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HomeMy WebLinkAboutAmndInclZnngRg/AffrdHsng04-23-2002 AGENDA STATEMENT PLANNING COMMISSION MEETING DATE: April 23, 2002 SUBJECT: ATTACHMENTS: RECOMMENDATION: Public Hearing: Amendments to the Inclusionary Zoning Regulations and Affordable Housing Priority Area Policy Report Prepared by: Eddie Peabody, Community Development Director 1. Resolution 182-01, Expressing the City Council's Intent to Amend the City of Dublin Inclusionary Housing Ordinance as Currently Codified in Dublin Municipal Code Chapter 8.68 2. Resolution Recommending the City Council Adopt an Ordinance Amending Chapter 8.66 of the Dublin Municipal Code Relating to the Inclusionary Zoning Regulations 3. Resolution Recommending the City Council adopt an Affordable Housing Priority Area Policy 1. Review and comment on proposed Inclusionary Zoning Ordinance Amendments 2. Adopt Resolution (Attachment 2) recommending the City Council adopt changes to the Inclusionary Zoning as noted in Exhibit A to Attachment 2 3. Adopt Resolution (Attachment 3) recommending the City Council adopt an Affordable Housing Priority Area Policy as noted in Exhibit B to Attachment 3 FINANCIAL STATEMENT: None at this time DESCRIPTION: At the June 5, July 17 and October 16, 2001 City Council meetings, Staff was instructed to review the present Inclusionary Zoning Ordinance regulations and the General Plan as they relate to affordable housing requirements. The City Council adopted Resolution No. 182-01 on July 17, 2001 expressing the City's intent to increase the percentage of affordable units and related changes to the Inclusionary Zoning Ordinance in an amount not to exceed 15 % of all new housing units and to prohibit in lieu fees for more than one-half of the affordable inclusionary units. Such changes will require amendments to City's Housing Element and the Inclusionary Zoning Ordinance. Since August 2001, Staff has been working with an Inclusionary Work Group that included representatives from the home building community, non- profit housing industry and community activists. City Council members Oravetz and McCormick were added to the Work Group in November 2001 to ensure City Council review. On March 5, 2002 the City Council reviewed the proposed Inclusionary Zoning Ordinance changes and instructed Staff to set public hearings on the changes. This report describes the proposed new Inclusionary Zoning Ordinance amendments and a new Affordable Housing Priority Area Policy. The Planning Commission will only COPIES TO: Inclusionary Work Group In House Distribution review the Ordinance changes and Affordable Housing Policy. The City Council will later set the proposed changes to any in-lieu fee requirements. BACKGROUND: The present Inclusionary Zoning Ordinance is as follows: 1. All new residential projects of 20 or more units must set aside 5 % of the units as affordable units for 30 years. (Sections 8.68.050; 8.68.060.) 2. The 5 % requirement is broken down as follows: 2 % for very low-income households, 2 % for low-income households and 1% for moderate-income households. (Section 8.68.050.) 3. The Ordinance applies to both ownership and rental projects. (Section 8.68.050.) 4. Affordability must be ensured by agreements recorded against the property. (Section 8.68.070.) 5. A developer may meet the obligation in ways other than on-site construction of affordable units. (Section 8.68.80.) The options include (a) off-site construction (Section 8.68.080(A)); (b) payment of an "in lieu" fee, which the Council set as $2 square foot for single family and $1.50/square foot for multifamily (Section 8.68.080(A), Resolution No. 131-01; (c) land dedication (Section 8.68.080(C)); (d) other creative ways if approved by the City Council (Section 8.68.080(D)); and (e) purchase of credits from another developer who constructed more than its share of affordable units (Section 8.68.090). 6. Incentives can be offered to developers who construct inclusionary units on-site. (Section 8.68.110.) Incentives include (a) deferral of both processing fees and development impact fees if deferral will increase the project's feasibility (8.68.110(C)(1)); (b) design modifications (Section 8.68.110(C)(2)); and (c) priority processing (Section 8.68.110(C)(3)). 7. Affordable units may be smaller and may have fewer amenities (e.g., fireplaces, garbage disposals, dishwashers, cabinet and storage space, and more than one bathroom) than market rate units. (Section 8.68.060(C).) Since August 2001, staff has worked with the Inclusionary Ordinance Work Group to explore various alternative changes to the Ordinance in line with the City Council directives of last summer and fall. Issues discussed included: 1. Determination of the percentage of very Iow, low and moderate housing required as a part of required affordable housing. 