the City for all administrative and processing costs and fees incurred in processing the affordable housing plan and implementing the requirements of this chapter on a project specific basis. The City may waive the administrative fee as an incentive or offset for the provision of inclusionary units.
G. 
The affordable housing agreement shall bind all future owners and successors in interest for the term of years specified therein.
H. 
An affordable housing agreement, for which the inclusionary housing requirement will be satisfied through new construction of inclusionary units, either on-site or off-site, shall establish, but not be limited to, the following:
1. 
The number of inclusionary dwelling units proposed, with specific calculations detailing the application of any incentive adjustment credit;
2. 
The unit square footage, and number of bedrooms;
3. 
The location of the inclusionary units;
4. 
Amenities and services provided, such as daycare, after school programs, transportation, job training/employment services and recreation;
5. 
Level and tenure of affordability for inclusionary units;
6. 
Schedule for production of dwelling units;
7. 
Approved offsets provided by the City;
8. 
Where applicable, requirements for other documents to be approved by the City, such as marketing, leasing and management plans; financial assistance and loan documents; resale agreements; and monitoring and compliance plans;
9. 
Where applicable, identification of the affordable housing developer and agreements specifying their role and relationship to the project;
10. 
An affordable housing agreement, for which the inclusionary housing requirement will be satisfied through payment to the City of any in-lieu contributions other than fee monies, such as land dedication, shall include the method of determination, schedule and value of total in-lieu contributions;
11. 
An affordable housing agreement will not be required for projects which will be satisfying their inclusionary housing requirement through payment to the City of an in-lieu fee unless the applicant requests payment options not provided by this chapter.
(Ord. 1565 § 2, 2018)
The City or its designee shall have a first right of refusal to purchase inclusionary for sale units offered for sale during the tenure of affordability. The first right of refusal to purchase the affordable unit shall be submitted in writing to the director of the Department of Economic and Community Development. Within 90 days of its receipt, the City shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing.
(Ord. 1565 § 2, 2018)
Any project for which an executed development agreement has become effective prior to the effective date of the ordinance codified in this chapter, or for which a complete application for a vesting tentative map has been filed prior to the effective date of the ordinance codified in this chapter, shall not be subject to the requirements of this ordinance, but shall be subject to the requirements of the City’s inclusionary housing ordinance, if any, in effect at the time the development agreement became effective or the complete vesting tentative map application was filed.
(Ord. 1565 § 2, 2018)
Enforcement provisions are as follows:
A. 
The provisions of this chapter shall apply to all applicants and their agents, successors and assigns proposing a residential development governed by this chapter. No building permit or occupancy permit shall be issued, nor any entitlement granted, for a project which is not exempt and does not meet the requirements of this chapter. All inclusionary units shall be rented or owned in accordance with this chapter.
B. 
The applicant and its agents, successors and assigns shall annually certify tenants as to the income eligibility for occupancy of inclusionary rental units and the annual certification shall be submitted to the Department of Economic and Community Development. If applicant and its agents, successors and assigns fail to perform an annual certification, applicant shall be fined $1,000.00 for each inclusionary unit whose tenants were not subject to an annual certification. The City shall continue to fine the applicant an additional $1,000 for every 30-day period for each inclusionary unit whose tenants have not been subject to an annual certification. City shall take steps to assess these fines as a lien against either the property where the inclusionary units are located or against the project property.
C. 
If applicant at any time fails to make available or to provide below inclusionary rental unit at the required affordable rent levels, applicant is subject to a fine of $2,500.00 for each inclusionary unit not provided pursuant to the affordable housing agreement. The City shall continue to fine applicant an additional $2,500.00 for every 30-day period after the initial fine for each inclusionary unit not provided pursuant to the affordable housing agreement. City shall take steps to assess these fines as a lien against either the property where the inclusionary units are located or against the subject property.
D. 
If an owner sells a for-sale inclusionary unit during the 55 year affordability term at a price higher than the maximum resale price in violation of this chapter, the City will be entitled to receive from the seller the difference between the maximum resale price and the actual sales price of the inclusionary unit. If an owner rents a rental inclusionary unit during the 55 year affordability term at a rent higher than the affordable rent in violation of this chapter, the City will be entitled to receive from the owner the difference between the affordable rent and the actual rental amount of the inclusionary unit. Any funds recaptured by the City shall be placed in the housing trust fund as set forth in Section 20.380.012 of this chapter.
E. 
The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including, but not limited to, actions to revoke, deny or suspend any permit or development approval. In the event the City must institute legal action to enforce the provisions of this chapter, the City shall be entitled to recover its administrative costs, including reasonable attorneys’ fees, in addition to any other remedy provided by the court.
(Ord. 1565 § 2, 2018)
All code provisions, ordinances, and parts of ordinances in conflict with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this ordinance, under any chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal.
(Ord. 1565 § 2, 2018)