Note: Prior ordinance history: Ords. 1034, 1077, 1261 and 1271.
A. 
Mill Valley is experiencing a housing shortage for affordable households. Increasingly, persons with extremely low, very low, low and moderate incomes who work and live within the City are unable to locate housing at prices they can afford and are increasingly excluded from living in the City.
B. 
The shortage of affordable housing in Mill Valley is detrimental to the public health, safety and welfare.
C. 
A goal of the City, as expressed in the Mill Valley General Plan, is to achieve a balanced community with housing available for households of a range of income levels. State law requires the City to make an adequate supply of housing available for persons of all economic segments of the community.
D. 
The high cost of newly constructed housing does not, to any appreciable extent, provide housing affordable to extremely low, very low, low and moderate income households, and new market-rate development which does not include nor contribute toward lower cost housing, further aggravates the current housing problems by reducing the supply of developable land.
E. 
The demolition and replacement or construction of new market-rate housing has a deleterious impact on affordable housing opportunities in the City, by displacing current tenants and occupants, by replacing smaller, older and more affordable units with larger and more expensive housing, and by reducing the supply of vacant or developable land in the City.
F. 
In order to meet the goals and objectives described in the General Plan, it is necessary that the City establish the Housing Trust Fund to fund City efforts to create affordable housing opportunities within the City.
G. 
All new market-rate residential development in the City must provide affordable opportunities to City residents or pay a fee to mitigate the impacts of the development on affordable housing opportunities in the City.
(Ord. 1295, September 5, 2017)
A. 
The purpose of this chapter is to enhance the public welfare and assure that all residential development projects proportionately contribute to the City's housing goals by constructing affordable unit(s) or pay a fee aimed at developing, constructing and/or maintaining affordable housing unit(s) in Mill Valley.
B. 
The provisions of this chapter are intended to:
1. 
Implement the Housing Element of the General Plan, and the requirements of state law (Government Code Section 65915, et seq.).
2. 
Maintain a balanced community with a wide variety of housing available to households of all income levels.
3. 
Increase the supply of affordable housing units.
4. 
Increase the supply of housing for the disabled, seniors, and other households with special housing needs, as defined in the Housing Element.
5. 
Address the need for affordable housing related to the increase in jobs and services associated with new and/or expanded market rate residential development.
6. 
Provide affordable housing units that are compatible in character and quality with their surrounding neighborhoods.
7. 
Maintain the physical condition and affordability of units produced through the provisions of this chapter over time.
8. 
Protect and maintain the existing affordable housing units within the City's existing housing stock.
(Ord. 1295, September 5, 2017)
The provisions of this chapter apply to all residential development projects (within a 24-month period, as defined in Section 20.80.040). Requirements are summarized below and detailed in Sections 20.80.050 and 20.80.070.
Type of Project
Description
Requirement
Accessory Dwelling Units (ADUs) or Second Units
New, legalized or remodeled ADUs.
Exempt
Micro Units
New, legalized or remodeled micro units.
Residential Development less than $100,000*
Single family and multi-family residential development projects less than the construction valuation threshold.
Single Family Residential Development $100,000 or More*
Residential development projects with a construction valuation equal to or exceeding the construction valuation threshold including the following types of improvements:
• Renovations
• Additions
• Replacement unit
• New unit
Impact Fee = based on percentage of construction valuation, as approved by City Council resolution.
Multi-Family Rental and Ownership Units
Multi-family and mixed use rental and ownership projects with a construction valuation equal to or exceeding the construction valuation threshold initially set at $100,000, including renovations, additions and projects with up to 3 new or replacement units.*
Impact Fee = based on percentage of construction valuation (for residential portions of a project), as approved by City Council resolution.
 
Multi-family and mixed use rental and ownership projects constructing 4 or more new or replacement units.
Construction of Affordable Unit(s) = 25% of the total number of proposed units shall be rented or sold to moderate and low income households. Fractional numbers of affordable units are rounded up to the nearest whole integer and treated as a whole unit. At least 50% of affordable units shall be sold to low income households.
*
The construction valuation threshold shall be adjusted annually to adjust for economic conditions, in accordance with Section 20.80.070.
(Ord. 1295, September 5, 2017; Ord. 1299 § 2, April 2, 2018)
For the purposes of this chapter, certain words and phrases shall be interpreted as set forth in this section unless it is apparent from the context that a different meaning is intended.
