The purpose of this chapter is to establish minimum requirements, incentives, and alternative measures by which to ensure the provision of safe, decent and affordable housing for all segments of the city's population, regardless of household income.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
The regulations of this chapter shall apply to all residential projects in the city.
B. 
For purposes of this chapter, "residential project" shall mean any planned development, condominium or subdivision map, condominium conversion, conditional use permit, design review or other discretionary city land use approval which entitles five or more dwelling units, condominium units or residential lots, or any combination of five or more dwelling units, condominium units and residential lots.
C. 
In order to prevent evasion of the provisions of this chapter, contemporaneous construction of five or more dwelling units on a lot, or on contiguous lots for which there is evidence of common ownership or control, even though not covered by the same city land use approval, shall also be subject to the regulations of this chapter.
D. 
A residential development shall be exempt from this chapter if:
1. 
The project is subject to a development agreement executed by the project developer and the city, and the project has an inclusionary housing component as approved by the city; or
2. 
The project has an inclusionary housing component adopted as part of the approval of a prior city entitlement; or
3. 
Prior to the effective date of the ordinance codified in this chapter, the city has approved all discretionary planning approvals necessary for the project, including rezoning, general plan change, major subdivision, use permit, or design review approvals.
4. 
The project replaces market rate units that have been destroyed by fire or other natural catastrophe; provided, that the replacement units are built on the same site as the destroyed units, and the number of dwelling units and total building square footage is not higher than that of the destroyed market rate units.
E. 
Notwithstanding any other provision of this chapter, the requirements of this chapter shall be waived, adjusted or reduced if the developer of the residential project demonstrates to the city council, as part of the first approval for the residential project and/or as part of any appeal process for the first approval, that applying the requirements of this chapter would take property in violation of the U.S. or California Constitution.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
For rental projects:
1. 
At least nine percent of all new dwelling units shall be lower-income renter units and six percent of all new dwelling units shall be very low-income renter units; or
2. 
At least 10 percent of all new dwelling units shall be very low-income renter units; or
3. 
At least six percent of all new dwelling units shall be extremely low-income renter units.
B. 
For low-density owner projects:
1. 
At least nine percent of all new dwelling units shall be moderate-income owner units and six percent of all new dwelling units shall be very low-income owner units; or
2. 
At least 20 percent of all new dwelling units shall be moderate-income owner units.
C. 
For owner projects:
1. 
At least nine percent of all new dwelling units shall be lower-income owner units and six percent of all new dwelling units shall be very low-income owner units; or
2. 
At least 20 percent of all new dwelling units shall be lower-income owner units.
D. 
When the application of the affordable unit requirements set forth in the applicable subsection (A), (B) or (C) of this section results in a number that includes a fraction, and the fraction is one-half or greater, the developer of the residential project must construct the next higher whole number of affordable units. When the application of the affordable unit requirements set forth in the applicable subsection (A), (B) or (C) of this section results in a number that includes a fraction, and the fraction is less than one-half, the developer may elect to construct the next higher whole number of affordable units or to pay a pro rata fee to the city in lieu of constructing an affordable unit pursuant to PMC § 18.86.080(C). The in lieu fee permitted by this subsection shall be equal to the adopted in lieu fee multiplied by the fractional remainder resulting from applying the requirements of the applicable subsection (A), (B) or (C) of this section.
E. 
The affordable units constructed as required under the applicable subsection (A), (B) or (C) of this section shall be approved and completed not later than the times prescribed in PMC § 18.86.090.
F. 
For purposes of calculating the number of affordable units required by the applicable subsection (A), (B) or (C) of this section, any additional units authorized as a density bonus pursuant to California Government Code Section 65915(b)(1) or (b)(2) shall not be counted as part of the residential project.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
Affordable units shall be comparable in overall number of bedrooms, proportion of units in each bedroom category, quality of exterior appearance and overall quality of construction to market rate units in the same residential project.
B. 
Interior features and finishes in affordable units shall be durable, of good quality and consistent with contemporary standards for new housing.
C. 
A minimum of one full bathroom and one half bathroom must be provided in three-bedroom affordable units, and a minimum of two full bathrooms must be provided in affordable units with a minimum of four bedrooms.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
Subject to the approval of the planning commission in conjunction with the commission's consideration of a vesting tentative map, tentative map, use permit or design review application for the residential project, compliance with the basic requirements of the applicable PMC § 18.86.040(A), (B) or (C) may include one or more of the following incentives:
A. 
