The purposes and intent of this chapter, which shall be known
as the "City of Santa Barbara Inclusionary Housing Ordinance," are
the following:
A. To
encourage the development and availability of housing affordable to
a broad range of Households with varying income levels within the
City;
B. To
promote the City's goal to add affordable housing units to the City's
housing stock;
C. To
increase the availability of housing opportunities for Middle Income
and Upper-Middle Income households within the City limits in order
to protect the economic diversity of the City's housing stock, reduce
traffic, commuting and related air quality impacts, and reduce the
demands placed on transportation infrastructure in the region; and
D. To
implement policies of the Housing Element of the General Plan which
include: (1) adopting an inclusionary housing program to meet the
housing needs of those not currently served by City Housing and Redevelopment
Agency programs; and (2) encouraging the development of housing for
first time home buyers, including moderate and Middle Income households.
(Ord. 5310, 2004)
As used in this chapter, the following terms shall have the
meaning and usage indicated below:
Applicant.
Any person, firm, partnership, association, joint venture,
corporation, or any entity or combination of entities, which seeks
City approvals for all or part of a Residential Development.
Household.
One person living alone or two or more persons sharing residency
whose income is considered for housing payments.
Inclusionary Unit.
An Ownership Unit that must be offered to eligible purchasers
(in accordance with eligibility requirements set by the City) at a
City-approved affordable sale price according to the requirements
herein.
Market-Rate Unit.
An Ownership Unit in a Residential Development that is not
an Inclusionary Unit.
Middle Income Household.
A Household whose income is between 120% and 160% of the
Area Median Income, adjusted for household size.
Ownership Unit.
A dwelling unit that may be sold separately under the requirements of the State Subdivision Map Act. For purposes of this chapter, a dwelling unit may be designated as an Ownership Unit whether or not it is rented by the owner thereof. The following shall be considered to be a single Ownership Unit: (1) a dwelling unit together with an attached Secondary Dwelling Unit approved under Chapter
28.94; or (2) a dwelling unit together with an additional dwelling unit on the same lot approved under Chapter
28.93 of the City's Municipal Code.
Residential Development.
The proposed development of any single family, duplex or condominium Dwelling Units in residential or mixed-use developments requiring a tentative subdivision map under the City's Subdivision Ordinance. Residential Development shall include the conversion of rental housing to condominiums or similar uses as described in Chapter
28.88 of this Municipal Code.
Residential Lot Subdivision.
The subdivision of land into individual parcels where the
application to the City for the subdivision approval does not include
a concurrent request for City design approval of the residential dwelling
units or homes to be constructed upon on such lots.
Target Income.
A number, expressed as a percentage of Area Median Income,
used in calculating the maximum sale price of an affordable housing
unit. It is the household income to which the unit is targeted to
be affordable.
Unit Size.
All of the usable floor area within the perimeter walls of
a dwelling unit, exclusive of open porches, decks, balconies, garages,
basements, cellars that extend no more than two feet above finished
grade, and attics that do not exceed a floor-to-ceiling height of
five feet.
(Ord. 5310, 2004; Ord. 5380, 2005)
A. General
requirements.
1. Developments
of 10 or More Units. For all Residential Developments of 10 or more
dwelling units, at least 15% of the total units must be constructed
and offered for sale as Inclusionary Units restricted for owner-occupancy
by Middle Income Households or, in the case of Residential Lot Subdivisions
for the construction of single family homes, by Upper-Middle Income
Households as specified herein.
2. Developments of Less Than 10 Units But More Than One Unit - Payment of an In-Lieu Fee. For all Residential Developments of less than 10 units and more than one unit, the Applicant shall, at the Applicant's election, either provide at least one unit as an owner-occupied Middle Income restricted Unit, or pay to the City an in-lieu fee equal to five percent of the in-lieu fee specified by Section 28.43.070.B of this chapter, multiplied by the total number of dwelling units of the Residential Development; provided, however, that for those Residential Developments which are not a condominium conversion project (as defined by Chapter
28.88) and which propose to construct two to four dwelling units, the required in-lieu fee shall equal five percent of the in-lieu fee specified by Section 28.43.070.B of this chapter multiplied by the number of units in the Residential Development which exceed one dwelling unit.
B. Residential
lot subdivisions.
1. Subdivisions of Ten or More Parcels. For all Residential Lot Subdivisions where the lots to be approved would permit the eventual development of 10 or more Dwelling Units, the Applicant shall pay an in lieu fee corresponding to 15% of the number of Dwelling Units that might eventually be built on the lots, or the Applicant may propose an alternative means of compliance with this chapter pursuant to Section
28.43.080 of this chapter.