"Additions"
are extensions or increases in floor area or height to an existing building or structure.
"Affordable by"
shall be defined in accordance with California Health and Safety Code Section 50052.5 and in accordance with the household income levels defined below, means housing available at a sales price or rent which a certain size household can afford to pay for housing.
"Affordable ownership housing cost"
means the total housing costs paid by a qualifying household, which shall not exceed the specified fraction of their gross income as specified in California Health and Safety Code Section 50052.5.
"Affordable rent"
means the total housing costs, including a reasonable utility allowance, paid by a qualifying household, which shall not exceed a specified fraction of their gross income as specified in California Health and Safety Code Section 50053.
"Affordable households"
means households whose gross incomes and assets do not exceed the qualifying extremely low, very low, low and moderate income limits established in 25 California Code of Regulations (C.C.R.) Section 6932, and amended periodically based on the U.S. Department of Housing and Urban Development ("HUD") estimate of median income in the County of Marin's Primary Metropolitan Statistical Area, and as adjusted by the State Department of Housing and Community Development ("HCD") by family size.
1. 
"Extremely low income household"
means persons and families whose gross incomes do not exceed 30% of area median income, adjusted for household size appropriate for the unit.
2. 
"Very low income household"
means persons and families whose gross income does not exceed 50% of area median income, adjusted for household size appropriate for the unit.
3. 
"Low income household"
means persons and families whose gross income is greater than 50% up to 80% of area median income, adjusted for household size appropriate for the unit.
4. 
"Moderate income household"
means persons and families whose gross income is greater than 80% and does not exceed 120% of area median income, adjusted for household size appropriate for the unit.
"Affordable housing unit(s)," "affordable unit(s)," "inclusionary housing unit(s)" or "inclusionary unit(s)"
means a dwelling unit within a residential development which will be reserved for sale or rent to, and is made available at an affordable rent or affordable ownership cost to extremely low, very low, low, or moderate-income households, as stipulated in the provisions of this chapter.
"Applicant"
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks City permits and approvals.
"Construction valuation threshold"
shall be the minimum construction valuation established in Section 20.80.070 whereby a project is subject to the affordable housing impact fee.
"Construction valuation"
shall be the value of residential construction as determined by the Building Official, as set forth in and defined in Title 14 of the Mill Valley Municipal Code, and is cumulative based on a construction within a 24-month period as defined by a project.
"Dwelling unit" or "unit"
means a dwelling designed for occupancy by one household. For purposes of this chapter, a dwelling unit shall not include an accessory dwelling unit approved and constructed under the provisions of Chapter 20.90.
"Granting authority"
means the Building Official, Director, Zoning Administration, Planning Commission, or City Council, as the case may be.
"Household"
means those persons, related or unrelated, who occupy a single housing unit.
"Household income levels"
means the gross annual income of the household used to determine whether the household qualifies as an affordable household.
"Housing Authority"
means the Housing Authority of the County of Marin, a non-profit public corporation, or another agency designated by the City, for administering the housing programs under this chapter.
"Housing costs"
means the monthly mortgage payment, property taxes, homeownership insurance, private mortgage insurance (PMI), when required, and condominium or homeowner's association fees, where applicable, for ownership units. For a rental unit, total housing costs include the monthly rent payment and utilities.
"Inclusionary housing unit."
See "Affordable housing unit(s)."
"Income eligibility"
describes household eligibility for an income-restricted affordable housing unit.
"Impact fee" or "affordable housing impact fee"
means a fee paid to the City housing fund that reflects the reasonable costs to the City needed to mitigate the deleterious impacts of new development on affordable housing in the City and the reduction in vacant and developable land, which includes, but is not limited to, the costs the City has or will incur to fund the construction, acquisition, or financing of new or existing single family or multi-family affordable units.
"Multi-family dwelling unit"
shall be defined in accordance with Section 20.08.070(B) and, solely for the purposes of the inclusionary housing and fee requirements set forth in this chapter, shall also include townhomes. Townhomes are attached dwelling units typically characterized by separate ownership of the building and a legal parcel of land, with shared or adjoining walls.
"New unit"
means newly built units on vacant lots or the creation of additional dwelling units on lots with existing structures or buildings. A new unit does not include the enlargement or renovation of existing units, nor does it include replacement units created through the voluntary demolition of existing legal dwelling units.
