HomeMy WebLinkAboutItem 8.1 AfordableHouseProposal
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: October 18, 2005
SUB.JECT:
ATTACHMENTS:
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FINANCIAL STATEMENT:
DESCRIPTION:
Braddock and Logan Affordable Housing Proposal to Comply with
Inclusionary Zoning Regulations for the Braddock and Logan
development at Fallon Ví1lage
Report Prepared by Julia AbdalalHousing Specialist
1.
2.
3.
Braddock and Logan Affordable Housing Proposal
Proposed Stage 1 Development Map
Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning
Regulations)
Receive Staff Presentation
Hear Public Testimony
Deli berate
Direct Staff to:
(a) Inform Braddock & Logan that the Council will not
waive the requirements of the Inclusionary Zoning
Regulations required by the proposal; OR
(b) By consensus, direct Staff to work with Braddock &
Logan to refine the proposal including, in particular, the
timing of construction 01: and security for, the proposed
affordable units.
No fiscal impact at this time.
The eleven property owners of the Fallon Village area have submitted a request for a Stage 1
Development Plan. At the same time Braddock and Logan has submitted a request for a Stage 2
Dcvelopment Plan and a Vesting Tentative Map for the Braddock and Logan property, consisting of the
northernmost 486 acres of Fallon Village. (See Attachment 2) The Stage 2 submittal is for thc crcation of
1,043 single-family units at this site.
COPY TO:
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Page I of7
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ITEM NO.
G:\PA#\200:;\05-038 B&L Stage 2 FaJlûiI VHlage\CCSR to-I-05 B&1. Hnu~ing Proposa1.DOC
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Approval of a Stage 2 Development Plan and Vesting Tentative Map will trigger the requirements of the
City of Dublin Tnclusionary Zoning Regulations, Chapter 8.68 ofthe Zoning Ordinance (Attachment 4).
Chapter 8.68's stated purpose is to enhance the public welfare and assure further housing development
contributes to the attainment of the City's housing goals by increasing production of affordable units, and
to assure that the limited remaining developable land is utilized in a manner consistent with the City's
housing policies and needs. (Section 8.68.010.)
The ordinance requires developers constructing residential units in the City to provide 125% ofthe
development as affordable housing. The Inclusionary Zoning Regulations break down thc affordable
requirements to production of 50% of the aftordable units for moderate-income households, 20% of the
units for low-income households, and 30% of the units for very low-income households as defined for the
County of Alameda by the State of California Housing and Community Development Department. The
Inclusionary Regulations further treat the development of "for salc" housing and rental housing similarly,
with the same affordable unit requirement and the same income level breakdown.
The Inclusionary Zoning Regulations provide that the affordable units - both rentals and "for sale" units --
reflect the range of the number of bedrooms as the market rate development and not be distinguished hy
exterior design or materials. The affordahle units may, however, be smaller in size and may have fewer
amenities. Finally, the affordable units are to be dispersed throughout the development (Section
8.68.030.E).
The Zoning Regulations state that an applicant may fulfill the Inclusionary affordable housing requirement
by constructing the affordable units off-site ifthe City Council makes the following five findings:
I. 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 constructcd off-site arc consistent with Section 8.68.030.E (same range and
number of bedrooms as provided in the project as a whole, consistent in design, construction
and material and are reasonably dispersed throughout the project).
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 tenTIS of a deed restriction and, if applicable, rental restrictions similar to that
used for the on-site affordable units.
5. that 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 ofthe residential development or within a
reasonable period (not to exceed 5 years).
The Inclusionary Zoning Regulations provide the City Council the option to waive the requirements of
the regulations. Section 8.68.040.E states "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 alternative methods meet
the purpose ofthis Chapter."
Page 2 01'7
ANALYSIS:
Braddock and Logan has presented a proposal to provide the number of al10rdablc units rcquircd for
the construction of 1043 single-family units at the 486-acre property they currently own (See
Attachment I). Per the Inclusionary Zoning Regulations a development of 1043 units would require
130 affordable units. The ordinance allows a developer to pay fces in lieu of constructing 40% of the
requircd affordable units, which equates to 5% of the total units. Braddock & Logan could, thus, pay
fccs for 52 units which are currently $84,198 tor each unit not constructed. This would produce an in
lieu fee total of $4,390,925.70. Braddock and Logan's proposal is to build all 130 affordable units
required for the 486-acre property they currently own.
The proposal is not consistent with the requirements of the Inelusionary Zoning Regulations in several
ways. Because of these differences Staffis presenting the proposal and requesting direction from the
City Council.
Summary of Proposal:
The proposal presented by Braddock and Logan involves two parcels. The fust is the 486-acre
property which is the subject of the Stage 2 Development Plan and Vesting Tentative Map and would
incJude 1043 units. The second property is the Anderson Property (See Attachmcnt 2), which is
proposed to be designated multi-family medium density. Braddock & Logan does not own the
Anderson property at this time.
The proposal is to construct 88 units on the Anderson Property; 78 would be off-site affordable units
for the 486-acre Fallon Villages propcrty, 9 would satisfY the IncJusionary ordinance requirement for
the 78 units on the Anderson property and one would be a manager's unit. The total number of
affordable units Braddock and Logan proposes to construct would be 139 units between the two sites.