For low-density owner projects, affordable units required by PMC § 18.86.040(B) may be constructed as single-family dwelling units on smaller lot sizes and on the same project site as market rate units. Notwithstanding the minimum lot area requirements of PMC § 18.50.105, the minimum lot size for affordable units shall be determined by the planning commission in conjunction with its consideration of the tentative map for the residential project. All of the affordable units constructed under this subsection must have a minimum of three bedrooms.
B. 
For owner projects, affordable units required by PMC § 18.86.040(C) may be constructed as single-family detached dwelling units, single-family attached dwelling units or condominium dwelling units on the same site as market rate units. Notwithstanding the minimum lot area requirements of PMC § 18.50.105, the minimum lot size for affordable units shall be determined by the planning commission in conjunction with its consideration of the tentative map for the residential project. All of the single-family detached affordable units constructed under this subsection must have a minimum of three bedrooms. A minimum of one-third of the single-family attached or condominium affordable units constructed under this subsection must have a minimum of three bedrooms.
C. 
Affordable units may be a maximum of 10 percent smaller in square footage than market rate units in the same residential project.
D. 
Affordable units may have a fewer number of bathrooms than market rate units in the same residential project, but in no case shall affordable units have fewer than the number of bathrooms per bedrooms as specified in PMC § 18.86.050(C).
E. 
Affordable units may have a different interior design than market rate units in the same residential project.
F. 
Affordable units may have different interior finishes and features than market rate units in the same residential project; provided, that the finishes and features are durable, of good quality and consistent with contemporary standards for new housing.
G. 
Minimum off-street parking requirements may be reduced from the requirements of Chapter 18.78 PMC for affordable units and market rate units in the same residential project; provided, that the residential project is located within walking distance to transit facilities or is a mixed use residential project located in the downtown commercial area of the New York Landing Historical District. In order to reduce parking requirements for a residential project, the planning commission must find that the reduction in parking will reduce demand for on-site parking in an amount equal to the reduction approved, and that the proposed parking ratio will not negatively impact parking facilities in the area.
H. 
Payment of in lieu park land dedication fees, local traffic mitigation fees and building inspection fees typically required upon issuance of a building permit may be deferred until the developer of the residential project requests a final inspection for occupancy of the dwelling unit for which the permit was issued.
I. 
Four-bedroom affordable units may be constructed in rental projects and shall be credited as one and one-quarter of a unit in the calculation of total affordable units required in rental projects pursuant to PMC § 18.86.040(A).
J. 
The number of dwelling units in a residential project may be increased in accordance with density bonus law (Government Code Section 65915).
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
At the request of the developer, and subject in each case to the approval of the city council and redevelopment agency, the city and redevelopment agency will consider providing public subsidy of residential projects which:
A. 
Provide an amount of affordable units in excess of the requirements of this chapter; or
B. 
Provide four-bedroom affordable units, and the methodology for calculating the number of affordable units in a rental project as described in PMC § 18.86.060(I) is not used; or
C. 
Serve households with lower incomes than required under the applicable of PMC § 18.86.040(A), (B) or (C), while providing the same, or greater, number of affordable units required under the applicable PMC § 18.86.040(A), (B) or (C).
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
Information and Finding Required. In lieu of building all required affordable units within an owner project or low-density owner project, a developer may elect to meet the basic affordability requirements of this chapter by utilizing one of the alternatives listed in subsections (B), (C), (D) and (E) of this section. Any request for off-site construction of affordable units, land dedication, in lieu fee payment or conversion of existing market rate units to affordable units shall include a written explanation of why the alternative compliance measure is being requested. The request for off-site compliance shall be subject to the discretion of the city council, who may approve the request upon finding that the requested off-site compliance measure would provide an opportunity for public benefit not otherwise obtainable through on-site construction.
B. 
Off-Site Construction of Affordable Units. In lieu of building all required affordable units within an owner project or a low-density owner project, a developer may request to construct, or make possible construction by another developer, all or some affordable units on a site or sites not physically contiguous to the market rate units. Pursuant to subsection (A) of this section, any city council approval of a request to construct affordable units off-site will include a requirement that:
1. 
The number of affordable units constructed off-site will be greater than the number of affordable units required by the applicable PMC § 18.86.040(A), (B) or (C), or will be affordable to households with lower incomes than would otherwise be required by the applicable PMC § 18.86.040(A), (B) or (C); and
2. 
The developer purchase the site for the off-site affordable units, secure all planning entitlements, and record affordability covenants against the site prior to issuance of a building permit for the related market rate units; and
3. 
