The purpose of this Chapter is to facilitate the development and availability of housing affordable to Low and Moderate Income Households within the El Cajon Redevelopment Agency Project Area (the "Project Area") as required under California Health and Safety Code Section 33413, and in order to provide housing opportunities to persons underserved in the El Cajon housing market.
(Ord. 4825 § 1, 2005)
The City Council of the City of El Cajon finds and determines that:
A. 
The community redevelopment law requires the El Cajon Redevelopment Agency to ensure that at least 15% of new and Substantially Rehabilitated Dwelling Units developed within the Agency's Project Area by public or private entities or persons other than the Agency are affordable to Low and Moderate Income Households, of which 40% must be available at a cost affordable to Very Low Income Households. In addition, at least 30% of all new or Substantially Rehabilitated Dwelling Units developed by a redevelopment agency shall be affordable to Low or Moderate Income Households, of which 50% must be available at a cost affordable to Very Low Income Households.
B. 
The City is experiencing an increasing shortage of housing affordable to moderate, low and very-low income households due to the high cost of housing and the development of new projects at market rate. As a result an increasing number of Lower Income Households are required to devote a large percentage of income to pay for housing, and are not provided adequate opportunities to acquire safe and affordable housing.
C. 
Federal and state funds for the construction or creation of new affordable housing units are insufficient to fully address the problem of affordable housing within the City. In addition, the private housing market has not been willing to provide adequate housing opportunities to Moderate-, Low- and Very Low-Income Households that are restricted as affordable for a significant period of time.
D. 
Owners of property within the Project Area, including Developers or Owners of Residential and Rehabilitation Projects, have in the past and will continue to derive direct and indirect benefits from activities undertaken by the Agency in its efforts to eliminate blight within the Project Area.
(Ord. 4825 § 1, 2005)
The words and terms used in this Chapter shall have the meanings as provided in this section 15.82.015. Where words or terms are not defined in this section they shall have the meanings ordinarily ascribed to them or as may be further defined in this Code. Should any word, term or phrase defined in this section conflict with any other word, term or phrase defined in this Code, the definitions provided herein shall apply.
"Adjusted For Family Size Appropriate To The Unit"
shall mean for a household of one person in the case of a studio, two persons in the case of a one-bedroom, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit, as set forth in Health and Safety Code Section 50052.5(h).
"Affordable Housing Agreement" or "Agreement"
means the agreement described in Section 15.82.045 of this Chapter between the Developer or Owner of a Residential or Rehabilitation Project and the City or Agency detailing how the provisions of this Chapter will be implemented.
"Affordable Housing Cost"
means the percentage of household income that can be dedicated to the Housing Cost of a Purchaser or Affordable Rent as set forth in Health and Safety Code Section 50052.5, as that section may be amended from time to time.
"Affordable Housing Plan Application" or "Plan"
is a form provided by the City to a Developer or Owner to be submitted prior to issuance of building permits or recording of any map for a Residential Development.
"Affordable Housing Trust Fund" or "Fund"
shall mean the fund created pursuant to Section 15.82.060 of this Chapter.
"Affordable Unit"
means those Dwelling Units developed pursuant to any Affordable Housing Agreement to satisfy the requirements of this Chapter, including For-Sale Units available at an Affordable Housing Cost, and Multi-Family Rental Units available at an Affordable Rent.
"Affordable Rent"
means affordable rent as set forth in Health and Safety Code Section 50053 and Title 25, Division 1, Chapter 6.5, Subchapter 1, Section 6922 of the California Code of Regulations, as those sections may be amended from time to time, or any state laws or regulations replacing Sections 50053 or 6922.
"Agency"
means the El Cajon Redevelopment Agency.
"Agency Assistance"
shall include any direct financial assistance provided by the City or Agency, the difference between the price of land provided by the City or Agency and the Fair Market Value of the land, the amount of in-kind fees waived by the City or Agency, the value of in-kind contributions made by or on behalf of the City or Agency, or any benefit in the reduction of the cost of a Dwelling Unit as determined by the difference in Fair Market Value and the price actually paid.
"Agency-Assisted"
shall mean units developed by the Agency as set forth in Health & Safety Code Section 33413(b)(1), as that section may be amended from time to time, or any state law or laws replacing Section 33413(b)(1).
"Agency-Developed"
shall mean a Residential Project that the Agency rehabilitated, developed, or constructed, or caused to be rehabilitated, developed, or constructed while under the ownership of the Agency.
"Agreement"
shall have the same meaning as "Affordable Housing Agreement.”
"Borrower"
shall mean the person or persons purchasing a Unit from the Developer subject to an Agreement, or purchasing a Unit that is otherwise subject to an Agreement. A "Borrower" includes the purchaser of a Unit receiving Agency Assistance.
"Borrower's Cash Contribution"
is defined as the sum of costs actually paid by any Borrower plus any gift funds approved by the City (less any refund) for the original purchase of the security property which may include, but are not limited to: down payment, installment payments of mortgage principal on the first trust deed, escrow fees, transfer taxes, recording fees, brokerage commissions, other similar costs of the acquisition, Documented Capital Improvements, plus not less than the Legal Rate of Interest on those cash payments. Borrower's Cash Contribution does not include any credit for closing costs, rebate financing, concessions, etc., provided by any party other than borrower.