The proposal is as follows:
1. 26 Integrated Units. 26 affordable units for sale would be built on 4,000 square foot lots of Fallon
Village. These would be identical in appcarance, materials and bedroom count to the market rate
homes and would meet all of the requirements of Chapter 8.68. The units would be affordable in
perpetuity.
2. 26 Secondary Units. 26 affordable units would be secondary dwelling units, attached to 26 ofthe
homes on 6,000 square foot lots. All units would be rentals and would be attached to the main
dwelling. They would be one-bedroom units. The units would be affordable in perpetuity.
3. 88 Mu/ti-family Units. These would be constructed off-site on the Anderson property as part of an
apartment complex with two-bedroom, two-bathroom units. There would also be 9 affordable
units to satisfy the Inclusionary requirements for the Anderson property and one manager's unit,
that would be market rate. The 87 units would be affordable in perpetuity.
4. Braddock & Logan would make a payment of $1 million to the City for affordable housing or
community benefit.
The following Table represcnts a summary of Braddock & Logan's Affordable Housing Proposal:
Page 3 of7
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Tvpe of Ownership Income mix Size of units Affordabilitv Period
Unit /Rental
26 For sale 50% mod-income Same mix of In perpetuity
Integrated units 20% low-income bedroom size as
Units 30% very low inc. market rate dev.
26 Rental units 50% mod-income All In perpetuity
Secondary 20% low-income I bedroom
Units 30% very low inc. I bath
78 Rental units 50% mod-income All In perpetuity
Apartments 20% low-income 2 bedroom
plus the 9 30% very low inc. 2 bath
units for
the
Anderson
property
Timing of Construction and Security
The timing of construction in the proposal is different for the 26 integrated units, the 26 seçondary units
and the 88 off-site units. Staff believes that the timing included in the proposal, and the security
proposed, do not mcct thc purpose or rcquirements of the ordinance in that construction of the affordable
units would not be guaranteed concurrent with construction of market rate units. Staff is prepared to work
with the applicant; however, to modify the timing and security proposed if the Council is interested in
considering thc proposal. For example, some security measurcs would nced to be in place, until Braddock
and Logan obtains ownership of the Andcrson propcrty and then pulls building permits to construct the
multifamily complex. A regulatory agreement would need to be in place tying the issuance of building
permit for the market rate units to the number of Inclusionary units under construction. The conditions
and regulatory agreement would also need to explicitly indicate that should the developer be unsuccessful
in obtaining the Anderson property and obtaining the required approvals and financing, the reql!Îrements
of the Inclusionary Zoning Regulations would apply; that is, allInclusionary Units are to be built
throughout the subject site, of the same bedroom mix as the whole development and would be evenly
dispersed throughout the development.
Waivers Requested
Braddock and Logan is requesting waivers from the Inelusionary Zoning Regulations, Waivers would be
required from:
· The bcdroom mix of the 26 secondary and 78 off-site Inclusionary Units because they would not
mirror what is being constructed at the market rate homes.
· The requirement that the units be dispersed throughout the project because the 88 units would be
concentrated on the Anderson property.
· The requirement that all ofInclusionary units be built concurrent with the remainder of the
development.
Two factors that the Council could consider in granting waivers are that the developer is offering to
provide $1 million to thc City's Affordable Housing Fund or othcr Community Benefit Fund in addition
to providing the 12.5% required units and that the units would remain affordable in perpetuity, rather than
for 55 years.
Page 4 of?
Issues Relating to the Three Types of Affordable Units Being Proposed:
1. 26 Integrated Units
Providing llnits along with the market rate units at the site of the development is consistent with the
Inelusionary Zoning Ordinance. The developer is further indicating that the units would be marketcd to
the income-range mix that is specified in the Inelusionary Zoning Ordinance.
The issues that arise with this part ofthe proposal are subtle. The homes to be buill are large homes and
the market rate homes will be expensive to purchase. All of the homes will bc cxpcnsivc to maintain.
Along with the purchase ofthc largc homc arc expenses such as landscaping, maintenance, heating, etc.
The policy issue is whether it is the Council's desire and the intent ofthe Inelusionary Zoning Regulations
to provide homes ofthis size to very low-, low- and moderate-income households. If the intent of the
Inelusionary Zoning Regulations is, rather, to provide entry-level homes for lower-income households to
enter the homeownership market then perhaps this is not an ideal solution being proposed.
2. 26 Secondary Units
The secondary units, sometimes referrcd to as "granny flats," may he of several types. They could be over
the garage as in the Bernal development in Pleasal1ton or they could be attached to the main home and
have a separate entrance. The proposal that Braddock and Logan is presenting indicates that thcse would
be one-bedroom, one-hath units and they would be attached to the house.
The Council would have to grant the applicant a waiver from the requiremcnt of the Inclusionary Zoning
Regulations that the affordable units reflect the same number of bedrooms as the market rate units. A
waiver can be granted pursuant to section 8.68.040.E.
The main issuc with granny units is that it is not feasible to require thc individual single-family
homeowners to rent out the granny units. If the units are not rented out to the specified income category
household, then the required nUlllber of Inclusionary Units is not being provided. The owners of these
units would be able to rent out the unit to lower-incomc households, keep them unoccupied and for their
personal use, or allow for family members to occupy the units. If the property owners decide not to rent
the units out, then the required 26 units that are required, per the Inclusionary Zoning Regulations, would
not be available and the number of units available for lower-income households would be less than the
139 proposed.
