Chapter 19.22 AFFORDABLE HOUSING REQUIREMENTS AND INCENTIVES

§ 19.22.010 Purpose.

This chapter provides requirements and incentives for the development of affordable housing units in conjunction with other residential and mixed use projects and commercial projects in partnership with affordable housing providers as provided under state law. These provisions are intended to implement General Plan policies encouraging the production of affordable housing for all economic groups, and housing for disabled and older residents, transitional foster youth, and disabled veterans, and homeless persons as defined in Government Code Section 65915, all of which is integrated, compatible with and complements adjacent uses, and is located near public and commercial services.

The incentives offered in this chapter are used by the city as one means of meeting its commitment to encourage housing affordable to all economic groups, and to meet its regional fair share requirements for the construction and rehabilitation of housing affordable to very low, low, moderate, and above moderate income persons.

This chapter shall be interpreted in a manner supplementary to and consistent with California Government Code Chapter 4.3 (State Density Bonus Law).

(Ord. 01-594 § 2, 2001; Ord. 07-763 § 7, 2007; Ord. 18-1044 § 8, 2018)

§ 19.22.020 Applicability.

This chapter shall apply to the following:

The construction of all residential units;

Common interest developments created through the conversion of existing residential units that were not subject to the city's affordable housing requirement at the time of construction; and

A residential or mixed commercial/residential development including a child care facility that will be located on the premises of, as part of, or adjacent to, such a housing development, under California Government Code Section 65915.

Exemptions. The provisions of this chapter shall not be applicable to the following:

A new single-family dwelling or the replacement of one single-family dwelling with another single-family dwelling;

Accessory dwelling units and junior accessory dwelling units; and

Commercial development projects, except as may be applicable to obtain development bonuses under California Government Code Section 65915.7, where the developer of a commercial project has entered into an agreement for partnered housing with an affordable housing developer and provides affordable housing through a joint project or through two separate projects encompassing affordable housing.

(Ord. 01-594 § 2, 2001; Ord. 02-643 § 19, 2003; Ord. 07-763 § 7, 2007; Ord. 18-1044 § 8, 2018)

§ 19.22.025 Processing Density Bonus Applications.

The application for a density bonus and/or concessions shall be processed concurrently with the underlying land use permit and entitlement application and in accordance with the procedures set forth in Section 19.40.040. In addition to any other applicable application requirements, the application shall be made on a form supplied by the Community Development Department and shall include:

A density bonus proposal that includes a description of the unit counts that make the project eligible for the requested density bonus, including any known income information for any tenants necessary to apply the requirements of Section 19.22.050(B) below;

A proposal for the specific concessions the applicant requests. For "other regulatory concessions" under Section 19.22.050(E)(2)(f) other than an additional story, the applicant shall provide an explanation of the regulatory concession and how it results in identifiable and actual cost reductions for the project to offset the affordable housing costs, or for rents for the targeted units as specified in Government Code Section 65915. The intent of this requirement is to provide reasonable documentation to establish eligibility for the concession or to demonstrate the concession meets the definition set forth in Section 65915. The explanation may be, but is not required to be, in narrative form;

A proposal for any requested waiver or reduction of the development standard if compliance with a development standard would physically preclude construction of the project as proposed. The proposal shall include an explanation of how the development standard would physically preclude construction of the project as proposed; and

A proposal for any requested reduction in parking ratios under Section 19.22.050(F) and an explanation for how the project is eligible for the requested reduction.

Review Authority. A request for density bonus or concession shall be reviewed concurrently with and by the same review authority as the underlying application for land use permits and entitlements as set forth in Section 19.40.020.

Application for Density Bonus Housing Agreement. Once the land use permits, entitlements and any density bonus have been approved as described above, the applicant shall file an application, including the payment of any processing fees with the Housing Division for approval and finalization of the Agreement Imposing Restrictions on Real Property (Density Bonus Housing Agreement).

(Ord. 18-1044 § 8, 2018; Ord. 24-16, 6/24/2024)

§ 19.22.030 Affordable Units Required.