"Project"
means a housing or mixed use development at one location including all units or lots for which discretionary or ministerial approvals have been applied for or granted within a 24-month period. A "project" may include renovation, construction, or removal of dwelling units. A property owner may not phase a project or transfer ownership of contiguous properties to evade, defer, or limit the requirements of this chapter. For purposes of this chapter, "project" does not include commercial portions of the proposed project.
"Renovation"
means any rehabilitation, alteration, modification, remodel, upgrade or change in occupancy or use, to an existing building which does not increase the conditioned floor area.
"Replacement unit(s)"
means dwelling unit(s) that are constructed within a 24-month period from the date of planning approval that is created from the voluntary demolition of existing legal dwelling unit(s).
"Resale controls"
means legal restrictions by which the price of affordable housing units will be controlled to ensure that the unit remains available to affordable households over time.
"Residential second unit" or "accessory dwelling unit"
means an attached or detached dwelling unit that is in addition to the primary unit allowed in all residential zoning districts that provides complete independent living facilities for one or more persons pursuant to Chapter 20.90.
"Voluntary demolition"
means removal of existing structures due to acts of the property owner or their representative. For the purposes of this section, dwelling units created through voluntary demolition are considered replacement units. As defined in Section 20.08.069.4, voluntary demolition of an existing legal dwelling unit shall mean those projects that modify more than 50% of: (1) the roof structure; or (2) exterior walls (exclusive of siding and/or sheathing); or (3) the combined total area of the exterior roof structure and exterior walls (exclusive of siding) within any period of 24 months.
(Ord. 1295, September 5, 2017)
A. 
Summary. Development projects include single family, multi-family and mixed-use residential construction within a 24-month period (further defined in Section 20.80.040), including such projects as renovations, additions, new unit(s); and replacement unit(s). Applicable projects are based on those projects equal to or exceeding the construction valuation threshold, initially established at $100,000.00, adjusted annually in accordance with Section 20.80.070.
B. 
Exemptions. The provisions of this section shall apply to any discretionary or ministerial approvals for new residential development, including new units, replacement units, renovations and additions, with the exception of the following:
1. 
Renovations and Additions to Existing Dwelling Unit(s) Less Than the Construction Valuation Threshold. Existing residences that are altered, improved, restored, repaired or expanded are exempt, provided that the construction valuation for the project is less than the construction valuation threshold, adjusted annually in accordance with Section 20.80.070.
2. 
Accessory dwelling units, constructed pursuant to Chapter 20.90.
3. 
Multi-family efficiency units (also referred to as "microapartment units" or "micro-units"), as further defined in Sections 20.08.070(B) and 20.24.040(B).
4. 
A residential development project, including new units, replacement units, renovations and additions that have been issued a vested tentative map or building permit prior to November 1, 2018, provided that the applicable permits and entitlements have not expired.
C. 
Projects Subject to Impact Fees. Residential development projects which meet or exceed the construction valuation threshold, are subject to the following impact fees:
1. 
Single Family Development Projects. Single family development projects including renovations and additions to existing single family residences and new or replacement units that meet or exceed the construction valuation threshold shall pay the impact fee, as set forth in Section 20.80.070. The impact fee shall be calculated based on a percentage of the construction valuation, as established by City Council resolution.
2. 
Multi-Family Rental and Ownership Projects (Renovations, Additions, and Up to Three New or Replacement Units). Multi-family or mixed-use ownership projects that meet or exceed the construction valuation threshold, including renovations, additions and up to three new or replacement units shall pay the impact fee, as set forth in Section 20.80.070. The impact fee shall be calculated based on a percentage of the construction valuation, as established by City Council resolution.
To ensure compliance with the Costa Hawkins Act (Chapter 2.7 of Title 5 of Part 4 of Division 3 of the Civil Code), the City may only approve a proposal to provide rental affordable units if the applicant agrees in a recorded agreement with the City to limit rents in consideration for a direct financial contribution or a form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. Such a proposal must be made by the applicant and not by the City, in the event that a court finds that this subsection would violate the Costa-Hawkins Act, the court shall sever this subsection from the remainder of this chapter, and the remainder of this chapter including, but not limited to, the requirement that an applicant pay the affordable housing impact fee shall remain in full force and effect.
D. 
