Chapter 15.16 AFFORDABLE HOUSING

The City Council finds and determines that:

It is a goal of the City to achieve a balanced community with housing available for households with a range of income levels.

Increasingly, persons of very low, low and moderate income who work and/or live within the City are unable to locate housing at prices they can afford and are increasingly excluded from living within the City.

The high cost of newly constructed housing does not, to any appreciable extent, provide housing affordable to very low, low and moderate income families, and continued new development which does not include an affordable housing component or contribute toward lower cost housing will further aggravate the current housing problems by reducing the supply of developable land.

The housing shortage for persons of very low, low and moderate income is detrimental to the public health, safety and welfare of the residents of the City.

It is a public purpose of the City, and a public policy of the State as mandated by the requirements for a housing element within the City's General Plan to make available an adequate supply of housing for persons of all economic segments of the community;

State and Federal funds to assist in the construction of new affordable housing are limited, and the City has limited resources with which to leverage these State and Federal funds.

In order to meet the City's share of regional housing needs for very low, low and moderate income families, the City's housing element requires that a portion of the dwelling units contained in new residential developments be affordable to very low, low and moderate income families.

(Prior code § 6A-1-10)

§ 15.16.020 Purpose.

The purpose of this chapter is to enhance the public welfare and assure that new residential developments contribute to the attainment of the City's housing goals by increasing the production of dwelling units affordable by families of very low, low and moderate income.

(Prior code § 6A-1-20)

§ 15.16.030 Definitions.

As used in this chapter:

"Affordable"

means a unit provided at an affordable rent or affordable housing cost.

"Affordable housing cost"

for a purchaser means the monthly amount that is affordable to a low or moderate income household, as applicable to the designated affordable unit. The method for calculating affordable housing costs is included in Section 15.16.150 of this chapter.

"Affordable housing ordinance"

means Chapter 15.16, Affordable Housing, of the City of Woodland's City Code.

"Affordable purchase price"

means the maximum sale price a qualified purchaser may be required to pay for the affordable unit, as determined in accordance with the provisions of this chapter.

"Affordable rent"

means the monthly rent that is affordable to a low or very low income household, as applicable to the designated affordable unit. Affordable rent shall be calculated using 50% of Yolo County area median income for very low income households and 80% for low income households, adjusted for household size. The method for calculating affordable rent is included in Section 15.16.110 of this chapter.

"Area median income"

has the definition set forth in Section 50093 of the California Health and Safety Code, as that section may be amended from time to time.

"City"

means the City of Woodland.

"City Manager"

means the Woodland City Manager or designee.

"Community Development Director"

means the Director of the Woodland Community Development Department or designee.

"Density bonus"

means an entitlement to build a number of dwelling units in excess of that number which would otherwise be permitted under the General Plan and zoning code.

"Developer"

means the owner of any real property upon which a residential project is to be constructed and/or the applicant for development of any such project.

"Dwelling unit" or "unit"

means one room or a suite of two or more rooms designed for, intended for or used by one household as their principal residence, which family lives, sleeps and cooks therein, and which unit has at least one kitchen or kitchenette.

"For-sale units"

means those dwelling units developed as part of a residential or mixed-use project which the developer intends will be offered for individual sale or which could be offered for individual sale, including, but not limited to, detached homes, duplex units, condominiums and cooperatives.

"General Plan"

means the General Plan of the City, as it may be amended from time to time.

"Inclusionary housing agreement," "regulatory agreement" or "agreement"

means the agreement between the developer or owner of a residential project and the City that contains specific plans for implementing the affordable housing requirements of this chapter for the specific project.

"Inclusionary unit"

means a dwelling unit developed pursuant to an inclusionary housing agreement to satisfy the requirements of this chapter, including for-sale units available at an affordable housing cost, and multifamily rental units available at an affordable rent.

"In-lieu fees"

means a fee paid to the City's affordable housing fund to increase, improve, and preserve affordable housing in the City of Woodland. In-lieu fees deposited into the affordable housing fund may be used at the discretion of the City Council to make additional affordable housing loans to income-qualified purchasers to facilitate the purchase of homes, to subsidize affordable multifamily projects, or for any other use to promote the development of affordable housing within the City of Woodland. Up to 10% of each year's income from the affordable housing fund may be used for administration and ongoing monitoring of loans made from the fund.

"Low and very low income"

means those income levels determined periodically by the U.S. Department of Housing and Urban Development based on the Yolo County area median income levels adjusted for family size. A low income household shall be a household earning over 50% and less than or equal to 80% of the area median income, adjusted for family size. A very low income household shall be a house-hold earning less than or equal to 50% of the Yolo County area median income adjusted for family size.

"Market-rate unit"

means a unit not restricted to an affordable housing cost or affordable rent.

"Moderate income"

means the income level determined periodically by the U.S. Department of Housing and Urban Development based on the Yolo County area median income levels adjusted for family size. A moderate income household shall be a household earning over 80% and less than or equal to 120% of the Yolo County area median income adjusted for family size.

"Multifamily rental units"

means those dwelling units developed as part of a residential project which the developer intends will be offered for rent or which are customarily offered for rent.

"Notice of intent to sell"

means the notice provided by owners of for-sale units to the City of their intent to offer their unit for sale. The covenants recorded against the property on which the unit is located shall provide that the owner shall provide a notice of intent to sell in the manner prescribed in this chapter.

"One location"

means all adjacent land 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 a person, persons, firm, partnership, association, joint venture, corporation, or any public or private entity or entities or the owner's agent or assignee.

"Qualified purchaser"

means a person or household approved for ownership of an affordable dwelling unit by the Community Development Director in accordance with the provisions of this chapter.

"Rehabilitation"

means the process of improving a substandard residential unit or returning an historic residential unit to a state of utility and conformance with applicable building codes, through repair or alteration, which allows occupancy for residential use.

"Residential lot"

means any parcel of land created with the intention that it will be used for the development of a dwelling unit.

"Residential project" or "project"

means any project involving the construction of two or more dwelling units at one location and requiring the issuance of a building permit, including in the aggregate all dwelling units or residential lots for which discretionary approvals have been applied for from or granted by the City.

"Special needs housing"

means housing for certain disadvantaged groups, including, but not limited to, seniors, disabled and homeless persons or families.

"Zoning code"

means the zoning code of the City, as it may be amended from time to time.

(Prior code § 6A-2-10)

§ 15.16.040 Application of affordable housing ordinance.

The requirements contained in this chapter shall apply to all new residential projects located within all existing or new areas of the City, except as noted in this section.

Southeast Area Specific Plan. For residential projects located on parcels designated for residential use by the southeast area specific plan ("SEASP"), in the event of a conflict between the provisions of this chapter and the SEASP, the applicable provisions of the SEASP shall control. However, residential projects located on parcels within the SEASP that are rezoned for residential use shall be subject to all requirements and provisions of this chapter.

Spring Lake Specific Plan. The affordable housing ordinance shall regulate development of affordable housing in the Spring Lake specific plan ("SLSP") except to the extent that a specific provision or regulation in the SLSP conflicts with the affordable housing ordinance. In this event, the SLSP shall control. Where the SLSP is silent or ambiguous, the provisions of this chapter shall apply directly for the purpose of interpretation, as appropriate.

Publicly Subsidized Projects. For residential projects that receive local, State or Federal subsidy with requirements and regulations differing from this chapter, the stricter provisions pertaining to affordability shall prevail.

