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HomeMy WebLinkAboutItem 6.2 AffordHousInLieuFees CITY CLERK File # 430-20 & 450-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 7, 2002 SUBJECT: PUBLIC HEARING - PA 01-038 & PA 01-014, Amendments to the Inclusionary Zoning Regulations and adopting-an Affordable Housing Priority Areas Policy and amendments to In-Lieu Fees Report Prepared by: Eddie Peabody Jr., Community Development Director ATTACHMENTS: 1. City Council Resolution No. 182-01 expressing the 'City Council's intent to amend the City of Dublin Inclusionary Housing Ordinance as currently codified in Dublin Municipal code Chapter 8.68 2. Ordinance amending Chapter 8.66 of the Dublin Municipal Code related to the Inclusionary Zoning Regulations as recommended by Staff consistent with City Council Resolution 182-01 3. Planning Commission recommendations that the City Council adopt an Ordinance Amending Chapter 8.66 of the Dublin Municipal code related to the Inclusionary Zoning Regulations with revisions to Staff recommendations 4. Memorandum to City Council from Planning Commission regarding consideration of waiving fees 5. City Council Resolution No. 131-01 6. Resolution amending Resolution No. 131-01 establishing the method for determining the amount of Housing In-lieu fees 7. Chart comparing Livermore and Pleasanton Affordable Housing requirements with proposed Dublin requirements 8. Planning Commission Resolution No. 02-22 recommending that the City Council adopt an Affordable Housing Priority Area Policy 9. Resolution adopting an Affordable Housing Priority Area Policy as noted in Exhibit A. COPIES TO: Inclusionary Work Group In-House Distribution g APA\01-038\ccsr 5 -7 ~~' ITEM NO. ~ RECOMMENDATION: 1. Open public hearing 2. Receive Staff presentation 3. Receive public comment 4. Close public hearing 5. Deliberate 6. Waive the reading and introduce Ordinance as recommended by  Staff (Exhibit A to Attachment 2) amending Chapter 8.66 of the Dublin Municipal Code related to the Inclusionary Zoning Regulations, in accordance with City Council Resolution 182-01, and setting the 2nd reading for May 21, 2002; or 7. Waive the reading and introduce Ordinance as recommended by planning Commission (Exhibit B to Attachment 3) amending Chapter 8.66 of the Dublin Municipal Code related to the Inclusionary Zoning Regulations and setting the 2nd reading for May 21, 2002. 8. Adopt Resolution (Attachment 6) amending Resolution 13 !-01 establishing the method for determining the amount of Housing In-lieu fees. 9. Adopt Resolution (Attachment 9) adopting an Affordable Housing Priority Area Policy as noted in Exhibit D to Attachment 9 10. Review Planning Commission memorandum to City Council regarding waiver of development fees for affordable units (Attachment 4) FINANCIAL STATEMENT: Increase in In-lieu fees for affordable housing units and developer subsidies to construct mandated affordable housing units in place of market priced housing DESCRIPTION: At the June 5, July 17 and October 16, 2001 City Council meetings, Staff was instructed to review the present Inclusionary Zoning Ordinance regulations and the General Plan as they relate to affordable housing requirements. The City Council adopted Resolution No. 182-01 on July 17, 2001 expressing the City's intent to increase the percentage of affordable units and related changes to the Inclusionary Zoning Ordinance in'an amount not to exceed 15% of all new housing units and to prohibit in-lieu fees for more than one-half of the affordable inclusionary units. Such changes will require amendments to the City's Housing Element and the Inclusionary Zoning Ordinance. Since August 2001, Staff has been working with an Inclusionary Work Group that included representatives from the home building community, non- profit housing industry and community activists. City Council members Oravetz and McCormick were added to the Work Group in November 2001 to ensure City Council review. On March 5, 2002 the City Council reviewed the proposed Inclusionary Zoning Ordinance changes and In-lieu fee changes and instructed Staff to set public hearings on the changes. This report describes the proposed new Inclusionary Zoning Ordinance amendments, in-lieu fees and a new Affordable Housing Priority Area Policy. BACKGROUND: The present Inclusionary Zoning Ordinance is as follows: 1. All new residential projects of 20 or more units must set aside 5% of the units as affordable units for 30 years. (Sections 8.68.050; 8,68.060.) 2 2. The 5% requirement is broken down as follows: 2% for Very low-income households, 2% for low-income households and 1% for moderate-income households. (Section 8.68.050.) 3. The Ordinance applies to both ownership .and rental projects. (Section 8.68.050.) 4. Affordability must be ensured by agreements recorded against the property. (Section 8.68.070.) 5. A developer may meet the obligation in ways other than on-site construction of affordable units. (Section 8.68.80.) The options include (a) off-site construction (Section 8.68.080(A)); (b) payment of an "in-lieu" fee, which the Council set as $2 square foot for single-family and $1.50/square foot for multifamily (Section 8.68.080(A), Resolution No. 131-01; (c).land dedication (Section 8.68.080(C)); (d) other creative ways if approved by the City Council (Section 8.68.080(D)); and (e) purchase of credits from another developer who constructed more than its share of affordable units (Section 8.68.090). 6. Incentives can be offered to developers who construct inclusionary units on-site. (Section 8.68.110.) Incentives include (a) deferral of both processing fees and development impact fees if deferral will increase the project's feasibility (8.68.110(C)(1)); (b) design modifications (Section 8.68.110(C)(2)); and (c) priority processing (Section 8.68.110(C)(3)). 7. Affordable units may be smaller and may have fewer amenities (e.g., fireplaces, garbage disposals, dishwashers, cabinet and storage space, and more than one bathroom) than market rate units. (Section 8.68.060(C).) Since August 2001, staff has worked with the Inclusionary Ordinance Work Group to explore various alternative changes to the Ordinance in line with the City Council directives of last summer and fall. Issues discussed included: 1. Determination of the percentage of very low, low and moderate housing required as a part of required affordable housing. 2. Which future projects would be subject to new Inclusionary requirements 3. Other options if on-site affordable housing cannot be built (off-site construction, land and other possibilities) 4. In-lieu fee requirements and methods of determining fair methods of evaluating market versus affordable costs; fixed fee approach and differential fees based on higher fees for very low and low income units versus moderate income units. Additional discussions regarding new ordinance changes focuSed on: 1. What role requirements on new housing would have in relationship to possible non-residential housing fees (commercial linkage) that were being studied at this time 2. The experience of Inclusionary Zoning requirements of nearby cities (Livermore, Pleasanton, Union City, etc.) in requiring new affordable units and the level of their in-lieu requirements. 3. At what point would the required affordable housing construction costs and in-lieu fee payments make new projects economically infeasible 4. Various proposals for reasonable in-lieu fees that might address the difference between the market cost to build a certain size unit and the costs to build the same size unit to meet affordable housing requirements. Proposed Inclusionar~ Ordinance Changes as Recommended by Staff With the assistance of the City Attorney, a draft new Inclusionary Zoning Ordinance and proposed in-lieu fee structure was developed and reviewed by the Inclusionary Ordinance Work Group on January 22, 2002. The City Council also reviewed the proposed changes at their March 5, 2002 meeting. The features of this ordinance and fee resolution are as follows: 3 1. All new residential projects of 20 or more units must construct 15% of the total number of dwelling units as affordable for 30 years. 2. Affordable units shall be provided as follows: · 30% very low income households · 20% low income households · 50% moderate income households 3. A fee in-lieu of building one-half of the required affordable units may be paid. 4. If affordable units cannot be built on-Site, the City Council may allow: · Land dedication to the City or City designated local non-profit housing developer large enough to accommodate the numbers of required affordable units; · Construction of the affordable units off-site in a City Council approved site; · Waive requirements and approve alternative methods of compliance; 5. Affordable units shOuld be made available to qualified persons based on the City's Affordable Housing Program (see page 4 of draft ordinance) 6. Incentives to encourage on-site construction of affordable units in excess of 15% of the total units may be offered and approved by the City Council (deferred fees, design modifications, priority processing). Planning Commission Recommendation The Planning Commission at its April 23, 2002 meeting, voted 3-1 to recommend that the City Council adopt the Inclusionary Ordinance with specific changes to the Staff recommended Ordinance (Attachment 3) as follOws: 1. The Planning Commission recommended reducing the inclusionary unit requirement from 15% to 10% with 7½% must-build requirement and 2½ % for in-lieu fees. Exhibit A to Attachment 3 of the staff report contains the revisions proposed by the Planning Commission. 