Projects Subject to Providing Affordable Housing Units. The primary intent of the inclusionary requirement is to achieve the construction of new affordable units, as outlined in this chapter and as consistent with state and federal law. Other alternatives of equal value, such as, but not limited to, payment of the impact fee, acquisition and rehabilitation of existing units, construction of affordable units off site or the transfer of sufficient land and/or cash to the City or non-profit housing organization or housing developer to develop the required number of affordable units may be considered at the sole discretion of the City.
1. 
Multi-Family Rental and Ownership Units (Four or More New or Replacement Units). Multi-family and mixed use ownership projects of four or more units shall construct affordable housing unit(s) as follows:
a. 
Affordable Housing Units. At least 25% of the total number of dwelling units within a project that creates four or more new units shall be made available to moderate and low income households. Of these designated affordable units, at least 50% shall be rented or sold to low income households.
b. 
Fractions. Fractional numbers of inclusionary units are "rounded up" to the nearest whole integer and treated as a whole inclusionary unit; alternatively, the requirements of this section may be satisfied through payment of the impact fee, applied to remaining fractional number, and calculated based on a percentage of construction valuation for the project, as stipulated in Section 20.80.050(C).
c. 
Conditions of Approval. Any discretionary approval of new dwelling units shall have conditions attached which will assure compliance with the provisions of this chapter. Such conditions shall:
i. 
Specify the timing of payment of the impact fee and/or the construction of the affordable units, the number of inclusionary units and the appropriate income and purchase price or rental restrictions, and amenities associated with each unit.
ii. 
Require an affordable housing agreement providing for long-term affordability, income certification and screening of potential purchasers and/or renters of inclusionary units, resale control mechanism and on-going management of the affordable units.
iii. 
Contain a provision indicating that residents of affordable units shall not be denied access to common open spaces or recreational amenities.
iv. 
Where an applicant elects to initially rent all of the units in a residential ownership project, the affordable housing agreement shall provide affordable rents for the affordable unit(s) during the rental period.
2. 
Alternative to Building Affordable Units On-Site. Where feasible, it is the preference of the City that the requirements of this section be met through the construction of affordable units within the project. Construction of affordable units within another site or sites within the City may be approved on a case-by-case basis through the City's discretionary process; or upon finding by the Planning Commission or City Council that the construction of the required affordable units is not feasible or appropriate as part of the project or elsewhere in the City, the City may allow the applicant to satisfy the requirements of this section through the payment of the impact fee set forth in Section 20.80.070 for the new construction or the donation of land at the sole discretion of the City as provided below.
a. 
Land Donation. At the sole discretion of the City, applicants may satisfy the requirements of this chapter by an irrevocable offer of dedication of land for construction of affordable housing within the City.
i. 
Identification of the land to be dedicated shall be accomplished prior to approval of the discretionary permit for the residential development permit project.
ii. 
In addition to any other findings required by statute, ordinance, or otherwise, any project approval for an in-lieu land dedication shall include a finding that the land to be dedicated is not subject to liens, is served or proposed to be served by municipal services, including water, sewer, roads, electricity, telephone or other similar customary services, and contains no unusual planning or development constraints.
iii. 
Land for affordable housing projects shall be dedicated to either for-profit or non-profit affordable housing builders only, subject to an affordable housing agreement or other legal contract approved by the City Council that shall provide for the construction of affordable units and the long-term affordability, management, and maintenance of the units. The amount of land shall be at least as much as necessary to provide one and one-half times (150%) the required number of affordable units as stipulated in this chapter. The City Council may, in its sole discretion, approve, conditionally approve or reject such offer of dedication. Rejection of an offer of dedication of land under this section shall not relieve an applicant of the obligation to comply with this chapter through another means.
iv. 
Prior to City approval of the options set forth in this subsection, the City must find that the dedication of land will provide an equivalent or greater number of affordable units than would otherwise be required by this chapter consistent with any environmental constraints of the site.
b. 
Off-Site Units. Where provided for, applicants may satisfy the requirements of this chapter by constructing affordable units on another site within the City.
i. 
New inclusionary units not built on the site of the proposed original project shall be constructed simultaneously with market-rate dwellings constructed on the original site, unless alternative arrangements are approved as part of the project approval.
ii. 
The City may approve off-site rental affordable units be provided in lieu of ownership units.
iii. 