Staff believes there are othcr issues tied to secondary units that the Council should consider. Providing
one-bedroom units will limit the size ofthe households that could occupy the units to one or two person
households. These units may not be able to be administered in any meaningful way by City Housing
Staff. Currently, and per the Inclusionary Ordinance and the "Layperson's Guide to the Inclusionary
Zoning Ordinance Regulations", Housing Staff monitors all rental units that are restricted to lower-income
households annually. So far all of these are apartment complexes with professional management staffs.
Nonetheless, it sometimes requires several attempts to have the management staffs provide the required
information on the lower-income tenants. If City Housing Staff is going to be contacting each private
single-family home owner and requesting information on I) whether they are renting our their units, and
2) the incomc of the tenant. it may be substantially more difficult to secure the required information. If
Staff does not receive the information needed within a reasonable amount of time and after repeated
efforts, Staff may involve the City Attorney's office and COllncil in seeking compliance with the
regulatory agrccmcnt.
Page 5 of7
3. 88 Apartments (78 off-site inelusionary units and 9 on-site inelusionary units, plus a
manager's unit)
The proposal is for the off-site development of87 units to house moderate-, low- and very low-income
households, in the same ratio required by the Inclusionary Ordinance.
For the Council to allow the applicant to satisfY the Inelusionary requirements by constructing units 01'1'-
site, it would have to make the five findings discussed above. Staff does not believe thc proposal, as
presented, allows the Council to make all five findings. Il'the Council is intercstcd in considering the
proposal for off-site construction of units and believes the five findings can be made with revisions to the
proposal, Staff can work with the applicant to refine the proposal. One refinement that Stal'fwould
recommend is a trigger point for construction ofthe 88 units or construction of the units on-site, given the
fact that the applicant does not own the Anderson propcrty.
In order to make the five findings, the Council would need to grant a waiver from thc bedroom count
requirement of the ordinance and a waiver from the dispersal rcquirement or the ordinance.
The construction of apartments off-site to satisfy the requirements of the Inelusionary Zoning Regulations
has been allowed before in thc City of Dublin. Staff knows how to work with both the developers and the
management entity to enforce the provisions of the executed Affordable Housing Agreement. Before any
building permits are allowed for an affordablc dcvelopment such as an apartment complex, Staff assures
that the appropriate Affordable Housing Agreement is executed and that the developer has provided a
management plan, indicating the method of marketing the development to the households intended, the
procedures that will be in place to veri fy the income of the income restrictcd tenants, and the manner in
which the City of Dublin occupancy preferences will be administered in the selection of tenants. The
apartment complex proposed by Braddock and Logan would be required to provide the same items.
Braddock and Logan has further indicated to Staff that the construction of this apartment complex would
be fully funded by Braddock and Logan proceeds. The developer does not intend to apply for tax credits
or tax exempt bonds or other funds available to lower-income rental developments. As such, the
developer would not request any gap funding ftom the City of Dublin. This is not part of the formal
proposal, however.
OPTIONS:
Braddock and Logan has indicated that if the above described proposal is not satisfactory to the City
Council that the firm would providc 78 Inelusionary Units (7.5%) on the Fallon ViI1ages site, mixed in
with the market-rate for sale units and pay the required in lieu fee for the other 5%. While this may seem
similar in approach to all other "for sale" developments with lnelusionary Units the City has approved
there arc some differences. First, the homes being considered in this development are larger than any
other homes so far developed with affordable units. As noted above, to provide a 4000 or 6000 square
foot lots to a lower-income household may present a household with a home that they cannot afford to
maintain. Along with the restricted sale price will come a number of expenses, including property taxes,
homeowners' insurance, landscaping, heating and cooling and general long-term maintenance. The
additional housing costs may exceed what the lower-income household may be able to pay. The results
may be a well-intended mismatch of ownership to for sale product.
Other options can be explored to provide Inelusionary Units on-site, but any variation from the
Inelusionary Zoning Regulations would require waivers. Most ofthe other developers of "for sale"
housing have found innovative ways to accommodate the Inelusionary requirements ofthe City of Dublin.
Page 6 of?
Pinn Brothers will be offering eight of the smaller "Manor" cluster homes to moderate-income
households, with the low- and very low-income households offered homes in the condominiums.
Greenbriar developed town homes in the midst of the larger single-family homes specifically for the
Inclusionary Units. Duplexcs and Triplexcs may also be incorporated into single-family neighborhoods
without changing the character of the tracts.
If the City Council determines that Braddock and Logan's Proposal should be modified in somc way, it
would be beneficial to provide that direction to both Staff and Braddock and Logan at this meeting.
Thcrc would be no guarantee that Braddock and Logan's offer to construet 130 units rather than paying in
lieu fees for 52 units, to make all units affordable in perpetuity and to donate $1 million to the City would
be part of any other proposal that required the City Council to waive requirements of the ordinanee.
However, Staff and Braddock and Logan could explore these other options that would be more consistent
with the City's Inclusionary Zoning Regulations.