2. The Planning Commission recommended revisions to Section 8.68.030 paragraph E, last sentence, "All affordable units s~a!! will be reasonably dispersed throughout the project. 3. The Planning CommisSion recommended inclusion of the word "shall" in the first sentence of Section 8.68.040: "Exceptions to !~o/~ 10% Affordability Requirement. DevelOpers of projects subject to 8.68.030.A shall construct 15% 10% 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." 4. The Planning Commission recommended revisions to Section 8.68.040 paragraph A as follows: "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 ~.a!f one quarter 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." 4 Additional Recommendation by Planning Commission to the City Council via Memorandum The Planning Commission also instructed staff to include a brief memo (Attachment 4) to the City Council regarding their concern that consideration should be given by the City to waive the required processing and development impact fees (Section 8.68.070 (A 1 & 2)) for affordable units as an incentive to produce the units. Staff reviewed the requirements of the Eastern Dublin Specific Plan and Development Fee Resolutions that presently mandate that all development be required to pay these charges. Given the present mandates, the Planning Commission voted 3-1 to bring this issue to the Council's attention. Staff Response to Planning Commission Memorandum: It is City of Dublin policy that all new development pay for the impacts that it creates in the community. This is also the policy included in the Eastern Dublin Specific Plan. Approval of the Planning Commission recommendation would not only be inconsistent with City policy and inconsistent with the Eastern Dublin Specific Plan, but also would result in the City's General Fund paying the development impact fees that have been waived or there will be insufficient funding to build the required infrastructure. Staff's recommended Ordinance does give the City Council the ability to defer City processing fees as well as defer payment of impact fees. Proposed In-Lieu Fee The present Resolution No. 131-01 adopted by the City Council in July 2001 is based on a square foot charge per market rate unit: · $2.00 per square foot for a single-family unit · $1.50 per square foot for a multi-family unit This in-lieu fee allows developers to pay a fee rather than build affordable units. These fees have been collected but no housing has been produced. The premise for the proposed new in-lieu fee was based on these conclusions: 1. The new ordinance will mandate 15% of the units as affordable (7 ½% must-build units). A substantial cost will be paid by the developer to build these units and subsidize the difference between market and affordable price (3 bedrooms). Example of 1,200 square foot for sale unit Total cost to build $277,468 Potential sale prices to $205,292 affordable families based on weighted average of moderate (50%), low (20%), very low (30%) maximum sales prices Subsidy per unit by developer $ 72,176 2. In addition to the required 7.5% must-build affordable unit, the developer may elect to pay an in-lieu fee for the remainder of the 7.5% required units. The 7.5% subsidy for built units and the proposed in-lieu fee should not be so high as to eliminate the ability of the developer to construct the project. 3. The City should adopt an in-lieu fee that is simple to explain and administer now. More detailed evaluations of in-lieu fee changes can be made in the future when more experience with market/affordable construction costs can be obtained. The Work Group concluded that a simple comPutation for the in-lieu fee be based on an approach patterned by several cities, including Livermore, be used. It would be based on the following: 1. The difference between market costs to construct a unit for sale of 1,200 square feet and the price needed for an affordable moderate-income family of four to purchase that unit. 2. Based on the difference between his market cost for the 1,200 square foot and the affordable moderate-income purchase price, the developer could not pay the total difference (estimated at 26% of the total cost of the unit) for all remaining market units. 3. The difference between market cost/affordable purchase price for the remaining required 7.5% affordable units would be more appropriate; so the figure of $72,176 per unit for the remaining 7.5% of inclusionary required units is recommended. A detailed comparison of the proposed in-lieu fee coupled with the required 7.5% mandatory affOrdable units is shown in Attachment 7. A large-scale comparison of the present and proposed inclusionary zoning ordinance affordable unit/in-lieu fee calculations is as follows: 2000 total single-family new units to be built in the future, with an average square footage of 2,000 per unit >' Present Ordinance 5%-required, but in-lieu fee allowed No affordable units built 2,000 square foot unit multiplied by $2.00 a square foot at 2,000 units = $8,000,000 in-lieu fees ~ Proposed Ordinance 7.5% required units - 150 new affordable units (50% moderate, 20% low, 30% very low) In-lieu fee: 7.5% of required units =$10,826,400 150 x 72,176 per unit The advantage of the proposed new in-lieu fee coupled with the new 7.5% required new affordable units is: The 7.5% of new units will be built. 6 · In-lieu fees will approximate present in-lieu fees. · Developers can avoid in-lieu fees if they build the full 15% of total units. Affordable Housing Priority Area Policy At the July 17, 2001 City Council meeting, the City Council also approved an action to establish priority areas for affordable housing in new developments in the City. As a result of Council's action, Staff has reviewed undeveloped and underdeveloped land subject to the new Ordinance and, concurrently, has begun to prepare the Land Inventory chapter for the General Plan 2002 Housing Element. Staff has prepared a policy and map of priority areas for affordable housing in new developments in the City of Dublin for Council consideration (Exhibit D to Attachment 9). The Priority Area Policy includes: · Purpose and Definition of Priority Areas for Affordable Housing · What Criteria Should Be Used · How City Staff Would Work with the Development CommunitY The policy for Priority Areas for Affordable Housing would encourage affordable units to be built in the following areas: · Sites without entitlements under the Subdivision Map Act or other approval, as of October 16, 2001. · ' Sitos with approved medium, medium high, and high-density residential and/or commercial sites that allow mixed-use development, pursuant to the Dublin General Plan, specific plans, or amendments. (The Policy may include areas that are subject to pre-zoning and annexation.). · Locations near public transportation, including Wheels bus service and BART. · Locations near service, including grocery stores, other retail, schools, hospitals, parks, etc., to reduce dependence on automobiles, to reduce development costs associated with parking facilities, to encourage inexpensive and nonpolluting alternative transportation~ to provide efficient care to City of Dublin residents, including seniors and disabled persons, and to provide public open space amenities to multi family housing residents. · Sites convenient to job centers to promote a balance of jobs and housing. In practice, the Priority Areas for the Affordable Housing Policy would apply to projects in the following ways: · The Inclusionary Zoning Ordinance applies to all residential developments of 20 units or more, including but not limited to the areas represented on the Affordable Housing Priority Areas map. · Projects of 20 units or more proposed for Priority Area sites - or sites approved for medium, medium high and high-density residential and/or commercial sites that allow mixed-use development - would be encouraged to provide all of the required 15% Inclusionary units on site. · For projects of 20 units or more proposed for sites with low density, rural residential/agriculture and/or single-family residential use, which are areas that are not identified as Priority Areas, Staff would encourage the developer to provide required Inclusionary Units on site, as well as explore alternatives available to the applicant, as provided in the Inclusionary Zoning Ordinance. · A statement describing the affordable housing component of a project would be a requirement of all applications for residential development of 20 units or more. Planning Commission Recommendation The Planning Commission at its April 23, 2002 meeting recommended that the City coUncil adopt this Policy. RECOMMENDATION: Staff recommends that the City Council conduct a public hearing, deliberate and: 1. Waive the reading and introduce Ordinance as recommended by Staff (Exhibit A to Attachment 2) amending Chapter 8.66 of the Dublin Municipal Code related to the Inclusionary Zoning Regulations, in accordance with City Council Resolution 182-01, and setting the 2nd reading for May 21, 2002; or 2. Waive the reading and introduce Ordinance as recommended by Planning Commission (Exhibit B to Attachment 3) amending Chapter 8.66 of the Dublin MUnicipal Code related to the Inclusionary Zoning Regulations and setting the 2nd reading for May 21, 2002. 3. Adopt Resolution (Attachment 6) amending Resolution 131-01 establishing the method for determining the amoUnt of Housing In-lieu fees 4. Adopt Resolution (Attachment 9) adopting an Affordable Housing Policy as noted in Exhibit D to Attachment 9. 