"City"
means the City of El Cajon.
"City Manager"
means the City Manager of the City or the City Manager's designee.
"Community Redevelopment Law"
means Section 33000 et seq. of the California Health and Safety Code.
"Condominium Conversion"
means the conversion of real property to a common interest development as defined by Section 1351 of the California Civil Code.
"Contingent Deferred Interest"
shall have the same meaning as set forth in Section 1917 of the California Civil Code as amended from time to time, or any state law or laws replacing Section 1917.
"Density Bonus"
means an entitlement to building Dwelling Units in excess of the maximum number of units otherwise allowable, pursuant to Government Code Section 65915 et seq.
"Department"
shall mean the City of El Cajon Department of Redevelopment and Housing.
"Developer"
means the owner of any real property upon which a Residential Project is to be constructed or a Rehabilitation Project developed.
"Development Agreement"
means an agreement between a Developer or Owner and the City entered into pursuant to Government Code Section 65864 et seq., but is not an Agreement or an Affordable Housing Agreement.
"Director"
shall mean the City of El Cajon Department of Redevelopment and Housing Director.
"Documented Capital Improvements"
is defined by the Internal Revenue Service (the "IRS") as improvements (not repairs) in IRS publication 530 (or equivalent).
"Dwelling Unit" or "Unit"
has the meaning set forth in the Zoning Ordinance.
"Extremely Low Income Households"
means persons or families whose income does not exceed 30% of the Area Median Income, as set forth in California Health and Safety Code Section 50106, as that section may be amended from time to time, or any state law or laws replacing Section 50106.
"Fair Market Value"
shall mean the price that a willing buyer would pay and a willing seller would accept in an arm's length transaction in a competitive market.
"Family"
has the meaning set forth in the Zoning Ordinance.
"Feasible"
means reasonably capable of being financed, rehabilitated, built and marketed, given the economic conditions prevailing at the time of project approval and taking into account any incentives made available under this section. In all cases, the City Council shall determine feasibility.
"Floor Area"
has the same meaning as set forth in Section 207-F of California Building Code.
"For-Sale Units"
means those Dwelling Units developed as part of a Residential Project, or contained within a Rehabilitation Project, which the Developer or Owner intends to offer for individual sale or which could be offered for individual sale, including, but not limited to, single-family detached homes, duplex units, condominiums and cooperatives.
"Fund"
shall have the same meaning as "Affordable Housing Trust Fund.”
"General Plan"
has the same meaning as the El Cajon General Plan adopted May 18, 1970 and any amendments thereto.
"Gross Appreciation"
is calculated by subtracting the original Unrestricted Fair Market Value of the Affordable Unit at the time of purchase from the current Unrestricted Fair Market Value of the Affordable Unit at the time of sale, rental, refinance, transfer, or conveyance.
"Gross Building Floor Area"
shall be defined as the total Floor Area and shall include all roofed structures requiring a building permit.
"Gross Income"
has the same meaning as set forth in Title 25, Division 1, Chapter 6.5, Subchapter 2, Section 6914 of California Code of Regulations, as those sections may be amended from time to time, or any state regulation or regulations replacing Section 6914.
"Guidelines"
means the guidelines adopted by the City Council pursuant to Section 15.82.020 for the implementation and enforcement of the provisions of this Chapter.
"Household"
means one or more persons occupying the same housing unit (except foster children, unborn children and children being pursued for legal custody or adoption who are not currently living with the household).
"Housing Cost of a Purchaser"
has the same meaning as set forth in Title 25, Division 1, Chapter 6.5, Subchapter 2, Section 6920 of California Code of Regulations, as those sections may be amended from time to time, or any state regulation or regulations replacing Section 6920.
"Legal Rate Of Interest"
means interest calculated on the Borrower's Cash Contribution based on the Federal Funds Rate at the time of sale, rental, refinance, transfer, conveyance, etc., of the Affordable Unit.
"Longest Feasible Time"
includes, but is not limited to, unlimited duration as set forth in Health and Safety Code Section 33413(g) as that section may be amended from time to time.
"Lot"
shall have the same meaning as "Residential Lot.”
"Low and Moderate Income Households"
has the same meaning as "Persons and Families of Low or Moderate Income" set forth in Health and Safety Code Section 50093, as that section may be amended from time to time, or any state law or laws replacing Section 50093.
"Lower Income Households"
means persons or families whose income does not exceed 80% of the Area Median Income, as set forth in Health and Safety Code Section 50079.5, as that section may be amended from time to time, or any state law or laws replacing Section 50079.5.
"Maximum Affordable Purchase Price"
shall mean that price at which a Low and Moderate Income Household can purchase an Affordable Unit at an Affordable Housing Cost, Adjusted For Family Size Appropriate To The Unit.