RECOMMENDATION:
Staff recommends that the City Council I) Receive Staff presentation; 2) Hearpublie testimony; 3)
Deliberate and; 4) Direct Staff to: (a) Inform Braddock & Logan that the Couneil will not waive the
requirements of the Inclusionary Zooing Regulations required by the proposal; or (b) By consensus, direct
Staff to work with Braddock & Logan to refine the proposal ineluding, in particular, the timing of
construction of the proposed affordable units.
Page 7 of7
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Braddock & Logan's
Affordable Housing Proposal
The following is Braddock and Logan's affordable bousing proposal for meeting the
IndusioDar}' Zoning requirements set forth in Chapter 8.68. Braddock and Logan is
proposing to bund1.. the following four proposals in order provide the lrigh..st number of
units in the most logical place and to meet b~g needs not currently being provided for
in the City. Specially the four proposed programs are as follows:
(1) 26 Interlrated Units, This proposal would provide 26 units on the Bankhead property
(at 30010 for Very Low; 20% Low, and 50% Moderate). These units would be integrated
within the 4,000 square foot lots of Fallon Village and would be in identical in
appearance, materials, and bedroom count and would be consistent with every portion of
the requirements of Chapter 8.68.
Timing
Braddock and Logan would be agreeable to a condition of project approval that requires
the developer to begin coIlStructing the Intergraded units at 00 later than the 175th
building pemrit, with completion of these affordable units at a ratio of 1 affordable unit
completion to every 20 market rate units being completed. This would result in the
Intergraded affordable units beiDg completed prior to the entire project being 2/3
complete. In addition, Braddock and Logan would be agreeable placing a security bond,
guaranteeing tbe on-time completion of the affordable units.
(2): 26 Secondarv Dwellinl" Unit. This proposal would provide 26 Secondary Dwelling
Units spread tbroughout the project on lots which are 6,000 square feet or larger (at 30%
for Very Low; 20% Low, and 50% Moderate), These units would be one-bedroom and
would be attached to the primary unit. These units would appear integrated into the
design of the primary unit; however the second unit would be completely self contained.
These units would be designed to accommodate housing needs that are currently not
being met, such as college/career age children living at home; multi-generational
families; and or older parents living with children.
Timing
The Secondary Affordable units would be completed concurrent with units for the lots
that are 6.000 square feet or lager. In addition, Braddock and Logan would be agreeable
placing a security bond, guaranteeing the on-time completion of the Secondary Units.
(3): 87 Medlum-Hil"h Densltv Affordable UTilrs. This proposal would provide 87
affordabJe UIlÌts (and ODe manager's unit) to be placed upon the Anderson property.
These UIlÌts w01Ùd be located on property designated medium density residential (at 30%
for Very Low; 20% Low, and 50% Moderate). The Anderson Property is located to the
east of Central Parkway and Croak Road, immedia:tely east of the proposed Village
Center to be located on the Jordon Property. The property is idealJy suited in that it is
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ATTACHMENT I
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both located in close proximity to existing and proposed transportation inftastrUc.ture,
existing and proposed job centers and retail development as well as open space, parks,
schools, and semi public USeS.
The affordable units proposed on the Anderson property would contain 2 bedrooms and 2
bathrooms. Section 8.68.030(E) states the affordable units should reflect the range of
bedrooms provided in the project. However, the unit configuration and bedroom count
on the Anderson property is constrained by the nature of thl' higher density product and
as a result Braddock and Logan is" requesting a waiver from this requirement of Chapter
8.68."
Timing
Braddock and Logan would be agreeable to a condition of project approval that requires
the developer to begin constructing the Medium-High Density Affordable Units no later
than the no later than 5 years from the date of the approval of the Tentative Map for the
Braddock and Logan/Bankhead properties. In addition, Braddock and Logan would be
agreeable placing a security bood, guaranteeing the on-time completion of the Medium-
High Density AffordabJe Units affordable wIits,
(4) Communirv lJenefit Provision. In addition to the other aforewentioned affordable
units Braddock and Logllll is proposing to provide a million dollars ($1,000,000) to the
City. The City Council CIIll detenuine the best use of the funds. The monies could be
placed into the affordable housing in-lieu fee program, or could be utilized for capital
improvements such as reconstruction of Shannon Center or other City Park or facility.
Braddock and Logan is proposing to provide the City all of the aforementioned proposals
in meeting its affordable housing obligation. The combined approach would provide a
total of 139 affordable units, which is 56 units more than required by Chapter 8.68.
Additionally, these units would contain rent and resale restrictions that ensured the unit's
affordability as proposed, indefinitely (as opposed to the required 55 year requirement set
by Section 8.68.030E).
Braddock and Logan feels this combination of proposals will further the City's goal of
providing housing and providing units to households that are not currently served by the
marketplace. These affordable units would integrated throughout the 480 acre project
area and would designed, constructed, and managed in a way to ensure healthy and
vibrant neighborhoods for years to come.
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KEY PRINCIPLES OF INCWSIONARY HOUSING
In ij_ most baaic terma, inclu';onary housing require. or encourage. merket-rate
houaing developments to include à percentage (u_ually 10 to 20 percent) 01
horn... a!lordable to lower- and moderate-Inoome houaeholda. Inclu_ionery poll.
clea take the lorm 01 either a local ordinance, a General Plan policy, or a perm~
apprOl/ala pro""a. that requir.. or rewards "IIordable ho""lng projects, While
NPH and HBANC hold differing vie.... on the merits 01 ir>clusionary housing, the
following are key principlea upon whiOl1 our organizationa agree;
PrOl/lding an adequate auppty 01 houaing is a .ocletal responaibility,
Local communllies with inctualonary housing programs hllve a responaibility to
contribute tangible and aubetentisl r..ouree. 90 that the coat of providing
allordable houaing ia .pread fairly acro.. the community,
AAordable hou.ing policle. !hilt maximize re.oureeS by providing more houa-
Ing opportunities or deeper levela 01 affordability at the aame or leaa cœt
SMuld be encouraged.
