HomeMy WebLinkAbout08/21/2007, PH 2 - TEXT AMENDMENTS TO MUNCIPAL CODE SECTION 17.91: INCLUSIONARY HOUSING ORDINANCE, TO CLARIFY THE PROC Council '"`�`°"� a, a
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CITY OF SAN LUIS O B 1 S P 0
FROM: John Mandeville,Community Development Direc
Prepared By: Peter Brown,Housing Programs Manager�,
SUBJECT: TEXT AMENDMENTS TO MUNCIPAL CODE SECTION 17.91:
INCLUSIONARY HOUSING ORDINANCE, TO CLARIFY THE
PROCESS FOR SELECTING AFFORDABLE HOUSING
RECIPIENTS; AND NEGATIVE DECLARATION (TA,ER 79-07).
CAO RECOMMENDATION
As recommended by the Planning Commission:
1) Introduce an ordinance approving an amendment to Municipal Code Section 17.91 to
clarify the process for selecting affordable housing recipients; and
2) Approve a Negative Declaration of environmental effects for the project (ER 79-07).
DISCUSSION
Recently, in conjunction with several developments containing affordable housing units, there
have been challenges in either finding qualified residents or in carrying out the City's intended
purpose to make these required deed-restricted affordable dwelling units available to the general
public. Staff came to the understanding that part of the issue is a lack of clarity in the City's
ordinance, and part is due to the fact that the mechanics of the program do not adequately address
the situation where individual deed-restricted affordable units are being re-sold or rented. Staff
presented a recommendation to the Planning Commission to amend Section 17.91 of the
Municipal Code to clarify the process by which deed-restricted units are offered to the public and
included a recommendation to work with the Housing Authority of San Luis Obispo (HASLO) to
establish a list of eligible residents to address the difficulty in finding qualified residents for
individual re-sale or rental of deed-restricted units. By a 6:0 vote, the Planning Commission
recommended approval of the revisions proposed by staff.
The proposed revisions to the Inclusionary Housing Ordinance (Attachment 3) are based on the
principle that the City's provisions for affordable housing should allow any interested eligible
residents or workers the opportunity to qualify for deed-restricted, affordable rental or ownership
housing. There are two objectives of these ordinance revisions:
1. To require a process that is publicly accessible and fair for finding qualified residents for
developments that offer multiple deed-restricted affordable units for sale or rental; and
2. To develop a City process that is publicly accessible and fair for establishing a list of
qualified residents for use by owners offering single deed-restricted affordable units for sale,
resale, or rental.
2-�
Council Agenda Report
TA,ER 79-07
Page 2
Due to the current lack of specific ordinance or policy guidelines, there has been at least one
known instance where only individuals with direct ties to a developer were offered the chance to
occupy affordable housing units. Staff interceded in this process, and such occupancy was not
completed. However, because the developers have been charged with finding qualified families
for the units, others may have occurred (although there has been no way to track resident
selection details). New language in the Inclusionary Housing Ordinance (Chapter 17.91 of the
Municipal Code) is proposed to specify the details for a more open and accessible process. The
proposed language shown in Attachment 3, Exhibit A of the draft ordinance is italicized and
underlined. Chapter 17.91 is provided in its entirety for context and background information.
In cases where there are multiple affordable dwelling units for sale in a development, the City has
worked with the Housing Authority and the developer to hold a random lottery drawing of
interested purchasers. The City and developer advertise the upcoming lottery through multiple
media, web and print resources; potential residents fill out preliminary applications and are
randomly drawn into a rank order. From there, thorough third party income and asset verification
takes place through the Housing Authority and those meeting the City's requirements are offered
a chance to purchase an affordable home.
In other cases, such as small for-sale projects of one or two units, resale of existing units, or
selection of residents for deed-restricted rentals, the developer or owner is charged with finding
qualified parties to purchase or rent the units. In several instances during the last year, property
owners attempting to re-sell affordable units or find eligible tenants for affordable rentals have
expressed frustration in finding qualified residents. Many interested residents are either beyond
the income threshold or do not meet the debt-to-income, asset, or quality credit rating
requirements. This has the effect of delaying re-sales or causing rental properties to remain
unoccupied for periods of time.
In the absence of a lottery or other list selection process, there are concerns that charging the
developer/owner with finding qualified residents is not following an open, public process
whereby any member of the interested public has an equal chance of participating in, and
enjoying the benefits of, the City's Affordable Housing Programs. Leaving this task to the
developer to find qualified residents can result in a developer limiting its outreach to
acquaintances or employees, and the general public at large is not given the opportunity to
participate.
Minor amendments to sections 17.91.100 17.9 1.110 and 17.91.130 are proposed to alleviate the
possibility, or even the perception, that the City is not implementing an affordable housing
program which benefits all citizens. Inserting language that specifies what type of process a
developer or owner needs to go through in selecting affordable housing residents will ensure a
fair, open procedure is used when making required affordable dwellings available. Interested
employees of a developer, or any other members of the public who contact a developer and are
interested in affordable housing opportunities, can then participate fairly in a lottery or be
referred to the City or Housing Authority to be included on a list of interested parties for future
units as they become available as described below.
,Z -2
Council Agenda Report -
TA, ER 79-07
Page 3
Where individual affordable units come up for resale or where developments have only one or
two required affordable units available, it may not be feasible to advertise and hold a lottery. To
address these situations, the City and the Housing Authority propose to create and maintain a list
of eligible parties on an annual basis. A ca]] for interested parties to get on these lists will be
gathered/updated annually, and applications for four categories will be collected:
• small rentals (studios/1 bedrooms)
• large rentals (2 or more bedrooms)
• small for sale units (studios/1 bedrooms)
• large for-sale units (2 or more bedrooms)
A benefit of developing a list of interested, qualified residents will be that owners of deed-
restricted units will have greater resources to find affordable housing occupants in a more timely
manner. The approach has the added benefit of providing a tool to gauge demand for different
types of units. This information can be monitored over time to understand if changes in the
Affordable Housing Program are needed to better meet the demands of the community.
Environmental Review
Amendments of the Municipal Code pertaining to land use regulations or similar actions are not
exempt from the California Environmental Quality Act and therefore are subject to an
environmental determination. Staff has prepared a draft initial study for the proposed
amendment and has found that the amendment will not create any significant environmental
impacts. A Negative Declaration has been proposed, a copy of which has been attached for
review and approval.
Future Inclusionary Housing Ordinance Amendments
The current amendment is a minor one geared to address the specific issue of fair, open, public
selection of residents for the City's Affordable Housing Programs. In the coming fiscal year, staff
will be doing a thorough assessment of the City's Inclusionary Housing Program, policies and
procedures. Items to be addressed include: updating of the ordinance to better comply with State
Density Bonus Law; updates to reflect how in-lieu fees are collected under the new international
building codes; an assessment of the Inclusionary Program effectiveness which may lead to
proposed changes in percentage or income-category requirements; and the effectiveness of the
"Affordability by Design" Table 2A. The City Council is encouraged to provide staff direction on
items to be included in the forthcoming update.
CONCURRENCES
The City Attorney and Finance/IT Departments concur with the amendments.
FISCAL IMPACT
There will be a minor cost to the City in terms staff time to assist in administration of this effort.
2-s
Council Agenda Report - J
TA, ER 79-07
Page 4
ALTERNATIVES
1. The Council may introduce revisions to the Inclusionary Housing Ordinance with specific
modifications other than those proposed in the staff report.
2. The Council may deny the proposed revisions to the Inclusionary Housing Ordinance,
based on findings of inconsistency with the General Plan as further specified by the City
Council.
3. The Council may continue review of the proposal, if more information is needed. Specific
direction should be given to staff.
ATTACHMENTS
1. Planning Commission Staff report, minutes, resolution (environmental document and
amended language not included) from June 13, 2007.
2. Negative Declaration of Environmental Impact.
3. Draft Ordinance XXXX-07 Amending Chapter 17 of the Municipal Code and Exhibit A,
Municipal Code Chapter 17.91 with proposed language amendments.
G:\CD-PLAN\PBrown\City Council Staff Reports\CC staff report Chap 17 91 Atnendd_Aug 07.doc
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CITY OF SAN LUIS OBISPO , :;i�:
PLANNING COMMISSION AGENDA REPORT ITEM# 1
BY: Peter Brown, Housing Programs Manager(781-7523 MEETING DATE: June 13, 2007
FROM: Kim Murry, Deputy Director of Long Range Planning, Community Development M
FILE NUMBER: GPI 79-07 and ER 79-07 Revisions to Chapter 17.91: Inclusionary Housing
Ordinance
PROJECT ADDRESS: City-Wide
SUBJECT: Review of amendments to Municipal Code Section 17.91: Inclusionary Housing
Ordinance to clarify the process to be used in selecting affordable housing recipients.