(Prior code § 6A-3-10)

§ 15.16.050 General inclusionary housing requirements.

For-Sale Units in Areas within existing City limits and designated in the City's General Plan as Down-town Mixed Use, Corridor Mixed Use, and Neighborhood Commercial:

All new for-sale projects of 30 units or less shall be exempt from the requirements of this chapter.

For all new for-sale projects of 31 to 80 units, five percent of units shall be affordable to low income households.

For all new for sale projects of 81 or more units, 10% of units shall be affordable to low income households. However, for all new, for-sale projects that are developed to a level at least 95% of the allowable maximum density, five percent of units shall be affordable to low income households.

Calculations of required affordable units that result in a fraction of a unit shall be rounded up to the nearest whole unit.

For-Sale Units in All Other Areas of the City.

In projects of at least 10 units, developed at the maximum allowed density but at no less than 10 units per acre, five percent of new for-sale units shall be affordable to low income households.

In all other projects of at least 10 units in size, 10% of new for-sale units shall be affordable to low income households.

Calculations of required affordable units that result in a fraction of a unit shall be rounded up to the nearest whole unit.

The City Council may determine the need to implement an additional requirement for 10% of new for-sale units to be affordable to moderate income households, based on prevailing conditions in the housing market. Such a finding would require an amendment to this chapter as well as an amendment to the Spring Lake specific plan and Spring Lake affordable housing plan.

Multifamily Rental Units in Areas Within Existing City limits and Designated in the City's General Plan as Downtown Mixed Use, Corridor Mixed Use, and Neighborhood Commercial.

Multifamily rental projects of 30 units or less shall be exempt from the requirements of this chapter.

For all multifamily rental projects of 31 to 80 units, five percent of units shall be affordable to low income households.

For all multifamily rental projects of 81 or more units, 10% shall be affordable to low income households. However, for new, multifamily rental projects that are developed to a level of at least 95% of the allowed maximum density, five percent of units shall be affordable to low income households.

Calculations of required affordable units that result in a fraction of a unit shall be rounded up to the nearest whole unit.

Multifamily Rental Units in All Other Areas of the City.

10% of all multifamily rental units shall be affordable to low income households.

These requirements shall apply to all multifamily rental projects of at least 20 units. Projects with fewer than 20 units are exempt from affordable housing requirements. Calculations of required affordable units that result in a fraction of a unit shall be rounded up to the nearest whole unit.

Subsections A and C of this section shall expire and be of no further force and effect on the later of: (1) two years from the effective date of Ordinance No. 1662, which enacts this subsection E; or (2) the date upon which the City has issued building permits for a total of 400 residential dwelling units (including for-sale and multifamily units) after the effective date of Ordinance No. 1662, in areas designated in the City's General Plan as Downtown Mixed Use, Corridor Mixed Use, and Neighborhood Commercial. Upon the expiration of subsections A and C, the requirements set forth in subsection B shall apply to all for-sale projects in the City, regardless of location, and the requirements set forth in subsection D shall apply to all multifamily projects in the City, regardless of location, except that any residential projects located in areas within existing City limits and designated in the City's General Plan as Downtown Mixed Use, Corridor Mixed Use, and Neighborhood Commercial for which the City has accepted a complete application for development entitlements prior to the date on which subsections A and C expire, shall be subject to the requirements of subsections A and C.

(Prior code § 6A-3-20; Ord. No. 1662 § 1, 2020)

§ 15.16.060 Inclusionary housing agreements.

The inclusionary housing agreement or regulatory agreement, is the means by which the City ensures that a residential project complies with the applicable affordable housing requirements. An applicant shall enter into a written inclusionary housing agreement with the City that specifically sets out the manner in which affordable housing obligations will be met under the terms of this chapter.

The inclusionary housing agreement shall be executed by the applicant and the City. The applicant's proposed tentative map will be subject to the conditions of the inclusionary housing agreement. The inclusionary housing agreement shall be completed and signed prior to approval of the applicant's final map. The agreement shall contain all the applicable information identified in the agreement checklist provided in this section.

This agreement must include an acknowledgment that the applicant received a copy of the affordable housing ordinance. Moreover, the agreement must obligate the applicant to provide a copy of this agreement to anyone to whom the subject residential lots or units are transferred or sold.

The inclusionary housing agreement shall provide assurances satisfactory to the City Attorney, Community Development Director, housing specialist and City Manager of the applicant's obligation and capacity to meet the affordable housing obligations under this chapter. The inclusionary housing agreement shall also include all applicable and necessary information and obligations including, but not limited to, those items listed in the agreement checklist below. A memorandum of the inclusionary housing agreement shall be recorded with the Yolo County Recorder's office.

Agreement Check List.

The inclusionary housing agreement shall contain the following information:

Location, zoning designation and ownership of the residential project;

ii.

The number of affordable dwelling units that the applicant is responsible to provide at each income level;

iii.

The exact location of the affordable dwelling units (i.e., identify specific lots for affordable for-sale units and site or parcel for multifamily rental projects);

iv.

The dwelling unit mix and square footage of the affordable dwelling units as compared to dwelling unit mix and square footage of the market-rate units;

Term of affordability for the affordable dwelling units;

vi.

Scheduling and phasing of construction of affordable dwelling units;

vii.

Identification of applicant-funded subsidy or financial assistance, if any, for affordable for-sale units;

viii.

Affirmative marketing plan that ensures outreach to income-eligible households regarding the availability of affordable dwelling units. Such affirmative marketing shall at least include advertising in the local newspaper and sending notices to local government and nonprofit agencies that serve very low and low income persons and families. The City shall maintain an updated list of these agencies;

ix.

Specify if any or all of the affordable dwelling units will be special needs housing for seniors, disabled, homeless persons or other special needs population and, if so, the unique features or services that are appropriate for that special needs population. The City will participate in securing funding for those projects that provide special needs housing units. The City's special needs housing demand will be addressed as guided by the housing element, and based on any new information regarding increased need or demand for special needs housing as it becomes available from the census or other sources;

Detailed description of for-sale affordable units, if different than market-rate units, including floor plan and list of amenities and features of the unit.

In addition, the inclusionary housing agreement shall include the following terms:

Assurances, to the extent feasible, that the affordable dwelling units will be constructed concurrently with, or prior to, market-rate units in the residential project. In phased developments, inclusionary units may be constructed and occupied in proportion to the number of units in each phase of the residential project. If, as approved by the City, the affordable housing obligation is proposed to be satisfied by land dedication or by a separate third party development agreement (such as an affordable housing developer) and it is not feasible to develop the affordable units prior to or concurrently with the market-rate units, the agreement must identify the specific residential lots on which the affordable units will be developed. Developers of for-sale residential projects who construct the required affordable units concurrent with their market-rate development shall receive an automatic 100% waiver of all building plan check fees (not impact fees) for the affordable units (this excludes re-inspection fees);

ii.

Affordable rental dwelling units shall be dispersed throughout the residential project and shall be visibly indistinguishable from market-rate units within any project;

iii.

Inclusionary housing agreements for rental residential projects shall include the requirement that the project will be subject to the City's affordable housing monitoring program to ensure ongoing compliance with the affordable housing obligations set forth in this chapter and the inclusionary housing agreement, including payment of an annual monitoring fee (the amount of the fee is to be determined by the City based on estimated cost to monitor the affordable housing units, and shall be stated in the City's "Affordable Housing Monitoring Program Policies and Guidelines"). The inclusionary housing agreement for a rental residential project shall also include the provisions required by Section 15.16.130 of this chapter;

iv.

