The purpose of this chapter is to expand the affordable housing stock in proportion with the overall increase in residential units by establishing standards and procedures that encourage the development of extremely low to moderate-income housing and to assist in meeting the city's regional share of housing needs and implementing the goals and objectives of the General Plan, including the Housing Element and any applicable specific plans. The goals of this chapter are as follows:
A. 
To assure that the city is meeting its affordable housing goals by facilitating the production of dwelling units affordable to households of extremely low, very low, low, moderate, and workforce-income, and by providing funds for the development of extremely low, very low, low, moderate, and workforce-income housing;
B. 
To establish a means by which developers of residential projects can assist in increasing the supply of affordable housing. The affordable housing requirements contained in this chapter consider the impact of such requirements on housing construction costs and economic feasibility; and
C. 
To meet the current and future housing needs of the city by supporting the Housing Element goals of providing a range of dwelling units by type of unit, price, and location in the city and promoting equal access and opportunity to fair housing.
(Ord. 1242, 8-15-2023; Ord. 1254, 3-18-2025)
A. 
The requirements of this chapter shall apply to any development project comprised of ten or more dwelling units or residential lots within the City of Brea, including new construction and condominium conversions. All affordable units required by this chapter shall be sold or rented in compliance with this chapter and the city's guidelines implementing this chapter.
B. 
For a development project that is comprised of less than ten dwelling units but is or appears to be a part of a larger residential project, the number of dwelling units proposed for the larger project as a whole shall be used to determine the applicability. Same standards shall apply to multi-phased residential projects.
(Ord. 1242, 8-15-2023)
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
"Adjusted for household size appropriate for the unit."
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, six persons in the case of a five-bedroom unit, and seven persons in the case of a six-bedroom unit.
"Affordable housing cost."
The total housing costs, paid by a qualifying household, which shall not exceed a specified fraction of their gross income, adjusted for household size appropriate for the unit as defined and periodically updated by Cal. Health and Safety Code § 50052.5 for owner-occupied housing, and the affordable rent and utilities for rental units as defined by Cal. Health and Safety Code § 50053, as applicable. For workforce housing, the calculation applicable to a moderate-income household shall apply.
"Affordable housing trust fund."
The in-lieu fees and any equity share payment collected as a result of requirements of this chapter shall be deposited in the city's affordable housing trust fund to be used exclusively to develop and retain the supply of housing affordable to extremely low, very low, low, moderate, and workforce-income households.
"Affordable unit."
A dwelling unit that will be offered for sale or rent to an extremely low-income household, a very low-income household, a low-income household, a moderate-income household, or a workforce household at an affordable housing cost, in compliance with this chapter.
"Area median income."
The annual median gross income adjusted for household size in Orange County as determined by the United States Department of Housing and Urban Development (HUD), and published by the California Department of Housing & Community Development (HCD), in the Cal. Code of Regulations, Title 25, § 6932.
"Condominium conversion."
Converting an existing market rate condominium and apartments into affordable housing. Converted condominiums and apartments shall be offered for sale or rent to an extremely low-income household, a very low-income household, a low-income household, moderate-income household, or workforce-income household at an affordable housing cost, in compliance with this chapter.
"Density bonus."
As defined in Cal. Government Code §§ 65915 et seq.
"Extremely low-income household."
As published and periodically updated by HCD pursuant to Cal. Health and Safety Code § 50079.5.
"In-lieu fees."
A payment of a fee, pursuant to requirements of this chapter, in-lieu of providing the required affordable units on site.
"Land dedication."
A dedication of land to the city in-lieu of constructing affordable units within the residential project, pursuant to the requirements of this chapter.
"Low-income household."
As published and periodically updated by HCD pursuant to Cal. Health and Safety Code § 50079.5.
"Market rate unit."
Dwelling unit in a residential development that can be purchased or rented at market rates. These units are not considered to be affordable units.
"Moderate-income household."
As published and periodically updated by HCD pursuant to Cal. Health and Safety Code § 50093.
"Offsite construction."
The development of required number of affordable units at a site different than the site of the residential project.
"Phasing plan."
A detailed plan provided by a developer that outlines each segment or phase of construction including housing units and site improvements to be developed in a new residential project.
"Rehabilitation."
Improvement of a unit in substandard condition to a decent, safe, and sanitary level. Units are in substandard condition when, while they may be structurally sound, they do not provide safe and adequate shelter, and in their present condition endanger the health, safety, or well-being of the occupants.
"Residential project."
A subdivision, a development project, and/or a condominium conversion project resulting in the creation of ten or more residential lots or ten or more residential dwelling units.
"Total housing costs."
