This chapter is adopted in accordance with Article XI, Section
7 of the California Constitution and Government Code Sections 65850
and 65850.1 for the purpose of establishing requirements, standards,
and procedures to facilitate affordable housing development for a
range of households with varying income levels.
(Ord. 2237 § 4, 2023)
Unless the contrary is stated or clearly appears from the context,
the following definitions govern the construction of the words and
phrases used in this chapter:
means dwelling units made available to low-, very low-, or
moderate-income households.
has the same meaning as set forth in Health and Safety Code
Section 50052.5 and any successor statute or regulation.
has the same meaning as set forth in Health and Safety Code
Section 50053 and any successor statute or regulation.
means the median family income of a geographic area.
means the person or persons seeking city approval of a project.
means the City Manager, or designee.
means one or more rooms, designed, occupied, or intended
for occupancy as separate living quarters, with full cooking, sleeping,
and bathroom facilities for the exclusive use of a single household.
means a household eligible to purchase or rent an inclusionary
housing unit, as applicable.
means a facility, place, or building, other than a hospital,
which is maintained and operated as a residence for patients to provide
them long-term medical care, and includes nursing homes, intermediate
care facilities, extended care facilities, hospice homes, and similar
facilities licensed by the California Department of Health Services
pursuant to Health and Safety Code Section 1200, et seq.
means the United States Department of Housing and Urban Development.
is a fee adopted by city council resolution in accordance
with this chapter the payment of which may satisfy a developer's obligations
in this chapter.
means a dwelling unit built pursuant to the requirements
of this chapter and made available to very low-, low-, or moderate-income
households.
means a household income that does not exceed 80% of area
median income for Los Angeles County, as published periodically by
HUD, pursuant to Health and Safety Code Section 50079.5 and any successor
statute or regulation.
means a dwelling unit where the rental rate or sales price
is not restricted by applicable law.
means a household income that does not exceed 120% of area
median income for Los Angeles County, as published periodically by
HUD, pursuant to Health and Safety Code Section 50093 and any successor
statute or regulation.
means any residential or mixed-use proposal for the creation
of five or more new dwelling units.
means a household income that does not exceed 50% of area
median income for Los Angeles County, as published periodically by
HUD, pursuant to Health and Safety Code Section 50105 and any successor
statute or regulation.
(Ord. 2237 § 4, 2023)
(A)
This chapter applies to projects for rent or sale, including the
residential portions of mixed-use developments. It may also be incorporated
as a public benefit into any development agreement approved pursuant
to this code.
(B)
The following are exempted from this chapter's requirements:
(1)
Any eligible project for which the city enters into a development
agreement that provides comparable community benefits, as determined
by the City Council.
(2)
Any eligible project that is 100% affordable for very low-, low-,
or moderate-income households that will be deed-restricted for a period
of at least 55 years for rental units or 45 years for for-sale units.
(3)
Development of emergency shelters, community care facilities, or
health care facilities.
(4)
Reuse of a designated landmark or contributing structure for housing
within a historic district.
(5)
Accessory dwelling units, junior dwelling units, or units created
pursuant to Government Code Sections 65852.21 and 66411.7, provided
that the replacement or restoration does not increase the number of
existing units by five or more.
(6)
Residential building additions, repairs, or remodels, provided the
work does not increase the number of existing units by five or more.
(7)
Replacement or restoration of residential units damaged or destroyed
by fire, flood, earthquake, or other disaster, provided that the replacement
or restoration does not increase the number of existing units by five
or more.
(8)
Any eligible project otherwise exempt under state or federal law.
(Ord. 2237 § 4, 2023)
(B)
Inclusionary Units for Sale. Developers with projects for sale must
sell 15% of the units to moderate-income households at an affordable
housing cost.
(C)
Calculation of Inclusionary Housing Units Fractional Units.
(1)
The percentage of inclusionary housing units required in this section
will be applied to the project's total number of proposed dwelling
units.
