HomeMy WebLinkAboutItem 6.4 InclusionaryZoningOrd
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CITV CLERK
File # @][f]@]~-~~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 28, 1996
SUBJECT:
EXHIBITS ATTACHED: '.i.
BACKGROUND EXHIBITS
RECOMMENDATION:
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FINANCIAL STATEMENT:
DESCRIPTION:
PUBLIC HEARING PA 96-018 Inclusionary Zoning Ordinance
(Report Prepared by: Tasha Huston, Associate Planner) ~
A.
Resolution Approving Negative Declaration and Establishing
method for detemtining amount ofIn-Lieu Fee
Inc1usionary Zoning Ordinance
Summary of administration options
Sampling of Cities offering deferred fees
Minutes from May 7, 1996 Planning Commission Meeting
B.
C.
D.
E.
NOT ATTACHED, TO BE A V AlLABLE AT PUBLIC HEARING:
1. Dublin Housing Element
2. Eastern Dublin Specific Plan
3. Staff Reports from February 6, 1996 and March 19, 1996
Study Sessions
4. Staff Report from May 7, 1996 Planning Commission Meeting
1.) Open Public Hearing and hear Staff presentation.
2) Take public testimony.
3) Question StatTand the public.
4) Close public hearing and deliberate.
S) Adopt Draft Resolution (Exhibit A)
6) Waive reading and introduce the Ordinance (Exhibit B)
7) Schedule second reading for the June 11, 1996 Council meeting.
The City Council has authorized obtaining consulting services to assist
staff in evaluating housing programs and in preparing specific
recommendations on the Inclusionary Zoning Ordinance. To date, the
costs associated with housing consultant services are over $10,425. A
portion of these costs will be recovered when future development
projects occur in the Eastern Dublin Specific Plan area.
The City of Dublin General Plan Housing Element, Strategy lB., and the Eastern Dublin Specific Plan,
Programs 4.F. and 4.G., require the City of Dublin to prepare an lnclusionary Zoning Ordinance. On
February 6, and March 19, 1996, joint study sessions of the City Council and Planning Commission were
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COPIES TO:
In.House Distribution
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held, at which the provisions of the lnclusionary Zoning Ordinance were discussed. The StaffRepp\ts
prepared for these public meetings (Exhibit 3) documented the City's current housing supply situation.
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These meetings included discussions regarding the current shortage of affordable housing within the City,
and the ~dopted Housing Element ?,oal to m~e av~able ~n adequate s~pply of housin~ f~r persons of al. 0-
econonuc segments of the communIty. The diScussIons reiterated the City'S goal ofachievmg a balanced ,. .
community, and the finding that persons with very low, low, and moderate incomes who 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. Due to the finite supply ofland within the City, continued residential
development which does not include affordable housing will further aggravate the current affordable housing
shortage by reducing the supply of developable land.
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This information, discussions, and conclusions reached at these study sessions provided the staff with
direction on several major issues related to the preparation of the draft lnclusionary Zoning Ordinance. The
draft Ordinance (Exhibit B) contains the policy direction resulting from these study sessions.
The Planning Commission held a public hearing on the proposed Ordinance at its May 7, 1996 meeting.
After considering the staffs report (Exhibit 4) and discussing the proposed Inclusionary Zoning Ordinance,
the Commission voted to recommend that the City Council adopt the Negative Declaration of Environmental
Impact, and approve the Ordinance. The minutes from this Planning Commission meeting are attached as
Exhibit E.
At the March study session, the Council and Commission also requested that the staff look into options for
administering the Ordinance, as well as define examples of programs where some City impact fees may be
deferred as an incentive for developers to construct Inclusionary units. Information on these topics are
contained in Exhibits C & D, and discussed in the Staff Report below. e.
DRAFT ORDINANCE
The proposed Inclusionary Zoning Ordinance is consistent with the requirements of the City's General
Plan, Strategy lB., and the Eastern Dublin Specific Plan, Programs 4.F. and 4.G. The purpose of the
Ordinance is to further the City's goals of making available an adequate supply of housing for persons .
of all economic segments of the community, and contributing to the attainment of this goal by
increasing the production of residential units affordable by households of very low, low, and moderate
income housing. The proposed Ordinance contains the following requirements:
1. For new residential projects of20 units or more, 5% of the units in the project must be units
which are affordable to very low, low, and moderate income households, with a distribution of
the Inclusionary Units in the following income categories:
2% of the project units targeted toward very low income households,
2% of the project units targeted toward low income households,
1 % of the project units targeted toward moderate income households.
2. The Inclusionary Unit requirements apply to both rental and ownership projects
3.
Some restrictions will be required on the Inclusionary Rental Units in order to maintain long-term
affordability; recapture mechanisms would be recorded for some Inclusionary Ownership Units.
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Options for developers to meet their affordable housing obligations in ways other than on-site
construction would be available. These could include the following:
A. Payment ofa fee in lieu of building the Inclusionary Units. The amount of the fee will
be established by Resolution of the City Council. The Council has directed that the fee
shall be based upon a charge of$.7S cents per square foot for multi-family and $1.00
per square foot for single family, and the fee would be based upon the total number of
units in the project. There will be no per-unit cap on the fee.
B. Off-site construction
C. Land dedication
D. Credit transfers.
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S. Incentives will be offereit..to encourage Inclusionary Units to be constructed, with the understanding
that no incentives are guaranteed to any projects, and use of the incentives must be approved by the
City Manager or City Council, as appropriate.
6. The City will use the Department of Housing and Urban Development data on an annual basis for the
purpose of determining affordability.
7. An Affordable Housing Agreement approved by the City Manager will be required to
demonstrate how a project complies with the Inclusionary Zoning Ordinance requirements. If
an Applicant pays the In-Lieu fee instead of constructing lnclusionary Units, a simple
Agreement form may be used. If a project constructs lnclusionary Units, the agreement will
need to address unit restrictions and any financing or resale issues.
8.
The Inclusionary Zoning Ordinance would not replace any provisions of the City's Density Bonus
Ordinance or other City Ordinances.
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In order to implement the proposed Ordinance in a consistent and organized fashion, staffwill need to
prepare Administrative Guidelines. These guidelines will contain important information regarding
procedural details and will provide assistance to developers to comply with the Ordinance's
requirements. For example, the guidelines will address the criteria used when considering whether a
project is considered "affordable by design". They will also address the method for calculating the
amount of reduced In-Lieu Fees, for situations where a developer provides lnclusionary Units which
partially satisfy the ordinance requirements eLe.: constructing units which are affordable to "Moderate-
.. and "Low-Income Households", but not to "Very-Low Income Households".)
PROGRAM OPTIONS
At the last study session, the Council and Commission requested additional informati()n on the
following two issues: 1. Administering the lnclusionary Ordinance; and 2. Offering deferred City fees as
incentives to developers for constructing lnclusionary units. These issues are discussed below.