5. Review Planning Commission memorandum to City CoUncil regarding waiver of development fees for affordable Units (Attachment 4) g:\pa\O 1-038\ccsr 5-7 RESOLUTION NO. 182 - 01 A RESOLUTION OF THE CITY COUNCIL O1' ~ CITY OF DUBLIN EXPRESSING ~ CITY COIJNCIL'S INTENT TO AMEND THE CITY OF DUBLIN INCLUSIONARY HOUSING ORDINANCE, AS CURRENTLY CODIFIED IN DUBLIN MUNICIPAL CODE CHAPTER 8.68 WHEREAS, the City of Dublin Inclusionary Zoning Ordinance (Chapter 8.68 of the Municipal Code) currently provides as follows: 1. That all new residential projects of 20 or more units must restrict 5% of the units as affordable units for 30 years. (Sections 8.68.050; 8.68.060.) 2. · That the 5% restriction is broken down as follows: 2% must be for very low income households, 2% must be for Iow income households and 1% must be for moderate income households. (Section 8.68.050.) 3. That a developer may meet its obligation in ways other than on-site construction of affordable units. (Section 8.68.080.) The options include (a) off-site construction (Section 8,68.080(A)); (b) payment of an "in lieu" fee, which the Council set as SI/square foot for single family and $.75/sqUare foot for multifamily (Section 8.68.080(A); (c) land dedication (Section 8.68.080(C)); (d) other creative ways if approved by the Council (Section 8.68.080(1))); and (e) purchase of credits from another developer who constructed more than its share of affordable units (Section 8.68.090); and WHEREAS, the City Council has indicated its intent to amend the lnclusionary Zoning Ordinance to establish a city-wide affordable housing goal in an amount not to exceed 15% of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordable/inclusionary units, as previously expressed in Resolution No. 132-01, adopted by the City Council on July 17, 2001; and WHEREAS, the intended changes to the Inclusionary Zoning Ordinance grew out of the Council's consideration of the Affordable Housing Implementation Program at meetings on February 1, 2000, October 3, 2000, February 6, 2001, June 5, 2001, June 19, 2001, and July 17, 2001. The proposed increase in the affordable housing goal is based on information developed through the Affordable Housing Implementation Program and the meetings at which it was considered. Furthermore, the contemplated amendments would help the City meet its state-mandated affordable housing goals; and · WHEREAS, the City Council's intent in adopting this resolution is that subsequent amendments to the Inclusionary Zoning Ordinance shall apply to applications for discretionary approvals submitted or deemed· complete after the adoption of this resolution and approved after the effective date of the amendments; and WHEREAS, the City Council adOpts this resolution, in part, pursuant to and in satisfaction of the req~ments of California Government Code Section 66474.2(b). ATTACHMENT[ NOW, THEREFORE, BE IT RESOLVED, that the City hereby imends to amend the Inclusionary Zoning Ordinance (Municipal Code Chapter 8.68) to establish a city-wide affordable housing goal in an amount not to exceed 15% of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordable/inclusionary units. PASSED, APPROVED AND ADOPTED this 16th day of October 2001, by the following vote: AYES: Cotmcilmembers Lockhart, McComick, Oravetz, Zika and Mayor Houston NOES: None ABSENT: None "~ MAYOR VC f CL aC Staff Recommendations ORDINANCE NO. - 02 AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 8.68 OF THE DUBLIN' MUNICIPAL CODE RELATING TO INCLUSIONARY ZONING REGULATIONS The City Council of the City of Dublin does hereby ordain as follows: Section 1. Findings: The City of Dublin finds that: A. The citizens of Dublin are experiencing a housing shortage for very low-, low- and moderate-income households. B. 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. C. Persons with very low, low, and moderate incomes that currently live and/or work in the City are increasingly unable to locate housing at prices they can afford, and often become excluded from living in the City. D. Federal and State housing subsidy programs are insufficient by themselves to satisfy the housing needs of very low-, low- and moderate-income households. E. The high cost of newly constructed housing does not, to any appreciable extent, provide ' housing affordable by very low-, low-, and moderate~income households, and continued new development that does not include affordable housing will serve to further aggravate the current housing shortage by reducing the supply of developable land. F. It is a public purpose of the City, and a public policy of the State as mandated by the requirements for a housing element of the City's General Plan, to make available an adequate supply of housing for persons of all economic segments of the community. Section 2. Amendment of Chapter 8. 68: Chapter 8.68, entitled "Inclusionary Zoning Regulations," of the Dublin Municipal Code is amended to read as set forth in Exhibit A. Section 3. Compliance with California Environmental Quality Act ("CEQA '~): The City Council declares that this ordinance is exempt from CEQA based on the following findings: This ordinance is not a "project" within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential for resulting in physical change in the environment, directly or ultimately. This ordinance does not, in itself, allow the construction of any building or structure. This ordinance, therefore, has no potential for resulting in physical change in the environment, directly or ultimately. Section 4. Severability: In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. Section'5: Savings Clause: All code provisions, ordinances, and parts of ordinances in conflict with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same subject matter shall be construed as restatements ATTACHMENT and continuations thereof and not as new enactments. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this ordinance, under any chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. Section 6. Effective Date and Posting of Ordinance: This ordinance shall take effect and be in force thirty (30) days from and after the date of its passage: The City Clerk of the CitY of Dublin shall cause the Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED AND ADOPTED BY the City Council of the City of Dublin, on this 21st day of May 2002, by the following votes: AYES: NOES: ABSENT: ABSTAIN: MAYOR ATTEST: CITY CLERK G:pa\01-038\ccord Exhibit A CHAPTER 8.68 INCLUSIONARY ZONING REGULATIONS 8.68.010. Purpose. The purpose of this chapter is to: A. 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. B. 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: A. "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. 1. 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. 2. Owner-occupied units are deemed affordable units if the sales price results in annual mortgage payments that do not exceed 30% of maximum income level for very-low-, low-, and moderate-income households, adjusted for household size and as defined below. B. "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. D. "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. 1. "Very-low income" means 50% or less of the median income, adjusted for actual household size. 2. "Low income" means more than 50% to 80% of the median income, adjusted for actual household size. 3. "Moderate income" means more than 80% to 120% of the median income, adjusted for actual household size. E. "Resale controls and/or rent restrictions" means legal restrictions by which the affordable units shall be restricted to ensure that the unit remains affordable to very-low-, low-, or moderate-income households, as applicable, for a period of not less than 30 years. With respect to rental units, such rent restrictions shall be in the form of a regulatory agreement recorded against the applicable property. With respect to owner-occupied units, such resale controls shall be in the form of resale restrictions, deeds of trust, and/or other similar documents recorded against the applicable property. F. "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 A. 15% Affordability Requirement. All new residential development projects of 20 units or more designed and intended for permanent occupancy shall construct 15% of the total number of dwelling units within the development as affordable units, except as otherwise provided by this chapter. The foregoing requirement shall be applied no more than once to an approved development (and generally at the tentative map stage), regardless of the changes in the character or ownership of the development, provided the total number of units does not change. In applying and calculating the affordability requirement, any decimal fraction less than or equal to 0.50 may be disregarded, and any decimal fraction greater than 0.50 shall be construed as one unit. B. 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. C. 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. D. 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. 7-5' E. Design and Distribution of Affordable Units. All affordable units shall reflect the range of numbers of bedrooms provided in the project as a whole and shall not be distinguished by exterior design, construction, or materials. Affordable units may be of smaller size than the units in the project and may have fewer amenities than the market rate units in the project. All affordable units shall be reasonably dispersed throughout the project. 