Traditional inclu.ionary housll19 pclioiea that require the development Of "like-
lor-like' units distributed uniformly throughout the markel-rate development are
olten not the most effective or efficient way 01 providing affordable housing_
. To Increase effectiveness and efficiency, inclu510nary housing programs
ahould prOl/lde nexibillly end allow a rnnge 01 allemative methoda 01 providing
affordable unllS.
RECOMMENDATIONS FOR JURISDICTIONS WITH INCLUSIONARY
HOUSING PROGRAMS
Market-rate builders should be provided with a choice 01 saveral options for producing
the affordable homea. The builder should not be required to demonstrate the financial
infeaaibllity oftrnditional inclualonary requirements in order to uae one of these options
and, ao long as the relevant criteria for a particular option are met, the builder ahould
not be required to obtain approval by the local jurisdiction on a case-by-case basis.
Housl~ Tvp[ A.ND DESIGN FLU:II!ULJ"TV
Market-rate builders shOUld be able to .ati6ly an inclu.lonary requirement by providing
alternative for~le hOusing typea, such a_ dUets, townhous"" or COndomlniuma,
Builders should have the option 01 olustering the units onatte or building """Ite (see
Offsite Construction, page 4)_
~"6 I ~
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Market-rate builders should be able to satisfy an incluslonary requirement by providing rental
houalng, provided that the project meets the looluslonary percentags and income targeto
applicable to rental projects. Again, the builder should have the option Of clustering the units
on the project site or proViding for the units offolle (see OtrGfte Constroction, below).
LAND Dg,rCATfON
Market-rate buHders Should be able to satisfy an Inoluslonary requirement by dooatlng land to
the 10<:31 govemment or a non-profit housing developer, .ubject to the following:
. The builder and city ahould ensure that through an upzoning or den.ity bonus the dedicat-
ed site will accommodate mare affordable units or unll. at a deeper affordabillty level than
the inclusionatyrequirement would have provided:
Where rental housing Is to be constructed on the dedicated site. the site should accommo-
date at I"ast 40 affordable unile;
. If the dedicated site is such that it requires 'extra'
construction costs---<luch as tne need to dO podium
development or .Ieel ""nsiructlon-in order to accom-
modate the required number of un~s, the market-rate
builder should bear the extra ""st, including any off$lte
Improvements, environmental remediation or provision
of utilllies. In most other slluations, the land dedication
ileelf will satisfy the inoluslonary requirement;
The dedicated slle Is located within the .ame jurisdic-
tion aa the project or within a defined subreglcn;
The dedicated slle should have all land-use enttlle-
ments secured prior to ""mpletlon of the mar1<et-rate
units. If tha 10<:31 jurisdiction unreasonably
refuses to approve the necessary entitle·
mants, the builder should be able to pay
in-lieu fees.
h;\;/,10P'THATJ(.HA1'~;
AJ '~rcna Rand" ~ ~Iu.rrn.~ ,A, rht" tI'H¡f/.:fI1·'l f~ J"XliMe¡ þ£ll/¡d~ fund :
tQ &kN HoWMf Pt~~d õ( dJt!dy d~Jt¡Þ¡nJ: the ~Jood¡Y /¡(.Jmc;, j
m¡¡/o:.int J!þoBliJbk' ~ ¡:~j! 74 ~Tf'1nrenß' tI/fm,j't1'bit rD f1tnIfI~ i!'amiq¡ :
bl!:IO'II." 60 þ1!)1t~~t r¡f ðI'M mcdløn i!\frtmð (J28.00Qr $5J.QOl)J.otr~hIt i
n"1I1:!: r.mtlnt þrtl $427 10- $'86/ ""1' Rwn1.ll (i Sf{..4M . :
OFFSIT~ CoNSTRUCTloN
Market-ran. builders should be able to chaose
to satisfy an inoJusionary requlrament by pro·
viding for tha unile to be constructed outside
the project location, subject to the following:
4
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The otlsile looation i. e~her compereble
10 the project srte or will resurt in either
greater levels of effordabllity or a greater
number 01 affor<Jable unit$ than Ihe inctu-
.ionary requirem.nt would have providad;
The affordable units should be developed
concurrently with the merJo;et-rate homes.
POOLING AND CRIiD~T TlIAN:"~IiA$
TWo or more marJo;et-rate builders should
be able 10 pool resources to satisfy their
Incluslonary requiremenl through a single
affordable housing project;
1t,t
~¡;~~~;:::~:~~~':~:¡~§ªf~;~:~¡~jl;!~~'" ;~I~·~ ;::~~p..tJ..
-., '-..~'.;
O~'r£ COM.':f.:! :'7/t1N ATWi2&i.