Mechanisms for reservation, protection and disclosure of affordable lots for projects. Description of language in disclosure documents for use by real estate agents, and visible and prominent signage at residential projects advertising the availability of affordable dwelling units.

If the applicant is proposing to meet the affordable housing obligation by land dedication, then the inclusionary housing agreement shall contain the following additional information:

Location and description of dedicated site and the residential lot(s) contained therein;

ii.

Description of physical suitability, economic feasibility, General Plan designation and zoning, infrastructure, frontage improvements and utility connections available at the dedicated site sufficient to allow for the development of the affordable dwelling units;

iii.

Number of dwelling units that may be developed on the residential lots sufficient to meet the affordable housing obligation;

iv.

Number of dwelling units at each income level (i.e., very low, low or moderate income) to meet or exceed land dedication affordability requirements.

If the requirements of this chapter will be met in whole or in part through the payment of in-lieu fees, the inclusionary housing agreement shall include the amount and timing of payment of any in-lieu fees to be paid as a condition of the project.

(Prior code § 6A-3-30)

§ 15.16.070 Outreach and marketing requirements.

Preferences. The City may choose to establish preference categories for the inclusionary units. Possible preferences could include the following:

Persons who have been displaced by a project in Woodland;

Persons who work for the City or for the Woodland joint unified school district;

Persons who live or work within the City; and

All other income-eligible persons.

Outreach and Marketing.

Affordable Housing Marketing Plan. Prior to marketing the inclusionary units, the developer shall submit an affordable housing marketing plan to the City for approval. The affordable housing marketing plan shall outline the developer's plan to identify qualified purchasers (in the case of for-sale projects) or renters (for rental projects) for affordable units throughout the marketing period of a residential project. Substantial evidence shall be submitted to the City that establishes, to the City's reasonable satisfaction that the developer complied with the submitted affordable housing marketing plan and affirmatively marketed the units throughout the relevant marketing period. The affordable housing marketing plan shall include, but not be limited to, the following:

Advertise the availability of the affordable units by placing in newspapers of general circulation in Yolo County and the greater surrounding region no less than eight advertisements, of which no less than three shall be in the Daily Democrat and at least two shall be in a publication with a regional scope. At least one advertisement shall be in a language other than English, such as Spanish. The advertisements in the Daily Democrat shall be at least 16 square inches. In the event these publications are defunct or space is not available, the Community Development Director shall designate comparable alternative advertising. Advertising shall be required for each release of affordable housing units;

No later than the date of issuance of a building permit for the units, provide written notice to a list of housing organizations and other agencies serving low and very low-income persons and families available from the City informing these organizations of the availability of the affordable units, and requesting that these organizations assist in publicizing the availability of the affordable units to their members and clients;

Place a sign on the site of the residential project advertising the availability of the affordable units and providing contact information throughout the marketing period. This information can be integrated into the primary project sign or included on a separate stand-alone sign with comparable visibility. To the extent possible without obstructing necessary construction activity, the sign described shall be oriented, formatted and situated in such a manner that it is visible to the maximum number of pedestrians and drivers on the nearest public street;

Advertise in such other mediums, such as the internet, as is reasonably necessary to affirmatively market the affordable units.

Because of the high demand for affordable for-sale units, a lottery system shall be used by the City or the developer to select potential buyers.

Such a lottery or alternative selection process shall be conducted in a fair, unbiased, and nondiscriminatory manner, if possible by a third party agreed upon by both the City and the developer. Employees of developers and their families shall not be given preferential treatment in the marketing of the affordable units or in the selection of qualified purchasers.

To enter into the lottery, the developer must ensure that the affordable units will be completed within 180 days from the contract date. Extensions may be granted by the Community Development Director for delays beyond the control of the developer such as weather.

(Prior code § 6A-3-40)

§ 15.16.080 Standards applicable to multifamily rental units.

Standards applicable to multifamily rental projects shall be consistent with the provisions specified in Section 15.16.050 C and D.

Term of Affordability. All affordable rental units constructed on-site shall be permanently affordable.

Requirements for Construction. The affordable units shall not be segregated from the market-rate units. Clustering of affordable units is allowed only if required to facilitate the construction of the project. A developer may meet the residential project's affordability obligation by either designating specific individual units as affordable units or using a system of "floating units" where the affordable units may change. However, in either option, the residential project must always contain the required number of inclusionary units. The developer shall indicate the preferred option to the City as part of the implementation of the City's affordable housing monitoring program guidelines.

(Prior code § 6A-4-10; Ord. No. 1662 § 2, 2020)

§ 15.16.090 Incentives available—Density bonus.

Purpose. The purpose of this section is to establish procedures for implementing state density bonus and incentive requirements, as set forth in California Government Code Sections 65915 through 65918 (as may be amended).

As a matter of right for qualified projects, a developer shall be eligible for density bonuses, incentives and concessions, waivers or reductions to development standards, and parking ratios as permitted under Government Code Section 65915, et seq., for on-site construction of affordable units, senior citizen housing developments, residential care facilities, lower income student housing, and housing for transitional foster youth, disabled veterans, or homeless persons, or as otherwise eligible under State law.

Required Information. A developer entering an agreement pursuant to Government Code Section 65915 to utilize density bonus or other incentives available for a qualifying housing development project shall be subject to the following requirements:

The applicant for a density bonus, incentive, concession, waiver, and/or parking ratio shall submit the request to the Director of Community Development in conjunction with the application for the planned development, design review, or other application necessary for the housing development.

The Community Development Director or designee shall notify the applicant whether the application is complete, consistent with the requirements of Government Code Section 65915.

Any completeness determination under this section shall be based on the development project proposed at the time the application is deemed complete. The decision makers shall adjust the amount of density bonus, incentives, waivers, and parking ratios awarded pursuant to this section based on any changes to the project during the course of development.

Submittal Requirements. The applicant shall submit the items listed below for any density bonus, incentive, concession, waiver, and/or parking ratio requested, in addition to and in conjunction with the submittal requirements for the housing development application:

Density Bonus Project. A detailed description of each requested density bonus, including:

The density and maximum number of dwelling units possible under the existing zoning without a density bonus.

The percentage increase and number of dwelling units requested above the maximum allowable density as determined by Government Code Section 65915(b), (c), (f), (g), (h), and (v), Government Code Section 65195.5, or successor provisions.

The number and percentage of dwelling units proposed by income level, or other method of eligibility in Government Code Section 65915.

Any proposed occupancy restrictions, such as restrictions to occupancy by seniors or to special needs tenants, and whether the units are proposed to be offered for sale or for rent.

The method proposed to guarantee the proposed affordability levels, such as proposed deed restrictions.

Concessions and Incentives. If the applicant requests concessions or incentives, as defined in Government Code Section 65915(k) and described in Government Code Section 65915(d) (as may be amended), the application shall include:

A detailed description of the requested concessions or incentives.

All documentation the applicant wishes to rely on to show how the incentive or concession would result in identifiable and actual cost reductions necessary to meet affordability levels as opposed to the project without concessions or incentives.

Waivers and Reductions of Development Standards. If the applicant requests a waiver or reduction of any development standard based on an assertion that the development standard physically precludes the construction of a qualifying affordable housing development per California Government Code Section 65915(e), include the following:

A detailed description of the requested waiver or reduction of development standards.