"Mixed-Use Development" or "Mixed Use"
means a comprehensively planned and designed development consisting of retail and/or office spaces combined with residential uses developed in compliance with, and subject to, Specific Plan 182 adopted to implement Special Development Area No. 9. The Residential Units may be above or adjacent to the retail/office component. If above, the Residential Units may contain the retail or office spaces within the same space such as a loft subject to compliance with the applicable building and fire codes. Mixed uses may be permitted by conditional use permit within Special Development Area No. 9.
"Moderate Income Household"
means persons or families whose income does not exceed 120% of the Area Median Income, as set forth in Health and Safety Code Section 50052.5(g), as may be amended from time to time, or any state law or laws replacing Section 50052.5(g).
"Multi-Family Rental Units"
means those multi-family dwelling units developed as part of a Residential Project, or contained within a Rehabilitation Project, which the Developer or Owner intends to offer for lease or rent or which are customarily offered for lease or rent.
"Net Appreciation"
shall be calculated by subtracting the Borrower's Cash Contribution from Gross Appreciation.
"One Location"
means all adjacent land within the Project Area owned or controlled by the same Owner, the property lines of which are contiguous at any point, or the property lines of which are separated only by a public or private street, road or other public or private right-of-way.
"Owner"
includes the person, persons, corporation, partnership, limited liability company, association, joint venture, or public or private entity having sufficient proprietary interest in real property to commence and maintain development of a Residential or Rehabilitation Project on the real property, or the Owner's agent, assignee or successor in interest.
"Persons and Families of Low or Moderate Income"
shall have the same meaning as "Low and Moderate Income Households.”
"Plan"
shall have the same meaning as "Affordable Housing Plan Application.”
"Planning Commission"
means the Planning Commission of the City of El Cajon established pursuant to state law.
"Project"
shall have the same meaning as "Residential Project.”
"Project Area"
means that portion of the City located within the Redevelopment Project Area of the City of El Cajon and any addition, deletion or amendment from the project area as the City may approve from time to time.
"Redevelopment Plan"
means the Redevelopment Plan for the Project Area.
"Redevelopment Project"
means any Project that is subject to a written agreement with the Agency or where financial assistance has been provided by the Agency.
"Redevelopment Project Area"
means that portion of the City located within the redevelopment district of the City of El Cajon, as initially established by the City pursuant to Ordinance No. 2434, adopted December 28, 1971, amended by the City pursuant to Ordinance No. 4038, adopted July 14, 1987, and any subsequent addition to or deletion from the Project Area as the City may approve from time to time.
"Rehabilitated Dwelling Units"
means those units that involve Rehabilitation of the Residential Project.
"Rehabilitation"
includes the construction, reconstruction, renovation, replacement, extension, repair, betterment, equipping, developing, embellishing, or otherwise improving real property consistent with standards of strength, effectiveness, fire resistance, durability, and safety, so that such structures are satisfactory and safe to occupy for residential purposes and are not conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime. Rehabilitation may also include alterations to the structure of a cosmetic or aesthetic nature.
"Rehabilitation Project"
means any project involving the Substantial Rehabilitation or Rehabilitation of three or more Dwelling Units at one location and requiring the issuance of a building permit, including in the aggregate all Dwelling Units for which building permits or discretionary approvals have been applied for from or granted by the City.
"Residential Lot" or "Lot"
means any parcel of land created with the intention that it will be used for the development of a Dwelling Unit.
"Residential Project"
means any project involving the construction, or Substantial Rehabilitation, or Rehabilitation of three or more Dwelling Units at one location and requiring the issuance of a building permit, or the creation of one or more Residential Lots at one location, including in the aggregate all Dwelling Units or Residential Lots for which building permits or discretionary approvals have been applied for from or granted by the City.
"Specific Plan"
means a Specific Plan of the City prepared and adopted in accordance with Government Code Sections 65450 et seq., as those sections may be amended from time to time, or any state law or laws replacing Sections 65450.
"Substantially Rehabilitated Dwelling Units"
means all units substantially rehabilitated, with Agency Assistance as set forth in Health and Safety Code Section 33413(b)(2)(A)(iii) and shall remain in effect only until January 1, 2006, and as of that date shall be repealed, unless a later enacted statute, that is enacted before January 1, 2006, deletes or extends that date.
"Substantial Rehabilitation"
means Rehabilitation, the value of which constitutes 25% of the after rehabilitation value of the dwelling, inclusive of the land value, set forth in Health and Safety Code Section 33413(b)(2)(A)(iv) and shall remain in effect only until January 1, 2006, and as of that date shall be repealed, unless a later enacted statute, that is enacted on or before January 1, 2006, deletes or extends that date.
"Unit"
shall have the same meaning as "Dwelling Unit.”
"Unrestricted Fair Market Value"
shall have the same meaning as "Fair Market Value.”
"Very Low Income Households"
means a Household whose income is less than 50% of the Area Median Income, as set forth in California Health and Safety Code Section 50105, as that section may be amended from time to time, or any state law or laws replacing Section 50105.