SUMMARY RECOMMENDATION
Adopt the attached Planning Commission resolution which recommends that the City Council
approve a resolution adopting a Negative Declaration (ER 79-07) and approve revisions to the
Zoning Regulations in Chapter 17.91.
BACKGROUND
Situation
Periodic review of City documents is necessary to ensure that regulations are clear, consistent,
and provide the least impediment to implementing the goals and policies expressed by the
General Plan and established by the City Council. Based on recent experience worldng with
housing developments that include affordable dwellings, and discussions with the Housing
Authority of San Luis Obispo (HASLO), affordable housing providers, and potential residents of
deed-restricted low-income units, staff determined that a consistent process for selecting
affordable housing recipients is warranted. A minor amendment to Chapter 17.91 is
recommended to specify that a fair and open public process is followed when selecting housing
recipients for affordable housing units. By providing additional language in sections 17.91.100,
17.91.110 and 17.91.130, all participants can be assured that the resident selection process for
affordable housing is conducted in a way that enables any interested party to participate. The
updated document is being brought before the Planning Commission to provide Commissioners
with an opportunity to evaluate the proposed amendment and make a recommendation to the City
Council. A more comprehensive evaluation of the City of San Luis Obispo's Affordable
Housing Incentives (Chapter 17.90) and Inclusionary Housing Ordinance (Chapter 17.91) is
scheduled for the upcoming fiscal year. Any recommended changes that arise out of that process
will be brought to the.Planning Commission for review and recommendation. At this time, there
is a more pressing need to address the resident selection process in order to be prepared for
upcoming inclusionary development projects and the associated affordable units that will become
available.
TA 226-05 (Citywide)
Pae 2 Attachment 1
i.
Data Summary _
Address: City-Wide
Applicant: The City of San Luis Obispo
Existing Zoning: All zones
General Plan: All designations
Environmental Status: A Negative Declaration is being recommended by the Deputy Director
on June 13, 2007 (ER 79-07). Final action on the initial study will be taken by the City Council.
EVALUATION
The proposed revisions to the Inclusionary Housing Ordinance (Attachment 2) are based on the
principle that the City's provisions for affordable housing should allow any interested City
residents or workers the opportunity to qualify for deed-restricted, affordable rental or ownership
housing. Due to the current lack of specificity, there are instances where only individuals with
direct ties to a developer are offered the chance to occupy affordable housing units. Proposed
new language in the Inclusionary Housing Ordinance (Attachment 2)is italicized and underlined.
The entire ordinance is provided for context and background information. For the purpose of this
report, Commissioners should focus on the proposed amendments. Since a comprehensive
review of the ordinance is forthcoming, comments on other aspects of the ordinance should be
made at the end of the hearing and can be taken into account for future ordinance review.
DISCUSSION
The City's current policy does not specify how applicants for the City's affordable housing
projects are selected. In some cases, usually where there are multiple affordable dwelling units
for sale in a development, the City has worked with the Housing Authority and the developer to
hold a random lottery drawing of interested purchasers. The City and developer advertise the
upcoming lottery through multiple media, web and print resources; potential residents fill out
preliminary applications and are randomly drawn into a rank order. From there, thorough third
party income and asset verification takes place and those meeting the City's requirements are
offered a chance to purchase an affordable home. In other cases, such as small for-sale projects of
one or two units, resale of existing units, or selection of residents for deed-restricted rentals, the
developer is charged with finding qualified parties to purchase or rent the units. If a household
meets verification standards, the purchaser or renter enters into affordability agreements with the
City to buy/rent the affordable unit.
In the latter example, there are concerns that charging the developer/owner with finding qualified
residents is not following an open, public process whereby any member of the interested public
has an equal chance of participating in, and enjoying the benefits of, the City's Affordable
Housing Programs. Leaving this task to the developer to find qualified residents can result in a
developer limiting their outreach to friends or employees, and the general public at large is not
given the opportunity to participate.
,Z— �e
71
TA 226-05 (Citywide) -1 - r Attachment 1
Page 3
Recently, City staff was approached by a developer who expressed interest in converting an
affordable rental unit to a for-sale unit to sell to an employee without going through a public
lottery process. This situation highlights the need to clarify the public intent of the Affordable
Housing program as it is implemented in the zoning code. While providing affordable housing
for workers in the area is a primary goal of the program, allowing developers to use the City's
Affordable Housing Program as a business incentive, an employee compensation/retention
program or for their own benefit at the exclusion of the larger populous does not meet the fair,
public spirit of providing affordable housing to citizens of the community. Minor amendments to
sections 17.91.100 17.91.110 and 17.91.130 is proposed to alleviate the problem, or even the
perception, that the City is not implementing an affordable housing program which benefits all
citizens. Inserting language that specifies what type of process a developer or owner needs to go
through in selecting affordable housing residents will ensure a fair, open procedure is used when
making required affordable dwellings available. Interested employees of a developer, or any
other members of the public who contact a developer and are interested in affordable housing
opportunities, can then be referred to the City or Housing Authority to be included on a list of
interested parties.
Where individual affordable units come up for resale or where developments have only one or
two required affordable units available, it may not be feasible to advertise and hold a lottery. To
address these situations, the City and the Housing Authority have the potential to create and
maintain a list of eligible parties on an annual basis. A call for interested parties to get on these
lists can be gathered/updated annually, and applications for four categories can be collected:
• small rentals (studios/l bedrooms)
• large rentals (2 or more bedrooms)
• small units—owner occupied(studios/1 bedrooms)
• large units—owner occupied(2 or more bedrooms)
In this way; the City's Housing Program Manager can also have a tool for gauging demand of
different types of units. This information can then be used to craft changes in the Affordable
Housing Program to better meet the demands of the community.
FUTURE INCLUSIONARY HOUSING ORDINANCE AMENDMENTS
The current amendment is a minor one geared at addressing the specific issue of fair, open,
public selection of residents for the City's Affordable Housing Programs. In the coming fiscal
year, staff will be doing a thorough assessment of the City's Inclusionary Housing Program,
policies and procedures. Items to be addressed include: updating of the ordinance to better
comply with State Density Bonus Law; updates to reflect how in-lieu fees are collected under the
new international building codes; an assessment of the Inclusionary Program effectiveness which
may lead to changes in percentage and income-category requirements; and the effectiveness of
the "Affordability by Design" Table 2A. The Planning Commission is encouraged to provide
staff direction on items to be included in the forthcoming update.
2-�
TA 226-05 (Citywide) Attachment 1 r..
Page 4
c
CONCURRANCES
The City Attorney and Finance Departments concur with the amendments.
FISCAL IMPACT
There will be a minor cost to the City in terms staff time to assist in administration of this effort.
ALTERNATIVES
1. The Commission may approve a resolution recommending approval of the revisions to
the Inclusionary Housing Ordinance with specific modifications.
2. The Commission may approve a resolution recommending that the City Council deny the
proposed revisions to the Inclusionary Housing Ordinance, based on findings of
inconsistency with the General Plan as further specified by the Planning Commission.
3. The Commission may continue review of the proposal, if more information is needed.
Specific direction should be given to staff.
ATTACHMENTS
1. Negative Declaration of Environmental Impact
2. Municipal Code Chapter 17.91 with proposed language amendments.
Environmental Review
Amendments of the Municipal Code pertaining to land use regulations or similar actions are not
exempt from the California Environmental Quality Act and therefore are subject to an
environmental determination. Staff has prepared a draft initial study for the proposed
amendment and has found that the amendment will not create any significant environmental
impacts. A Negative Declaration has been proposed„ a copy of which has been attached for
review.
ZIP
SAN LUIS OBISPO Attachment 1
PLANNING COMMISSION MINUTES
June 13, 2007
ROLL CALL:
Present: Commissioners Dan Carpenter, Amanda Brodie, Diana Gould-Wells,
Carlyn Christianson, Andrea Miller, Charles Stevenson
Absent: Commr. John Ashbaugh
Staff: Deputy Director Doug Davidson, Senior Planner Jeff Hook, Housing
Programs Manager Peter Brown, Associate Planner Phil Dunsmore,
Assistant City Attorney Christine Dietrick, and Recording Secretary Jill
Francis
ACCEPTANCE OF AGENDA: Commissioners or staff may modify the order of items.