2. Subdivisions of Less Than Ten Parcels. For all Residential Lot Subdivisions where the real property parcels to be approved would result in the eventual development of less than 10 Dwelling Units but more than one Dwelling Unit, the Applicant shall, at the Applicant's election, either provide that one Dwelling Unit will be constructed as an owner-occupied Middle Income Household restricted Unit, or pay an in-lieu fee corresponding to five percent of the in-lieu fee specified by Section 28.43.070.B multiplied by the number of Dwelling Units that might eventually be built as part of the subdivision. At the option of the Applicant, the Applicant may propose an alternative means of compliance with this chapter pursuant to Section
28.43.080 below.
C. Existing
dwelling units. Existing Ownership Units that are to be retained shall
be included in the number of units in the Residential Development
for purposes of calculating the number of Inclusionary Units required
under this section; however, the number of such existing units to
be included in the calculation shall not exceed the number of proposed
new Ownership Units to be added.
D. Density
bonus units. Any additional owner-occupied units authorized and approved
as a density bonus under the City's Affordable Housing Policies and
Procedures will not be counted in determining the required number
of Inclusionary Units.
E. Rounding.
In determining the number of Inclusionary Units required by this section,
any decimal fraction less than 0.5 shall be rounded down to the nearest
whole number, and any decimal fraction of 0.5 or more shall be rounded
up to the nearest whole number.
F. Price
limits for inclusionary units. Inclusionary Units must be restricted
for sale at affordable prices as follows:
1. Except
as provided in the following subsections, Inclusionary Units must
be restricted to and sold at prices affordable to Middle Income Households,
calculated according to procedure specified in the City's Affordable
Housing Policies and Procedures (applicable as of the date of Planning
Commission's approval) using a Target Income of 120% of the then current
Area Median Income.
2. The
Community Development Director may approve a Target Income of 130%
of Area Median Income for Inclusionary Units built as duplexes, or
exceptionally large condominiums, in accordance with the City's Affordable
Housing Policies and Procedures.
3. Inclusionary
Units built as detached single family homes, each on its own separate
lot, must be restricted to and sold at prices affordable to Upper-Middle
Income Households, with sale prices calculated according to the procedure
specified in the City's Affordable Housing Policies and Procedures
using a Target Income of 160% of Area Median Income.
4. Nothing
herein shall preclude an Applicant/Owner from voluntarily agreeing
to restrict the Inclusionary Units for sale to very-low, low or moderate
income households at the Target Incomes specified for such income
categories in the City's Affordable Housing Policies and Procedures.
G. Combining
residential developments. If two proposed Residential Developments
that share a common boundary are under development review by the City
simultaneously, such developments will be treated under this chapter
as if they were combined for purposes of determining the number of
Inclusionary Units or Inclusionary Lots required under this chapter,
provided they are proposed by the same Applicant or by joint Applicants
which share a substantial legal commonality of ownership and control.
Applicants which are related partnerships or corporations will be
deemed to share a substantial commonality of ownership and control
if more than 60% of the natural persons who are general partners are
the same for each partnership or, in the case of corporate ownership,
the applicant individual or entity controls 60% of more of the voting
stock or shares of each corporation.
(Ord. 5310, 2004; Ord. 5488, 2009)
The requirements of this chapter shall not apply to the following
types of development projects:
A. Rental
Units. A project constructing Dwelling Units which may not be separately
owned, transferred, or conveyed under the state Subdivision Map Act.
B. Casualty Reconstruction Projects. The reconstruction of any residential units or structures which have been destroyed by fire, flood, earthquake or other act of nature, which are being reconstructed in a manner consistent with the requirements of Section
28.87.038.
C. Voluntarily
Affordable Projects. Residential Developments which propose that not
less than 30% of the units of the development will be deed restricted
for occupancy by families qualifying as Upper Middle Income (or lower
income) households pursuant to and in accordance with the City's Affordable
Housing Policies and Procedures.
D. Employer-Sponsored Housing Projects. Employer-Sponsored Housing Projects developed in accordance with the Average Unit-Size Density Incentive Program of Chapter
28.20.
(Ord. 5310, 2004; Ord. 5488, 2009; Ord. 5630, 2013)
A. Providing
units on-site. An Applicant for a Residential Development of 10 or
more dwelling units who elects to satisfy the inclusionary housing
requirements of this chapter by producing owner-occupied Inclusionary
Housing units on the site of a Residential Development shall be entitled
to a density bonus for the number of Inclusionary Units to be provided
on-site, in accordance with the City's density bonus program for owner-occupied
units as described in the City's Affordable Housing Policies and Procedures
without the need for the Applicant to separately apply for a lot area
modification for the density bonus.
