HomeMy WebLinkAbout03/02/1999, C2 - ANNUAL UTILITY TRENCH REPAIR SPECIFICATION NO. 92-03 B Dw
council 3%2/99
j acEnoa Report C�`
CITY OF SAN LUIS OBISPO /
FROM: McCluskey,Public Works DirectofvY'
Prepared By: Arthur R. Criddle, Engineering Technician �-
SUBJECT: ANNUAL UTILITY TRENCH REPAIR SPECIFICATION NO. 92-03 B
CAO RECOMMENDATION
1. Approve Specifications for"Annual Utility Trench Repair" Specification No. 92-03 B.
2. Authorize staff to advertise for bids.
3. Authorize the CAO to award the contract to the lowest responsible bidder.
DISCUSSION
During the course of the year, Utility Department crews make repairs of the utility lines in City
streets. At the time of repair, temporary patches to the street are made. The trench repair project
provides for permanent repair to be made to the street surface.
In May 1998, Council approved the 1998-99 Trench Repair Project, in an amount not to exceed
$70,000. That project has been completed. However, due to the number of temporary patches
that remain to be permanently repaired, staff is seeking approval for a phase B to this annual
project, in an amount not to exceed $60,000.
CONCURRENCES
Community Development Department has given this project a categorical exemption.
FISCAL IMPACT
The engineer's estimate for this project is for $60,000. Funding is available in the water systems
improvements account to support this request. This account currently has a balance of
$1,671,000,which will be used to fund the various approved water line improvements.
ATTACHMENTS
Specifications are available in the Council Office for review.
C2-1
council '°="D� _
qq
j agenda Repout �N.
C3
CITY OF SAN LUIS OBISPO
FROM: Arnold Jonas, Community Development Director D
Prepared By: Jeff Hook,Associate Plane
SUBJECT: FINAL PASSAGE OF OKINCE NO. 1348, MTLEMENTING THE
INCLUSIONARY HOUSING REQUIREMENT OF THE HOUSING
ELEMENT AND ESTABLISHING AN AFFORDABLE HOUSING
FUND.
CAO RECOMMENDATION
Grant final passage to Ordinance No. 1348.
DISCUSSION
On February 16, 1999, the Council voted 5-0 to introduce Ordinance No. 1348 to print. This
ordinance implements an inclusionary housing requirement and establishes an affordable housing
fund, thereby implementing two key programs of the Housing Element. The inclusionary
housing requirement will expand the supply of affordable housing by requiring most new
development projects to either construct affordable housing, pay an in-lieu housing fee or
dedicate real property for affordable housing. The affordable housing fund will provide a
dedicated source of funding, consisting of in-lieu fees and other funds held by the City, used
exclusively to increase and improve the supply of affordable housing.
As directed by Council,the ordinance includes several changes:
• The definitions section is reorganized and expanded to clarify "real property", "market
value", "equity build-up" and"expansion area", Section 17.91.020;
• The term"Land" dedication was changed to"Real Property" dedication, throughout text;
• A provision was added requiring all for-sale inclusionary units to be owner-occupied (Section
17.91.120, Program Requirements);
• The timing of payment of the Equity Recapture Fee was changed from "prior to"to "at" close
of escrow, Section 17.91.151.
Staff also made minor changes to clarify the timing and method of calculating city equity share,
Section 17.91.150.
Ordinance No. 1348 is now ready for final passage and will become effective thirty days after the
date of its final passage.
ATTACHMENT: Ordinance No. 1348 and Exhibit A
ihn.:indnsVPLena1
CM
ORDINANCE NO. 1348 (1999 Series)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
IMPLEMENTING THE INCLUSIONARY HOUSING REQUIREMENT OF THE
HOUSING ELEMENT AND ESTABLISHING AN AFFORDABLE HOUSING FUND
WHEREAS, the General Plan identifies affordable housing as a primary community goal
and seeks ways to provide housing which is affordable to very-low, low and moderate income
households within existing neighborhoods and in expansion areas;
WHEREAS, Land Use Element policies 2.5 and 2.13 call for new development to
contribute to the conservation or production of affordable housing, and call for the City to adopt
an inclusionary housing and development fee ordinance,consistent with the Housing Element;
WHEREAS, the City of San Luis Obispo has adopted a Housing Element of the General
Plan which documents housing needs and addresses the City's regional share housing needs for
households of all income levels,pursuant to Government Code Section 65584(a);
WHEREAS, based upon the needs analysis in the Housing Element,the City of San Luis
Obispo has determined that there is an unmet need for housing affordable to very-low, low and
moderate income households;
WHEREAS, the City has established quantified housing objectives to help meet its
regional share housing needs,based on its capacity to accommodate new residential development
during the Element's planning period from June 1994 to June 1999;
WHEREAS, the City's affordable housing production objective is 40 dwelling units per
year, for a total of 200 new affordable housing units during the planning period;
WHEREAS, the private market has not produced in the past, nor is likely to produce in
the future,a sufficient number of affordable dwellings to meet City quantified housing objectives
or the City's assigned regional share of lower income housing;
WHEREAS, despite increased City grant funding for affordable housing, local, state and
federal funding sources are limited and alone are not sufficient to enable the City to meet its
affordable housing objectives;
WHEREAS, new development which does not include or contribute affordable housing
exacerbates the City's shortage of affordable housing by: reducing the supply of land available
for residential development which could accommodate affordable housing, and by inducing
additional demand for housing to serve the needs of very-low, low and moderate income
employees,many of whom are employed in lower wage retail and service industries;
WHEREAS, to address the City's affordable housing needs and help achieve its regional
housing objectives,the Housing Element Program 1.22.10 calls for the City to amend its