Requirement. Projects subject to this chapter shall permanently set aside the following number of units as affordable to and reserved for very low-, low- and moderate-income households as determined by eligibility requirements and a rental and sales price schedule established annually by Council resolution. Unless otherwise noted, inclusionary units provided shall be of comparable size and finish quality to the non-inclusionary units. Units types shall be determined as outlined in subsection F. Projects subject to a unit replacement requirement under state law are still required to meet the local inclusionary requirement as detailed below by providing additional affordable units to satisfy this requirement:

Projects of 10 or Fewer Units. One unit.

Projects of 11 to 20 Units. 20 percent of the base unit count (alternating as set forth in subsection F below). All affordable units shall be of comparable size and finish quality to the non-inclusionary units, or provided as units that are a minimum of one bedroom and minimum interior area of 650 square feet with finishes and appliances of "builder's quality" or better.

Projects of 21 to 40 Units. 20 percent of the base unit count (alternating as set forth in subsection F below). All affordable units shall be of comparable size and finish quality to the non-inclusionary units, or 30 percent of the unit count of all non-inclusionary units provided with units that are a minimum of one bedroom and minimum interior area of 650 square feet with finishes and appliances of "builder's quality" or better.

Projects of 41 Units or More. 20 percent of the base unit count (alternating as set forth in subsection F below). All affordable units shall be of comparable size and finish quality to the non-inclusionary units, or if it would result in additional inclusionary units and units that better serve the affordable housing needs of the city, project shall provide 20 percent of the gross residential floor area of all non-inclusionary units as affordable housing units. If the floor area calculation is used, units provided shall be comparable in size to non-inclusionary units, or provided as a minimum of one bedroom and a minimum interior area of 650 square feet with finishes and appliances of "builder's quality" or better.

For mixed-use projects in the mixed-use overlay zone, applicants are permitted to choose their residential base unit count, provided it complies with the applicable FAR limitations and any size limitations for habitable units in the Building Code (and all other applicable standards that could limit the size or number of units).

Common Interest Development Conversions. If the existing residential units to be converted to a common interest development include rental inclusionary housing units, the inclusionary units shall be sold as ownership affordable units, or upon approval from the city can be retained as affordable rental units.

If the city authorizes the affordable rental units to be retained, the owners shall record a covenant guaranteeing the affordability of the rental units and waiving certain rights granted by state law (Government Code Section 7060 et seq.) for the life of the project.

If the units are to be sold to targeted income groups, the owners shall record a covenant restricting future sales prices to levels affordable to the targeted income group and subject to the requirements in Section 19.22.090.

Before approval of a final map, the applicant shall post tenant relocation fees for each inclusionary unit in an escrow account approved by the Community Development Director and the Finance Director. The amount deposited for each inclusionary unit shall be the maximum amount of tenant relocation fees allowed under the Rent Stabilization Ordinance. Tenant relocation fees shall be paid in compliance with the Rent Stabilization Ordinance.

Any difference between the amount of fees deposited by the applicant and the amount payable to the displaced tenant shall be refunded to the applicant. Any costs associated with the escrow accounts shall be paid by the applicant.

Unit Size, Type, and Location.

Unless otherwise permitted by other sections of the Zoning Ordinance, inclusionary units shall be reasonably dispersed throughout the project, shall 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 appearance, finished quality, and materials as approved by the review authority.

The Planning Commission, or City Manager as a minor modification of an approved development agreement, may modify the requirements as to unit size or type if it finds that a modification would better serve the affordable housing needs of the city.

While the intent is for inclusionary units to be dispersed throughout the project as much as possible, inclusionary units may be clustered within a building if the review authority, or City Manager as a minor modification of an approved development agreement, determines that such clustering results in the creation of more affordable units than would otherwise be provided, or provides a documented public benefit, or due to circumstances unique to the project size, location or design otherwise better serves the affordable housing needs of the city.