B. Use of zoning ordinance modifications. The City may provide modifications in zoning requirements that will facilitate increased density for the purpose of accomplishing the goals of this chapter, including modifications to parking, setback, yard area, open space and solar access requirements as specified in Section
28.92.110 of this title.
(Ord. 5310, 2004; Ord. 5380, 2005; Ord. 5488, 2009)
Inclusionary Units built under this chapter must conform to
the following standards:
A. Design.
Except as otherwise provided in this chapter, Inclusionary Units must
be dispersed evenly throughout a Residential Development and must
be comparable in construction quality and exterior design to the Market-Rate
Units constructed as part of the Development. Inclusionary Units may
be smaller in aggregate size and may have different interior finishes
and features than Market-Rate Units so long as the interior features
are durable, of good quality and consistent with contemporary standards
for new housing.
B. Size.
The average number of bedrooms in the Inclusionary Units must equal
or exceed the average number of bedrooms in the Market-Rate Units
of the Development. Absent a waiver from the Community Development
Director, two-bedroom Inclusionary Units shall generally have at least
one and one-half bathrooms, and three-bedroom Inclusionary Units shall
generally have at least two bathrooms. However, the required number
of bathrooms shall not be greater than the number of bathrooms in
the Market-Rate Units. The minimum Unit Size of each Inclusionary
Unit shall be in conformance with the City's Affordable Housing Policies
and Procedures.
C. Timing
of Construction. All Inclusionary Units must be constructed and occupied
concurrently with or prior to the construction and occupancy of Market-Rate
Units of the Development. In phased developments, Inclusionary Units
may be constructed and occupied in proportion to the number of units
in each phase of the Residential Development.
D. Duration
of Affordability Requirement. Inclusionary Units produced under this
chapter must be legally restricted to occupancy by Households of the
income levels for which the units were designated pursuant to and
in conformance with the City's Affordable Housing Policies and Procedures.
(Ord. 5310, 2004)
A. Payment of in-lieu fee to city. The requirements of this chapter may also be satisfied by paying an in-lieu fee to the City for deposit into the City's Affordable Housing Inclusionary Fund as such fund is provided for in Section
28.43.130.
B. Calculation
of in-lieu fee. The in-lieu fee for each required Inclusionary Unit
that is not constructed on-site will be calculated as of the date
of Planning Commission final approval in a manner sufficient to make
up the monetary difference between the following: 1. the Estimated
Production Cost of a two-bedroom condominium unit in the City as defined
in this section, and 2. the price of a two-bedroom dwelling unit affordable
to a Low-Income Household calculated according to the procedure specified
in the City's Affordable Housing Policies and Procedures for a two-bedroom
unit. The target income for this calculation shall be 70% of Area
Median Income, and the housing-cost-to-income ratio for this calculation
shall be 30%. The Estimated Production Cost shall be deemed to be
the median sale price of two-bedroom condominium units in the City
less a 15% adjustment to reflect an Applicant/Developer's anticipated
profit. The median sale price of two-bedroom condominium units in
the City shall be established by the City Council, based on data provided
by the Santa Barbara Association of Realtors or other source selected
by the City Council, for sales during the four most recent calendar
quarters prior to the calculation. The City Council may annually review
the median sale price of two-bedroom condominium units in the City,
and may, based on that review, adjust the in-lieu fee amount.
As of the date of the adoption of this chapter, the median sale
price of two-bedroom condominium units in the City for the four most
recent calendar quarters was $500,000, the Estimated Production Cost
was $425,000, the Area Median Income was $64,700, the price of a two-bedroom
dwelling unit affordable to a Low-Income Household was $115,000, and
the in-lieu fee based on the above calculation was $310,000.
C. Prorating. If the calculation for the required number of Inclusionary Units as provided in Section
28.43.030 results in a fraction of a unit, the amount of in-lieu fee for such fractional unit shall be prorated.
D. Reduction
of in-lieu fee for smaller units. For Residential Developments, the
amount of the in-lieu fee shall be reduced where the average Unit
Size of the Market-Rate Units is less than 1700 square feet, according
to the following:
1. If
the average Unit Size of the Market-Rate Units is between 1,400 and
1,699 square feet, the in-lieu fee shall be reduced by 15%.