Where inclusionary units are permitted off-site, such units do not count as affordable units for the purpose of receiving a density bonus, as outlined in Chapter 20.81.
iv. 
In addition to any other findings required by state law or city ordinance, any approval of the linked project shall include a finding that the off-site inclusionary units shall be equivalent or greater in number than what would otherwise be required under this chapter, consistent with any environmental constraints of the site.
(Ord. 1295, September 5, 2017; Ord. 1299 §§ 3—5, April 2, 2018)
A. 
Construction of Affordable Units.
1. 
Timing of Construction. All affordable units in a project and phases of a project should be constructed concurrently with or prior to the construction of non-inclusionary units, unless the City finds that extenuating circumstances exist.
2. 
Design and Character of Affordable Units. The affordable units shall be reasonably dispersed throughout the development, shall contain on average the same number of bedrooms as the non-inclusionary units in the development, and shall be compatible with the design of the market rate units in terms of appearance, materials, and finished quality, except that, with City approval, the applicant may be allowed to modify the design and character of affordable units, if such modifications generate a greater number of affordable units than outlined in this chapter, or provide a greater level of affordability (such as to very low or low income households).
B. 
Administration of Affordable Units. The City shall contract with the Housing Authority to manage the rental and/or sale of the affordable housing units.
1. 
An affordable housing agreement shall be prepared in order to provide for the long-term affordability, administration, and appropriate management of affordable housing units.
2. 
As part of the affordable housing agreement, the Housing Authority shall have the authority on behalf of the City to: require guarantees; enter into recorded agreements with property owners; and take other appropriate steps necessary to assure that the required affordable housing units are provided based on the timeframes established and are occupied by a qualified affordable household.
3. 
See subsection G for additional details regarding the affordable housing agreement.
C. 
Targeted Affordable Households for Affordable Units. Affordable units shall be offered to the following household(s) based on the bedroom count of the affordable unit:
1. 
Studio dwelling unit: one person household minimum;
2. 
One bedroom dwelling unit: two person household minimum;
3. 
Two bedroom dwelling unit: three person household minimum;
4. 
Three bedroom dwelling unit: four person household minimum; and
5. 
One additional person for each bedroom thereafter.
D. 
Unit Pricing. All affordable housing units provided under this chapter shall be sold or rented at housing costs for applicable affordable households as stipulated in this chapter.
1. 
Unit pricing shall be verified by the Housing Authority, or City designee. The initial sales price shall be targeted to households at the low to mid-range of the low and moderate income limits but income eligibility shall extend to households at the high end of the range of the affordable income levels.
2. 
The price received by the seller of an affordable housing unit shall be limited to the purchase price plus an increase limited to the least of the: (a) Consumer Price Index for the San Francisco-Oakland-San Jose Area for All Urban Consumers; (b) increase in the Marin County gross annual household median income, as established by the Housing Authority, since the date of purchase; or (c) fair market value.
E. 
Marketing, Screening and Selection of Eligible Households for Affordable Units.
1. 
For affordable ownership units:
a. 
The Housing Authority shall screen applicants. Screening and selection of eligible ownership housing buyers shall include, but not be limited to, maximum income and asset limits and order of preferences, such as first-time home buyers.
b. 
The Housing Authority or other City designee shall advertise the inclusionary ownership units to the general public. To the extent allowed by State and Federal law, the City may engage in targeted marketing of all affordable housing units and other activities to attract persons working or living in Mill Valley.
c. 
Upon notification of the availability of ownership units by the developer, the Housing Authority or other City designee shall seek and screen qualified purchasers through a process involving applications and interviews and conduct lotteries to select purchasers.
2. 
For affordable rental units:
a. 
The owner, developer or designee identified in the housing agreement shall notify the City and Housing Authority of the availability of the affordable unit prior to screening applicants at least 60 days prior to initial occupancy and at least 30 days upon subsequent vacancies.
b. 
The owner, developer or designee shall provide the City and Housing Authority with the proposed marketing materials for the affordable units prior to screening applicants at least 60 days prior to initial occupancy and at least 30 days upon subsequent vacancies.
c. 
Marketing materials submitted to the City shall include: application fees, waiting list process, conditions and restrictions applicable to occupancy, identification of rent, permitted rent increases, maximum qualifying household income, requirement for annual household income recertification, preferences, and requirement to vacate the affordable unit should the tenant's household income exceed the maximum qualifying household income.
d. 
