HomeMy WebLinkAboutItem 6.2 RentIn-LieuFee&DonlonCanyonProj (2)
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AGENDA STATEMENT
CITY COUNCIL MEETING DATe: April9~~1;996
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SUBJECT:
EXHIBITS ATTACHED:
RECOMMENDATION:
1.
~2.
~ ' 3.
4.
5.
6.
1 .
Continued Public Hearing: (1) Reduction <JfRetltal Availability
Rental In.Lieu Fee Amount (Public Heating)ancl (2) Considetation
of Rental Availability ReguiremeI1ts for DoOO':011yoo ProJ~ct
(Report Prepared by Demus C~n, Seniot~lanner)
A.
B.
C.
March 26, 1996 Agenda Statemerii(Wlt4EXlUbits)
Resolution detennining the.Rental-iri:"Lieu 'Fee
Memorandum ftom Elizabeth Silver,Oity Attorney, to City
Council dated April 3 ~ 1996 "
Open Public Hearing,
,Hear Staff pre~ntation
Receive Public Testilnony,
Deliberate . " ,',
Adopt Resolution revising ,theRen~ftn.~I.]ieu Fee .amount
Provide direction to Staff regarding R~nta1 Availability
Requirements for Donlan Canyon Proj~c~.
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FINANCIAL ST A TEMEN'f: Minor cost to City to .admiJUster the inWke of the f~;dqx>siting the
fee into a special account; and to admini_ster the use oftb.e funds to provide ~tal housilli in, the City of
Dublin. '.
D:;;SCRIPTION:
On March 12, 1996. the City Council considered,,adoption ,of a Resolution revisingJheamoUnt of
the Rental In.Lieu Fee. The Council continued the matta. ,to tonight'S1l'l~1tf1Jrderfor the City
Attorney to research what options,are available to the Council. " '. ^' .
fl$neral plan Requirement
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As noted in the City Attorney's memo (Exhibit 3), the Housing element oftheOene~l Plap. -
contains a specific requirement that a minimum of lO%' of unjts ,in :large mulii.f.nilyp~jepts be ,
maintained as rental units for five years, (General Plan. Section 6.3 (III)(~);), .The' R~W. A vaililbility
Ordinance (DMC Section 8.04.0S0(B)(2)) provides an alternative to tliis requirement ..thedeveloper may
pay a fee in lieu of providing the rental units. .'
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COPIES TO: Rental' ~vailabilitYOidinanceFile
p A 96~06File, ," .
,'DennisCarripltoll~~i1i_r"Planner
Matt KeUd"',''.
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The Council directed staff at its March 12. 1996 meeting to process a general plan amendment to
repeal Section6.3(IIl)(E) of the General Plan (the rental availability requirement) and to repeal the Rental
Availability Ordinance. Because of other projects with higher priority. staffhas indicated that it will not
have time to work on the general plan amendment for several months.
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Until the general plan amendment is considered by the Council. the rental availability requirement
is part of the General Plan and new projects must be found consistent with the General Plan.
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Reduction of Re:qtal Availability Rental In.Lieu Fees
The Agenda Statement for the March 26 meeting (Exhibit A) recommends that the Council adopt a
Resolution determining the amount of the Rental In.Lieu Fee to be $986.24 per unit. The amount
re~ommended follows the methodology for determining the amount of the fee set forth in Attach!nent 1 of
the Rental Availability Ordinance.
Relationship ofRentaI Availability Requirements and Rental In.Lieu Fee to ~ew Projects
Relationship of Rental Availability Requirements to Donlan Canyon Project
The City Attorney has concluded that the final map for the Donlan Canyon project cannot be
amended to remove the condition requiring compliance with the rental availability requirements until the
General Plan is amended to delete these requirements. However. two options are available to refund the
Rental In.Lieu Fees if the City does amend its General Plan. The first would be to enter into an
agreement with Kaufinan & Broad. the developer of Donlan Canyon. whereby the City agrees to refund
the Rental In.Lieu Fees when and if the General Plan and Municipal Code are amended to delete the
rental availability requirement. The second option would be to amend the condition of the tentative map
which requires compliance With the rental availability requirements to allow the subdivider to pay the
Rental In-Lieu Pees at a later point in time (e.g.. one year after the last unit is finaled) if the General Plan
has not yet beeu amended. The second option requires a noticed public hearing.
Recommended ACQQJ1
Because it appears that the developer of the Donlan Canyon project and new projects may be .
required to comply withtbe rental availability requirements before the Council has the opportunity to
consider repealing such requirements from the General Plan. staff believes it is appropriate and in the
interests of the developers to establish the Rentalln.Lieu Fee in the amount consistent with current
projections. The reduction of the fee from $10.808 per unit to $986.24 per unit will substantially reduce
the amount that developers may have to pay. if they elect to pay Rental In-Lieu Fees. Staff, therefore.
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recontn1en .. ,":"the Council adopt the Resolution (EXhibit B)det.er:m.inii1gthe amoun{.l~ftheIteDtal In.
Lieu Fee and provide direction regarding the Donlan Canyon project (option one or two). . .
Option 1.
Enter into an agreement with KaUfman and. Broad .when: the City agrees to refitn<1 the .
Rental In.Lieu Fees when and if the General Plan and MwUc;ip~ Code are amended to
delete the rental availability requirement.' .
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Option 2.
Amend the condi~on of the. Donlan Canyon Tentative Map whicb requires compliance
with the rental availability requirements to allow Kaufman tmdBroad. tocpay the Rental In.
Lieu Fee at a later point (i.e., one year after. the last unit is' fn;ut1ed)' if.the aerieral Plan and
Municipal Code have not yet been amended. Jhis option 'Would require a noticed public
hearing. .-'
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g:PA9600<MGSTMT2
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CITY CLERK
File # D~~[Q]-[2J~
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 26, 1996
Public Hearing: Reduction of Rental Availability In-Lieu Rental
Fee Amount
~ (Report Prepared by D.e.p.nis...Carrington, 8.enior, Planner)
SUBJECT:
E.xmBITS ATTACHED:
RECOMMENDATION:
\~1.