YJ /Q .L1;Im(1 ~r~c\1~ ,,= maUt:- þtls;./bJe bf1("J)(,I j(' rJtI/ LIty of r;ar tbad, CA
QlÞved the ho!lltldmlfdet tð þart/ler li'it:h UJ(' nOfl-(1J"!J1ft M1PGE Hou!iJI1f 1tJ
de<i~Jop th ¿,,(;Iu¡.bßQ'}' homes ofP"ilti,. hili" ~tlr tM I\"WI'~~ OOIJ1~.
sf(,lO{;l H~/f.; l'!l c.~ I, l. 3 ood 4 bedrrH»t lJ :KIrtflMl'n-f!!. far ~4.f Ilðii2e . I
f¡okJj- ~m'!Þ! at 0/" below jQ mlð bD þe~nt !lrtJ~~ ar~ m~llt¡ moomw, :
Market...ale builder. thai build 'extra"
affordable housing units (i.e., more than
required by the Induslonary ordInance)
should be able 10 use the additional unit$
as credits lor meeting future inclusionary
requirements in Ihe jurisdiction or a
defined subregion;
Market-rate builders Ihat build 'extra" affordable housing units should be able 10 sell the
additional units as credits to other builders in the same Jurisdiction or a definad subregion:
The "extra' units should be built belorelhey can be treatad as oredits;
Non-profit builders should also be able to sell credits to mar1<et-<ate builders lor projects
and/or unlls that are not be;ng funded by the local government. The a"ordable homee
shOUld be enmled before or conourrently with the marJo;et-rale development acquiring
the oredits;
Non-profrt builders should be able to acquire and improve existing market-rate develop-
ments and reslrlct Mure rents to very-low inoome households and sell the units as oredlts
to other bulldern in the same jurisdiction or a defined subregion. This option should only
be allowed ~: a) households served are at or below 50 peroent 01 median income;
b) the property undergoes extensive renovations: 0) number of un~s acquirad and renovat-
ed is alleast double that 01 the standard induslonsry requirement; d) affordabilily is
guaranteed lor a peMod of al least 55 years; and e) lenant relooation is appropriately
addressad.
5
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I~de poo!>Sibl~ ~ r,-/kr¡,¡ ~ gutmftd
from V!Jl"io1~ m"r#'l.~.m~ ~þm~rrls.
It. r~ulr:ed iii ~m' rrffarddMhty tlMl'I .
f"I'IlfL'iT~<1 by the .,n:1inan~o. Okl Elm Vi/. tJ!~ :
'pro~ e~ Q{þrdnpk- h(lmC> RlRZ~ .
r,om ~t'tId/A. 00 ~dl1l¡)m 4j þleJ; .town .
tJol./s~ft!'dn1bcofhous-f'ilo;lldl.~fnt
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¡tl~ '1'I~n ~00me" !1fforáoblfl U.
sN~rf!- ~"(¡rr8 Io l,i h I,,~~ a. .bw
C$tl3.0COal/tflC'>l''fryilp ¡/;!
r¡; m~ ¡¡f iã; ¡o"jÚl jlJçø'm~ !;If
~.Þr;>1it 15~,!)(}O. I! ItIcmp~ II
bdt G( ~1)/\' Ml rtJ'll sþo(fI tIIld twø~
thJr4. øf the -;patt' Iii" tk~4 ~ (\'
~¡~~c ' rNJQ =-~ fa<:;1»t, ~en' "
IfI: f~mlfit.~ (rom CJId Elm i)nd th~
~IJ(rouitdmr 1'r~/¡OOthoDd.
IN-Ll." h..
__ __no. ___. _. _. "o.
Market-rale builders Of projects with 50 units or fewer should be able to Choose to satisfy an
inclusionary requirement by paying a lee in lieu ofdirectiy developing the units, This option
should be available to the developer without having to demonstrate that other options are
infeasible.·
Iù~MM!i:ND£D LoCAL Co"fIIIIJNtTY CoNTRIBUTIONS,
Local governments fulfill a crucial role in the creation of affordable housing, Below are SOme
key actions thalloesl governments should take to demonstrate a broader cornm~ment to
addressing the allordable Musing "hortage.
1, Funding
Make consistent eflorts to pa"s local allordable housing assistance bonds or other meas-
ures to meet the existing community's fair share ofthe burden of providing affordable
housing,
Either waive development Impact fees and processing fees for incluslonary un~" or pay for
them through disoretionary local funds such as redevelopment funds or the general fund,
III H8ANC rind NIIH do noi hIM G œmmOll þoIillirJn mr ¡" iIIîe.u ~es f« ~m ~ iJlOr'e' ~.5iØ WlIÞ-
"
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Where a redevelopment agency exists, increase to at least 50 percent the tax increment
devoted to affordable housing programs, (Current law requires a 20 percent lOW- to moder-
ate-income set-aside for housing,)
2. Zoning
prOVide at least one density bonus lor each untt of affordable housing required.
Exempt Inclusionary units from building permit caps and growth allocation processes.
Proactively ·pre·entitle' (general plan and zoning) the sites Identified in the housing ele-
ment as affordable hoUSing Sites.
MaKe appropriate surplus publicly owned land available for affordable housing.
