HomeMy WebLinkAbout10/05/2004, PH 3 - HOUSING ELEMENT PROGRAM IMPLEMENTATION U
council Mrd.D. 10-5-04
j acEnaa Repoin '� 3
CITY OF SAN LU I S O B I S P O
FROM: John Mandeville, Director of Community Development
Prepared By: Jeff Hook,Senior Planner
SUBJECT: HOUSING ELEMENT PROGRAM IMPLEMENTATION
CAO RECOMMENDATION
Introduce ordinances amending the Municipal Code to implement Housing Element programs:
1) Inclusionary Housing (Ch. 17.91); 2) Residential Growth Management (Ch. 17.88); 3)
Downtown Housing Conservation (Ch; 17.86); 4) Architectural Review Commission exemption
for Small Residential Projects (Ch. 2.48); and 5) Non-Residential Uses Right To Continue (Ch.
17.22); and adopt a resolution amending the Community Design Guidelines.
DISCUSSION
Background
Last March, after 18 months of public meetings and detailed review, Council adopted the
updated General Plan Housing Element. The Housing Element is a policy and program "rich"
document and requires changes to city codes and standards to implement. The proposed
ordinance changes follow closely,and carry out, Council's direction on important housing goals.
The Housing Element charts an ambitious course to expand housing opportunities for all income
groups in San Luis Obispo and its effectiveness depends, in part, on timely follow-up actions. To
that end, staff has prepared five ordinance amendments that will help jump-start our affordable
housing efforts. The draft ordinances are ready to introduce for adoption. In addition, the
Community Design Guidelines should be amended by resolution to include an exemption for
small residential development projects.
Planning Commission Action
Table 2A, the Housing Element's new method of determining the inclusionary housing
requirement, necessitated more ordinance changes than did the other new programs due to the
new "affordability by design" provisions built into the Housing Element. Consequently, while
the amendments do not set new policy direction and are consistent with Council direction, staff
referred the draft inclusionary ordinance to the Planning Commission for review. At its
September 22nd meeting, the Commission recommended that Council approve the proposed
amendments on a 5:0 vote (Attachments 1 and 2).
Ordinance Amendments Summary
The targeted Housing Element programs and a summary of the proposed ordinance amendments
.that implement them are summarized below. Detailed legislative drafts are provided in
Attachments 3-8. The amendments carry out adopted Housing Element programs. In a few
sections, minor changes are included to clarify adopted policy or procedures already in effect.
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Housing Element Implementation,October 5,2004 Council Meeting Page 2
Program 2.3.1 — "Inclusionary Housing." The amendments modify the formula under which
new residential subdivisions and residential development projects meet the inclusionary
requirement, as shown in Tables 2 and 2A, as further described in the Planning Commission Staff
Report, Attachment 2. Higher density, compact housing developments that tend to be more
affordable by design have a lower inclusionary housing requirement than larger homes in low-
density developments. All non-exempt development projects are responsible for building at least
one affordable dwelling or paying equivalent in-lieu fees. The amendments also: 1) clarify how
in-lieu fees are determined for projects in which the adjustment factor under Table 2A equals zero
(Ch. 17.91.040.2) and for custom lot residential subdivisions (Ch. 17.91.060), 2) explain how the
adjustment factor is applied (Ch. 17.91.050.13), and 3) clarify how the inclusionary housing
requirement applies to mixed-use development projects (Ch. 17.91.050.C). (Attachment 3)
Program 6.3.1 — "Growth Management Exemption for Moderate Income Housing." The
Residential Growth Management Regulations (SLOMC Ch. 17.88) already exempt housing that is
affordable to very-low and low-income households. This amendment expands the exemption to
include new housing in the Downtown Core (C-D zone) and new housing in other zones that is
enforceably restricted to moderate income households. In expansion areas, the overall number of
dwellings built must still conform to the growth management phasing plan. (Attachment 4)
Program 3.3.5 — "Downtown Housing Conservation." The amendments establish a "no net
loss" housing conservation program by amending the Downtown Housing Conversion Permit
ordinance. It does this by requiring developers within the Downtown Planning Area to ensure
their development projects will not remove more dwellings than have been built in the downtown
planning area since March 30, 2004. If the Community Development Director determines a
development project would result in a net housing loss, the developer must replace the dwellings
to be removed, whether occupied or not.
Dwellings must be replaced on a one — for - one basis and built concurrently with the
development project. Replacement units may be of any size, type, or tenure, consistent with
Zoning Regulations and as approved by the Architectural Review Commission or the Director.
Replacement dwellings must be located within the same sub-area as the dwellings lost (either the
Downtown Core or the area surrounding the Downtown Core and within the Downtown Planning
Area), but need not be located on the same site as previously existed. Exceptions to the no net
loss requirement require Council approval, subject to specific findings in the ordinance.
(Attachment 5)
Program 6.3.14 — "Architectural Review Commission Exemption for Small Residential
Projects." The amendment exempts the construction, relocation, rehabilitation or remodeling of
up to four dwellings of up to 1200 square feet each from Architectural Review Commission
review. New multi-unit housing would require "minor or incidental" or staff level architectural
review, unless the dwellings are located on a sensitive or historically significant site. (Attachment
6) The ordinance change also requires a change to the Community Design Guidelines section
describing when architectural review is required. This latter change is accomplished by Council
resolution. (Attachment 8)
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Housing Element Implementation,October 5,2004 Council Meeting Page 3
Program 11.3.1 — "Continuance of Legal Non-residential Uses." This amendment addresses
concerns that new mixed-use developments may threaten the ability of legal, conforming non-
residential uses to continue where new housing is proposed on adjacent or nearby sites. The
proposed ordinance adds a section to Zoning Regulations requiring that housing developments
adjacent to or within 300 feet of such uses shall include a condition requiring constructive notice
to new home buyers and/or renters of possible characteristics associated with non-residential
uses, such as noise,odors, vibration, and lighting. (Attachment 7)
ATTACHMENTS
1. Draft Planning Commission Minutes, September 22, 2004
2. Planning Commission Staff Report on Inclusionary Housing Ordinance Amendments,
September.22, 2004
3. Draft Ordinance Amending SLOW Ch. 17.91, modifying the Inclusionary Housing
Requirement
4. Draft Ordinance amending Ch. 17.88 to exempt Downtown Housing and Affordable
Moderate-Income Housing from Residential Growth Management Regulations.
5. Draft Ordinance Amending SLOMC Ch. 17.86 to Establish a Downtown Housing
Conservation Program.
6. Draft Ordinance Amending SLOMC Ch. 2.48 regarding Architectural Review for small
residential development projects.
7. Draft Ordinance Amending SLOW Ch. 17.22 to Protect Legal, Conforming Non-Residential
Uses Adjacent To Or Nearby Proposed New Housing Developments.
8. Draft Resolution amending the Community Design Guidelines regarding what projects require
architectural review.