regulations to require that new development projects include affordable housing units or pay an
in-lieu fee, as described in Table 1 of the Element;
C3-2
Ord. 1348 Page 1 of 11
Ordinance No. 1348 (1999 Series)
Page 2
WHEREAS, Housing Element Program 1.22.11 calls for the City to establish a housing
trust fund to be used to develop affordable housing units and acquire land for affordable housing
projects,with affordable housing in-lieu fees to be collected and deposited in this fund;
WHEREAS, the City conducted an economic study of the effects of affordable housing
requirements on the feasibility of new development in San Luis Obispo entitled the Mundie
Report,prepared in 1991 and updated in 1997;
WHEREAS,the economic study concludes that while the affordable housing requirement
would create an additional economic burden on private developers, implementation of the City's
affordable housing requirements will not pose an unreasonable economic hardship and that the
requirements will help achieve City affordable housing objectives without sacrificing economic
feasibility of new development;
WHEREAS, the City has adopted affordable housing incentives (SLOMC Ch. 17.90) to
provide technical,financial and procedural assistance to developers of affordable housing to help
offset development costs and facilitate the conservation and production of affordable housing;
and
WHEREAS, the City Council established a citizen task force to evaluate the proposed
Inclusionary Housing Requirement,composed of persons representing various points of view in the
community, and said task force reviewed and recommended changes to a draft ordinance
implementing an Inclusionary Housing Requirement;and
WHEREAS,Planning Commission and the City Council have held hearings to consider the
proposed ordinance, and said ordinance comes to the Council with a favorable recommendation
from the citizen task force and the Planning Commission;
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Findings.
1. This ordinance is necessary to implement General Plan policy and programs, to help
achieve City quantified housing objectives and to protect the health, safety and
welfare of its citizens.
2. This ordinance is not a "project" as defined by the California Environmental Quality
Act in that it implements adopted policy and will not result in any physical change to
the environment; consequently no further environmental determination is required.
SECTION 2. Inclusionary Housing Requirement. The City Council hereby
implements the Inclusionary Housing Requirement and establishes an Affordable Housing Fund,
as specified in the attached ordinance text, Exhibit A.
C3-3
Ord. 1348 Page 2 of 11
Ordinance No. 1348 (1999 Series)
Page 3
SECTION 3. A summary of this ordinance, approved by the City Attorney,together with
the names of the Council members voting for and against it, shall be published at least five days
prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this
City. This ordinance will go into effect at the expiration of thirty (30)days after its final passage.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis
Obispo at a meeting held on the sixteenth day of February, 1999, upon motion of Council
member Ewan, seconded by Council member Schwartz and on the following roll call vote:
AYES: Council Members Ewan, Marx, Schwartz, Vice Mayor Romero, and
Mayor Settle
NOES: None
ABSENT: None
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
J10�jtj.J rge n, ty Attorney
Attachment: Exhibit A
jh/L:inelhsg3.ord
C3-4
Ord. 1348 Page 3 of 11
January 26, 1999 increasing the production and availability of
affordable housing units, and to establish an
EXMIT A inclusionary housing requirement which
Chapter 17.91 implements General Plan policies guiding
land use and housing development.
INCLUSIONARY HOUSING
REQUIREMENT 17.91.020 Definitions.
For the purposes of this chapter, the
Sections: following words and phrases shall have the
17.91.000 Title. meaning set forth below:
17.91.010 Purpose. A. "Affordable" means housing which can
17.91.020 Definitions. be purchased or rented by a household with
17.91.030 Applicability and very-low, low, or moderate income, as
Exclusions. described in the City's Affordable Housing
17.91.040 General standards. Standards (Ch. 17.20, SLOMC).
17.91.050 Procedures. B. "Affordable Housing Agreement" shall
17.91.060 In-lieu housing fee. mean a written agreement between the
17.91.070 Affordable Housing fund. developer, City and possibly additional
17.91.080 Dedication of land. parties which specifies the terms and
17.91.090 Incentives. conditions under which affordable housing
17.91.100 Project Application. requirements are to be met.
17.91.110 Conditions of development C. "Affordable Housing Project" shall
approval. mean a development project in which one
17.91.120 Program Requirements. hundred percent of the dwellings to be built
17.91.130 Eligibility Screening. will be sold or rented in conformance with
17.91.140 Affordability Restrictions. the City's Affordable Housing Standards.
17.91.150 Shared Equity Purchase D. "Building Valuation" shall mean the
Program, total value of all construction work for
17.91.151 Early Resale of Shared which a construction permit is required, as
Equity Properties. determined by the Chief Building Official
17.91.160 Management and using the Uniform Building Code.
Monitoring. E. "Commercial Project- means a
17.91.170 Enforcement and Appeals. development project involving primarily
17.91.180 Severability. non-residential uses, including retail,
office, service-commercial, light-industrial,
17.91.000 Title. neighborhood commercial, tourist-
The provisions of this chapter shall commercial, and manufacturing uses as
be known collectively as the Inclusionary further described in the zoning regulations.
Housing Requirement of the City of San F. "Density" means residential density as
Luis Obispo. defined in Section 17.16.010 of this code.
G. "Density bonus" means a density
17.91.010 Purpose. increase of at least twenty-five percent over
The purpose and intent of this the maximum density otherwise allowable
chapter is to promote the public welfare by under the zoning regulations.