The Planning Commission, may modify the requirement that inclusionary units be reasonably dispersed throughout a project and approve placement of the units in a separate structure on the site if doing so would better serve affordable housing needs and if all of the following conditions are satisfied:

The project contains a minimum of 30 inclusionary units and inclusionary units constitute at least 25 percent of the number of units in the market-rate portion of the project.

The inclusionary units are of comparable quality and materials of the market-rate units unless it can be demonstrated that this is infeasible.

The inclusionary units will be available for rental and will be actively marketed for rental at the same time as the market-rate units are available for occupancy, and rented within a time frame determined by the affordable housing agreement.

The inclusionary units will be managed by an experienced non-profit housing provider that is familiar with the West Hollywood area, population and needs.

Prior to issuance of any building permit for the project as a whole, the developer will provide a signed operating agreement with the non-profit housing provider acceptable to the City Council.

Prior to issuance of any building permit for the project as a whole, the developer will enter into and record an affordable housing agreement with the City of West Hollywood further describing conditions and covenants affecting the building including, but not limited to, income and rent restrictions, reporting requirements, capital reserve requirements, and programming.

The inclusionary units shall not be liable for any homeowners, condominium, or other fees or dues, and shall not be otherwise responsible for the debts or maintenance of the market rate portion of the project.

Covenants, conditions and restrictions of the market rate portion of the project shall contain provisions that ensure access to facilities as described in the affordable housing agreement, including, but not limited to, parking, access, and amenities that will be shared; representation, if any on the Condominium Board, and requirements for mediation of disputes.

The project will be owned by the developer or an affiliate of the developer for a period of time as designated in the affordable housing agreement, but in no event less than five years from issuance of a certificate of occupancy. The agreement will provide for a waiver of developer's and its successor's rights under Government Code Section 7060 et seq., to remove the inclusionary units from the rental market. If, after the period of ownership prescribed in the agreement the developer wishes to relinquish ownership, it may be sold subject to city approval under terms that will enable the non-profit operator to operate the project under the requirements of this section and the affordable housing agreement.

An on-site resident manager will be in place to serve the tenants occupying the inclusionary units.

The inclusionary units will receive the same quality of maintenance and capital improvements (excluding unit-specific upgrades) as the market-rate units. In addition, at a minimum, maintenance will be performed in accordance with Chapter 17.56 of this Code.

The inclusionary units will be covered with comparable insurance protection as provided to the market-rate development and common areas.

The developer will provide special services to the inclusionary unit tenants based on tenants' needs. These services shall be provided by a qualified non-profit provider. These services shall include a resident service coordinator and case management services. A full description of the services to be provided shall be included in the operating agreement.

The provision of affordable housing under this section will qualify the developer for bonus densities as provided in this Code and state law.

Builders Quality. "Builders quality" appliances and materials shall mean those of durable, good and lasting quality, consistent with any applicable City Code requirements, and to the satisfaction of the Community Development Director.

Inclusionary units shall have the same number and type of appliances as non-inclusionary units. The exterior of inclusionary units shall be of the same appearance, finished quality and materials as the non-inclusionary units and shall be indistinguishable from the non-inclusionary units.

When only one affordable dwelling unit is constructed, it may be allocated for a very low, low or moderate income household. When two or more affordable units are constructed, the units shall be allocated alternately with the first unit allocated for a low or very low income household and the second allocated for a moderate income household, alternating between low or very low, and moderate income until all units are assigned a level of affordability.

Notwithstanding the affordable units required by this Section 19.22.030, the following provisions also apply. A housing development project shall not be approved if it requires demolition of one or more residential dwelling units unless the project will create at least as many units as will be demolished. A development project shall not be approved that will require the demolition of occupied or vacant protected units unless the project complies with the applicable replacement provisions of California Government Code Section 66300.6. The terms used herein are defined in Government Code Section 66300.5, if not otherwise defined in the Zoning Ordinance.

If any dwelling units are subject to Title 17 (Rent Stabilization) of this Code and are occupied on the date of application or within the past five years by persons or families of an above lower-income category, the project shall provide at least the same number of units of equivalent size and those units shall be subject to Title 17 (Rent Stabilization) of this Code (notwithstanding anything to the contrary in WHMC Section 17.24.010(a)(4)).