JhWhousing element implementation/CAR10-5-04HEimpkment
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Draft Planning Commissio, inutes
September 22, 2004
Page 3 Attachment 1
COMMISSION COMMENTS:
Commission discussion focuse/one project's consistency with the Airport Land Use
Plan (ALUP).
Commr. Loh moved the staff rendation with finding #8 deleted and modifying
Condition 46 which requires/the proiect to be consistent with the ALUP to the
satisfaction of the Community evelo ment Director. Seconded by Commr. Miller.
Commr. Osborne noted that a could not support the motion because he felt it would
create a housing imbalance ecause it would be adding more businesses in town with
insufficient housing.
AYES: Commrs. Loh, Mil r, Aiken, and Caruso
NOES: Commr. Osborne
ABSENT: Commrs. Boswell and ristianson
ABSTAIN: None
The motion carried on a 4:1 vote.
3. 55 Broad Street. PD and ER 163-02; Re uest to modify an existing Planned
Development Zoning district to accommodate 0 residential units; R-4-PD zone;
Morrison, LLC, applicant. (Phil Dunsmore) To be ontinued to October 13, 2004.
This item was continued without discussion to the mee ing of October 6, 2004.
4. 715 Tank Farm Road. PD 78-04; Request to amend the property's large office
Planned Development to allow medical offices- -S-SP-PD zone; Bill Lee, applicant.
(Tyler Corey) Application Withdrawn.
This item was withdrawn; there was no di ussion.
5. 735 Tank Farm Road. PD 1 -04; Request to amend the property's large office
Planned Development to allo medical offices; C-S-SP-PD zone; Edna Valley
Office LLC, applicant. (Tyler Co ) Application Withdrawn.
This item was withdrawn; there was no di cussion.
6. City-Wide. GPI 160-04; Amend the Inclusionary Housing Requirement (SLOMC
Ch. 17.91) to implement Housing Element Program 2.3.1 regarding Table 2A
adjustment factors and other procedural changes; City of San Luis Obispo,
applicant. (Jeff Hook)
Senior Planner Jeff Hook presented the staff report requesting that the Planning
Commission recommend the City Council amend SLOMC Ch. 17.91 to implement
Housing Element Program 2.3.1. ,
Draft Planning Comm issio,___�inutes
September 22, 2004
Page 4 Attachment 1
PUBLIC COMMENTS:
There were no comments made from the public.
COMMISSION COMMENTS:
Commr. Loh moved to recommend to City Council to amend this Chapter 17.91 to
implement Housing Element Program 2.3.1. Seconded by Commr. Osborne..
AYES: Commrs. Loh, Osborne, Miller, Aiken, and Caruso
NOES: None
ABSENT: Commrs. Boswell and Christianson
ABSTAIN: None
The motion carried on a 5:0 vote.
--elDWENT AND DISCUSSION.
7. Staff:
A. Agenda Forecast:
Deputy Director Ronald W senand gave an agenda forecast of upcoming projects.
8. Commission:
Commr. Miller commented o e traffic on Santa Rosa and asked if it were possible to
change the timing on the traffic sl Is.
Commr. Loh noted that all the traffic is div d to Casa Street, which is very narrow,
and suggested the issue be addressed.
ADJOURMENT:
With no further business before the Co ssion, the meeting adjourned at 9:10
p.m. to a special meeting scheduled October 6, 2004, at 7:00 p.m. in Council
Chamber.
Respectfully submitted by
Irene Pierce
Recording Secretary
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Attachment 2
CITY OF SAN LUIS OBISPO
PLANNING COMMISSION STAFF REPORT ITEM# �o
FROM: Michael Draze,Deputy Community D velopment Dir. MEETING DATE: 9/22/04
Prepared By: Jeff Hook, Senior Plan r
FILE NUMBER: GPI 160-04
PROJECT ADDRESS: Citywide
SUBJECT: Amend the Inclusionary Housing Requirement (SLOMC Ch. 17.91) to implement
Housing Element Program 2.3.1. regarding Table 2A adjustment factors and other
procedural changes.
RECOMMENDATION: Recommend the City Council amend SLOMC Ch. 17.91 to
implement Housing Element Program 2.3.1. as shown in Attachment 1.
BACKGROUND
Situation/Previous Review
Last March, after 18 months of public meetings and detailed review, Council adopted the
updated General Plan Housing Element. The Housing Element is a policy and program "rich"
document and requires changes to city codes and standards to implement. One of the highlights
of the new Housing Element is the Commission-initiated change to the Inclusionary Housing
Requirement to promote "affordability by design." As required by HE Program 2.3.1, staff has
drafted an amended ordinance to implement the adopted policy, shown in Attachment 1.
The City Council adopted the Commission's recommended Program 2.3.1 and modified the
recommended "Tables 2 and 2A." The amended ordinance follows closely, and carries out,
Commission and Council direction on this important housing program. The amendments also:
1) clarify how in-lieu fees are determined for projects in which the adjustment factor under Table
2A equals zero (Ch. 17.91.040.2) and for custom lot residential subdivisions (Ch. 17.91.060),
explain how the adjustment factor is to be applied (Ch. 17.91.050.B), and clarify how
inclusionary housing requirement applies to mixed-use development projects (Ch. 17.91.050.C).
These are essential details to implement the program, but which were not discussed by the
Commission. The amendments do not, however, set new policy direction and are consistent with
the intent of previous Commission direction. So while the amendments are essentially
"housekeeping", given the program's importance staff felt it necessary to refer to the
Commission for concurrence.
DISCUSSION
What the Commission Recommended
The Commission recommended a new table be added to the Housing Element, Table 2A, which
would provide incentives for the construction of more compact, higher-density housing. For
developments of 20 or more dwellings, the inclusionary requirements would be reduced or
eliminated for compact housing, and equal to or increased beyond the base requirement for
larger, low-density housing. Residential developments with an average floor area of up to 1,200
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Attachment 2
Housing Element Implementation,GPI 160-04
Page 2
square feet required only one affordable unit, regardless of density. The inclusionary requirement
for 5-19 dwellings was not subject to Table 2A. The Commission also shifted more
responsibility to commercial development to provide affordable housing by increasing the in-lieu
fees from two percent to five percent, and increased the in-lieu fee for residential developments
in expansion areas from ten to fifteen percent to more closely reflect actual costs of building
affordable housing. These requirements are shown in Recommended Table 2 and 2A below.
Recommended TABLE 2
Indusionag Housing R uirement
Type of Developmiw Project
Residential,5-19 Dwellings Residential,20 or more Commercial
Dwemm
Build 3%low or 5%moderate cost Adjust base requirement Build 2 ADUs per acre,but not less than I ADU
Affordable Dwelling Units(ADUs2),but per Table 2A per project;
Or
a not less than 1 ADU per project:
U`o or pay in-lieu fee equal to 596 of building
pay in-lieu fee equal to 5%of building valuation.
valuation.3
°o Build 5%low-and 10%modcrate-cost Build 2 ADUs per acre,but not less than I ADU
ADUs,but not less than I ADU per per project:
project, or
W e- or Adjust base requirement pay in-lieu fee equal to 5%of building
5 pay in-lieu fee equal to 15%of building per Table 2A valuation.
valuation.