8.68.040. Exceptions to 15% Affordability Requirement. Developers of projects subject to 8.68.030.A shall construct 15% of the total number of dwelling units within the development as affordable units, unless subject to an exception set forth in this section. All exceptions require City Council approval, which shall be obtained at or prior to the last discretionary approval for the project. A. Payment of Fees In-Lieu of Creation of Affordable Units. Upon request of the applicant, the City Council shall permit the applicant to pay a fee in lieu of constructing up to half of the affordable units that the developer would otherwise be required to construct pursuant to section 8.68.030.A. The amount of the fee shall be as set forth in a resolution of the City Council, which may be amended from time to time to reflect inflation and changed conditions in the City and the region. In-lieu fees shall be paid at and the time and in the amount set forth in the in-lieu fee resolution in effect at the time of issuance of the building permit. B. 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: 1. 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. 4. 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 restridtions similar to that used for the on-site affordable units. 5. 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). C. 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: 1. 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. 2. that the dedicated land is large enough and appropriately zoned to accommodate the number of units that the applicant would otherwise be required to construct by section 8.68.030.A, is useable for its intended purpose, is free of toxic substances and contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading, and all development-impact fees paid excluding any inclusionary zoning ordinance fees. 3. that the developer has provided or will provide adequate security that the number of units that the applicant would otherwise be required to construct pursuant to 8.68.030.A will be constructed on the dedicated land. D. 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. E. Waiver of Requirements. The City Council, at its discretion, may waive, wholly or partially, the requirements of this ordinanCe and approve alternate methods of compliance with this chapter if the applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of this chapter. 8.68.050. General Procedures for Implementing Inclusionary Zoning Requirements A. 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. B. Rental Units; Occupancy; Annual Report. Agreements involving rental units shall require the owner of the affordable units to ensure that the units are occupied by tenants whose monthly income levels do not exceed moderate income levels and shall preclude tenants from subletting or subleasing the unit. The agreement shall also require the owner of the affordable unit to submit an annual report to the City Manager, in a format approved by the City. The report shall include, but not be limited to the following information: an identification of the affordable units within the project; the monthly rents charged and proposed to be charged; vacancy information for the prior year; and the monthly income for tenants of each affordable unit throughout the prior year. C. 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 fight to purchase any affordable owner-occupant unit at the maximum price that could be charged to an eligible household. D. Selection Criteria. No household shall be permitted to occupy a unit that is required under this chapter to be affordable unless the City or its designee has approved the household's eligibility. 4 Eligible potential occupants of affordable units will be qualified on the basis of household income, the median combined household income statistics for Alameda County published periodically by the California Department of Housing and Community Development, all sources of household income and assets, the relationship between household size and the size of available units, and any further criteria required by law. The developer shall use an equitable selection method established in conformance with the terms of this chapter. The selection criteria may not distinguish between adults and children. Selection of qualified person should be based on priorities established in the City's Affordable Housing Program as noted below: 1. Dublin residents that are seniors 2. Dublin residents that are permanentlY disabled 3. Dublin residents and non-residents who are members of Dublin's workforce 4. Dublin residents with children 5. Other Dublin residents 6. Non-residents that are' seniors 7. Non-residents that are permanently disabled 8. Other non-residents. To qualify as a "Dublin resident," the person shall have been a resident of the City of Dublin for at least a one-year period prior to the eligibility determination. 8.68.060. Affordable Unit Credits. A. 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. B. Ownership and use of credits. Affordable unit credit certificates are issued to and become the possession of the project owner, who may then use them to satisfy the requirements of this chapter for another project in the City. If a project owner proposes to sell credit certificates, the parties shall first obtain the consent of the Community Development Director, who will document the transfer by certificate number. 8.68.070. Incentives to Encourage On-Site Construction of Affordable Units. The City may, but shall not be required to, offer incentives or financial assistance to encourage the on-site construction of affordable units in excess of 15% of the total number of units in the project to the extent resources for this purpose are available and approved for such use by the City Council or City Manager. Such incentives may include; but shall not be limited to, the following: A. Fee Deferral. 1. 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. 2. 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. B. Design Modifications. The City Council may approve design modifications to affordable units that increase the feasibility of the construction of affordable units, including but not limited to, the following: 1. Reduced lot size. 2. Reduced setback requirements. 3. Reduced open space requirements. 4. Reduced landscaping requirements. 5. Reduced interior or exterior amenities. 6. Reduction in parking requirements. 7. Height restriction waivers. 8.68.080. Inclusionary Zoning In-Lieu Fee Fund. In-lieu Fees shall be deposited into a fund known as the "Inclusionary Zoning In-Lieu Fees Fund" ("Fund"). A. 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. B. 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 6 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. A. 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. B. 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. Planning Commission Recommendations ORDINANCE NO. - 02 AN ORDINANCE OF THE CITY OF DUBLIN AMENDING CHAPTER 8.68 OF THE DUBLIN MUNICIPAL CODE RELATING TO INCLUSIONARY ZONING REGULATIONS The City Council of the City of Dublin does hereby ordain as follows: Section 1. Findings: The City of Dublin finds that: A. The citizens of Dublin are experiencing a housing shortage for very low-, low- and moderate-income households. B. 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. C. Persons with very low, low, and moderate incomes that currently live and/or work in the City are increasingly unable to locate housing at prices they can afford, and often become excluded from living in the City. D. Federal and State housing subsidy programs are insufficient by themselves to satisfy the housing needs of very low-, low- and moderate-income households. E. The high cost of newly constructed housing does not, to any appreciable extent, provide housing affordable by very low-, low-, and moderate-income households, and continued new development that does not include affordable housing will serve to further aggravate the current housing shortage by reducing the supply of developable land. F. It is a public purpose of the City, and a public policy of the State as mandated by the requirements for a housing element of the City's General Plan, to make available an adequate supply of housing for persons of all economic segments of the community. Section 2. Amendment of Chapter 8. 68: Chapter 8.68, entitled "Inclusionary Zoning Regulations," of the Dublin Municipal Code is amended to read as set forth in Exhibit A. Section 3. Compliance with California Environmental Quality Act ("CEQA "): The City Council declares that this ordinance is exempt from CEQA based on the following findings: This ordinance is not a "project" within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential for resulting in physical change in the environment, directly or ultimately. This ordinance does not, in itself, allow the construction of any building or structure. This ordinance, therefore, has no potential for resulting in physical change in the environment, directly or ultimately. Section 4. Severability: In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other s~ections or portions hereof shall remain in full force and effect. Section 5: Savings Clause: All code provisions, ordinances, and parts of ordinances in conflict with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same subject matter shall be construed as restatements ATTACHMENT 3 and continuations thereof and not as new enactments. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this ordinance, under any chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, fight, liability or appeal. Section 6. Effective Date and Postin~ of Ordinance: This ordinance shall take effect and be in force thirty (30) days from and after the date of its passage. The City Clerk of the City of Dublin shall cause the Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED AND ADOPTED BY the City Council of the City of Dublin, on this 21st day of May 2002, by the following votes: AYES: NOES: ABSENT: ABSTAIN: MAYOR ATTEST: CITY CLERK G:pa01-038\pc recomm ord to cc Exhibit A CHAPTER 8.68 INCLUSIONARY ZONING REGULATIONS 8.68.010. Purpose. The purpose of this chapter is to: A. 