2. Which future projects would be subject to new Inclusionary requirements 3. Other options if on-site affordable housing cannot be built (off-site construction, land and other possibilities) 4. In-lieu fee requirements and methods of determining fair methods of evaluating market versus affordable costs; fixed fee approach and differential fees based on higher fees for very low and low income units versus moderate income units. Additional discussions regarding new ordinance changes focused on: 1. What role requirements on new housing would have in relationship to possible non-residential housing fees (commercial linkage) that were being studied at this time 2. The experience of Inclusionary Zoning requirements of nearby cities (Livermore, Pleasanton, Union City, etc.) in requiring new affordable units and the level of their in-lieu requirements. 3. At what point would the required affordable housing construction costs and in-lieu fee payments make new projects economically infeasible 2 Various proposals for reasonable in-lieu fees that might address the difference between the market cost to build a certain size unit and the costs to build the same size unit to meet affordable housing requirements. Proposed Inclusionary Ordinance Changes With the assistance of the City Attomey, a draft new Inclusionary Zoning Ordinance and proposed in-lieu fee structure was developed and reviewed by the Inclusionary Ordinance Work Group on January 22, 2002. The City Council also reviewed the proposed changes at their March 5, 2002 meeting. The features of this ordinance and fee resolution are as follows: 1. All new residential projects of 20 or more units must construct 15 % of the total number of dwelling units as affordable for 30 years. 2. Affordable units shall be provided as follows: · 30% very low income households · 20% low income households · 50% moderate income households 3. A fee in lieu of building one-half of the required affordable units may be paid. 4. If affordable units cannot be built on-site, the City Council may allow: · Land dedication to the City or City designated local non-profit housing developer large enough to accommodate the numbers of required affordable units; · Construction of the affordable units off-site in a City Council approved site; · Waive requirements and approve alternative methods of compliance; 5. Affordable units should be made available to qualified persons based on the City's Affordable Housing Program (see page 4 of draft ordinance) 6. Incentives to encourage on-site construction of affordable units in excess of 15 % of the total units may be offered and approved by the City Council (deferred fees, design modifications, priority processing). Affordable Housing Priori~, Area Policy At the July 17, 2001 City Council meeting, the City Council also approved an action to establish priority areas for affordable housing in new developments in the City. As a result of Council's action, Staffhas reviewed undeveloped and underdeveloped land subject to the new Ordinance and, concurrently, has begun to prepare the Land Inventory chapter for the General Plan 2002 Housing Element. The matter before the Planning Commission tonight is a policy and map of priority areas for affordable housing in new developments in the City of Dublin (Exhibit B to Attachment 3). The Priority Area Policy includes: Purpose and Definition of Priority Areas for Affordable Housing · What Criteria Should Be Used · How City Staff Would Work with the Development Community The policy for Priority Areas for Affordable Housing would encourage affordable units to be built in the following areas: · Sites without entitlements under the Subdivision Map Act or other approval, as of October 16, 2001. 3 · Sites with approved medium, medium high, and high-density residential and/or commercial sites that allow mixed-use development, pursuant to the Dublin General Plan, specific plans, or amendments. (The Policy may include areas that are subject to pre-zoning and annexation.) · Locations near public transportation, including Wheels bus service and BART. · Locations near services, including grocery stores, other retail, schools, hospitals, parks, etc., to reduce dependence on automobiles, to reduce development costs associated with parking facilities, to encourage inexpensive and nonpolluting alternative transportation, to provide efficient care to City of Dublin residents, including seniors and disabled persons, and to provide public open space amenities to multi family housing residents. · Sites convenient to job centers to promote a balance of jobs and housing. In practice, the Priority Areas for the Affordable Housing Policy would apply to projects in the following ways: · The Inclusionary Zoning Ordinance applies to all residential developments of 20 units or more, including but not limited to the areas represented on the Affordable Housing Priority Areas map. · Projects of 20 units or more proposed for Priority Area sites - or sites approved for medium, medium high and high-density residential and/or commercial sites that allow mixed-use development - would be encouraged to provide all of the required Inclusionary units on site. · For projects of 20 units or more proposed for sites with low density, rural residential/agriculture and/or single family residential use, which are areas that are not identified as Priority Areas, Staff would encourage the developer to provide required Inclusionary Units