ORDINANCE ADMINISTRATION
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Once the City has enacted an lnclusionary Zoning Ordinance, the implementation and administration of
the Ordinance and its programs need to be considered. In the initial stages of Ordinance
implementation, the City's staff time involvement would likely be minimal, involving only review and
documentation of how development projects satisfy the requirements of the Ordinance. It is anticipated
that most developers will comply with the Ordinance by opting to pay a fee in.lieu of constructing
affordable units. However, if development projects do provide lnclusionary units, the City would need
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to be actively involved in monitoring or managing some aspects of the project, such as income
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qualification screening and financing details.
Eventually, assuming the City generates funds through developer contributions of in-lieu fees,
considera~ion will need to be .given to the ~est use o~ those funds. During this ~eriod, as in~lieu fee .:""
funds begin to accumulate, City and Housmg Authonty Staff could prepare an Implementation plan fo ,,'
use of the funds. This plan, when developed, could utilize additional resources which may be available
at the time, such as federal government financing mechanisms, as well as produce a product which is
feasible for the specific market period. Depending upon the program selected by the City for use of in-
lieu fee funds, it is very possible that a non-profit housing developer such as Eden Housing or North
Bay Ecumenical Homes, could be involved in a pilot program, and would provide the administration
necessary to operate their progam.
City Staff have met with staff of the Dublin Housing Authority to discuss administration of the
Ordinance. The Housing Authority staff proposes an arrangement for consultation services on a time
and materials basis, with City staff overseeing the administration. A range of options may be
considered depending upon the level of involvement and consultation desired by the City. One option
may be to utilize a portion of the funds accrued through In.Lieu fees to cover the costs of development
and initial administration of a pilot program or affordable housing project. However, it is anticipated
that City participation in an affordable housing project would not occur until substantial funding has
accumulated. Further discussion of possible future housing programs and projects to utilize in-lieu fee
funds can be scheduled for a future meeting.
In summary, City staff is recommending that at this time, monitoring compliance with the ordinance be
handled by City staff. with minor consultation from the Housing Authority for administering financial
and other detailed aspects. If the City desires substantial consultation from the Authority, an
Agreement between the City and the Authority will be needed. The recommended level of
administration for monitoring compliance with the Ordinance is illustrated in the chart in Exhibit C.
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INCENTIVES: FEE WAIVER AND/OR D~FERRAL
At the March 19th Study Session, the Council and Commission discussed whether they would like to offer
incentives to developers to encourage the construction ofInclusionary units, including deferred fees as one
possible option. Some concern was expressed regarding deferral of development fees as an incentive, and
the Council and Commission requested that Staff provide options and examples of how the fee deferral
could work. A list of Cities who allow some for offee deferral or assistance is included as Exhibit D.
The research of other Cities' programs revealed that two methods were commonly used by Cities to assist
affordable housing developments: waivers and deferrals. When fee waivers are granted by a City, it is
usually considered a project subsidy. The funds for subsidies usually come from City housing trust funds
(such as the housing in.lieu fee fund) or government housing programs (such as CDBG or Home funds).
Federal housing funds also have requirements which restrict the use of the funds for specific types of
projects and/or income levels. In addition, subsidies in the form offee waivers may require an election in
compliance with Article 34 of the Constitution. Finally, iffees are waived, the City's budget and financial
projections would be affected.
When fees are deferred, the total amount of revenue collected would not change, but the collection time ,
frame would be affected. When Cities allow deferrals, they usually require that an agreement be entered itA:..
by the developer and City, establishing the terms for payment and method for recovering cost in the event';r'!!'
projects which are not completed
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The most common types offees for which a City allows deferral are: 1) Project processing fees, and 2)
Impact fees. The proposed Ordinance therefore offers two levels of deferred fees. The first level of deferral
could be approved by the City Manager, and would apply to project processing fees (i.e.: planning
applications, plan review, etc.). The second level of deferral would require City Council approval, and
would apply to project impact fees (i.e.: Public Facilities Fees). Both types of deferrals would require a
mechanism to ensure that the fees would be collected, such as an agreement entered into by the developer
and the City, establishing the payment terms.
CONCLUSION
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Therefore, staff recommends that the City Council conduct a Public Hearing, deliberate, and: 1) adopt
the Resolution (Exhibit A) Adopting a Negative Declaration and Establishing the method for determining
the amount of In-Lieu Fees~ 2) waive reading and introduce the Inc1usionary Zoning Ordinance (Exhibit B)~
and 3) schedule the second reading for the June 11, 1996 City Council meeting.
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING A NEGATIVE DECLARATION FOR THE INCLUSIONARY ZONING ORDINANCE;
AND
ESTABLISHING METHOD FOR DETERMINING AMOUNT OF IN-LIEU FEE
WHEREAS, the City of Dublin Housing Element, Strategy I.B., and the Eastern Dublin Specific Plan,
Programs 4.F. and 4.G., require the City of Dublin to prepare an lnclusionary Zoning Ordinance; and
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WHEREAS, the Planning Commission and City Council held properly noticed public study sessions
to discuss issues related to the development of the Inclusionary Zoning Ordinance on February 6 and March
19, 1996, and
WHEREAS, pursuant to the City of Dublin Housing Element Strategy LB., the City of Dublin has
prepared a draft Inclusionary Zoning Ordinance as a result of the direction given at these study sessions; and
WHEREAS, Section 8.24.080 (B) of the proposed Indusionary Zoning Ordinance provides the
option of paying a fee in-lieu of constructing Inclusionary Units ("In-Lieu Fee"), and states that the City
Council shall establish the amount of the In-Lieu Fee by resolution; and
\VHEREAS, the Planning Commission held a public hearing on said draft Ordinance on May 7, 1996,
for which proper notice was given in accordance with California State Law; and
WHEREAS, the lndusionary Zoning Ordinance has been reviewed in accordance with the provisions
of the California Environmental Quality Act; and
WHEREAS, an Environmental Impact Report, SCH #84011002, was prepared for the Dublin
General Plan and certified on February 11, 1985; and
WHEREAS, an Environmental Impact Report, SCH# 91103064, was prepared for the Eastern Dublin
Specific Plan and General Plan Amendment, and adopted by the City Council on May 10, 1993, with two
Addenda to the FEIR, dated May 4, 1993 and August 22, 1994; and
WHEREAS, the above-noted Environmental Impact Reports addressed impacts of the future
development of the City of Dublin; and which impacts and analysis exceed the impacts of the Inclusionary
Zoning Ordinance; and
WHEREAS, the program proposed in the Inclusionary Zoning Ordinance, including in-lieu fees, does
not raise any new significant environmental issues which were not addressed in the Dublin General Plan
Environmental Impact Report, or the Eastern Dublin Specific Plan and General Plan Amendment
Environmental Impact Report, and therefore a Negative Declaration was prepared for this project; and
WHEREAS, notice of preparation of the Negative Declaration was published in the local newspaper
and posted in public buildings to provide for a 21 day public review period in accordance with the City of
Dublin Environmental Guidelines and the California Environmental Quality Act (CEQA); and
WHEREAS, a staff report was submitted for P A 96-018, the proposed Indusionary Zoning
Ordinance, recommending that the Planning Commission recommend City Council approval of said draft
Ordinance; and
EXHffilT A
\\'HEREAS, after considering all staff reports, recommendations, and written and oral testimony
submitted at the Public Hearing hereinabove set forth, the Planning Commission adopted a Resolution
recommending City Council approval of the Negative Declaration and adoption of the draft Inclusionary
Zoning Ordinance; and
\VHEREAS, the City Council held a public hearing on said Ordinance on May 28, 1996, for which
proper notice was given in accordance with California State Law; and
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\VHEREAS, a staff report was submitted for P A 96-018, the proposed Inclusionary Zoning
Ordinance, recommending the City Council's approval of the Negative Declaration, establishment of
methodology for determining amount of In-Lieu Fee, and adoption of said draft Ordinance; and
WHEREAS, the City Co~ficil did hear and consider all said reports, reconunendations and testimony
hereinabove set forth.
