Loading...
HomeMy WebLinkAboutReso 128-01 InLieuFeePolicyRESOLUTION NO. 128 - 01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN RESOLUTION APPROVING POLICIES AND GUIDELINES FOR USE OF THE INCLUSIONARY HOUSING IN-LIEU FEES FUND WHEREAS, in 1996, the City Council adopted the Inclusionary Housing Ordinance requiring that all new residential developments (ownership and/or rental projects) containing twenty (20) or more units be affordable to very low, low and moderate income households; and WHEREAS, Section 8.68.080 B. of the Inclusionary Zoning Regulations of the Zoning Ordinance provides the option of paying a fee in-lieu of constructing Inclusionary Units ("In-Lieu Fee"); and WHEREAS; Section 8.68.100 B. of the Inclusionary Zoning Regulations establishes how the Inclusionary Housing In-Lieu Fees Fund 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; and WHEREAS, on February 6, 2001, the City Council adopted the Affordable Housing Implementation Program that sets forth funding options and program options for purposes of providing affordable housing for specified target groups in Dublin; and WHEREAS, on June 19, 2001 and July 17, 2001, the City Council reviewed and considered all staffreports and recommendations submitted regarding the policies and guidelines for use of the City's housing in-lieu fees incorporating the strategies and funding allocation methods of the Affordable Housing Implementation Program. NOW, TItEREFORE, BE IT RESOLVED that the Dublin City Council does hereby find that the Inclusionary Housing In-Lieu Fee Fund policies and guidelines are consistent with the stated purpose and objectives of the City's Zoning Ordinance, Municipal Code and the General Plan. AND, BE IT FURTHER RESOLVED that the Dublin City Council does hereby resolve as follows: Section 1: The City Council adopts the policies and guidelines for use of the Inclusionary Housing In-Lieu Fee Fund as set forth in Exhibit "A", attached hereto and incorporated herein by this reference. Section 2: This resolution shall become effective immediately upon its passage and adoption. PASSED, APPROVED AND ADOPTED this 17th day of July, 2001. AYES: Councilmembers Lockhart, McCormick, Oravetz, Zika and Mayor Houston NOES: None ABSENT: None ABSTAIN: None / ~,/~ity Clel'k K2/G/7-17-01/reso-inlie -~ousing. doc (Item 4.5) GShousing~inclusionary\ccreso inlieufee implementation POLICIES AND GUIDELINES FOR USE OF THE CITY OF DUBLIN INCLUSIONARY HOUSING IN-LIEU FEES FUND Uses of the Inclusionary Housing In-Lieu Fees Fund The City Council has established an approved program list for which housing in-lieu Fees shall be allocated. Approved Program Types Dublin's in-lieu fees shall be leveraged in the following priority given toward the following approved program types: 1. Acquisition-Rehabilitation 2. New Construction of affordable multi-family units 3. Down-payment assistance 4. Rental Assistance "Leveraging" is the method by which the City matches in-lieu fees from the Housing In- Lieu Fee Fund toward approved Program types. Specifically the City will match, dollar for dollar, state, federal, or other private funds or provide a lump sum based on specific program guidelines. Summaries of each program type are described below: Acquisition-Rehabilitation Acquisition-Rehabilitation refers to the mechanism by which units can be acquired, rehabilitated, and reserved for very Iow-income and low-income target group households. New Construction of Affordable Multi-Family Units New Construction of affordable Multi-Family Units involves the payment of costs, including fees, associated with new construction of multi-family rental units for "Very Low Income" and/or "Low Income" target group households and/or ownership housing for moderate income households. Down-Payment Assistance Down-Payment assistance involves providing a subsidy in the form of a silent second mortgage or closing cost assistance aimed at helping a family purchase a new dwelling unit. Once the dwelling unit is resold, the initial down-payment assistance subsidized by EXHIBIT A the City would be returned to the City and used again for the inclusionary unit's new buyer. Rental Assistance Rental assistance would be provided by the City in the form of short-term grants to agencies that are working to prevent homelessness and provide interim and/or transition support for target households. ACQUISITION-REHABILITATION AND NEW CONSTRUCTION OF AFFORDABLE MULTI-FAMILY UNITS General Policies and Guidelines for Leveraging Dublin's In-Lieu Fees toward Acquisition-Rehabilitation and New Construction of Affordable Multi-Family Units. For acquisition-rehabilitation projects, in-lieu funds may be used towards the purchase of. existing market-rate units or affordable housing units in which prior affordability provisions are at risk of termination or expiration and where the objective is to maintain or prolong housing affordability. Units that have been rehabilitated using the City's in- lieu fees shall be exclusively affordable to lower income renters. For new construction of affordable multi-family units, the City Council may determine to leverage in-lieu fees for multi-family residential projects where the provision of inclusionary units is a possibility. The developer of residential multi-family projects for which construction of inclusionary units were required as a condition of project approval would be able to receive financial assistance through the leveraging of in-lieu fees only by submitting a written request to and obtaining approval from the City Council. The City will leverage in-lieu fees toward acqUisition-rehabilitation and new construction projects based on the following criteria: · Number of affordable units in proportion to the number of overall units in a project Per Unit Cost · Term of Affordability Architecture and quality of design · Target groups served with respect to City preferences · Long-Term maintenance and management of affordable units · Project Mix Number of Affordable Units in Proportion to the Number of Overall Units Projects shall be weighted according to the number of affordable units that are provided in proportion to the overall project. In-lieu fees will not be given to a housing developer that only meets the minimum percentage of inclusionary housing units required. Per-Unit Cost The City shall assess affordable housing projects based on the efficiency of proposed projects. Those projects that provide a lower-per unit cost while meeting or exceeding target group goals and preferences and maintaining architectural design standards shall be given priority in relation to other similar projects. Term of Affordability Affordable units acquired and rehabilitated or constructed using in-lieu fees should be affordable for a period no less than 30 years. The City encourages permanently affordable unit project submittals. Those