on site, as well as explore alternatives available to the applicant, as provided in the Inclusionary Zoning Ordinance. · A statement describing the affordable housing component of a project would be a requirement of all applications for residential development of 20 units or more. RECOMMENDATION: Staff recommends that the Planning Commission receive the staff report and, 1) review and comment on the proposed Inclusionary Zoning Ordinance Amendments, 2) Adopt Resolution (Attachment 2) recommending the City Council adopt changes to the Inclusionary Zoning as noted in Exhibit A to Attachment 2; and 3) Adopt Resolution (Attachment 3) recommending that the City Council adopt an Affordable Housing Policy as noted in Exhibit B to Attachment 3. g :housing/inclusionary/pc sr 4-23-02 4 RESOLUTION NO. 182 - 0I A RESOLUTION OF THE CITY COUNCIL OF ~ CITY OF DUBLIN EXPRESSING ~ C~ CO~C~'S ~~ TO A~ ~ ~ OF D~L~ ~USION~Y HOUS~G O~~, AS C~N~Y CODED ~ D~ ~C~ CODE CHAPTER 8.68 WHEREAS, the City of Dublin Inclusionary Zoning Ordinance (Chapter 8.68 of the Municipal Code) currently provides as follows: 1. That all new residential projects of 20 or more units must restrict 5% of the units as affordable units for 30 years. (Sections 8.68.050; 8.68.060.) 2. That the 5% restriction is broken down as follows: 2% must be for very low income households, 2% must be for low income households and 1% must be for moderate income households. (Section 8.68.050.) 3. That a developer may meet its obligation in ways other than on-site construction of affordable units. (Section 8.68.080.) The options include (a) off-site construction (Section 8.68.080(A)); Co) payment of an "in lieu" fee, which the Council set as SI/square foot for single family and $.75/square foot for multifamily (Section 8.68.080(A); (c) land dedication (Section 8.68.080(C)); (d) other creative ways if approved by the Council (Section 8.68.080(1))); and (e) purchase of credits from another developer who constructed more than its share of affordable units (Section 8.68.090); and WHEREAS, the City Council has indicated its intent to amend the Inclusionary Zoning Ordinance to establish a city-wide affordable housing goal in an amount not to exceed 15% of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordable/inclusionary units, as previously expressed in Resolution No. 132-01, adopted by the City Council on July 17, 2001; and WHEREAS, the intended changes to the Inclusionary Zoning Ordinance grew out of the Council's consideration of the Affordable Housing Implementation Program at meetings on February 1, 2000, October 3, 2000, February 6, 2001, June 5, 2001, June 19, 2001, and July 17, 2001. The proposed increase in the affordable housing goal is based on information developed through the Affordable Housing Implementation Program and the meetings at which it was considered. Furthermore, the contemplated amendments would help the City meet its state-mandated affordable housing goals; and WHEREAS, the City Council's intent in adopting this resolution is that subsequent amendments to the Inclusionary Zoning Ordinance shall apply to applications for discretionary approvals submitted or deemed complete at~er the adoption of this resolution and approved after the effective date of the amendments; and WHEREAS, the City Council adopts this resolution, in part, pursuant to and in satisfaction of the req~ments of California Government Code Section 66474.2(b). O t-t !VI E N"I" / NOW, THEREFORE, BE IT RESOLVED, that the City hereby intends to amend the Inclusionary Zoning Ordinance (Municipal Code Chapter 8.68) to establish a city-wide affordable housing goal in an amount not to exceed 15% of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordabledinclusionary units. PASSED, APPROVED AND ADOPTED this 16th day of October 2001, by the following vote: AYES: Councilmembers Lockhart, McCormick, Oravetz, Zika and Mayor Houston NOES: None ABSENT: None ABSTAIN: None ATTEST: ~., / ~.. / K2/G/10-16-01/reso-in¢lus-fee.doc (Item 6.1) MAYOR RESOLUTION NO. 02 - A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 8.68 OF THE DUBLIN MUNICIPAL CODE RELATING TO INCLUSIONARY ZONING REGULATIONS WHEREAS, the citizens of Dublin are experiencing a housing shortage for very low-, low- and moderate-income households; and WHEREAS, a goal of the Housing Element of the City's General Plan is to achieve a balanced community with housing available for households of a range of income levels; and WHEREAS, persons with very low, low, and moderate incomes that currently live and/or work in the City are increasingly unable to locate housing at prices they can afford, and often become excluded from living in the City; and WHEREAS, Federal and State housing subsidy programs are insufficient by themselves to satisfy the housing needs of very low-, low- and moderate-income households; and WHEREAS, the high cost of newly constructed housing does not, to any appreciable extent, provide housing affordable by very low-, low-, and moderate-income households, and continued new development that does not include affordable housing will serve to further aggravate the current housing shortage by