"Zoning Ordinance"
means Title 17 of the municipal code of the City of El Cajon, as it may be amended from time to time.
(Ord. 4825 § 1, 2005)
The City shall establish and adopt submittal requirements, review procedures, standards and guidelines for Affordable Units to be referred to as the Affordable Housing Guidelines ("Guidelines"). The Director shall coordinate, revise or amend as necessary, Guidelines for the implementation of this Chapter consistent with the terms and requirements contained herein.
(Ord. 4825 § 1, 2005)
No building permit shall be issued, and no use permit, Development Agreement, final parcel or subdivision map, or Agreement with the Agency shall be approved or recorded, in connection with any Residential or Rehabilitation Project located within the Project Area, until the Director confirms in writing that:
A. 
An Affordable Housing Plan Application has been submitted to the City, and the Residential Project is exempt; or
B. 
An Affordable Housing Agreement has been executed by the Developer or Owner and the City and that Agreement has been recorded with the San Diego County Recorder; or
C. 
The Developer or Owner has requested and the City Council has determined in accordance with Section 15.82.070 of this Chapter that it is not reasonable to require the Developer or Owner to comply with the requirements of this Chapter in whole or in part.
(Ord. 4825 § 1, 2005)
Standard Requirements. Except as otherwise provided in this Chapter, all Developers of Residential Projects in the Redevelopment Project Area shall comply with the following:
A. 
Number of Affordable Units (non-Agency Developed). Multi-family Rental and For-Sale Units: Fifteen percent of all new and Substantially Rehabilitated Dwelling Units shall be available at an Affordable Housing Cost to, and occupied by Persons and Families of Low or Moderate Income. Not less than 40% of those dwelling units required shall be available at an Affordable Housing Cost to Very Low-Income Households.
B. 
Number of Affordable Units (Agency Developed). Multi-family Rental or For-Sale Units: 30% of all new and Substantially Rehabilitated Dwelling Units shall be available at an Affordable Housing Cost to, and occupied by, Persons and Families of Low or Moderate Income. Not less than 50% of those dwelling units required shall be available at an Affordable Housing Cost to Very Low-Income Households.
C. 
Income limits, Affordable Housing Cost, Housing Cost of a Purchaser, Maximum Affordable Purchase Price, Affordable Rent, and Utility Schedules. The Department shall publish on no less than an annual basis, income limits for Low and Moderate Income Households and schedules for the following:
1. 
Income Limits: all Affordable Units must be sold or rented to Low and Moderate Income Households at an Affordable Housing Cost or Affordable Rent.
2. 
Affordable Housing Cost (owner-occupied housing): the maximum Affordable Housing Cost shall not exceed the following, Adjusted for Family Size Appropriate To The Unit:
a. 
Extremely Low Income Households: the product of 30% times 30% of the Area Median Income;
b. 
Very Low Income Households: the product of 30% times 50% of the area Median Income;
c. 
Lower Income Households: the product of 30% of the Gross Income of the Household;
d. 
Moderate Income Households: shall not be less than 28% of the Gross Income of the Household, nor shall it exceed 35% of the Gross Income of the Household.
3. 
Housing Cost of a Purchaser: shall be calculated in accordance with California Code of Regulations Section 6920. In the event such regulation is no longer effective, it shall include (a) principal and interest on a mortgage loan including any additional loans, and any loan insurance fees associated therewith; (b) property taxes and assessments; (c) fire and casualty insurance; property maintenance and repairs; (d) reasonable allowance for utilities, including garbage, sewer, water, electricity, gas, other heating, cooking, and refrigeration fuels at an adequate level of service (utilities do not include telephone); (e) homeowners' association fees; (f) space rent, if any. The Housing Cost of a Purchaser shall not exceed the Affordable Housing Cost.
4. 
Maximum Affordable Purchase Price: shall be based on a 30-year fully-amortized fixed rate mortgage as reported by the Federal Home Loan Mortgage Corporation (FHLMC) weekly primary mortgage market survey, rounded to the nearest 1/8th (.125%) percentage, with 3% down payment. The Department shall publish, on no less than an annual basis, Maximum Affordable Purchase Price limits based on current factors for mortgage insurance, property taxes, fire insurance, maintenance and utilities, HOA dues, space rent, Adjusted For Family Size Appropriate To The Unit.
5. 
Affordable Rent: the maximum Affordable Rent shall not exceed the following, Adjusted For Family Size Appropriate To The Unit:
a. 
Extremely Low Income Households: the product of 30% times 30% of the Area Median Income;
b. 
Very Low Income Households: the product of 30% times 50% of the Area Median Income;
c. 
Lower Income Households: the product of 30% times 60% of the Area Median Income;
d. 
Moderate Income Households: the product of 30% of the Gross Income of the Household.
Affordable Rent shall include the total of monthly payments for a rental or cooperative unit for: (i) use and occupancy of a housing unit and land and facilities associated therewith; (ii) any separately charged fees or service charges by the lessor which are required of all tenants, other than security deposits; (iii) a reasonable allowance for utilities not included in (i) or (ii), including garbage collection, sewer, water, electricity, gas, and other heating, cooking and refrigeration fuels, all at an adequate level of service; and (iv) possessory interest, taxes, or other fees or charges assessed for use of the land and facilities associated therewith by a public entity other than the lessor.
