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HomeMy WebLinkAboutItem 8.1 Gen. Plan AmendCITY OF DUBLIN PLANNING COMMISSION AGENDA STATEMENT/STAFF REPORT Meeting Date: July 1, 1991 TO: Planning Commission FROM: Planning Staff PREPARED BY: +;? Dennis Carrington, Senior Planner Robert Schubert, Contract Planner SUBJECT: General Plan Amendment to revise the Housing Element GENERAL INFORMATION: PROJECT: General Plan Amendment to revise Strategy III.E of the Housing Element APPLICANT: City of Dublin LOCATION: City-wide and extended planning area ENVIRONMENTAL REVIEW: A Negative Declaration of Environmental Impact was prepared for General Plan Amendment 91-001 including an amendment to the Housing Element, a Rental Availability Ordinance, a Planned Development Rezoning (PA 91-001), an Inclusionary Housing Ordinance and a Density Bonus Ordinance. NOTIFICATION: Public Notice of the July 1, 1991 hearing was published in the local newspaper, mailed to adjacent property owners, and posted in public buildings. ANALYSIS: Section 6.3 (Strategy III.E) of the Housing Element requires that a minimum of 10% of the units in large multi -family projects be maintained as rental units for a period of five years. A goal of the Housing Element is to achieve a balanced community with housing available for households over a range of income levels. The City is experiencing a shortage of rental housing. The City's Housing Element identifies a 5% vacancy rate as necessary to permit rental mobility whereas the City's 3.9% rental vacancy rate falls far below that goal. In addition, rental housing is ITEM NO. 8.1 COPIES TO: Agenda/General File Planning/Address File Project Planner Applicant/Owner PAGE I_ OF. q. an important source of affordable housing since down payment requirements and the high cost of new housing limit new ownership housing as an affordable housing source. Also, some households choose to rent for reasons other than affordability. Recently, the JL Construction Company requested that Strategy III.E be amended to allow developers the option of paying an in -lieu fee rather than providing rental units. In response to this request, the City Council initiated this General Plan Amendment. The proposed in -lieu rental fee is based on the subsidy of an equivalent number of three bedroom rental units for the same period of time (i.e., five years) at a Department of Housing and Urban Development (HUD) support level (i.e., 80% of the Alameda County Median Income) most consistent with market rate rents. A three bedroom unit is used as a basis for the fee because three bedroom units which, due to their size, would more adequately house large families in Dublin (as compared to one or two bedroom units). Thirty-four percent of the families on waiting lists for subsidized apartments in Dublin are waiting for three -bedroom units. The Housing Element estimates that 44 overcrowded rental units exist in Dublin. The 80% support level is the income level (of the three available HUD levels) that most closely identifies households which can afford market rate rents. This approach allows flexibility over the long term because the amount of the in -lieu rental fee will change over time as conditions change. The attached Draft General Plan Amendment (Attachment 1) requires that any new multi -family residential development involving more than ten (10) dwelling units, which is approved on or after the effective date of the Ordinance, shall be conditioned to provide ten percent (10%) of the total number of dwelling units within the development as rental units for a period of five (5) years. The obligation to provide rental units may be satisfied by the applicant's payment of in -lieu rental fees. The amount of the in -lieu rental fees would be calculated by multiplying the required number of rental units by the amount necessary to subsidize the rent of a three bedroom market rate apartment for five years for a family of five earning 80% of the Alameda County median income, where no more than 30% of income is spent on rent. For example, a family earning 80% of the median income of $46,850 would earn $37,480. If they could spend 30% of that amount on housing, they would pay $11,244 a year or $937 a month. If market rents for a three bedroom apartment are $1,100, the difference between rents and ability to pay would be $163 per month or $1,956 per year or $9,780 for five years. A 4% rental increase over that period would yield an in -lieu rental fee of $10,594 per unit. The in -lieu rental fees would be paid at the time of issuance of a building permit. The in -lieu rental fees, /hsnggpa -2- PAGE c7.2 OF d C? together with any interest earnings on such monies less reasonable administrative charges, would be used for the purpose of providing rental housing in the City through land acquisition, land or rental writedowns, construction of rental housing, rental assistance, direct contributions to a non-profit association or corporation for construction of rental housing, landbanking (including property exchanges) and any other mechanism available to the City to provide rental housing. RECOMMENDATIONS: FORMAT: 1) Open public hearing and hear Staff presentation. 2) Take testimony from Applicant and the public. 3) Question Staff, Applicant and the public. 4) Close public hearing and deliberate. 