- in-lieu fee based on the above formula.or dedicate real property.
Developer may build affordable housing in the requited amounts.pay .
'Affordable Dwelling Units must meet City affordability criteria listed in Goal 1.22.
3"Building Value"shan mean the total value of all construction wort for which a permit would be issued as determined by the Chief Building
Official using the Uniform Building Code.
Recommended TABLE 2A
Projed Dens4 inclusionary Housing Requirement
(1ensiU, Adjustment Factor=
UnitWNet Acre)r Average Unit Size(sq.M)
Upto1,209 1,201-1,500 1301-2000 2,001-2,500 2,501-3,000 >3.000
36 or more 0 0 .75 1 1.25 1.5
24-35.99 0 0 .75 1.25 1.25 1.5
12-23.99 0 .25 1 1.25 1.5 1.75
7-11.99 0 .5 1 1.5 1.5 1.75
A 0 .5 i 35 11.5 11.75 2
Including allowed density bonus,where applicable.
=Multiply the total base lnclasionary Housing Requirement(either housing or in-lieu percentage) by the adjustment factor to determine
requirement.
What Council Approved
Council supported the Commission's recommendation and made some changes to Table 2A.
The finally Adopted Table 2 and 2A is shown below. As adopted, Table 2A applies to all non-
exempt residential developments of five or more dwellings. 1,100 square feet is the maximum
average floor area at which Table 2A doesn't apply. Council also slightly modified the Table 2A
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Attachment 2
Housing Element Implementation, GPI 160-04
Page 3
multipliers, but overall, the Commission's "affordability by design" program remained intact.
The Housing Element charts an ambitious course to expanded housing opportunities for all
income groups in San Luis Obispo, and its effectiveness depends, in part, on timely program
implementation. One of the Element's new programs calls for amending the Inclusionary
Housing Requirement to encourage housing that is "affordable by design."
Adopted TABLE 2
Inclusionary Housing Requirement
Type of Development Project'
Residential-Adjust base requirement per Table 2A Commercial
9 Build 3%low or 5%moderate income Affordable Dwelling Units Build 2 ADUs per acre,but not less than I ADU
E (ADUsr),but not less than l ADU per project; per project;
o,3 or
tj pay in-lieu fee equal to 5%of building valuation.` pay in-lieu fee equal to 5%of building
e valuation.
C `
er
7
Build 5%low-and 10%moderate income ADUs,but not less than 1 Build 2 ADUs per acre,but not less than 1 ADU
ADU per project; per project;
aor or
Q pay in-lieu fee equal to 15%of building valuation. pay in-lieu fee equal to 5%of building
valuation.
C
Residential developments of four or less dwellings,and commercial developments of 2,500 gross square feet of floor area or less:are exempt
from these requirements.
2Affordable Dwelling Units must meet City affordability criteria listed in Goal 2.1.
;Developer may build affordable housing in the required amounts,pay in-lieu fee based on the above formula,or dedicate real property,or a
combination of these,to City approval.
`"Building valuation" shall mean the total value of all construction work for which a permit would be issued, as determined by the Chief
Building Official using the Uniform Building Code.
Adopted TABLE 2A
Project Density Inclusionary Housing Requirement
(Density Adjustment Factor'
Units/Net Acre)' Average Unit Size(sq.ft.)
Up to 1,100 11101-1,500 1,501-2000 2,001-2,500 2501-3,000 >3,000
36 or more 0 0 .75 1 1.25 1.5
24-35.99 0 0 .75 l 1.25 1.5
12-23.99 0 .25 1 1.25 1.5 1.75
7-11.99 0 .5 1 1.25 15 1.75
<7 1 0 .5 1.25 11.5 1.75 2
Including allowed density bonus,where applicable.
'Multiply the total base Inclusionary Housing Requirement (either housing or in-lieu percentage) by the adjustment factor to determine
requirement. At least one enforeeably-restricted affordable unit is required per development of five or more units.
Ordinance Refinements
The proposed amendments include refinements to the Inclusionary Housing Requirement that
were not apparent when the Housing Element was adopted. Council emphasized in the action to
approve Program 2.3.1 that all non-exempt development projects should be responsible for
building (or paying an equivalent in-lieu fee for) at least one enforceably-restricted, affordable
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Attachment 2
Housing Element Implementation, GPI 160-04
Page 4
dwelling. To implement the program, it became necessary to clarify in the ordinance procedures
for developers who chose to pay in-lieu fees instead of building affordable housing since for
some "compact" developments, the Table 2A multiplier would be "0", resulting in no in-lieu fee.
The ordinance sets a minimum adjustment factor of 0.25 (resulting in a minimum in-lieu fee of
1.25% in-city or 3.75% for residential development in expansion areas). The Inclusionary
Housing Requirement for mixed-use developments of five or more dwellings is based on the
commercial requirement, as adjusted by Table 2A. The ordinance also specifies that for custom-
lot residential subdivisions in which the construction value of the homes is not known, the
Director estimates the construction value based on lot size, maximum lot coverage, and
Construction Valuation Data issued by the Building Official based on locally-adjusted, statewide
building costs. Upon ordinance adoption, footnotes will be added to Table 2 and 2A to note
these requirements.
RECODMENDATION
Recommend Council approved the amendments to SLOW Ch. 17.91, modifying the
Inclusionary Housing Requirement, as shown in Attachment 1.
Attachments:
1. Legislative Draft Ordinance.
2. Excerpt, Adopted Housing Element, Program 2.3.1
JAMOOKUiousing Elemt Imp1ementatlon\PCsmffreport19-22-04.doc
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Attachment 2
2.3 Programs
2.3.1 Amend the Inclusionary Housing Regulations to require that new residential
subdivisions and residential development projects meet the inclusionary
requirement by: 1) building the required affordable housing on- or off-site, 2)
dedicating real property, or 3) rehabilitating units with guarantees the units
remain affordable, pursuant to the Affordable Housing Standards, as shown in
Tables 2 and 2A, and as further described in the Inclusionary Housing
Ordinance.
Table 2
Inclusionary Housing Requirement
Type of Development Project'
Residential-Adjust base requirement per Table 2A Commercial
Build 3%low or 5%moderate income Affordable Build 2 ADUs per acre,but not less
a Dwelling Units(ADUs 2),but not less than 1 ADU per than 1 ADU per project;
project;
oto Or
pay in-lieu fee equal to 5%of building valuation.4
pay in-lieu fee equal to 5%of building
valuation.
C
SBuild 5%low-and 10%moderate income ADUs,but Build 2 ADUs per acre,but not less
not less than 1 ADU per project; than 1 ADU per project;
e
° or or
°' pay in-lieu fee equal to 15%of building valuation. pay in-lieu fee equal to 5%of building
a
valuation.