(2)
If an inclusionary housing unit calculation in this section results
in a fractional remainder, the developer may choose one of the following
options: round up to the next whole number when the fraction is one-half
or higher and provide the resulting unit on site; or pay the fractional
amount of inclusionary housing inlieu fees pursuant to this chapter.
(Ord. 2237 § 4, 2023)
(A)
Inclusionary Housing In-lieu Fee; Affordable Housing Trust Fund.
(1)
The inclusionary housing unit requirements of this chapter may be
satisfied if the developer causes an inclusionary housing in-lieu
fee to be paid to the city. This may be accomplished by providing
some of the required inclusionary housing units onsite and paying
the in-lieu fee required under this section for any remaining, required
inclusionary housing units.
(2)
The inclusionary housing in-lieu fee must be paid, in full, to the
city before it issues a final certificate of occupancy for the project.
(3)
An affordable housing trust fund is created. All funds authorized
in this chapter must be deposited into this inclusionary housing trust
fund. The monies in such fund must be used exclusively for providing
affordable housing in the city and for reasonable costs associated
with the acquisition, development, maintenance, improvement, and oversight
of affordable housing. Such additional uses may be designated by City
Council resolution.
(B)
Off-Site Units. The Director may determine that a developer has met
this chapter's requirements if the developer develops, or causes a
qualified third-party affordable housing developer to develop, allocated
affordable housing units off-site on property located within the city's
jurisdiction in accordance with the following requirements:
(1)
Any third party (e.g., a nonprofit housing agency) the developer
associates with to create off-site units under this section must agree,
in writing, to all the provisions of this chapter and be a signatory
to the inclusionary housing agreement required under this chapter.
(2)
The off-site affordable units developed must at least be equal to
the inclusionary housing units required for the project and consistent
with the standards set forth in this chapter.
(3)
To ensure the creation of the off-site affordable units, developer
must provide a surety, in a form approved by the City Attorney, equal
to 25% of the total estimated cost to construct the off-site affordable
units to ensure performance. Examples of sureties that may be acceptable
include the following: performance bonds; surety bonds; cash deposits;
money orders; letters of credit; and certificates of deposit. The
Director will relinquish the surety at the time that the Building
Official issues a final certificate of occupancy for the last of the
off-site affordable units.
(4)
The developer must pay an in-lieu fee in an amount required by this
chapter to the city in the event the off-site units are not timely
completed.
(C)
Land Dedication or Conveyance. The Director may determine that a
developer met this chapter's requirements if the developer dedicates
off-site real property in accordance with all the following requirements:
(1)
The property must be fully within the city's jurisdiction.
(2)
The developer must identify and offer for dedication or conveyance
the property subject to this section at the time of project application
and concurrently provide proof to the Director's satisfaction evidencing
the property's value and developer's transferable, unencumbered interest
in the property.
(3)
The developer must provide evidence to the Director's satisfaction
that shows the property is free from environmental contamination,
has access to public streets, and utilities, and suitable for affordable
housing development pursuant to applicable law.
(4)
The land must be transferred to the city or city-approved developer
specializing in affordable housing development.
(5)
The land and constructed units thereupon must be deed restricted,
in a manner approved by the City Attorney, that secures the units'
continued affordability.
(6)
The City Manager will make a recommendation to the City Council whether
to accept or deny the proposed dedication or conveyance. The city
has no obligation to accept any proposed dedication or conveyance
made in accordance with this subsection.