All documentation the applicant wishes to rely on to show how the development standards physically preclude the construction of the qualified affordable housing development.

All documentation the applicant wishes to rely on to show that the waiver or reduction would not have a specific adverse impact, as defined in California Government Code Section 65589.5(d)(2), upon health, safety or the physical environment, including proposed mitigation or avoidance measures.

Parking Ratios. If the applicant requests parking ratios pursuant to California Government Code Section 65915(p), then include the following:

The requested parking ratio.

Information on the number of dwelling units and number of bedrooms in each dwelling unit.

If the application requests parking ratios per California Government Code Section 65915(p)(2) or (3), evidence to show the proposal meets the criteria in those sections, including the distance to the nearest major transit stop, information on access to and any impediment to that transit stop from the housing development, information on the service provided at the transit stop, paratransit service available and its frequency, and any occupancy restrictions proposed.

Response to Criteria. The applicant must provide citations to the legal standards and criteria by which the density bonus, concession, incentive, waiver, reduction in development standards, or parking ratio is requested and an explanation, evidence, and findings showing how the applicant contends the proposal meets the applicable standards and criteria.

Fees. Applicant must pay all fees as then established by resolution of the City Council.

The City shall not charge a monitoring fee to ensure continued affordability of a housing development except as provided in Government Code Section 65915.3.

If a qualifying density bonus development project includes a childcare facility, as defined in Government Code Section 69515(h), that is located on or adjacent to the development project, the following conditions apply, unless the City makes a written finding that the City has adequate childcare facilities:

The City shall grant either:

An additional residential density bonus equal to the amount of square feet in the childcare facility; or

An additional concession or incentive that significantly contributes to the economic feasibility of the construction of the childcare facility.

The City, as a condition of approving the housing project, shall require:

The childcare facility shall remain in operation for a period of time that is as long or longer than the period of time during which the density bonus units are required to remain affordable, pursuant to Government Code Section 65915(c); and

The percentage of children from very low, low and moderate-incomes who attend the childcare facility must be equal to or greater than the percentage of housing units that are required for very low, low and moderate-income households pursuant to Government Code Section 65915(b).

Bonus incentives which the City may agree to provide include, but are not limited to, the following:

Use of Federal, State, or local affordable housing funds to subsidize the cost of the qualifying project.

Waiver or reduction of City building permit, plan check, and inspection fees (excluding re-inspection fees).

Deferral of City development impact fees until the issuance of a certificate of occupancy for the qualifying project.

Reduction of local zoning and development standards that indirectly increase housing costs, including, but not limited to, off-street parking requirements, minimum square footage, height limitations, or setback requirements.

Construction by the City of such public improvements as streets, sewers and sidewalks, street name and traffic signs, water mains, storm drains, and street lights in association with the qualifying project.

Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.

Application Procedures.

Site Plan/Design Review. Site plan and design review by the Planning Commission shall be required for projects involving bonus incentives, density bonuses, incentives, concessions, waivers, or parking ratios. Any special conditions of the City Zoning Ordinance residential and commercial land use tables pertaining to the project shall also apply.

Regulatory Agreement. As required by Chapter 15.16 of the City Code (Affordable Housing), the City and developer shall execute a regulatory agreement (inclusionary housing agreement) ensuring compliance of the project with all applicable provisions and affordability restrictions as required under Chapter 15.16 of the City Code and this section, or other applicable affordable housing requirements (such as the Spring Lake Affordable Housing Plan). This agreement shall be recorded with the Yolo County Recorder's office. Affordable units in the qualifying project shall remain affordable and available to qualified persons and families for the term required by the affordable housing ordinance and Government Code Section 65915, but in no case less than 30 years. Moderate-income units located within a condominium project must be affordable and available to qualified persons and families for at least 10 years.

Additional Conditions. In addition, reasonable conditions may be imposed to assure continued availability of such housing as very low, low, or moderate-income housing.

Required Findings.

The decision maker shall review the density bonus request and may approve, approve with conditions or modifications, or deny the request based on the applicable standards and criteria found in the State Density Bonus Law. The decision maker shall adopt findings supporting the decision.

If the application qualifies for a concession or incentive, the decision maker shall grant the concession or incentive unless it makes a written finding, based upon substantial evidence, of any of the following, or other criteria established by State law:

The concession or incentive does not result in identifiable and actual cost reductions, consistent with California Government Code Section 65915(k), to provide for affordable housing costs, as defined in California Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in California Government Code Section 65915(c).

The concession or incentive would have a specific, adverse impact, as defined in California Government Code Section 65589.5(2)(d), upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low-income and moderate-income households.

The concession or incentive would be contrary to State or Federal law.

Definitions. For purposes of this section, unless otherwise apparent from the context, certain words or phrases used in this section are defined as follows:

"Affordable unit"

means an ownership or rental dwelling unit affordable to households with extremely low, very low, low, or moderate incomes as published periodically by HCD for households in Yolo County or equivalent as approved by the Community Development Director. Calculations for the required affordable housing resulting in fractional units shall be rounded up to the next whole number.

"Concession or incentive"

means any of the following:

A reduction in site zoning and development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Health and Safety Code Division 13, Part 2.5 (commencing with Section 18901) to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in Government Code Section 65915(c).

Other regulatory incentives or concessions proposed by the developer or the city that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in Government Code Section 65915(c).

"Density bonus"

means a density increase over the otherwise maximum allowable gross residential density as of the date of application by the applicant or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density.

"Dwelling unit"

means a dwelling designed and intended for occupancy by a household.

"Housing development"

means the construction of five or more new residential dwelling units, including mixed-use developments, the addition of five or more residential dwelling units to an existing building or buildings, and the remodeling of a building or buildings containing five or more residential dwelling units. For the purpose of establishing the minimum number of five dwelling units, density bonus units shall be excluded.

"Income" (very low, low, or moderate)

means an annual income of a household that does not exceed the amounts designated for each income category as determined by HCD.

"Maximum allowable residential density"

means the density allowed under the zoning ordinance and land use element of the general plan, or, if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail.

"Specific adverse impact"

means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific adverse impact upon the public health or safety.

"Waiver"

means the deletion or reduction of any zoning and development standards that would otherwise have the effect of physically precluding the construction of a development identified and permitted in this section.

"Zoning and development standard"

includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking requirement that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation, as specified in Government Code Section 65915(o)(1).

(Ord. 1734, 2/18/2025)

§ 15.16.100 Procedure for determining affordable rent.

The method for calculating the affordable rent for an inclusionary unit is shown in this section. This method shall apply to both low and very low income inclusionary units. The Community Development Department shall review these assumptions and procedures annually and make revisions as necessary.

The Community Development Department will calculate the initial affordable rents for a residential project at the time that the units will be marketed and made available for rent. The developer is to provide information on the utilities that will be included in the rent and the utilities for which the tenants will be responsible (including the specific type of service).

The following procedure will be used for determining affordable rent:

Calculate Income Available for Housing.

Determine the Family Size Appropriate to the Unit. For purposes of this calculation, "family size appropriate to the unit" means adjusted for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, five persons in the case of a four-bedroom unit and six persons in the case of a five-bedroom unit.

Determine the household annual income maximum to use for the affordable rent calculation based on the appropriate household size using the current area median income figures for Yolo County as published by HUD. For a very low income unit, the figure for 50% of area median income shall be used. For a low income unit, the figure of 80% of area median income shall be used.

