The purpose of this chapter is to establish a citywide inclusionary housing program that provides requirements and procedures to develop housing that would be affordable to households of very low, low, or moderate incomes, meet the city's regional share of housing needs, and implement the goals and objectives of the general plan and housing element.
(Ord. 1833 § 3, 2021)
The provisions of this chapter shall apply to all residential development that will construct ten or more units. These applicable residential developments will be required to comply with this chapter and provide inclusionary housing units at an affordable housing cost.
(Ord. 1833 § 3, 2021)
This chapter shall not apply to any of the following:
A. 
Projects that are not proposing residential units.
B. 
Residential projects which are developed in accordance with the terms of a development agreement that was approved by the city prior to enactment of the ordinance codified in this chapter.
C. 
Residential developments for which a planning permit has been formally submitted to the city and accepted by the city before July 1, 2021. Should the planning permit for an approved residential project expire or be revoked by the city, the requirements of this chapter shall then apply if a new planning permit is resubmitted for the residential project.
D. 
The director of community and economic development may exempt a residential development from the requirements of this chapter if applicable federal, state or local laws are changed which result in conflict with this chapter.
(Ord. 1833 § 3, 2021; Ord. 1853, 12/18/2023)
All residential development that will construct ten or more units will be required to comply with this chapter and provide inclusionary housing units. If inclusionary housing units are required, the following provisions shall apply:
A. 
Either for-sale or rental inclusionary housing units may be provided, subject to the following affordability requirements for each unit type.
1. 
If the applicant chooses to provide for-sale inclusionary housing units, fifteen percent of the total number of dwelling units proposed with the residential development can be made available for purchase to those households earning no more than one hundred ten percent of the area median income.
2. 
If the applicant chooses to provide rental inclusionary housing units, nine percent of the total number of dwelling units proposed with the residential development can be made available for rent to moderate income households, or six percent of the total number of dwelling units for rent to very low and low income households.
3. 
If both for-sale and rental units are being provided, the for-sale units shall comply with those provisions described in subsection (A)(1) above. The rental units shall comply with those provisions described in subsection (A)(2) above.
B. 
In calculating the required total number of inclusionary housing units, all fractional units shall be rounded up to the next higher whole number.
C. 
If an applicant owns or controls contiguous properties, the applicant shall not avoid the requirements of this chapter by submitting piecemeal planning permit applications. The first planning permit application for the residential development shall identify all contiguous properties under common ownership and control, as applicable.
(Ord. 1833 § 3, 2021; Ord. 1853, 12/18/2023)
The applicant's inclusionary housing plan shall indicate the scheduling and phasing for construction of the required inclusionary housing units. The city shall review the proposed construction scheduling and phasing with its review and approval of the inclusionary housing plan. The latest that any inclusionary housing unit could be built, however, would be prior to issuance of the last certificate of occupancy for the overall residential development project.
(Ord. 1833 § 3, 2021)
A. 
The inclusionary housing units shall be constructed similarly as the market rate units that would be built with the overall residential project. The inclusionary housing units and market rate units shall have consistent exterior and interior design features, construction materials, furniture, and all other similar improvements. In addition, inclusionary housing units shall have access to common open space and facilities, and all other amenities as the market rate units.
B. 
Applicants that are required to provide inclusionary housing units can apply those benefits that are described in Chapter 18.80 Affordable Housing Incentives, which allow density bonuses, parking reductions and other benefits for providing affordable housing units.
(Ord. 1833 § 3, 2021)
To comply with the city's inclusionary housing requirements, applicants may construct their required inclusionary housing units either on-site within the overall proposed residential project site; or off-site on other dedicated property; or pay in-lieu fees, or reconstruct other existing residential units, subject to the following provisions:
A. 
Applicants may construct their required inclusionary housing units on-site within the residential project.
B. 
Applicants may construct their required inclusionary housing units off-site. If construction of the required inclusionary housing units occurs off-site, the applicant must also acquire and manage the off-site property.
C. 
Applicants may pay In-lieu fees. The in-lieu fee shall be charged at an amount equivalent to six dollars and fifty cents per square foot of building space for the project's total floor area. All in-lieu fees shall be paid prior to the last certificate of occupancy that is issued for the overall proposed residential development.
D. 