2.
3.
4.
5.
"'-.
A.
B.
C.
Resolution determining the In-Lieu Rental Fee amount
Memorandum to Planning Director dated January 31. 1996
Chapter 8.04 of the Municipal Code. Rental Availability
Ordinance
Attachment 1 of the Rental Availability Ordinance
Rental Survey
Spreadsheet showing calculation of In-Lieu Rental Fee
amount
D.
E.
F.
Open Public Hearing
Hear Staff presentation
Receive Public Testimony
Deliberate
Adopt Resolution revising the In-Lieu Rental Fee amount or
provide direction regarding the In-Lieu Rental Fee and
continue this item
FINANCIAL STATEMENT: Minor cost to City to administer the intake of the fee; depositing the
fee into a special account; and to administer the use of the funds to provide rental housing in the City of
Dublin.
DESCIUPTION:
~$'.
On September 23, 1991, the City Council adopted the Rental Availability Ordinance. At that
hearing, the Council approved an In-Lieu Rental Fee of $10,808 per rental unit not provided. The
Ordinance calls for the In-Lieu Rental Fee to be updated every two years. This has not been done due to
the press of other matters.
The purpose of the Rental Availability Ordinance is to provide rental housing in the City of Dublin
by requiring that 10% of the total number of units in all new multifamily projects of more than ten units
bE' maintained as rental units for a period offive years. The obligation to provide rental units may be
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EXHIBIT A
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satisfied by the applicant's payment of the In-Lieu Rental Fees. The amount of the In-Lieu Rental Fee for'
a project is required by the Municipal Code to be determined by the City Council at least every two years.
The methodology for establishing the In-Lieu Rental Fee is set forth in Attachment 1 (Exhibit D)
of the Rental Availability Ordinance and more clearly shown in Exhibit F. The fee must equal the cost. .
for a five year period, of the difference between the cost of a three bedroom apartment and the amount that '
a low income family earning 80% of the Alameda County Median income for a family of five can pay for
such a unit. That cost is determined for each year of a five year period and then totaled for the fee. The
In-Lieu Rental Fee is charged for the 10% of the rental units not provided by the developer. Three
variables determine the amount of the In-Lieu Rental Fee:
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1. The Median Income for a family of five as determined by the Federal' Department of
Housing and Urban Development. This amount must be projected for the five year period for which the
I~~Lieu Rental Fee is calculated. The rate of increase over the previous five years is used to project the
rate of increase of the median income for the five years for which the fee is to be calculated. Staff
calculated the annual percentage rate of increase for median income for the period between the beginning
of 1989 and the beginning of 1995 to be 4.84835%. This rate of increase will be used for the calculation
of the fee for the next five years.
2. The market rent of a three bedroom unit comparable to the units being- built as part of the
multifamily development for which an In-Lieu Rental Fee is being paid. This amount must be projected
for the five year period for which the In-Lieu Rental Fee is calculated. Staff performed a telephone survey
of comparable apartment complexes for rents of three bedroom units in Dublin, Livermore and San
Ramon. The survey determined the average rent to be $1,231.16.
3. The rate of Market Rent increase. This rate was determined by means of a telephone
survey by Staff. The rental figure for 1994 is the only reliable historic rental figure available to the City.
The rate of increase from 1994 to 1995 was determined to be 4.06%. This figure was used to project the
rate of increase of the median income figure for the five years for which the fee is calculated.
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IN-LIEU RENTAL FEE
The In-Lieu Rental Fee was calculated as shown on the attached spreadsheet (Exhibit F). Federal
standards for expenditures on housing state that a low income family earning W% of the median income
should pay no more than 30% of its income on housing. Since rental units are required to be available for
a five year period, the Fee is calculated over a five year period. The year is shown in the first column of
the spreadsheet. The spreadsheet shows the Alameda County Median Income for a family of five in the
second column. The third column shows 80% of the median income. The fourth column divides the 80%
figure by 12 to arrive at monthly income. The fifth column shows the current market rent for a three
bedroom apartment comparable to multi-family units being built in Dublin today. The si~th column
shows the monthly amount a family can spend for rent (30% of monthly income shown in column four).
The difference between the current market rent in column five and the amount a family can spend in
column six is calculated and shown in column seven. In the case of 1995. the monthly difference is
$34.16. This amount is multiplied by 12 to arrive at the yearly difference for 1995 of$409.92 in coltunn
8. Identical calculations are run for 1996 through 1999 with figures for those years for Yearly Income and
Market Rent being increased based on past increases for those figures. The yearly difference for each year
is totaled to arrive at the In-Lieu Rental Fee of $986.24 per rental unit that that the developer elects to not
provide.
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. An I~-~Ieu Rental Fee ~or a hypothetical 250 uJ?itt.q!V!!h.9.~,~ ~e~~lg~~~pi'? ld be calculated
usmg the eXIstmg $10.808 In-LIeu Rental Fee and the proposed $986.24 fee. A 2~ unit townhome'
develo ment would be re uired to rovide 0 .? .
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$10,808 1991 FEE
PER UNIT
$270,200 Total
$986.24 1995 FEE
PER UNIT
$24,656 Total
. .UNITS
. The fee as currently calculated is significantly lower than the 1991 fee. This is because the yearly
median increase is based on a slower rate (4.84 %) than used in 1991 (5%) and because the rate of
increase in market rents is based on a slower rate of increase (4.06%) than used in 1991 (5%). This is
made clear in the later years of the fee calculation when the amount of money available for families in the
Low Income category to pay rent actually exceeds the market rent. These changes in the variables
determining the fee can result in much lower fees when calc~lated,ovet:-a.fi'\le year p~riod.
Staff recommends that the City Council adopt Exhibit A, Resolution determining the In-Lieu
Rental Fee amount, or that the City Council provide direction regarding the In-Lieu Rental Fee and
continue this item.