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. B. 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: A. "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. 1. 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. 2. Owner-occupied units are deemed affordable units if the sales price results in annual mortgage payments that do not exceed 30% of maximum income level for very-low-, low-, and moderate-income households, adjusted for household size and as defined below. B. "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. D. "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. 1. "Very-low income" means 50% or less of the median income, adjusted for actual household size. 2. "Low income" means more than 50% to 80% of the median income, adjusted for actual household size: 3. "Moderate income" means more than 80% to 120% of the median income, adjusted for actual household size. E. "Resale controls and/or rent restrictions" means legal restrictions by which the affordable units shall be restricted to ensure that the unit remains affordable to very-low-, low-, or moderate-income households, as applicable, for a period of not less than 30 years. With respect to rental units, such rent restrictions shall be in the form of a regulatory agreement recorded against the applicable property. With respect to owner-occupied units, such resale controls shall be in the form of resale restrictions, deeds of trust, and/or other similar documents recorded against the applicable property. F. "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 A. ~ Affordability Requirement. All new residential developm~ projects of 20 units or more ~i~ned and intended-for permanent occupancy shall construct i~i~ 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. B. 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. C. 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. D. 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. 2 E. 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 umts ~ be reasonably dispersed throughout the project. 8.68.040. Exceptions to 19~ Affordabfilty Requirement. Developers of proJects subject to 8.68.030.A construct '~ of the total number of dwelling units within the developn~ent 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. A. Payment of Fees In-Lieu of Creation of Affordable Units. Upon request of the ~plicant, the City Councd shall permit the apphcant to pay a fee ~n heu of constructing up to g 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. B. 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: 1. 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. 4. 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. 5. 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). C. Land Dedication. An applicant may dedicate land to the City or city-designated local non-profit housing developer in lieu of construction of some of all of the required affordable units, if the council finds that: 1. that dedication of land in-lieu of constructing units is consistent with the chapter's goal of creating, preserving, maintaining, and protecting housing for very-low, low- and moderate- income households. 3 2. that the dedicated land is large enough and appropriately zoned to accommodate the number of units that the applicant would otherwise be required to construct by section 8.68.030.A, is useable for its intended purpose, is free of toxic substances and contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading, and all development-impact fees paid excluding any inclusionary zoning ordinance fees. 3. that the developer has provided or will provide adequate security that the number of units that the applicant would otherwise be required to construct pursuant to 8.68.030.A will be constructed on the dedicated land. D. 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. E. Waiver of Requirements. The City Council, at its discretion, may waive, wholly or partially, the requirements of this ordinance and approve alternate methods of compliance with this chapter if the applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of this chapter. 8.68.050. General Procedures for Implementing Inclusionary Zoning Requirements A. 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. B. Rental Units; Occupancy; Annual Report. Agreements involving rental units shall require the owner of the affordable units to ensure that the units are occupied by tenants whose monthly income levels do not exceed moderate income levels and shall preclude tenants from subletting or subleasing the unit. The agreement shall also require the owner of the affordable unit to submit an annual report to the City Manager, in a format approved by'the City. The report shall include, but not be limited to the following information: an identification of the affordable units within the project; the monthly rents charged and proposed to be charged; vacancy information for the prior year; and the monthly income for tenants of each affordable unit throughout the prior year. C. ~ 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. D. Selection Criteria. No household shall be permitted to occupy a unit that is required under this chapter to be affordable unless the City or its designee has approved the household's eligibility. 4 Eligible potential occupants of affordable units will be qualified on the basis of household income, the median combined household income statistics published periodically by the California Department of Housing and Community Development, all sources of household income and assets, the relationship between household size and the size of available units, and any further criteria required by law. The developer shall use an equitable selection method established in conformance with the terms of this chapter. The selection criteria may not distinguish between adults and children. Selection of qualified person should be based on priorities established in the City's Affordable Housing Program as noted below: 1. Dublin residents that are seniors 2. Dublin residents that are permanently disabled 3. Dublin residents and non-residents who are members of Dublin's workforce 4. Dublin residents with children 5. ' Other Dublin residents 6. Non-residents that are seniors 7. Non-residents that are permanently disabled 8. Other non-residents. To qualify as a "Dublin resident," the person shall have been a resident of the City of Dublin for at least a one-year period prior to the eligibility determination. 8.68.060. Affordable Unit Credits. A. 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. B. Ownership and use of credits. Affordable unit credit certificates are issued to and become the possession of the project owner, who may then use them to satisfy the requirements of this chapter for another project in the City. If a project owner proposes to sell credit certificates, the parties shall first obtain the consent of the Community Development Director, who will document the transfer by certificate number. 8.68.070. Incentives to Encourage On-Site Construction of Affordable Units. The City may, but shall not be required to, offer incentives or financial assistance to encourage the on-site construction of affordable units in excess of 15% of the total number of units in the project to the extent resources for this purpose are available and approved for such use by the City Council or City Manager. Such incentives may include, but shall not be limited to, the following: A. Fee Deferral. 1. 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. 2. 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. B. Design Modifications. The City Council may approve design modifications to affordable units that increase the feasibility of the construction of affordable units, including but not limited to, the following: 1. Reduced lot size. 2. Reduced setback requirements. 3. Reduced open space requirements. 4. Reduced landscaping requirements. 5. Reduced interior or exterior amenities. 6. Reduction in parking requirements. 7. Height restriction waivers. 8.68.080. Inclusionary Zoning In-Lieu Fee Fund. In-lieu Fees shall be deposited into a fund known as the "Inclusionary Zoning In-Lieu Fees Fund" ("Fund"). A. 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. B. 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. A. 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. B. Excessive rents/legal action. If the City Manager determines that rents in excess of those allowed by operation of this chapter have been charged to a tenant residing in an affordable unit, the City may take appropriate legal action to recover, and the project owner shall be obligated to pay to the tenant, or to the City in the event the tenant cannot be located, any excess rents charged. 