The order of the agenda was accepted as written.
MINUTES: Minutes of May 23, 2007. Approve or amend.
The minutes of May 23, 2007 were approved as amended.
PUBLIC COMMENT:
There were no comments made from the public.
PUBLIC HEARINGS:
1. Citywide. TA and ER 79-07; Amendments to Municipal Code Chapter 17.90
(zoning regulations) to clarify the resident selection process for affordable housing
projects and environmental review; City of San Luis Obispo, applicant. ( Peter
Brown)
Housing Programs Manager Peter Brown presented the staff report explaining the
background and need for clarification on how candidates are selected for affordable
housing projects, and recommending the Commission adopt the resolution which
recommends that the City Council approve the revisions to the Zoning Regulations in
Chapter 17.91, and approve a Negative Declaration of environmental impact.
PUBLIC COMMENTS:
There were no comments made from the public.
COMMISSION COMMENTS:
Commissioners had one question regarding the resident selection process and expressed
a desire to not allow employee selection even when going above and beyond the
2 - ?
Planning Commission Minutes- ' -
June 13, 2007 ` . Attachment t
Page 2
inclusionary housing requirement.
Commr. Miller questioned the possibility or need of employee incentives.
On motion by Commr. Carpenter to adopt the resolution recommending that the City
Council approve a Negative Declaration and revisions to the Zoning Regulations in
Chapter 17.91. Seconded by Commr. Miller.
AYES: Commrs. Carpenter, Brodie, Gould-Wells, Christianson, Miller and Stevenson
NOES: None
RECUSED: None
ABSENT: Commr. Ashbaugh
The motion carried on a 6 : 0 vote.
2. Citywide. TA 75-07; Amendments to the City's Subdivision Regulations i uding
w standards for airspace subdivisions; City of San Luis Obispo, appl' ant. (Phil
Du more)
Associate Pla er Phil Dunsmore presented the staff report giving n explanation of
airspace subdivis s and other minor text clarifications propos to the Subdivision
Regulations, and re mending the Commission adopt a resolu ' n recommending the
City Council approve the evisions to the Subdivision Regulatio s.
PUBLIC COMMENTS:
There were no comments made fro a public.
COMMISSION COMMENTS:
The Commission had several questions re rdin he airspace subdivision process and
what has been done in other communities
Commr. Stevenson had questions r garding the minimu amount of backyard space
required for common interest su divisions and asked who ould be responsible for
building maintenance within th airspace subdivision when th a is no homeowners
association. He complimente staff on bringing forth the project.
Commr. Christianson as d if there would be a checklist on items to over such as
insurance, retrofitting, umbing, etc. for airspace maps. She also qu tioned who
would be responsibl for preparing the tentative map and asked if a me er of the
public could prepay it as long as it had all the required information.
Commr. Miller sked if there are any other cities amending their regulations, and so,
are they ha 'ng any issues. It was noted that revisions are being considered in Sa to
Monica, L s Angeles and Sacramento, with no issues to report.
2,-14
r �
n
Attachment i
RESOLUTION NO. 5482 -07
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION
RECOMMENDING THAT THE CITY COUNCIL APPROVE AMENDMENTS TO
CHAPTER 17.91 OF THE INCLUSIONARY HOUSING ORDINANCE TO
CLARIFY THE PROCESS TO BE USED IN SELECTING RESIDENTS FOR
REQUIRED AFFORDABLE HOUSING UNITS AND ALSO TAKE ACTION TO
APPROVE THE NEGATIVE DECLARATION. GPI 79-07
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, on June 13, 2007 to consider amendments to Chapter 17.91 of the City's
Inclusionary Housing Ordinance; and
WHEREAS, the Planning Commission of the City of San Luis Obispo has
considered public testimony, interested parties, and evaluation and recommendations by
staff; and
WHEREAS, staff has prepared an Environmental Initial Study in accordance with
CEQA, and has determined that the proposed amendments will not create significant
impacts to the environment;
BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as
follows:
SECTION 1. Findings.
1. The proposed amendments are necessary to clarify the selection process for
residents for affordable rental and ownership units.
2. The proposed amendments will allow for more effective implementation of the
City's Affordable Housing Programs by making resident selection a fair, open and
public process.
3. The proposed amendments will not significantly alter the character of the City or
cause significant health, safety or welfare concerns, since the amendments are
consistent with the General Plan and will augment the implementation of General
Plan policies.
SECTION 2. Action. The Planning Commission does hereby recommend that
the City Council Approve the Negative Declaration of environmental impact (ER 79-07)
and adopt the proposed text amendments, included as Exhibit A.
2 r//
Resolution No. 5482-07 Attachment 1
Page 2
On motion by Commr. Carpenter, seconded by Commr. Miller, and on the following roll
call vote:
AYES: Brodie, Stevenson, Christianson,Miller, Gould-Wells, Carpenter
NOES:
REFRAIN:.
ABSENT: Ashbaugh
The foregoing resolution was passed and adopted this 13`h day of June, 2007.
Doug Davidson, Secretary
Planning Commission
Attached:
Exhibit Ac Chapter 17.91 Text Changes
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i � (I cl"llllVOf san lugs OBISPO I Public Works Department - 919 Palm Street • San Luis Obispo, CA 93401-3218
INITIAL STUDY �" t
ENVIRONMENTAL CHECKLIST FORM.
For ER#79-07 Attachment 2
1. Project Title: Inclusionary Housing Ordinance Text Amendment 79-07 — -` '" ' `'t'''"
2. Lead Agency Name and Address:
City of San Luis Obispo 919 Palm Street, San Luis Obispo, CA 93401
3. Contact Person and Phone Number:
Peter Brown, Housing Programs Manager(805) 781-7523
4. Project Location:
Citywide, City of San Luis Obispo
5. Project Sponsor's Name and Address:
City of San Luis Obispo 919 Palm Street, San Luis Obispo, CA 93401
6. General Plan Designation:
Not applicable (Citywide)
7. Zoning:
Not applicable (Citywide)
8. Description of the Project:
Municipal code text amendments to the administrative procedures in the Zoning Regulations to
specify the method by which required affordable dwellings units are to be offered for occupancy.
9. Surrounding Land Uses and Settings:
Not applicable (Citywide)
10. Project Entitlements Requested:
Project involves text amendments to the Municipal Code, Section 17.91: Inclusionary Housing
11. Other public agencies whose approval is required:
N/A
The City of San Luis Obispo is committed to include the disabled in all of its services,programs and activities.
Telecommunications Device for the Deaf(805) 781-7410.
n Attachment 2 F
ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED:
The environmental factors checked below would be potentially affected by this project, involving at least
one impact that is a"Potentially Significant Impact"as indicated by the checklist on the following pages.
Aesthetics Geology/Soils Public Services
Agricultural Resources Hazards&Hazardous Recreation
Materials
Air Quality Hydrology/Water Quality Transportation&Traffic
Biological Resources Land Use and Planning Utilities and Service
Systems
Cultural Resources Noise Mandatory Findings of
Significance
Energy and Mineral Population and Housing
Resources
FISH AND GAME FEES
There is no evidence before the Department that the project will have any potential adverse effects on fish
and wildlife resources or the habitat upon which the wildlife depends. As such, the project qualifies for a
de minimis waiver with regards to the filing of Fish and Game Fees.
The project has potential to impact fish and wildlife resources and shall be subject to the payment of Fish
and Game fees pursuant to Section 711.4 of the California Fish and Game Code. This initial study has been
circulated to the California Department of Fish and Game for review and comment.
STATE CLEARINGHOUSE
This environmental document must be submitted to the State Clearinghouse for review by one or more
State agencies (e.g. Cal Trans, California Department of Fish and Game, Department of Housing and
Community Development). The public review period shall not be less than 30 days (CEQA Guidelines
15073 a .
F k,
DETERMINATION: Attachment 2
On the basis of this initial evaluation:
I find that the proposed project COULD NOT have a significant effect on the environment, and --X--
a NEGATIVE DECLARATION will be prepared. I
I find that although the proposed project could have a significant effect on the environment,
there will not be a significant effect in this case because revisions in the project have been
made, or the mitigation measures described on an attached sheet(s) have been added and
agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be
prepared.
I find that the proposed project MAY have a significant effect on the environment, and an
ENVIRONMENTAL IMPACT REPORT is required.