3. Program Admlnlelratlon
. Looal government. .hould provide a dedicated .taff and budget to administer the program
or contraet with a competent entity to do so,
This respon.lbillly includes up-front assistanoe to homebuilders and prospective
buyers/renters in the sales/rental process as well as long·term monttorlng of the incluslon-
ary homes,
In the case 01 fOr-Sale Incluslonary units, In which the developer makes a good faith effort
to sell the untt but it remains unsold after 90 days, the local government should etther: a)
purchase the un~ at the restrteted price and take over marketing; or b) giVe permisaion to
sell the untt at market-rate and capture the difference. For option A, the local government
must close on the unil within 120 days from completion. For option B, the program should
be stn.¡etured so that there will be an incentive to oblain true market value lor the unil.
The cost of program administration should nct come from fees or cther exactions imposed
on builders.
CONCLUSION
Throughout Californ;,;" public officials and pevate citizens are struggling to find ways to
address the affordable housing crisis, Together, NPH and HBANC want to ensure that the
dialogue about solutions Is being Informed by a Bet of principles effectiVe and emclent at
shaping public policies that will work for builders, efties Bnd residents. C&lifOrnia has long led
tt>e nation in innovative approaches to addressing the affordable housing crisis, Bnd, by
working together, NPH and HBANC believe that we can find common ground to help solve
tt>e problem in the nea' future.
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INCLUSIONARY ZONING REGULATlOWS
CtI!ilpter 8.68
. ..,". ..,
."
CHAPTER 8.68
INCLUSIONARY ZONING REGULATIONS
8.68.010. Purpose. The purpose of this chapter is to;
'"
A. enhance the public weIfa.r(: and assure that further housing development contribu.tes 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 thatthe limited remaining developable land in the City's planning are.a is utili~ in a manner
consistent with the City's housÌILg poliajes and needs.
. 8.68.020. Definitions. As used in this cbB.pter, each of the following terms sha1lbe d~ed.asfollows:
A. "Affordable Unit'~ means an ownership or rental-housing unit,ineludiD,g seniprho1lSÌng,affordable to
households withvery40w, low, or moderate incomesa,s defin~ir). this cha~.
1. Rental units are deemed affordable units if the annual 1'e11t does not exceed 30% dtm~um
income1!!yeUor very-low-, low-, and moderate-in.come householc1s, adjusted for b.ousCbold
size ancl asdefined below.
2. Owner-occupied units are deem,ed affordable units if the sales price results in. aririiliìl !íòUsing
expenses that do not exceed 3:>% of income level forvery-low-, low-, and moderate-income
households, adjusted for household size and as defin,ed below. For a very low-income owner-
occupied units, the unit shall be deemed an affordable unit if the sales price results in annual
housing expenses that do not exceed 35% of the maximum in the very low-income level,
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 anniliìl 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.
I. "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%,ofthe median incoI le, adjusted for actual
household size.
City of Dublin Zoning Ordinance
68·1
.",.., ,."'", ',","""
..&Elptember,199?
ATT~C"Mlf{fh';,5
I -=>ð1. 1$
INCLUSIONARY ZONING REGULATIOf,JS
Chapter 8.68
E. "Resale controls and/or rent restrictions" means legal restrictions by which the affordable units shaH
be restricted to ensure that the unit remains affordable to very-low-, low-, or moderate-income
households, as applicable, for a period of not less than 55 years. With respect to rental units, such
rent restrictions shall be in the fonn 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 siInilar docUDlents recorded against the applicable property.
F. "Residential development" includes, without liInitation, detached single-family dwellings, multiple-
dwelling structures, groups of dwellings, condorniniUPl or townhouse developm.ents, condorniniUPl
conversions, cooperative developments, :mixed use develop1llents that' inclUde housing units, and
residential land subdivisions intended to be sold to the general public.
8.68.030. General Requirements
A. 12.5% Affordability Requirement. All new residential development projects of 20 units or more
designed and intended for permanent occupancy shall construct 12.5% of the total number of
dwelling units within the development as affordable units, except as otherwise provided by this
chapter. The foregoing requirement shall be applied no more than once to an approved development
(and generally at the tentative map stage), regardless of the changes in the character or ownership of
the development, provided the total number of units does not change. In applying and calculating the
affordability requirement, any decimal fraction less than or equal to 0.50 may be disregarded, and any
decimal fraction greater than 0.50 shall be construed as one unit.
B. Allocation of Unit$ 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%
Vv'here 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 nUPlber 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 andlor 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.
E. Design and DIstribution of Affordable Units. All affordable units shall reflect the range of
nUl1lbers of bedrooms provided in the project as a whole and shall not be distinguished by exterior
City of Dublin Zoning Ordinance 68-2 September, 1997
Revised March 2005
\y~ \'t
INCLUSIONARY ZONING REGULA TIOWS
Chapter 8.68
design, construction, or materials. Affordable units may be of smalJer size than the units in the proj ect
and may have fewer amenities than the market rate units in the project. All affordable units shall be
reasonably dispersed throughout the project.
8.68.040. Exceptions to 12.5% Affordability Requirement. Developers ofprojects subject t08.68.030A
shall construct 12.5% of the total number of dwelling units within the development as affordable
units, unless subject to an exception set forth in this section. Ail 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 40% of the affordable
units that the developer would otherwise be required to construct pursuant to Section 8.68.030A. The
amount of the fee shall be as set forth in a resolution of the City Council, wlùch 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 the time and in the amount set forth in the in lieu fee resolution in effect at the time of
issuance of the buDding pennit.
