HomeMy WebLinkAboutItem 8.2 Rental Availability OrdinanceTO:
FROM:
PREPARED BY:
SUBJECT:
CITY OF DUBLIN
PLANNING COMMISSION
AGENDA STATEMENT/STAFF REPORT
Meeting Date: July 1, 1991
Planning Commission
Planning Staff
Dennis Carrington, Senior Planner
Robert Schubert, Contract Planner
Rental Availability Ordinance
GENERAL INFORMATION:
PROJECT:
APPLICANT:
LOCATION:
ENVIRONMENTAL
REVIEW:
Rental Availability Ordinance as required by the
Housing Element
City of Dublin
City-wide and extended planning area
A Negative Declaration of Environmental Impact was
prepared for General Plan Amendment 91-001 including
the Rental Availability Ordinance.
NOTIFICATION: Public Notice of the July 1, 1991 hearing was published
in the local newspaper and posted in the County Clerk's
office and other 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 1.8% rental vacancy rate falls far below that goal.
In addition, rental housing is an important source of affordable
housing since down payment requirements and the high cost of new
housing limit new housing as an affordable ownership 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
rental fee rather than providing rental units. In response to the
request, the City Council initiated a General Plan Amendment. The
ITEM NO. B.G.
COPIES TO:Agenda/General File
Planning/Address File
Project Planner
PAGE _L OF./'
attached Draft Ordinance 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,
would 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 times the amount
necessary to subsidize the rental 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. The three bedroom dwelling units would provide more
adequately for the rental housing needs of the general population than
would either one or two bedroom units. Thirty-four percent of the
families on waiting lists for subsidized apartments in Dublin are
waiting for three -bedroom apartments. The 80% support level, of the
HUD support levels available, is the level most consistent with market
rate rents.
Below is an example of how the fee could be calculated for a
required rental unit:
Family of Five. Alameda County Median Income of $46,850.
Percent Market Affordable Difference 12 Mos. 5yrs The Value
of Rent Rent of first year's
Median rent plus 4
Income years at 4%
yearly adjust-
ments for rent
increases
80% $1,100 $937 $163 $1,956 $9,780 $10,594
The in -lieu rental fees would be paid at the time of issuance of
a building permit. The in -lieu rental fees, together with any
interest earnings on such monies less reasonable administrative
charges, would be used or committed to use by the City within five
years of the date of payment, for the purpose of providing rental
housing in the City of Dublin 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. The Developer would guarantee compliance with
Strategy III E by agreeing to a condition of approval that the rental
housing be provided or an in -lieu rental fee be paid. The written
agreement providing the guarantees would be subject to review and
approval by the City Attorney.
Dublin residents will be given first priority for rental units;
Dublin employees will have second preference for rental units; third
preference will be given to those who need to move to Dublin to be
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near Dublin residents or services; and fourth preference will be given
to those who live outside Dublin.
The exterior design of the rental units would be identical to the
non rental units. The units would be dispersed throughout the project
and would include all unit types represented in the project in the
same proportion as in the project as a whole.
The owner of each project would be responsible for obtaining and
verifying information with respect to the qualifications of tenants,
including, information relating to applications, income and
eligibility.
The following individuals would be ineligible to rent a unit
under the ordinance:
(a) All employees and officials of the City who have, by the
authority of their position, policy making authority or influence
affecting City housing programs.
(b) The Applicant or Project Owner of the unit to be rented.
(c) Anyone gaining significant economic benefit from a direct
business association with public employees, officials, applicants, or
project owners.
RECOMMENDATIONS:
FORMAT: 1) Open public hearing and hear Staff presentation.
2) Take testimony from the public.
3) Question Staff and the public.
4) Close public hearing and deliberate.
5) Give direction to Staff and continue hearing to the
July 15th Planning Commission meeting.
ACTION: Staff recommends that the Planning Commission give direction
to Staff and continue the hearing to the July 15th Planning
Commission meeting.