The total monthly or annual recurring expenses required of a household to obtain shelter. For a rental unit, total housing costs shall include the monthly rent payment and utilities paid by the tenant (excluding telephone and television). For an ownership unit, total housing costs shall include the mortgage payment (principal and interest), insurance, homeowners' association dues (if applicable), private mortgage insurance (if applicable), taxes, and utilities.
"Very low-income household."
As published and periodically updated by HCD pursuant to Cal. Health and Safety Code § 50105.
"Workforce-income household."
Households whose income is between 120% and 140% of the area median income for the Santa Ana-Anaheim-Irvine, CA HUD Metro FMR Area as published by the United States Department of Housing and Urban Development.
(Ord. 1242, 8-15-2023)
A. 
All residential projects subject to the requirements of this chapter shall provide affordable units as shown in Table 20.40.040A:
TABLE 20.40.040.A
AFFORDABLE UNIT REQUIREMENTS FOR RESIDENTIAL PROJECTS
Option
Total Percentage of Affordable Units Required
(minimum)1
Minimum Affordability Level of Required Units
1
5%
All required affordable units shall be sold or rented to extremely low-income households, at a cost affordable to such household.
2
10%
At least 7% of the total number of units in the residential project shall be sold or rented to very low-income households, at a cost affordable to such household. The affordability level of remaining 3% of the required affordable units are at the developer's discretion.
3
15%
At least 10% of the total number of units in the residential project shall be sold or rented to low-income households, at a cost affordable to such household. The affordability level of remaining 5% of the required affordable units are at the developer's discretion.
4
20%
At minimum, all required affordable units shall be sold or rented to moderate-income households, at a cost affordable to such household.
5
30%
At minimum, all the required affordable units shall be sold or rented to workforce-income households, at a cost affordable to such household.
1 of the total number of units in the residential project.
B. 
An applicant may request to deviate from the number and affordability level provisions required by this chapter if the proposed deviation provides substantially the same or greater level of affordability required and the same or greater number of affordable units required by this chapter. Such request requires an approval of a conditional use permit subject to the provisions of § 20.408.030 of this title.
C. 
Affordable units required by this chapter can be used to qualify for a density bonus under Cal. Government Code § 65915 (State Density Bonus).
D. 
Notwithstanding any other provision of this chapter, any residential project subject to this chapter that results in the displacement of existing affordable unit(s) shall be required to replace each displaced affordable unit at the same or greater level of affordability of the existing unit, in addition to providing the number of affordable units required by this chapter.
E. 
Any fractional units will be rounded up to a whole unit.
(Ord. 1242, 8-15-2023; Ord. 1254, 3-18-2025)
As an alternative to developing affordable units pursuant to this chapter, an applicant may satisfy requirements of this chapter through one of the following alternatives:
A. 
In-lieu fees. Applicants may choose to comply with the requirements of this chapter through payment of a fee, in-lieu of providing the required affordable units on site.
1. 
The method for calculation of the in-lieu fee per unit shall be determined by the following formula:
The product of the square footage of the average size unit in the proposed development multiplied by the median price per square foot of a home in the City of Brea based on market rate home sales in the last quarter immediately prior to drafting of the affordable housing agreement,
Minus
The product of the square footage of the average size unit in the proposed development multiplied by the median cost per square foot to construct the respective type of unit as shown on the most recent edition of the Building Permit Valuation Table in use by the Building Department.
2. 
The number of required units applicable to the in-lieu fee calculation shall be 5% of the total number of units in the residential project.
3. 
One-half of the in-lieu fees shall be paid prior to the issuance of a building permit for the project, with the remaining fees due prior to the issuance of a certificate of occupancy.
4. 
Fees collected in-lieu of developing affordable units pursuant to this chapter shall be placed in the City's Affordable Housing Trust Fund.
B. 
Offsite construction. At the discretion of the city, an applicant may satisfy the requirements of this chapter by developing the required number of affordable units at a site different than the site of the residential project.
1. 
The applicant must demonstrate that development of affordable units offsite would better address the city's Housing Element goals and policies.
2. 
The number of units to be developed offsite shall be consistent with the number of units required for the residential project.
3. 
Offsite affordable units shall be reasonably comparable to the non-affordable units in the residential project with respect to number of bedrooms, square footage, overall unit mix, appearance, finished quality, materials, and distribution.
4. 
Offsite affordable units shall be developed concurrently with the main project and certificate of occupancy will be contingent on final approval and inspection of the affordable units, unless an alternative schedule is approved by the city as part of the residential project's entitlement.
5. 
Offsite affordable units shall be located within the City of Brea.
6. 
Offsite affordable units shall be subject to the same requirements, standards, and procedures as onsite affordable units, unless otherwise noted in this subsection.
7. 
A development agreement is required for all offsite affordable unit construction projects.
C. 