Residential developments of four or less dwellings, and commercial developments of 2,500 gross square
feet of floor area or less are exempt from these.requirements.
2Affordable Dwelling Units must meet City affordability criteria listed in Goal 2.1.
3Developer may build affordable housing in the required amounts, pay in-lieu fee based on the above
formula,or dedicate real property,or a combination of these,to City approval.
`"Building valuation" shall mean the total value of all construction work for which a permit would be
issued,as determined by the Chief Building Official using the Uniform Building Code.
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Attachment 2
TABLE 2A
Project Inclusionary Housing Requirement
Density Adjustment Factor'
(Density Average Unit Size (sq. ft.)
Units/Net
Acre)' Up to 1,101-1,500 1,501-2000 2,001-2,500 2,501- >3,000
1,100 3,000
36 or more 0 0 .75 1 1.25 1.5
24-35.99 0 0 .75 1 1.25 1.5
12-23.99 0 .25 1 1.25 1.5 1.75
7-11.99 0 .5 1 1.25 1.5 1.75
<7 0 .5 1.25 1.5 1.75 2
Including allowed density bonus,where applicable.
'Multiply the total base Inclusionary Housing Requirement (either housing or in-lieu percentage) by the
adjustment factor to determine requirement. At least one enforceably-restricted affordable unit is required
per development of five or more units.
_ Attachment 3
Housing Element Implementation,October 5,2004 Council Meeting
Legislative Draft
ORDINANCE NO. (2004 Series)
AN ORDINANCE AMENDING SLOW CH. 17.9 1,MODIFYING THE INCLUSIONARY
HOUSING REQUIREMENT
Proposed changes: (new text in Italics; deleted twin stFikeeet)
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.
1791.070 Affordable Housing fund.
1791.080 Real Property Dedication.
1791.090 Incentives.
17.91.100 Project Application.
1791.110 Conditions of development approval.
1791.120 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.
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.
17.91.020 Defmitions.
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 11� ham,--17.20,
SLON4G).
Attachment 3
Housing Element implementation,October 5,2004 Council Meeting
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 non-residential 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 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" - A land area proposed for annexation to the City or annexed after the
adoption date of this ordinance.
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.
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 non-residential uses on the same lot, pursuant to city Zoning Regulations.
R. Q"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. (Ord. 1035 0 1 (part), 1985)
S. R."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
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Attachment 3
Housing Element Implementation,October 5,2004 Council Meeting
housing.
U. T."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 50 percent of median income
within the county.
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 2,500 square feet of gross
floor area or larger.
B. The following types of development projects are excluded:
1. Residential developments of 4 units or less;
2. New commercial developments of less than 2,500 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 2,500 square feet;
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 non-commercial or
non-residential in nature, which provide educational, social or related services to the
community and which are proposed by public agencies, non-profit 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 this ordinance and which
continue to have unexpired permits.
17.91.040 General Standards.
A. Methods of meeting requirements. New development projects shall satisfy the inclusionary
housing requirement, as specified in Table 1 Tables 2 and 2A of the General Plan Housing
Element, which provide that all non-exempt 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 requirement, 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; Table 1, 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 ("0"), the minimum
adjustment factor shall be 0.25 (resulting in a minimum in-lieu fee of 1.25% of the
building valuation for in-city development projects and commercial developments in
expansion areas, and 3.75% of building valuation for residential developments in
expansion areas); or
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Housing Element Implementation,October 5,2004 Council Meeting
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.
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.
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 tutu size. To determine the
adjustment./actor 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.
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.rite, as described in 17.91.050.B.
For mixed-use development projects with less than five dwellings, the base inclusionary housing
requirement for the commercial use shall apply.
ED. 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.
EE. Affordable housing agreement. To meet the requirement, the developer may enter into an
agreement with the City, the City's Housing Authority, non-profit 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.
17.91.060 In-lieu Housing Fee.
A. Payment of in-lieu fee. Developer may, at his discretion, choose to pay a fee to the City or
dedicate real property in lieu of constructing affordable dwellings to meet this requirement.
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 Table I 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
Afii2Flt 3
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Housing Element Implementation, October 5,2004 Council Meeting
City development standards. Developer shall use the estimated average construction valuation
to detenni.ne 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.
17.91.070 Affordable Housing Fund. 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 Director.
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
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; or as otherwise provided by written agreement between the developer
and the City.
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 (SLOMC Chapter 17.90), as
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Housing Element Implementation,October 5,2004 Council Meeting
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 Ch. 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.
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, term of affordability,
preliminary calculation of in-lieu fees, or offer of land dedication;
2. How the proposal meets General Plan policies and inclusionary housing requirement;
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
5. Other information which the Director determines necessary to adequately evaluate the
proposal.
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 requirement.
17.19.110 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;
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Housing Element Implementation,October 5,2004 Council Meeting
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. Other terms or conditions requested by City.
B. 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.
C. 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.
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.
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 City, its housing authority or other
housing provider to comply with the Affordable Housing Standards.
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) to enter into an affordable housing agreement
to ensure that affordability is maintained for a period of not less than 30 years, or as otherwise
required by State law. Affordable rental units shall be subject to a 30 year term of affordability.
17.91.150 Shared Equity Purchase Program. 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:
(a) 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,
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Housing Element Implementation,October 5,2004 Council Meeting
(b) the amount of subsidy provided by the City to the homeowner to purchase the
property, divided by the property's market value.
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.
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 (5) years of the initial close of escrow. If 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.
17.91.160 Management and Monitoring. Inclusionary rental units shall be managed and
operated by the property owner, or the owner's agent, for the term of the Affordable Housing
Agreement. Sufficient documentation shall be submitted to ensure compliance with this chapter,
to the satisfaction of the Director.
17.91.170 Enforcement and Appeals.
A. Enforcement. No final subdivision map shall be approved, nor building permit issued, nor
shall any other development entitlement be granted for a development project which does not
meet these requirements. No inclusionary unit shall be rented or sold except in accordance with
these requirements and the affordable housing standards.
B. Appeals. The Director shall administer and interpret these requirements, subject to applicable
codes and City procedures. Decisions of the Director are appealable, subject to the zoning
regulations appeal provisions. (SLOMC Ch.17.66).
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.
Attachment 4
Housing Element Implementation,October 5,2004 Council Meeting
Legislative Draft
ORDINANCE NO. (2004 Series)
AN ORDINANCE AMENDING SLO MUNICIPAL CODE CH.. 17.88,EXEMPTING
DOWNTOWN DEVELOPMENT AND AFFORDABLE MODERATE INCOME HOUSING
FROM THE RESIDENTIAL GROWTH MANAGEMENT REGULATIONS
Municipal Code amendment
Proposed changes: (new text in /talics; deleted text in eaw)
Chapter 17.88
RESIDENTIAL GROWTH MANAGEMENT REGULATIONS
Sections:
17.88.010 Purpose and justification.
17.88.020 Allocations.
17.88.030 Adjustments to allocations requested by property owners.
17.88.040 Periodic city council review and consideration of revisions.
17.88.010 Purpose and justification.
A. The regulations codified in this chapter are intended to assure that the rate of population
growth will not exceed the city's ability to assimilate new residents and to provide municipal
services, consistent with the maximum growth rates established in the general plan. Also, these
regulations are to assure that those projects which best meet the city's objectives for affordable
housing, infill development, open space protection, and provision of public facilities will be
allowed to proceed with minimum delay.