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g:P A96006\AGDASTMT
RESOLUTION NO. .96
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A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVAL OF IN-LIEU RENTAL FEE
WHEREAS, the City Council adopted the Rental Availability Ordinance on September 23, 1991,
in order to implement Dublin Housing Element Strategy IILE.; ~d __ _
WHEREAS, pursuant to the provisions of State Planning and Zoning law, it is the function and
duty of the City Council of the City of Dublin to take action on proposed fees; and
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WHEREAS, the Rental Availability Ordinance and Associated In-Lieu Rental Fee was reviewed
in accordance with the provisions of the California Environmental Quality Act; and
WHEREAS, the Environmental Impact Report, SCH #84011002, was prepared for the Dublin
General Plan and certified on February 11, 1985; which Environmental Impact Report addressed impacts
of the future development of the City of Dublin; and which impacts of said development of the General
Plan exceed the impacts of General Plan Amendment 91-001, including the Rental Availability Ordinance
and In-Lieu Rental fees pursuant to that ordinance; and
WHEREAS, the programs proposed in the Rental Availability Ordinance, including the In-Lieu
,.:.ental Fee, do no~ raise any new significant environmental issues which were not addressed in the Dublin
....,. General Plan EnVironmental Impact Report; and
WHEREAS, Section 8.04.050 (f) of the Rental Availability Ordinance states that the City Council
shall establish the In-Lieu Rental Fee by resolution every two years; and
WHEREAS, on September 23, 1991, the City Council did adopt an In-Lieu Rental Fee of
$10,808; and
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WHEREAS, due to the press of other matters a revised In-Lieu Rental Fee has not been adopted
since September 23, 1991 ; and
WHEREAS, the methodology for determining the amount of the In-Lieu Rental Fee is set forth in
Attachment 1 of the Rental Availability Ordinance; and
WHEREAS, a survey by Staff established the average market rent for a three bedroom unit for a
family of five, and determined the rate of Market Rate increase of rents; and
WHEREAS, Staff determined the rate of increase of the Alameda County Median Income for a
family of five; and
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WHEREAS, the City Council did consider the proposed In-Lieu Rental Fee; and
\\THEREAS,
approved; and
a Staff Report was submitted recommending that a In-Lieu Rental Fee amount be
EXHIBIT A {}/;4f'
WHEREAS, data indicating the amount of cost, or estimated cost, required to provide the housing
for which the In-Lieu Rental Fee is levied and the revenue sources anticipated to provide the housing,
including General Fund revenues were made available to the public at least 10 days prior to the City .
Council meeting; and ,::,
WHEREAS, the City Council considered all written and oral testimony submitted at the City
Council Meeting; and
NOW, THEREFORE, BE IT RESOLVED that the Dublig ~9i~oup.ci~ apprqves the In-Lieu
Rental Fee of $986.24 for every rental unit which is not provided. .
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PASSED, APPROVED AND ADOPTED this. 17th day ofMareh; 1996.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
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ATTEST:
City Clerk
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CITY OF DUBLIN
MEMORANDUM
TO: Larry Tong, Planning Director
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FROM:
Dennis Carringt?n, Senior Planner
DATE:
January 31, 1996
RE:
Amount of Rental In-lieu Fee
Chapter 8.04 of the Dublin Municipal Code (attached), the "Rental Ability
Ordinance" states, in part, that subject to approval by the Planning Commission or City
Council, an applicant may contribute a fee in lieu of providing a rental unit. The amount
of the in-lieu rental fee for a project shall be determined by resolution by the City Council
at least every two years. The methodology for the determination of the flat in-lieu fee is
.:.....hown in Attachment 1 to the Rental Availability Ordinance (attached).
The methodology established by Attachment 1. The fee must equal the cost, for a
five year period, of the difference between the cost of a three bedroom apartment and the
amount a family earning 80% of the Alameda Median income for a family of five
individuals can pay for such a unit. That cost is determined for each year of a five year
period and then totaled for the fee. The fee is charged for 10% of the units. Three
\'.:::.riables determine the in-lieu fee:
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1 . The Median Income for a family of five as determined by the Federal
Department of Housing and Urban Development. This amount must be projected for the
five year period for which the in-lieu fee is calculated. The rate of increase over the
previous five years is used to project the rate of increase of the median income figure fo..
the five years for which the fee is calculated.
The annual percentage rate of increase for Median Income for the period between
February, 1989 and January 18, 1995, was determined to be 4.84835%. The Median
Income for a family of 5 rose from $45,050 to $59,850 over 72 months. The 72 month
figure is based on the fact that although the $59, 850 figure is for mid-January, 1995,
71.5 months after the February 1989 start date, the rate would still be $59,850 twelve
days later at 72 months.
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EXlilBIT 13 o(J/fl}b
2. The market rent of a three bedroom unit comparable to the units being built .
as part of the multifamily development for which an in-lieu fee is being paid. This amount :.
must be projected for the five year period for which the in-lieu fee is calculated.
Market Rate Rent of $1,231.16. Sharon Young performed a telephone survey of
comparable apartment complexes for rents of three bedroom units. The rents for
comparable units in Dublin, Livermore and San Ramon were multiplied times the number
of units at that rate. The resulting totals for each unit wereL11an- added .and divided by
the total number of units (232 for which 1995 rents were available) (see attachment).
This yielded an average weighted regional rent for comparable three bedroom units of
$1,231.16. Kaufman and Broad had Tony Hurt do a survey of Dublin Apartments on
November 15, 1995 (see attached letter from K and B). The rental rate for three bedroom
units from Tony Hurt's survey is $1,238.21. Staff feels that the more conservative lower
figure should be used.
3. The rate of Market Rent increase. This rate is determined by means of a
survey. The rental figure for 1994 is the only reliable historic rental figure available to the
City. All but two apartment managers claimed that they did not have older rental figures
for a variety of reasons. The rate of increase from 1994 to 1995 was used to project the
rate of increase of the median income figure for the five years for which the fee is
calculated.
Market Rate Rent annual increase of 4.06%. The annual percentage increase in
market rate rent was derived for each complex. The number of units was multiplied tim~s
the % rate of increase for each unit to reach a weighted total for that unit. The weighted
totals were added and divided by the 136 units for which 1994 figures were available
(see attachment).