In the event of any inconsistency between any applicable state law replacement requirements and this Chapter, Government Code Section 66300.6 controls.

(Ord. 01-594 § 2, 2001; Ord. 03-649 §§ 3, 4, 2003; Ord. 05-719 § 5, 2006; Ord. 07-763 § 7, 2007; Ord. 07-774 § 5, 2007; Ord. 08-801 § 5, 2008; Ord. 14-934 § 4, 2014; Ord. 18-1044 § 8, 2018; Ord. 19-1058 §§ 36 – 38, 2019; Ord. 21-1137 § 6, 2021; Ord. 23-23 §§ 4, 5, 2023; Ord. 24-16, 6/24/2024; Ord. 24-26, 10/7/2024)

§ 19.22.040 Affordable Housing Fees.

In-lieu Fee. Developers of residential projects with 10 or fewer units may choose to pay a fee, in-lieu of providing the required affordable unit on site.

Amount of Fee. The amount of the in-lieu fee shall be calculated in compliance with the Council's Fee Schedule.

Timing of Payment. The fee required by this section shall be paid before issuance of a building permit for the approved project.

Basis for Fee. Fees paid to fulfill the requirements of this section shall be computed based on the number and size of the units to be constructed. Unit size shall be gross livable floor area, including private balconies, decks and patios.

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 projects which have a minimum of 60 percent of the dwelling units affordable to low- and moderate-income households, with at least 20 percent of the units available to low income households. Only tax exempt nonprofit corporations seeking to create or preserve the housing in the city shall be eligible to apply to the Council for funding. The funds may, at the discretion of the Council, be used for predevelopment costs, land or air rights acquisition, administrative costs, gap financing, or to lower the interest rate of construction loans or permanent financing. In a project that includes market-rate units, trust fund monies shall only be provided to assist in the acquisition and construction of those units affordable to lower- and moderate-income households.

(Ord. 01-594 § 2, 2001; Ord. 05-719 § 6, 2006; Ord. 07-763 § 7, 2007; Ord. 18-1044 § 8, 2018)

§ 19.22.050 Affordable Housing Incentives.

This section provides density bonuses for specified housing projects and commercial projects that are affiliated with on-site or off-site affordable housing projects as set forth in Section 19.22.020.B.3. The provided affordable units qualifying a project for a bonus shall be affordable to and reserved for households at the income levels qualifying the project for the bonus for the length of time established by City Council resolution and in compliance with state law. For standards and bonuses for congregate care and senior housing projects, see Section 19.36.110 (Congregate Care and Senior Residential Projects).

Basis for Bonus. In order to encourage the construction of housing affordable to very low, low, and moderate income persons, transitional foster youth, disabled veterans, and homeless persons, and the replacement of residential rental units lost through new construction, density bonuses shall be allowed in compliance with this section.

Limitation on Use of Bonus. A density bonus shall not be:

Used in conjunction with a project paying a fee in-lieu of providing inclusionary units;

Used with, or added to another density bonus provided for in the West Hollywood Municipal Code in the residential zoning district. This does not preclude a project that provides affordable housing from requesting any other incentives or concessions provided by Chapter 19.22;

Used to increase any commercial floor area of a mixed-use project; the affordable housing density bonus shall only be applied to the residential floor area of the project, unless the project applies for a commercial density bonus under Government Code Section 65915.7 and referenced above in Section 19.22.020.B.3.

Used in conjunction with a project unless it complies with applicable replacement requirements in Government Code Section 65915(c)(3), Government Code Section 66300.6, and Section 19.22.030(G) above.

Permanently Dedicated Affordable Housing Density Bonus in R3 and R4 Zones.

A density bonus equal to the percentage of units permanently dedicated to very low-, low-, and moderate-income persons may be permitted in the R3 and R4 zones if:

The minimum percentage of all project units, including bonus units, permanently dedicated to very low-, low-, and moderate-income persons is 50 percent; and

The structure is maintained and operated by a non-profit organization.