Land dedication. At the discretion of the city, an applicant may satisfy the requirements of this chapter by dedicating land to the city in-lieu of constructing affordable units within the residential project.
1. 
The land to be dedicated must be free of any liens, and such land shall be conveyed to the city at no cost.
2. 
The applicant must disclose any and all encumbrances or easements on the title of the land, and all encumbrances and easements must be factored into the estimated value of the land dedication.
3. 
The land to be dedicated must have improvements required to accommodate housing, such as infrastructure and services.
4. 
The land to be dedicated must be free of any hazardous materials. If there were any hazardous materials previously contained on the site, the developer must provide evidence that full remediation was performed in accordance with all applicable law.
5. 
The General Plan and Zoning designations of the land to be dedicated must allow for multi-family residential use prior to dedication.
6. 
The applicant must demonstrate that development of affordable units on the land to be dedicated would be consistent with the Housing Element goals and policies and this chapter, and not cause residential segregation.
D. 
Convert existing market rate to affordable housing. At the discretion of the city, an applicant may satisfy the requirements of this chapter through the acquisition and rehabilitation of existing market rate units in the City of Brea for conversion to affordable units.
1. 
Converted units shall be subject to the same requirements, standards, and procedures as onsite affordable units.
2. 
The rehabilitation of the existing market rate units to be converted to affordable units shall be completed prior to, or concurrently with the main housing project.
3. 
Converted units shall be retained as affordable units for 45 years or until sold or transferred with an equity share for owner-occupied units and 55 years as to rental units. The affordability period begins upon the initial sale or rental of the unit.
4. 
The existing market rate units shall be substantially rehabilitated, as determined by the city.
5. 
The Affordable Housing Plan and Agreement as described in § 20.40.090 shall provide a description of benefits to be offered to existing tenants, which for conversion of market rate housing units would include, but not be limited to, right of first refusal to remain in the unit, and any expected need for relocation of existing tenants. The applicant is responsible for providing relocation assistance.
E. 
Development agreement. At the city's discretion, the applicant may enter into a development agreement with the city to comply with the intent of this chapter.
(Ord. 1242, 8-15-2023; Ord. 1254, 3-18-2025)
A. 
The applicant may request and the city shall grant the number of incentives identified in Table 20.40.060.A below if a residential project meets the requirements of this chapter by providing on-site affordable units pursuant to § 20.40.040.A. or by providing off-site affordable units pursuant to § 20.40.050.B.
TABLE 20.40.060.A
NUMBER OF INCENTIVES BY LEVEL OF AFFORDABILITY
Level of affordability
Number of Affordable Units1
Number of Incentives
Extremely low-income
5% or more
4
Very low-income
At least 7%
2
At least 10%
3
Low-income
At least 10%
2
At least 15%
3
Moderate-income
At least 20%
2
Workforce-income
At least 30%
2
Moderate-income or lower
100%
(Exclusive of a manager’s unit)
5
1 of the total number of units in the residential project
1. 
The city may grant additional incentives at the city's discretion, if the applicant demonstrates that such additional incentive will result in identifiable and actual cost reductions or avoidance. Such request shall be considered by the Director.
2. 
If a Residential Project is granted incentives by providing off-site affordable units pursuant to § 20.40.050.B., the applicant is permitted to utilize the incentives for either the residential project or the offsite construction project, but not both.
(Ord. 1242, 8-15-2023; Ord. 1254, 3-18-2025)
The provisions of this chapter shall not apply to the following:
A. 
Residential projects that obtain all required administrative, legislative, and/or quasi-judicial approvals (as specified in this Title) prior to the original adoption date of this chapter (August 15, 2023).
B. 
Reconstruction of structures which have been damaged by fire, flood, wind, earthquake, or other unforeseen force, as determined by the Director, if the reconstruction cost is less than 50% of the assessed value.
C. 
Residential projects that are exempt from this chapter by state or federal law.
D. 
Units approved as accessory dwelling units or junior accessory dwelling units.
(Ord. 1242, 8-15-2023; Ord. 1254, 3-18-2025)
The applicant of a project subject to the provisions of this chapter must submit an Affordable Housing Plan with a phasing plan which shall indicate the scheduling and phasing of construction of the required affordable units. The Affordable Housing Plan requirements can be found in § 20.40.090. Additionally, projects pursuant to this chapter must comply with the following standards.
A. 
All affordable units in a residential project or phases of a residential project shall be constructed prior to the issuance of a certificate of occupancy for the project or phase of the project.
B. 
All affordable units shall be reasonably dispersed throughout the project site unless approval for an off-site location has been granted.
C. 
The affordable units shall contain the same number of bedrooms and bedroom size as the market rate units in the project. The unit mix for bedroom count shall be proportional to the unit mix of market rate units in the project.