8.68.110. Appeals. Decisions of the City Manager under this Chapter may be appealed as provided in Chapter 8.136. g: pa\01-038\pc recom ord to cc Community Development Department Planning Division MEMORANDUM DATE: April 30, 2002 TO: City Council FROM: Planning Commission SUBJECT: Additional Remarks - Amendments to the Inclusionary Zoning Regulations/City Council meeting of May 7, 2002 In addition to the specific recommendations made by the Planning Commission regarding this Ordinance change to the City Council; this memo approved by a 3-1 vote at the Planning Commission meeting of April 23, 2002 is transmitted to you for your consideration. The majority of the Planning Commission members present wish to express their concern that the City Council consider waiving the required processing and development impact fees (Section 8.68.070 A 1 & 2) for all affordable units that would be built within a development as an incentive to the developer to produce these units. The majority opinion felt that this reduction in fees would greatly reduce the difference in the costs of market units versus affordable unit construction. Staff did review the present mandated requirements for fees now required by the Eastern Dublin Specific Plan and the potential consequences of waiving these fees on other present & future development in Eastern Dublin. Notwithstanding, the Planning Commission voted to bring this issue to the Council's attention. G:\pa01-038~rnemo to cc re fee waiver ATTACHMENT 4 RESOLUTION NO. 131 - 01 A RESOLUTION OF THE CITY COUNCIL ' OF THE CITY OF DUBLIN AMENDING RESOLUTION NO. 57-97 ESTAB!J.qH1NG THE METHOD FOR DETERMINING THE AMOUNT OF HOUSING IN-LIEU FEES (PA 01-014) WHEREAS, on luly 9, 1996, the City Council adopted Ordinance 14-96, the Inclusionary Zoning Ordinance; and WHEREAS, Section $.24.080 (B) of the proposed Inciusionary Zoning Ordinance provided the option of paying a fee in-lieu of constructing Inclusionary Units ("In-Lieu Fee"), and stated that the City Council shall establish the mount of the In-Lieu Fee by resolution; and wHEREAS, the City Council on June 11, 1996, adopted Resolution 80-96 establishing a method for determining the amount of the In-Lieu Fee; and WHEREAS, the City Council on ]~anuary 21, 1997, directed Statfto prepare a revised me~hod for determining the ~mount of the In-Lieu Fee whereby the fee will be charged only for habitable areas of residences, specifically excluding garages and that the in-lieu fee be paid for each dwelling unit at the time the building permit is issued for that dwelling unit; and WHEREAS, on May 20, 1997, the City Council approved an amendment to the Inclusionary Zoning Ordinance revising the methodology for determining the amount ofthe In-Lieu Fee for each residential development project (City Council Resolution No. 57-97); and WHEREAS, a Negative Declaration of Environmental Impact was prepared pursuant to the California Environmental Quality Act (CEQA), State CEQA Guidelines, and the City of Dublin CEQA Guidelines, and - was adopted for the Inclusionary Zoning Ordinance on June 11, 1996; and WHEREAS, the Negative Declaration adopted on June. 11, 1996, addressed all impacts of the Inclusionary Zoning Ordinance, which includes the in-lieu fee option, and the Inclusionary Zoning Ordinance amendments 0fMay 20, '1997, addressing the in-lieu fee methodology revisions; and WltEREAS, on February 6, 2001, the City Council approved the Affordable Housing Implementation Plan (AI-IIP) that sets forth policy guidelines and programs for funding and developing affordable housing in Dublin; and WHEREAS, the AHIP includes a funding option of doubling the City's current housing in-lieu fee mount to $2.00 per square foot for single family detached units, and $1.50 per square foot for multi- family attached units; and WHEREAS, at the Febmaxy 6, 2001 City Council meeting, the City Council directed staffto amend Resolution No. 57-97 establishing the methodology for determining the amount of in-lieu fees whereby the existing fee ($.75 cents per square foot for each multi-family unit and $1.00 per square foot for each single family unit) Would be doubled; and WHEREAS, Pure,ant to the California Environmental Quality ACt (CEQA), this proj~'t is within the scope of the ccatified Inclusionary Zoning Ordinance Negative Declaration dated June 11, 1996. The Negative Declaration covered the parameters of the Inclusionary Zoning Ordinance, including the fee option in lieu of constructing the housing and annual fee adjustment criteria. BE IT F1LIRTI~ER RESOLVED TItAT ~ Dublin City Council does hereby amend Resolution No. 57-97 establishing the methodology for determining the amount of the In-Lieu Fee for each residential development project subject to the requirements of the Inclusionary Zoning Regulations of the Dublin Zoning Ordinance, as follows: 1. The In-Lieu Fee shall be based upon a charge of $1.50 per habitable square foot for multi-family (attached unit) developments, and $2.00 per habitable square foot for single family (detached unit) developments. 2. The In-Lien Fee shall be calculated based on the habitable square feet of each dwelling unit, excluding garages. 3. There shall be no per-unit maximum for the In-Lieu Fee. 4. The In-Lieu Fee per habitable square foot shall be adjusted annually on luly t~t to reflect the greater of the percentage change either in a.) the Bay Area Urban Consumer Price Index (CPI) as of March of each year, or b.) the United States Department of Housing and Urban Development (HUD) Fair Market Rent Limits for the Oakland Primary Metropolitan Statistical Area (PMSA) that are in effect at the time2 The In-Lieu Fee may also be adjusted as necessary for changing conditions in the City. 5. The In-Lieu Fee shall be paid for each dwelling unit at the time the building permit is iSSUed for that dwelling unit. The above methodology for determining the amount of the In-Lieu Fee for each development project subject to the requirements of the Inclusionary Zoning Regulations shall take effect as of July 17, 2001. PASSED, P~PPROVEI) AND ADOPTED this 17~ day of July, 2001. AYES: Conneilmembers Loekhart, l~leCormiek, Oravetz, Zika and Mayor ]touston NOES: None AB SENT: None ABSTAIN: None ~..,~ ~ . ATTEST:. Q~iayor K2/G/7.17-01/res0 ffublefees, d°c (Item 6.4 #1) g;~pa 01-014 ce reso - doubling in-lieu fees RESOLUTION NO. -02 ~'~ 4 '~/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING RESOLUTION NO. 131-01 ESTABLISHING THE METHOD FOR DETERMINING THE AMOUNT OF HOUSING IN-LIEU FEES (PA 01-014) WHEREAS, on July 9, 1996, the City Council adopted Ordinance 14-96, the Inclusionary Zoning Ordinance; and WHEREAS, Section 8.24.080 (B) of the proposed Inclusionary Zoning Ordinance provided the option of paying a fee in-lieu of constructing Inclusionary Units ("In-Lieu Fee"), and stated that the City Council shall establish the amount of the In-Lieu Fee by resolution; and WHEREAS, the City Council on June 11, 1996, adopted Resolution 80-96 establishing a method for determining the amount of the In-Lieu Fee; and WHEREAS, the City Council on July 17, 2001, directed Staff to prepare a revised method for determining the amount of the In-Lieu Fee; and WHEREAS, on July 21,2001, the City Council approved an amendment to the Inclusionary Zoning Ordinance revising the methodology for determining the amount of the In-Lieu Fee for each residential development project (City Council Resolution No. 131-01); and WHEREAS, a Negative Declaration of Environmental Impact was prepared pursuant to the California Environmental Quality Act (CEQA), State CEQA Guidelines, and the City of Dublin CEQA Guidelines, and was adopted for the Inclusionary Zoning Ordinance on June 11, 1996; and WHEREAS, the Negative Declaration adopted on June 11, 1996, addressed all impacts of the Inclusionary Zoning Ordinance, which includes the in-lieu fee option, and the Inclusionary Zoning Ordinance amendments of May 20, 1997, addressing the in-lieu fee methodology revisions; and WHEREAS, on February 6, 2001, the City Council approved the Affordable Housing Implementation Plan (AHIP) that sets forth policy guidelines and programs for funding and developing affordable housing in Dublin; and BE IT FURTHER RESOLVED THAT THE Dublin City Council does hereby amend Resolution No. 131-01 establishing the methodology for determining the amount of the In-Lieu Fee for each residential development project subject to the requirements of the Inclusionary Zoning Regulations of the Dublin Zoning Ordinance, as follows: 1. The In-Lieu fee shall be based on a charge of $72, 176 per unit for each residential unit required but not built in a project of 20 units or more under the provisions of the City's Inclusionary Zoning Ordinance as shown on Exhibit A. 2. The In-Lieu fee is based upon the difference between the cost to construct a 1,200 sq. ft. moderate income for sale unit and the market cost to build that unit as determined by the City as of May 7, 2002. 3. The In-lieu fee per unit shall be adjusted annually on July 1 to reflect the greater of the percentage change either in a) the Bay Area Urban Consumer Price Index (CPI) as of March of each year, or b) the United States Department of Housing and Urban Development (HUD) Fair market Rent limits ATTACHMENT 6 for the Oakland Primary Metropolitan Statistical Area (PMSA) that are in effect at the time. The In- Lieu Fee may also be adjusted as necessary for changing conditions in the City. 4. The total In-Lieu fees for a specific project shall be paid at the time of issuance for the first building permit for that project. 5. The above methodology for determining the amount of the In-Lieu Fee for each development project subject to the requirements of the Inclusionary Zoning Regulations shall take effect as of May 7, 2002. PASSED, APPROVED AND ADOPTED this 7th day of May 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk g:\pa 01-038\ccreso in-lieu fees May 7, 2002 New Inclusionary In Lieu Fee Construction costs $ 96,000 Land, Site Dev., Admin.