H. "Development project" shall mean an
C3-5
Ord. 1348 Page 4 of 11
Inclusionary Housing Requirement
activity for which a subdivision map or include those persons and families whose
construction permit is required, including incomes exceed eighty percent but are less
new buildings and building additions or than or equal to one hundred twenty percent
remodels as described in Section of the median income within the county.
17.91.030, but not including changes in (Ord. 1035 § 1 (part), 1985)
ownership, occupancy, management or use. Q. "Residential Development" shall mean
I. "Director" means the Community development projects which result in the
Development Director or his authorized subdivision of land and/or the construction
representative. or conversion of dwellings, including, but
J. "Expansion Area" - A land area not limited to: single family detached
proposed for annexation to the City. homes, apartments, condominiums,
K. "Affordable Housing Fund" means a live/work studios, mobile homes, and
fund established and administered by the group housing.
City, containing in-lieu fees and other funds
held in trust and used exclusively to 17.91.030 Applicability and
increase and improve the supply of Exclusions.
affordable housing. A. This chapter shall apply to development
L. "Inclusionary housing unit" means a projects consisting of five or more lots or
dwelling which is built under the provisions new dwelling units, and to commercial
of this chapter, and which meets the City's development projects consisting of 2,500
Affordable Housing Standards. square feet of gross floor area or larger.
M. "In-lieu fee" means a fee paid to the B. The following types of development
City as an alternative to the production of projects are excluded:
inclusionary housing, to be used in the 1. Residential developments of 4 units or
acquisition, construction, or rehabilitation less;
of affordable housing. 2. New commercial developments of less
N. "Very-low income" shall have the than 2,500 square feet gross floor area;
meaning set forth in California Health and 3. Residential and commercial building
Safety Code, Section 50105; provided that additions, repairs or remodels,
such income level shall not exceed 50 provided that such work does not
percent of median income within the increase the number of existing
county. dwellings by four or more units; or
O. "Low" or "lower income households" result in an increase in gross floor area
shall have the meaning set forth in of 2,500 square feet;
California Health and Safety Code, Section 4. The conversion of less than five
50079.5; provided the income of such dwelling units to condominiums within
persons and families shall not exceed eighty any five-year period.
percent of the median income within the 5. Commercial condominium conversions
county. which do not result in the creation of
P. "Moderate income households" shall new dwellings;
2
C3-6
Ord. 1348 Page 5 of 11
Inclusionary Housing Requirement
6. Affordable housing projects; or
7. Emergency projects, or projects which 4. Use a combination of the above
the City Council determines are methods, to the approval of the City
necessary to protect public health and Council.
safety; B. Affordable housing standards.
8. Development projects which the City Affordable dwelling units constructed must
Council determines are essentially non- meet City Affordable Housing Standards,
commercial or non-residential in nature, and must be consistent with affordability
which provide educational, social or policies in the General Plan Housing
related services to the community and Element.
which are proposed by public agencies, C. Concurrent development. The required
non-profit agencies, foundations and inclusionary units shall be constructed
other similar organizations; concurrent with market rate units unless the
9. Projects which replace or restore a developer and the City Council agree
structure damaged or destroyed by within an Affordable Housing Agreement
fire, flood, earthquake or other disaster to an alternative development schedule.
within three years prior to the
application for the new structure(s). 17.91.050 Procedures.
10. Projects for which an approved A. Fractional numbers. In determining the
tentative map or vesting tentative map number of dwellings that are required to be
exists, or for which a construction built pursuant to Table 1, fractional units
permit was issued prior to the effective less than 0.50 shall be rounded down to the
date of this ordinance and which first whole number unit, and fractional
continue to have unexpired permits. units of 0.50 or greater shall be rounded up
to the next higher whole number unit, as
17.91.040 General Standards. calculated by the Director.
A. Methods of meeting requirements. New B. Timing. The inclusionary housing
development projects shall satisfy the requirement shall be met prior to issuance
inclusionary housing requirements, as of a Certificate of Occupancy for the first
specified in Table 1 of the General Plan unit in a building, or the first building in a
Housing Element. To meet the complex to be constructed or remodeled; or
requirements, the developer shall comply for subdivisions, prior to final map
with one or more of the following methods; approval; or prior to building permit
1. Construct the required number of issuance, for projects for which a
affordable dwelling units, as Certificate of Occupancy is not issued; or
specified in Table 1, on the project as otherwise agreed to by the City Council
site; or as part of tentative map, rezoning,
2. Pay an in-lieu fee as described in conditional use permit or other
Table 1; or development approval.
3. Dedicate land for affordable housing; C. Affordable housing agreement. To meet
3
C3-7
Ord. 1348 Page 6 of 11
Inclusionary Housing Requirement
the requirements, the developer may enter shall be used exclusively to provide funding
into an agreement with the City, the City's for the provision of affordable housing and
Housing Authority, non-profit housing for reasonable costs associated with the
provider, or other qualified housing development of affordable housing, at the
provider approved by the City Council to discretion of the City Council.
construct, refurbish, convert, operate and A. In-Lieu fees. In-lieu fees collected shall
maintain the required affordable housing. be deposited into the Affordable Housing
Such Affordable Housing Agreements shall Fund, to the satisfaction of the Director.
be to the approval of the Director and shall
be in a form approved by the City 17.91.080 Dedication of Land.