Calculate the amount of monthly income available for housing costs by dividing the maximum household annual income by 12 and then multiplying the maximum household monthly income figure by 30%. The resulting figure shall be the household monthly income available for housing costs.

Estimate Annual Housing Costs. The household allowance for utilities will be estimated based on the utility costs as shown on the current "Allowance for Tenant-Furnished Utilities and Other Services" table prepared by the Yolo County housing authority, using the applicable unit size and unit type (townhouse, garden apartment or high rise). The costs used will be based on the specifications of the particular unit and the utilities provided by the property owner, for example gas or electric for heating, gas or electric for cooking, etc. Utility tables are updated by the Yolo County housing authority every year, and shall be provided by the Community Development Department to developers of rental residential projects in accordance with the City's affordable housing monitoring program. The maximum rental rates of affordable units shall be adjusted as necessary based on changes to these utility tables. With the approval of the Community Development Director, a property owner may provide a utility survey, verified by the City, in place of the Yolo County housing authority's utility tables.

Determine Affordable Rent. Affordable rent for an inclusionary unit is determined by subtracting applicable utility costs from the household monthly income available for housing costs. Current affordable rent levels are reviewed and, if necessary, updated by the Community Development Department at least every year, and shall be provided to developers of rental residential projects in accordance with the City's affordable housing monitoring program requirements. The maximum rental rates of affordable units shall be adjusted as necessary based on changes to household utility allowances or Yolo County area median income levels.

(Prior code § 6A-4-30)

§ 15.16.120 Tenant eligibility requirements for affordable rental units.

Minimum Household Size. The minimum size of any household occupying an affordable rental unit shall be no less than one person per bedroom.

Maximum Income Limitation. Households renting affordable units shall have incomes that do not exceed 50% (very low income household) or 80% (low income household) of the current area median income for Yolo County as adjusted for household size.

Primary Residence. Eligible households must certify that the unit will be used as a primary residence. Subletting of affordable units is not allowed.

Rental projects shall be monitored every year to review tenant incomes and rents. The Community Development Department shall mail letters and forms to all property owners requesting information related to the affordable units, the rents charged, and the current tenants. The project owner is responsible for providing income certification forms (in a format either provided by or approved in advance by the City) to the applicable tenants and returning the completed forms to the City as required by the City's affordable housing monitoring program policies and procedures.

The Community Development Department shall review the information submitted for each residential project to make sure that the project is in compliance with its regulatory agreement. Staff will notify the project owner of any discrepancies and establish the best practice for bringing the residential project into compliance with the applicable requirements of its regulatory agreement in the timeliest manner possible. For example, the project owner may be required to rent out available vacant units within the residential project as affordable units, or rent out other units as they become available as affordable units, in order to meet the affordable units' requirement for the residential project.

(Prior code § 6A-4-50)

§ 15.16.130 Monitoring and compliance requirements for rental projects.

Each owner of multifamily rental residential projects shall enter into an inclusionary housing agreement (regulatory agreement) with the City for each residential project that contains units with affordability restrictions. As a provision of this chapter as well as the regulatory agreement, the Community Development Department will be responsible for tracking and monitoring all of the City's inclusionary housing units. This includes maintaining a database of all units as well as files with the required regulatory agreements recorded against each property.

Details on the City's affordable housing monitoring regulations and guidelines are outlined in the "affordable housing monitoring program policies and procedures" document, which is available from the Community Development Department. Owners of multifamily rental residential projects that are subject to the requirements of this chapter are required to pay an annual monitoring fee (the amount of the fee is to be determined by the City based on estimated cost to monitor the affordable housing units).

For residential projects that receive a State or Federal housing subsidy and are, thus, subject to applicable regulatory agreements and requirements pertaining to each subsidy, these regulatory agreements shall supersede the monitoring requirements outlined in this section.

Multifamily Rental Residential Project Monitoring Requirements. The monitoring requirements of each regulatory agreement between the owner and the City shall include all the rental restrictions listed in this chapter and in addition shall require the following:

Owner shall affirmatively market the rental units by sending advertisements describing the affordable units to local newspapers and to the list of local nonprofit and government housing organizations and agencies that serve very low and low income persons and families;

Owner shall comply with all fair housing laws and not discriminate based on race, ancestry, gender, religion, color, age, national origin, marital status, familial status, sexual orientation, source of income and disability;

Owner shall not discriminate based on any government rental subsidy, including, but not limited to, HUD Section 8 assistance. Tenants may utilize Section 8 vouchers to assist in renting inclusionary units; however, the rent levels collected for inclusionary units occupied by tenants using Section 8 vouchers shall remain at the affordable level determined pursuant to Section 15.16.110 of this chapter;

Agree to Rent Affordable Units to Qualified Income-Eligible Households for a Lease Term not to Exceed One Year. At the end of each lease term, the lease may be renewed for up to one year once the owner or manager has re-certified that the household income of the affordable unit remains eligible to the restricted income level of the unit. No household shall be required to terminate its tenancy from such affordable unit absent a showing of good cause. If a very low income household increases its income so that it no longer qualifies as a very low income household during its tenancy, it shall be permitted to remain in the affordable unit as long as its income does not exceed the low income limitation (i.e., 80% of AMI). At vacancy, such unit shall be rented to an eligible very low income household and the affordable rent level for a very low income household, unless the affordable unit requirement has been met by renting other vacant units at the appropriate affordable rent level.

The Community Development Department reviews the information submitted for each residential project to make sure that the project is in compliance with its regulatory agreement. Staff will notify the project owner of any discrepancies and establish the best practice for bringing the residential project into compliance with the applicable requirements of its regulatory agreement in the timeliest manner possible. For example, the project owner may be required to rent out available vacant units within the residential project as affordable units, or rent out other units as they become available as affordable units, in order to meet the affordable units requirement for the residential project.

(Prior code § 6A-4-60)

§ 15.16.140 Standards applicable to for-sale projects.

Standards applicable to for-sale projects shall be consistent with the provisions specified in Section 15.16.050 A and B.

Term of Affordability. For-sale units shall be affordable for the longest feasible time but not less than 10 years. This affordability requirement of at least 10 years for affordable for-sale units will be reset at each transfer of title upon re-sale to a qualified low income buyer, as outlined in Section 15.16.170 of this chapter.

Requirements for Construction.

Number of Bedrooms.

It is the goal that the affordable units "blend in" with the market rate units, which can be achieved through providing a variety of elevations and unit mixes within the residential project. Affordable for sale units may be smaller in square footage than the market rate units in a residential project that trigger the affordable housing obligation to a minimum unit living area of 850 square feet. However, a mix of bedroom numbers and greater square footage among for sale homes shall be implemented whenever feasible in order to accommodate larger low-income households.

Except as provided for elsewhere in this section, there shall be an average of three bedrooms provided per affordable unit, and the developer can provide more but not less than the average target, unless it can be clearly demonstrated that a different average is required in order for the units to be sold in the affordable marketplace.

A developer of a for-sale residential project may request an exemption from the requirements of this subsection if, based upon substantial evidence and financial information, such a mixture would be infeasible to the satisfaction of the Community Development Director.

Affordable units shall not be clustered but be dispersed throughout the residential project and be comparable in infrastructure (including sewer, water, and other utilities) and construction quality to the market-rate units. A cluster is considered to be four or more units adjacent to each other. Duplexes shall not be allowed as the only affordable units, unless all units in the development are duplexes. The developer shall submit, along with a map review fee, proposed locations for affordable units with the tentative map for approval by the City. If the developer desires to alter the approved locations of the affordable units, the requested alterations shall be submitted, along with a map review fee, with the final map. The map review fee shall be set by resolution of the City Council, as amended from time to time.