I find that the proposed project MAY have a "potentially significant" impact(s) or "potentially
significant unless mitigated" impact(s) on the environment, but at least one effect (1) has been
adequately analyzed in an earlier document pursuant to applicable legal standards, and (2) has
been addressed by mitigation measures based on the earlier analysis as described on attached
sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the
effects that remain to be addressed
I find that although the proposed project could have a significant effect on the environment,
because all potentially significant effects (1) have been analyzed adequately in an earlier EIR
or NEGATIVE DECLARATION pursuant to applicable standards, and (2) have been avoided
or mitigated pursuant to that earlier EIR of NEGATIVE DECLARATION, including revisions
or mitigation measures that are imposed upon the proposed project, nothing further is required.
Signature Date
For:John Mandeville,
Printed Name Community Development Director
Attachment 2
EVALUATION OF ENVIRONMENTAL IMPACTS:
1. A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the
information sources a lead agency cites in the analysis in each section. A "No Impact" answer is adequately
supported if the referenced information sources show that the impact simply does not apply to projects like the one
involved (e.g. the project falls outside a fault rupture zone). A"No Impact"answer should be explained where it is
based on project-specific factors as well as general standards (e:g. the project will not expose sensitive receptors to
pollutants,based on a project-specific screening analysis).
2. All answers must take account of the whole action involved, including off-site as well as on-site,cumulative as well
as project-level, indirect as well as direct, and construction as well as operational impacts. The explanation of each
issue should identify the significance criteria or threshold,if any,used to evaluate each question.
3. "Potentially Significant Impact'is appropriate if there is substantial evidence that an effect is significant. If there are
one or more"Potentially Significant Impact" entries when the determination is made,an EIR is required.
4. "Potentially Significant Unless Mitigation Incorporated" applies where the incorporation of mitigation measures has
reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must
describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level
(mitigation measures from Section 17,"Earlier Analysis," may be cross-referenced).
5. Earlier analysis may be used where,pursuant to the tiering,program EIR,or other CEQA process,an effect has been
adequately analyzed in an earlier EIR or negative declaration. Section 15063 (c) (3) (D) of the California Code of
Regulations. Earlier analyses are discussed in Section 17 at the end of the checklist.
6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential
impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should,
where appropriate,include a reference to the page or pages where the statement is substantiated.
7. Supporting Information Sources: A source list should be attached,and other sources used or individuals contacted
should be cited in the discussion. In this case,a brief discussion should identify the following:
a) Earlier Analysis Used. Identify and state where they are available for review.
b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and
adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such
effects were addressed by mitigation measures based on earlier analysis.
C) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated,"
describe the mitigation measures which were incorporated or refined from the earlier document and the extent
to which they address site-specific conditions for the project.
z ��
Issues, Discussion and Support Rynformation Sources Sources Pot MMW Potentially Less Then No
Significant Significant S;
Impact
Issues Unless Impact
ER 79-07 r
Citywide
Incorporated
Attachment 2
1.AESTHETICS. Would the project:
a) Have a substantial adverse effect on a scenic vista? t_n
..........
b) Substantially damage scenic resources,including,but not limited'
X--
to,trees,rock outcroppings,open space,and historic buildings
within a local or state scenic.highway?
c) Substantially degrade the existing visual character or quality of _X_
the site and its surroundings?
y y gh �
d) Create a new source of substantial light or glare which would
adverseleffect daor nittime views in thearea?,
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to aesthetics are anticipated.
2.AGRICULTURE RESOURCES. Would the project:
a) Convert Prime Farmland,Unique Farmland,or Farmland of __X_
Statewide Importance(Farmland),as shown on the maps
pursuant to the Farmland Mapping and Monitoring Program of
the California Resources Agency,to non-agricultural use?
b) Conflict with existing zoning for agricultural use or a
Williamson Act contract?
their location or nature,could result in conversion of Farmland
c) Involve other changes in the existing environment which,due to
to non-agricultural use?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes. No impacts to agriculture resources are anticipated.
3. AIR QUALITY. Would the prqiect:
a) Violate any air quality standard or contribute substantially to an __X_
existing or projected.Air quality violation?
b) Conflict with or obstruct implementation of the applicable air
quality plan?
c) Expose sensitive receptors-to substantial pollutant
X--
concentrations?
d) Create objectionable odors affecting a substantial number of
people?
e) Result in a cumulatively considerable net increase of any criteria
X--
pollutant for which the project region is non-attainment under an
applicable federal orstate ambient air quality standard
(including releasing emissions which exceed qualitative
thresholds for ozone precursors)? L
Evaluation
The project involves amendment to administrative procedures in theZorfing Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to air quality are anticipated.
4. .BIOLOGICAL RESOURCES. Would the project:
Issues, Discussion and Support) formation Sources Sources PotAMW Potentially Less Than No
Significant Significant Significant Impact
ER 79-07 Issues Unless Impact
Mitigation
Citywide Incorporated
a) Have a substantial adverse effect,either directly or indirectly or --X--
through habitat modifications,on any species identified as a aCh me t Q
candidate,sensitive,or special status species in local or regional
plans,policies,or regulations,or by the California Department
of Fish and Game or U.S.Fish and Wildlife Service?
b) Have a substantial adverse effect,on any riparian habitat or X--
other sensitive natural community identified in local or regional
plans,policies,or regulations,or by the California Department
of Fish and Game or U.S.Fish and Wildlife Service?
c) Conflict with any local policies or ordinances protecting _X_
biological resources,such as a tree preservation policy or
ordinance(e.g.Heritage Trees)?
d) Interfere substantially with the movement of any native resident __X__
or migratory fish or wildlife species or with established native
resident or migratory wildlife corridors,or impede the use of
wildlife nursery sites?
e) Conflict with the provisions of an adopted habitat Conservation _X_
Plan,Natural Community Conservation Plan,or other approved
local,regional,or state habitat conservation plan?
f) Have a substantial adverse effect on Federally protected __X__
wetlands as defined in Section 404 of the Clean Water Act
(including,but not limited to,marshes,vernal pools,etc.)
through direct removal,filling,hydrological interruption,or
other means?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to biological resources are anticipated.
5.CULTURAL RESOURCES. Would theproject:
a) Cause a substantial adverse change in the significance of a —X--
historic resource?(See CEQA Guidelines 15064.5)
b) Cause a substantial adverse change in the significance of an 11 —X--
archaeological resource?(See CEQA Guidelines 15064.5)
c) Directly or indirectly destroy a unique paleontological resource -X--
or site or unique geologic feature?
d) Disturb any human remains,including those interred outside of 11 __X__
formal cemeteries?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to cultural resources are anticipated
6. ENERGY AND MINERAL RESOURCES. Would theproject:
a) Conflict with adopted energy conservation plans?
b) Use non-renewable resources in a wasteful and inefficient __X_
manner.?
c) Result in the loss of availability of a known mineral resource _X_
that would be of value to the region and the residents of the
State?
Evaluation
2��'
Issues, Discussion and SupporMynformation Sources Sources PotMEW Potentially Less Than No
Significant Significant Significant Impact
ER 79-07 Issues Unless Impact
Citywide Mitigation
Incorporated
The project involves amendment to administrative procedures in the Zoning Regulations tez[io ipecify:the method by'which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result ofythe
proposed procedural changes..No impacts to mineral resources are anticipated. AttaChment 2 ;K
7. GEOLOGY AND SOILS. Would theproject:
a) Expose people or structures to potential substantial adverse _X__
effects,including risk of loss,injury or death'involving:
1. Rupture of a known earthquake fault,as delineated in the
most recent recent Alquist-Priolo Earthquake Fault Zoning Map
issued by the State Geologist for the area,or based on other
substantial evidence of a known fault?
II. Strong seismic ground shaking? -X--
III. Seismic-related ground failure,including liquefaction?IV. Landslides Landslides or mudflows? _X_
b) Result in substantial soil erosion or loss of topsoil? __X__
c) Be located on a geologic unit or soil that'is unstable,.or that _X_
would become unstable as a result of the project,and potentially
result in on or off site landslides,lateral spread ing,.subsidence,
liquefaction,or collapse?
d) Be located on expansive soil,as defined in Table 18-1-B of the _X_
Uniform Building Code(1994),creating s tbstantial risks to life
or Pro ?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to geology and soils are anticipated.