reducing the supply of developable land; and WHEREAS, it is a public purpose of the City, and a public policy of the State as mandated by the requirements for a housing element of the City's General Plan, to make available an adequate supply of housing for persons of all economic segments of the community; and WHEREAS, the Planning Commission did hold a public hearing on April 23, 2002; and WHEREAS, proper notice of said public hearing was given in all respects as required by law; and WHEREAS, the City of Dublin adopted a Negative Declaration for the Inclusionary Zoning Ordinance on June 11, 1996. The Negative Declaration was prepared pursuant to California Environmental Quality Act (CEQA) Guidelines, and the City of Dublin Environmental Guidelines. These amendments do not change the General Plan or zoning density for any site. These amendments would not have impacts on the environment that were not addressed by the adopted Negative Declaration. The current amendments are within the scope of the Negative Declaration adopted on June 11, 1996 and not further environmental review is required; and BE IT FURTHER RESOLVED THAT THE Dublin Planning Commission does hereby recommend that the City Council approve an Ordinance of the City of Dublin amending Chapter 8.68 of the Dublin Municipal Code relating to Inclusionary Zoning regulations as set forth in Exhibit A. PASSED AND ADOPTED BY the Planning Commission of the City of Dublin, on this 23rd day of April, 2002, by the following votes: ATTACHMENT - AYES: NOES: ABSENT: ABSTAIN: ATTEST: Planning Commission Chairperson Planning Manager GAHOUSING\inclusionary\agenda statements resos\pc reso CHAPTER 8.68 INCLUSIONARY ZONING REGULATIONS 8.68.010. Purpose. The purpose of this chapter is to: enhance the public welfare and assure that further housing development contributes to the attainment of the City's housing goals by increasing the production of residential units affordable by households of very low, low, and moderate income. assure that the limited remaining developable land in the City's planning area is utilized in a manner consistent with the City's housing policies and needs. 8.68.020. Definitions. As used in this chapter, each of the following terms shall be defined as follows: "Affordable Unit" means an ownership or rental-housing unit, including senior housing, affordable to households with very-low, low, or moderate incomes as defined in this chapter. Rental units are deemed affordable units if the annual rent does not exceed 30% of maximum income level for very-low-, low-, and moderate-income households, adjusted for household size and as defined below. Owner-occupied units are deemed affordable units if the sales price results in annual mortgage payments that do not exceed 30% of maximum income level for very-low-, low-, and moderate-income households, adjusted for household size and as defined below. "Applicant" means any person, firm, parmership, association, joint venture, corporation, or any entity or combination of entities that seeks city real property development permits or approvals. C. "Dwelling unit" means a dwelling designed and intended for occupancy by one household. Do "Very-low-, low-, and moderate-income levels" means those income and eligibility levels determined periodically by the California Department of Housing and Community Development based on Alameda County median income levels adjusted for family size. Such levels shall be calculated on the basis of gross annual household income considering household size and number of dependents, income of all wage earners, elderly or disabled family members, and all other sources of household income and will be recertified as set forth by local standards, and state and federal housing law. "Very-low income" means 50% or less of the median income, adjusted for actual household size. o "Low income" means more than 50% to 80% of the median income, adjusted for actual household size. o "Moderate income" means more than 80% to 120% of the median income, adjusted for actual household size. EXHIBIT "Resale controls and/or rent restrictions" means legal restrictions by which the affordable units shall be restricted to ensure that the unit remains affordable to very-low-, low-, or moderate-income households, as applicable, for a period of not less than 30 years. With respect to rental units, such rent restrictions shall be in the form of a regulatory agreement recorded against the applicable property. With respect to owner-occupied units, such resale controls shall be in the form of resale restrictions, deeds of trust, and/or other similar documents recorded against the applicable property. Fo "Residential development" includes, without limitation, detached single-family dwellings, multiple- dwelling structures, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed use developments that include housing units, and residential land subdivisions intended to be sold to the general public. 