Attorney. A. Irrevocable offer of land dedication. At
the discretion of the City Council, an
17.91.060 In-lieu Housing Fee. . irrevocable offer to dedicate land equal or
A. Payment of in-lieu fee. Developer may, greater in value to the m-lieu fee which
at his discretion, choose to pay a fee to the would otherwise be required may be
City in lieu of constructing affordable offered to the City, or to a housing
dwellings to meet this requirement. provider designated by the City, instead of
B. Amount and method of payment. The providing the required number of
dollar amount and method of payment of affordable dwellings or paying in-lieu fees.
the in-lieu fee shall be as described in Table In considering an offer to dedicate land to
1 of the General Plan Housing Element, to meet this requirement, the City Council
the approval of the Director. must find that the dedication of land will
C. Timing. In-lieu fees shall be paid prior provide equal or greater public benefit than
to release of occupancy of the first dwelling constructing affordable units or paying in-
within a residential development; or for lieu fees, based on the following criteria:
residential subdivisions to be built out by 1. Valuation of the land to be
others, prior to final subdivision map dedicated relative to other methods
approval; or prior to occupancy for new of meeting the requirement;
commercial buildings or remodels; or prior 2. Suitability of the land for housing,
to building permit issuance, for projects for including General Plan conformity,
which a certificate of occupancy is not size, shape, topography, and
issued; or as otherwise provided by written location; and
agreement between the developer and City, 3. Feasibility of developing affordable
to the approval of the Director. housing, including general plan
consistency, and availability of
17.91.070 Affordable Housing Fund. infrastructure.
Affordable Housing Fund established. The B. Land valuation. The valuation of land
City hereby establishes an Affordable offered in-lieu shall be determined by the
Housing Fund. Said fund shall be Director, based upon an appraisal made by
administered by the Finance Director and a qualified appraiser mutually agreed to by
4
C3-8
Ord. 1348 Page 7 of 11
Inclusionary Housing Requirement
the developer and the City. Costs the approval of the City Attorney and the
associated with the appraisal, title insurance Director. Developers are further
and transfer, recordation and related costs encouraged to utilize other local, state or
shall be borne by the developer. federal assistance, when available, to meet
C Agreement and Timing. The land the affordable housing standards.
dedication shall be by deed or other
instrument acceptable to the City, and shall 17.91.100 Project Application.
be completed by recordation with the A. Method of application. An
Recorder of the County of San Luis Obispo applicant/developer proposing a project for
prior to occupancy release of the first which affordable housing is required shall
residential unit or commercial building in submit a statement with the standard
the development; or prior to building planning application, describing the
permit issuance, for projects for which a inclusionary housing proposal. The
certificate of occupancy is not issued; or as developer's statement shall include:
otherwise provided by written agreement 1. A brief description of the proposal,
between the developer and the City. including the method chosen to meet
the inclusionary housing
17.91.090 Incentives. requirement, number, type and
A. Eligibility for incentives. The developer location of affordable units, term of
may be eligible to receive, or to request affordability, preliminary
development incentives in return for calculation of in-lieu fees, or offer
constructing affordable housing in of land dedication;
connection with a development project, 2. How the proposal meets General
pursuant to the Affordable Housing Plan policies and inclusionary
Incentives (SLOMC Chapter 17.90), as part housing requirements;
of a City planning application. Incentives 3. Plans and other exhibits showing
or other forms of financial assistance may preliminary site layout, grading,
be offered by the City to the extent that building elevations, parking and
resources are available for this purpose and other site features, location of
to the degree that such incentives or affordable dwelling units and (where
assistance will help achieve the City's applicable), market-rate dwelling
housing goals. units;
B. Affordable Housing Agreement. Any 4. Description of incentives requested,
incentives provided by the City, beyond including exceptions from
those incentives to which a developer may development standards, density
be automatically entitled to under Ch. bonuses, fee waivers or other
17.90 of this code, shall require City incentives; and
Council approval and shall be set out in an 5. Other information which the
Affordable Housing Agreement. The form Director determines necessary to
and content of such agreement shall be to adequately evaluate the proposal.
5
C3-9
Ord. 1348 Page 8 of I1
Inclusionary Housing Requirement
B. Director response. After receiving a affordable units;
complete planning application, including an 2. The size (square footage), number
affordable housing proposal, the Director of bedrooms, and design of the
shall respond to the applicant or affordable units;
developer's affordable housing proposal. 3. Terms of affordability;
The City response shall identify: 1) 4. Schedule for construction of the
affordable housing issues and concerns; 2) affordable units;
incentives which the Director can support 5. Incentives or other assistance to be
when making a recommendation to the provided by the City;
decision-making body; and 3) procedures 6. Where applicable, the procedures to
which will need to be followed to comply be used for qualifying tenants or
with the inclusionary housing requirements. buyers, setting rental/sales costs,
renting or selling units, filling
17.19.110 Conditions of Development vacancies, and managing the units;
Approval. and
A. Submittal of an Affordable Housing 7. Other terms or conditions requested
Agreement. Applicants and developers for by City.
development projects subject to this chapter B. Agreements for land dedication. For
shall, as a condition of development development projects meeting their
approval, prepare and submit an Affordable inclusionary housing requirement through
Housing Agreement for City approval. The land dedication, the agreement shall
draft agreement shall be reviewed by the specify:
Director and City Attorney for compliance 1. The method of conveyance,
with project approvals, City policies and schedule, and appraised value of the
standards, and applicable codes. Following proposed land dedication;
approval and signing of the agreement by 2. Calculation of housing in-lieu fees
the parties, the final agreement shall be otherwise applicable to the project at
recorded and relevant terms and conditions the time of recordation;
shall be recorded as a deed restriction on 3. Title report and insurance;
those lots or affordable units subject to 4. Description of location, condition,
affordability requirements. The Affordable improvements, and other relevant
Housing Agreement shall be binding to all factors applying to the property; and
future owners and successors in interest. 5. Other information required by the
B. Agreements for constructing affordable City.
units. For development projects meeting C. Payment of in-lieu fees. An Affordable
their inclusionary requirement through Housing Agreement shall not be required
construction of affordable dwelling units, for projects which meet their inclusionary
the Affordable Housing Agreement shall housing requirement through the payment
specify: of an in-lieu fee.
