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HomeMy WebLinkAbout1035ORDINANCE NO. 1035 (1985 SERIES) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADDING CHAPTER 17.90 TO THE MUNICIPAL CODE, CONCERNING AFFORDABLE HOUSING INCENTIVES AS REQUIRED BY STATE LAW. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Chapter 17.90 is hereby added to Division II of Title 17 of the Municipal Code, to read as follows: SECTIONS: 17.90.010 17.90.020 17.90.030 17.90.040 17.90.050 17.90.060 17.90.070 17.90.080 17.90.090 17.90.100 17.90.010 Purpose. "AFFORDABLE HOUSING INCENTIVES" Purpose Definitions Standard Incentives for Housing Projects Standard Incentives for Conversion of Apartments to Condominium Projects Alternative or Additional Incentives Relationship to Other Procedures Agreements for Affordable Housing Fees Affordability Standards Occupant Screening The purpose and intent of this chapter is to encourage housing projects which incorporate units affordable to low- and moderate- income households and which conform to city development policies and standards, by providing density bonuses, or other equivalent incentives, as required by California Government Code section 65915, et seq. 17.90.020 Definitions. For the purposes of this chapter, the following words and phrases shall have the meaning set forth below. A. "Density" means residential density as defined in section 17.16.010 of the Zoning Regulations of this Code. B. "Density bonus" means a density increase of at least 25 percent over the maximum density otherwise allowable under the Zoning Regulations. 1035 Ordinance No. 1035 (1985 Series) Page 2 C. "Director" means the C xnmunity Development Director or his authorized representative. D. "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 80 percent of the median income within San Luis Obispo County. E. "Persons of low or moderate income" shall have the meaning set forth in California Health and Safety Code; Section 50093; provided; the income of such persons and families shall not exceed 120 percent of the median income within San Luis Obispo County. 17.90.030 Standard Incentives for Housing Projects. A. This section shall apply only to housing projects consisting of 5 or more dwelling units. B. When a developer agrees to construct at least 25 percent of the units otherwise allowable under the Zoning Regulations for persons or families of low or moderate income, the Director shall grant the developer; upon the developer's request, a density bonus equivalent to an increase in density of 25 percent over the density otherwise allowed by the Zoning Regulations. C. When a developer agrees to construct at least 10 percent of the units otherwise allowable under the Zoning Regulations for lower income households, the Director shall grant the developer; upon the developer's request, a density bonus equivalent to an increase in density of 25 percent over the density otherwise allowed by the Zoning Regulations. D. If a developer agrees to construct both 25 percent of the units for persons and families of low or moderate income and 10 percent of the units for lower income households; the developer shall be entitled to only one density bonus under this section. E. Any request for a density bonus under this section shall be in writing, and shall include the following information, as well as any additional information required by the Director: Ordinance No. 1035!1985 Series) Page 3 1. The name of the developer; 2. The location of the proposed project; 3. The density allowed under the Zoning Regulations; as well as the proposed density;. 4. The number and type (bedroom county) of dwellings and identification of those dwellings which are to be affordable to each household income category; 5. Whether the dwellings will be offered for sale or for rent. 6. The proposed sales price, financing terms; rental rates; or other factors which will make the dwellings affordable to lower income households or low and moderate income households. 17.90.040 Standard Incentives for Conversion of Apartments to Condominium Projects A. When an applicant for approval to convert apartments to a condominium project agrees to provide at least 33 percent of the units of the proposed condominium project to persons and families of low or moderate income; or 15 percent of the units of the proposed condominium project to lower income households; and areas to pay for the reasonable; necessary administrative costs incurred by the city pursuant to this section; the Director shall grant a density bonus equivalent to an increase in the units of 25 percent over the number of apartments; to be provided within the existing structure or structures proposed for conversion; provided; the Director may place such reasonable conditions on the granting of the density bonus as he finds appropriate$ including; but not limited to; conditions which assure continued affordability of units to subsequent occupants who are persons or families of low or moderate income or lower income households. B. Noting in this section shall be construed to require the city to approve a proposal to convert apartments to condominiums. Ordinance No. 1035(1985 Series) Page 4 C. An applicant shall not be elibile for a density bonus under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were provided under Section 17.90.030 or Section 17.90.050. 