8. HAZARDS AND HAZARDOUS MATERIALS. Would the pro"ect:
a) Create a significant hazard to the public or the environment __X__
through the routine use,transport or disposal of hazardous
materials?
b) Create a significant hazard to the public or the environment _X_
through reasonably foreseeable upset and accident conditions
involving the release of hazardous materials into the
environment?
c) Emit hazardous emissions or handle hazardous or acutely X--
hazardous materials,.substances,or waste within one-quarter
mile of an existing or proposed school?
d) Expose people or structures to existing sources of hazardous _X__
emissions or hazardous or acutely hazardous materials,
substances,or waste?
e) Be located on a site which is included on a list of hazardous -){--
materials sites compiled pursuant to Government Code Section
65962.5 and;as a result;it would create acsignificant hazard to
the public or the environment?
f) For a project located within an airport.land use plan..or within __X__
two miles of a public airport,would the project.result in a safety
hazard for the people residing or working in the project area?
g) Impair implementation of,or physically interfere with,the __X__
adopted emergency response plan or emergency evacuation
—plan?
Issues, Discussion and SupportilWhformation Sources Sources Pot Potentially Less Than No
Significant Significant Significant Impact
ER 79-07 Issues Unless Impact
Mitigation
Citywide Incorporated
h) Expose people or structures to a significant risk of lose,injury,
or death,death,involving wildland fires,including where wildlands are chment 2
adjacent to urbanized areas or where residents are intermixed
with wildlands?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to hazards and hazardous materials are anticipated.
9. HYDROLOGY AND WATER QUALITY. Would the ro'ect:
a) Violate any water quality standards or waste discharge
requirements?
b)
b) Substantially deplete groundwater supplies or interfere __X_
substantially with groundwater recharge such that there would be
a net deficit in aquifer volume or a lowering of the local
groundwater table level(e.g.The production rate of pre-existing
nearby wells would drop to a level which would not support
existing land uses for which permits have been granted)?
c) Create or contribute runoff water which would exceed the --X--
capacity of existing or planned storm water drainage systems or
provide additional sources of runoff into surface waters
(including,but not limited to,wetlands,riparian areas,ponds,
springs,creeks,streams,rivers, lakes,estuaries,tidal areas,bays,
ocean,etc.)?
d) Substantially alter the existing drainage pattern of the site or _X_
area in a manner which would result in substantial erosion or
siltation onsite or offsite?
e) Substantially alter the existing drainage pattern of the site or
area in in a manner which would result in substantial flooding
onsite or offsite?
f) Place housing within a 100-year flood hazard area as mapped on —X--
a Federal Flood Hazard Boundary or Flood Insurance Rate Map
or other flood hazard delineation map?
g) Place within a 100-year flood hazard area structures which __X__
would impede or redirect flood flows?
h) Will the project introduce typical storm water pollutants into __X__
ground or surface waters?
i) Will the project alter ground water or surface water quality,
temperature,dissolved oxygen,or turbidity?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to hydrology and water quality materials are anticipated.
10. LAND USE AND PLANNING. Would the ro'ect:
a) Conflict with applicable land use plan, policy, or regulation of —X—
an agency with jurisdiction over the project adopted for the
purpose of avoiding or mitigating an environmental effect?
b) Physically divide an established community? __X_
C) Conflict with any applicable habitat conservation plan or natural
community conservation conservationplans?
2 -tea
Issues, Discussion and Supporta formation Sources Sources Pote'NMW Potentially Less Than No
Significant Significant Significant Impact
ER 79-07 Issues Unless Impact
Mitigation
Citywide Incorporated
8Cme
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by Whichr ,
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes. No impacts to General Plan Policies or other city policies that are adopted for avoiding an
environmental impact are anticipated.
11.NOISE. Would the project result in:
a) Exposure of people to or generation of"unacceptable"noise —X--
levels as defined by the San Luis Obispo General Plan Noise
Element,or general noise levels in excess of standards
established in the Noise Ordinance?
b) A substantial temporary,periodic,or permanent increase in --X--
ambient noise levels in the project vicinity above levels existing
without the project?
c) Exposure of persons to or generation of excessive groundborne —X—
vibration or groundborne noise levels?
d) For a project located within an airport land use plan,or within --X--
two miles of a public airport or public use airport,would the
project expose people residing or working in the project area to
excessive noise levels?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.Amendments to the municipal code of this nature will have no relation to noise levels.
12. POPULATION AND HOUSING. Would the roject:
a) Induce substantial population growth in an area, either directly --X--
(for example by proposing new homes or businesses) or
indirectly (for example, through extension of roads or other
infrastructure)?
b) Displace substantial numbers of existing housing or people necessitatingthethe construction of replacement housing
elsewhere?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to population and housing are anticipated.
13.PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with the
provision,or need,of new or physically altered government facilities,the construction of which could cause
significant environmental impacts,in order to maintain acceptable service ratios,response times,or other
performance objectives for any of the public services:
a) Fire protection? -b) Police Police protection?
c) Schools?Schools? —X—
d) Parks? --X--
e) Roads and other transportation infrastructure? --X--
f) Other public facilities? L --X--
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
Issues, Discussion and Supporta formation Sources Sources PoAMW Potentially Less Than No
Significant Significant Significant Impact
ER 79-07 Issues Unless Impact
Mitigation
Citywide Incorporated
proposed procedural changes.No impacts to public services are anticipated. attachment 2
14.RECREATION. Would theproject:
a) Increase the use of existing neighborhood or regional parks or
other recreational facilities such that substantial physical
deterioration of the facility would occur or be accelerated?
b) Include recreational facilities or require the construction or --X--
expansion of recreational facilities,which might have an adverse
physical effect on the environment?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by
which required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of
the proposed procedural changes.No impacts to recreation facilities are anticipated.
15. TRANSPORTATIONfFRAFFIC. Would theproject:
a) Cause an increase in traffic which is substantial in relation to the —X--
existing traffic load and capacity of the street system?
b) Exceed,either individually or cumulatively,a level of service --X--
standard established by the county congestion management
agency for designated roads and highways?
c) Substantially increase hazards due to design features(e.g.sharp --X--
curves or dangerous intersections)or incompatible uses(e.g.
farm equipment)?
d) Result in inadequate emergency access? --X--
e) Result in inadequate parking capacity onsite or offsite? —X—
f) Conflict with adopted policies supporting alternative transportation(e.g.(e.g.bus turnouts,bicycle racks)?
g) Conflict with the with San Luis Obispo County Airport Land --X--
Use Plan resulting in substantial safety risks from hazards,noise,
or a change in air trafficpatterns?
Evaluation
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to transportation facilities or area traffic are anticipated.
16.UTILITIES AND SERVICE SYSTEMS. Would the ro'ect:
a) Exceed wastewater treatment requirements of the applicable --X—
Regional Water Quality Control Board?
b) Require or result in the construction or expansion of new water
treatment,waste waste water treatment,water quality control,or storm
drainage facilities,the construction of which could cause
significant environmental effects?
c) Have sufficient water supplies available to serve the project —X--
from existing entitlements and resources,or are new and
expanded water resources needed?
d) Result in a determination by the wastewater treatment provider -X—
which serves or may serve the project that it has adequate
capacity to serve the project's projected demand in addition to
the provider's existing commitment?
e) Be served by a landfill with sufficient permitted capacity to —X—
accommodate the project's solid waste disposal needs?
,Z _Zz
Issues, Discussion and SupportiII111FRhformation Sources Sourc7s1gkns1u`7t,,
Potentially Less 77tan No
Significant Significant Impact
ER 79-07 .,Unless.,,, impact .
Mitigation;
Citywide Inc orated
f) Comply with federal,state,and local statutes and,regulations : i __X__
related to solid waste?_
- b!�?' Mss..ir?+.^.a-r..v>..e....:a. ,.._-.-
Evaluation ..
The project involves amendment to administrative procedures in the Zoning Regulations text to specify the method by which
required affordable.dwellings units are to be offered for occupancy. No physical changes will occur as a result of the
proposed procedural changes.No impacts to transportation facilities or area traffic are anticipated.
17.MANDATORY FINDINGS OF SIGNIFICANCE.
a) Does the project have the potential to degrade;the quality of the _ _X
environment,substantially reduce the habitat of a fish or wildlife
species,cause a fish or wildlife population to drop below self-
sustaining levels,threaten to eliminate a plant or animal
community,reduce the number or restrict the range of a rare or
endangered plant or animal or eliminate important examples'of
the major periods of California history or prehistory?