6. 
Current Utility Schedule. The Department shall publish the most current utility schedule reported by the San Diego County Housing Authority, as may be amended from time to time.
D. 
Location of Affordable Units. Affordable units shall be built on the site of the Residential Project and reasonably dispersed throughout the Project.
E. 
Timing of Development. Affordable units constructed within a Residential Project or within phases of a Residential Project shall be constructed concurrently with or prior to the construction of market rate units.
F. 
Exterior Appearance. Affordable units shall from the exterior be visibly indistinguishable from market rate units and be dispersed through the Residential Project.
G. 
Development Standards. Affordable units shall comply with all applicable development standards of the El Cajon Zoning Ordinance and the conditions of approval for the Residential Project. Affordable units shall contain on average the same number of bedrooms as the market rate units in the Project, and shall be comparable with the market rate units in terms of materials and finished quality.
H. 
Application of Percentages. If the application of any percentage required by this Chapter yields a fraction, the resulting fraction shall be rounded to the nearest whole number.
(Ord. 4825 § 1, 2005)
A. 
Density Bonus. In the case of Residential Projects where a Developer or Owner is willing to produce Lower Income Household Units above and beyond the requirements of this Chapter, the City Council may, if requested by the Developer or Owner and after a recommendation by the Planning Commission, grant a density bonus as provided in Chapter 17.220 or Section 17.220.050 of the Zoning Ordinance.
B. 
Other Incentives. The City Council may, if requested by the Developer or Owner and after review by the Director, grant such other incentives to the Developer or Owner as it deems appropriate, including, but not limited to, the following:
1. 
Assistance in marketing the Project through sources including, but may not be limited to, the City website.
2. 
Deferred payment of any in-lieu fees pursuant to Section 15.82.040(A)(2) provided that:
a. 
The deferral of in-lieu fees are secured by a lien contract or similar document, which must be executed prior to issuance of building permits or recording of any map, with the County Recorder of San Diego County; and
b. 
The amount of deferred in-lieu fees shall be based on the greater of: (i) in-lieu fees approved at the time a map is recorded; or (ii) in-lieu fees approved at the time of issuance of the certificate of occupancy for the Project specified in subsection (B)(2)(d) of this section;
c. 
Developer or Owner shall execute all documents necessary to ensure collection of deferred in-lieu fees at an interest rate to be determined by the Director; and
d. 
The payment schedule of the deferred in-lieu fees shall be structured such that the total aggregate amount of in-lieu fees must be paid prior to the issuance of a certificate of occupancy for a unit that results in 90% construction of the Project, but in no event prior to construction of the final unit in the Project.
3. 
Assistance in obtaining such federal, state or local funding and/or subsidies as may be available in connection with the development of affordable housing.
(Ord. 4825 § 1, 2005; Ord. 5033 § 9, 2015)
To the extent the Developer or Owner demonstrates that full compliance with the requirements set forth in Section 15.82.030 are not Feasible, the City Council may permit the Developer or Owner to meet all or a portion of its obligations through one or more of the following alternatives:
A. 
Land Dedication.
1. 
A Developer or Owner may make an irrevocable offer to dedicate land within the Project Area to the Agency or to a nonprofit Developer or Owner of affordable housing approved by the Agency. The land offered for dedication shall have a value, as established by an independent appraisal performed by an appraiser selected or approved by the City, which equals or exceeds the product of the number of Affordable Units for which the Developer or Owner proposes to substitute dedicated land multiplied by the Maximum Affordable Purchase Price in effect for the Project at the time of the offer to dedicate.
2. 
The Developer or Owner must identify the land to be dedicated at the earliest possible time in accordance with Section 15.82.025 of this Chapter. The land as a substitute for Affordable Units shall be suitable for development similar in style, quantity and quality as the Residential Project and shall be consistent with the City's General Plan designation applicable to the land offered for dedication.
3. 
The property must be appropriately zoned, buildable, and free of toxic substances and contaminated soils or other environmental constraints, and large enough to accommodate, not less than, the number of required Affordable Units required by the Residential Project.
4. 
Dedication of the land shall occur prior to issuance of a building permit or recording of any map.
5. 
The City Council may approve, conditionally approve, or reject such offer of dedication. If the City rejects the offer, the Developer or Owner shall be required to meet the obligations by other means set forth in this Chapter.
B. 
In-Lieu Fees.
1. 
The Developer or Owner may meet its obligation under this section through the payment of inlieu fees.
2. 
The City Council shall annually adopt a resolution setting forth the amount of in-lieu fees as part of the City Fee Schedule. The schedule shall reflect the total estimated cost to the Agency of developing the Affordable Units, or an alternative amount approved by the City Council. In-lieu fees paid pursuant to this section shall be deposited in the Affordable Housing Trust Fund.
3. 