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 8.68.030E above.
3. that it would be infeasible or impractical to constroct 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 or all of the required affordable units, if the
Council finds that:
I. 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 useablc 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.
City of Dublin Zoning Ordinance 68·3 September, 1997
Revised March 2005
\6 t1f.J [i
I NCLUSIONARY ZONING REGULATIONS
ChlilPter 8.68
3. that the proposed land dediCation is of Slifficient size to meetthefòllowingrequirements:
a. the dedication ineludes land sufficient to constnlct the number of units that the
applicant would otherwise be required to constructby Section 8.68.030.A, based on
the size oflots in the subdivision for which theapplicl.Uit is meeting its obligation; and
b. in addition, the dedicatioh includes such Ildditionalland thematket value for which is
equal to or exceeds th.e differenèe between the value of a market-råte, 1200-square
foot unitand the price at which such a unit couldbe sold as an Affordable Unit (which
amount shäll be set forth in a resolution adopted ftom time to time by the City
Council)tj:h1es the nUll.1ber of units required. ..
D. Credit transfers. An appliCll\1t mayfullYOTrarttaily satisfy the requirements of Section 8.68.030A
thrOllghthe use of transfer credits cI'èat¡;d pursuaIlttoSection 8.68;060. Credit certificates shall be
presented to the Community Developmeht DireCtor, whoshàll 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 fpr 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 Counr;il finds, that such alternate methods meet the purposes of
this Chapter.
8.68.050. General Procedures for Implem",nting Inclusionary Zoning Requirements
., " " .
A. Agreements. Prior to the issuance of a bui,lding permit for ml. affordable unit, resale restrictions or
rental controls, or both, as the case may be, shall be set forth in an agreemeht between th.e 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 shäll run with the land and bind the applicant's
successors.
B. Rental Units; Occupancy; Annual Report. Agreements involVing rental units shäll require the
owner of the affordable units to ensure that the units are occup1ed by tenants whose monthly income
levels do not exceed very Jow-, low-,or moderate. income levels, as the case may be, and shall
preclude tenants fiom subletting or subleasing the unit. The agreement shall also require the owner
of the affordable unit to submit an annual report to the City Manage!', in.a format approved by the
City. The report shall inelude, 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; Occupaney; City's Right of First Refusal. Agreements for ownership units
shall specify that the inelusionary units must be occupied by the owner or owners and may not be
leased or rented without the written approval ofthe City. The resale restrictions shall provide that in
the event of the sale ofan affordable unit, the City shall have the right to purchase any affordable
owner-occupant ·unit at the maximum. pricc that could be charged to an eligible h01.l8eholç:l.
City of DubllriZonlng Ordinance
68-4
September, 1997
RevIsed Mørch 2005
IlP ðf-¡ii
INCLUSIONARY ZONING REGULATIONS
Chapter B.68
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.
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 Conununity Development, all sources of household income
and assets, the relationship between household size and the size of available units, and any further
criteria required by law. The developer shall use an equitable selection method established in
conformance with the terms of this chapter. The selection criteria may not distinguish between adults
and children. Selection of qualified person should be based on priorities established using the point
system described below:
· Employed within the boundaries of the City of Dublin (3 points, one per household)
· Public Service employee working in the City of Dublin (1 additional point)
· Dublin resident (3 points, one per household)
· SeIÚors (1 point, one per household)
· Permanently disabled (I point, one per household)
· Immediate family member of Dublin resident (1 point, one per household)
· Required to relocate from current Dublin residen.ce due to demolition of dwelling or
conversion of dwelling from rental to for-sale unit (1 point, one per household)
To qualifY as a "Public Service Employee", the person shall be employed by a Public Agency.
To qualifY as "Employed within the boundaries of the City of Dublin", the person shall have been
employed within the City of Dublin for at least six months.
To qualifY as a "Dublin resident," the person shall have been a resident of the City of Dublin for at
least a one-year period prior to the eligibility determination.
8.68.060. Affordable Unit Credits.
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 8.68.030A. 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.
City of Dublin Zoning Ordinance
68-5
September, 1997
Revised March 2005
I/(F'f¡ l't
INCLUSIONARY ZONING REGULATIOrll'S
Chapter 8.68
8.68.070. Incentives to EncoW'age On-Site Construction of Affordable Units. The City may, but shall
not be required to, offer incentives or financial assistance to encourage the on-site construction of
affordable units in excess of 12.5% of the total number of units in the project to the extent
resources for this purpose are available and approved for such use by the City Council or City
Manager. Such incentives may include, but shall not be limited to, the following:
A. Fee Deferral.
I. 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. Inelusionary Zoning In Lieu Fee Fund. In Lieu Fees shalJ be deposited into a fund known as
the "lnelusionary 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 8.68.030A to violate any provision or to fail to
68-6
September, 1997
Revised March 2005
City of Dublin Zoning Ordinance
l'ýj ~,rt
INCLUSIONARY ZONING REGULATIONS'
Chapter 8.68
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 oftbis Chapter shall constitute a misdemeanor;
except that notwithstanding any other provisions of this Code, any such violation con.stituting 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 bindmg 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, bnilding 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.
City of Dublin Zoning Ordinance
68·7
September, 1997
Revised March 2005