100 Percent Affordable Housing Projects. For projects where 100 percent of all residential units, including total units and density bonus units, except manager's unit or units, are 100 percent affordable, where up to 20 percent of the units in the development may be for moderate-income households and the remainder of units are for very low- and low-income households, the following rents, bonuses, incentives, and parking requirements apply:

Density Bonus. There shall be no maximum number of units required.

Rents.

The rent for up to 20 percent of the units in the development shall be set at moderate-income rent, as defined in Section 50053 of the Health and Safety Code.

ii.

The rent for the remaining units in the development shall be low or very low-income units, set at an amount consistent with the maximum rent levels for a housing development that receives an allocation of state or federal low-income housing tax credits from the California Tax Credit Allocation Committee.

Concessions. Up to four concessions (see subsection E below) shall be permitted. Additionally, the project may also request a height increase of up to three additional stories, or 33 feet.

Parking. Parking shall not be required.

A deed restriction shall be placed on the property to restrict the units as affordable for a minimum of 55 years.

Density Bonus. As provided by state law and unless restricted by subsection B or as authorized by subsection C, projects may apply for housing density bonuses up to a maximum of 50 percent. Density bonuses shall be subject to the following:

Density Bonuses Permitted. The amount of density bonus granted shall be based on the following table:

Unit Type	Minimum % of Units	Density Bonus Granted	Additional Bonus for each 1% Increase in Units
Very Low-Income	5%	20%	2.5% bonus through 11% of units 3.75% from 11%—15% of units
Low-Income	10%	20%	1.5% bonus through 20% of units 3.75% from 20%—24% of units
Moderate-Income	10%	5%	1% bonus through 40% of units 3.75% from 41%—44%
Units for transitional foster youth, disabled veterans, or homeless persons, as those terms are defined in Government Code Section 65915, provided at the same affordability level as very low-income units for 55 years	10%	20% (of the same type of unit giving rise to the density bonus)	N/A

A density bonus for a land donation for a childcare center or construction of a childcare center shall be provided as set forth in Government Code Section 65915.

Density Bonus Calculations.

For the purposes of calculating the permitted housing bonus in residential zones, "density" shall refer to the maximum allowable residential density per square foot of site area permitted in the zone in which the project is located. The density bonus may result in more market rate units than would otherwise be permitted by the zone. When the affordable housing density bonus is utilized on a project in a residential zoning district, no other bonus for additional density provided for in the West Hollywood Municipal Code (e.g., green building, senior housing, etc.) shall be applied to that project. The base number of units used to calculate the bonus does not include units added by a density bonus awarded pursuant to this section.

For the purposes of calculating the permitted housing bonus in commercial zones, "density" shall refer to the maximum floor area ratio ("FAR") permitted in the zone in which the project is located, inclusive of applicable mixed-use bonuses. Because these projects are in the commercial zone, the FAR is not translated into a unit count for purposes of calculating the density bonus. In the commercial zones, the affordable housing density bonus authorized under this section shall only be used to increase the residential floor area of the project (unless otherwise authorized by Government Code 65915.7 as set forth in Section 19.20.020.B.3), but may be used in addition to any other applicable bonus available under the West Hollywood Municipal Code. In such event, the base FAR may be combined with any available mixed-use bonus to determine the density from which the affordable bonus will be calculated. Any other applicable bonus (e.g., senior housing, etc.) shall be added after the affordable housing density bonus calculation.

Any density calculation, including base density and bonus density, that results in a fractional number shall be separately rounded up to the next whole number.

All affordable units shall be constructed on site.

Concessions. In compliance with state law, projects that request a density bonus to provide on-site affordable housing (and commercial projects that partner with affordable housing developers and provide at least 30 percent of the total units for low-income households or at least 15 percent of the total units for very low-income households authorized by Government Code 65915.7 as set forth in Section 19.20.020.B.3) are eligible for concessions as follows. The number of available concessions may be combined from different categories below for a maximum of three concessions per project, or four concessions for 100 percent affordable projects.