The In-lieu fee shall be based on 100% of the total Gross Building Floor Area of the entire Residential Project, multiplied by the in-lieu fee, in effect as of the date of intended issuance of building permits or recording of any map, whichever occurs first. The total Gross Building Floor Area shall be determined by the Building Division.
4. 
In-lieu fees shall be paid in full prior to the issuance of the first building permit for the Residential Project or recording of any map, whichever occurs first.
5. 
In the event in-lieu fees are paid and a Residential Project application expires, the in-lieu fee pursuant to Section 15.82.040(A)(2)(d) for the new Residential Project application shall apply and the Developer or Owner shall receive credit for in-lieu fees previously paid for the Residential Project.
C. 
Production of Affordable Housing Units off-site or outside the Project Area.
1. 
The Developer or Owner may propose to meet its obligations under this section with Units located off-site or outside of the Project Area. The Units shall be identified by the Developer or Owner in accordance with Section 15.82.025 of this Chapter.
2. 
Number of Affordable Units: The number of units shall equal or exceed the following:
a. 
If the units are located off-site but inside of the Project Area, the provisions of Section 15.82.030 shall apply.
b. 
If the units are located outside of the Project Area, two units outside a Project Area for each unit that otherwise would have been required to be available inside a Project Area shall be required at an Affordable Housing Cost or Affordable Rent, and occupied by, Persons and Families of Low or Moderate Income:
i. 
Not less than 40% of the required Affordable Units of this subsection shall be available to and occupied by Very Low Income Households at an Affordable Housing Cost or Affordable Rent.
3. 
The units shall be similar in style, quantity, quality, and amenities of the units that would have been produced on-site.
4. 
The production of Affordable Units off-site or outside the Project Area shall be built concurrently with the Residential Project to be built inside the Project Area.
5. 
All other requirements of this Chapter shall apply to the production of Affordable Units off-site or outside the Project Area.
(Ord. 4825 § 1, 2005)
A. 
Contents. Evidence of compliance with this Chapter shall be in the form of an Affordable Housing Agreement between the Developer or Owner and the City. Affordable Housing Agreements shall require compliance with all applicable terms of this Chapter, and shall include the following:
1. 
Residential Projects.
a. 
If the Developer or Owner is required to construct or produce Affordable Units, the Agreement shall indicate the family income targeted; number, location, tenure of affordability, size and construction scheduling of all Affordable Units and any other information required by the City relative to the obligations imposed by this Chapter.
b. 
If the Developer or Owner is permitted to dedicate land for the development of Affordable Units, the Agreement shall identify the site of the dedicated land and shall provide for the implementation of such dedication in a manner deemed appropriate and timely by the City.
c. 
If the Developer or Owner is permitted to pay an in-lieu fee, the Agreement shall specify the amount of the fee, method and timing of payment. No building permit shall be issued or final map recorded until the Developer or Owner provides written proof of the payment of all in-lieu fees required prior to the issuance of the building permit, recordation of a map or a deferral of fees in compliance with Section 15.82.035(B)(2).
d. 
The Developer or Owner shall execute all other documentation necessary to enforce the Affordable Housing Agreement and affordability of the Affordable Units.
B. 
Recordation. The Agreement shall be recorded and provide for all applicable affordability controls in the form of covenants running with the land, prior to the earlier of the issuance of any building permit or final subdivision or parcel map recordation for the Residential or Rehabilitation Project. Recordation shall be against the real property upon which the Affordable Units are to be located.
C. 
Review and Approval. Affordable Housing Agreements shall be reviewed by the Director and approved by the Agency and the City Attorney.
(Ord. 4825 § 1, 2005)
Affordable Units shall remain affordable for at least the length of time required by Health and Safety Code Section 33413 at the time of the recordation of the affordability controls:
A. 
Owner-occupied units shall be affordable for the Longest Feasible Time but not less than 45 years;
B. 
Rental units shall be affordable for the Longest Feasible Time but for not less than 55 years.
(Ord. 4825 § 1, 2005)
A. 
General Standards.
1. 
Affordable Units are reserved for Very Low, Low or Moderate-Income Households at an Affordable Housing Cost. The income limits, maximum allowable rents, sales prices and utility schedules for the Affordable Units shall be published by the Department on an annual basis.
2. 
Any person who occupies a rental Affordable Unit or purchases an Affordable Unit shall occupy the unit as his or her principal residence.
3. 
None of the following individuals, or their immediate family members, who are a party to the Residential Project shall be eligible to purchase or rent an Affordable Unit: City employees and officials who have policymaking authority or influence regarding City housing programs; the Residential Project Owner, Developer, officers, employees, or subcontractors.
B. 
For-Sale Affordable Units.
1. 
Selection of Purchasers. The Developer or Owner of ownership Affordable Units is required to fill vacant units in the following manner:
a. 
If residential ownership or rental units are being demolished, or households are displaced in conjunction with the Residential Development, the existing or displaced households shall be given the right of first refusal to purchase and occupy the Affordable Units;
b. 
The Developer or Owner should make all efforts to offer Affordable Units to those households who work and/or live in the City of El Cajon;
c. 