NOW, THEREFORE, BE IT RESOLVED THAT THE Dublin City Council does hereby find that
the draft Ordinance is consistent with the stated purpose and objectives of the City's Zoning Ordinance,
Municipal Code, General Plan, and Eastern Dublin Specific Plan.
BE IT FURTHER RESOLVED THAT THE Dublin City Council does hereby approve a Negative
Declaration.
AND, BE IT FURTHER RESOLVED THAT THE Dublin City Council does hereby establish the
methodology for determining the amount of the In-Lieu Fee for each development project subject to the
requirements of the Inclusionary Zoning Ordinance, as follows:
1. The In-Lieu Fee shall be based upon a charge of $.75 cents per square foot for multi-family (attached
unit) developments, and $1.00 per square foot for single family (detached unit) developments. .
2. The Fee will be calculated for the average unit size, in square feet, for the total number of units in the ...
project.
3. There will be no per-unit maximum for the Fee.
4. The Fee will be adjusted periodically, based upon the percentage increase in the Consumer Price Index.
5. The actual amount of the total Fee charged for a project shall be determined at the time of project
tentative map approval.
The above methodology for determining the amount of the In-Lieu Fee for each development project subject
to the requirements of the Inclusionary Zoning Ordinance shall take effect as of the date on which the
Inclusionary Zoning Ordinance becomes effective.
PASSED, APPROVED AND ADOPTED this 28th day of May, 1996.
A \'ES:
NOES:
ABSEl\rr:
ATTEST:
Mayor
City Clerk
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96018\ccreso.doc
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DUBLIN
ADDING CHAPTER 8.24 TO THE DUBLIN MUNIClP AL CODE
ESTABLISHING ZONING ORDINANCE PROVISIONS
RELATING TO INCLUSIONARY HOUSING
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
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Chapter 8.24 is added to the Dublin Municipal Code to read as follows:
"Chapter 8.24 Inc1usionary Zoning
ARTICLE I GENERAL PROVISIONS
Section 8.24.010. Title.
This Chapter shall be called the "Inclusionary Zoning Ordinance of the City of Dublin" .
Section 8.24.020. Findings.
The City of Dublin finds that the citizens of Dublin are experiencing a housing shortage for very low, low
and moderate income households. A goal of the City's adopted Housing Element is to achieve a balanced
community with housing available for households ofa range of income levels. Persons with very low, low,
and moderate incomes who 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. Federal and State housing
subsidy programs are not sufficient by themselves to satisfy the housing needs oflower and moderate
income households. The City finds that 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 that
continued new development which does not include affordable housing will serve to further aggravate the
current housing shortage by reducing the supply of developable land. The City further finds that it is a
public purpose of the City, and a public policy of the State of California 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.
Section 8.24.030. Purpose.
The purpose of this Chapter is to enhance the public welfare and assure that further housing development
contributes to the attainment of the above-described housing goals by increasing the production of
residential units affordable by households of very low, low, and moderate income, and by providing funds
for the development of very low, low, and moderate income ownership and/or rental housing. A limited and
finite amount of land remains for development of housing in the City and extended planning area. In order
to assure that the remaining developable land is utilized in a manner consistent with the City's housing
policies and needs, the City declares that FIVE (S) percent of the total number of units of all new residential
developments containing twenty (20) or more units, constructed within the City as it now exists and as may
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EXHIBIT B
be altered by annexation, shall be affordable by households of very low, low, and moderate income,
including ownership and/or rental projects.
Section 8.24.040. Definitions.
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For the purposes of this Chapter, certain words and phrases shall be interpreted as set forth in this section
unless it is apparent from the context that a different meaning is intended.
Affordable Rent: A monthly rent (including utilities as determined by a schedule prepared by the City) which
does not exceed the following:'..~
Very- Low-income households: 1/12 of30% ofSO% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures generated by the Federal Department of Housing
and Urban Development (HOD)
Low-income households: 1/12 of30% of80% of the annual Median Income Alameda
County, as adjusted for household size, based upon annual income
figures provided by HUD
Moderate-income households: 1/12 of30% of 120% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures provided by HUD
Affordable Sales Price: A sales price which results in a monthly mortgage payment (including principal and ._
interest) which does not exceed the following:
For Very- Low-income households: 1/12 of30% of50% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures generated by the Federal Department of Housing
and Urban Development (HOD)
For Low-income households: 1/12 of30% of 80% of the annual Median Income Alameda
County, as adjusted for household size, based upon annual income
figures provided by HUD
For Moderate-income households: 1/12 of30% of 120% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures provided by HUn
Amenities: Interior features which are not essential to the health and safety of the resident, but provide
visual or aesthetic appeal, or are provided as conveniences rather than as necessities. Interior Amenities may
include, but are not limited to, fireplaces, garbage disposals, dishwashers, cabinet and storage space and
bathrooms in excess of one. Amenities shall in no way include items required by City building codes or
other ordinances which are necessary to insure the safety of the building and its residents.
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Applicant: Any person, finn, partnership, association joint venture, corporation, or any entity or
combination of entities which seeks City permits and approvals for a project.
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City: The City of Dublin or its designee or any entity with which the City contracts to administer this
chapter.
Dublin Employee: Any head of household, or in the case of married couples either spouse, who has worked
within the City Limits of Dublin continually for one (1) year immediately prior to the date of application for
an lnclusionary Unit.
Dublin Resident: Any person who has lived within the City Limits of Dublin continually for one (1) year
immediately prior to the date or epplication for an Inclusionary unit. Continually shall be construed to
include lapses of residency of no longer than six months.
Dwelling Unit: A dwelling designed for occupancy by one household.
Household: One person living alone; or two or more persons sharing residency whose income is considered
for housing payments.
RUD: The United States Department of Housing and Urban Development or its successor.
Inclusionary Unit: A Dwelling Unit as required by this Chapter which is rented or sold at Affordable Rents
and/or Affordable Sales Prices (as defined by this Chapter) to Very Low, Low, or Moderate Income
Households.