Number of Concessions.

Percentage of Affordable Units	Number of Concessions Permitted
5% Very Low, 10% Low, or 10% Moderate	1
10% Very Low, 17% Low, or 17% Moderate	2
15% Very Low, 24% Low, or 24% Moderate	3
100% Very Low or Low, with up to 20% Moderate	4

Available Residential Concessions. The following concessions may be requested:

10 percent reduction in the minimum rear yard setback; or

10 percent reduction in the minimum front yard setback; or

10 percent reduction in the minimum side yard setback on one side; or

10 percent reduction in total common open space required; or

10 percent reduction in private open space for up to 50 percent of the units.

An additional story, not to exceed 10 feet of the total project height, or other regulatory concessions that result in identifiable and actual cost reductions to provide for affordable housing costs, or for rents for the affordable units as specified in Government Code Section 65915.

In addition to the four concessions permitted for 100 percent affordable housing projects, 100 percent affordable housing projects as outlined in subsection C, are permitted to have an additional three stories, or up to 33 feet.

Concessions may be denied by the review authority if one of the following findings can be made, based on substantial evidence:

The concession or incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs, or for rents for the targeted units to be set as specified in Section 65915 of the California Government Code;

The concession would have a specific adverse impact, as defined in Section 65915 of the California Government Code, upon public health and safety or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households; or

The concession would be contrary to state or federal law.

Review Authority.

The review authority for requests for concessions under this subsection E shall be the Planning Commission.

The review authority for requests for concessions under subsections E.2.a through e will be reviewed based on the number of unit threshold detailed in Table 4.2 of Section 19.48.030.

Parking Incentives. Density bonus housing development and projects that meet the requirements below shall be granted the following parking space requirements when requested by the developer, inclusive of handicapped and guest parking, which shall be granted to all units in the development. Guest parking shall not be required for projects utilizing the affordable housing density bonus provided in this section.

Number of Bedrooms	Required Parking Spaces per Unit***
0 to 1 bedroom	1
2 to 3 bedrooms	1.5
4 or more bedrooms	2.5
Projects with at least 20% low-income units, or at least 11% very low-income units***	0.5
100% affordable housing projects (see § 19.22.050.C)****	No requirement

Notes:
*	If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. A development project may provide on-site parking through a tandem and/or uncovered parking configuration.
**	If a residential or mixed residential/commercial development project includes the required (no-in-lieu payment) percentage of low-, very low-income, or includes a minimum 10 percent transitional foster youth, veteran, or homeless persons units, or provides for-rent housing for individuals who are 62 years of age or older, or is a special needs housing development and is located within one-half mile of a major transit stop where there is unobstructed access to a major transit stop from the development, then, upon the request of the developer, a parking ratio not to exceed 0.5 spaces per bedroom shall apply to the residential portion of the development.
***	Must be located within one-half mile of a major transit stop, with unobstructed access to the major transit stop from the development.
****	Must be located within one-half mile of a major transit stop, with unobstructed access to the major transit spot from the development OR for individuals 62 years of age or older and has either paratransit service or unobstructed access within one-half mile, to fixed bus route service that operates at least eight times per day.

Available Commercial Concessions. In addition to the other bonus and residential concessions provided in this chapter, commercial development projects that partner with affordable housing developers and provide at least 30 percent of the total units for low-income households or at least 15 percent of the total units for very low income households in accordance with Government Code Section 65915.7 as set forth in Section 19.22.020.B.3 are eligible for the following that is mutually agreed upon by the applicant and review authority:

Up to a 20 percent increase in maximum allowable intensity in the General Plan.

Up to a 20 percent increase in maximum allowable floor area ratio.

Up to a 20 percent increase in maximum height requirements.

Up to a 20 percent reduction in minimum parking requirements.

Use of a limited-use/application elevator for upper floor accessibility.

An exception to a zoning ordinance or other land use regulation.