The owner, developer or designee identified in the housing agreement shall review and screen applicants of affordable units on the same basis as all other prospective tenants, including persons who are recipients of Federal certificates for rent subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act or any successor. The owner, developer or designee shall not apply selection criteria to Section 8 certificate or voucher holders that are more burdensome than criteria applied to all other prospective tenants for the affordable unit, nor permit management policies or lease provisions that may preclude occupancy by such prospective tenants.
e. 
The developer or owner shall retain final discretion in the selection of the eligible households provided that the same rental terms and conditions (except rent levels and income) are applied to tenants of inclusionary units as are applied to tenants, except as required to comply with government subsidy programs.
f. 
Upon initial occupancy and annually thereafter, the owner, developer or designee shall submit certifications to the City or its designee, verifying that the tenants of the affordable units do not exceed the maximum allowable household income established under the housing agreement.
F. 
Terms of Affordability. Prior to approval of a final map or issuance of building permits, whichever is earlier, the applicant shall execute an affordable housing agreement with the Housing Authority ensuring the continued affordability of the affordable housing units.
1. 
The affordable housing agreement shall be recorded on title and shall be binding on all future owners and successors in interests.
2. 
Affordable rental units granted in connection with the inclusionary requirements (Section 20.80.050) shall be made affordable in perpetuity, or based on the maximum allowable timeframes established by law at the time of project approval.
3. 
Affordable ownership units shall remain affordable in perpetuity, unless the Housing Authority reduces the term of the inclusionary requirement to reflect the maximum term that is permitted by financing sources.
a. 
The term of the agreement shall commence on the date of issuance of the certificate of occupancy for the affordable unit(s), with the affordability timeframe adjusted if necessary upon the sale or transferring of the property to a new owner or owners.
b. 
Owners of an affordable housing unit shall include, in the grant deed conveying title of any such affordable housing ownership unit a declaration stating the restrictions imposed pursuant to this chapter. The grant deed shall provide the City with the right to enforce the restrictions. The declaration of restrictions shall include all applicable resale controls, occupancy restrictions, and prohibitions as required by this chapter.
4. 
Affordable units granted through density bonus (Chapter 20.81) shall be subject to affordability time frames established with state density bonus statutes at the time of project approval.
G. 
Affordable Housing Agreement. A housing agreement shall be recorded against the subject property. This agreement may be made subordinate to acquisition, construction, bridge, and long-term permanent financing associated with the development of the project in which the affordable housing units will be located.
1. 
The agreement shall contain provisions that implement all of the requirements of this chapter, including, but not limited to, the following:
a. 
The number and type of affordable housing units to be provided by the project.
b. 
The initial sales prices or rents for the affordable units.
c. 
Criteria for the certification and selection of buyers or renters, which may include household income and assets, household size, and the size or special needs features of the available units.
d. 
A provision guaranteeing that the initial sale or rent and continuing availability of all units will remain at the same affordable income levels, as designated through the requirements of this chapter.
e. 
A provision indicating the noticing process to ensure that all prospective purchasers or renters of an affordable housing unit shall be advised of the restrictions of the affordable units, including, but not limited to, occupancy requirements and household income restrictions, as set forth in this chapter.
2. 
The housing agreement shall state that the Housing Authority may revise the sales prices and rent limits from time to time in response to changes in income limits, monthly housing costs, and the real estate market.
3. 
The housing agreement shall include a provision that provides for the enforcement of the housing agreement that entitles the City and/or the Housing Authority to recover reasonable attorney's fees (including City Attorney fees), investigation and litigation expenses, and any related staff costs associated with enforcing the provisions of this chapter.
4. 
The housing agreement shall include a provision restricting the sale of all affordable ownership units to "first time home buyers" as defined by the Housing Authority.
5. 
The agreement shall contain a provision requiring that the sale of an affordable housing unit shall include an assignable option agreement granting the Housing Authority and City the right of first refusal to purchase the unit at the time of subsequent sale for fair market value as set forth in the Marin County Below Market Rate policies or other applicable regulations or guidelines.
6. 
For rental projects, the housing agreement shall require an annual report verifying, under penalty of perjury, that the rental of affordable units complies with the terms and conditions contained in Section 20.80.060.
H. 