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Determination of In-lieu Fee. The attached spreadsheet shows how the factors listed
above were used to determine the Rental In-lieu Fee of $986.24 per unit.
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Chapter 8.04
RENTAL A V AILABILITY
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Sections:
. 8.04.010
8.04.020
8.04.030
8.04.040
8.04.050
8.04.060
t;,
8.04.070
8.04.080
8.04.090
8.04.100
8.04.110
Title.
Findings.
Purpose.
Definitions.
General rental unit
requirements for new
multifamily residential
developments of more
than ten (10) units.
Relation of rental
availability ordinance to
inclusionary housing
ordinance.
In-lieu rental fees.
Conflict of interest.
Violation-Penalty.
Enforcement.
Appeals.
8.04.010 . Title.
The ordinance codified in this chapter
shall be called the "Rental Availability
Ordinance of the City of Dublin." (Ord.
14-91 ~ 1 (part))
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8.04.020' Findings."
A goal of the city's adopted housing
element is to achieve a balanced community
with housing available for households over
a range of income levels. The citY of Dub-
lin finds the city is experiencing a shortage
of rental housing. The city's Housing Ele-
ment identifies a five-percent (5 %) vacancy
rate as necessary to permit rental mobility
whereas the city's 3.9 percent rental vacan-
cy rate falls far below that goal. (Housing
Element, pp. 16-17.) In addition, rental
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8.04.010
housing is an important source of affordable
housing since downpayment requirements
and the high cost of Dew housing limit new
ownership housing as an affordable housing
source. Also, some householas choose to
rent foITeasons'other than affordability. The
City Council "finds that it is a public pur-
pose of the city and a public policy of the
state of California as mandated by the re-
quirements for a housing element of the
city's general plan, to make available an
adequate supply of rental housing for per-
sons of all economic segments of the com-
munity. (Ord. 14-91 ~ 1 (part))
8.04.030 Purpose.
The purpose of ~s chapter is to enhance
the public welfare and assure that housing
development contributes to the attainment
of the above-described goals by providing
rental housing in the.city of Dublin directly
or through land acquisition, land or rental
writedowns, consuuction of rental housing,
rental assistance, direct contributions to a
non-profit association or corporation for
construction of rental housing, landbanking
(including property exchanges) and any
other mechanism available to the city to
provide rental housing. A limited and fInite
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amoUnt ofland remains for development of
housing" in the city and extended planning
area. In order to assure that the remaining
developable land is utilized in a manner
consistent with the city's housing policies
and needs, the city declares that ten percent
(10%) of the total number of units in all
new multifamily projects of more than ten
(10) units shall be maintained as rental units
for a period of five (5) years. The reguJa-
tions set forth in this chapter shall apply
citywide, including the extended planning
areas. (Ord. 14-91 ~ 1 (part))
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EXHIBIT c ~ 1jflrb
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8.04.04D
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8.04.040 Definitions.
For the purposes of this chapter, certain
words and phrases shall be interpreted as set
forth in this section unless it is apparent
from the context that a different meaning is
intended.
"Applicant" means any person, fitm,
partnership, association. joint venture, cor-
poration. or any entity or combination of
entities which seeks city permits and ap-
provals for a project.
"Approval" means ~option of a resolu-
tion by the Planning Commission andlor
City Council approving a discretionary
permit. such as a tentative map" planned
development or use permit. for a project.
"City" means the city of Dublin or its
designee or any entity with which the city
contracts to admini~r this chapter.
,"Dublin employee"- means. any single
person, heac! of ho~hold or, in the case of
married couples. ~ther spouse, who has
wor~d ~~n the city. limits of Dublin
continually for one (1) year immediately
prior to the date of application for a rental
unit.
~'Dublin r~d;?nf' ~eans any person who
has liv~ within ~e city, limits of Dublin
contin~~~]y f~r -one .(1) year immediately
prior to the date, of application for a rental
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unit.. ..~ntinu.any.. shall be construed to
jn~~de 13pses~ of ~~idency pf no longer
th~ six (6) months. .
"Dwelling unit" means a dwelling de-
signed fo~.oc~pan.cY by'one (1) household.
"House:hold" means one (1) persqn living
alone, or two (2) or .more persons sharing
residency w~~se income resources are avail-
~le to meetth~ family's needs and who are
rel~.~y ~loo~ marriage or operation of
law. '_ _' '.
(Dcblin 8-92)
444b
"In-lieu rental fee" means a fee paid to
the city by an applicant for residential de-
velopment in the city, in lieu of providing
the rental units required by this chapter.
"Multifamily residential development'.
--means. a preject which inFludes any multi-
family dwellings. -,
"Project" means a housing development
at one (1) location including all dwelling
units for which permits have been applied
for or approved within a twelve (12) month
period.
"Project owner" means any person, firm,
partnership, association, joint venture, cor-
poration, or any entity or combination of
entities which holds fee title to the land on
which the project is located.
"Rental unit" means a rental dwelling
unit ~ required by this chapter.
"Re-rental controls" means legal restric-
tions by which the availability of rental
units will be monitored and controlled to
insure that the unit remains available for
rent.
"Unit type" means dwelling units with
similar floor area and number of bedrooms.
(Ord. 14-91 ~ I (part))
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8.04.050 General rental unit
reguffements for new
multifamily residential
developments of Jl!ore
than ten (10) units.
A. 1. A.JJ.y new multifamily residential
development involving more than ten (10)
dwelling units, which is approved on or
after the effective dare of the ordinance
codified in this chapter, shall be conditioned
to include an a,.,oreement to provide ten
percent (10%) of the total number of dwell-
ing units within the development as rental
units for a period of five (5) years from the
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date of final occupancy of each unit The
obligation to provide rental units may be
satisfied by the applicant's payment of in-
lieu rental fees, as provided in Section
8.12.070 of this chapter subject to approval
by the approving body.
2. In applying the ten percent (10%)
requirement, any resulting fraction of units
less than 0.50 may be disregarded and any
fraction greater than or equal to 0.50 shall
be construed as requiring one (1) rental
unit The rental requirement shall be im-
posed 'only once on a given development,
regardless of changes in the character or
ownership of the development
B. 1. Any development pennit for new
multifamily residential development projects
of more than ten (10) units, if granted, shall
be subject to conditions ensuring compli-
ance with the provisions of this chapter.