(Ord. 2237 § 4, 2023)
(A)
Projects with inclusionary housing units are subject to the following
requirements:
(1)
The developer must identify all contiguous property under common
ownership or control in its project application. If the developer
does not plan to develop all such property, then it must record a
covenant, in a form approved by the City Attorney, requiring that
such undeveloped property include inclusionary housing units or pay
the in-lieu fee as required by this chapter at such future date that
an application is filed for ministerial or discretionary approval
of a residential development subject to this chapter. Such covenant
must run with the land and be effective for at least 30 years pursuant
to Civil Code Section 885.030;
(2)
All inclusionary housing units must be reasonably dispersed throughout
the project to avoid any concentration of inclusionary units within
a project;
(3)
All inclusionary housing units must be comparable to market rate
units included within a project in terms of number of bedrooms, design,
materials, size, finished quality, appearance, or other material conditions;
(4)
All inclusionary housing units must be accessible to project amenities,
utilities, and facilities available to market rate units at the same
or lower cost chargeable, if at all, to market rate units;
(5)
All inclusionary housing units must be constructed before or concurrent
with the construction of market rate units in the project, and in
phased projects, inclusionary housing units may be constructed in
proportion to the number of units in each phase of the residential
development;
(6)
A developer must submit a written report to the Director, within
30 days of the Director's written request, that identifies the income
and family size of the occupants of the inclusionary unit. The city
may impose a fee established by City Council resolution to recover
its associated regulatory costs pursuant to this chapter.
(B)
Inclusionary housing units for sale are subject to the following
restrictions:
(1)
Such for-sale units must be deed restricted to the target household
income group for a minimum of 45 years;
(2)
The developer, property owner, and all subsequent owners of an inclusionary
housing unit offered for sale must certify, in a form and content
acceptable to the Director, the purchaser's income;
(3)
An owner of such a for-sale unit is prohibited from leasing or renting
the unit unless the city gives its prior written consent to such lease
or rental based on economic hardship, shown by substantial evidence
by the owner;
(4)
Except as otherwise provided, a purchaser of inclusionary housing
units offered for sale must occupy the unit as a "principal residence"
as such term is defined for federal tax purposes in the United States
Internal Revenue Code. Upon good cause shown, supported by substantial
evidence, the Director may allow a purchaser to rent inclusionary
housing units to persons within the same household income category;
(5)
The city must approve subsequent owners of such for-sale units who
must meet the same qualifications as the original owner;
(6)
Before the escrow closing for such a for-sale unit, the seller must
provide written notice to the buyer of the affordability restrictions
including, without limitation, resale price restrictions, in a document
written in plain language and approved in writing by the Director;
(7)
Title in a for-sale unit may transfer because of changes in circumstance
including, without limitation, death, marriage, and divorce. Except
as otherwise provided, if such a changed circumstance results in a
title transfer which causes a household to become ineligible for an
inclusionary housing unit then the housing unit must be sold to an
eligible household within nine months after such title transfer occurs;
(8)
Upon the death of one owner, title in the for-sale unit may transfer
to the surviving joint tenant without respect to the joint tenant's
household income eligibility;
(9)
If a for-sale unit is sold for an amount more than the resale price
authorized under this chapter, the buyer and seller are jointly liable
to the city for the entire purchase price of the unit. Funds recovered
by the Director must be deposited in the affordable housing trust
fund. The foregoing notwithstanding, the Director may allow the buyer
and seller up to 180 days to cure any violation of this chapter's
resale price restrictions upon the buyer and seller's written request
for such cure period.
(C)
Inclusionary housing units for rent are subject to the following
restrictions:
(1)
Such rental units must be deed restricted to the target household
income group for a minimum of 55 years.
(2)
The owner of the rental units must certify to the Director, in a
form acceptable to the City Attorney, the income of the tenant at
the time of the initial rental and annually thereafter.
(3)
The renter of an inclusionary housing unit is prohibited from subleasing
the unit unless the Director gave its prior written consent to such
sublease based on demonstrated hardship by the renter as shown by
substantial evidence. Any rent obtained through an unpermitted sublease
of an inclusionary housing unit is forfeited to the city, and recovered
funds must be deposited in the affordable housing trust fund.
(4)
The Director may require the execution and recording of whatever
documents are necessary or useful in ensuring enforcement of this
section, in a form approved by the City Attorney, which must be recorded
against all applicable inclusionary units.
(5)
Before the escrow closing of an inclusionary housing unit for rent,
the seller must provide written notice to the buyer of the affordability
restrictions including, without limitation, to resale price restrictions
in a document written in plain language and approved in writing by
the Director.
(Ord. 2237 § 4, 2023)
(A)
Unless otherwise provided, only eligible households are authorized
to occupy inclusionary housing units in this chapter.