Applicants may acquire and reconstruct existing units, subject to the following provisions. These types of units can be acquired by the applicant, then reconstructed in accordance with city building procedures and requirements, then converted to affordable inclusionary housing units.
1. 
If the existing units are occupied, the applicant shall assume the costs for noticing, relocating the existing residents, and complying with all state and county requirements related to relocation.
2. 
The existing residential units cannot be a nonconforming use.
3. 
The reconstructed units shall comply with all current applicable Building and Housing Codes and requirements.
4. 
A physical needs assessment shall be prepared and submitted to the city. The assessment shall evaluate each existing unit to be acquired and reconstructed, the property upon which it is located, any associated common area, and describe all existing structures and properties that need repair, replacement and/or maintenance.
5. 
If existing units are owner-occupied, then the reconstructed inclusionary housing unit shall continue to be owner-occupied. If the existing units are rentals, the applicant may choose to have the inclusionary housing unit be either renter or owner-occupied.
6. 
The bedroom count of the reconstructed units shall be the same as the required bedroom count that would be required for the inclusionary housing unit.
E. 
Applicants may choose any combination of the options described in subsections A through D above to comply with the provisions of this chapter. Should an applicant choose to select a combination of options, the city shall review these proposals on a project-by-project basis to ensure that the required number of inclusionary housing units are ultimately provided.
F. 
Applicants, at a minimum, shall provide the following information, regardless if the required inclusionary housing units are constructed on- or off-site:
1. 
The project site is consistent with the city's general plan and zoning designations, maximum residential density standards, and other relevant development and design requirements.
2. 
The project site is suitable for development of the inclusionary housing units in terms of configuration, physical characteristics, location, access, adjacent uses, and other relevant development and design requirements.
3. 
Sufficient infrastructure is available and neighboring streets must be accessible at the property line and have adequate capacity.
4. 
There are no environmental or geological hazards at the project site.
5. 
Schedules for acquiring property or existing residential units, construction activities, and final inspections shall be provided.
6. 
Inclusionary housing units shall not be eligible for credits or transfers.
G. 
The city shall establish an inclusionary housing in-lieu fee fund where all acquired in-lieu fees shall be deposited. Said fee fund shall be approved by city resolution. Deposited fees shall be used by the city to enter into joint venture agreements with developers to construct the required inclusionary housing units.
H. 
To be considered as the city's selected inclusionary housing developer, all potential developers shall submit pro-formas, construction schedules, financial documentation, administration costs, and other related information to the city. The city shall review and consider this material in selecting the inclusionary housing developer.
I. 
All on-site or off-site inclusionary housing units, regardless if the units are for-sale or rental, shall be subject to the design standards, requirements, and procedures described in this chapter.
J. 
Inclusionary housing units, regardless if the units are for-sale or rental, shall be within a newly established homeowner's association or incorporated into an existing homeowner's association. If the inclusionary housing units are constructed on-site, as part of the larger residential development, said inclusionary housing units must be included within the newly established homeowner's association. If said inclusionary housing units are constructed off-site, these units must either be within a newly established homeowner's association or be incorporated into an existing homeowner's association that may have been established with the existing off-site property.
(Ord. 1833 § 3, 2021)
Applicants that are required to provide inclusionary housing units, in accordance with the provisions of this chapter, shall prepare an affordable housing agreement that describes the design and location of the inclusionary housing units and their affordability requirements. The following describes those plans that shall be included in the affordable housing agreement and how the affordable housing agreement will be approved by the city.
A. 
Plans Included in the Affordable Housing Agreement.
1. 
Affordable Housing Plan. These plans shall show the location of the inclusionary housing units within the overall residential project site.
2. 
Inclusionary Housing Plan. These plans shall describe the inclusionary housing units that will be provided, as follows:
a. 
Will the inclusionary housing units be for-sale or rental.
b. 
How will the inclusionary housing requirements be satisfied pursuant to this chapter.
c. 
The number of inclusionary housing units that are required and will be provided, unit types, number of bedrooms and baths, unit size, design features and amenities, etc.
d. 
Anticipated construction activities, phasing, and completion schedule.
e. 
How will the inclusionary housing units be marketed.
f. 
How will tenant incomes be verified for rental inclusionary units (if applicable).
g. 
Provide a financing program for the ongoing administration and monitoring of rental inclusionary units.
h. 
How will the affordability of the inclusionary housing units be maintained.
i. 