Such conditions shall specify the timing of
construction of rental units and/or payment
of in-lieu rental fees.
2. Evidence of compliance with the
rental housing conditions shall be in the
form of a written agreement between the
applicant and the City Manager completed
prior to [mal inspection of the first dwelling
unit in the project The <l;,oreement shall
indicate the number and construction sched-
uling of all rental units and any other infor-
mation required by the City Manager to
detennine the applicant's compliance with
the conditions. The agreement shall be
recorded as a deed restriction prior to final
inspection of the first dwelling unit in the
project and shall run with the land encom-
passed by the project for each phase until
the rental units have been occupied for a
period of five (5) years from the date of
final occupancy of the last unit in each
phase.
444c
8.04.050
C. Dublin residents will be given first
preference for rental units; Dublin employ-
ees will have second preference for rental
units; third preference will be given to those
who need to move to Dublin to be near
Dtiblin - residents -or. services; aod fourth
preference will be given to those who live
outside of Dublin.
D. AIl rental units in a project and phas-
es of a project shall be constructed concur-
rently with or prior to the construction of
nonrental units.
E_ All rental units:
1. Shall be reasonably dispersed
throughout the entire development;
2. Shall include all unit types represent-
ed in the project (unless the number of unit
types exceeds the number of rental units)
and said unit types shall be provided in the
same proportion as in the project as a
whole; and
3. Shall be compatible with the design
and use of the nonrental units in tenns of
exterior appearance, materials and finish
quality.
F. The City Council shall establish the
in-lieu rental fee by resolution. which shall
be adopted at least every two (2) years.
G. The City Manager shall monitor the
continuing availabilitY-of rental units and
shall take such actions as necessary to noti-
fy the public of their availability. (Ord. 14-
91 ~ 1 (part)) .
8.04.060 Relation of rental
availability ordinance to
incIusionary housing
ordinance.
The rental availability provisions of this
chapter are separate from the provisions of
the Inc1usionary Housing Ordinance of the
city of Dublin. However, rental units re-
(Dublill &.9:2)
8.04.060
.:
.'
quired under the rental a vailabili ty ordi-
nance codified in this chapter may also be
counted to detennine compliance with
inclusionary housing requirements so long
as the rental units meet all applicable re-
quirements of the inclusionary housing
ordinance, including the time period and
rent levels required. (Ord. 14-91 ~ 1 (part))
8.04.070 In-lieu rental fees.
A. Subject to approval by the approving
authority, an applicant may contribute a fee
in lieu of providing a rental unit. Such fee
shall be known as the "in-lieu rental fee."
B. . The amount of the in-lieu rental fee
for a project shall be determined by resolu-
tion by the City Council at least every two
(2) years. The methodology for the determi-
nation of the flat in-lieu rental fee is shown
in Attachment I to the ordinance codified
in thi~ chapter. During the years that the
City Council does not determine the fee by
resolution, the amount of the in-lieu rental
fee shall be increased annually by an
amount equal to the rental rate increase
used by the City Council in determining the
current in-lieu rental fee.
C. The entire in-lieu rental fee shall be
paid no later than at the time of the final
inspection of the fIrst dwelling unit in the
project.
D. The in-lieu rental fee shall be depos-
ited into a fund to be known as the "Rental
A vailabiIity Housing In-Lieu Rental Fees
Fund" ("Fund") and shall be used only for
the purposes set forth herein.
E. All moneys in the Fund, together
with any interest earning on such moneys
less reasonable administrative charges, shall
be used by the City Manager for the pur-
pose of providing rental housing in the city
of Dublin through land acquisition, land or
(Dublin 8-92)
444d
e
rental writedowns. construction of rental
housing, rental assistance, direct contribu-
tions to a nonprofit association or corpora-
tion for construction of rental housing,
laadbanking (including property exchanges),
and-any-other mechapism av3.ilable to the
city to provide rental housing.
F. The moneys in the Fund shall be
used or committed to use for the purposes
set forth in subsection E of this section
within seven (7) years of the date of pay-
ment into the Fund. Any moneys remaining
unexpended or uncommitted at the end of
the seven (7) year period shall be refunded
to the then-current owner or may be con-
tributed to a nonprofit association or the
corporation for the purpose of providing
rental housing in Dublin. at the option of
the City Council.
G. No later than June 30th of each year,
the City Manager shall prepare a report for
the City Council identifying the balance of
moneys in the Fund and the rental housing
provided, and any moneys committed to
providing rental housing. The annual report
shall also include a review of administrative
charges. The City Council shall receive and
consider the report. (Ord. 14-91 ~ 1 (part))
I"
8.04.080 Conflict of interest.
Fallowing are those individuals who, by
virtue of their position or relationship, are
found to be ineligible to rent a unit under
this chapter as their residence:
A. All employees and officials of the
city of Dublin who have, by the authority
of their position, policymaking authority or
influence affecting city housing programs;
B. The applicant or project owner. (Ord.
14-91 ~ 1 (part))
e:
.
.....;.. .:
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8.04.090 Violation-Penalty.
A. It shall be unlawful for any person,
fmn, corporation, partnership or other entity
to violate any provision or to fail to comply
with any of the requirements 9fthis chapter.
A violation of any of the provisions or
failing to comply with any of the require-
ments 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 prose-
cuted as an infraction.
B. Any person convicted of an infraction
under the provisions of this code, unless
provision is otherwise herein. made, shall be
punishable as provided by the Government
Code of the state of California. COrd. 14-91
S 1 (part))
8.04.100 Enforcement.
A. The provisions of this chapter shall
444e
8.04.090
apply to all agents, successors and assigns
of ap applicant No building permit or occu-
pancy permit shall be issued, nor any devel-
opment approval be granted which does not
_ ~~~~ the requi~~~ents. of this chapter.
B. The City Manager is designated as
the enforcing authority.