.' Income: The gross annual household income as defined by RUD.
In-lieu Fee: A fee paid to the City by an applicant for a project in the City, in lieu of providing the
Inclusionary Units required by this Chapter.
Life of the Inc1usionarv Unit: A 30 year period from the date of occupancy, which shall be the date the City
of Dublin performs final inspection for the building permit.
Low Income Household: A household whose annual income is more than 50% but does not exceed 80% of
the annual median income for Alameda County, based upon the annual income figures provided by BUD, as
adjusted for househQld size. HUD may establish income limits higher or lower than 80% of the median
income for the area on the basis of its finding that such variations are necessary because of the prevailing
levels of construction costs or unusually high or low family incomes.
Median Income for Alameda County: The median gross annual income in Alameda County as determined
by BUD, adjusted for household size.
Moderate-income households: A household whose annual income is more than 80% but does not exceed
120% of the annual Median Income for Alameda County, based upon the annual income figures provided by
HUD, as adjusted for household size. HOD may establish income limits higher or lower than 120% of the
median income for the area on the basis of its finding that such variations are necessary because of the
prevailing levels of construction costs or unusually high or low family incomes.
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Off-site Inclusionarv units: lnclusionary Units on land within the City of Dublin other than that on which the
applicant intends to construct market rate units.
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Ownership Units: Those lnclusionary Units developed as part of a residential development which the
Applicant intends will be sold, or which are customarily offered for individual sale. .
Proiect owner: Any person, firm, partnership, association, joint venture, corporation, or any entity or
combination of entities which holds fee title to the land on which the project is located.
Proiect: A housing development at one location or site including all dwelling units for which permits have
been applied for or approved.
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Property Owner: The owner of an Inc1usionary Unit, excepting a "Project Owner".
Rental Units: Those Inclusionary Units developed as part of a residential development which the Applicant
intends will be rented or leased, or which are customarily offered for lease or rent.
Recapture Mechanisms: Legal programs and restrictions by which subsidies provided to Inclusionary Units
will be controlled and repaid to the City and/or other entity upon resale, to insure the ongoing preservation
of affordability of Inclusionary Units or to insure funds for Inc1usionary Units remain within the City's
affordable housing program.
Resale Restrictions: Legal restrictions by which the price ofInclusionary Units may be controlled to insure
that the units remain affordable to Very Low, Low, and Moderate Income households on resale.
Silent Second Mortgage: A deed of trust recorded against an lnclusionary Unit which makes the City and/o.
other private or non-profit lender the beneficiary. .
Unit Type: Various dwelling units within a project which are distinguished by number of bedrooms.
Very Low Income Household: A household whose annual income does not exceed 50% of the annual
median income for Alameda County, based upon the annual income figures provided by IllJD, as adjusted
for household size. IllJD may establish income limits higher or lower than SO% of the median income for
the area on the basis of its finding that such variations are necessary because of the prevailing levels of
construction costs or unusually high or low family incomes.
ARTICLE II ZONING REQUIREMENTS
Section 8.24.050. General Requirements/Applicability.
For all new residential development projects of20 units or more, at least 5% of the project's dwelling
units shall be affordable to Very Low, Low, and Moderate Income households. These dwelling units
shall be referred to as "lnc1usionary Units". Inc1usionary Units shall be divided among these income
groups by the following ratios:
2% of the project units must be affordable to Very Low Income households
2% of the project units must be affordable to Low Income households
1 % of the project units must be affordable to Moderate Income households
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The Inclusionary Units required for each income category shall be reserved for rent or purchase by eligible
Very Low, Low, and Moderate Income Households. Projects subject to these requirements include, but are
not limited to, single-family detached dwellings, townhomes, apartments, condominiums, or cooperatives
provided through new construction projects, and/or through conversion of rentals to ownership units.
The percentage ofInclusionary Units required for a particular project shall be determined only once on a
given project, at the time of Tentative Map approval, or, for projects not processing a map, prior to issuance
of building permit. If the subdivision design changes, which results in a change in the number of
Inclusionary Units required, the number of Units required shall be recalculated to coincide with the final
approved project. In applying 4Dd calculating the five (5) percent 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.
An Affordable Housing Agreement, discussed further under Section 8.24.070 of this Chapter, shall be used
to document and further define the terms by which projects subject to this Ordinance will comply with its
requirements.
Section 8.24.060. Unit Provisions and Specifications
A. lnclusionary Units shall be dispersed throughout the project.
B. Inclusionary Units shall be constructed with identical exterior materials and an exterior
architectural design which is consistent with the market rate units in the project.
c.
lnclusionary 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.
D. lnclusionary Units shall remain affordable for thirty years. Deed restrictions shall be recorded
subjecting the Rental Units to maximum rental prices. When Inclusionary Ownership Units are
constructed and offered for sale at a price which will maintain its affordability due to the Unit's
design and size, no Resale Restrictions should be necessary. However, Ownership Units may
require such restrictions recorded with the deed if necessary to address the recapture of value
increases, in situations where units are not sold at substantially lower prices than market rate units,
or when the units may lose affordability as the market changes. For units which require subsidies
to attain an Affordable Sales Price, Resale Restrictions shall be recorded with the deed to
recapture the subsidy upon resale (unless the unit is resold at an Affordable Sales Price and to an
eligible household). The discussion of Resale Restrictions is addressed in Section 8.24.070 of this
Chapter. Prior to the original sale, or any resale, of such Units, the buyer(s) shall sign an
acknowledgment that they are aware of the requirements of this Chapter, any deed restrictions,
and any declaration of conditions, covenants, and restrictions, as applicable.
E. All lnclusionary Units in a project shall be constructed concurrently within or prior to the
construction of the project's market rate units, unless the City Manager determines that
extenuating circumstances exist which render this infeasible (e.g., physical or financial difficulties).
F.
Purchasers of Ownership lnclusionary Units shall be required to occupy the Unit except when
otherwise approved by the City Manager. In order to approve exceptions, evidence must be
presented to the City Manager showing that the owner is temporarily unable to occupy the Unit
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due to extreme circumstances, such as illness or incapacity, or extreme financial hardship. In such
cases, the City Manager may approve rental of the lnclusionary Unit to households meeting the _.
same income level requirements as the owner for a limited time, but in no instance exceeding a .
twelve-month period. If an exception is approved, the City may stipulate whether the unit must
rented to a household of a certain income category, and at an Affordable Rent.
G. In determining the appropriate household size per unit, for purposes of calculating Affordable
Rent or Affordable Sales Price, dwelling Unit Types shall be assigned as follows:
Studio Unit ,,"
One Bedroom Unit
Two Bedroom Unit
Three Bedroom Unit
Four or more Bedroom Unit
One Person
Two Persons
Three & Four Persons
Five Persons
Six or more Persons
H. Dublin residents who are senior citizens (65 years of age or older) shall be given first preference
for IncIusionary Units; Dublin residents who are first-time homebuyers shall have second
preference; other Dublin residents shall have third preference; fourth preference shall be given to
those who need to move to Dublin to be near Dublin residents or services.
