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HomeMy WebLinkAboutItem 8.2 - 2851 Overview of the City’s Inclusionary Zoning Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: October 1, 2019 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Overview of the City’s Inclusionary Zoning Regulations Prepared by: Jim Bergdoll, Senior Planner EXECUTIVE SUMMARY: The City Council will receive an informational report on the City of Dublin’s Inclusionary Zoning Regulations in comparison with the similar regulations in other Tri -Valley jurisdictions. STAFF RECOMMENDATION: Receive the report. FINANCIAL IMPACT: There is no fiscal impact associated with receiving this report. DESCRIPTION: On June 18, 2019, the City Council requested that Staff prepare an informational report that compares key provisions of the City’s Inclusionary Zoning Regulations (DMC Chapter 8.68) with those of the Tri-Valley cities of Livermore, Pleasanton, San Ramon and the Town of Danville. The City’s Inclusionary Zoning Regulations serve to assure that new housing development contributes to the attainment of the City’s housing goals by increasing the production of residential units affordable to households of very -low, low and moderate incomes. These Regulations prescribe the methods to satisfy this requirement. The following is a brief overview of the City’s Inclusionary Zoning Regulations: · All new residential development projects of 20 units or more shall construct 12.5% of the total number of dwelling units within the development as affordable deed restricted units. · The term of affordability restrictions is 55 years from the date of initial occupancy. Page 2 of 3 · Affordable units shall be allocated to households with very -low, low and moderate income levels as follows: Rental Units Owner-Occupied Units Very-low income households 30% 0% Low income households 20% 40% Moderate income households 50% 60% · The City Council may grant incentives to encourage the production of additional affordable units in excess of the required 12.5%. Such incentives include, but are not limited to, the following: o Processing fee deferral o Impact fee deferral o Design modifications to affordable units that increase the feasibility of construction, such as relaxing development standards, open space requirements, and amenities, and reduced parking requirements. · The following exceptions to the Inclusionary Zoning Regulations may be granted with approval by the City Council: o Payment of In Lieu Fees: An applicant may pay fees in-lieu of constructing up to 40% of the required inclusionary units. The in-lieu fee is $197,253 per affordable unit and is adjusted annually based on the larger of the increases in either the HUD Fair Market Rent Limits for the Oakland- Fremont Metropolitan Area, or the change in the Bay Area Urban Consumer Price Index. o Off-Site Projects: An applicant may construct some or all of the required affordable units at an off-site location. o Land Dedication: An applicant may dedicate land to the City or City- designated local non-profit housing developer in lieu of construction some or all of the required affordable units o Credit Transfers: An applicant may fully or partially satisfy their affordable requirement with the transfer of Affordable Unit Credits created by the City Council. o Waiver of Requirements. The City Council may waive, in whole or in part, the affordable requirements, and approve alternative methods of compliance which the City Council finds meets the purpose of the Inclusionary Zoning Regulations. Attachment 1 provides a comparison of the City’s Inclusionary Zoning Regulations with those of the other Tri-Valley jurisdictions. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. Page 3 of 3 ATTACHMENTS: 1. Inclusionary Zoning Regulations Summary Table by Tri-Valley Jurisdiction Inclusionary Regulations Summary Table by Tri-Valley Jurisdiction (updated 9/13/2019) Dublin Danville Livermore Pleasanton San Ramon Projects subject to regulations 20+ units 8+ units 2+ units 15+ units 2+ units # of affordable units as a % of total project 12.5% 8-19 units or < 7 units/acre: 10% 20+ units or >7 units/acre: 15% 15% except: 10% in Downtown. Rental exempt outside of Neighborhood Plan areas or Downtown Single-family: 20% Multi-family: 15% Single-family: 10% Multi-family: 15% (including attached ownership) Payment in-lieu of constructing units (Fee charged) May pay in-lieu fee for max. 40% of requirement. ($197,253/affordable unit) <13 units/acre may pay in-lieu fee with Council approval. (No set fee) 10 units or less may pay in- lieu fee by right. 11+ units may pay in-lieu fee with Council approval. ($25.37/total sq. ft. within overall project) May pay in-lieu fee: Single-family detached ($44,248/each unit within overall project). Multi-family ($43,293/each unit within overall project) 9 units or less may pay in-lieu-fee ($12.50/total sq. ft.) 10+ single-family units may pay in-lieu fee. ($15.00/total sq. ft. within overall project) # years restricted 55 (Rental/Owner) 20 (Rental/Owner) 55 (Rental/Owner) (Ownership: Term resets at resale) In perpetuity from the date of occupancy Rental: 55 Owner: 30 (Ownership: Term resets at resale) Income Levels Rental: 30% very-low; 20% low; 50% moderate Ownership: 40% low; 60% moderate Rental: Determined case by case. Ownership: Determined case by case Rental: 50% very-low; 50% low Ownership: 50% low; 50% moderate Rental/Ownership multifamily: very-low/low (determined case by case) Ownership single-family: very-low/low/moderate (determined case by case) Rental: 50% very-low; 50% low Ownership multifamily: 20% low; 30% very-low; 50% moderate Ownership single-family detached: Moderate Incentives For increased affordability: -Design modifications -Processing fee deferral -Impact fee deferral For affordability: -Design modifications -Fee waivers -Priority processing -Fee waivers (affordable units) or deferral For on-site construction: -Design modifications -2nd mortgage/subsidy -Priority processing -Fee waiver/deferral For all projects: -Design modifications -Priority processing Exceptions Land dedication Off-site construction In-lieu fees Credit transfers Waiver of requirements In-lieu fees ADUs Land dedication Off-site construction In-lieu fees ADUs (20% credit only) Land dedication Off-site construction In-lieu fees Credit transfers Land dedication Off-site development Rental units in ownership project Waiver of requirements In-lieu fees