Any other information that is necessary to evaluate the compliance of the affordability of the inclusionary housing units with the provisions of this chapter and the city's affordable housing agreement requirements.
3. 
Affordable Housing Covenants. These covenants shall ensure the continued affordability of inclusionary housing units in the overall residential development.
a. 
Affordable housing covenants shall include the following, as applicable: inclusionary housing and regulatory terms, promissory notes, deeds of trust, resale restrictions, rights of first refusal, options to purchase, and/or other relevant financial and administration documents.
b. 
Affordable housing covenants shall require that all inclusionary housing units remain affordable to the targeted income group for no less than the time periods set forth in California Health and Safety Code Sections 33413(c)(1) and (2). A longer term of affordability may be required if the residential development receives a subsidy of any type, including, but not limited to, loan, grant, mortgage financing, mortgage insurance, or rental subsidy, and whether the subsidy program requires a longer term of affordability.
B. 
Approval of the Affordable Housing Agreement.
1. 
For those residential developments that are required to provide inclusionary housing units, the affordable housing plan and inclusionary housing plan shall be reviewed as part of the overall residential development's Planning permit application.
2. 
The affordable housing agreement, including the affordable housing plan, inclusionary housing plan, and affordable housing covenants shall be approved by city council resolution, prior to issuance of any building permit for the overall residential development.
3. 
Upon submittal, the affordable housing administrator shall determine if the affordable housing agreement, including the affordable housing plan, inclusionary housing plan, and affordable housing covenants are complete and conform to the provisions of this chapter and city's housing requirements.
(Ord. 1833 § 3, 2021; Ord. 1853, 12/18/2023)
All applicants shall either construct their required inclusionary housing units or pay appropriate in-lieu fees, prior to issuance of the last certificate of occupancy for the overall residential development project. To ensure that the constructed inclusionary housing units are properly maintained and have incorporated satisfactorily into the overall residential development project, the following provisions apply.
A. 
When inclusionary housing units are for-sale, units shall be within a newly established homeowner's association or incorporated into an existing homeowner's association.
B. 
The homeowner's association shall prepare and submit annual compliance reports to the city to ensure that the inclusionary housing units continue to comply with the affordable housing agreement, affordable housing plan, inclusionary housing plan, affordable housing covenants, and all other city requirements.
C. 
City staff may conduct periodic inspections to also ensure compliance with the affordable housing agreement, affordable housing plan, inclusionary housing plan, affordable housing covenants, and all other city and zoning requirements.
D. 
The city council may adopt fees to cover the costs for city inspections and monitoring. These fees shall be deposited into the inclusionary housing in-lieu fee fund.
E. 
The city shall evaluate the effectiveness of this chapter every three years after the operative date of this chapter.
(Ord. 1833 § 3, 2021; Ord. 1853, 12/18/2023)
Adjustments and/or waivers from the provisions and requirements of this chapter may be considered by the city on a project-by-project basis. Adjustments and/or waivers of the following circumstances and conditions may be proposed by the applicant, subject to city approval. Procedures and requirements for city review and approval of any adjustment or waiver request are as set forth in this section.
A. 
Circumstances and Conditions.
1. 
An applicant may propose an alternative method of meeting the inclusionary housing requirements described in this chapter. The director may approve the recommended alternative if the director determines that the alternative will provide as much or more affordable housing units; the alternative will benefit the same or lower income levels; affordable units will be constructed of the same or superior design quality; and the alternative will provide greater public benefit.
2. 
The requirements of this chapter may be waived, adjusted, or reduced if an applicant shows, based on substantial evidence, that there is no reasonable relationship between the impact of the proposed residential development and the requirements of this chapter, or that the requirements of this chapter will effect a taking of property in violation of federal or state laws.
B. 
City Review and Approval of Adjustment and Waiver Requests.
1. 
Any request for a waiver or adjustment shall be submitted to the city concurrently with the planning application(s), affordable housing plan or inclusionary housing plan for the particular residential development.
2. 
The applicant is responsible for presenting substantial evidence to support the requested waiver or adjustment.
3. 
The director may exempt a residential development from the requirements of this chapter or approve any adjustment or waiver request if the applicant provides substantial evidence to support said exemptions or requests, and if applicable federal, state or local laws are changed which conflict with this chapter.
(Ord. 1833 § 3, 2021; Ord. 1853, 12/18/2023)