1. The number and location of
6
C3-10
Ord. 1348 Page 9 of 1 I
Inclusionary Housing Requirement
17.91.120 Program Requirements. City's equity share in the property. The
Only households qualifying as very low, City's equity share shall be the percentage
low or moderate income, pursuant to the of the property's value that is determined
Affordable Housing Standards, shall be by:
eligible to rent, purchase or occupy (a) the difference between the
inclusionary units developed or funded in market-price upon purchase and
compliance with this requirement. the actual price paid by the
homeowner, and/or
17.91.130 Eligibility Screening. The
City, its housing authority, or other (b) the amount of subsidy given to
housing provider designated by the City the homeowner to purchase the
shall screen prospective renters or buyers property.
of affordable units. Renters or buyers of
affordable units shall enter into an Upon sale, the City's equity share shall be
agreement with City, its housing authority repaid to the City from the proceeds of the
or other housing provider to comply with sale, less the City's percentage share of title
affordable housing standards. insurance, escrow fees and documentary
transfer taxes, at the close of escrow.
17.91.140 Affordability Restrictions.
Developers of affordable units for sale shall 17.91.151. Early Resale of Shared Equity
specify the type of affordability restriction Properties. In the event of "early resale",
to be applied. The developer shall choose owners of properties subject to the Shared
to either: 1) participate in a Shared Equity Equity Purchase Program shall either 1)
Purchase Program, as described in Section pay an equity recapture fee to the City as
17.91.150, or 2) to enter into an affordable described in the schedule below, in addition
housing agreement to ensure that to the City's equity share, or 2) sell the
affordability is maintained for a period of property to another eligible household.
not less than 30 years, or as otherwise "Early resale" shall mean the sale, lease or
required by State law. Affordable rental transfer of property within five (5) years of
units shall be subject to a 30 year term of the initial close of escrow. If owner
affordability. chooses to pay the equity recapture fee, the
recapture fee shall be paid to the City prior
17.91.150 Shared Equity Purchase to close of escrow at resale, based on the
Program. Under this program, the following schedule:
qualified buyer of a designated affordable
dwelling unit shall enter into a shared
equity agreement with the City. Said
agreement shall be recorded as a second
trust deed against the purchased property,
at no interest, securing and stating the
C3-11
Ord. 1348 Page 10 of 11
Inclusionary Housing Requirement
Year % of Equity Build-up
Recaptured: 17.91.180 Severability. If any
provision of this chapter or the application
0-2 100% thereof to any person or circumstances is
3 75% held invalid, the remainder of the chapter
4 50% and the application of the provision to other
5 25% persons or situations shall not be affected
6 and after 0% thereby.
"Equity Build-up" shall be defined as the
property sales price less actual purchase
price, less the City's equity. The recapture
amount shall be determined prior to the
calculation of escrow closing costs.
17.91.160 Management and
Monitoring. Inclusionary rental units shall
be managed and operated by the property
owner, or the owner's agent, for the term
of the Affordable Housing Agreement.
Sufficient documentation shall be submitted
to ensure compliance with this chapter, to
the satisfaction of the Director.
17.91.170 Enforcement and Appeals.
A. Enforcement. No final subdivision map
shall be approved, nor building permit
issued, nor shall any other development
entitlement be granted for a development
project which does not meet these
requirements. No inclusionary unit shall be
rented or sold except in accordance with
these requirements and the affordable
housing standards.
B. Appeals. The Director shall administer
and interpret these requirements, subject to
applicable codes and City procedures. rwt..nM ev3.ora
Decisions of the Director are appealable,
subject to the zoning regulations appeal
provisions. (SLOMC Ch.17-66).
8
C3-12
Ord. 1348 Page 11 of 11
EXHIBIT A affordable housing units, and to establish an
inclusionary housing requirement which
Chapter 17.91 implements General Plan policies guiding
land use and housing development.
INCLUSIONARY HOUSING
REQUIREMENT 17.91.020 Definitions.