Section 8.24.070. Affordable Housing Agreement
An Affordable Housing Agreement shall be entered into by the City and the Project Owner. The Agreement
shall record the method and terms by which a Project Owner shall comply with the requirements of this .":.
Chapter. The approval and/or recordation of this Agreement shall take place prior to final map approval 0 "
where a map is not being processed, prior to the issuance of building permits for such lots or units.
Two types of Agreements shall be used by the City.
1. When an Applicant pays a fee in~lieu of constructing Inclusionary Units, a simple In-Lieu Agreement
form shall be entered into between the Project Owner and the City Manager to document that the
Applicant has chosen the In-Lieu Fee option, and shall be submitted to the Community Development
Department.
2. When an Applicant provides Inclusionary Units constructed with a project, a complete Affordable
Housing Agreement shall be required, to document and further define how these units shall be
provided at Affordable Sales Prices and reserved for purchase by eligible Households, and how the
affordability of the IncIusionary Units will be preserved.
Additional terms and conditions of the Affordable Housing Agreement may be determined at the time of
each project approval and/or at the time the parties enter into the agreement. Further aspects of the
Agreements are discussed below.
A. Rental Units
Applicants of a project which will provide Rental Units shall enter into an Affordable Housing Agreement .
with the City prior to issuance of any building permits for the project, to document and further define how
6
these units shall be provided at Affordable Rents and reserved for rent by eligible Very Low, Low, and
Moderate-Income Households.
e
The City shall prepare an annual statement establishing the maximum rent levels and income limits for each
household income category. These levels may be adjusted by the City at periodic intervals as new tables are
published by the Federal, State, or local government agencies.
The management of Rental Units shall be the responsibility of the Project Owner. The Affordable Housing
Agreement shall require each Project Owner to submit an annual status report to the City Manager in a
fonnat approved by the City, in5k1ding additional infonnation as required by the City. This report may
include, but is not limited to identification of which units are Rental Units, their monthly rents, vacancy
infonnation for the prior year, monthly income for tenants of each Rental Unit throughout the prior year,
and similar infonnation. The Affordable Housing Agreement shall be signed by the City Manager or hislher
designee, shall be recorded, and shall run with the land.
B. Ownership Units
When an Applicant provides Inclusionary Units constructed with a project, the Affordable Housing
Agreement shall document and further define how these units shall be provided at Affordable Sales Prices
and reserved for purchase by eligible Very Low, Low, and Moderate-Income Households, and how the
atTordability of the Inclusionary Units will be preserved.
e-
This Agreement may include, but is not limited to, designation of the Inclusionary Unit sites, schedule of
construction of units, terms and conditions governing the initial sale or rental payments of units,
purchaser/renter qualifications, monitoring of rent/resale, and restrictions on resale where applicable.
The Affordable Housing Agreement for Ownership Units shall specify that the Inclusionary Units must be
occupied by the owner(s) and cannot be rented except upon approval of the City Manager. The Agreement
shall also grant the City the right offirst refusal to purchase an lnclusionary Unit each time it is sold.
Prior to the original sale, or any resale, of an Ownership Unit, the buyer(s) shall sign an acknowledgment
that they are aware of the requirements of this Chapter, the Affordable Housing Agreement, any deed
restrictions, and any declaration of conditions, covenants, and restrictions, as applicable. The Affordable
Housing Agreement shall be signed by the City Manager or hislher designee, shall be recorded, and shall run
with the land.
Mechanisms which may be utilized in the Affordable Housing Agreement for ensuring atTordability for the
Life of the Inclusionary Units include, but are not limited to, the following:
1. Affordable by Design
e
In projects which provide lnclusionary Units at Affordable Sales Prices by virtue of the unit design, no
resale restrictions are necessary. In these situations, an Affordable Housing Agreement is only
required to document the method by which the project has complied with the Ordinance, and to define
or address specific project issues. However, in order to avoid deed restrictions on resale of the Units,
IncIusionary Units must be sold at substantially lower prices than market rate units, and be reasonably
expected to maintain their atTordability as the housing market changes. For units which require
subsidies to attain an Affordable Sales Price, restrictions shall be recorded with the deed to recapture
7
the subsidy upon resale, as described in Section 2 below. The City Council shall detennine whether a
project is Affordable by Design.
2. Recapture Mechanisms
.
In cases where Inclusionary Units are provided at Affordable Sales Prices via project subsidies, the
value of the subsidy shall be recorded with the property deed as a "Silent" Second Mortgage. The
subsidy shall be considered the monetary difference between the initial Affordable Sales Price, and the
initial appraised market value.
".
The Affordable Housing Agreement will state the Affordable Sales Price and target income level at
which Inclusionary Units in a particular project are initially sold, and should be resold. This target
level should coincide with the level which is affordable to the same income category and household
size for which the unit was designated when originally sold. If the unit is resold to a qualifYing
household at an Affordable Sales Price, the second mortgage will be transferred to the new owner. If
the unit is resold at market rate, the Silent Second Mortgage will be paid off.
The amount of the Silent Second Mortgage would be recaptured by the City and/or other financial
entity participating in a shared equity program under the Affordable Housing Agreement. These
recaptured funds will be placed into the affordable housing fund, to be utilized for providing affordable
housing consistent with the intent of this Chapter.
The monthly payments of principal and interest for the subsidy or loan may be waived as long as an
eligible buyer continues to own and reside in the lnclusionary Units as his or her primary residence, or...
unless an exception is approved by the City, in accordance with Section 8.24.060.(F). --
The City Manager or his designee shall be responsible for monitoring the sale, occupancy and resale of
Inclusionary Units.
Section 8.24.080. Alternatives to constructing Inclusionary Units on-site
The requirements of this Chapter may be satisfied by various methods other than the construction of
Inc1usionary Units on the project site. Some examples of alternate methods of compliance appear below.
As housing market conditions change, the City may need to allow alternatives to provide options to
Applicants to further the intent of providing affordable housing with new development projects.
A. Off.Site Projects
Inc1usionary Units required pursuant to this chapter may be allowed to be constructed at a location
within the City other than the project site. Any off-site lnclusionary Units must receive approval of the
City Council and must meet the following criteria:
(1) The off-site Inc1usionary Units must be detennined to be consistent with the City's goal of
creating, preserving, maintaining, and protecting housing for Very Low, Low, and Moderate Income
Households.
.
(2) The off-site Inclusionary Units must not result in a serious concentration ofInclusionary
Units in anyone particular neighborhood.
8
.:;
.
.
.
(3) The off-site Inclusionary Units shall conform to the requirements of all applicable City
Ordinances and the provisions of this Chapter.
(4) The occupancy and rents ofthe off~site Inclusionary Units shall be governed by the terms of a
deed restriction, and if applicable, a declaration of covenants, conditions and restrictions similar to that
used for the on-site lnclusionary Units.