projects with permanently affordable units shall be given consideration over projects with shorter terms of affordability. Architecture and Quality of Design Applicants requesting in-lieu fees for affordable housing projects shall maintain the same high standards with respect to design characteristics and quality that the City demands for its market rate unit projects. Target Groups Served With Respect to City Preferences The following target groups are listed in order of preference for acquisition-rehabilitation and new construction of affordable multi-family construction projects: Acquisition-RehabilitatiOn This program shall serve the following target households whose income does not exceed 80% of the County median income. If more than one request for funding is received at a time, priority will be given to applications/proposals that best serve the target groups and order of preference listed below: 1. Dublin Residents who are seniors 2. Residents of Dublin who are permanently disabled 3. Residents of Dublin and non-residents who are members of Dublin's workforce (City personnel, Dublin police officers, Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in Dublin) 4. Families with children; that currently reside in Dublin 5. Other Dublin Residents 6. Non-Resident Seniors 7. Non-Resident Disabled Persons 8. Other Non-Residents Applicants requesting in-lieu fees for acquisition-rehabilitation projects should incorporate how their develoPment proposals will serve the target groups. Projects that serve a variety of the target groups are encouraged, but those projects that exclusively serve a target group will be evaluated based on the order of preference listed for each target group type. For example, acquisition-rehabilitation projects that exclusively serve seniors will be given more weight than acquisition-rehabilitation projects that exclusively serve Members of Dublin's Workforce. New Construction of Multi-Family Units Based on ABAG's f'mal Regional Housing Needs Determination allocation for Dublin, 30% of the units will be dedicated to very low-income households; 20% to low-income households; and 50% to moderate-income households. If more than one request for funding is received at a time, priority will be given to applications/proposals that best serve the target groups and order of preference listed below for rental units and ownership units: Rental Units 1. Dublin Residents who are seniors 2. Residents of Dublin who are permanently disabled 3. Residents of Dublin and non-residents who are members of Dublin's workforce (City personnel, Dublin police officers, Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in Dublin) 4. Families with children; that currently reside in Dublin 5. Other Dublin Residents 6. Non-Resident Seniors 7. Non-Resident Disabled Persons 8. Other Non-Residents For-Sale Units 1. Residents of Dublin who are First-Time home buyers and members of Dublin's workforce (City personnel, Dublin police officers, Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in Dublin) 2. Residents of Dublin who are First-Time home buyers 3. Other Dublin Residents 4. Non-Residents of Dublin who are First-Time home buyers Long-Term Maintenance and Management of Affordable units Priority shall be given to projects that effectively demonstrate how the affordable units and overall project will be maintained and managed over a minimum ora thirty-year period. Prqject Mix Priority shall be given to projects that include affordable units mixed with market rate units. DOWN-PAYMENT ASSISTANCE AND RENTAL ASSISTANCE General guidelines for using Dublin's in-lieu fees for down-payment assistance and rental assistance programs shall follow the strategy outlined in the Affordable 'Housing Implementation Program for each respective program. The City, on an annual basis, shall approve and allocat~ funding for a down-payment assistance program. Provision of funds for this program shall provide financial assistance in the form of second mortgage loans with deferred and/or below market interest payments to supplement the financing needed to acquire a home loan. The guidelines and criteria for determining an eligible homebuyer shall be established for each down- payment assistance program that shall be approved on an annual basis. On an annual basis, the City shall distribute a Notice of Funds Availability for the rental assistance program and award grants to chosen agencies. Target Groups Served With Respect to City Preferences The down-payment assistance program shall serve the following target groups that are listed in preferential order: 1. Residents of Dublin who are First-Time home buyers or members of Dublin's workforce (City personnel, Dublin police officers, Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in Dublin) 2. Residents of DUblin who are First-Time home buyers 3. Other Dublin Residents 4. Non-Residents of Dublin who are First-Time home buyers Fifty percent of the funds alloCated to rental assistance programs shall serve those persons whose income level falls below 50% of the area median income. The remaining 50% of allocated funds shall serve those persons whose income level is between 50% and 80% of the County median income. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM If deemed appropriate, the City Council may establish a target or cap each year for the amount of the Housing Fund that may be made available'to supplement'the City's Community Development Block Grant (CDBG) Program. This cap shall be determined in conjunction with the annual CDBG funding allocation process. DIRECT FINANCIAL ASSISTANCE Direct financial assistance shall be given to projects or activities that are related to one or more of the program options described in the Affordable Housing Implementation Program (e.g., assistance to housing development corporations, non-profit associations, equity participation loans, grants, subsidization, participation leases, loans to develop affordable housing or other public/private partnership arrangements). CITY COUNCIL APPROVAL ~QUIRED The use of housing in-lieu funds for any activity shall be subject to review and approval by the City Council on a case-by-case basis to ensure consistency with Chapter 8.68 of the Dublin Zoning Ordinance and with the housing in-lieu fund policies and guidelines. The application of the housing in-lieu fund policies shall similarly be subject to the provisions and requirements of Chapter 8.68. As a condition of funding for any individual case, the City Council may require the execution of an agreement between the City and the beneficiary to establish standards and restrictions for the use of housing in- lieu funds; commitments to use the funding for its intended purpose, provisions for rePayment of funds (e.g., upon resale of property), etc. G:\housing\implementation program\program guidelines