C. The city may institute any appropri-
ate legal actions or proceedings necessary
to ensure compliance herewith, including
but Dot limited to actions to revoke, deny or
stlSpend any permit or development approv-
al. (Ord. 14-91 S 1 (part))
8.04.110 Appeals.
Any person aggrieved by any action
involving denial, suspension or revocation
of an occupancy or .other permit, or denial,
suspension or revocation of any develop-
ment approval, may appeal such action or
determination in the manner provided in
Section 1.04.050 of the Municipal Code.
COrd. 14-91 g 1 (pan))
~~-.
(Dcbli.c 8-9::!)
ATTACHMENT 1
The methodology for determining the in-lieu rental fees shall . be as ~
follOws;
The amount of the in-lieu rental fees for a project shall be
calculated by multiplying the required number of rental units by the amount
necessary to subsidize the re~tal of a three bedroom market rate apartment
for five years for a family of five earnirig--8G% -0:: the- .Jl..lameda County
median income, where no more than 30% of income is spent on rent. The
amoupt. of the in-lieu rental fee will be determined using the following
table. (The numbers in the table are illustrative, the market rent, County
Median Income and rental increase rate in the table will be those in effect
at the time of approval of the project);
Family of Five. Alameda County Median Income of $46/850.
Percent Narket Affordable Difference 12 Mos. 5yrs The value
of Rent Rent of tpe
Median first
Income year's
rent plus
4 years
at 5%
yearly
adjust- ..
ment for '.
rent
increases
80% $1/100 $937 $163 $1/956 ,$9/780 $10/808
The value of the first year of rent plus four years at 5% yearly
adjustment for rEnt increase is calcuf2ted by adjusting the base of $1/956
in this example annually for a pe=iod of four years at a compounded an~ua1
rate of 5% and adding that amount to the first year'sF~ent. The 5% is
based on a survey of rental increases in Dublin in July 1991. Typical
rental increases will vary over time.
Market rent will be determined by the City Manager. The apartment
units used for determination of comDarative market rental cost must be
located in the Tri-Valley area (Dublin/ San Ramon/ Livermore and
Pleasanton) and be comparable in size/ age and amenities to the units that
~ould otherwise be sold. In preparing the market rent comparisons/ first
consideration will be paid to rental projects in Dublin/ then to those in
San Ramon/ Livermore and pleasanton.
e.:-.
, .".
EXHIBIT --'2 06 ~/~h!";'
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that the City Council does not determine an in-lieu rental fee by an amount
r:':'~al to the rental rate increase used by the City Council in determininc
__:... current in-lieu rental fee. For example: W
.
In-lieu rental fee: $10,808
_ Rental rate increase: 5%
_ Increased in-lieu rental fee:
$10,808 x 1.05 =
$11,348
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RESOLUTION NO. - 96
.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
APPROVAL OF REDUCTION OF IN-LIEU RENTAL FEE AMOUNT
WHEREAS, the City Council adopted the Rental Availability Ordinance on September 23, 1991,
in order to implement Dublin Housing Element Strategy III.~.; and
WHEREAS, pursuant to the provisions of State Planning and Zoning law, it is the function and
dVty of the City Council of the City of Dublin to take action on proposed fees; and
WHEREAS, the Rental Availability Ordinance and Associated In-Lieu Rental Fee was reviewed
in accordance with the provisions of the California Environmental Quality Act; and
WHEREAS, the Environmental Impact Report, SCH #84011002, was prepared for the Dublin
G~neral Plan and certified on February 11, 1985; which Environmental Impact Report addressed impacts
of the future development of the City of Dublin; and which impacts of said development of the General
Plan exceed the impacts of General Plan Amendment 91-00 I, including the Rental Availability Ordinance
and In-Lieu Rental fees pursuant to that ordinance; and
WHEREAS, the programs proposed in the Rental Availability Ordinance, including the In-Lieu
.Rental Fee, do not raise any new significant environmental issues which were not addressed in the Dublin
neral Plan Environmental Impact Report; and
WHEREAS, Section 8.04.050 (t) of the Rental Availability Ordinance states that the City Council
shall establish the In-Lieu Rental Fee by resolution every two years; and
WHEREAS, on September 23, 1991, the City Council did adopt an In-Lieu Rental Fee of
$10,808; and
WHEREAS, due to the press of other matters a revised In-Lieu Rental F~,~,.has not been adopted
since September 23, 1991 ; and
WHEREAS, the methodology for determining the amount of the In-Lieu Rental Fee is set forth in
Attachment 1 of the Rental A vail ability Ordinance; and
WHEREAS, a survey by Staff established the average market rent for a three bedroom unit for a
family of five, and determined the rate of Market Rate increase of rents; and
WHEREAS, Staff determined the rate of increase of the Alameda County Median Income for a
family of five; and
.
WHEREAS, the City Council did consider the proposed In-Lieu Rental Fee; and
WHEREAS,
approved; and
a Staff Report was submitted recommending that a In-Lieu Rental Fee amOllnt be
EXHIBIT B cI <(Irlfb
WHEREAS, data indicating the amount of cost, or estimated cost, required to provide the housing
for which the In-Lieu Rental Fee is levied and the revenue sources anticipated to provide the housing,
including General Fund revenues were made available to the public at least 10 days prior to the City
Council meeting; and
WHEREAS, the City Council considered all written and oral testimony submitted at the City
Council Meeting; and
NOW, THEREFORE, BE IT RESOLVED that the DJ!blin City Council approves the reduction of
the In-Lieu Rental Fee to $986.24 for every rental unit which is not provided.
1-,...,.
PASSED, APPROVED AND ADOPTED this 9th day of April, 1996.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
1-.
'.
g:pa96006\reso
.
.
.
APk-UJ-80 WeD 1~:14
MEYEkS,NAVE,klHAGK&~lLV.
r AX NU, 0 lU jO 1 't'ttll
r, UOUb
MICHAEL R. NAVE
EENR MEYERS
IZABCT~r H. Cl~ YO<
MIC\oiAt"... S R~ACK
KENNETli A, WILSON
C;JFFORO F. CAMPBEJ..
