HomeMy WebLinkAboutPCReso02-43 PA01-038 Rec to CC Muni Code Amend AffrdHsng RESOLUTION NO. 02 - 43
A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF DUBLIN
RECOMMENDING THAT THE CITY COUNCIL ADOPT AMENDMENTS TO CHAPTER 8.68
OF THE DUBLIN MUNICIPAL CODE RELATING TO HOUSEHOLD INCOME,
AFFORDABLE HOUSEHOLD PRIORITIES AND LAND DEDICATION REQUIREMENTS
PA 01-038
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, the City Council has adopted major changes to the Inclusionary Zoning Regulations
of the City Ordinance; and
WHEREAS, on May 21, 2002 the City Council instructed Staff to provide further definition for a
land dedication option for developers to fulfill the Inclusionary Ordinance requirements, and
WHEREAS, on further review by Staff of Bay Area Inclusionary Ordinances and standard
industry underwriting criteria revealed that the percentage of household income directed toward housing
costs for ownership units may be higher than 30% and therefore allow for more lower income households
to qualify for affordable units, and
WHEREAS, the City of Dublin Housing Task Force reviewed the priorities established in the
current Inclusionary Ordinance and made recommendations for changing these priorities; and
WHEREAS, the Planning Commission did hold a public hearing on this matter on November 26,
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 no
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 26th day
of November 2002, by the following votes:
Page 1
AYES: Cm. Johnson, Jennings, Musser, Fasulkey and Nassar
NOES:
ABSENT:
ATTEST:
Planning~l~anager
Planmng Commission Chairperson
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Page 2
EXHIBIT A
NOVEMBER 26, 2002
PROPOSED AMENDMENTS TO
CHAPTER 8.68 INCLUSIONARY ZONING REGULATIONS
8.68.010. Purpose. The purpose of this chapter is to:
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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.
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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
.~.,,l~^'~,,~,,. ........... v,.:.i.,.~l,o~ housing expenses that do not exceed gO 35% of income level for very-
low-, low-, and moderate-income households, adjusted for household size and as defined
below.
"Applicant" means any person, firm, partnership, 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.
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"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.
"Low income" means more than 50% to 80% of the median income, adjusted for actual
household size.
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"Moderate income" means more than 80% to 120% of the median income, adjusted for actual
household size.
"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 55 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.
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"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
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12.5% Affordability Requirement. All new residential development projects of 20 units or more
designed and intended for permanent occupancy shall construct 12.5% 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.
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
50%
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.
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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 12.5% Affordability Requirement. Developers of projects subject to 8.68.030.A
construct 12.5% 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.
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 40% 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.
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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).
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Land Dedication. An applicant may dedicate land to the City or city-designated local non-profit
housing developer in lieu of construction of some or 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.
that the dedicated land 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 proposed land dedication is of sufficient size to meet the following
requirements:
the dedication includes land sufficient to construct the number of units that the
applicant would otherwise be required to construct by Section 8.68.030.A, based
on the size of lots in the subdivision for which the applicant is meeting its
obligation; and
in addition, the dedication includes such additional land the market value for
which is equal to or exceeds the difference between the value of a market-rate,
1200-square foot unit and the price at which such a unit could be sold as an
Affordable Unit ($72,176) times the number of units required.
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.
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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.
A.
General Procedures for Implementing Inclusionary Zoning Requirements
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.
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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
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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.
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.
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 using the point system
described below:
5. Other
· Employed within the boundaries of the City of Dublin (3 points, one per household)
· Dublin resident (3 points, one per household)
· Seniors (1 point, one per household)
· Permanently disabled (1 point, one per household)
To qualify as "Employed within the boundaries of the City of Dublin", the person shall have been
employed with the City of Dublin for at least six months.
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 12.5% 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:
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 10t 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.
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8.68.080. lnclusionary Zoning In-Lieu Fee Fund. In-lieu Fees shall be deposited into a fund known as
the "Inclusionary Zoning In-Lieu Fees Fund" ("Fund").
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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.
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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.
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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.
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