An Affordable Housing Agreement shall be established between the City and Applicant stipulating the
terms of the off-site produclibn of Inclusionary Units. If the construction does not take place at the
same time as project development, the agreement shall require the Units to be produced within a certain
time frame, but in no event longer than 10 years. A cash deposit or bond may be required by the City,
refundable upon construction, as assurance that the units will be built.
B. In-lieu Fee Option
A fee may be paid by an Applicant in lieu of providing Inclusionary Units in the project. This fee must
be paid prior to the issuance of the first building permit for the project. The amount ofIn-Lieu Fees shall
be established by resolution of the City Council. The In-Lieu fee shall be adjusted periodically to reflect
the change in the Consumer Price Index (CPI), and may also be adjusted as necessary for changing
conditions in the City.
C. Land Dedication
An Applicant may dedicate land to the City or a local non-profit housing developer in place of actual
construction ofInclusionary Units upon approval of the City Council. The intent of allowing a land
dedication option is to provide the City or a local non-profit housing developer the free land needed to
make an Inclusionary Unit development feasible, thus furthering the intent of this Chapter.
The dedicated land must be appropriately zoned, buildable, free oftoxic substances and contaminated
soils, and large enough to accommodate the number ofInclusionary Units required for the project. The
City's acceptance of land dedication shall require that the lots be fully improved, with infrastructure,
adjacent utilities, grading, and fees paid.
D. Other flexible solutions
Applicants may propose creative concepts for meeting the requirements of this Chapter, in order to bring
down the cost of providing Inclusionary Units, whether on or off site. The City Council may approve
alternate methods of compliance with this Chapter if the Applicant demonstrates that such alternate
method meets the purpose of this Chapter (as set forth in Section 8.24.030).
Section 8.24.090. Credit Transfers
The requirements of this Chapter may be satisfied by transferring Inclusionary Unit credits from one site to
another, upon approval of the City Council, and as set forth herein. Transfer credits may be created if the
City Council approves issuance of a specified number of Credit Certificates for that number of lnclusionary
Units provided by a particular Project Owner in excess of the minimum required for the project. Credit
Certificates, when approved, shall be issued for the specific Income Category for which the unit is designed,
according to the number of rooms and Affordable Sales Price.
9
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, whether developed by the same .-
Project Owner or another developer. If a Project Owner sells Credit Certificates to another developer, the
parties shall report the transaction to the Community Development Director, who will document the transfer
by Certificate number. When the Credit Certificate is applied to meet the Inclusionary Unit requirement of a
particular project, it shall be recorded at the time of project approval, and the subject Certificates must be
returned to the Community Development Director.
The IncIusionary Units for whicli'a Credit Certificate is sought shall meet all of the criteria of this Chapter.
Credit Certificates issued for specific Income categories may only be used to satisfY the requirements for
Inclusionary Units for the same Income category (Very Low, Low, or Moderate). The City Council shall
detennine the appropriate Income category for each Credit Certificate issued. The lnclusionary Units for
which Credits are granted shall have resale controls applied to ensure their ongoing affordability. Terms of
the Credit Transfer shall be included in the Affordable Housing Agreement.
Section 8.24.100. Inclusionary Housing In-Lieu Fee Fund.
In-lieu Fees shall be deposited into a fund known as the "Inclusionary Housing In-Lieu Fees Fund" ("Fund").
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 through Silent Second Mortgages, land
acquisition, land writedowns, construction, contributions to non-profit associations or corporations for
construction of housing, land banking (including property exchanges) and any other mechanism available to .
the City to provide Very Low, Low, and Moderate income housing.'
The monies in the Fund shall be used or committed to use within seven (7) years of the date of payment into
the Fund. Monies from a particular project which remain unexpended or uncommitted at the end of the
seven year period may be refunded to the then-current Property Owners or Project Owner or may be
contributed to a non-profit association or corporation for the purpose of providing Very Low, Low, and
Moderate income ownership housing in Dublin, at the option of the City Council.
The City Manager shall prepare an annual report for the City Council identifYing the balance of monies in the
Fund and the Inclusionary 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.
Section 8.24.110. Incentives to encourage On-site construction ofInclusionary Units
The City shall consider making available to the Applicant incentives to increase the feasibility of residential
projects to provide Inclusionary Units. Incentives or financial assistance will be offered only to the extent
resources for this purpose are available and approved for such use by the City Councilor City Manager, as
defined below, and to the extent that the Project, with the use of incentives or financial assistance, assists in
achieving the City's housing goals. However, nothing in this chapter establishes, directly or through
implication, a right of an Applicant to receive any assistance or incentive from the City.
Any incentives provided by the City shall be set out in the Affordable Housing Agreement pursuant to .
Section 8.24.070 of this Chapter. The granting of the additional incentives shall require demonstration of
10
exceptional circumstances which necessitate assistance from the City, as well as documentation of how such
incentives increase the feasibility of providing affordable housing,
.
The following incentives may be approved for Applicants who construct lnclusionary Units on-site:
A. Fee Deferral
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 Manag@[, and require Agreement by the Project Owner, prior to any City
Department authorizing deferral.
The City Council, by Resolution may defer payment of City development impact fees applicable to the
lnclusionary Units or the project of which they are a part. Approval of this incentive requires
demonstration by the Applicant that the deferral increases the project's feasibility. The Affordable
Housing Agreement for the project shall document and address the terms of payment and contain
language which assures payment of such fees.
B. Design Modifications
The granting of design modifications shall require the approval ofthe City Council. Modifications to
typical design standards include the following:
.
- Reduced setbacks
_ Reduction in infrastructure requirements
- Reduced open space requirements
- Reduced landscaping requirements
_ Reduced interior or exterior amenities
- Reduction in parking requirements
. Height restriction waivers
C. Priority Processing
A Project which provides Inclusionary Units may be entitled to priority processing, subject to the
approval of the City Manager. A Project eligible for priority processing shall be inunediately assigned to
planning staff and processed in advance of all non-priority items. The Project shall be scheduled for the
next available meeting of the Planning Conunission and/or City Council, upon meeting all submittal and
environmental review requirements. When more than one Project qualifying for priority processing is
applied for at the same time, first priority will be given to the Project whose application was determined
to be complete earlier.
ARTICLE ill
MISCELLANEOUS
Section 8.24.120.
Administration
.' The City Manager may establish guidelines for administering the provisions of this chapter. The City may
contract with the Dublin Housing Authority, the Alameda County Housing Authority, or other entity to
administer any provisions of this chapter.
11
Section 8.24.130. Availability of government subsidies.
The requirements for lnclusionary Units shall not be reduced by the availability of govenunent program
subsidies, nor precluded by the use of such programs and subsidies.
.
Section 8.24.140. Conflict of Interest.
Individuals who, by virtue of their position or relationship, are hereby found to be ineligible to purchase or
rent an Inclusionary Unit as their residence include all employees and officials of the City of Dublin who
have, by the authority of their position, policy making authority or influence affecting City housing
programs, and the Project Applicant and Project Owner.