MIO!'11\E:. F. Rot)R!QUo;z
1O,T'rlLEi:N I"AUSION, AICP
weNO'y A, ROBERTS
DAVlOW. SKINNER
STEVEN T, MATT~
RICK W, JARVI!:
LARISSA M SETO
DEilBlE F. L.ATHAM
WATNIO K. ::;Nt,ltx;if<A:'~
MEYERS, NAVE, RlBACK, SILVER & WILSON
A PROFESSIONAL. L.AW CORPORATION
GATEWAY PL.AZA
777 DAVIS STREET, SUITE 300
SAN L.EANDRO, CALIFORNIA 94577
TELEPHONE: (510) 351.04300
FACS!MILE: (510) 351-4481
SANTA RoSA OFFiC;:
55S I"II'TH 5"rnli::T. surr;;: :no
SANiA ROSA, eA 9$401
TELEPHONE: (707) 545-SC09
FACSlMI:'E: (lOTj 545.6",17
OF COUNSel
A~DH;A J. SALfLMAN
MEMORANDUM
TO:
City Council
~
City of Dublin
.'
DATE: Apri13, 1996
FROM:
Elizabeth H. Silver. City Attorney
By: Rick W. Jarvis. Deputy City Attorney
RE:
Compliance of Pending Subdivision Projects with General Plan and Zoning
Rental Availability Requirements
.
This memo addresses the extent of the City's fle.."dbility to relieve pending
subdivision projects from the rental availability requirements for multi-family projects set
forth in the Housing Element of the General Plan md in the Municipal Code. The
spedfic subdivision projects under consideration include Donlan Canyon (for which a
final map has already been recorded. containing a condition requiring compliance with
such requirements) and California. Creekside (for which a tentative map has not yet been
approved). ..".
The Housing Element of the Dublin General Plan contalns a specific
requirement that lIa minimum of 10% of units in large multi-family projects be
maintained as rentalwuts for a period of five years." (General Plan, S 6.3(IlJ)(E).) The:
City's Municipal Code provides the alternative of paying an in lieu fee in place of
providing the rental units. (Mun. Code ~ 8.04.050(B)(2).)
The City Council has directed staff to process a general plan amendment and to
repeal these rental availability requirements_ VVhile the Municipal Code can be quickly
amended. it would take the City some time to amend its general plan.
.
EXHIBIT L 1~/f/~
APR-03-96 WED 12:15
MEYERS,NAVE,RIBACK&SILV.
FAX NO. 510 351 4481
p, 03/06
TO:
FROM:
RE:
City Council
Elizabcth H. Silver
Compliance of Pending Subdivision Projects with General Plan and Zoning
Rental Availability Requirements
AprilS, 1996
2
DATE:
PAGE:
ISSUES:
1. Under the t.-urn::nt Gencra! Plan, must the City cumlitioIl future tentative maps
on compliance v.i.th the rental availability requil-ements?
2. May the City amend the fInal map for Donlan Canyon to remove the condition
requiring compliance .with the rental availability requirements?
3.
.
May the City repeal or amend the rental availability requirements in me
Municipal Code bcrol'c amending thc Genel'al Plan to remove: such
requirements?
CONCLUSIONS:
1. Yes, under the current General Plan, the City should continue to condition
future tentative maps on compliance 'V\ith the rental availability rcquircnlents.
However, the City has considerable la.titude in detennining how such
compliance may be accomplished. For example, the City may include a
provision in the map relieving the subdivider of this conditi~p in the eve-n.t that
the City later amends its General Plan (and its Municipal Code) to remove the
rental availability requirements. Further, after amending the General Plan and
Municipal Code Lo rernove lhe re.ntal availability requirer:IlcIllS, Lhc City CQuld
refund any in lieu fees which had previously been collected. Finally, the City
could simply enter into an agreement in which the subdivider promises to pay
the in Urn fees at SOIIte point in the futurc, shuuld the rental availability
requirements still be in place. (However, such an agreement would first require
an amendment to the Munidpal Code.) Any of these approa.ches would give the
Cit.y C011ndl an c:vidc:ntiary basis f'Jr tlnding t.he: subdivisiml map approval
consistent v.'i.th tb~ General Plan.
2.
The City should only arnend the final map for Donlan Canyon to remove the
condition requiring compliance with the rental availability requirements after the
City amends its General Plan and Municipal Code to remove those
requirements. HO'"v~ver, after ar.nending its General ,Plan and MW"lidpal Code,
the City could reinlburse the subdivider any fees previously collected.
Alternatively, the City could amend the condition to allow for later payment of
.
.
.
APR~03-96 WED 12:16
MEYERS,NAVE,RIBACK&SILV,
FAX NO. 510 351 4481
p, 04/06
DATE:
PAGE:
City Council
Eliza.beth H. Silver
Compliance of Pending SuLilivisiuI1 Projects with Gel1el'al Plan and Zoning
Rental Availability Requirements
April 3. 1996
3
TO:
. FROM:
RE;
the in lieu fee if the rental availability requirements are still in place. (Again,
ouch An tlmcndmcnt to the mAp \vould firot require tuuending the IvlunicipAl
Corl.~. )
3. Yes, the City may repeal or amend the rental availability requirements in the
Municipal Code before removing such requirements from the Ge:ner~l P18n, :is
the General Plan does not mandate that these requirements be included in the
Municipal Code. Ho'vvcycr, thc requirements in the General Plan would
continue to ha.ve independent effect, and any approval or a1l1.endn1ent of a
subdivision ma.p would have to be consistent V\.1th them.
. ANALYSIS:
Any approval of a te.ntative subdivision map or amendment of a final subdivision
map must be consistent with the City's General PI3n in effect at the time of the approval.
Thw~, unless and until the City removes the rental availability requirements in the
General Plan, all tentative maps for large multi~faIIlily prc.>jl::LUi should be:: re::quircu t.o
comply \\-ith such requirements. However1 the City has a number of options for
determining how such compliance should be achieved.