Affordable units must be visibly indistinguishable from the exterior in comparison with surrounding market-rate units. Affordable for-sale units may have different interior finishes and features than market-rate units so long as the interior features are durable, of good quality, and consistent with contemporary standards for new housing.

Criteria for Size and Design of Units to Meet Special Needs Housing.

For residential projects that include units that meet categories of special needs housing, the criteria for size and design of these units will be addressed by the City on a project-by-project basis as guided by the housing element, and based on any new information regarding increased need or demand for special needs housing as it becomes available from the census or other sources. The City will participate in securing funding for those projects that provide special needs housing units in a greater amount of special needs units than required by State or Federal law.

Builders of for-sale projects shall comply with applicable State and Federal laws regarding accessible design features for persons with disabilities. Homebuyers of affordable units shall be offered "universal design" or "visitability" features to be incorporated into the construction of the unit by the builder. Such modifications shall be paid for by the homebuyer, independent of and in addition to the amount calculated as the affordable purchase price of the unit. Information on "universal design" and "visitability" building features is available from the Community Development Department upon request.

(Prior code § 6A-5-10; Ord. No. 1662 § 4, 2020)

§ 15.16.150 Procedure for sale of affordable units.

Initial Estimate of Affordable Purchase Prices. Prior to entering into an inclusionary housing agreement, at the request of the developer of a for-sale residential project, the Community Development Department will assist developers in estimating the calculations of maximum affordable purchase prices based on the assumptions provided in this section. These estimations shall only be for the purpose of projecting the feasibility of the project and shall not be binding, as prevailing conditions in the housing market and fluctuations in interest rates may affect the final calculation of affordable purchase prices. The timing and procedure for final calculation of affordable purchase prices shall occur pursuant to the provisions of this section.

Method for Sale of Affordable Units. The method for the sale of affordable units is shown in this subsection. The Community Development Department shall review these assumptions and procedures annually and make revisions as necessary:

Units Appraised at Fair Market Value. At the time that the unit will be marketed and made available for sale, the fair market value of the unit will be determined. This determination will be made by a qualified appraiser who will be selected by the Community Development Director and paid for by the developer.

Calculation of Affordable Maximum First Mortgage. The sale of affordable units will be implemented by a "silent second" mortgage program by the City. After the fair market value of the unit has been determined, the City will calculate the affordable maximum first mortgage amount for a qualified low income purchaser of the unit. The following procedure will be used for determining the affordable maximum first mortgage amount:

Determine the family size appropriate to the unit. For purposes of this calculation, "adjusted for family size appropriate to the unit" means adjusted for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, five persons in the case of a four-bedroom unit and six persons in the case of a five-bedroom unit.

Determine the household income available for the affordable maximum first mortgage calculation for a low income household based on the appropriate household size using the current HUD area median income figures for Yolo County. The calculation of available household income should be based on 80% of area median income for the appropriate household size.

Calculate the amount of income available for housing costs by multiplying the income figure by 30%. For the purpose of determining the affordable purchase price, the cost of utilities, property taxes, insurance, primary mortgage insurance, maintenance and repair costs, and like expenses are not required to be included in the calculation. Homeowners' association dues may be included in the calculation of affordable purchase price if the Community Development Department determines that such costs would place a substantial burden on the low income homeowners' ability to purchase a home and make monthly mortgage payments.

Limitation of Down Payment Requirement. For purposes of this calculation, required down payments for low income purchasers shall be limited to no more than five percent of the purchase price. The developer or seller may not require a buyer to make a larger down payment but a buyer may elect to make a larger down payment in order to reduce the amount of the first mortgage. This limit to the down payment requirement is intended to provide greater flexibility for low income home-buyers who might find it difficult to provide a higher down payment amount.

Calculation of "Silent Second" and Regulatory Agreement Equity Share. The "silent second" shall be in the amount of $1,000.00. A note and deed of trust, or other appropriate document, securing the silent second will be recorded and assigned to the City at the time of sale of each affordable unit. The promissory note and deed of trust, or other designated document, will remain a lien against the property, subordinate to the first mortgage. This note will have a 30-year due date which can be extended by the Community Development Director. The regulatory agreement recorded against the property shall include an equity share baseline in the amount of the difference between 95% of the purchase price (or purchase price minus down payment amount) and the amount of the affordable maximum first mortgage. The equity share shall be triggered and calculated at the sale of the affordable unit to a non-qualified purchaser or at a non-affordable price.

Payoff of the Silent Second and Regulatory Agreement Equity Share. The silent second may not be prepaid during its first 10 years, as long as the low-income purchaser occupies the unit as their primary residence during this period. The amount due to the City under the equity share provision of the regulatory agreement at the eventual payoff of the silent second or the sale of the affordable unit to a nonqualified purchaser or at a non-affordable price shall be the amount which bears the equal ratio to the fair market value at the time the silent second is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price. For example, if the original sales price was $200,000.00 and the original equity share baseline was $50,000.00, the ratio would be 25%. If the fair market value at the time of payoff were $400,000.00, the amount due the City would be $100,000.00, or 25% of $400,000.00. In another case, if the property rose in value to $250,000.00, the 25% ratio would dictate the payoff amount to the City to be $62,500.00.

Affordable Housing Fund. Funds received by the City through payoffs of equity share provisions of regulatory agreements will be deposited into the City's affordable housing fund. These funds may be used at the discretion of the Community Development Director to make additional affordable housing loans to income-qualified purchasers to facilitate the purchase of homes, to subsidize affordable multi-family projects, or for any other use to promote the development of affordable housing within the City of Woodland. Up to 10% of each year's income from the affordable housing fund may be used for administration and ongoing monitoring of loans made from the fund.

(Prior code § 6A-5-20)

§ 15.16.160 Homebuyer eligibility requirements for affordable units.

Maximum Income Limitation. Low-income households purchasing affordable units shall have incomes that do not exceed 80% of the current area median income for Yolo County as adjusted for household size. In the event that the developer or owner is unable to locate a qualified low-income household purchaser within 90 days, the developer shall pay the affordable housing in-lieu fee established by the City Council, such unit shall no longer be designated as an "inclusionary unit," and the unit shall be released from the terms of the inclusionary housing agreement.

Primary Residence Certification. Purchasers must certify that the home will be used as a primary residence.

Rental of Affordable For-Sale Units. In the event that the developer or owner is unable to locate a qualified household purchaser within 210 days after marketing an affordable unit in accordance with the approved marketing plan, the developer may lease the applicable unit while continuing a good faith effort to sell the affordable units. The applicable unit shall be rented to a low income household for a monthly rent that is consistent with the requirements for affordable multifamily units as set forth in Section 15.16.100 of this chapter. Any such lease shall be for a period not to exceed one year, and developer or owner shall continue to solicit potential buyers during the term of the lease, provided that the developer or owner shall not sell the property until the term of such lease is expired. Notwithstanding the foregoing, the owner or developer shall not lease the property under this section for a period of greater than two years, without the written agreement of the City. The owner or developer may be permitted to pay in-lieu fees to satisfy all or part of the developer's affordable housing obligation.

(Prior code § 6A-5-30)

§ 15.16.170 Resale requirements for affordable units.