Section 8.24.150. Violations.
It shall be unlawful for any person, firm, corporation, partnership or other entity 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
Govenunent Code of the State of California.
Section 8.24.160. Enforcement.
.
The City Manager is designated as the enforcing authority. The City Manager may suspend or revoke any
building permit or approval upon finding a violation of any provision of this chapter. The provisions of this
chapter shall apply to all agents, successors and assigns of an Applicant. No building permit or final
inspection shall be issued, nor any development approval be granted which does not meet the requirements
of this chapter.
In the event that it is determined that rents in excess of those allowed by operation of this Chapter have been
charged to a tenant residing in an Inclusionary 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.
Section 8.24.170. Appeals.
Any person aggrieved by any action or determination of the City Manager under this ordinance, may appeal
such action or determination to the City Council in the manner provided in Section 1.04.050 of the
Municipal Code."
Section 2. Severabilitv.
The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is
held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, .
unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses,
12
sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or
circumstances.
.
Section 3. Effective Date and Postin2: of Ordinance
This ordinance shall take effect and be in force thirty (30) days from and after the date of its final adoption. The
City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the
City of Dublin in accordance with Section 39633 of the Government Code of California.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCil- OF THE CITY OF DUBLIN on
this 11 th day of June, 1996, by the following votes:
Ayes:
Noes:
Absent:
Abstain:
.'
Mayor
Attest:
City Clerk
.
g:\pa#\1996\pa96018\1996ord.doc
13
OPTIONS FOR ADMINISTERING ORDINANCE
(FOR INFORMATION ONLY)
.
City financial City staff Time Administered
METHOD OF COMPLIANCE Involvement Involvement By:
.;,
Payment of Fee None Low Staff
In-Lieu of unit construction
Construction of units which are None Low Staff
"affordable by design"
Construction of units with None Moderate Staff/Housing
developer-provided subsidy Authority
to attain affordable prices
Construction of units by Yes Moderate Staff/Housing
developer, with City Authority
subsidy to attain e.:
affordable prices
(i. e. second mortgage)
City participation in Yes High Staff/Housing
affordable housing Authority/
project (Le. using Non-profit
in-lieu fee fund)
g:\pa#\1996\pa960 18\stfrpts\5-28exc.doc
EXHIBIT C.
.:
SAMPLES OF CITY PROGRAMS OFFERING DEFERRED FEES
.
The City of Cupertino may utilize available government housing funds to create a greater percentage of affordable
units and may additionally undenvrite land and site improvements should a developer agree to develop affordable
units in excess of the minimum percentage requirement. The City also waives inspection, park dedication, and
similar fees for the "Below Market Rate" units.
Danyille allows applicant to request modification of standards or waiver where it is shov-.'ll as necessary to make the
project fmancially feasible. Submittal of a proforma is required to demonstrate the need, and if an incentive or fee waiver
is granted, it is considered a direct subsidy by the City.
.'~
City of Monterey allows developers to request incentives to increase the fmancial feasibility of a project. Incentives
include modifications to standards, as well as fee reductions or \,.aivers. The City uses specific criteria in deciding
whether to grant a request for an incentive.
The City of Petaluma exempts assisted housing for very low and low income households within new developments
from portions of development fees as specified by the City Council. To date, all fees for below-market rate units
have been waived or have been offset with in-lieu funds.
Pleasanton considers fee waivers on an "ad-hoc" basis when projects provide more than 25% of the project units at
affordable levels. All or a portion of City building pernlit fees may be waived, and some off-site improvement fees
may be deferred. Submittal of a proforma is required to demonstrate the need for deferrals or waivers.
City of San Mateo may elect to contribute City funds to compensate for specified development fees for new BMR (Below
Market Rate) units. City contributions shall not exceed the amount of one-half the amount of normal development fees
. (application and impact fees) for the affordable units.
Santa Barbara County offers incentives for development of affordable units on-site, rather than paying the in-lieu fee.
The deferred payment of fees applies to processing fees, and the schedule permits payment of30% of the fees up front,
and 70% prior to public hearing on the project. If a developer exceeds the required percentage of inc1usionary units on
site, a reduction in impact or processing fees may be granted.
...
City of Santa Monica waives development impact fees for Parks & Recreation, and waives Condominium and
Cooperative Tax, when inc1usionary units are constructed.
The City of Santa Rosa allows deferred development impact fees for all units in the project, with an agreement between
the developer and the City defining the terms of payment prior to issuance of building permit, and allowing possible six-
month e:\."tension of the fee payment until sale of the each unit. The deferred fees are secured by a deed of trust and title
insurance in favor of the City.
City of Sunnyyale offers waivers of City-imposed development impact fees for below-market rate units when the City
determines a project to be eligible. The City offers technical and financial assistance, such as CDBG funds, to applicants
for defraying the cost of certain off-site improvements (to the extent that the use of such funds is consistent with the
applicable federal regulations and policies).
Town of Tiburon may waiver certain development fees applicable to the inc1usionary units of a proposed
development, to encourage the provision of affordable units.
.
The City of Woodland allows developers to apply for development impact fee deferrals and/or waivers, and requires
the City Council approval of the deferral.
Y ountville's ordinance allows certain fees for inclusionary units to be waived, with City Council approval.
g:PA96-0 18\5-28EXD
EXHIBIT D
Regular Meeting May 7, 1996
A regular meeting of the City of Dublin Planning Commission was held on Tuesday, May 7, 1996, in the
Dublin Civic Center City Council Chambers. The meeting was called to order at 7:30 by Commissioner
Jennings.
**** * *****
ROLL CALL
: I
Present: Commissioners Jennings, Geist, and Johnson; Eddie Peabody, Community Development Director;
Tasha Huston, Associate Planner and Gaylene Burkett, Recording Secretary.
Absent: Commissioners Lockhart and Zika
**** * *****
PLEDGE OF ALLEGIANCE TO THE FLAG
Cm. Jenning~ led the Commission, Staff, and those present in the pledge of allegiance to the flag.
**** * *****
ADDITIONS OR REVISIONS TO THE AGENDA
The minutes of the Special Study Session of April 8, 1996, and the Regular Meeting of April 16, 1996, were
approved as submitted. One change was made to April 16, 1996 meeting minutes, page 32. A notation was
added regarding a comment made by Commissioner Jennings about her meeting with Matt Koart prior to the
April 16, 1996 Planning Commission meeting.
**** * *****
ORAL COMMUNICA TIONS
None
**** * *****
WRlTTEN COMMUNICATIONS
None
**** * *****
PUBLIC HEARJNG
None
NEW OR UNFINISHED BUSINESS
9.1
PA 96-018 City of Dublin Inclusionary Zoning Ordinance. The City Council and
Planning Commission have held two special study sessions on the City's Affordable
Housing Program, and have provided staff with direction on several major issues related to
the Inclusionary Zoning Ordinance. The draft Ordinance will be reviewed by the Planning
Commission and a recommendation will be made to the City Council.