....,. .~
." ~----- -'-'.. '. Under the Subdivision Map Act1 a city may not approve a tentative map if it
c.:lI'IJ"'IOt. find t.he map consistent "vith the applicable general plan. (Gov. Code S
66474(a).)
itA. propos~d subdivision shall be consistent 'with a general
plan. . . only if the local agency has officially adopted such a
plan and the proposed subdi\ision or land use is compatible
\:vith the (')hj~c:tiv~s, poHdes, general land uses, and programs
specified in such a plan." (Gov. Code ~ 66473.5.)
. Likevvise, while the Suhdivislon Map Act authorizes amendments to a recorded
final map based upon "new circumstance," such amendment also must be consistent wlth
the applicable general plan. (Sct:1 Gov. Code ~s 66472.1 [requiring a:u.1endments to
COnfOffil 'With ~ 66474], 66474(a) [prohibiting approval which is not fOtmd consistent
with the general plan].)
APR-03-96 WED 12:16
MEYERS,NAVE,RIBACK&SILV,
FAX NO, 510 351 4481
p, 05/06
TO:
FROM:
RE:
City Council
:E-liz:::I.beth H. Silver
Compliance of Pending Subdivision Projects with General Plan and Zoning
Rental Availability Requirements
Apri13,1996
4
.
DATE:
PAGE:
A city council has considerable latitude in determining whether 3. subdivision
map or other project is consistent V\'ith its general plan. Courts have held that a given
project need not conform with each and every policy in a gencral plan and recognize the
need for city councils to balance numerous, often competing goals and policies in making
a consistency determination. (See. Sequoyah Hiils Homeowners Assoc. v. City if Oakland
(1993) 23 Cal.AppAth 704, 719, 29 Cal.Rptr.2d 182.)
However. the rental availability requirement in the Housing EIem~nt of the
General Plan is a specifically-required a<.:tiuIl (and not a mere goal or policy), and it
\vould be difficult to justify approving projects which do not somehow comply \'lith this
requirement. Indeed, State law mandates that. hC)1]sln.g elements contain a program .
~etting forth such specific actions a dty will take to achieve its housing goals and
policies. (Gov. Code S 65583, subd. (c).) Implicit in this mandate is that cities vvill, in
fact. carry out such act.ions. W~ t.hus believe that any amendment of a final ma.p would
have to be consistent 'with the rental availability requirement (so long as the requirement
remains a part of the General Plan and Municipal Code).l
However, the City could word the tentative map condition s#'~ as to relieve the
subdivider of the rental housing a.vailability requirement if, at a. later date, the City
amends the General Plan and Municipal Code to remove this requirement. Furthermore.
JWc have received a letter frofn h:gal r.;uumd fur Kaufman & Broad su~esting that It would be
sufficient for a subdivision map amendment or approval to be consistent with apropo.red amt:r/.dmcntto a
General Pl~\, even if it Were not consistent with the m..~ting General Plan. We respectfully disagree.
The California Supreme Court has held that a land use action that is inconsistent with a general plan is
im'alid at that time. even if the general plan is later amended t.o :J.nt}mri:ze: the: ~rtion, Such later
amendment cannot "save" the invalid action. (Lesher CommunicatioTU, 1m;. v. CU)' uJ Walnut Cm:k (1990)
52 Cal.3d 531, 545, 277 Cal.Rptr. 1.) While the Supreme Court was addressing the consistency of a
zoning (,~rdinance with the General Pl:a:n, its anal)'$is ~so would apply to subdivision map amendments
ur appruval's.
.
TI\e case cited by counsel for Kaufma.n & Broad, l-larroman CO. I'. TOl..,n of Tiburcl7l (1991) 235
CalApp.3d 388. 396. 1 Cal.Rptr.2d i2, does not apply here, as it relies upon a special statutI;: (Gov.
Code ~ 65361) a.utllOrizing relief from the consistency re'lllirt'lmp.M in, limited cases not here relevant.
Coun.sel fer K'mfman &. Broad also cite::; to section 65.589.5 uf the GUVcrllment Code, buT. rllis .section
does not appear to apply. as it just includes provisions t.o further the availability of affordable housing
(which the rental availa.bility fl':qlli.rements were intended, in part, to facilitate).
.
.
.
TO:
FROM:
RE:
City Council
Elizabeth H. Silver
Compliance of Pending Subdivision Projects with General Plan and Zoning
Rental Availability Requirements
April 4, 1996
5
DATE:
PAGE:
were the City to collect the in lieu fees and then later remove the requirement from its
. General Plan, the City could refund any collected in lieu fees that had been collected.
For example, although the in lieu fees are not subject to it, AB 1600 specifically provides
for the refund of any development fees collected by a city which the city does not later
spend for the purpose for which they were collected. (Gov. Code ~ 66001 (e).)
Alternatively, the City could enter into an agreement (perhaps as part of a
development agreement) whereby the subdivider agrees to pay any in lieu fee at a set
time in the future should the rental availability requirements in the General Plan still be
in effect at that time. Such an agreement would give the City Council an evidentiary
basis for finding a subdivision map approval or modification consistent with the rental
housing availability requirements of the General Plan, and yet still allow for the
possibility of a future General Plan amendment to remove such requirements. We only
note that such an agreement would not be consistent with the rental housing availability
requirements in the Municipal Code, which expressly require payment prior to final
inspection of the first unit (Mun. Code ~ 8.04.070(C)) and thus would require the
amendment or repeal of these provisions of the Code.2 Such amendment or appeal
would be proper so long as the Municipal Code, as amended, would still be consistent
with the General Plan.
Very truly yours,
<r..
MEYERS, NAVE, RIBACK, SILVER & WILSON
~akL 11 # ~~
Elizabeth H. Silver
RWJ:kag:rja
J:\WPD\MNRSW\114\MEMO\O I\APR96\RENTAL-A. VAL
2Cormsel for Kaufman & Broad suggests that the Municipal Code already authorizes such
agreements. However. the Code presently only authorizes agreements in which the developer provides
assurances that the units will continue to be rented for five years. (Mun. Code, ~ 8.04.050(B)(2).) An
agreement relating to the timing of the payment of the in lieu fee is beyond the scope of this provision.