N/A
b) Does the project have impacts that are individually limited,but --X—
cumulatively considerable? ("Cumulatively considerable"
means that the incremental effects of a project.are considerable
when viewed in connection with the effects of the past projects,
the effects of other current projects,and the effects:of probable
future ro•ects) -
N/A -
c) Does the project have environmental effects which will cause —X--
substantial adverse effects on human beings,either directly,or
indirectly?
N/A
18.EARLIER ANALYSES.
Earlier analysis may be used where,pursuant to the tiering, program EIR, or,other CEQA.process, one or more effects have
been adequately analyzed in an earlier EIR or Negative Declamation. Section 15063(c) (3) (D). In this case a discussion
should identify,the following items:.
a) Earlier sis_used..Identify earlier analyses and.state-where they are available for review.
N/A
b) Impacts adequately addressed. Identify,which effects from the above checklist were within-the scope of and-adequately
analyzed in an earlier document ptusuant'to applicable legal,standards,and state whether such effects were addressed by
mitigation measures based on the earlieranal sis. _
N/A
c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation
measures which were incorporated or refined from the earlier document and the extent to which they address site-specific
conditions of the project.
N/A
19. SOURCE REFERENCES.
1. City of SLO General Plan Land Use Element,July 2002
2. City of SLO General Plan Circulation Element,November 1994
3. City of SLO General Plan Noise Element,May 1996
4. City of SLO General Plan Safety Element,July 2000
5. Cityof SLO General Plan Conservation Element,Jul 1973
6. City of SLO General Plan Energy Conservation Element,April 1981
Issues, Discussion and SupportilWfiformation Sources Sources PotAURF Potentially Less Than No
Significant Significant Significant Impact
ER 79-07 Issues Unless Impact
CI Mitigation
Citywide Incorporated
7. City of SLO Water and Wastewater Element,July 1996
8. City of SLO General Plan EIR 1994 for Update to the Land Use and Circulation Elements
9. City of San Luis Obispo Municipal Code
All documents listed above are available for review at the City of San Luis Obispo Community Development Department 919
Palm Street,San Luis Obispo,California(805)781-7522.
Aliarhmen#
2-.2
0 a Attachment 3
DRAFT ORDINANCE NO. (2007 Series)
AN ORDINANCE OF THE CITY COUNCIL OF SAN LUIS OBISPO AMENDING
CHAPTER 17 OF THE MUNICIPAL CODE,
THE CITY'S INCLUSIONARY HOUSING ORDINANCE,TO MAKE MINOR TEXT
AMENDMENTS TO CLARIFY RESIDENT SELECTION FOR AFFORDABLE
HOUSING UNITS
(TA/ER 79-07)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, on June 13, 2007 and recommended approval of amendments to the Municipal Code
Chapter 17.91 to incorporate minor text amendments which clarify the process for selecting
residents for the City's Affordable Housing Programs; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on August
21, 2007, for the purpose of considering Application TA/ER 79-07; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
WHEREAS, the Council has reviewed and considered the adopted Negative Declaration
of environmental impact for the project; and
WHEREAS, the Council has duly considered all evidence, including the
recommendation of the Planning Commission, testimony of interested parties, and the evaluation
and recommendations by staff, presented at said hearing; and
WHEREAS, the City Council finds that the proposed text amendment is consistent with
the General Plan, the Housing Element, the intent of the City's Affordable Housing Programs,
and other applicable City ordinances.
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Environmental Determination. The City Council finds and determines that
the Negative Declaration adequately addresses the potential environmental impacts of the
proposed text amendment to the Inclusionary Housing Ordinance, and reflects the independent
judgment of the City Council. The Council hereby adopts said Negative Declaration.
SECTION 2. Findings. The City Council makes the following findings:
1. The proposed amendments are necessary to provide for a clear, fair, and open public
process for resident selection of the city's affordable housing units. Future selection of
interested, eligible residents can now include all individuals and households rather than a
limited few who become aware of affordable units.
2-�
Attachment 3
Ordinance No. (2007Series)
TA/ER 79-07 Inclusionary Housing Ordinance
Page 2
2. The proposed amendments will allow the City's Municipal Code Chapter 17 to be clear
about how resident selection occurs.
3. The proposed amendments will make it clear to developers and owners of affordable
units, as well as the interested public, what type of process must be followed in order to
provide equal opportunity for public benefit of the City's affordable housing programs.
4. The proposed amendments will not significantly alter the character of the neighborhoods
or cause significant health, safety or welfare concerns, since the regulations do not alter
the density, character, or allowed uses within the City. Instead, the ordinance defines
clearly a process for participation and eligibility.
5. The proposed amendments will not result in significant impacts to the environment;
therefore the Negative Declaration is appropriate for the scope of the text amendment.
SECTION 3. Action. Title 17 (Zoning Regulations) of the San Luis Obispo Municipal
Code is hereby amended as set forth in attached Exhibit A.
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in the Telegram-Tribune, a newspaper published and circulated in this City. This ordinance shall
go into effect at the expiration of thirty(30) days after its final passage.
INTRODUCED on the 21".day of August, 2007, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the _ day of , 2007, on the following roll
call vote:
AYES:
NOES:
ABSENT:
Mayor David F. Romero
J Attachment 3
Ordinance No. (2007Series)
TA/ER 79-07 Inclusionary Housing Ordinance
Page 3
ATTEST:
City Clerk Audrey Hooper
APPROVED AS TO FORM:
omey Jonathan Lowell
J ) Attachment 3
Exhibit A
Additional Ianzuaze to clarify the selection process is underlined and italicized Changes are
located in sections 17.91.100. 17.91.110 and 17.91.130. The rest of the Chapter is provided for
context and as an opportunity for Commissioners to become more familiar with Inclusionary
Housing Both Chapters 17.90 and 17.91 wi11 be undersoinz evaluation for more comprehensive
updates in the future, any comments or su zestions toward that update should be made at the end
ofthe_hearinz as staff direction.
Chapter 17.91
INCLUSIONARY HOUSING REOUIREMENT
Sections:
17.91.000 Title.
17.91.010 Purpose.
17.91.020 Definitions.
17.91.030 Applicability and exclusions.
17.91.040 General standards.
17.91.050 Procedures.
17.91.060 In-lieu housing fee.
17.91.070 Affordable housing fund established.
11.91.080 Real property dedication.
17.91.090 Incentives.
17.91.100 Project application.
17.91.110 Conditions of development approval.
17.91.120 Program requirements.
17.91.130 Eligibility screening.
17.91.140 Affordability restrictions.
17.91.150 Shared equity purchase program.
17.91.151 Early resale of shared equity properties.
17.91.160 Management and monitoring.
17.91.170 Enforcement and appeals.
17.91.180 Severability.
17.91.000 Title.
The provisions of this chapter shall be known collectively as the inclusionary housing
requirement of the City of San Luis Obispo. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part),
1999)
17.91.010 Purpose.
The purpose and intent of this chapter is to promote the public welfare by increasing the
production and availability of affordable housing units, and to establish an inclusionary housing
requirement which implements general plan policies guiding land use and housing development.
(Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
,2-2.8'
Attachment 3
Page 2 ,
17.91.020 Definitions.
For the purposes of this chapter, the following words and phrases shall have the meaning set
forth below:
A. "Affordable" means housing which can be purchased or rented by a household with very low-,
low-, or moderate-income, as described in the city's affordable housing standards.
B. "Affordable housing agreement" shall mean a written agreement between the developer, city
and possibly additional parties which specifies the terms and conditions under which affordable
housing requirements are to be met.
C. "Affordable housing fund" means a fund established and administered by the city, containing
in-lieu fees and other funds held and used exclusively to increase and improve the supply of
affordable housing.
D. "Affordable housing project" shall mean a development project in which one hundred percent
of the dwellings to be built will be sold or rented in conformance with the city's affordable
housing standards.
E. "Building valuation" shall mean the total value of all construction work for which a
construction permit is required, as determined by the chief building official using the Uniform
Building Code.
F. "Commercial project" means a development project involving primarily nonresidential uses,
including retail, office, service-commercial, light-industrial, neighborhood-commercial, tourist-
commercial, and manufacturing uses as further described in the zoning regulations.
G. "Density" means residential density as defined in Section 17.16.010 of this code.
H. "Density bonus" means a density increase of at least twenty-five percent over the maximum
density otherwise allowable under the zoning regulations.
I. "Development project" shall mean an activity for which a subdivision map or construction
permit is required, including new buildings and building additions or remodels as described in
Section 17.91.030, but not including changes in ownership, occupancy,management or use.