Cm. Jennings asked for the staff report.
----------...------------------
Regular Meeting
[S-7pcmi)
40
May 7.1996
EXHIBIT E
.
.
-.
.
Tasha Huston, Associate Planner, presented the staff report. She gave a brief history on what has led us up to
this meeting, She stated that the lnclu~ionary Zoning Ordinance was developed in response to the direction
from City Council and the Planning Commission at two previous study session meetings. She responded to
two questions that were raised during the previous study session. One question was in regards to offering
deferral of City impact fees and the other question was the option for administering the Ordinance. She gave
the 8 major components of the proposed Ordinance. I) It is required that 5% of the units in the new
residential pr.ojects must be affordable to very low, low and moderate incomes; 2) the Inclusionary unit
requirements will apply to both rental and ownership projects; 3) in order to maintain long term affordability,
some restrictions and recapklre mechanisms will be necessary; 4) options will be available for developers to
meet the Ordinance requirements; 5) incentives will be available to encourage Inclusionary units to be
constructed; 6) the City will use the Department of Housing and Urban Development data to determine
affordability; 7) an affordable housing agreement approved by the City Manager will demonstrate how a
project complies with the requirements of the Ordinance; and 8) the chapter was not intended to replace any
provisions of the City's Density Bonus Ordinance or any other City Ordinances. She showed on an over head
exhibit of cities which allow fee deferral and reduction or waivers in.lieu of building affordable units. She
also showed on an overhead the options for administering the Ordinance. She stated that the proposed
Ordinance was written so that if an applicant requested a deferred processing fee the approval of that request
would need to be granted by the City Manager. If the applicant was requesting deferral of development
impact fees that would have be approved by the City Council. She stated that in both of these cases a fee
payment agreement would have to be entered by the developer to establish the method for payment and
recovering costs for projects that were not completed. She explained some options available for
administering the Ordinance. In the initial stages of implementation the City Staff time would be minimal.
She stated that they expect most developers would choose to pay the fee in lieu of constructing the units. If
development projects do construct units, the City would need to monitor the provisions of those affordable
units. Evenmally when the City generates funds through developer contributions of the in-lieu fees, the City
would need to determine the best use of the funds. She stated that a non profit housing developer may have
the administration capacity to run the program. She stated City Staff recommended that monitoring
compliance with the Ordinance should be handled by City Staff. City Staff recommended the Planning
Commission adopt Resolution No. 96.14 recommending City Council adopt the Negative Declaration and
approve oft11e draft Inclusionary Zoning Ordinance.
.
Cm. Geist asked about options for people who own an Inclusionary unit but are unable to occupy for more
than one year,--
Ms. Huston stated that the City Manager would have to determine if it was an extreme fmancial hardship
case, but there is a clause stating the City Manager may approve rental of the units to households meeting the
same income qualifications.
Cm. Geist asked if there could be an exemption to the 12 month period?
Ms. Huston stated that the clause stating the City Manager may approve the rental could apply to the
exemption to the 12 month period,
Cm. Jennings opened the public hearing.
Matt Koart, Kaufman & Broad asked about the concept of affordability by design built in to the Ordinance. If
the market rate for homes were substantially below the maximum affordable price, what would be referred to
as substantially below market and would that be considered at the City Council level? Also, what about
partial compliance if a developer meets the moderate income or the low income category.
.
Ms. Huston responded to Mr. first question. She stated that the Inclusionary units must be maintained as the
housing market changes and that was what was referred to as substantially lower prices. The units would not
expect to increase in value where they would lose their afford ability to that income category.
Regular Meeting
[5- 7pcmi]
41
May 7,1996
Eddie Peabody, Community Development Director stated we would have to establish guidelines in
administering this Ordinance. There would have to be some very specific definitions on how the program
would operate.
.
Ms. Huston, in response to Mr. Koart's second question, stated that how the City addressed partial
compliance with the Ordinance would be covered in the administrative guidelines, or that it may be
addressed, ala different time, such as in the Affordable Housing Agreement.
Mr. Koart responded that ti,cause this was an important issue, maybe the Ordinance should mention it
Cm. Jennings asked for any other comments from the public. Cm. Jennings asked Staff to make a note of the
issues raised by Mr. Koart, to be addressed when the Ordinance was administered. Cm. Jennings closed the
public hearing.
On motion by Cm. Geist, seconded by Cm. Johnson, and with a vote of3-0, with Cm. Lockhart and
Cm. Zika absent, the Planning Commission unanimously adopted
Resolution No. 96-14
APPROVING PA 95-018
RECOMMENDING CITY COUNCIL ADOPTION OF A
NEGATIVE DECLARATION AND
APPROVAL OF AN INCLUSIONARY ZONING ORDINANCE
.:.-.
10. OTHER BUSINESS (Commission/Staff Informational Onlv Reports)
10.1 Staff discussion on upcoming projects and Commission scheduling. (next three month
probable agenda items)
Mr. Peabody gave a brief summary of the upcoming projects that will be brought before the Planning
Commission. He gave the Commissioners a copy of our agenda to review of upcoming projects.
Cm. JelUlings asked about flood control maps from FEMA, when would they be available?
Mr. Peabody' stated very soon, we were working on them now. It will be coming before the City Council
sometime in June.
10.2 Staff discussion on possible new project Planning Commission field trip.
Mr. Peabody asked the Planning Commission if they had an interest in a field trip throughout the various
Cities showing the similar projects that would either be coming before the Planning Commission or have
already been approved by the Planning Commission.
Cm. Johnson stated it was OK with him.
.
Cm. Geist and JelUlings agreed.
Regular Meeting
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May 7,1996
.
Mr. Peabody asked if June 8, IS, or 22 would be OK
June 15 was good for Cm. Jennings Cm. Johnson and Cm. Geist, Mr. Peabody would talk to the other two
Commissioners on their availability. .
Cm. Johnson stated he was at the cleaners at the San Ramon Village Plaza and talked to a couple of truck
drivers who left their big rigs parked there and they said there was no place to park large trucks if they live in
Dublin. One. driver suggested the City have parking permit to park in an industrial area during the night hours
and the City could get tl1~venue. If they park on Sierra Court, they get a ticket now, but that seems like a
better place than the Lucky's parking lot. One driver said he lives in Dublin, but his warehouse was in San
Jose, and it was a shame to have to drive late at night to San Jose, just to park the truck for the night. Cm.
Johnson asked Staff to look in to some options.
Mr. Peabody stated he would look in to the issue.
Mr. Peabody asked about availability at the next few Planning Commission meetings due to the large
agenda's. Cm. Jennings will be out of town June 4, 1996.
ADJOURNMENT
The meeting was adjourned at 8:05 p.m.
Respectfully submitted,
."
Planning Commission Chairperson
ATTEST:
Community Development Director
.
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Regular Meeting
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May 7,1996