Final inspections for occupancy for the related market rate units are completed after those for the off-site affordable units, or the off-site affordable units are secured by a letter of credit from the developer in an amount at a minimum equal to the in lieu fee amount described under subsection (C) of this section; and
4. 
For low-density owner projects, the affordable units allowed by this subsection may be constructed as rental affordable units; provided, that each affordable unit shall have a minimum of three bedrooms and the affordable units are reserved as lower-income renter units, very low-income renter units or extremely low-income renter units in accordance with the basic requirements listed in PMC § 18.86.040(A).
C. 
Fee In Lieu of Construction. Subject to the discretion of the city council, a developer of a residential project is permitted to pay fees in lieu of constructing affordable units if the city council finds that the residential project site is not suitable for affordable housing. To determine suitability for affordable housing, the city will consider issues such as proximity to schools, shopping, public transportation, and recreational amenities. In lieu fees shall be paid upon issuance of the first building permit for a residential project. If building permits are issued for only part of a residential project, the fee amount shall be based only on the number of units then permitted. The in lieu fee shall be set by the city by fee resolution or other action of the city council so that the fee amounts are equal to the cost of developing a comparable market rate unit on-site. The city council may annually review the fee authorized by this subsection, and may, based on that review, adjust the fee amount by resolution.
D. 
Land Dedication. In lieu of building all or a portion of the affordable units within a residential project, a developer may dedicate, without cost to the city, a lot or contiguous lots sufficient to accommodate at a minimum the number of required affordable units for the residential project that the developer elects not to build on-site. Wherever dedication of land is allowed by this chapter, the value of the land shall be determined by the city with a written appraisal report prepared and signed by an appraiser acceptable to the city. If the appraised value of the land is less than the total amount of in lieu fees otherwise required pursuant to subsection (C) of this section, the developer shall dedicate the land and pay an in lieu fee that is equal to the difference between the appraised value of the land and the total amount of in lieu fees otherwise required by subsection (C) of this section.
Pursuant to subsection (A) of this section, the acceptance of an offer to dedicate land in lieu of compliance with other provisions of this chapter is subject to the discretion of the city council, who shall consider whether:
1. 
The true value of the lot or lots to be dedicated is equal to or greater than the amount of in lieu fees based on the cost to construct the otherwise required affordable units; and
2. 
The lot or lots are suitable for construction of affordable units at a feasible cost, served by utilities, streets and other infrastructure and there are no hazardous materials or other material constraints on development of affordable housing on the lot or lots; and
3. 
The lot or lots are located near schools, transit, and services appropriate for an affordable housing project; and
4. 
The lot or lots are appropriately zoned with adequate density to accommodate the developer's net affordable housing unit requirement; and
5. 
When dedicated to the city, the lot or lots will exhibit clear title; and
6. 
Any other terms and conditions as required by the city will be satisfied at the discretion of the city manager or the manager's designee.
E. 
Purchase of Off-Site Covenants. At the discretion of the city council, a developer may elect to impose affordability covenants that restrict rents or sale prices of dwelling units in an off-site housing development to satisfy the requirements of this chapter. The affordability covenants must be sufficient to meet the definition of affordable units and meet the requirements set forth in PMC § 18.86.040 and § 18.86.100.
The imposition of affordability covenants may only satisfy 50 percent of the affordable unit requirements set forth in the applicable PMC § 18.86.040(A), (B) or (C). A minimum of 50 percent of the affordable units allowed by this subsection shall be affordable to very low-income households, subject to the requirements set forth in the applicable PMC § 18.86.040(A), (B) or (C). For purposes of meeting the affordable unit requirements set forth in the applicable PMC § 18.86.040(A), (B) or (C), two units described under this subsection will count as one affordable unit.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
On-Site Construction. Affordable units required by this chapter shall be constructed and have had final inspections for occupancy prior to issuance of a certificate of occupancy for the related market rate units in any residential project that is developed in a single phase. For residential projects that are developed in phases, the rate of building permit issuance, construction and final inspection of affordable units shall be proportional to the rate of building permit issuance, construction and final inspection of the market rate units within the residential project.
B. 
Alternative Compliance. No building permit shall be issued for any market rate unit in a residential project until the developer of the residential project has received certification from the city manager or the manager's designee that the developer has met, or made arrangements satisfactory to the city to meet, an alternative requirement listed in PMC § 18.86.080. No final inspection for occupancy for any market rate unit shall be conducted until the developer has constructed and had final inspections for occupancy of the affordable units off-site in accordance with the basic requirements of PMC § 18.86.040, or until the developer has secured a letter of credit in an amount at a minimum equal to the in lieu fee amount described under PMC § 18.86.080(C).