(Ord. 01-594 § 2, 2001; Ord. 02-643 §§ 20, 21, 2003; Ord. 03-649 § 5, 2003; Ord. 07-763 § 7, 2007; Ord. 10-861 § 3, 2010; Ord. 18-1020 §§ 7—9, 2018; Ord. 18-1044 § 8, 2018; Ord. 21-1137 §§ 7—10, 2021; Ord. 23-23 § 6, 2023; Ord. 24-26, 10/7/2024)

§ 19.22.070 Off-Site Construction of Inclusionary Units.

Developers of residential projects containing 11 units or more may apply for an exception to Section 19.22.030 to provide required inclusionary housing off-site, at one or more approved sites. Application materials for the off-site project shall be filed concurrently with application materials for the main project. The Planning Commission may grant an exception allowing off-site inclusionary units only after first finding that:

The number of units to be provided off-site would be greater than the number required on-site;

All off-site inclusionary units will contain on average the same number of bedrooms as the non-inclusionary units in the project, and be comparable with the non-inclusionary units in terms of appearance, finished quality, materials, and location within the building; the Planning Commission may modify the requirements as to unit size or type if it finds that a modification would better serve the affordable housing needs of the City;

All inclusionary off-site units would 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;

Off-site inclusionary units shall be allowed only in those areas which are designated in the General Plan for medium to high density residential development (e.g., R3 and R4 zoning districts);

Off-site inclusionary units shall only be constructed and managed in conjunction with a nonprofit housing development corporation; and

Approval of the off-site inclusionary units shall not result in an over concentration of low income housing in any specific neighborhood within the city.

(Ord. 01-594 § 2, 2001; Ord. 07-763 § 7, 2007; Ord. 18-1044 § 8, 2018; Ord. 19-1058 § 39, 2019)

§ 19.22.080 Implementation of Inclusionary Unit Provisions.

Resolution of Approval. The resolution approving a development permit for any project which provides inclusionary units shall specify the following items:

The density bonus being provided;

Whether an in-lieu fee is required;

The number and square footage of inclusionary units to be provided;

The number and square footage of units at each applicable sales price or rent level, and the number of parking spaces provided to each unit; and

A list of any other concessions, reductions or waivers approved by the city.

Fee. If an in-lieu fee is required, the fee shall be determined in accordance with Section 19.22.040.

Agreements. All projects that provide inclusionary units and/or use a density bonus, concession or waiver under this chapter shall execute and record the city's Agreement Imposing Restrictions on Real Property before any building permit will be issued for the project. The agreement shall explain the affordability restrictions and requirements in clear and precise terms.

Construction Schedule. All inclusionary affordable units in a market-rate development shall be constructed concurrently with or before the construction of the non-inclusionary units.

Phasing. In the event a phased project is approved by the city, required affordable units shall be provided proportionally within each phase.

Occupants. New inclusionary affordable units shall be occupied in the following manner:

If residential rental units are being demolished and the existing tenants earn very low, low, or moderate incomes and meet all qualifying requirements, the tenants shall be given the right of first offer to occupy the new affordable units;

If there are no qualified tenants, or if the qualified tenants choose not to exercise the right of first offer, or if no demolition of residential rental units occurs, then qualified tenants shall be selected from the city's Inclusionary Housing Waiting List; or

If the new inclusionary unit is a sales unit and the existing tenants decline the unit or are not qualified applicants, the city shall conduct a lottery to select qualified prospective buyers.

(Ord. 01-594 § 2, 2001; Ord. 07-747 § 3, 2007; Ord. 07-763 § 7, 2007; Ord. 14-934 § 5, 2014; Ord. 18-1044 § 8, 2018; Ord. 19-1057 § 6, 2019)

§ 19.22.090 Rental, Sale and Re-Sale of Inclusionary and Affordable Units.