All Affordable Units shall be sold by lottery to ensure the greatest degree of impartiality;
d. 
The purchasers of Affordable Units shall not own any other real property.
2. 
Initial Eligibility. As a condition of the close of escrow of the Affordable Unit to the initial purchaser, the Developer, Owner, or purchasers lender of choice, shall submit acceptable documentation to the Department to determine eligibility as set forth in Section 15.82.030, as set forth in the Guidelines.
3. 
Ongoing Eligibility. The purchaser shall submit, on an annual basis to the Director or designee, purchaser occupancy certification and related documentation for each Affordable Unit.
4. 
Resale or Transfer to an Income-Eligible Purchaser. After the initial sale of the Affordable Unit, the unit shall remain affordable to subsequent eligible buyers pursuant to a resale restriction agreement, or equivalent document, which shall be in effect for 45 years.
a. 
The owner of an Affordable Unit wishing to sell that unit shall notify the City prior to accepting an offer.
b. 
The City of El Cajon shall have the right of first refusal to purchase the Affordable Unit.
c. 
The owner of an Affordable Unit may sell that unit to an income-eligible purchaser at the applicable Affordable Housing Cost provided that the Department certifies the purchase price and eligibility of the buyer.
d. 
The purchaser shall execute all reasonable and necessary documents in an amount that constitutes the difference between the Unrestricted Fair Market Value of the Affordable Unit and Maximum Affordable Purchase Price actually paid ("Agency Assistance").
e. 
The City shall prepare and the purchaser shall execute all documentation necessary to ensure continued eligibility of the Affordable Unit.
f. 
The unit shall be sold at no greater than the Maximum Affordable Purchase Price, applicable to the unit.
5. 
Resale or Transfer to a Non Income-Eligible Purchaser. After the initial sale, and upon any sale, rental, refinance, transfer, or conveyance of the Affordable Unit to a non income-eligible purchaser, the City shall receive:
a. 
The sum which is calculated as the difference between the original Unrestricted Fair Market Value of the Affordable Unit at the time of purchase and the Maximum Affordable Purchase Price of the Affordable Unit actually paid ("Agency Assistance"), as determined by an appraisal approved by the City; and
b. 
A share of the equity in the Net Appreciation in the Affordable Unit.
i. 
Net Appreciation to the City shall not exceed that percentage of Agency Assistance of the Unrestricted Fair Market Value of the Affordable Unit at the time of an initial purchase.
c. 
All funds collected shall be deposited into the Affordable Housing Trust Fund.
d. 
The property shall be sold at no less than Fair Market Value.
6. 
The City of El Cajon shall be entitled to the right of first refusal on any for sale Affordable Unit upon its listing for sale.
7. 
Title or Occupancy Change. The Director must approve any change of title or occupancy that occurs after the initial purchase of an Affordable Unit.
8. 
Penalty for Ineligible Resale or Use. In the event of a sale of the Affordable Unit to a non-eligible purchaser, the City shall recapture funds as provided in this section.
9. 
Monitoring. The Director reserves the right to annually monitor each purchaser's compliance with regard to occupancy, including annual property inspections.
C. 
Multi-family Rental Affordable Units.
1. 
Selection of Tenants. The owner of rental Affordable Units is required to fill vacant units in the following manner:
a. 
If residential ownership or rental units are being demolished, or households are displaced in conjunction with the Residential Development, the displaced households shall be given the right of first refusal to occupy the Affordable Units;
b. 
The Developer or Owner should make all efforts to offer Affordable Units to those households who work and/or live in the City.
2. 
Initial Eligibility of Tenants. The Owner or designee of Affordable Units shall select incomequalified households, which shall in turn be subject to eligibility certification by the department or designee. The Developer, Owner or designee shall submit acceptable documentation to determine household eligibility as set forth in Section 15.82.030 which may include, but is not limited to: an application, three-years federal tax returns, W-2 forms, pay stubs, bank statements and other documentation as required.
3. 
Ongoing eligibility. The Owner or designee shall submit, on an annual basis, to the Director or designee tenant household and income certifications for each Affordable Unit.
4. 
Changes in Income of Tenant. If after moving into an Affordable Unit, the tenant's income exceeds the income limit for that unit, the following shall apply:
a. 
The next available comparable unit must be rented at Affordable Rent to a Very Low, Lower or Moderate Income Household as the Affordable Unit lost.
5. 
Monitoring. The Director reserves the right to annually monitor the project compliance with regard to occupancy, Affordable Rents, including annual property inspections.
(Ord. 4825 § 1, 2005)
A. 
There is hereby established the City of El Cajon Affordable Housing Trust Fund. Separate accounts within such fund may be created from time to time to avoid commingling as required by law or as deemed appropriate to further the purposes of the Fund.
B. 
The Fund shall be administered by the Director who shall have the authority to govern funds consistent with this Chapter, and to prescribe procedures for said purpose.
C. 
Purposes and Uses of Funds.
1. 