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
Format and Recordation of Affordability Restrictions. Regulatory agreements consistent with the requirements of this chapter and acceptable to the city manager or the manager's designee shall be recorded against residential projects with rental affordable units. For affordable units designated for owner occupancy, resale restrictions, deeds of trust and/or other documents consistent with the requirements of this chapter and acceptable to the city manager or the manager's designee shall be recorded against owner-occupied affordable units. The forms of regulatory agreements, resale restrictions, deeds of trust and other documents required by this subsection, and any change in the form of any such document which materially alters any policy in the document, shall be approved by the city manager or the manager's designee.
B. 
Term of Affordability and Restrictions – Rental Affordable Units. In the case of affordable units that are initially rented:
1. 
The documents required by subsection (A) of this section shall be consistent with California Health and Safety Code Section 33334.3(f)(1)(A), as amended from time to time, but in no case shall the minimum term be less than 55 years.
2. 
The documents required by subsection (A) of this section shall provide for continued occupancy by households occupying the units and whose incomes increase during their occupancy, so that those households may, for a maximum of 12 months, exceed the maximum household income otherwise permitted for the affordable unit.
C. 
Term of Affordability and Restrictions – Owner-Occupied Units. In the case of affordable units that are initially sold:
1. 
The documents required by subsection (A) of this section shall be consistent with California Health and Safety Code Section 33334.3(f)(1)(B), but in no case shall the minimum term be less than 45 years. In the case of owner-occupied affordable units that are transferred during the required term, renewed restrictions shall be entered into on each change of ownership during the 45-year renewal term. Affordable units that are owner-occupied and for which the city council has executed an equity participation agreement with the developer of the residential project shall not be subject to the minimum 45-year term required by this subsection.
2. 
The documents required by subsection (A) of this section shall prohibit subsequent rental occupancy unless approved by the city manager or the manager's designee.
3. 
The maximum sales price permitted on resale of an affordable unit designated for owner-occupancy shall be the lower of: (a) fair market value or (b) the seller's lawful purchase price under this chapter, increased by the rate of increase of area median income during the seller's ownership. The documents required by subsection (A) of this section may authorize the seller to recover the market value at time of sale of capital improvements made by the seller and may authorize an increase in the maximum allowable sales price to achieve such recovery. The resale restrictions shall allow the city a right of first refusal to purchase any affordable owner-occupancy unit at the maximum price that could be charged to a purchaser household, at any time the owner proposes sale.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
The fees collected under this chapter and all earnings from investment of the fees shall be expended exclusively to provide or assure continued provision of affordable housing through acquisition, construction, development assistance, regulation, financing, rent subsidies or other methods, and for costs of administering programs which serve those ends.
B. 
The city or its designee may charge fees to developers and/or owners of residential projects to defray costs associated with the administration of this chapter.
(Ord. 04-1229 § 3, 2004; Ord. 05-1257 § 4, 2005; Ord. 07-1284 § 3 (Exh. F), 2007)
Developers of residential projects shall enter into affordable housing agreements with the city to establish implementing and monitoring details, including but not limited to provisions related to documenting the obligations of the developer, annual certifications in rental projects, and qualifying buyers/renters in accordance with the requirements and standards of this chapter. The affordable housing agreement must be approved by the city council and executed by the developer prior to approval of a final map for a low-density owner project or owner project. For a rental project, the affordable housing agreement must be approved by the city council and executed by the developer prior to issuance of a grading permit or a building permit, whichever occurs first.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
A. 
The city attorney shall be authorized to enforce the provisions of this chapter and all regulatory agreements and resale controls placed on affordable units, by civil action and any other proceeding or method permitted by law.
B. 
Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any developer from the requirements of this chapter.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)
If any clause, sentence, section, or part of this chapter, or any fee or requirement imposed upon any person or entity, is found to be unconstitutional, illegal, or invalid, such unconstitutionality, illegality, or invalidity shall not affect or impair any of the remaining provisions, clauses, sentences, sections or parts or the effect of this chapter on other persons or entities. It is hereby declared to be the intention of the city council that this chapter would have been adopted had such unconstitutional, illegal, or invalid clause, sentence, section, or part not been included herein, or had such person or entity been expressly exempted from the application of this chapter.
(Ord. 04-1229 § 3, 2004; Ord. 07-1284 § 3 (Exh. F), 2007)