Any affordable unit provided to fulfill a requirement of this chapter shall be permanently reserved for and occupied by qualified households meeting the affordable income requirement specified for the unit in the Resolution of Approval, Agreement Imposing Restrictions on Real Property, and all other eligibility requirements. Eligibility requirements and a rental and sales price schedule for very low, low, and moderate income households shall be established annually by Council resolution. Newly constructed inclusionary units shall first be offered to eligible households displaced by the demolition necessary to construct the project.

Rental of Units.

If units are offered for rent, the project owner or developer shall rent the units directly to the required number of very low, low and moderate income households at the rental rate established by Council resolution.

The rental rate shall include charges for the unit, parking, pets, water and trash, and all building amenities, unless otherwise specified in the resolution of approval required by Section 19.22.080(A).

A security deposit equal to the greater of one month's rent or $500.00 can be required.

A pet deposit may be in addition to, but cannot exceed, 25 percent of the security deposit.

Limitations on Purchasers and Sales Prices.

The sale and resale of affordable units constructed for purposes of using a state density bonus under Section 19.22.050.D shall be in accordance with California Government Code Section 65915(c)(2).

All purchasers of inclusionary units shall meet the city's income guidelines for the income range targeted for that unit. Proof of income eligibility shall be submitted to the Community Development Director. Resale of units shall require that the Community Development Director first verify the purchaser as low or moderate income. This requirement shall be included in the recorded covenant.

Newly constructed inclusionary units shall first be offered to eligible very low, low and moderate income households displaced by the demolition necessary to construct the project.

Secondly, the offer shall be made to other very low, low, or moderate displaced households in the city.

The remaining units, and all other newly constructed units and any inclusionary units in a building undergoing conversion to common interest development, shall be offered to very low, low, and moderate income households.

Lower income inclusionary units shall be sold at a price that is no more than two and one-half times 65 percent of the median income of the city, and adjusted by the "bedroom factor." Qualifying income levels shall be established annually by the Council.

Moderate income inclusionary units shall be sold at a price that is no more than two and one-half times the median income of the city, and adjusted by the "bedroom factor." Qualifying income levels shall be established annually by the Council.

The sales price of the inclusionary unit is dependent on the unit size and is therefore adjusted by the "bedroom factor" established annually by the Council.

Expected homeowners' association fees shall be included in the calculation of total unit costs.

Right of First Refusal. After offering the units to eligible households displaced by demolition, the developer of a project shall be required to give right of first refusal to purchase any or all inclusionary units to the city, or a city-designated agency or organization, for at least 60 days from the date of construction completion.

Lottery. If the city chooses not to exercise its right of first refusal, it shall conduct a lottery to establish a list of eligible purchasers within that same time period. If the list is not provided, the developer may select the low- or moderate-income purchasers as long as the city verifies income eligibility and the units are sold at a price no more than two and one-half times the median income for the city.

Resale of Units. Upon resale, the affordable units shall remain affordable to the targeted income group. The resale price shall be set as follows:

The price resulting from the total costs, including homeowners association fees, shall be:

Moderate income units: a total cost of no more than two and one-half times the median income for the city, for moderate income households.

Lower income units: a total cost of no more than two and one-half times 65 percent of the median income for the city for low income households.

The sales price of the inclusionary unit is dependent on the unit size and is therefore adjusted by the "bedroom factor."

Expected homeowners' association fees shall be included in the calculation of total unit costs.

If, during the tenure of the most recent occupant, the homeowners' association fees have risen at a rate faster than the median income for the city, the resale price shall be the higher of:

The calculation in subsection (E)(1), above; or

The most recent previous sale price increased by the average rise over the last 10 years of the housing component of the Consumer Price Index, multiplied by the number of years of the owner's tenure.

Resale of units shall be subject to an agreement in compliance with Section 19.22.080(C) (Agreements).

Sales Price Schedule. Sales prices are adjusted annually based on the median income of the city and are subject to City Council approval.

(Ord. 01-594 § 2, 2001; Ord. 07-763 § 7, 2007; Ord. 14-934 § 6, 2014; Ord. 18-1044 § 8, 2018; Ord. 19-1058 § 40, 2019; Ord. 24-16, 6/24/2024)