5) Give direction to Staff and continue hearing until the July 15, 1991 Planning Commission meeting. ACTION: Staff recommends that the Planning Commission give direction to Staff and continue the hearing until the July 15, 1991 Planning Commission meeting. ATTACHMENTS: Exhibit A: Resolution recommending City Council certification of the Negative Declaration for GPA 91-001, including the amendment to the Housing Element, the Rental Availability Ordinance, the Planned Development Rezoning (PA 91-001), the Inclusionary Housing Ordinance and the Density Bonus Ordinance. Exhibit B: Resolution recommending that the City Council approve the General Plan Amendment Background Attachments: Attachment 1: Negative Declaration and Initial Study /hsnggpa -3- PAGE - OF 7 RESOLUTION NO. 91 - A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING THAT THE CITY COUNCIL ADOPT A NEGATIVE DECLARATION OF ENVIRONMENTAL SIGNIFICANCE FOR GENERAL PLAN AMENDMENT 91-001, INCLUDING THE AMENDMENT TO THE HOUSING ELEMENT, THE RENTAL AVAILABILITY ORDINANCE, THE PLANNED DEVELOPMENT REZONING (PA 91-001), THE INCLUSIONARY HOUSING ORDINANCE AND THE DENSITY BONUS ORDINANCE WHEREAS, the City Council initiated a General Plan Amendment to revise Strategy III.E of the Housing Element; and WHEREAS, pursuant to the requested General Plan Amendment by JL Construction to revise Strategy III.E of the Housing Element, the City of Dublin has prepared a Rental Availability Ordinance; and WHEREAS, JL Construction Company has requested approval of a Planned Development Rezoning to amend Condition #54 of City Council Resolution No. 32-89 to allow the option of paying an in -lieu fee rather than providing rental units; and WHEREAS, pursuant to Housing Element Strategy I.B., the City of Dublin has prepared an Inclusionary Housing Ordinance; and WHEREAS, pursuant to Housing Element Strategy I.A and Government Code Section 65915, the City of Dublin has prepared a Density Bonus Ordinance; and WHEREAS, California Environmental Quality Act (CEQA), together with the State Guidelines and City environmental regulations, require that certain projects be reviewed for environmental impacts and that environmental documents be prepared; and WHEREAS, a Negative Declaration of Environmental Significance has been prepared by the Dublin Planning Department; and WHEREAS, notice of the preparation of the Negative Declaration was published in the local newspaper and posted in public buildings to provide for a 21 day public review period in accordance with the California Environmental Quality Act (CEQA) Guidelines; and WHEREAS, notice of the preparation of the Negative Declaration was posted in the County Clerk's Office for a period of 30 days in accordance with Section 21092.3 of the Public Resources Code; and WHEREAS, an Environmental Impact Report, SCH #84011002, was prepared for the Dublin General Plan and certified on February 11, 1985; which Environmental Impact Report addressed impacts of the future development of the City of Dublin; and which impacts of said development of the General Plan exceed the impacts of the requested General Plan Amendment 91-001; and EXHIBIT A PAGE4/ OF, WHEREAS, the requested General Plan Amendment 91-001 does not raise any new significant environmental issues which were not addressed in the Dublin General Plan Environmental Impact Report; and WHEREAS, the Dublin City Council did review and adopt the Environmental Impact Report on the General Plan at a public hearing on February 11, 1985; and WHEREAS, the Planning Commission at a noticed public hearing on July 1, 1991, did review the requested General Plan Amendment 91-001 relative to the previously adopted Environmental Impact Report for the Dublin General Plan and relative to the Negative Declaration prepared for the subject General Plan Amendment 91-001 and considered all comments received during the public review period; and WHEREAS, the Planning Commission did review and consider said Negative Declaration at its meeting on July 1, 1991. NOW, THEREFORE, BE IT RESOLVED THAT THE Dublin Planning Commission recommends that the City Council find that: A. General Plan Amendment 91-001 will not have any significant environmental impacts and is consistent with the information in the Environmental Impact Report prepared for the Dublin General Plan and the Negative Declaration prepared for General Plan Amendment 91-001. B. The Negative Declaration has been prepared and processed in accordance with State and local environmental laws and guidelines regulations and that it is adequate and complete. PASSED, APPROVED AND ADOPTED this 1st day of July, 1991. AYES: NOES: ABSENT: ATTEST: Planning Director Planning Commission Chairperson hsngrell 2 - PAGE OF RESOLUTION NO. 91 - A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DUBLIN RECOMMENDING CITY COUNCIL APPROVAL OF A GENERAL PLAN AMENDMENT TO REVISE THE HOUSING ELEMENT OF THE DUBLIN GENERAL PLAN WHEREAS, the City Council initiated a General Plan Amendment to revise Strategy III.E of the General Plan Housing Element; and WHEREAS, pursuant to the provisions of State Planning and Zoning law, it is the function and duty of the Planning Commission of the City of Dublin to review and recommend action on proposed amendments to the City's General Plan; and WHEREAS, notice of the Planning Commission public hearing was published in the local newspaper and posted in the City Clerk's Office and in other public buildings in accordance with California State Law; and WHEREAS, the proposed revision to the Housing Element has been reviewed in accordance with the provisions of the California Environmental Quality Act; and WHEREAS, an Environmental Impact Report, SCH #84011002, was prepared for the Dublin General Plan and certified on February 11, 1985; which Environmental Impact Report addressed impacts of the future development of the City of Dublin; and which impacts of said development of the General Plan exceed the impacts of General Plan Amendment 91-01 including the revised Housing Element; and WHEREAS, the General Plan Amendment to revise the Housing Element does not raise any new significant environmental issues which were not addressed in the Dublin General Plan Environmental Impact Report; and WHEREAS, on June 17, 1991, the Planning Commission adopted Resolution No. recommending City Council certification of the Negative Declaration as adequate and complete; and