B. San Luis Obispo is a charter city, empowered to make and enforce all laws concerning
municipal affairs, subject only to the limitations of the city Charter and the Constitution and laws
of the state. Regulation of the rate of residential development is a reasonable extension of
municipal authority to plan overall development, in furtherance of the public health, safety and
general welfare.
C. According to the general plan land use element, the city should achieve a maximum annual
average population growth rate of one percent. The reserve of developable land within the city
and the capacity of proposed annexations could sustain growth rates which would exceed the
objectives of the general plan.
D. General plan policies and the annexation-area phasing schedule required by these regulations
reduce the likelihood that any property within the city might be deprived of reasonable
development entitlements through the operation of these regulations.
E. The growth rate policies of the general plan reflect the city's responsibility to accommodate a
reasonable share of expected state and regional growth.
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Housing Element Implementation,October 5,2004 Council Meeting
F. To avoid further imbalance between the availability of jobs and of housing within the city, the
general plan also manages expansion of growth-inducing activities. The burdens of growth
management are not being placed solely on the residential sector, since it largely responds to
demands caused by other sectors.
G. Considering the likely levels of housing demand and construction throughout the housing
market area, nearly coinciding with San Luis Obispo County, these regulations are not expected
to affect the overall balance between housing supply and demand in the market area. These
regulations will not impede and may help meet the needs of very-low, low, and moderate-income
households. (Ord. 1359 § 3 (part), 1999)
17.88.020 Allocations.
A. The city council shall, by resolution, adopt a phasing schedule that allocates potential
residential construction among annexation areas, consistent with the general plan and with these
regulations.
B. The limitations on residential development established by these regulations apply to new
residential construction within certain areas that have been annexed to the city or that will be
annexed to the city. Development in such areas is subject to development plans or specific plans,
which shall contain provisions consistent with these regulations and with the phasing schedule.
C. For locations which the phasing schedule shows as "allowed," allocations shall be
implemented by the timing of issuance of building permits.
D. These regulations shall not limit the issuance of building permits for locations which the
phasing schedule shows as having an "assumed"rate of construction.
E. Dwellings affordable and enforceably-restricted to residents with very-low, of low or
moderate incomes, as defined in the city's general plan housing element, and new dwellings in
the Downtown Core (C-D zone as shown in the most official Zoning Map) shall be exempt from
these regulations. Enforceably-restricted shall mean dwellings that are subject to deed
restrictions, development agreements, or other legal mechanisms acceptable to the City to
ensure long-term affordability, consistent with city Affordable Housing Standards. In expansion
areas, the overall number of units built must conform to the city-approved phasing plan.
F. It shall not be necessary to have dwellings allocated for a particular time interval or location to
process and approve applications for general plan amendment, zone change or other zoning
approval, subdivision, or architectural review. (Ord. 1359 § 3 (part), 1999)
17.88.030 Adjustments to allocations requested by property owners.
Upon verified written request by each owner for whom the timing of property development
would be affected by a proposed change (either hastened or delayed), the community
development director may adjust the allocation of dwellings among expansion areas shown in the
3-t4i
C Attachment 4
Housing Element Implementation,October 5,2004 Council Meeting
phasing schedule, so long as the total number of dwellings for all expansion areas within an
interval does not change. The director shall approve such requests upon determining that there
would be no substantial difference in provision of affordable housing, necessary public facilities,
or open space protection as a result of the adjustment. (Ord. 1359 § 3 (part), 1999)
17.88.040 Periodic city council review and consideration of revisions.
A. The community development department shall provide status updates to the city council
concerning implementation of these regulations, coordinated with the annual report on the
general plan. The status update will describe actual construction levels and any adjustments to
allocations that have been approved by the director, and may include recommendations for
revisions.
B. Following consideration of the annual report, or at such other times as it deems appropriate,
the city council may revise the phasing schedule. Such revisions shall be consistent with the
general plan. City council approval shall be required to do any of the following:
1. Change the total number of dwellings that may be permitted within an interval;
2. Change the number of dwellings assumed for demolition or infill development or small
annexations, or allocated in total to expansion areas;
3. Reduce the number of dwellings previously allocated to a certain expansion area, when
there is not verified written approval by each affected owner;
4. Shift the years covered by intervals.
C. Before approving a revision, the city council must conduct a public hearing. Notice of the
hearing shall be provided at least ten but not more than thirty days prior to the hearing, by
publication in a newspaper of general circulation in the city and by first-class mail to each owner
of property potentially affected by a delay in building permit issuance as compared with the
schedule in effect at that time. Owner information may be obtained from the county property
assessment role, or from other sources which the community development director determines
will provide complete and current information. Failure of an owner or owners to receive notice
shall not invalidate any duly adopted revision.
D. For in-city development and for minor annexations, the annual report shall compare the actual
number of permitted dwellings with the assumed rate of permit issuance. When the previously
assumed number of in-city and small-annexation permitted dwellings exceeds those actually
permitted, and expected to be permitted based on current trends and project processing, the city
council shall consider revising the phasing schedule to make the difference available to the
current phases of large annexations.
E. If an annexation area does not fully use its allocation within the previously indicated interval,
the city council shall consider assigning the unused potential to that same area in future intervals.
It is the intent of this part to encourage completion of neighborhoods that have been started;
provided, that doing so does not cause the allowed citywide growth rate to be exceeded; and
further provided, that the allocations previously assigned to other annexation areas will not be
reduced without the approval of the affected landowners. (Ord. 1359 § 3 (part), 1999)
3 'o -
Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
Legislative Draft
ORDINANCE NO. (2004 Series)
AN ORDINANCE AMENDING SLOMC CH. 17.86 TO ESTABLISH A DOWNTOWN
HOUSING CONSERVATION PROGRAM
Proposed changes: (new text in Italics; deleted text in s*�;;«)
Chapter 17.86
DOWNTOWN HOUSING CONSERVATION REGULATIONS
Sections:
17.86.010 Purpose and intent.
17.86.020 Area of application.
17.86.030 Definitions.
17.86.0430 Land uses affected.
17.86.050 No Net Housing Loss
17.86.0640 Exceptions. no.....:. r-equired7
17.86.0760 Findings required.
17.86.0870 Conditions of approval.
17.86.0960 Public hearing-Notification.
17.86.091 Interpretation and Conditions.
17.86.092 Severability.
17.86.010 Purpose and intent.
It is the desire and intent of the city to preserve housing in the central business district and
surrounding Downtown Planning Area. It is also the intent of the city to preserve housing that is
3-23
Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
Legislative Draft
ORDINANCE NO. (2004 Series)
AN ORDINANCE AMENDING SLOMC CH. 17.86 TO ESTABLISH A DOWNTOWN
HOUSING CONSERVATION PROGRAM
Proposed changes: (new text in Italics; deleted text in strikeeat)
Chapter 17.86
DOWNTOWN HOUSING CONSERVATION REGULATIONSG-i���c
Sections:
17.86.010 Purpose and intent.
17.86.020 Area of application.
17.86.030 Definitions.
17.86.0430 Land uses affected.
17.86.050 No Net Housing Loss
17.86.0640 Exceptions. Pef:Fnk Fega+Fed
17.86.0760 Findings required.
17.86.08-70 Conditions of approval.