Owner-Occupancy and Sub-Leasing Affordable Units. The purchaser or renter of the affordable housing unit shall reside in the unit as their principal residence and may not rent or sublease the unit in its entirety to another party, including short-term rentals or sublets.
1. 
Every purchaser or renter of an affordable housing unit shall certify upon initial move-in that the unit is being used as the purchaser or renter's primary place of residence.
2. 
As part of the housing agreement, the Housing Authority is responsible for monitoring each affordable unit to prevent potential program abuses and violations of deed restrictions. Any irregularities or suspected abuses will be reported to the City in writing, and action taken, as deemed appropriate.
3. 
For affordable rental units, annual income verification shall be required by the Housing Authority to assure that the affordable rental units are rented and occupied by affordable households.
4. 
As part of the affordable housing agreement for ownership units, the Housing Authority shall monitor and verify the owner-occupancy requirement. Failure by a purchaser of an affordable unit to maintain eligibility for the homeowners' property tax exemption, or failure to provide proof of residence, when requested, shall be construed to mean that the affordable housing unit is not the primary place of residence of the purchaser.
(Ord. 1295, September 5, 2017; Ord. 1299 §§ 6—8, April 2, 2018)
A. 
Affordable Housing Impact Fees. The affordable housing impact fees shall contribute towards the City's housing fund for the purpose of creating, developing and/or maintaining existing housing targeted for affordable households within the City.
1. 
Affordable housing impact fees shall apply to all residential projects, as outlined in this chapter.
2. 
No application for a rezoning, tentative map, parcel map, conditional use permit, special use permit, building permit or other entitlement shall be approved without compliance with this section.
3. 
The impact fee shall be calculated based on a percentage of the construction valuation of an applicable project, with the actual percentage established by way of City Council resolution.
4. 
The construction valuation threshold shall be initially set at $100,000.00, adjusted on an annual calendar year basis based on the California Construction Cost Index as reported by the California Department of General Services to account for market fluctuations and to ensure that the impact fee reflects current costs.
5. 
Impact fees shall not exceed the cost of mitigating the impact of market rate residential projects on the need for affordable housing in the City.
6. 
The amount of any affordable housing impact fee payable under this section is based on the fee schedule in effect at the time of issuance of the building permit for the dwelling unit to which the fee relates.
7. 
The impact fee shall be paid prior to issuance of the building permit for the project.
8. 
Lnclusionary units and impact fees are not considered to be mutually exclusive, and a project may create inclusionary units and pay impact fees, so long as the total amount of units and fees shall not exceed the cost of mitigating the impact on affordable housing in the City as described in this chapter.
9. 
Fractional requirements may be satisfied by the construction of an additional affordable unit or payment of the affordable housing impact fee by applying the fractional remainder to the construction valuation, and applying the fee accordingly.
B. 
Affordable Housing Trust Fund. The purpose of the affordable housing fund is to receive and disburse affordable housing impact fee revenues and other housing funds to address the housing needs of affordable households in the City. Separate accounts within such housing fund may be created from time to time to avoid commingling if required by law or as deemed appropriate to further the purposes of the housing fund.
1. 
All affordable housing impact fees shall be deposited into the affordable housing fund.
2. 
The affordable housing trust fund, including accrued interest, shall be subject to all the applicable provision of the Mitigation Fee Act, including, but not limited to, the requirements for accounting, reporting and expenditure of the fund to increase the supply of affordable housing in Mill Valley.
3. 
The fees collected under this chapter and all earnings from investment of the fees shall be expended exclusively to provide or assure continued provision of affordable housing in the City to meet the housing needs of the City's workforce through acquisition, construction, development assistance, substantial rehabilitation or maintenance, financing, rent or other subsidies, or methods, and for costs of administering programs which serve those ends. The housing shall be of a type, or made affordable at a cost or rent, for which there is a need in the City and which is not adequately supplied in the City by private housing development in the absence of public assistance and to the extent feasible shall be utilized to provide housing opportunities to affordable households.
4. 
Housing assisted with affordable housing impact fees shall be subject to long-term affordability covenants established through an affordable housing agreement.
5. 
Prior to the distribution of funds, guidelines and administrative procedures shall be approved by City Council resolution, outlining the application, review, scoring/ranking or priority setting, distribution and use of trust fund monies.