J. "Director" means the community development director or his or her authorized representative.
K. "Equity build-up" shall mean a property's sales price at first resale, less the initial purchase
price and less the city's equity share as described in Section 17.91.150.
L. "Expansion area" means a land area proposed for annexation to the city or annexed after the
adoption date of the ordinance codified in this chapter.
M. "Inclusionary housing unit" means a dwelling which is built under the provisions of this
chapter, and which meets the city's affordable housing standards.
2-29
Attachment 3
Page 3 >
N. "In-lieu fee" means a fee paid to the city as an alternative to the production of inclusionary
housing; to be used in the acquisition, construction, or rehabilitation of affordable housing.
O. "Low-" or "lower-income households" shall have the meaning set forth in California Health
and Safety Code Section 50079.5; provided the income of such persons and families shall not
exceed eighty percent of the median income within the county.
P. "Market value" shall mean the highest price a willing buyer would pay and a willing seller
would accept, both being fully informed and in an open market, as determined by an appraiser or
other qualified professional.
Q. "Mixed use development project" shall mean a development project which combines
residential and nonresidential uses on the same lot, pursuant to city zoning regulations.
R. "Moderate-income households" shall include those persons and families whose incomes
exceed eighty percent but are less than or equal to one hundred twenty percent of the median
income within the county.
S. "Real property" shall mean land and improvements, if any, including anything permanently
affixed to the land, such as buildings, walls, fences, and paved areas.
T. 'Residential project" shall mean development projects which result in the subdivision of land
and/or the construction or conversion of dwellings, including, but not limited to, single-family
detached homes, apartments, condominiums, live/work studios, mobile homes, and group
housing.
U. "Very low income" shall have the meaning set forth in California Health and Safety Code
Section 50105, provided, that such income level shall not exceed fifty percent of median income
within the county. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.030 Applicability and exclusions.
A. This chapter shall apply to development projects consisting of five or more lots or new
dwelling units, and to commercial development projects consisting of two thousand five hundred
square feet of gross floor area or larger.
B. The following types of development projects are excluded:
1. Residential developments of four units or less;
2. New commercial developments of less than two thousand five hundred square feet gross floor
area;
3. Residential and commercial building additions,repairs or remodels; provided, that such work
does not increase the number of existing dwellings by four or more units, or result in an increase
in gross floor area of two thousand five hundred square feet;
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4. The conversion of less than five dwelling units to condominiums within any five-year period;
5. Commercial condominium conversions which do not result in the creation of new dwellings;
6. Affordable housing projects;
7. Emergency projects, or projects which the city council determines are necessary to protect
public health and safety;
8. Development projects which the city council determines are essentially noncommercial or
nonresidential in nature, which provide educational, social or related services to the community
and which are proposed by public agencies, nonprofit agencies, foundations and other similar
organizations;
9. Projects which replace or restore a structure damaged or destroyed by fire, flood, earthquake
or other disaster within three years prior to the application for the new structure(s);
10. Projects for which an approved tentative map or vesting tentative map exists, or for which a
construction permit was issued prior to the effective date of the ordinance codified in this chapter
and which continue to have unexpired permits. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part),
1999)
17.91.040 General standards.
A. Methods of Meeting Requirements. New development projects shall satisfy the inclusionary
housing requirements, as specified in Tables 2 and 2A of the general plan housing element,
which provide that all nonexempt development projects shall contribute toward the production of
affordable housing by constructing at least one affordable dwelling unit or paying an in-lieu fee.
To meet the requirements, the developer shall comply with one or more of the following
methods:
1. Construct the required number of affordable dwelling units, as specified in Table 2, as
adjusted by Table 2A; or
2. Pay an in-lieu fee as described in Table 2, as adjusted by Table 2A. For development projects
in which the adjustment factor under Table 2A equals zero ("W'), the minimum adjustment factor
shall be 0.25 (resulting in a minimum in-lieu fee of 1.25 percent of the building valuation for in-
city development projects and commercial developments in expansion areas, and 3.75 percent of
building valuation for residential developments in expansion areas); or
3. Dedicate real property for affordable housing; or
4. Use a combination of the above methods, to the approval of the city council.
B. Affordable Housing Standards. Affordable dwelling units constructed must meet city
affordable housing standards, and must be consistent with affordability policies in the general
plan housing element.
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C. Concurrent Development. The required inclusionary units shall be constructed concurrently
with market rate units unless the developer and the city council agree within an affordable
housing agreement to an alternative development schedule. (Ord. 1458 § 3 (part), 2004: Ord.
1348 § 2 (part), 1999)
17.91.050 Procedures.
A. Fractional Numbers. In determining the number of dwellings that are required to be built
pursuant to Table 2, fractional units less than 0.50 shall be rounded down to the first whole
number unit, and fractional units of 0.50 or greater shall be rounded up to the next higher whole
number unit, as calculated by the director.
B. Determining Adjustment Factor Using Project Density and Average Unit Size. To determine
the adjustment factor in Table 2A, project density shall be calculated by dividing the total
number of density units proposed(including density bonus where applicable)by the
development project site's net area. Average floor area shall be calculated by dividing the total
gross floor area of all dwellings (excluding garages) within the development project by the total
number of dwellings. Dedicated open space shall not be included in a site's net area.
C. Mixed Use Development Projects. For mixed-use development projects with five or more
dwellings, the inclusionary housing requirement is determined by: (1)using Table 2 to calculate
the base inclusionary requirement for the commercial use, and (2)using Table 2A to adjust the
base requirement based on project density and average unit size, as described in subsection B of
this section. For mixed use development projects with less than five dwellings, the base
inclusionary housing requirement for the commercial use shall apply.
D. Timing. The inclusionary housing requirement shall be met prior to issuance of a certificate of
occupancy for the first unit in a building, or the first building in a complex to be constructed or
remodeled; or for subdivisions, prior to final map approval, or prior to building permit issuance,
for projects for which a certificate of occupancy is not issued; or as otherwise agreed to by the
city council as part of tentative map,rezoning, conditional use permit or other development
approval.
E. Affordable Housing Agreement. To meet the requirement, the developer may enter into an
agreement with the city, the city's housing authority, nonprofit housing provider, or other
qualified housing provider approved by the city council to construct, refurbish, convert, operate
and maintain the required affordable housing. Such affordable housing agreements shall be to the
approval of the director and shall be in a form approved by the city attorney. (Ord. 1458 § 3
(part), 2004: Ord. 1348 § 2 (part); 1999)
17.91.060 In-lieu housing fee.
A. Payment of In-Lieu Fee. Developer may, at his or her discretion, choose to pay a fee to the
city or dedicate real property in lieu of constructing affordable dwellings to meet this
requirement.
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B Amount and Method of Payment. The dollar amount and method of payment of the in-lieu fee
shall be as described in Table 2, and where applicable, as adjusted by Table 2A of the general
plan housing element, as further described in Section 17.91.040(A)(2), to the approval of the
director. For subdivisions in which the construction valuation is not known, the director shall
estimate the average construction valuation based on lot area, land value, and applicable city
development standards. Developer shall use the estimated average construction valuation to
determine the amount of in-lieu fees.
C. Timing. In-lieu fees shall be paid prior to release of occupancy of the first dwelling within a
residential development; or for residential subdivisions to be built out by others, prior to final
subdivision map approval; or prior to occupancy for new commercial buildings or remodels; or
prior to building permit issuance, for projects for which a certificate of occupancy is not issued
or as otherwise provided by written agreement between the developer and city,to the approval of
the director. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.070 Affordable housing fund established.
The city hereby establishes an affordable housing fund. Said fund shall be administered by the
finance director and shall be used exclusively to provide funding for the provision of affordable
housing and for reasonable costs associated with the development of affordable housing, at the
discretion of the city council.
A. In-Lieu Fees, In-lieu fees collected shall be deposited into the affordable housing fund, to the
satisfaction of the finance director. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.080 Real property dedication.
A. Irrevocable Offer to Dedicate Real Property. At the discretion of the city council, an
irrevocable offer to dedicate real property equal or greater in value to the in-lieu fee which would
otherwise be required may be offered to the city, or to a housing provider designated by the city,
instead of providing the required number of affordable dwellings or paying in-lieu fees. In
considering an offer to dedicate real property, the city council must find that the dedication of
real property will provide equal or greater public benefit than constructing affordable units or
paying in-lieu fees, based on the following criteria:
1. Valuation of the land and/or improvements to be dedicated relative to other methods of
meeting the requirement;
2. Suitability of the land and/or improvements for housing, including general plan conformity,
size, shape, topography, and location; and
3. Feasibility of developing affordable housing, including general plan consistency, and
availability of infrastructure.