17.90.050 Alternative or Additional Incentives A. When a developer agrees to construct housing for households of low or noderate income or lower income households and desires an incentive other than a density- bonus as provided in Section 17.90.030, or when an applicant for approval to convert apartments to a condominium project agrees to provide housing for households of low or moderate income or lower income households and desires an incentive other than a density bonus as provided in Section 17.90.040, the developer or the applicant shall submit a proposal for consideration by the City Council. B. If the proposal is submitted by a developer of a housing project; the proposal shall include the information set forth in Section 17.90.030 G above, as well as a description of the requested incentive; an estimate of the incentive's financial value in ccxnparison with the financial value of the density bonus allowed in Section 17.90.030, as well as the basis for the comparison estimate. Alternative incentive proposals may include but are not limited to one or mre of the following: 1. Density bonus in excess of that provided in Section 17.90.030. 2. Waiver of application and processing fees; 3. Waiver of utility connection or parkland in -lieu fees or park land dedication requirement; 4. City funded installation of off -site improvements which may be required for the project; such as streets or utility lines; 5. Write -dawn of land costs; 6. Direct subsidy of construction costs or construction financing costs; 7. Approval of exceptions to subdivision or zoning property - development standards; but only to the extent that such exceptions would be authorized by relevant provisions of this code; Ordinance No. 1035 (1985 Series) Page 5 provided that any proposal for an incentive which requires a direct financial contribution from the city shall also include provisions for assuring continued availability for low and moderate income units for at least 30 years. C. If the proposal is submitted by an applicant for approval to convert apartments to a condominium project, the proposal shall include those relevant items set forth section 17.90.030 G plus the requested incentive, an estimate of the incentive's financial value in comparison with the financial value of the density bonus as set forth in section 17.90.040, and the basis for the comparison estimate. Nothing in this section shall be construed to require the city to provide cash transfer payments or other monetary compensation. The city may reduce or waive requirements which the city might otherwise apply as conditions of conversion approval. D. Nothing in this section shall be construed to require the City Council to approve any alternative incentive. The developer or applicant has the standard incentive of a density bonus under sections 17.90.030 and 17.90.040 if the Council fails to approve an alternative incentive. E. The City Council action on any alternative incentive proposal.�;hall be by resolution. Any such resolution shall include findings relating to the information required in subpart B or C of this section. F. The Council shall respond to a proposal within 90 days after submittal of a complete proposal. The City Clerk shall notify the developer or the applicant of the Council's response. Should the Council fail to approve a proposal for alternative incentives within 90 days after submittal of a complete proposal, the proposal shall be deemed denied, and the City Clerk shall so advise the developer or applicant in writing. 17.90.060 Relationship to Other City Procedures. A. Projects incorporating affordable housing and receiving density bonuses or alternative incentives as provided in this chapter shall be processed according to normal procedures as expeditiously as possible. Operation of sections 17.90.030 or 17.90.040 or approval of alternative incentives as provided in section 17.90.050 shall not be construed as a waiver of standard development review procedures or an exemption of the project from city development standards other than those explicitly listed in the approving resolution. Should a project fail to receive any required city approval, the density bonus or alternative incentive granted under this chapter shall be null and void. Ordinance No. 1035 (1985 Series) Page 6 B. Applications of section 17.90.030 and 17.90.040 to projects shall be ministerial acts for purposes of environmental review. Environmental documents need not be filed solely for recordation of agreements concerning the density bonus and provision of affordable housing. Normal environmental review procedures shall apply to the project applications. If the Council approves an alternative incentive as provided in section 17.90.050, such approval shall be subject to and conditioned upon environmental determination being made for the project in the usual manner. The Community Development Department shall outline for the Council any probable, significant environmental effects which would result from the proposed incentive. 