~ $ 126,900 Plan Check/Building Permits $ 2,075 City/Subregional Impact Fees2 $ 45,868 School Impact Fee3 $ 6,625 Total Cost $ 277,468 Max Purchase Price4 $ 205,292 X Difference (Total Cost - Max. PurchaSe Price) $ 72,176 General Model Assumptions 2001 ~ameda county Medium Income $ 71,600 Very low income (family of four) $ 35,800 ~ ' 50% of Low income (family o£four) $ 57,280 ~ · 80% of Moderate income (family of four) $ 85,920 ~ 120% of Inclusionary requiremem (percent of project at BMR) 15.0% · Dedication obligation 7.5% Max In-Lieu fee option 7.5% Sales price for-sale unit, family of four~ $ 277,468 Construction costs per square foot $ 80.00 1,200 Size of unit (habitable area in fte )~ Land, Site Dev. & Admin. asa percent of fair market sales price 45*% Distribution of BMR needs7 30% Very'Low Income 20% Low Income - 50% Moderate Income Home Lo~ n and Payment Assumptions 30.0% Percentag~ of gross income dedicated to housing costs 30-year fixed Term 7.00% Interest rate 5.0% Down Payment 1.0% Annual Property tax Monthly homeowners insurance premium ($500/yr.) $ 42 $ 100 Monthly utility costs (HUD standard?) NOTES: ~ Equals 45+% of fair market sales price ~ $277,468 ~ 'Source: City of Dublin, '~Pennit and Impact Fee Schedule for New RESIDENTIAL Developments EFFECTIVE October 10, 2001" · ~ Based on "Medium Density Residential" SFD unit on 3,500 fi: lot. 4 Weighted average value based on ABAG BMR distribution and maximum purchase price for Vet Low, Low and Moderate income households. s Source: Dublin Affordable Housing In Lieu Fee. ealculatmn, dtstnbuted at 9/28/01 meeting. s Source: "DubtinAffordableHousingln-LieuFee" calculation distributed at 9/2.8/01 meeting. one bedroom ~ 144 fi:; two bedrooms em ~ 100 fi:; one bathroom ~ 100 ftz; one bathroom ~ 60~; kitchen ~ 100 fi:; one dining area ~ 100 fi:; living area ~ 100 fi:; living area ~ 256 fff; hallways, closets, utility ~ 240 7 Association ofBayAreaGovemments, Regional Housing Needs Determination 1999'-2006 g:Ahousing~in¢lusionary~inolhmgin-lieu feetbl2 INCLUSIONARY ORDIANCE COMPARISONS CITIES Percentage of Development Required to Length of Restriction In Lieu Fee Required Below Market Rate (BMR) PLEASANTON 15% for multi family development 30 years, each resale $1,054 per multi family unit* 20% for single family development starts another 30 years $3,160 per single family unit* LIVERMORE** 10% of development 55 years 10% of the difference between the cost for a market rate unit and the maximum price for BMR unit. Example single-family unit market rate value $250,223; maximum low-income price for BMR $130,492 =fee is $11,973 per unit. No multi family rate was established. DUBLIN 15% of development- 7.5% must be built 30years $72,176 per required affordable unit not built PROPOSED PLEASANTON LIVERMORE (other provisions) DUBLIN (other provisions) 1. Very low, low and moderate-income ** All residential development to date has City Council has ability to modify very low, Iow and breakdown is handled on a case by case provided units instead of asking to pay fees because moderate income breakdown basis agreed to in an Affordable Housing of the quota-like system for allowing development. Agreement. Due to this growth management plan, developers 2. *In lieu fees are waived for the following: try to provide proposals the city will view )~ If multi unit development has all. favorably. Producing affordable units is viewed BMR units for low and very low more in line with their policy than paying a in lieu income, fees are waived for entire fee project )~ If single family and multi family If units are built, in lieu fees are waived development with moderate income BMR, fees are waived for the BMR units ONLY Alternatives to BMR units on site or fees Alternatives to BMR units on site or fees Alternatives to BMR units on site or fees 1. Off site development of affordable 1. Provision of secondary units on a lot (up to 1. BMR units on site or fees housing 20% of requirement) is allowed for BMR 2. Land dedication at value of affordable units 2. Land dedication to City or non profit units required (City Council approved) developer, land to be ready for 2. Off site construction of affordable housing 3. Offsite construction of affordable housing development 3. Land dedication in development ready (city Council approved) condition 4. in lieu fees (City Council approved) g:\pa\01-0138\inclusionary ord comparisons RESOLUTION NO. 02 - 22 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING THAT THE CITY COUNCIL APPROVE AN AFFORDABLE HOUSING PRIORITY AREAS POLICY WHEREAS, on May 28, 1996, the City Council of the City of Dublin found that a limited and finite amount of land remains for development of housing in the City and the extended planning area; and WItEREAS, on May 28, 1996, the City Council adopted the Inclusionary Zoning Ordinance, Section 8.68 of the Dublin Municipal Code, and found that the purpose of Inclusionary Zoning is to assure that further housing development contributes to the attainment of the housing goals of the City by increasing the production of residential units affordable to households of very low, low and moderate. income; and WHEREAS, October 16, 2001, the City Council approved Resolution 182-01, which expressed City Council's Intent to Amend the Inclusionary Zoning Ordinance and established a Citywide affordable housing goal in an amount not to exceed 15% of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordable/inclusionary units; and WHEREAS, the Intent to Amend the Inclusionary Zoning Ordinance established the date of October 16, 2001, on or after which date project applications received or deemed complete by the Community Development Department would be subject to the amended Ordinance; and WHEREAS, the Planning Commission has determined that the attached Affordable Housing Priority Areas meet the criteria of sites that are decentralized, sites with proposed Medium, Medium-High and High density residential use, sites with approved Mixed-Use Commercial use, sites near public transportation, sites near services, sites convenient to job centers, and sites where affordable housing is encouraged; and WHEREAS, it is important to assure that the remaining developable land is utilized in a manner consistent with the City's housing policies and needs of the City. NOW THEREFORE BE IT RESOLVED that the Planning Commission does hereby recommend that Council adopt the Affordable Housing Priority Area Policy as set forth in Exhibit B. PASSED, APPROVED AND ADOPTED by the Planning Commission of the City of Dublin on this 23rd day of April 2002. ATTACHMENT AYES: Cm. Johnson, Musser, Fasulkey NOES: Cm. Jennings ABSENT: Cm. Nassar ABSTAIN: Planning Commission Chairperson ATTEST: Planning Manager CITY OF DUBLIN AFF O RD AB LE H O U SIN G PRIORITY AREAS It is the policy of the City Council of the City of Dublin to encourage the location of affordable housing development in the following undeveloped or underdeveloped sites within the City, in compliance with the Inclusionary Zoning Ordinance. This policy is advisory to new development projects and informational to the preparation of the Dublin 2002 Housing Element. Definition of Affordable Housing Priority Areas - Those sites which are undeveloped or underdeveloped, as of October 16, 2001 and after. pUrpose - to represent the Undeveloped or underdeveloped areas were affordable housing is encouraged in a map format - to advise and to encourage the appropriate and harmonious siting of affordable housing to meet the City's housing goals - to promote affordable housing that is decentralized and available to persons throughout the City - to direct Staff to work with the Development Community to locate appropriate affordable housing sites, in compliance with the Inclusionary Zoning Ordinance - to direct Staff's work updating the General Plan's 2002 Housing Element Location - a map of the Priority Areas for Affordable Housing shall be made. available to all interested parties. City Staff shall assist in determining the location of Priority Areas for Affordable Housing. Criteria sites without entitlements under the Subdivision Map Act or other approval, as of October 16, 2001 - sites with approved medium, medium high, and high-density residential and/or commercial sites that allow mixed-use development, pursuant to the Dublin General Plan, specific plans, or amendments (The Policy map includes areas that are subject to pre-zoning and annexation.) locations near public transportation, including Wheels bus service and BART locations near services, including grocery stores, other retail, schools, hospitals, parks, etc., to reduce dependence on automobiles, to reduce development costs associated with parking facilities, to encourage inexpensive and nonpolluting alternative transportation, to provide efficient medical care to City of Dublin residents, and to provide public open space amenities to multi-family housing residents. sites convenient to job centers to prOmote a balance of jobs and housing How City Staff Would Work with the Development Community The Inclusionary Zoning Ordinance applies to all residential developments of 20 units or more, including but not limited to thc areas represented on the Affordable Housing Priority Areas map. Projects of 20 units or more proposed for Priority Area sites - or sites approved for medium, medium high and high density residential and/or commercial sites that allow mixed use development - would be encouraged to provide all of thc required Inclusionary units on site. - For projects of 20 units or more proposed for sites with low density, rural residential/agriculture and/or single family residential use, which arc areas that are not identified as Priority Areas, Staff would encourage the developer to provide required Inclusionary Units on site, as well as explore alternatives available to thc applicant, as provided in the Inclusionary Zoning