For the purposes of this chapter, the
Sections: following words and phrases shall have the
17.91.000 Title. meaning set forth below:
17.91.010 Purpose. A. "Affordable" means housing which can
17.91.020 Definitions. be purchased or rented by a household with
17.91.030 Applicability and very-low, low, or moderate income, as
Exclusions. described in the City's Affordable Housing
17.91.040 General standards. Standards (Ch. 17.20, SLOMC).
17.91.050 Procedures. B. "Affordable Housing Agreement" shall
17.91.060 In-lieu housing fee. mean a written agreement between the
17.91.070 Affordable Housing fund. developer, City and possibly additional
17.91.080 Real Property Dedication. parties which specifies the terms and
17.91.090 Incentives. conditions under which affordable housing
17.91.100 Project Application. requirements are to be met.
17.91.110 Conditions of development C. "Affordable Housing Fund" means a
approval. fund established and administered by the
17.91.120 Program Requirements. City, containing in-lieu fees and other funds
17.91.130 Eligibility Screening. held and used exclusively to increase and
17.91.140 Affordability Restrictions. improve the supply of affordable housing.
17.91.150 Shared Equity Purchase D. "Affordable Housing Project" shall
Program, mean a development project in which one
17.91.151 Early Resale of Shared hundred percent of the dwellings to be built
Equity Properties. will be sold or rented in conformance with
17.91.160 Management and the City's Affordable Housing Standards.
Monitoring. E. "Building Valuation" shall mean the
.17.91.170 Enforcement and Appeals. total value of all construction work for
17.91.180 Severability. which a construction permit is required, as
determined by the Chief Building Official
17.91.000 Title. using the Uniform Building Code.
The provisions of this chapter shall F. "Commercial Project" means a
be known collectively as the Inclusionary development project involving primarily
Housing Requirement of the City of San non-residential uses, including retail,
Luis Obispo. office, service-commercial, light-industrial,
neighborhood commercial, tourist-
17.91.010 Purpose. commercial, and manufacturing uses as
The purpose and intent of this further described in the zoning regulations.
chapter is to promote the public welfare by G. "Density" means residential density as
increasing the production and availability of defined in Section 17.16.010 of this code.
H. "Density bonus" means a density
C3-13
Inclusionary Housing Requirement
increase of at least twenty-five percent over incomes exceed eighty percent but are less
the maximum density otherwise allowable than or equal to one hundred twenty percent
under the zoning regulations. of the median income within the county.
I. "Development project" shall mean an (Ord. 1035 § 1 (part), 1985)
activity for which a subdivision map or Q. "Real Property" shall mean land and
construction permit is required, including improvements, if any, including anything
new buildings and building additions or permanently affixed to the land, such as
remodels as described in Section buildings, walls, fences, and paved areas.
17.91.030, but not including changes in R. "Residential Project" shall mean
ownership, occupancy, management or use. development projects which result in the
J. "Director" means the Community subdivision of land and/or the construction
Development Director or his authorized or conversion of dwellings, including, but
representative. not limited to: single family detached
K. "Equity Build-up" shall mean a homes, apartments, condominiums,
property's sales price at first resale, less the live/work studios, mobile homes, and
initial purchase price and less the City's group housing.
equity share as described in Section S. "Very-low income" shall have the
17.91.150. meaning set forth in California Health and
L. "Expansion Area" - A land area Safety Code, Section 50105; provided that
proposed for annexation to the City or such income level shall not exceed 50
annexed after the adoption date of this percent of median income within the
ordinance. county.
M. "Inclusionary housing unit" means a
dwelling which is built under the provisions 17.91.030 Applicability and
of this chapter, and which meets the City's Exclusions.
Affordable Housing Standards. A. This chapter shall apply to development
N. "In-lieu fee" means a fee paid to the projects consisting of five or more lots or
City as an alternative to the production of new dwelling units, and to commercial
inclusionary housing, to be used in the development projects consisting of 2,500
acquisition, construction, or rehabilitation square feet of gross floor area or larger.
of affordable housing. B. The following types of development
O. "Low" or "lower income households" projects are excluded:
shall have the meaning set forth in 1. Residential developments of 4 units or
California Health and Safety Code, Section less;
50079.5; provided the income of such 2. New commercial developments of less
persons and families shall not exceed eighty than 2,500 square feet gross floor area;
percent of the median income within the 3. Residential and commercial building
county. additions, repairs or remodels,
P. "Moderate income households" shall provided that such work does not
include those persons and families whose increase the number of existing
2
C3-14
Inclusionary Housing Requirement
dwellings by four or more units; or requirements, the developer shall comply
result in an increase in gross floor area with one or more of the following methods;
of 2,500 square feet; 1. Construct the required number of
4. The conversion of less than five affordable dwelling units, as
dwelling units to condominiums within specified in Table 1, or
any five-year period. 2. Pay an in-lieu fee as described in
5. Commercial condominium conversions Table 1; or
which do not result in the creation of 3. Dedicate real property for affordable
new dwellings; housing; or
6. Affordable housing projects; 4. Use a combination of the above
7. Emergency projects, or projects which methods, to the approval of the City
the City Council determines are Council.
necessary to protect public health and B. Affordable housing standards.
safety; Affordable dwelling units constructed must
8. Development projects which the City meet City Affordable Housing Standards,
Council determines are essentially non- and must be consistent with affordability
commercial or non-residential in nature, policies in the General Plan Housing
which provide educational, social or Element.
related services to the community and C. Concurrent development. The required
which are proposed by public agencies, inclusionary units shall be constructed
non-profit agencies, foundations and concurrently with market rate units unless
other similar organizations; the developer and the City Council agree
9. Projects which replace or restore a within an Affordable Housing Agreement
structure damaged or destroyed by to an alternative development schedule.
fire, flood, earthquake or other disaster
within three years prior to the 17.91.050 Procedures.
application for the new structure(s). A. Fractional numbers. In determining the
10. Projects for which an approved number of dwellings that are required to be
tentative map or vesting tentative map built pursuant to Table 1, fractional units
exists, or for which a construction less than 0.50 shall be rounded down to the
permit was issued prior to the effective first whole number unit, and fractional
date of this ordinance and which units of 0.50 or greater shall be rounded up
continue to have unexpired permits. to the next higher whole number unit, as
calculated by the Director.