8.68.030. General Requirements mo 15% Affordability Requirement. All new residential development projects of 20 units or more designed and intended for permanent occupancy shall construct 15% of the total number of dwelling units within the development as affordable units, except as otherwise provided by this chapter. The foregoing requirement shall be applied no more than once to an approved development (and generally at the tentative map stage), regardless of the changes in the character or ownership of the development, provided the total number of units does not change. In applying and calculating the affordability requirement, any decimal fraction less than or equal to 0.50 may be disregarded, and any decimal fraction greater than 0.50 shall be construed as one unit. Bo Allocation of Units to Income Levels. Affordable units provided pursuant to this section shall be allocated to households with very-low, low-, and moderate-income levels as follows: Very-low-income households 30% Low-income households 20% Moderate-income households 5O% Where the calculation of the allocation results in fewer units that would otherwise be required pursuant to subdivision A above, one additional unit should be allocated to the income level with a decimal fraction closest to 0.50. Conditions of Approval: Any tentative map, conditional use permit, or site development review approving residential development projects subject to this chapter shall contain conditions sufficient to ensure compliance with the provisions of this chapter. Such conditions shall detail the number of affordable units required, specify the schedule of construction of affordable units, set forth the applicant's manner of compliance with this chapter, and require the execution of an agreement imposing appropriate resale controls and/or rental restrictions on the affordable units. Concurrent Construction. All affordable units in a project or phase of a project shall be constructed concurrently with market-rate units, unless the City Manager determines in writing that extenuating circumstances exist that make concurrent construction infeasible or impractical. Eo Design and Distribution of Affordable Units. All affordable units shall reflect the range of numbers of bedrooms provided in the project as a whole and shall not be distinguished by exterior design, construction, or materials. Affordable units may be of smaller size than the units in the project and may have fewer amenities than the market rate units in the project. All affordable units shall be reasonably dispersed throughout the project. 8.68.040. Exceptions to 15% Affordability Requirement. Developers of projects subject to 8.68.030.A construct 15% of the total number of dwelling units within the development as affordable units, unless subject to an exception set forth in this section. All exceptions require City Council approval, which shall be obtained at or prior to the last discretionary approval for the project. Ao Payment of Fees In-Lieu of Creation of Affordable Units. Upon request of the applicant, the City Council shall permit the applicant to pay a fee in lieu of constructing up to half of the affordable units that the developer would otherwise be required to construct pursuant to section 8.68.030.A. The amount of the fee shall be as set forth in a resolution of the City Council, which may be amended from time to time to reflect inflation and changed conditions in the City and the region. In-lieu fees shall be paid at and the time and in the amount set forth in the in-lieu fee resolution in effect at the time of issuance of the building permit. Bo Off-Site Projects. An applicant may construct the affordable units not physically within the development in lieu of constructing some or all of the affordable units within the development, with the approval of the City Council, if the City Council finds: that construction of the units off-site in lieu of constructing units on-site is cOnsistent with the chapter's goal of creating, preserving, maintaining, and protecting housing for very low-, low- and moderate-income households. 2. that the units to be constructed off site are consistent with section 8.68.030.E above 3. that it would be infeasible or impractical to construct affordable units on-site. that conditions of approval for the project require that the off-site affordable units would be governed by the terms of a deed restriction and, if applicable, rental restrictions similar to that used for the on-site affordable units. that the conditions of approval for the project, or other security such as a cash deposit, bond, or letter of credit, are adequate to require the construction of the off-site affordable units concurrently with the completion of the construction of the residential development or within a reasonable period (not to exceed 5 years). Land Dedication. An applicant may dedicate land to the City or city-designated local non-profit housing developer in lieu of construction of some of all of the required affordable units, if the council finds that: that dedication of land in-lieu of constructing units is consistent with the chapter's goal of creating, preserving, maintaining, and protecting housing for very-low, low- and moderate- income households. 