ATTACHMENTS:
Exhibit A:
Exhibit B:
Resolution recommending that the City Council approve
the draft Rental Availability Ordinance
Draft Rental Availability Ordinance
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RESOLUTION NO. 91 -
A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF DUBLIN
RECOMMENDING CITY COUNCIL APPROVAL OF A RENTAL AVAILABILITY ORDINANCE
WHEREAS, pursuant to the General Plan Amendment requested by JL
Construction and initiated by the City Council to revise Strategy III.E of
the Housing Element, the City of Dublin has prepared a Rental Availability
Ordinance; 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 Rental Availability Ordinance has been reviewed in
accordance with the provision 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 91-001 including the
Rental Availability Ordinance; and
WHEREAS, the programs proposed in the Rental Availability Ordinance do
not raise any new significant environmental issues which were not addressed
in the Dublin General Plan Environmental Impact Report; 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, on July 1, 1991, the Planning Commission adopted Resolution
No. recommending City Council certification of the Negative
Declaration as adequate and complete; and
WHEREAS, the Planning Commission considered all written and oral
testimony submitted at the public hearing.
NOW, THEREFORE, BE IT RESOLVED THAT THE Dublin Planning Commission
does hereby recommend that the City Council approve the draft Rental
Availability Ordinance.
PASSED, APPROVED AND ADOPTED this 1st day of July, 1991.
AYES:
NOES:
ABSENT:
ATTEST:
Planning Director
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Planning Commission Chairperson
EXHIBIT A
rwe....wL
ORDINANCE NO. -91
AN ORDINANCE OF THE CITY OF DUBLIN
An Ordinance Adding Chapter 8.12 to Title 8
of the Dublin Municipal Code Enacting
a Rental Availability Ordinance
The City Council of the City of Dublin does ordain as follows:
Section 1. Chapter 8.12 is hereby added to Title 8 of the
Dublin Municipal Code to read as follows:
"CITY OF DUBLIN RENTAL AVAILABILITY ORDINANCE
CHAPTER 8.12 OF TITLE 8
CITY OF DUBLIN MUNICIPAL CODE
Section 8.12.010. Title. This Ordinance shall be called
the "Rental Availability Ordinance of the City of Dublin."
Section 8.12.020. Findings. A goal of the City's adopted
Housing Element is to achieve a balanced community with housing
available for households over a range of income levels. The City
of Dublin finds 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 1.8%
rental vacancy rate falls far below that goal. (Housing Element,
pp. 16-17.) In addition, rental housing is 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. The City Council finds
that it is a public purpose of the City and a public policy of
the State of California as mandated by the requirements for a
housing element of the City's General Plan, to make available an
adequate supply of rental housing for persons of all economic
segments of the community.
Section 8.12.030. Purpose. The purpose of this chapter is
to enhance the public welfare and assure that housing development
contributes to the attainment of the above described goals by
providing rental housing in the City of Dublin directly or
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. A
limited and finite amount of land remains for development of
housing in the City and extended planning area. In order to
assure that the remaining developable land is utilized in a
EXHIBIT 8
PAGE Sr— nF I/
manner consistent with the City's housing policies and needs, the
City declares that 10% of the total number of units in all new
multi -family projects of more than ten units shall be maintained
as rental units for a period of five (5) years. The regulations
set forth in this Chapter shall apply City-wide, including the
extended planning areas.
Section 8.12.040. Definitions. For the purposes of this
Chapter, certain words and phrases shall be interpreted as set
forth in this section unless it is apparent from the context that
a different meaning is intended.
(a) Applicant: Any person, firm, partnership, association,
joint venture, corporation, or any entity or combination of
entities which seeks City permits and approvals for a project.
(b) Approval: Adoption of a resolution by the Planning
Commission and/or City Council approving a discretionary permit
such as a Tentative Map, Planned Development or Use Permit, for a
project.
(c) City: The City of Dublin or its designee or any entity
with which the City contracts to administer this chapter.
(d) Dublin employee: Any head of household, or in the case
of married couples either spouse, who has worked within the City
Limits of Dublin continually for one (1) year immediately prior
to the date of application for a rental unit.
(e) Dublin resident: Any person who has lived within the
City Limits of Dublin continually for one (1) year immediately
prior to the date of application for a rental unit. Continually
shall be construed to include lapses of residency of no longer
than six months.
(f) Dwelling unit: A dwelling designed for occupancy by
one household.
(g) Household: One person living alone, or two or more
persons sharing residency whose income resources are available to
meet the family's needs and who are related by blood, marriage or
operation of law.
(h) In -lieu rental fee: A fee paid to the City by an
applicant for residential development in the City, in lieu of
providing the rental units required by this Chapter.