2. If
the average Unit Size of the Market-Rate Units is between 1,100 and
1,399 square feet, the in-lieu fee shall be reduced by 20%.
3. If
the average Unit Size of the Market-Rate Units is between 800 and
1,099 square feet, the in-lieu fee shall be reduced by 25%.
4. If
the average Unit Size of the Market-Rate Units is below 800 square
feet, the in-lieu fee shall be reduced by 30%.
E. Timing
of payment of in-lieu fee. The timing of payment of the in-lieu fee
varies according to the type of development and the number of units
to be developed, as follows:
1. New
Construction of Five or More Units. For new construction of five or
more dwelling units, the in-lieu fee shall be paid prior to the issuance
of a building permit for the Development; for phased-construction
developments, payment of the applicable in-lieu fees shall be made
for each portion of the Development prior to the issuance of a building
permit for that phase of the Development. In the event that the Applicant/Developer
intends to pay the in-lieu fee from proceeds of a bank construction
loan, and such bank requires the issuance of a building permit prior
to funding the construction loan, the Applicant/Developer may request
that the Community Development Director issue the building permit
prior to payment of the fee. The Community Development Director may
approve such request provided the Applicant/Developer agrees in writing
that the fee will be paid within 10 days after the issuance of the
building permit, and further agrees that the building permit will
be deemed revoked by the City and work undertaken pursuant to the
building permit stopped if the in-lieu fee is not paid within such
10-day period.
2. Condominium
Conversions. For condominium conversions, payment of the in-lieu fee
shall be made prior to recordation of the Final Subdivision Map.
3. Residential
Lot Subdivisions. For Residential Lot Subdivisions, payment of the
in-lieu fee shall be made prior to recordation of the Final Subdivision
Map.
4. Residential
Developments of Four Units or Less. For Residential Developments of
four units or less which are subject to this chapter and which elect
to pay an in-lieu fee under the requirements of this chapter, the
in-lieu fees shall be paid to the City prior to the issuance of a
Certificate of Occupancy by the Chief Building Official of the City.
F. Delayed
payment. When payment is delayed, in the event of default, or for
any other reason, the amount of the in-lieu fee payable under this
section will be based upon the greater of the fee schedule in effect
at the time the fee is paid or the fee schedule in effect at the time
of Planning Commission approval.
(Ord. 5310, 2004; Ord. 5488, 2009)
A. Inclusionary fund. There is hereby established a separate City Affordable Housing Inclusionary Fund ("Fund") maintained by the City Finance Director. This Fund shall receive all fees contributed under Sections
28.43.070 and
28.43.080 and may, at the discretion of the City Administrator, also receive monies from other sources.
B. Purpose
and limitations. Monies deposited in the Fund must be used to increase
and improve the supply of housing affordable to Upper-Middle, Middle,
Moderate-, Low-, and Very Low-Income Households in the City and to
ensure compliance of such Households with the City's Affordable Housing
Policies and Procedures. Monies may also be used to cover reasonable
administrative or related expenses associated with the administration
of this section, including, but not limited to, the City's purchase
and resale of affordable housing units that are in default of the
affordable control covenant recorded against that property, provided
that the City shall, at all times, comply with the applicable provisions
and requirements of the state Mitigation Fee Act,
Govt. Code Sections
66000 - 66025.
C. Administration.
The Fund shall be administered by the Community Development Director,
who may develop procedures to implement the purposes of the Fund consistent
with the requirements of this chapter and any adopted budget of the
City.
D. Expenditures.
Fund monies shall be used in accordance with the City's Housing Element,
Redevelopment Plan, the City's Affordable Housing Policies and Procedures,
or subsequent plan adopted by the City Council to construct, rehabilitate
or subsidize affordable housing or assist other governmental entities,
private organizations or individuals to do so. Permissible uses include,
but are not limited to, assistance to housing development corporations,
equity participation loans, grants, pre-home ownership co-investment,
pre-development loan funds, participation leases or other public-private
partnership arrangements. The Fund may be used for the benefit of
both rental and owner-occupied housing in accordance with the applicable
requirements of the state Mitigation Fee Act,
Govt. Code Sections
66000 - 66025.
E. Community
Development Director's annual report. The Community Development Director,
with the assistance of the City Finance Director, shall report annually
to the City Council on the status of activities undertaken with the
Fund. The report shall include a statement of income, expenses, disbursements
and other uses of the Fund. The report should also state the number
and type of Inclusionary Units constructed during that year.
(Ord. 5488, 2009; Ord. 5310, 2004)