The purpose of this article is to implement a general plan policy to establish an incentive system for the local workforce, such as a lottery, as part of the city's buyer selection process for low-moderate and middle income ownership units. The system is intended to provide the highest number of lottery tickets to households with a member of the local workforce.
The city council hereby finds:
(a) 
The State of California Government Code Sections 65580 and 65589.5 state the following findings and goals for housing:
(1) 
Local governments have a responsibility to use the powers vested in them to provide for the housing needs of all economic segments of the community considering economic, environmental, and fiscal factors and community goals set forth in the general plan. Each locality is best capable of determining what efforts are required by it to contribute to the attainment of the state housing goal.
(2) 
California housing has become the most expensive in the nation. Among the consequences are lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.
(b) 
The establishment of an incentive system for the local workforce by the City of Davis is consistent with the state legislature's housing goals and intent in that:
(1) 
The City of Davis is interested in providing housing which is affordable to its local workforce as well as other underserved households.
(2) 
The City of Davis is using its vested powers to provide for the housing needs for all economic segments of the community and the local workforce in particular.
(3) 
The City of Davis is attempting to provide housing for the local workforce to support the community's growth in employment, retain a balance of jobs and housing, provide mobility, and preserve air quality. The City of Davis is attempting to avoid urban sprawl and excessive commuting.
(c) 
The establishment of an incentive system for the local workforce by the City of Davis is consistent with the city's general plan policies which call for a mix of housing types that meet a variety of needs. These policies include:
(1) 
Vision 2. Base residential growth on internal housing needs, primarily the needs of the local workforce.
(2) 
Policy Housing 4.2. Provide affordable housing opportunities for the local workforce in the Davis area.
(3) 
Policy Housing 4.3. Promote a linkage between new ownership housing and the local workforce.
(4) 
Action Housing 4.3a. Implement an incentive system for the local workforce, such as a lottery, as part of the city's buyer selection process for low-moderate income and middle income affordable ownership units. The system shall provide the highest number of lottery tickets to households with a member of the local workforce.
(d) 
The Davis housing market is not providing adequate ownership housing opportunities for the city's local workforce. The city's goal is to provide a range of housing for its local workforce and has chosen to take action to ensure that affordable housing is constructed and maintained within the City of Davis. The city council directed staff to research mechanisms for providing such housing.
(e) 
The implementation of a incentive system for the local workforce within a lottery does not exclude any household from the affordable ownership opportunities within the City of Davis and allows structural opportunity within the system for the city to compensate for any disparate impacts to protected groups, such as seniors and persons with disabilities.
(f) 
The city council finds that the incentive system for the local workforce would not discriminate against protected classes including minorities, persons with disabilities, seniors, and families with children.
The incentive system would not discriminate against racial minorities considering the "planning area" where employees are given a preference in the lottery system. The racial and ethnic make-up of the employees within the "planning area" (including the City of Davis, UC Davis and the parts of unincorporated Yolo County within the "planning area") is similar to that of the employment in the larger Yolo-Sacramento Consolidated Metropolitan Statistical Area (CMSA).
In general, persons with disabilities and seniors tend to have a lower labor force participation rate than the general adult public. Therefore, it is likely that under a local employee incentive system the persons with disabilities and seniors may have proportionately fewer opportunities to obtain housing than the rest of the community's households. This occurrence has been corrected by the inclusion of additional categories for both seniors and persons with disabilities that provide these groups with additional tickets in the lottery, regardless of their participation in the local workforce.
It is difficult to characterize the potential impact of a local employee incentive system on households with children. Households with children, however, are more likely to have a member in the workforce than the public at large, in which case it is unlikely that a local employee incentive system would adversely affect households with children.
(g) 
Protected classes would have reasonable opportunities to obtain housing in Davis and not be excluded from housing due to the local employee incentive system. The vast majority of new homes available for sale would not be subject to the local employee incentive system and would be available to any household able to pay purchase price. There are ample opportunities in the resale of existing homes in the community that would not be subject to the local employee incentive system. The incentive system will provide one lottery ticket to interested persons who are not local employees. Rental housing opportunities are not affected by the incentive system.
(h) 
The public purposes served by providing housing opportunities for the local workforce include:
(1) 
Helping the city, school district, and local hospital to better serve the public with vital services;
(2) 
Helping businesses by facilitating greater employee productivity and morale;
(3) 
Enhancing recruitment and retention efforts, and increasing service levels;
(4) 
Reducing traffic congestion and air pollution by people who otherwise would live outside Davis and commute longer distances to work;
(5) 
Improving the quality of life for Davis employees by bringing them closer to their place of work.
(i) 
The city council has considered the potential environmental effects from the incentive system for the local workforce to buy housing units produced under the city's inclusionary requirements and finds that the project would not have a significant effect on the environment or a cumulatively considerable environmental effect in that the project. The incentive system would not affect the amounts or allowable densities of residential development in the general plan. The project would have cumulatively beneficial effect by providing housing opportunities for the local workforce. Workforce housing would reduce traffic congestion and air pollution by Davis workers who otherwise would live outside Davis and commute longer distances to work. City council approves Negative Declaration No. 03-05 for this project.