(Ord. 1295, September 5, 2017)
It is the intent of this chapter that the requirements for affordable units shall not be determined by the availability of government subsidies. This is not to preclude the use of such programs or subsidies, if available. This chapter is also not intended to be an undue burden on the developers of residential projects. Therefore, as detailed below, the following provisions may be granted in association with the construction of affordable units.
A. 
Density Bonus. Applicants constructing affordable units within a project may apply for concessions outlined in Chapter 20.81, Density Bonus, if eligible.
B. 
Modification to Total Number of Units. The City may consider requests to reduce the total number of required moderate income inclusionary units within a project, or increase the number of market rate units, if some or all of the inclusionary units are sold or rented at prices affordable to very low or low income households.
C. 
Modification to Amenities in Affordable Units. The City may consider requests to modify the amenities in affordable units, provided that additional inclusionary units are built or the level of affordability associated with the affordable units is adjusted from moderate income to low or very low income households.
D. 
Planned Development Combining District. Should a proposed project exceed the required number of inclusionary units set forth in this chapter, an applicant may apply for the use of a planned development zoning designation as part of the project.
1. 
The planned development zoning designation, as outlined in Chapter 20.57 allows the City and applicant to review and assess development standards for an established Zoning District, which may be of particular impact, value and benefit to the entire community, such as providing additional affordable units.
2. 
A Planned Development Combining District request cannot be used in combination with density bonus regulations set forth in Chapter 20.81.
E. 
Fee Waivers. In the attempt to avoid any undue burden on developers who are required to provide inclusionary units under the provisions of this chapter, the City may waive or reduce park dedication, development fees, and other City fees applicable to the inclusionary units in the project.
F. 
Technical Assistance. In order to emphasize the importance of securing low and very low income housing as a part of this program, City staff, other agencies, or designated consultants may provide advice on financial subsidy programs to applicants. During individual project review, the City may request that the applicant provide an economic analysis which will indicate the most suitable methods for the implementation of the requirements of this chapter. This is to be done with the objective of increasing the feasibility and lowering the cost of units affordable to moderate, low, and very low income households.
(Ord. 1295, September 5, 2017)
A. 
Purpose. A Housing Advisory Committee shall be created for the purpose of assisting staff and advising the City Council (and Planning Commission) on matters relating to the Housing Element of the General Plan and the Affordable Housing Ordinance.
B. 
Appointment. The Housing Advisory Committee shall be appointed by the City Council. Members shall reside or work within the City. Term of service and number of individuals serving on the Housing Advisory Committee shall be outlined in the Committee by-laws, established in subsection C.
C. 
By-Laws. The City Council shall adopt by-laws containing rules and procedures for the transaction of business of the Housing Advisory Committee. The City Council may amend said by-laws from time to time.
(Ord. 1295, September 5, 2017)
A. 
Except as provided herein, no building permit or occupancy permit shall be issued, nor any development approval granted, for any project which does not meet the requirements of this chapter.
B. 
In addition to, or in lieu of, the provisions of subsection A of this section, the City may institute appropriate legal actions or proceedings including, but not limited to, equitable relief for the enforcement of any affordable housing agreement or the requirements set forth in this chapter.
(Ord. 1295, September 5, 2017)
A. 
Any person aggrieved by any action involving denial, suspension or revocation of a building or occupancy permit or denial, suspension or revocation of any development approval may appeal such action or determination to the Planning Commission, with further appeal possible to the City Council by filing a written appeal to the Director of Planning and Building and paying the appropriate application fees.
B. 
As part of an application for the approval of a residential project, an applicant may apply for a reduction, adjustment, or waiver of the requirements of this chapter based upon a showing, based on substantial evidence, that there is no reasonable relationship between the impacts of the project and the requirements of this chapter, or that applying the requirements of this chapter would result in an unconstitutional taking of property or would violate a provision of state or federal law. The applicant shall set forth in detail the requisite evidence to demonstrate the alleged unlawful result.
(Ord. 1295, September 5, 2017)
The provisions of this section are intended to comply with California Government Code Section 65915, the Mitigation Fee Act at Government Code Section 66000, et seq., and state and federal law. In the event that any provision of this section conflicts with state or federal law applicable to the City, state or federal law shall apply. The provisions of this section are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this section, or the invalidity of the application thereof to any person or circumstances shall not affect the validity of the remainder of this section, or the validity or its application to other persons or circumstances.
(Ord. 1295, September 5, 2017)