(B)
Elected and appointed officials or employees of the city subject
to the city's conflict of interest code are ineligible to occupy an
inclusionary housing unit created under this chapter.
(Ord. 2237 § 4, 2023)
No application for a project subject to this chapter's requirements
will be complete until the developer submits an inclusionary housing
plan to the city in a form acceptable to the Director that contains
all of the following, as applicable:
(A)
The number, type, and location of all inclusionary housing units
for the project;
(B)
Any requested modifications or waivers and the basis therefor;
(C)
A detailed methodology for determining the rental rates or sale prices
of all inclusionary housing units;
(D)
The affordability level and affordability term for each inclusionary
housing unit;
(E)
Deed restrictions, including applicable sale and rent limitations
set forth in this chapter;
(F)
A timeline of project phasing, including completion timelines for
inclusionary housing units in relation to market rate units;
(G)
The financing for ongoing monitoring and administrative costs;
(H)
Enforcement mechanisms to ensure that inclusionary housing units
are occupied by eligible households and are not sold, rented, leased,
sublet, assigned, or otherwise transferred to non-eligible households;
(I)
The manner in which inclusionary housing units will be marketed and
filled, including the screening and qualifying of prospective renters
or purchasers of inclusionary housing units.
(Ord. 2237 § 4, 2023)
(A)
A written inclusionary housing agreement, in a form approved by the
City Attorney, must be entered into between the developer and the
city for any project providing onsite inclusionary housing units or
off-site inclusionary housing units pursuant to this chapter.
(B)
The inclusionary housing agreement must include the following:
(1)
All information required for an inclusionary housing plan;
(2)
A clause authorizing the recovery of city costs, including, without
limitation, attorney's fees, incurred in any action taken to enforce
compliance with the inclusionary housing agreement;
(3)
Any additional reasonable information the Director requires in ensuring
compliance with this chapter.
(C)
The Building Official will not issue a building permit for a project
subject to this section's requirements until all of this chapter's
applicable requirements are satisfied, including, without limitation,
full execution of an inclusionary housing agreement.
(D)
The inclusionary housing agreement must be recorded with the Los
Angeles County Recorder and will run with the land, binding any developer
successor in interest, including bona fide purchasers.
(Ord. 2237 § 4, 2023)
(A)
The Director may modify or waive this chapter's requirements if the
developer demonstrates for good cause shown and by substantial evidence
to the Director that this chapter's application would constitute a
violation of applicable law or a taking of property in violation of
the United States or California Constitutions.
(B)
Any developer requesting an adjustment or waiver of this chapter's
requirements must submit documentation concurrently with filing the
project application that presents substantial evidence to support
the adjustment or waiver request. This documentation must set forth
in detail the factual and legal basis for any such claim.
(C)
Before or in conjunction with a decision on the proposed project,
the Director must render a written decision on the proposed adjustment
or waiver of this chapter's requirements. The Director's decision
may be appealed to the Planning Agency in a manner provided in this
code.
(Ord. 2237 § 4, 2023)
(A)
The City Council may establish fees or regulations by resolution
for the city's ongoing administration of this chapter.
(B)
Any public official, employee, or agent's failure to fulfill this
chapter's requirements does not excuse any person, owner, household,
or other party from complying with such requirements.
(C)
The Building Official may not issue a final certificate of occupancy
for a project subject to this chapter's requirements until all of
this chapter's applicable requirements are satisfied, unless otherwise
provided in an inclusionary housing agreement.
(D)
In addition to the general remedies provided in this code and other
applicable law, the City Attorney is authorized to take any appropriate
enforcement action to ensure compliance with this chapter, including,
without limitation:
(1)
Actions to revoke, deny, or suspend any permit, including a building
permit, certificate of occupancy, or discretionary approval;
(2)
Actions to recover civil fines, restitution to prevent unjust enrichment
for violating this chapter, and/or enforcement costs, including attorney's
fees;
(3)
Eviction or foreclosure;
(4)
Any other appropriate action for injunctive relief or damages.
(Ord. 2237 § 4, 2023)