Ordinance. - A statement describing the affordable housing component of a project would be a requirement of all applications for residential development of 20 units or more. Map: - Affordable Housing Priority Areas Map attached. G:XPA#L2001 \01-038\pc reso 3 priority area. DOC CITY OF DUBLIN PRIORITY AREAS FOR AFFORDABLE HOUSING MAP DATE: APRIL 17, 2002 RESOLUTION NO. - 02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN AFFORDABLE HOUSING PRIORITY AREAS POLICY WHEREAS, on May 28, 1996, the City Council of the City of Dublin found that a limited and finite amount of land remains for development of housing in the City and the extended planning area; and WltEREAS, on May 28, 1996, the City Council adopted the Inclusionary Zoning Ordinance, Section 8.68 of the Dublin Municipal Code, and found that the purpose of Inclusionary Zoning is to assure that further housing development contributes to the attainment of the housing goals of the City by increasing the production of residential units affordable to households of very low, low and moderate income; and WltEREAS, October 16, 2001, the City Council approved Resolution 182-01, which expressed City Council's Intent to Amend the Inclusionary Zoning Ordinance and established a Citywide affordable housing goal in an amount not to exceed 15% of new housing units and to prohibit in-lieu fees from being used for more than one-half of the affordable/inclusionary units; and WBEREAS, the Intent to Amend the Inclusionary Zoning Ordinance established the date of October 16, 2001, on or after which date project applications received or deemed complete by the Community Development Department would be subject to the amended Ordinance; and WItEREAS, the Planning Commission has determined that the attached Affordable Housing Priority Areas meet the criteria of sites that are decentralized, sites with proposed Medium, Medium-High and High density residential use, sites with approved Mixed-Use Commercial use, sites near public transportation, sites near services, sites convenient to job centers, and sites where affordable housing is encouraged; and WltEREAS, it is important to assure that the remaining developable land is utilized in a manner consistent with the City's housing policies and needs the City; and WltEREAS, the Planning Commission recommended that the City Council approve an Affordable Housing Priority Area Policy at its April 23, 2002 meeting. NOW TItEREFORE BE IT RESOLVED that the City Council of the City of Dublin hereby adopts the Affordable Housing Priority Area Policy as set forth in Exhibit A. PASSEl), APPROVEI) ANl) AI)OPTEI) by the City Council of the City of Dublin on this 7th day of May 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk K2[G/5-7-02/resO-hsng-priOrity.dOc (Item 6.2 ) ATTACHMENT 9 AFFORDABLE HOUSING PRIORITY AREAS It is the policy of the City Council of the City of Dublin to encourage the location of affordable housing development in the following undeveloped or underdeveloped sites within the City, in compliance with the Inclusionary Zoning Ordinance. This policy is advisory to new development projects and informational to the preparation of the Dublin 2002 Housing Element. Definition of Affordable Housing Priorit~ Areas - Those sites which are undeveloped or underdeveloped, as of October 16, 2001 and after. Purpose to represent the undeveloped or underdeveloped areas were affordable housing is encouraged in a map format to advise and to encourage the appropriate and harmonious siting of affordable housing to meet the City's housing goals to promote affordable housing that is decentralized and available to persons throughout the City - to direct Staff to work with the Development Community to locate appropriate affordable housing sites, in compliance with the Inclusionary Zoning Ordinance - to direct Staff's work updating the General Plan's 2002 Housing Element Location - a map of the Priority Areas for Affordable Housing shall be made available to all interested parties. City Staff shall assist in determining the location of Priority Areas for Affordable Housing. Criteria - sites without entitlements under the Subdivision Map Act or other approval, as of October 16, 2001 sites with approved medium, medium high, and high-density residential and/or commercial sites that allow mixed-use development, pursuant to the Dublin General Plan, specific plans, or amendments (The Policy map includes areas that are subject to pre-zoning and annexation.) locations near public transportation, including Wheels bus service and BART locations near services, including grocery stores, other retail, schools, hospitals, p~ks, etc., to reduce dependence on automobiles, to reduce development costs associated with parking facilities, to encourage inexpensive and nonpolluting alternative transportation, to provide efficient medical care to City of Dublin residents, and to provide public open space amenities to multi-family housing residents. - sites convenient to job centers to promote a balance of jobs and housing How 'City Staff Would Work with the Development Community - The Inclusionary Zoning Ordinance applies to all residential developments of 20 units or more, including but 'not limited to the areas represented on the Affordable Housing Priority Areas map. Projects of 20 units or more proposed for Priority Area sites - or sites approved for medium, medium high and high density residential and/or commercial sites that allow mixed use development - would be encouraged to provide all of the required Inclusionary units on site. For projects of 20 units or more proposed for sites with low density, ~ rural residential/agriculture and/or single family residential use, which are areas that arc not identified as PriOrity Areas, Staff would encourage the developer to provide required Inclusionary Units on site, as well as explore alternatives available to the applicant, as provided in the Inclusionary Zoning Ordinance. - A statement describing thc affordable housing component of a project would be a requirement of all applications for residential development of 20 units or more. Map: - Affordable Housing Priority Areas Map attached. G:\PA#L2001\01-038\pc reso 3 priority area. DOC CITY OF DUBLIN AFFORDABLE HOUSING PRIORITY AREAS It is the policy of the City Council of the City of Dublin to encourage the location of affordable housing development in the following undeveloped or underdeveloped sites within the City, in compliance with the Inclusionary Zoning Ordinance. This policy is advisory to new development projects and informational to the preparation of the Dublin 2002 Housing Element. Definition of Affordable Housing Priori~, Areas - Those sites which are undeveloped or underdeveloped, as of October 16, 2001 and after. Purpose to represent the undeveloped or underdeveloped areas were affordable housing is encouraged in a map format to advise and to encourage the appropriate and harmonious siting of affordable housing to meet the City's housing goals to promote affordable housing that is decentralized and available to persons throughout the City - to direct Staff to work with the Development Community to locate appropriate affordable housing sites, in compliance with the Inclusionary Zoning Ordinance - to direct Staff's work updating the General Plan's 2002 Housing Element Location - a map of the Priority Areas for Affordable Housing shall be made available to all interested parties. City Staff shall assist in determining the location of Priority Areas for Affordable Housing. Criteria sites without entitlements under the Subdivision Map Act or other approval, as of October 16, 2001 sites with approved medium, medium high, and high-density residential and/or commercial sites that allow mixed-use development, pursuant to the Dublin General Plan, specific plans, or amendments (The Policy map includes areas that are subject to pre-zoning and annexation.) locations near public transportation, including Wheels bus service and BART - locations near services, including grocery stores, other retail, schools, hospitals, parks, etc., to reduce dependence on automobiles, to reduce development costs associated with parking facilities, to encourage inexpensive and nonpolluting alternative transportation, to provide efficient medical care to City of Dublin residents, and to provide public open space amenities to multi-family housing residents. - sites convenient to job centers to promote.a balance of jobs and housing EXH BtT /:7 How City Staff Would Work with the Development Communi .ty The Inclusionary Zoning Ordinance applies to all residential developments of 20 units or more, including but not limited to thc areas represented on thc Affordable Housing Priority Areas map. Projects of 20 units or more proposed for Priority Area sites - or sites approved for medium, medium high and high density residential and/or commercial sites that allow mixed usc development - would be encouraged to provide all of the required Inclusionary units on site. - For projects of 20 units or more proposed for sites with low density, rural residential/agriculture and/or single family residential use, which are areas that are not identified as Priority Areas, Staff would encourage the developer to provide required Inclusionary Units on site, as well as explore alternatives available to the applicant, as provided in thc Inclusionary Zoning Ordinance. - A statement describing thc affordable housing component of a project would be a requirement of all applications for residential development of 20 units or more. Map: Affordable Housing Priority Areas Map attached. G:\PA#\2001\01-038\pc reso 3 priority area. DOC J~