17.91.040 General Standards. B. Timing. The inclusionary housing
A. Methods of meeting requirements. New requirement shall be met prior to issuance
development projects shall satisfy the of a Certificate of Occupancy for the first
inclusionary housing requirements, as unit in a building, or the first building in a
specified in Table 1 of the General Plan complex to be constructed or remodeled; or
Housing Element. To meet the for subdivisions, prior to final map
3
C3-15
Inclusionary Housing Requirement
approval; or prior to building permit agreement between the developer and City,
issuance, for projects for which a to the approval of the Director.
Certificate of Occupancy is not issued; or
as otherwise agreed to by the City Council 17.91.070 Affordable Housing Fund.
as part of tentative map, rezoning, Affordable Housing Fund established. The
conditional use permit or other City hereby establishes an Affordable
development approval. Housing Fund. Said fund shall be
C. Affordable housing agreement. To meet administered by the Finance Director and
the requirements, the developer may enter shall be used exclusively to provide funding
into an agreement with the City, the City's for the provision of affordable housing and
Housing Authority, non-profit housing for reasonable costs associated with the
provider, or other qualified housing development of affordable housing, at the
provider approved by the City Council to discretion of the City Council.
construct, refurbish, convert, operate and A. In-lieu fees. In-lieu fees collected shall
maintain the required affordable housing. be deposited into the Affordable Housing
Such Affordable Housing Agreements shall Fund, to the satisfaction of the Director.
be to the approval of the Director and shall
be in a form approved by the City 17.91.080 Real Property Dedication
Attorney. A. Irrevocable offer to dedicate real
property. At the discretion of the City
17.91.060 In-lieu Housing Fee. Council, an irrevocable offer to dedicate
A. Payment of in-lieu fee. Developer may, real property equal or greater in value to
at his discretion, choose to pay a fee to the the in-lieu fee which would otherwise be
City in lieu of constructing affordable required may be offered to the City, or to a
dwellings to meet this requirement. housing provider designated by the City,
B. Amount and method of payment. The instead of providing the required number of
dollar amount and method of payment of affordable dwellings or paying in-lieu fees.
the in-lieu fee shall be as described in Table In considering an offer to dedicate real
1 of the General Plan Housing Element, to property, the City Council must find that
the approval of the Director. the dedication of real property will provide
C. Timing. In-lieu fees shall be paid prior equal or greater public benefit than
to release of occupancy of the first dwelling constructing affordable units or paying in-
within a residential development; or for lieu fees, based on the following criteria:
residential subdivisions to be built out by 1. Valuation of the land and/or
others, prior to final subdivision map improvements to be dedicated
approval; or prior to occupancy for new relative to other methods of
commercial buildings or remodels; or prior meeting the requirement;
to building permit issuance, for projects for 2. Suitability of the land and/or
which a certificate of occupancy is not improvements for housing,
issued; or as otherwise provided by written including General Plan conformity,
a
C3-16
Inclusionary Housing Requirement
size, shape, topography, and to the degree that such incentives or
location; and assistance will help achieve the City's
3. Feasibility of developing affordable housing goals.
housing, including general plan B. Affordable Housing Agreement. Any
consistency, and availability of incentives provided by the City, beyond
infrastructure. those incentives to which a developer may
B. Real Property valuation. The valuation be automatically entitled to under Ch.
of real property offered in-lieu shall be 17.90 of this code, shall require City
determined by the Director, based upon an Council approval and shall be set out in an
appraisal made by a qualified appraiser Affordable Housing Agreement. The form
mutually agreed to by the developer and the and content of such agreement shall be to
City. Costs associated with the appraisal, the approval of the City Attorney and the
title insurance and transfer, recordation and Director. Developers are further
related costs shall be borne by the encouraged to utilize other local, state or
developer. federal assistance, when available, to meet
C Agreement and Timing. The real the affordable housing standards.
property dedication shall be by deed or
other instrument acceptable to the City, and 17.91.100 Project Application.
shall be completed by recordation with the A. Method of application. An
Recorder of the County of San Luis Obispo applicant/developer proposing a project for
prior to occupancy release of the first which affordable housing is required shall
residential unit or commercial building in submit a statement with the standard
the development; or prior to building planning application, describing the
permit issuance, for projects for which a inclusionary housing proposal. The
certificate of occupancy is not issued; or as developer's statement shall include:
otherwise provided by written agreement 1. A brief description of the proposal,
between the developer and the City. including the method chosen to meet
the inclusionary housing
17.91.090 Incentives. requirement, number, type and
A. Eligibility for incentives. The developer location of affordable units, term of
may be eligible to receive, or to request affordability, preliminary
development incentives in return for calculation of in-lieu fees, or offer
constructing affordable housing in of land dedication;
connection with a development project, 2. How the proposal meets General
pursuant to the Affordable Housing Plan policies and inclusionary
Incentives (SLOMC Chapter 17.90), as part housing requirements;