B. Real Property Valuation. The valuation of real property offered in-lieu shall be determined by
the director, based upon an appraisal made by a qualified appraiser mutually agreed to by the
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developer and the city. Costs associated with the appraisal, title insurance and transfer,
recordation and related costs shall be borne by the developer.
C. Agreement and Timing. The real property dedication shall be by deed or other instrument
acceptable to the city, and shall be completed by recordation with the recorder of the county of
San Luis Obispo prior to occupancy release of the first residential unit or commercial building in
the development; or prior to building permit issuance, for projects for which a certificate of
occupancy is not issued; oras otherwise provided by written agreement between the developer
and the city. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.090 Incentives.
A. Eligibility for Incentives. The developer may be eligible to receive or to request development
incentives in return for constructing affordable housing in connection with.a development
project; pursuant to the affordable housing incentives (Chapter 17.90), as part of a city planning
application. Incentives or other forms of financial assistance may be offered by the city to the
extent that resources are available for this purpose and to the degree that such incentives or
assistance will help achieve the city's housing goals.
B. Affordable Housing Agreement. Any incentives provided by the city,beyond those incentives
to which a developer may be automatically entitled to under Chapter 17.90 of this code, shall
require city council approval and shall be set out in an affordable housing agreement. The form
and content of such agreement shall be to the approval of the city attorney and the director.
Developers are further encouraged to utilize other local, state or federal assistance, when
available, to meet the affordable housing standards. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2
(part), 1999)
17.91.100 Project application.
A. Method of Application. An applicant/developer proposing a project for which affordable
housing is required shall submit a statement with the standard planning application, describing
the inclusionary housing proposal. The developer's statement shall include:
1. A brief description of the proposal, including the method chosen to meet the inclusionary
housing requirement; number, type and location of affordable units; tern of affordability
preliminary calculation of in-lieu fees; or offer of land dedication;
2. How the proposal meets general plan policies and inclusionary housing requirements;
3. Plans and other exhibits showing preliminary site layout, grading, building elevations,parking
and other site features, location of affordable dwelling units, and (where applicable) market-rate
dwelling units;
4. Description of incentives requested, including exceptions from development standards, density
bonuses, fee waivers or other incentives;.and
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5. Other information which the director determines necessary to adequately evaluate the
proposal, including but not limited to the method proposed to award occupana of the affordable
units.
B. Director Response. After receiving a complete planning application, including an affordable
housing proposal, the director shall respond to the applicant or developer's affordable housing
proposal. The city response shall identify: (1) affordable housing issues and concerns; (2)
incentives which the director can support when making a recommendation to the decision-
making body; and(3) procedures which will need to be followed to comply with the inclusionary
housing requirements. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.110 Conditions of development approval.
A. Submittal of an Affordable Housing Agreement. Applicants and developers for development
projects subject to this chapter shall, as a condition of development approval,prepare and submit
an affordable housing agreement for city approval. The draft agreement shall be reviewed by the
director and city attorney for compliance with project approvals, city policies and standards, and
applicable codes. Following approval and signing of the agreement by the parties, the final
agreement shall be recorded and relevant terms and conditions shall be recorded as a deed
restriction on those lots or affordable units subject to affordability requirements. The affordable
housing agreement shall be binding to all future owners and successors in interest.
B. Agreements for Constructing Affordable Units. For development projects meeting their
inclusionary requirement through construction of affordable dwelling units, the affordable
housing agreement shall specify:
1. The number and location of affordable units;
2. The size(square footage), number of bedrooms, and design of the affordable units;
3. Terms of affordability,
4. Schedule for construction of the affordable units;
5. Incentives or other assistance to be provided by the city;
6. Where applicable, the procedures to be used for qualifying tenants or buyers, setting
rental/sales costs, renting or selling units, filling vacancies, and managing the units; and
7. Mechanisms or procedures to assure that the selection ofpotential residents takes place via an
open,public process including but not limited to a lottery, selection by the housing authority or
other non-profit 3'd party, or by other means that insure (qualified) members of the community
have an equal chance at participation. The agreement shall also specifythe.mechanism or
procedures used to assure the continued a ordability and availability of the specified number of
dwelling units to very-low, lower, and moderate income households and/or qualifying seniors.
8. Other terms or conditions requested by city.
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C. Agreements for Real Property Dedication. For development projects meeting their
inclusionary housing requirement through real property dedication, the agreement shall specify:
1. The method of conveyance, schedule, and appraised value of the proposed dedication;
2. Calculation of housing in-lieu fees otherwise applicable to the project at the time of
recordation;
3. Title report and insurance;
4. Description of location, condition, improvements, and other relevant factors applying to the
property; and
5. Other information required by the city.
D. Payment of In-Lieu Fees. An affordable housing agreement shall not be required for projects
which meet their inclusionary housing requirement through the payment of in-lieu fees. (Ord.
1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.120 Program requirements.
Only households qualifying as very low-, low- or moderate-income, pursuant to the affordable
housing standards, shall be eligible to rent, purchase or occupy inclusionary units developed or
funded in compliance with this requirement. For sale inclusionary housing units shall be owner-
occupied for the term of the affordable housing agreement-(Ord. 1458 § 3 (part), 2004: Ord.
1348 § 2 (part), 1999)
17.91.130 Eligibility screening.
The city, its housing authority, or other housing provider designated by the city shall screen
prospective renters or buyers of affordable units. Renters or buyers of affordable units shall enter
into an agreement with the city, its housing authority or other housing provider to comply with
the affordable housing standards. Occupants must be selected by means of an open,public
process which ensures that individuals of a croup of interested participants have equal
probability of selection. Private selection of individuals by project owners is not permitted excep
or any affordable units provided in excess of the required inclusionary units. (Ord. 1458 § 3
(part), 2004: Ord. 1348 § 2 (part), 1999)
17.91.140 Affordability restrictions.
Developers of affordable units for sale shall specify the type of affordability restriction to be
applied. The developer shall choose to either: (1) participate in a shared equity purchase
program, as described in Section 17.91.150, or(2) enter into an affordable housing agreement to
ensure that affordability is maintained for the longest period allowed or required by state law, but
not less than thirty years. Affordable rental units shall be affordable for the longest period
allowed or required by state law,but not less than thirty years. (Ord. 1348 § 2 (part), 1999)
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17.91.150 Shared equity purchase program.
A. Under this program, the 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 city's equity share in
the property. The city's equity share shall be calculated by the director, and shall be the decimal
percentage of the property's value resulting from:
1. The difference between the property's market value and the actual price paid by the
homeowner, divided by the market value; and/or when applicable,
2. The amount of subsidy provided by the city to the homeowner to purchase the property,
divided by the property's market value.
B. Upon sale, the city's equity share shall be repaid to the city from the proceeds of the sale, less
the city's percentage share of title insurance, escrow fees and documentary transfer taxes, at the
close of escrow. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2(part), 1999)
17.91.151 Early resale of shared equity properties.
In the event of"early resale,'' owners of properties subject to the shared equity purchase program
shall either: (1) pay an equity recapture fee to the city as described in the schedule below, in
addition to the city's equity share, or(2) sell the property to another eligible household. "Early
resale" shall mean the sale, lease or transfer of property in within five years of the initial close of
escrow. If the owner chooses to pay the equity recapture fee,-the recapture fee shall be paid to the
city upon resale at close of escrow, based on the following schedule:
Year % of Equity Build-up Recaptured
0-2 100%
3 75%
4 50%
5 25%
6 and after 0%
The recapture amount shall be determined prior to the calculation of escrow closing costs. (Ord.
1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
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. (Ord. 1458
§ 3 (part), 2004: Ord. 1348 § 2 (part),.1999)
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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. Decisions of the director are appealable, subject to the zoning
regulations appeal provisions (Chapter 17.66). (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part),
1999)
17.91.180 Severability.
If any provision of this chapter or the application thereof to any person or circumstances is held
invalid, the remainder of the chapter and the application of the provision to other persons or
situations shall not be affected thereby. (Ord. 1458 § 3 (part), 2004: Ord. 1348 § 2 (part), 1999)
GXDplan/pbrown/lotteries/CC staff rpt 17.91 Amend
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