17.86.0960 Public hearing -Notification.
17.86.091 Interpretation and Conditions.
17.86.092 Severability.
17.86.010 Purpose and intent.
It is the desire and intent of the city to preserve housing in the central business district and
surrounding Downtown Planning Area. It is also the intent of the city to preserve housing that is
Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
affordable to very-low, low- and moderate-income households and to encourage mixed
residential and commercial office uses, where appropriate, to implement General Plan goals.
that this b
The provisions of this chapter are intended to achieve these goals by regulating the conversion of
downtown housing to nonresidential uses. (Prior code § 9900)
17.86.020 Area of application.
Provisions of this chapter shall apply to eeft6., t5'PeS Of FeSi ential iafid Uses WithiR ^^^'"^" ^£
the downtown planning area shown on Figure 1.
17.86.030 Definitions. Where not defined herein, terms shall be as defined in Title 17 of the
Municipal Code.
A. Commercial Core. That central downtown area of the City zoned "C-D" (Downtown
Commercial) in the most recently adopted Zoning Map.
B. Conversion. A change in the primary use of at least 51 percent of the floor area of a legally
permitted dwelling or building from residential to non-residential use, or physical change in
design of 51 percent of an individual dwelling's or building's floor area to accommodate non-
residential uses.
C. Development Project. Any public or private action for which a City construction permit or
planning approval is required, including architectural review, use permit, variance,
subdivision or other approval.
D. Downtown Planning Area. The central part of the City, generally bounded by Highway 101,
the railroad, and High Street, including the commercial core and surrounding neighborhoods, as
shown in Figure 1.
E. Net Housing Loss. Where the number of residential units removed through demolition,
remodeling or conversion to non-residential uses exceeds the number of dwellings added
through new construction, additions, remodeling, or relocation within the Downtown Core, or
in the area outside the Downtown Core but within the Downtown Planning area. The
cumulative number of dwellings added and residential units removed within each of the above
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Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
areas shall be determined separately, and shall be based on the number of dwellings existing
on March 30, 2004, as determined by the Director.
F. Replacement Unit. A dwelling which is built, moved or remodeled to replace a residential
unit lost through demolition or remodeling or conversion to non-residential use.
G. Residential Use. A land use which includes "dwellings," "boarding/rooming house,"
"dormitory, " "residential care facilities," "caretakers' quarters," "hotel/motel," "hostel,"
"bed and breakfast inn," 'fratentity(or sorority) house," or "live-work unit, " as defined by the
Zoning Regulations and listed in Table 9, Chapter 17.22 of the Municipal Code.
H. Residential Unit. A structure on a permanent foundation with provisions for sleeping and
sanitation, and with permanent connections to utilities. A residential unit may or may not
contain provisions for cooking, and may be single, detached or in a multiple, attached
configuration.
1. Subarea. Either the Downtown Core or the area outside the Downtown Core but within the
Downtown Planning Area, as shown on Figure 1.
17.86.0430 Land uses affected.
Provisions of this chapter shall apply to properties land—wies that contain one €ems or more
residential dwelling units and to all group housing, including "boarding or rooming houses" or
"dormitories," "residential care facilities" or "caretakers' quarters", "hotels and motels" or
"hostel" or "bed and breakfast inn", 'fraternity(or sorority) house" hatels, ;,etels, of
nes which have one €ew or more individual rooms for rent,: and
to "live-work units", as defined by the Zoning Regulations and listed in Table 9, Chapter 17.22
of the Municipal Code.
17.86.050 No net housing loss.
Development projects within the downtown planning area shall not result in a net housing loss.
If the Director determines that a development project would result in a net housing loss, the
developer shall replace residential units to be removed, whether the units to be removed are
occupied or not. Residential units shall be replaced on a one—for- one basis, and shall be built
concurrently with the development project. Replacement units may be of any size, type, or
tenure, consistent with Zoning Regulations and as approved by the Architectural Review
Commission or the Director. Replacement units shall be located within the same subarea as the
units removed, but need not be located on the same site as previously existed. Development
projects shall meet the following standards, to the approval of the Director:
A. Vacation of Unit. Each tenant shall have the right to remain not less than sixty days from the
date of city eeuneil approval of a development project exception . The Director
Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
or council may grant an extension to this right to remain for a period of time not to exceed an
additional thirty days.
B. No Increase in Rent. A tenant's rent shall not be increased during the period provided in
subsection A of this section. (Prior code § 9906)
C. Affordability of Units. The development project shall include dwelling units affordable to
low and moderate income persons, at refits or sales prices that meet the City's Affordable
Housing Standards. The number of dwellings to be rented or sold at affordable levels shall
equal the maximum number of affordable dwellings that existed within the 24-month period
immediately prior to the application for the conversion permit, but in no case less than that
required under the Inclusionary Housing Affordable Housing Requirement in the general plan
housing element.
D. Tenant Relocation Assistance. For very-low, low-, or moderate-income residents displaced
by the development project, the developer shall provide relocation assistance, to the approval of
the Director. Such assistance may include, but is not limited to: giving tenants the first right of
refusal to purchase or rent affordable replacement units, reimbursement of moving costs, and/or
providing rental
17.86.0640 Exceptions. PeFfnit r-eqUiFed-.
The council may grant exceptions to the provisions of this chapter, subject to the findings listed
in 17.86.070. In granting an exception, council may establish conditions to ensure the intent of
general plan policies is met, as described in 17.86.080. The application requirements and
procedures shall be as required for a planning commission use permit as provided in SLOW
Ch. 17.58.
17.86.0760 Findings required.
In ewe To grant an exception L FmA, the council must make each of the following
findings: And that approval of the peRnit is eansistefit with the adepte.d Safi I.HiS QNSPO e e ..1
n
(Prior code § 9905)
Findings:
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Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
A. Approval of an exception is consistent with the San Luis Obispo general plan and
specifically, with Housing Element policies regarding no net housing loss, affordable
housing, and mixed uses in the Downtown Planning Area.
B. Granting the exception will not adversely affect affordable housing opportunities for
very-low, low, or moderate income persons, either individually or cumulatively.
C. The proposed project will not result in a significant loss of housing when compared with
the total number of existing dwellings in the Downtown Core or Downtown Planning
Area outside the Core.