3 that the dedicated land is large enough and appropriately zoned to accommodate the number of units that the applicant would otherwise be required to construct by section 8.68.030.A, is useable for its intended purpose, is free of toxic substances and contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading, and all development-impact fees paid excluding any inclusionary zoning ordinance fees. that the developer has provided or will provide adequate security that the number of units that the applicant would otherwise be required to construct pursuant to 8.68.030.A will be constructed on the dedicated land. Credit transfers. An applicant may fully or partially satisfy the requirements of section 8.68.030.A through the use of transfer credits created pursuant to section 8.68.060. Credit certificates shall be presented to the Community Development Director, who shall note at the time of project approval the credit certificate by number. Credit certificates may only be used to satisfy the requirements for Inclusionary Units for the income category (i.e., very low, low, or moderate) and number of bedrooms for which they are issued. Waiver of Requirements. The City Council, at its discretion, may waive, wholly or partially, the requirements of this ordinance and approve alternate methods of compliance with this chapter if the applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of this chapter. 8.68.050. General Procedures for Implementing Inclusionary Zoning Requirements mo Agreements. Prior to the issuance of a building permit for an affordable unit, resale restrictions or rental controls, or both, as the case may be, shall be set forth in an agreement between the City and the developer, in a form consistent with the City Council-adopted form agreement, which agreement shall be recorded against the property containing the affordable units. The agreement shall be executed by the City Manager, and its requirements shall run with the land and bind the applicant's successors. Rental Units; Occupancy; Annual Report. Agreements involving rental units shall require the owner of the affordable units to ensure that the units are occupied by tenants whose monthly income levels do not exceed moderate income levels and shall preclude tenants from subletting or subleasing the unit. The agreement shall also require the owner of the affordable unit to submit an annual report to the City Manager, in a format approved by the City. The report shall include, but not be limited to the following information: an identification of the affordable units within the project; the monthly rents charged and proposed to be charged; vacancy information for the prior year; and the monthly income for tenants of each affordable unit throughout the prior year. Co Ownership Units; Occupancy; City's Right of First Refusal. Agreements for ownership units shall specify that the inclusionary units must be occupied by the owner or owners and may not be leased or rented without the written approval of the City. The resale restrictions shall provide that in the event of the sale of an affordable unit, the City shall have the right to purchase any affordable owner-occupant unit at the maximum price that could be charged to an eligible household. Selection Criteria. No household shall be permitted to occupy a unit that is required under this chapter to be affordable unless the City or its designee has approved the household's eligibility. 4 Eligible potential occupants of affordable units will be qualified on the basis of household income, the median combined household income statistics published periodically by the California Department of Housing and Community Development, all sources of household income and assets, the relationship between household size and the size of available units, and any further criteria required by law. The developer shall use an equitable selection method established in conformance with the terms of this chapter. The selection criteria may not distinguish between adults and children. Selection of qualified person should be based on priorities established in the City's Affordable Housing Program as noted below: 1. Dublin residents that are seniors 2. Dublin residents that are permanently disabled 3. Dublin residents and non-residents who are members of Dublin's workforce 4. Dublin residents with children 5. Other Dublin residents 6. Non-residents that are seniors 7. Non-residents that are permanently disabled 8. Other non-residents. To qualify as a "Dublin resident," the person shall have been a resident of the City of Dublin for at least a one-year period prior to the eligibility determination. 8.68.060. Affordable Unit Credits. Creation. Affordable unit credits may be created by the City Council. One affordable unit credit certificate shall be issued for each affordable unit constructed in excess of the number of affordable units required to be constructed for the project by Section 8.68.030.A. The certificate shall designate a specific income category (i.e., very-low, low, or moderate income) and number of bedrooms for which they are issued. Ownership and use of credits. Affordable unit credit certificates are issued to and become the possession of the project owner, who may then use them to satisfy the requirements of this chapter for another project in the City. If a project owner proposes to sell credit certificates, the parties shall first obtain the consent of the Community Development Director, who will document the transfer by certificate number. 