of a City planning application. Incentives 3. Plans and other exhibits showing
or other forms of financial assistance may preliminary site layout, grading,
be offered by the City to the extent that building elevations, parking and
resources are available for this purpose and other site features, location of
5
C3-17
Inclusionary Housing Requirement
affordable dwelling units and (where those lots or affordable units subject to
applicable), market-rate dwelling affordability requirements. The Affordable
units; Housing Agreement shall be binding to all
4. Description of incentives requested, future owners and successors in interest.
including exceptions from B. Agreements for constructing affordable
development standards, density units. For development projects meeting
bonuses, fee waivers or other their inclusionary requirement through
incentives; and construction of affordable dwelling units,
5. Other information which the the Affordable Housing Agreement shall
Director determines necessary to specify:
adequately evaluate the proposal. 1. The number and location of
B. Director response. After receiving a affordable units;
complete planning application, including an 2. The size (square footage), number
affordable housing proposal, the Director of bedrooms, and design of the
shall respond to the applicant or affordable units;
developer's affordable housing proposal. 3. Terms of affordability;
The City response shall identify: 1) 4. Schedule for construction of the
affordable housing issues and concerns; 2) affordable units;
incentives which the Director can support 5. Incentives or other assistance to be
when making a recommendation to the provided by the City;
decision-making body; and 3) procedures 6. Where applicable, the procedures to
which will need to be followed to comply be used for qualifying tenants or
with the inclusionary housing requirements. buyers, setting rental/sales costs,
renting or selling units, filling
17.19.110 Conditions of Development vacancies, and managing the units;
Approval. and
A. Submittal of an Affordable Housing 7. Other terms or conditions requested
Agreement. Applicants and developers for by City.
development projects subject to this chapter B. Agreements for real property
shall, as a condition of development dedication. For development projects
approval, prepare and submit an Affordable meeting their inclusionary housing
Housing Agreement for City approval. The requirement through real property
draft agreement shall be reviewed by the dedication, the agreement shall specify:
Director and City Attorney for compliance 1. The method of conveyance,
with project approvals, City policies and schedule, and appraised value of the
standards, and applicable codes. Following proposed dedication;
approval and signing of the agreement by 2. Calculation of housing in-lieu fees
the parties, the final agreement shall be otherwise applicable to the project at
recorded and relevant terms and conditions the time of recordation;
shall be recorded as a deed restriction on 3. Title report and insurance;
6
C3-18
Inclusionary Housing Requirement
4. Description of location, condition, affordability is maintained for a period of
improvements, and other relevant not less than 30 years, or as otherwise
factors applying to the property; and required by State law. Affordable rental
5. Other information required by the units shall be subject to a 30 year term of
City. affordability.
C. Payment of in-lieu fees. An Affordable
Housing Agreement shall not be required 17.91.150 Shared Equity Purchase
for projects which meet their inclusionary Program. Under this program, the
housing requirement through the payment qualified buyer of a designated affordable
of in-lieu fees. dwelling unit shall enter into a shared
equity agreement with the City. Said
17.91.120 Program Requirements. agreement shall be recorded as a second
Only households qualifying as very low, trust deed against the purchased property,
low or moderate income, pursuant to the at no interest, securing and stating the
Affordable Housing Standards, shall be City's equity share in the property. The
eligible to rent, purchase or occupy City's equity share shall be calculated by
inclusionary units developed or funded in the Director, and shall be the decimal
compliance with this requirement. For sale percentage of the property's value resulting
inclusionary housing units shall be owner from:
occupied for the term of the Affordable (a) the difference between the
Housing Agreement. property's market value and the
actual price paid by the
17.91.130 Eligibility Screening. The homeowner, divided by the
City, its housing authority, or other market value, and/or when
housing provider designated by the City applicable,
shall screen prospective renters or buyers
of affordable units. Renters or buyers of (b) the amount of subsidy provided
affordable units shall enter into an by the City to the homeowner to
agreement with City, its housing authority purchase the property, divided
or other housing provider to comply with by the property's market price.
the Affordable Housing Standards.
Upon sale, the City's equity share shall be
17.91.140 Affordability Restrictions. repaid to the City from the proceeds of the
Developers of affordable units for sale shall sale, less the City's percentage share of title
specify the type of affordability restriction insurance, escrow fees and documentary
to be applied. The developer shall choose transfer taxes, at the close of escrow.
to either: 1) participate in a Shared Equity
Purchase Program, as described in Section 17.91.151. Early Resale of Shared Equity
17.91.150, or 2) to enter into an affordable Properties. In the event of "early resale",
housing agreement to ensure that owners of properties subject to the Shared
C3-19
Inclusionary Housing Requirement
Equity Purchase Program shall either 1) project which does not meet these
pay an equity recapture fee to the City as requirements. No inclusionary unit shall be
described in the schedule below, in addition rented or sold except in accordance with
to the City's equity share, or 2) sell the these requirements and the affordable
property to another eligible household. housing standards.
"Early resale" shall mean the sale, lease or B. Appeals. The Director shall administer
transfer of property within five (5) years of and interpret these requirements, subject to
the initial close of escrow. If owner applicable codes and City procedures.
chooses to pay the equity recapture fee, the Decisions of the Director are appealable,
recapture fee shall be paid to the City upon subject to the zoning regulations appeal
resale at close of escrow, based on the provisions. (SLOMC Ch.17.66).
following schedule:
17.91.180 Severability. If any
Year % of Equity Build-up provision of this chapter or the application
Recaptured: thereof to any person or circumstances is
held invalid, the remainder of the chapter
0-2 100% and the application of the provision to other
3 75% persons or situations shall not be affected
4 50% thereby.
5 25%
6 and after 0%
The recapture amount shall be determined
prior to the calculation of escrow closing
costs.
17.91.160 Management and
Monitoring. Inclusionary rental units shall
be managed and operated by the property
owner, or the owner's agent, for the term
of the Affordable Housing Agreement.
Sufficient documentation shall be submitted
to ensure compliance with this chapter, to
the satisfaction of the Director.
17.91.170 Enforcement and Appeals.
A. Enforcement. No final subdivision map
shall be approved, nor building permit J1VL:IHTFrev5.ord.2/18/99
issued, nor shall any other development
entitlement be granted for a development
8
C3-20