WHEREAS, data indicating the amount of cost, or estimated cost, required to provide the housing for which the in -lieu rental fee is levied and the revenue sources anticipated to provide the housing, including General Fund revenues were made available to the public at least 10 days prior to the public hearing; and WHEREAS, the Planning Commission considered all written and oral testimony submitted at the public hearing. EXIIIBITB PAGE �OF� NOW, THEREFORE, BE IT RESOLVED THAT THE Dublin Planning Commission does hereby recommend that the City Council approve the proposed revision to Strategy III.E of the Housing Element, as shown on Attachment 1 attached hereto. BE IT FURTHER RESOLVED THAT the Planning Commission does hereby recommend that the City Council direct Staff to edit, format, and print the revised Housing Element of the Dublin General Plan with all City Council approved revisions and without any other substantive changes. PASSED, APPROVED AND ADOPTED this 1st day of July, 1991. AYES: NOES: ABSENT: Planning Commission Chairperson ATTEST: Planning Director hsngre6 PAGE _ OF ATTACHMENT 1 III E. Require a that ten (10) percentage of the units in large multi -family projects fi-e:;-pregeets with more than 10 units} be rented for a speeified period of five years time or that an in -lieu rental fee be paid that would be computed by the City Manager as follows: The reauired number of rental units shall be multiplied times the amount necessary to subsidize the rental of a three bedroom market rate apartment unit for five years for a family of five earning 80% of the Alameda County median income (as determined by the U.S. Department of Housing and Urban Development), where no more than 30% of income is to be spent on rent. The amount of the in -lieu rental fee will be determined using the following table (the numbers in the table are illustrative, the market rent and County Median Income in the table will be those in effect at the time of approval of the proiect): Family of Five. Alameda County Median Income of S46,850. Percent of Median Income Market Affordable Difference 12 Mos. 5yrs The Value of Rent Rent the first year's rent plus 4 years at 4% yearly adjustments for rent increases 80% $1,100 $937 $163 $1,956 $9,780 $10,594 The difficulties of first-time home buying make rental units the only affordable housing for many moderate-imeeme households that do not have the assets to make a down -payment on a home. Other households may choose to rent for other reasons. Policy Objective: Insure availability of rental units in Dublin. Action Needed: Financing: Require that a minimum of 10% of the units in large multi -family projects with more than 10, units be maintained as rental units for a period of five years or that in -lieu rental fees be reauired that would be determined as shown above. No cost to City. Implementation Planning Department, Planning Commission and City Responsibility: Council. hsngre6 PAGE OF an important source of affordable housing since down payment requirements and the high cost of new housing limit new ownership housing as an affordable housing source. Also, some households choose to rent for reasons other than affordability. Recently, the JL Construction Company requested that Strategy III.E be amended to allow developers the option of paying an in -lieu fee rather than providing rental units. In response to this request, the City Council initiated this General Plan Amendment. The proposed in -lieu rental fee is based on the subsidy of an equivalent number of three bedroom rental units for the same period of time (i.e., five years) at a Department of Housing and Urban Development (HUD) support level (i.e., 80% of the Alameda County Median Income) most consistent with market rate rents. A three bedroom unit is used as a basis for the fee because three bedroom units which, due to their size, would more adequately house large families in Dublin (as compared to one or two bedroom units). Thirty-four percent of the families on waiting lists for subsidized apartments in Dublin are waiting for three -bedroom units. The Housing Element estimates that 44 overcrowded rental units exist in Dublin. The 80% support level is the income level (of the three available HUD levels) that most closely identifies households which can afford market rate rents. This approach allows flexibility over the long term because the amount of the in -lieu rental fee will change over time as conditions change. The attached Draft General Plan Amendment (Attachment 1) requires that any new multi -family residential development involving more than ten (10) dwelling units, which is approved on or after the effective date of the Ordinance, shall be conditioned to provide ten percent (10%) of the total number of dwelling units within the development as rental units for a period of five (5) years. The obligation to provide rental units may be satisfied by the applicant's payment of in -lieu rental fees. The amount of the in -lieu rental fees would be calculated by multiplying the required number of rental units by the amount necessary to subsidize the rent of a three bedroom market rate apartment for five years for a family of five earning 80% of the Alameda County median income, where no more than 30% of income is spent on rent. For example, a family earning 80% of the median income of $46,850 would earn $37,480. If they could spend 30% of that amount on housing, they would pay $11,244 a year or $937 a month. If market rents for a three bedroom apartment are $1,100, the difference between rents and ability to pay would be $163 per month or $1,956 per year or $9,780 for five years. A 4% rental increase over that period would yield an in -lieu rental fee of $10,594 per unit. The in -lieu rental fees would be paid at the time of issuance of a building permit. The in -lieu rental fees, /hsnggpa -2- L PAGE OF