D. Granting the exception will further the achievement of other community goals, such as
removing substandard or dangerous housing, improving physical accessibility,
rehabilitating a historic structure, or Downtown beautification.
E. It is physically infeasible to rehabilitate or relocate the housing to be removed or
converted.
F. No public purpose would be served by the strict enforcement of the no net loss policy due
to mitigating factors (include specific mitigating factors).
17.86.0870 Conditions of approval.
The council may establish conditions of approval which provide for the general health, safety and
welfare of residents terms displaced by the proposed development, and to achieve the intent of
general plan housing conservation policies and mitigate the loss of housing
17.86.0950 Public hearing- Notification.
Prior to acting on an exception request applieations, the council shall hold a public hearing, and
notice of the time, date, place and purpose of the hearing ivNeh.shall be given to the residents
tis of the proposed conversion and to owners and residents within 300 feet of the affected
posted the property. Said property shall be posted, and an advertisement shall be published
in a newspaper of general circulation, at least ten days before the public hearing # . (Prior
code § 9904)
3 . 2�
Ci Attachment 5
Housing Element Implementation,October 5,2004 Council Meeting
Figure 1
Downtown Planning Area
® Railroad
®®® ® right-of-way_
Highway 101 �®
Planning Area 9
bounda Downtown Core
Street
thin® �
0
Jh/U6ousingclemrntiaplementation/downtownhousingconvusionamendments7-21-04
Attachment 6
Housing_Element Implementation,October 5,2004 Council Meeting
Legislative Draft
ORDINANCE NO. (2004 Series)
AN ORDINANCE AMENDING SLO MUNICIPAL CODE CH. 2.48 EXEMPTING SMALL
RESIDENTIAL DEVELOPMENT PROJECTS FROM ARCHITECTURAL REVIEW
COMMISSION REVIEW
2.48.50 Projects subiect to architectural review.
Proposed changes: (new text in Italics)
A. Architectural review shall be required for all structures and physical improvements except
individual built single-family dwellings and small residential development projects. The
exception for the individual single-family dwellings shall not apply: (1) when architectural
review is required as a condition of a subdivision, use permit or other discretionary
entitlement; (2) when a developer proposes to construct three or more units, and these units
do not constitute a "small residential developinent projects" as defined herein; (3) when the
director determines the site is sensitive as set forth in the procedures document; "sensitive
sites" shall include, but are not limited to, open space zoning areas designated by resolution
of the planning commission, architectural review commission or council; (4) where the scale
or character of the proposed dwelling contrasts significantly with adjacent or neighboring
structures; and (5) where any required parking space that is covered is converted to another
use and replacement parking is proposed. "Small residential development projects" are
projects consisting of the construction, rehabilitation or remodel of less than five dwellings,
where the gross floor area of individual dwellings does not exceed 1200 square feet. The
Director may require minor or incidental architectural review where necessary to meet the
intent of the city's design guidelines.
B. Architectural review shall be required for all projects, including individual-built single family
dwellings and small residential development projects, located in or along any creek or
waterway as defined by the city's floodplain management policy. Approval shall be granted
if a finding can be made that a project complies with the uniform storm design criteria for
waterways, all other applicable policies and standards for floodplain management, and
otherwise satisfies relevant architectural criteria. Projects involving any building or bridge
proposed to be constructed in or over any portion of any of the four major creeks or
waterways, as defined by said policy, or any major creek modification project shall be
referred to council for review and specific directional guidance prior to any architectural
review.
3 - ��
J - -_
Attachment 7
Housing Element Implementation,October 5,2004 Council Meeting ✓
Legislative Draft
ORDINANCE NO. (2004 Series)
AN ORDINANCE AMENDING SLOW CH. 17.22 TO PROTECT THE CONTINUANCE OF
LEGAL, CONFORMING NON-RESIDENTIAL USES ADJACENT TO OR NEARBY
PROPOSED NEW HOUSING DEVELOPMENTS
Municipal Code amendment
Proposed changes: (new text in Italics, Section H only; deleted text-none proposed)
Chapter 17.22: USE REGULATION
Section:
17.22.010 Uses allowed by zones.
(Add new paragraph section H.,as follows:)
H. Right to Continue Existing Non-Residential Uses. Legal, conforming non-residential uses
shall have the right to continue operation, subject to compliance with applicable Zoning
Regulations when established prior to the development of housing on adjacent or nearby sites.
City approvals of housing developments adjacent to or within 300 feet of such uses shall include
a condition requiring constructive notice to new home buyers and/or renters of possible
characteristics associated with non-residential uses, such as noise, odors, vibration, and
lighting.
Attachment 8
RESOLUTION NO. (2004 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AMENDING THE COMMUNITY DESIGN GUIDELINES TO CLARIFY
ARCHITECTURAL REVIEW REQUIREMENTS FOR SMALL RESIDENTIAL
DEVELOPMENT PROJECTS
WHEREAS, on March 30, 2004, the City Council adopted an updated General Plan
Housing Element; and
WHEREAS, The Housing Element charts an ambitious course to expand housing
opportunities for all income groups in San Luis Obispo and its effectiveness depends, in part, on
timely program implementation; and
WHEREAS, Housing Element Program 6.3.14 calls for the City to exempt small
residential projects from Architectural Review Commission review to facilitate the production of
housing affordable to very-low, low and moderate income persons; and
WHEREAS, The Community Design Guidelines, that describe architectural review
requirements in San Luis Obispo, must be amended to implement this new program.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Community Design Guidelines are hereby amended, as further
described in Exhibit A.
SECTION 2. The City Council has determined that this action is ministerial, as it
consists of policy implementation and does not constitute a "project" under Section 21065 of the
California Environmental Quality Act (CEQA) Guidelines. Consequently, this action is exempt
under CEQA Section 15268 and is not subject to environmental review requirements.
Upon motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of ,2004.
R 3 __�a
Attachment 8
Resolution No. (2004 Series)
Page 2
Mayor David F. Romero
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
Jona an well
City Attorney
Attachment: Exhibit A—Community Design Guidelines Amendments
WUhousingelemendMlemenmuon/CARResoluriouARC 10-5-04
3-33
Attachment 8
Housing Element Implementation,October 5,2004 Council Meeting
EXHIBIT A
Community Design Guidelines Amendment (Legislative Draft)
Revise Chapter 1.2—"Applicability of the Design Review Process"to read as follows:
(new text in Italics; deleted text in strikeeat)
When is Design Review Required?
Design review is required for all new development projects, except single family homes and small
residential development projects, as described below. and- rvemedeled multi family residential,
eemmereial, and ind-u-stii-al development . Single family homes are required to have
design review in the specific instances listed below.
Some changes to existing buildings and site development are considered "aesthetically
insignificant" and can be reviewed by a planner at the counter. Other minor projects can be
handled by a streamlined application process known as minor or incidental review.