(Ord. 2242 § 1, 2006)
For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:
Affordable ownership housing
is housing affordable, based upon mortgage payments or monthly carrying charges, to very low, low, moderate, and middle income households. This term includes all ownership units constructed in order to meet the requirements of Articles 18.05 and 18.06 of the Davis Municipal Code.
General public
is a category that includes households that do not fit into any of the other categories provided within the incentive system.
Local workforce
is a category that includes households with an adult who works a minimum and an average of thirty hours per week and has done so for the past six months at a business or other organization that is located within the Davis planning area, as shown in the "planning area" map found in the Davis general plan. This incentive shall exclude workforce members of other incorporated cities within the "planning area" map. In order to qualify, the individual must have been a member of the workforce of a local business or other organization for a minimum of six months, as evidenced at the time of application for the affordable ownership housing unit.
Persons with disabilities
is a category that includes households consisting of a head of household, spouse, domestic partner, or sole member who has a physical or mental impairment that limits one or more major life activities, as defined in the Fair Employment and Housing Act (FEHA) of California Government Code Section 12926(i)(1) and (2), and (k)(1) and (2).
Senior
is a category that includes households consisting of a head of household, spouse, domestic partner, or sole member that is at least sixty-two years of age.
(Ord. 2242 § 1, 2006)
This article is enacted pursuant to the general police power of the city and is for the purpose of connecting affordable ownership housing opportunities in Davis with the city's local workforce, due to the assessed advantages of doing so. Advantages of having members of the local workforce also reside within the city have been identified in the analysis prepared for the City of Davis to address the needs and impacts of middle income housing. This article shall apply to all affordable ownership units completed after March 8, 2005.
(Ord. 2242 § 1, 2006)
(a) 
Lottery system. A lottery system shall be used to incorporate the city's adopted incentive system for the local workforce into the city's buyer selection process. This lottery shall be held in compliance with the City of Davis buyer/tenant selection and screening guidelines. Applications for the lottery of affordable ownership units shall include the request for information regarding whether the household fits into one of the incentive system's defined categories: local workforce, persons with disabilities, or seniors. The application shall also require verification of such a household characteristic, as detailed in the City of Davis buyer/tenant selection and screening guidelines.
(b) 
Incentive system category verification. Each of the categories defined by the incentive system shall require verification submitted with the household's application to be placed into the lottery. The verifying documents for each category shall be defined within the City of Davis buyer/tenant selection and screening guidelines. These verifying documents shall only be used to determine a household's incentive category in the lottery, and will not be provided as public record.
(c) 
Incentive system monitoring. The City of Davis shall have the right to review any and all verifying documents for applicants within this incentive system.
(d) 
Lottery ticket distribution. Based on the information provided within the household's application and the determination of the household's appropriate category after review of the required verifying documents, the following ticket amounts shall be distributed for each category (per the definitions in Section 18.07.020):
(1) 
Local Workforce. Four tickets to a household with an adult who is a member of the local workforce.
(2) 
Persons with Disabilities. Two tickets to a household with a head of household, spouse, domestic partner, or sole member who has a disability.
(3) 
Seniors. Two tickets to a household with a head of household, spouse, domestic partner, or sole member who is a senior.
(4) 
General Public. One ticket to a household that does not fit into one of the other categories.
The community development and sustainability director shall determine the appropriate number of lottery tickets that shall be assigned in special circumstances, where the qualification of the applying household into one of the specified categories is unclear. Any person aggrieved by such a determination, may file a written appeal to the city clerk within ten days of the final determination. The appeal shall be heard by the city council for final decision.
(e) 
Maximum number of tickets per household. Should a household qualify for more than one of the above categories, the highest qualification shall be used. Therefore, the maximum number of tickets permitted for a single household will be four tickets and the minimum will be one ticket.
(f) 
One application per household. Any persons who have or intend to apply as a household for the purposes of qualifying for a mortgage loan, shall also be treated as one household for the purposes of determining the maximum number of lottery tickets for the applying persons of that household. Persons who qualify for a mortgage as one household must apply as one household, under one application for units within the city's affordable housing program (low, moderate, and middle income units).
Details regarding this restriction are provided in the City of Davis buyer/tenant selection guidelines.
(Ord. 2242 § 1, 2006; Ord. 2390 § 2, 2012)
(a) 
All very low, low, moderate, and middle income affordable ownership units shall be subject to the requirements of this article, unless the project can prove to the city council that doing so would negatively impact the overall feasibility of the project.
(b) 
The requirements of this article may be adjusted or waived pursuant to the exemption process specified in Sections 18.05.080 and 18.06.080 of the low-moderate and middle income ordinances.
(Ord. 2242 § 1, 2006)