8.68.070. Incentives to Encourage On-Site Construction of Affordable Units. The City may, but shall not be required to, offer incentives or financial assistance to encourage the on-site construction of affordable units in excess of 15% of the total number of units in the project to the extent resources for this purpose are available and approved for such use by the City Council or City Manager. Such incentives may include, but shall not be limited to, the following: /3 A. Fee Deferral. Development Processing Fees. The City Manager may approve deferred payment of City processing fees applicable to the review and processing of the project. The terms and payment schedule of the deferred fees shall be subject to the approval of the City Manager. Development Impact Fees. The City Council may authorize the deferred payment of development impact fees applicable to the affordable units. Approval of this incentive requires demonstration by the Applicant that the deferral increases the project's feasibility. The applicant must provide appropriate security to ensure future payment of such fees. Design Modifications. The City Council may approve design modifications to affordable units that increase the feasibility of the construction of affordable units, including but not limited to, the following: 1. Reduced lot size. 2. Reduced setback requirements. 3. Reduced open space requirements. 4. Reduced landscaping requirements. 5. Reduced interior or exterior amenities. 6. Reduction in parking requirements. 7. Height restriction waivers. 8.68.080. Inclusionary Zoning In-Lieu Fee Fund. In-lieu Fees shall be deposited into a fund known as the "Inclusionary Zoning In-Lieu Fees Fund" ("Fund"). Use. All monies in the Fund, together with any interest earnings on such monies less reasonable administrative charges, shall be used or committed to use by the City for the purpose of providing very-low, low-, and moderate-income ownership or rental housing in the City of Dublin. Annual report. The City Manager shall prepare an annual report to the City Council identifying the balance of monies in the Fund and the affordable units provided and any monies committed to providing very-low-, low-, and moderate-income housing. The annual report shall also include a review of administrative charges. 8.68.090. Violations. It shall be unlawful for any person, firm, corporation, partnership or other entity that is subject to this ordinance pursuant to section 8.68.030.A to violate any provision or to fail to comply with any of the requirements of this chapter. A violation of any of the provisions or failing to comply with any of the requirements of this Chapter shall constitute a misdemeanor; except that notwithstanding any other provisions of this Code, any such violation constituting a misdemeanor under this chapter, may in the discretion of the enforcing authority, be charged and /¢ prosecuted as an infraction. Any person convicted of an infraction under the provisions of this Code shall be punishable as provided by the Government Code of the State of California. 8.68.100. Enforcement. General. The City Manager shall enforce this chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The City Manager may suspend or revoke any building permit or approval upon finding a violation of any provision of this chapter. No land-use approval, building permit, or certificate of occupancy shall be issued for any residential development unless exempt from or in compliance with this chapter. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval. Excessive rents/legal action. If the City Manager determines that rents in excess of those allowed by operation of this chapter have been charged to a tenant residing in an affordable unit, the City may take appropriate legal action to recover, and the project owner shall be obligated to pay to the tenant, or to the City in the event the tenant cannot be located, any excess rents charged. 8.68.110. Appeals. Decisions of the City Manager under this Chapter may be appealed as provided in Chapter 8.136. g: planning/housing/inclusionary/inclusionary zoning ordinance 2-25-02 RESOLUTION NO. 02 - A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING THAT THE CITY COUNCIL APPROVE AN AFFORDABLE HOUSING PRIORITY AREAS POLICY WHEREAS, on May 28, 1996, the City Council of the City of Dublin found that a limited and finite amount of land remains for development of housing in the City and the extended planning area; and WHEREAS, on May 28, 1996, the City Council adopted the Inclusionary Zoning Ordinance, Section 8.68 of the Dublin Municipal Code, and found that the purpose of Inclusionary Zoning is to assure that further housing development contributes to the attainment of the housing goals of the City by increasing the production of residential units affordable to households of very low, low and moderate