17.90.070 Agreements for Affordable Housing. Prior to the issuance of construction permits for any project incorporating a bonus or incentive as provided in this chapter, the city and the project owner(s) shall enter into an agreement in a form acceptable to the City Attorney, to be recorded in the office of the County Recorder. The agreement shall specify mechanisms or procedures to assure the continued affordability and availability of the specified number of dwelling units to occupants who are persons or families of low or moderate income, or lower income households, as the case may be. The agreement shall also set forth those items required by section 17.90.030G or any alternative incentives granted pursuant to section 17.90.050. The agreement shall run with the land and shall be binding upon all the heirs, successors, or assigns of the project or property owner for a period of not less than 30 years from the date the property is first occupied by persons or families of low or moderate income or lower income households. 17.90.080 Fees. A. No fee in addition to normal project application fees shall be charged for a request for a density bonus pursuant to the provisions of sections 17.90.030 or 17.90.040, except for reasonable, necessary administrative costs incurred by the City pursuant to Section 17.90.040. B. A fee not to exceed the amount charged for "preapplication concept review" may be charged for proposals submitted pursuant to the provisions of section 17.90.050. 17.90.090 Affordability Standards. A. The Community Development Department shall publish and revise as needed a schedule of rental rates and sales prices for dwellings which will be affordable to households with incomes as provided in this chapter. The schedule shall substantially conform with the affordability standards as established by state or federal law. In general, rent shall not exceed 25-percent of the qualifying households maximum monthly Ordinance No. 1035 (198.5 Series) Page 7 income and sales prices shall not exceed three times the qualifying household's maximum annual income. B. The maximum rental rates and sales prices as revised, generally on an annual basis, shall remain in effect for projects receiving bonuses or alternative incentives under this chapter for not less than 30 years from the date the dwellings are ready for occupancy. 17.90.100 Occupant Screening. A. The affordable dwellings developed pursuant to this chapter shall be available to qualified occupants without regard to race, religion, national origin, sex, occupation, or other affiliation. Occupants may be screened on the basis of age only to qualify those occupants seeking housing designed for the elderly. B. The city Housing Authority shall screen prospective occupants so that dwellings developed pursuant to this chapter shall be occupied by households with lower or moderate incomes, as appropriate. Owners of projects shall enter into agreements with the Housing Authority for such screening services. C. Preference in occupant screening shall be given to those employed within or residing within the City of San Luis Obispo or the immediately surrounding area, to the extent that this provision does not conflict with state or federally funded housing assistance programs which may apply to a particular project, or other applicable law. This section is to insure that those households having the greatest difficulty obtaining housing at market rates within the City of San Luis Obispo shall be able to occupy affordable housing made available pursuant to this chapter. SECTION 2. The council affirms the Community Development Director's approval of the negative declaration of environmental impact of March 41 1984 for this ordinance, based-on initial study of-environmental impact No. 11 -84, as provided in state and city environmental review guidelines. SECTION 3. A summary of this ordinance, approved by the City Attorney, and the names of the councilmenbers voting for and against, shall be published in the Telegram- Tribune (a newspaper published and circulated within San Luis Obispo) at least three (3) days before this �S� �� /� ,,��� ��- s �r® ���' �� �y��� ci���i y �- {. T Ordinance No. 1035 (198.5 Series) Page 8 ordinance is given final adoption. This ordinance shall take effect at the expiration of thirty (30) days after its final adoption. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the 5th day of February , 198 5, on motion of Councilwoman Dovey , seconded by Councilman Griffin , an on the following roll call vote: AYES: Councilmembers Dovey, Griffin, Dunin, Settle and Mayor Billig NOES: None ABSENT: None APPROVED: d for ORDINANCE NO. 1035 (1985 Series) FINALLY PASSED this 5th day of March , 1985, on motion of Councilwoman Dovey , seconded by Councilman Griffin , and on the following roll call vote: AYES: Councilmembers Dovey, Griffin, Dunin, Settle and Mayor Billig NOES: None ABSENT: None ATTEST: Ci y Clerk Pamela Vies 0 moss goovll� Pub /2sh / ?