Monies deposited in the Fund along with any interest earnings on such monies shall be used solely to increase and improve the supply of housing affordable to Persons and Families of Low or Moderate Income; including, but not limited to: acquisition of property and property rights, cost of construction including costs associated with planning, administration, and design, as well as actual building or installation, as well as any other costs associated with the construction or financing of affordable housing; reimbursement to the City for such costs if funds were advanced by the City from other sources; and reimbursement of Developers or Property Owners who have been required or permitted to install facilities which are beyond that which can be attributed to a specific development. To the maximum extent possible, all monies should be used to provide for additional affordable housing. Monies may also be used to cover reasonable administrative expenses not reimbursed through processing fees, including reasonable consultant and legal expenses related to the establishment and/or administration of the Fund and reasonable expenses for administering the process of calculating, collecting, and accounting for Affordable Housing Trust Fund fees and any deferred City fees authorized by this Chapter.
2. 
Monies in the Fund may be disbursed, hypothecated, collateralized or otherwise employed for these purposes from time to time as the Director and Agency determine is appropriate to accomplish the purposes of the Fund.
3. 
Expenditures from the Fund shall be controlled, authorized and paid in accordance with general City budgetary policies. Execution of contracts related to the use or administration of Fund monies shall be in accordance with standard council policy.
D. 
The Director shall, on an annual basis through the budgetary process, report on the status and priorities of the Affordable Housing Trust Fund.
(Ord. 4825 § 1, 2005)
The requirements of this Chapter shall not apply to:
A. 
Residential or Rehabilitation Projects for which a Residential Project application has been received by the City prior to the effective date of this ordinance provided, however, that if a Residential Project application has been received, not earlier than four years prior to the effective date of this ordinance, for which building permits have not been issued, and the Developer is required by law to develop Affordable Units, this Chapter shall apply to the Project;
B. 
Residential Projects of less than three units;
C. 
Applications for a Residential Project of three or more units that do not involve Substantial Rehabilitation received on or prior to December 31, 2005 unless a later enacted statute, that is enacted before January 1, 2006, deletes or extends that date;
D. 
Any dwelling unit which is damaged or destroyed by fire or natural catastrophe so long as the square footage, reconstruction, and use of the building remains the same;
E. 
A Residential or Rehabilitation Project subject to a separate agreement with the City or Agency for the production of affordable housing units that exceed the requirements of this Chapter.
(Ord. 4825 § 1, 2005)
The requirements of this Chapter may be reduced, modified, adjusted or waived if the Developer or Owner demonstrates to the City Council that there is not a reasonable relationship or nexus between the impact of a proposed Residential Development and the requirements of this Chapter, or that applying the requirement of this Chapter would take property in violation of the United States or California Constitutions.
A. 
Timing. To receive consideration for an adjustment or waiver, the Developer or Owner must make the request to the City and provide supporting documentation when applying for a first approval for the Residential Development, and/or as part of any appeal that the City provides as part of the process for the first approval.
B. 
Considerations. In making a determination on an application to adjust or waive the requirements of this Chapter, the City Council may assume each of the following when applicable: (i) that the Developer or Owner is subject to the affordable housing requirement or in-lieu fee; and (ii) the extent to which the Developer or Owner will benefit from incentives under Section 15.82.035; (iii) the loss of affordable housing units may result in the imposition of obligations on the City or the Agency under applicable federal or state law, the impact of which cannot be fully mitigated by the Developer or Owner as a condition of approval.
C. 
Modification of Plan. If the City Council, upon legal advice provided by or at the behest of the City Attorney, determines that the application of the provision of this Chapter lacks a reasonable relationship between the impact of a proposed Residential Project and the requirements of this Chapter, or that applying the requirement of this Chapter would take property in violation of the United States or California Constitutions, the Affordable Housing Plan shall be modified, adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result. If the City Council determines that no violation of the United States or California Constitutions would occur through application of this Chapter, the requirements of this Chapter remain applicable.
(Ord. 4825 § 1, 2005)
The City Council may, by resolution, establish reasonable fees and deposits for the administration of this Chapter.
(Ord. 4825 § 1, 2005)
Nothing in this Chapter shall in any way preclude or limit any aggrieved party from seeking judicial review after such person has exhausted the administrative remedies provided by this Chapter. However, it shall be conclusively presumed that a litigant has not exhausted his or her administrative remedies as to any issue, which is not raised in the administrative proceedings authorized herein.
(Ord. 4825 § 1, 2005)
Any person violating any provision or failing to comply with any of the requirements of this chapter shall be deemed guilty of an infraction as set forth in Chapter 1.24 of the El Cajon Municipal Code.
In addition to the above, the city council may request the city attorney to commence any other available civil or criminal proceeding to enforce the provisions of this chapter and the rights of the city under any Affordable Housing Agreement, including, but not limited to, actions for specific performance, injunctive relief or damages.
(Ord. 4825 § 1, 2005)
If any provision or section of this chapter is determined to be invalid or unenforceable, such determination shall not affect the enforceability or validity of the remaining provisions or sections of the chapter.
(Ord. 4825 § 1, 2005)