income; and WHEREAS, October 16, 2001, the City Council approved Resolution 182-01, which expressed City Council's Intent to Amend the Inclusionary Zoning Ordinance and established a Citywide affordable housing goal in an amount not to exceed 15 % of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordable/inclusionary units; and WHEREAS, the Intent to Amend the Inclusionary Zoning Ordinance established the date of October 16, 2001, on or after which date project applications received or deemed complete by the Community Development Department would be subject to the amended Ordinance; and WHEREAS, the Planning Commission has determined that the attached Affordable Housing Priority Areas meet the criteria of sites that are decentralized, sites with proposed Medium, Medium-High and High density residential use, sites with approved Mixed-Use Commercial use, sites near public transportation, sites near services, sites convenient to job centers, and sites where affordable housing is encouraged; and WHEREAS, it is important to assure that the remaining developable land is utilized in a manner consistent with the City's housing policies and needs the City. NOW THEREFORE BE IT RESOLVED that the Planning Commission does hereby recommend that Council adopt the Affordable Housing Priority Area Policy as set forth in Exhibit B. PASSED, APPROVED AND ADOPTED by the Planning Commission of the City of Dublin on this 23rd day of April 2002. ATTACHMENT AYES: NOES: ABSENT: ABSTAIN: ATTEST: Planning Manager Planning Commission Chairperson CITY OF DUBLIN AFFORDABLE HOUSING PRIORITY AREAS It is the policy of the City Council of the City of Dublin to encourage the location of affordable housing development in the following undeveloped or underdeveloped sites within the City, in compliance with the Inclusionary Zoning Ordinance. This policy is advisory to new development projects and informational to the preparation of the Dublin 2002 Housing Element. Definition of Affordable Housing Priori~, Areas - Those sites which are undeveloped or underdeveloped, as of October 16, 2001 and after. Purpose - to represent the undeveloped or underdeveloped areas were affordable housing is encouraged in a map format - to advise and to encourage the appropriate and harmonious siting of affordable housing to meet the City's housing goals - to promote affordable housing that is decentralized and available to persons throughout the City - to direct Staff to work with the Development Community to locate appropriate affordable housing sites, in compliance with the Inclusionary Zoning Ordinance - to direct Staff's work updating the General Plan's 2002 Housing Element Location - a map of the Priority Areas for Affordable Housing shall be made available to all interested parties. City Staff shall assist in determining the location of Priority Areas for Affordable Housing. Criteria - sites without entitlements under the Subdivision Map Act or other approval, as of October 16, 2001 - sites with approved medium, medium high, and high-density residential and/or commercial sites that allow mixed-use development, pursuant to the Dublin General Plan, specific plans, or amendments (The Policy map includes areas that are subject to pre-zoning and annexation.) - locations near public transportation, including Wheels bus service and BART - locations near services, including grocery stores, other retail, schools, hospitals, parks, etc., to reduce dependence on automobiles, to reduce development costs associated with parking facilities, to encourage inexpensive and nonpolluting alternative transportation, to provide efficient medical care to City of Dublin residents, and to provide public open space amenities to multi-family housing residents. - sites convenient to job centers to promote a balance of jobs and housing EXHIBIT 12 How Ci~, Staff Would Work with the Development Community The Inclusionary Zoning Ordinance applies to all residential developments of 20 units or more, including but not limited to the areas represented on the Affordable Housing Priority Areas map. Projects of 20 units or more proposed for Priority Area sites - or sites approved for medium, medium high and high density residential and/or commercial sites that allow mixed use development - would be encouraged to provide all of the required Inclusionary units on site. For projects of 20 units or more proposed for sites with low density, rural residential/agriculture and/or single family residential use, which are areas that are not identified as Priority Areas, Staff would encourage the developer to provide required Inclusionary Units on site, as well as explore alternatives available to the applicant, as provided in the Inclusionary Zoning Ordinance. A statement describing the affordable housing component of a project would be a requirement of all applications for residential development of 20 units or more. Map: Affordable Housing Priority Areas Map attached. CITY Of DUBLIN PRIORITY AREAS FOR AFFORDABLE HOUSING MAP DATE: APRIL 17, 2002 LEGEND:  DUBLIN RN, ICH  WEST ~lJ~t,~ BART 2X)NING ORD~N'ICE Sl.iALL PREVNI... C 0 600 1200 2400 r r 8,~,,AI..E[: 1 '~.~00' i