Conditions of Owner-Occupancy Hardship.

For so long as the qualified purchaser (owner) owns the unit, the unit will be occupied solely by the owner and the owner's immediate family as the owner's principal place of residency. Notwithstanding the foregoing, however, the Community Development Director may authorize the owner to rent-out the affordable unit, for a cumulative period not to exceed one year, if the owner establishes to the Community Development Director's reasonable satisfaction that the owner-occupancy requirement would cause hardship to the owner because of:

Divorce or separation of the owner(s);

The extended absence from the affordable unit by the owner because of the serious illness or disability of the owner or a member of the owner's household or immediate family;

Absolute necessity for immediate relocation of the owner from the greater Sacramento area for purposes for the owners' employment; or

The owner's loss of employment.

The purpose of the foregoing limited exceptions to the owner-occupancy requirement is to allow the owner to recover from a temporary inability to occupy the affordable unit or to provide for the orderly disposition of the unit in cases of hardship, and is not intended to permit long-term rental of the unit. For these reasons, the term "hardship" shall be narrowly construed and a condition of hardship shall be considered to exist for the minimum possible time.

Procedure for Resale of the Affordable Dwelling Unit. In order to maintain the affordability of the for-sale affordable units the City shall impose the following resale conditions. No for-sale affordable units shall be offered for resale or resold other than in the manner provided herein until the owner or purchaser has owned the house for 10 years or longer:

Prior to advertising the availability of the for-sale affordable unit or otherwise offering the unit for sale, the owner shall provide the City with a notice of owner's intent to sell the unit. The notice shall indicate the location of the unit and the number of bedrooms contained in the unit. The notice shall provide the City a period of 30 calendar days after receipt of such notice (resale marketing period) to either:

Provide the owner with an active and current list of interested and qualified purchasers; or

Determine that no interested and qualified purchaser is available.

Following the receipt of such notice, the City shall either complete or require the owner to have completed an appraisal report to determine the fair market value of the unit. This appraised value will be used by the City to determine the seller's equity share provision obligation, equaling the amount which bears the same ratio to the fair market value at the time the note is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price. The City will also use the appraisal of the affordable unit to determine the amount of subsidy in the form of the assumed and possibly increased equity share provision that will be required by the subsequent qualified purchaser of the affordable unit.

Upon receipt of the notice of owner's intent to sell, the City shall also provide the owner with a disclosure form that must be completed by a prospective qualified purchaser and returned to the City. The primary purposes of the disclosure form shall be to:

Provide the City with information that the City will need to confirm that the prospective purchaser of the unit is a qualified purchaser; and

Ensure that the prospective purchaser of the unit is aware of the owner-occupancy and resale restrictions applicable to the affordable unit.

Within three days after executing any contract or agreement for sale of the affordable unit, the owner shall deliver to the City a copy of the contract or agreement, together with the completed and fully executed disclosure form and evidence supporting the prospective purchaser's gross income as shown on the disclosure form. The proposed sale shall be deemed approved unless the City, within 10 days after receipt of such information, provides notice to the owner either that:

The proposed sale does not comply with the provisions of this chapter; or

Additional information is required.

If the proposed sale is disapproved or if the City determines that additional information is required, the notification shall be accompanied by a statement of the reason(s) for that decision.

Resale to a Qualified Purchaser.

Each qualified purchaser shall be required to purchase the affordable unit with cash, a mortgage secured by a first deed of trust on the affordable unit, or a combination of the two.

At close of escrow the owner shall assign, and the qualified purchaser shall assume, the note, or other applicable document securing the City's silent second subsidy on the property. The 10-year occupancy requirement and restrictions on re-sale applied to the original qualified purchaser of the affordable unit shall be reset to the date the note or applicable document is assumed by the subsequent qualified purchaser. The subsequent qualified purchaser shall enter into a regulatory agreement with the City which shall be recorded against the property.

The City may provide an additional subsidy (if available) to increase the amount of the equity share provision of the regulatory agreement in order to allow the qualified purchaser to purchase the unit (i.e., increase the percentage of the purchase price which is represented by the equity share baseline).

The City shall subordinate its lien to any commercial lender providing a loan to enable the qualified purchaser to purchase the affordable unit, providing the amount of such loan does not exceed the purchase price for the affordable unit plus the qualified purchaser's actual share of closing costs and other related expenses.

(Prior code § 6A-5-40)

§ 15.16.180 Limited exceptions to resale requirements.

Inability to Identify a Qualified Purchaser.

In the event the owner or the City is unable to identify a qualified purchaser who is able to purchase the unit within the resale marketing period in compliance with the sales timelines of this chapter and the regulatory agreement, the City shall have the right to purchase the unit at the affordable purchase price. If the City decides not to purchase the unit, the owner may, with the prior written consent of the City, sell the unit to a non-qualified purchaser without regard to the purchaser's income. The owner's request to the City to sell to a non-qualified purchaser shall be accompanied by evidence establishing that the owner has actively and in good faith attempted to identify a qualified purchaser for the unit throughout the resale marketing period using affirmative marketing measures. "Affirmative marketing" means that the owner shall have continuously listed the property on the multiple listing service and shall have acted in good faith in responding to inquiries and offers from qualified purchasers.

In the event of an approved resale to a non-qualified purchaser due to the seller's and the City's inability to identify a qualified purchaser within the 10-year occupancy requirement, the seller shall be required to pay off the equity share provision of the regulatory agreement to the City at the close of escrow. The amount due to the City shall be the amount which bears the equal ratio to the fair market value at the time the equity share provision is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

Resale Necessitated by Hardship.

The owner may sell the unit to a non-qualified purchaser during the 10-year affordability period and pay off the equity share provision of the regulatory agreement to the City in full if the Community Development Director reasonably determines that the sale of the unit to a non-qualified purchaser is necessary due to circumstances of hardship, or "excluded transfers," which may include:

Financial hardship causing risk of default of the owner's first mortgage;

A transfer resulting from the death of the owner;

A transfer to the owner and his or her spouse as joint tenants;

A transfer resulting from a decree of dissolution of marriage or legal separation or from a property settlement agreement incident to such decree.

No excluded transfer shall be effective unless the City has received a written request to approve the excluded transfer not less than 30 days prior to the proposed date of transfer. Any such request shall be accompanied by documentation supporting the basis for the excluded transfer.

In the event of an approved resale to a non-qualified purchaser necessitated by the seller's circumstance of hardship within the 10-year occupancy requirement, the seller shall be required to pay off the equity share provision of the regulatory agreement to the City at the close of escrow. As previously stated, the amount due to the City shall be the amount which bears the equal ratio to the fair market value at the time the equity share provision is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

The City may record a default notice on any affordable unit. In the event of default, the City, in its discretion, may purchase the unit. In the event the City purchases an affordable unit pursuant to this subsection or subsection (A)(1), the City shall take reasonable steps necessary to maintain the affordability of the unit and identify a qualified purchaser. The City shall not maintain ownership and rent the affordable unit.

Resale after Close of 10-Year Occupancy Requirement.

The resale restrictions for affordable units shall be removed after a qualified purchaser has occupied the unit as their primary residence for at least 10 years. However, the silent second note will remain with the property secured by the deed of trust or other applicable document until either: (a) the unit is sold; or (b) the silent second becomes amortized and payable after 30 years per the provisions of this chapter, unless extended by the Community Development Director.