A. Single Family homes. Plans for a single family home need design review when:
1. Required for a parcel as a condition of approval of a subdivision, use permit, or other
discretionary entitlement;
2. A single applicant proposes to build three or more homes in the same area which do
not meet the definition of a "small residential development project
3. The location is a"sensitive site" (see subsection E D below);
4. The scale or character of the proposed dwelling contrasts significantly with adjacent
or neighboring structures;
5. A required covered parking space is converted to another use and replacement
parking is proposed.
B. Small Residential Development Projects. The construction, rehabilitation, or remodeling
of up to four dwellings is exempt from Design review, provided that the gross floor area
of individual dwellings does not exceed 1200 square feet. The Community Development
director may require minor or incidental architectural review where necessary to
achieve the intent of these guidelines.
BC. Aesthetically insignificant projects. The Community Development Director may
determine that a new small structure, or a change or addition to an existing building or
other site feature, will not conflict with the objectives of design review due to its size,
location, form, materials, or colors. This determination will be noted in the building
permit file, if one exists, or in the site address file.
ED. Minor or incidental projects. The Community Development Director may determine
that a project such as sign, building addition or remodel, is minor or incidental to a
3-34
Attachment 8
Housing Element Implementation,October 5,2004 Council Meeting
larger, previously approved project. Plans for projects which an applicant believes are
minor or incidental are submitted for staff review, along with a design review
application and fee. The Director will decide within about 10 days if the project is
required to be reviewed by the Architectural Review Commission (ARC). The
Director's action may be appealed to the ARC.
DE. Sensitive sites. The Community Development Director, Planning Commission or City
Council may require design review on certain "sensitive sites." A project site is
considered sensitive when:
1. It has been designated through an "S", Special Consideration, overlay zone, use
permit, or a condition of a tentative parcel or subdivision map as a site with special
development concerns;
2. It is located adjacent to Laguna Lake, a creek, or a designated sensitive hillside;
3. It is a property included on the City's Inventory of Historic Resources, or is near a
historic resource where the development might adversely impact the historic
resource; or
The Director may ask the developer of a sensitive site to use a multidisciplinary design team,
including architects, engineers and landscape architects, to ensure appropriate site
development.
EF. Demolitions and moved buildings. A request to demolish a structure that is listed on the
Inventory of Historical Resources may require review by the ARC. The ARC also
reviews permits to move structures from one site to another within the City. See
Appendix A to these guidelines.
FG. Other projects subject to ARC review. Sometimes a development project (for example,
a subdivision) may need several different approvals by both the ARC and Planning
Commission. The Director may refer certain projects to the ARC prior to Planning
Commission review, to address basic site planning issues early in the process, and
minimize conflicts in project purview between review authorities.
The City's zoning regulations enable the ARC to approve use permits for minor site development
exceptions. This streamlines the planning process by reducing application fess and the number of
hearings required for a project. The ARC also reviews City projects, including municipal parks
and public spaces,streetscape enhancements, and street furniture.
O/V
j Housing Element Implerrit. .tion-Inclusionary Housing Requirer'., Amendment
Page 4
non-residential in nature, which provide educational, social or related services to the
community and which are proposed by public agencies, non-profit 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 this ordinance and which
continue to have unexpired permits.
17.91.040 ; General Standards.
A. Methods of meeting requirements. New development projects shall satisfy the inclusionary
housing requirement, as specified in Table-1 Tables 2 and 2A of the General Plan Housing
Element, which provide that all non-exempt 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 requirement, 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; Table 1, 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 ("0"), the minimum
adjustment factor shall be 0.25 (resulting in a minimum in-lieu fee of 1.25% of the
building valuation for in-city development projects and commercial developments in
expansion areas, and 3.75% 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.
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.
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 is not included in a site's net area.
Housing Element hnplerri .tion—Inclusionary Housing Requiref Amendment
o/6
Page 8
17.91.120 Program Requirements.
Only households qualifying as very low, low or moderate income, pursuant to the Affordable
Housing Standat~ds, shall be eligible to rent, purchase or occupy inclusionary units developed or
unde in compliance with this requirement. For sale inclusionary housing units shall be owner
occupied for the term of the Affordable Housing Agreement.
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 City, its housing authority or other
housing provider to comply with the Affordable Housing Standards. ,
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) to enter into an affordable housing agreement
to ensure that affordability is maintained for the longest period allowed or required by State law,
but a-peiied e€ not less than 30 ye Affordable rental
units shall be affordable for the longest period allowed or required by State law, but not less
than subjeet to 30 years _ _ffiffbrd-R644y.
17.91.150 Shared Equity Purchase Program. 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:
(a) 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,-
(b) the amount of subsidy provided by the City to the homeowner to purchase the
property, divided by the property's market value.
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.
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 (5) years of the initial close of escrow. If 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:
Housing Element Implemt .ion—Downtown Housing Conservat ?rogram
Page 2
residential and commercial uses, where appropriate, to implement General Plan goals. that this
heasifirg . The
provisions of this chapter are intended to achieve these goals by regulating the conversion of
downtown housing to nonresidential uses. (Prior code § 9900)
17.86.020 Area of application.
Provisions of this chapter shall apply to
the downtown planning area shown on Figure 1.
17.86.030 Definitions. Where not defined herein, terms shall be as defined in Title 17 of the
Municipal Code.
A. Commercial Core. That central downtown area of the City zoned "C-D" (Downtown
Commercial) in the most recently adopted Zoning Map.
B. Conversion. A change in the primary use of at least 51 percent of the floor area of a legally
permitted dwelling or building from residential to non-residential use, or physical change in
design o)'51 percent of an individual dwelling's or building's floor area to accommodate non-
residential uses.
C. Development Project. Any public or private action for which a City construction permit or
planning approval is required, including architectural review, use permit, variance, subdivision
or other approval.
D. Downtown Planning Area. The central part of the City, generally bounded by Highway 101,
the railroad, and High Street, including the commercial core and surrounding neighborhoods, as
shown in Figure 1.
E. Net Housing Loss. Where the number of residential units removed through demolition,
remodeling or conversion to non-residential uses exceeds the number of dwellings added
through new construction, additions, remodeling, or relocation within the Downtown Core, or
in the area outside the Downtown Core but within the Downtown Planning area. The
cumulative number of dwellings added and residential units removed within each of the above
areas shall be determined separately, and shall be based on the number of dwellings existing
on March 30, 2004, as determined by the Director.
F. Replacement Unit. A dwelling which is built, moved or remodeled to replace a residential
unit lost through demolition or remodeling or conversion to non-residential use.
G. Residential Use. A land use which includes "dwellings," "boarding or rooming house" or
.'dormitories," "residential care facilities" or "caretakers' quarters", "hoteUmotel", "hostel"
or "bed and breakfast inn", 'fraternity(or sorority) house or "live work unit" as defined by
the Zoning Regulations and listed in Table 9, Chapter 17:22 of the Municipal Code.
H. Residential Unit. A structure on a permanent foundation with provisions for sleeping and
sanitation, and with permanent connections to utilities. A residential unit may or may not