D. 
The materials and finished quality of the affordable units shall be comparable to those in market rate units.
E. 
Affordable units shall have the same access to amenities as the market-rate units, including common spaces, parking, laundry rooms, fitness centers, and other facilities in the residential development.
F. 
Affordable units required under this chapter shall be retained as affordable units as follows:
1. 
For sale units: Forty-five years or until sold or transferred with an equity share, whichever occurs first.
2. 
Rental units: Fifty-five years.
G. 
The affordability period begins upon the initial sale or rental of the unit.
(Ord. 1242, 8-15-2023)
A. 
Affordable housing plan.
1. 
An application for a residential development shall include an Affordable Housing Plan describing how the development will comply with the provisions of this chapter. The Community Development Director or their designee is the reviewing authority for reviewing and approving an affordable housing plan. No application for a residential development may be deemed complete unless an affordable housing plan is submitted in conformance with this chapter. The city has the ability to attach conditions of approval to an affordable housing plan, if determined necessary.
2. 
An approved affordable housing plan may be amended prior to issuance of any building permit for the residential development or project phase. A request for a minor modification may be granted by the Community Development Director or their designee if the modification is in substantial compliance with the original affordable housing plan and conditions of approval. If significant modifications are requested, a new affordable housing plan may be required.
3. 
An affordable housing plan shall include, but not be limited to, the following:
a. 
The number of affordable units proposed, with calculations;
b. 
The proposed location of the affordable units;
c. 
Level of affordability for the affordable units;
d. 
The unit square footage, and number of bedrooms for market rate and affordable units and tenure (ownership or rental);
e. 
Amenities and services provided, such as common spaces, parking, laundry rooms, fitness centers, and other facilities in the residential development;
f. 
Construction schedule for all units;
g. 
Alternatives requested, if applicable;
h. 
Incentives requested, if applicable; and
i. 
Evidence to justify any requested alternative or incentive, if applicable.
B. 
Affordable housing agreement.
1. 
An applicant shall enter into an affordable housing agreement with the city in a form acceptable to the City Attorney, and executed by the City Manager or their designee, to ensure that all the requirements of this chapter are satisfied. The affordable housing agreement shall be recorded against the residential development prior to final subdivision map approval, or, where a subdivision map is not being processed, prior to issuance of any building permits, with the exception of demolition permits for such parcels or units. The agreement shall be recorded with the office of the Orange County Recorder. The affordable housing agreement shall be binding on the applicant and all future owners and successors in interest thereof.
2. 
The affordable housing agreement shall include all information requested in the affordable housing plan and any other provisions necessary to ensure that the requirements of this chapter are satisfied.
3. 
The affordable housing agreement shall include provisions for resale restrictions, monitoring affordability of the units, and the eligibility of potential purchasers or renters.
4. 
An affordable housing agreement is not required for a residential development which will comply with the requirements of this chapter through payment of an in-lieu fee.
(Ord. 1242, 8-15-2023; Ord. 1254, 3-18-2025)
A. 
The Community Development Director, or their designee, may suspend, revoke, or deny any building permit or other approval upon finding a violation of any provision of this chapter. The provisions of this chapter shall apply to all owners, agents, and successors of an applicant proposing a project. No entitlement approval, grading permit, building permit or certificate of occupancy shall be issued if it is found in noncompliance with the provisions of this chapter.
B. 
Any individual or entity who sells or rents an affordable unit in violation of the provisions of this chapter shall be required to forfeit all monetary gains obtained through noncompliance. Recovered funds shall be deposited into the Affordable Housing Trust Fund.
C. 
Selling or renting an affordable unit in violation of the provisions of this chapter is a violation of the City Code. The city may use any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including but not limited to:
1. 
Actions to revoke, suspend, or deny any grading permit, building permit, certificate of occupancy, or discretionary approval.
2. 
Any other action, civil or criminal, authorized by law or by any regulatory document, restriction, or agreement in this chapter.
D. 
The city shall be entitled to recover its reasonable attorney's fees and costs.
(Ord. 1242, 8-15-2023)
The in-lieu fees and any equity share payment collected as a result of requirements of this chapter shall be deposited in the City's Affordable Housing Trust Fund to be used exclusively to develop and retain the supply of housing affordable to extremely low, very low, low, and moderate-income households. The city shall provide ongoing implementation programs utilizing funds deposited in the Affordable Housing Trust Fund for the benefit of extremely low, very low, low, and moderate-income households.
(Ord. 1242, 8-15-2023)
The City Council shall adopt by resolution the guidelines for the implementation and enforcement of this chapter. It is the intent of the City Council that the guidelines shall have the full force and effect of the law and shall be adhered to in full.
(Ord. 1242, 8-15-2023)