In the event that the affordable unit is resold at fair market value, the equity share provision of the regulatory agreement is due in full at the close of escrow. Again, the amount due to the City shall be the amount which bears the equal ratio to the fair market value at the time the equity share provision is paid off as the initial value that the equity share baseline had in relation to the original fair market sales price.

(Prior code § 6A-5-50)

§ 15.16.190 Monitoring and compliance requirements for for-sale units.

Single-Family Residential Project Monitoring Requirements. Affordable for-sale units will be monitored to make sure that the owners are complying with the occupancy requirement and are not subleasing the property. Certified or return-receipt mailings will be sent to the owners of affordable for-sale units at least once every two years with a form requesting the required certifications. In addition, the mailing should restate the restrictions regarding sale or refinancing of the property.

(Prior code § 6A-5-60)

§ 15.16.200 Alternatives to on-site construction of affordable units.

Alternative Means of Compliance. As an alternative to on-site construction of the affordable units as set forth in this chapter, the City may, at its discretion, permit the developer to satisfy the requirements of this chapter through one or more of the alternative means of compliance as described in this section.

Land Dedication.

A developer may be allowed to make an irrevocable offer of dedication to the City or its designee of sufficient land to satisfy the affordability requirement under this section, if either:

The developer demonstrates to the City Council that it is not feasible to develop the affordable dwelling units on site as part of the residential project; or

In the judgment of the Community Development Director, the developer's proposed land dedication would accomplish the objectives of this chapter.

Dedicated sites for residential projects shall meet the following criteria:

The dedicated site shall be a minimum of two acres unless the City agrees to a smaller site based on a special housing need.

The dedicated site shall be economically feasible to develop, of sufficient size to build the required number of affordable units and physically suitable for development of the required affordable units prior to the dedication of the land. The City may, at its discretion, accept a dedicated site that will provide a different housing type than would be required if the affordable units were constructed on site, if in the judgment of the Community Development Director such dedication would accomplish the objectives of this chapter.

The dedicated site shall also have appropriate General Plan designation and zoning to accommodate not less than the required number of units, be fully improved with infrastructure, frontage improvements (i.e., curb, gutter, walk), paved street access, utility (i.e., water, gas, sewer and electric) service connections stubbed to the property lines, and other such off-site improvements as may be necessary for development of the required affordable units or as required by the City.

The value of the dedicated site shall be equal to or greater than the in-lieu fee in effect at the date of dedication for the applicable residential development multiplied by the number of otherwise required inclusionary units within the residential development.

The City may approve, conditionally approve, or reject such offer of land dedication of any specific property. If the City rejects such an offer of land dedication, the developer shall be required to meet the affordable housing obligations by other means set forth in this chapter.

Density Credit. In determining the amount of land to dedicate to satisfy a developer's affordable housing obligation, the developer shall receive credit for the base density of the dedicated site (e.g., 20 units per acre if the dedicated parcel is zoned to require residential density of 20 units per acre or greater).

Development of Dedicated Land. Within one year from the date of conveyance of the dedicated land to the City, the City shall determine, at its discretion, whether the dedicated land will be:

Developed by the City to produce the required affordable dwelling units; or

Conveyed to an affordable housing developer approved by the City to produce the required affordable dwelling units. The City Council shall determine which affordable housing developer shall be conveyed the land required to produce the affordable dwelling units.

In-Lieu Fees.

The developer may be permitted to pay in-lieu fees to satisfy all or a part of the developer's affordable housing obligation if either:

The developer demonstrates to the City Council that it is not feasible to develop the affordable dwelling units on site as part of the residential project; or

In the judgment of the Community Development Director, the payment of in-lieu fees would accomplish the objectives of this chapter.

The payment amount of in-lieu fees shall be determined pursuant to an adopted fee schedule designating in-lieu fees for either or both for-sale affordable units and for rental affordable units, to be reviewed and revised as necessary on an annual basis. In the event a fee schedule has not been adopted, the City Council may allow payment of in-lieu fees upon review of the project's affordable housing plan and as memorialized in a documented agreement.

If the City determines that the developer may contribute in-lieu fees, the developer must pay such fees as calculated on a per unit basis prior to the issuance of building permits for the residential project. No building permit or certificate of occupancy shall be issued by the City until proof of in-lieu fees is provided.

Credits for Development of Off-Site Units. The developer may receive credit on a unit-for-unit basis toward satisfaction of the requirements of this chapter for the development of off-site affordable units by the developer or pursuant to an agreement between the developer and a third party affordable housing developer if the City Council finds that:

The off-site units will be sold or rented at or below the affordability levels that would be required by this chapter for the development of on-site affordable units as part of the market rate development receiving credit for its affordable housing requirements; or

The off-site affordable units will be produced and available for rental or sale sooner than would be required for the development of on-site affordable units; and

The off-site units will be subject to and will comply with all requirements of this chapter applicable to affordable units.

Combination of Methods to Provide Inclusionary Housing. The developer of a project may propose any combination of the requirements for the construction of on-site affordable units pursuant to this chapter and/or alternative options pursuant to this section in order to comply with the provisions of this chapter. Such proposals shall be made in and considered by the City as part of the developer's application for development entitlements, and approved by the City if the City Council finds that the combined construction of affordable units and/or alternative methods of compliance provide substantially the same or greater level of affordability and the amount of affordable housing is as required pursuant to this chapter.

(Prior code §§ 6A-7-10—6A-7-40; Ord. No. 1662 § 5, 2020; Ord. 1728, 12/17/2024)

§ 15.16.210 Administration of inclusionary housing program.

The Community Development Department shall be responsible for the implementation of this chapter. Guidelines implementing this chapter shall be maintained by the Community Development Department. Revisions to the guidelines necessary to comply with local, State and Federal law may be approved by the Community Development Director. Any other substantive revisions to the administration of the plan shall be made with the approval of the City Council affordable housing subcommittee.

(Prior code § 6A-6-10)

§ 15.16.220 Administrative review of adverse determinations.

Any applicant or other person who contends that his or her interests have been adversely affected by a determination in regard to this chapter or the guidelines prepared by the Community Development Department for the implementation of this chapter may appeal such determination to City Council by filing a written appeal with the City Clerk within 10 calendar days after the determination or requirement is made. Said appeal shall be accompanied by a filing fee as prescribed by City Council resolution. At its next regular meeting after the filing of such appeal, the City Council shall set a date for a public hearing on the matter and shall mail notice of the hearing at least 10 calendar days prior to said hearing.

The City Council may reverse or modify any such determination if it finds that the action under appeal does not conform to the provisions of this chapter or to the guidelines prepared by the Community Development Department for the implementation of this chapter.

(Prior code § 6A-6-20)

§ 15.16.230 Judicial review.

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 in this chapter.

(Prior code § 6A-6-30)

§ 15.16.240 Penalties and enforcement.

Any person violating any provision or failing to comply with any of the requirements of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable for each offense by a fine, or by imprisonment in the County Jail, or by both fine and imprisonment. Such person shall be deemed to be guilty of a separate offense for each and every day during any portion of which any violation of this chapter is commenced, continued or permitted and shall be punished as provided in this chapter.

In lieu of or in addition to the penalties prescribed above, the City may institute such other legal proceedings as it deems necessary and proper for the enforcement of the terms of this chapter, including, but not limited to, actions for specific performance, injunctive relief, or such other legal or equitable remedies as may be available under State or Federal law.

(Prior code § 6A-6-40)