(i) Multi -family residential development: A project which
includes any multi -family dwellings.
(j) Project: A housing development at one location
including all dwelling units for which permits have been applied
for or approved within a twelve-month period.
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(k) Project Owner: Any person, firm, partnership,
association, joint venture, corporation, or any entity or
combination of entities which holds fee title to the land on
which the project is located.
(1) Rental unit: A rental dwelling unit as required by
this Chapter.
(m) Re -rental controls: Legal restrictions by which the
availability of rental units will be monitored and controlled to
insure that the unit remains available for rent.
(n) Unit type: Dwelling units with similar floor area and
number of bedrooms.
Section 8.12.050. General rental unit requirements for new
multi -family residential developments of more than 10 units.
(a) Any new multi -family residential development involving
more than ten (10) dwelling units, which is approved on or after
the effective date of this Ordinance, shall be conditioned to
include an Agreement 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 from the date of final occupancy
of each unit. The obligation to provide rental units may be
satisfied by the Applicant's payment of in -lieu rental fees, as
provided in Section 8.12.070 of this Ordinance.
In applying the 10% requirement, any resulting fraction
of units less than or equal to 0.50 may be disregarded and any
fraction greater than 0.50 shall be construed as requiring one
rental unit. The rental requirement shall be imposed only once
on a given development, regardless of changes in the character or
ownership of the development.
(b) Any development permit for new multi -family residential
development projects of more than ten units, if granted, shall be
subject to conditions ensuring compliance with the provisions of
this Chapter. Such conditions shall specify the timing of
construction of rental units and/or payment of in -lieu rental
fees and the rental control mechanism.
Evidence of compliance with the rental housing
conditions shall be in the form of a written Agreement between
the Applicant and the City Manager completed prior to the
issuance of any project building permits. The Agreement shall
indicate the number and construction scheduling of all rental
units and any other information required by the City Manager to
determine the Applicant's compliance with the conditions. The
Agreement shall be recorded as a deed restriction prior to
issuance of any project building permits and shall run with the
land encompassed by the project for each phase until the rental
units have been occupied for a period of five years from the date
of final occupancy of the last unit in each phase.
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(c) Dublin residents will be given first preference for
rental units; Dublin employees will have second preference for
rental units; third preference will be given to those who need to
move to Dublin to be near Dublin residents or services; and
fourth preference will be given to those who live outside of
Dublin.
(d) All rental units in a project and phases of a project
shall be constructed concurrently with or prior to the
construction of non -rental units.
(e) All rental units shall be reasonably dispersed
throughout the entire development; shall include all unit types
represented in the project (unless the number of unit types
exceeds the number of rental units) and said unit types shall be
provided in the same proportion as in the project as a whole; and
shall be compatible with the design and use of the non -rental
units in terms of exterior appearance, materials, and finished
quality.
(f) The Project Owner shall be responsible for obtaining
and verifying information with respect to the qualifications of
prospective and current tenants, including, but not limited to,
information relating to applications and eligibility in a form
satisfactory to the City Manager. The Project Owner shall
maintain a list of qualified applicants for the length of time
the units are rented and shall allow the City Manager to inspect
such information upon reasonable notice.
(g) The City Manager shall monitor the continuing
availability of rental units and shall take such actions as
necessary to notify the public of their availability.
Section 8.12.060. Relation of Rental Availability Ordinance
to Inclusionary Housina Ordinance. The rental availability
provisions of this chapter are separate from the provisions of
the Inclusionary Housing Ordinance of the City of Dublin, Chapter
8.08 of Title 8 of the City of Dublin Municipal Code. However,
rental units required under this rental availability ordinance
may also be counted to determine compliance with inclusionary
housing requirements so long as the rental units meet all
applicable requirements of the inclusionary housing ordinance,
including the time period and rent levels required.
Section 8.12.070. In -lieu rental fees.
(a) An Applicant may contribute fees in lieu of providing
the rental units. Such fees shall be known as "in -lieu rental
fees".
(b) The amount of the in -lieu rental fees for a project
shall be calculated by multiplying the required number of rental
units by the amount necessary to subsidize the rental 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
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than 30% of income is 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 project):
Family of Five. Alameda County Median Income of $46,850.
Percent Market Affordable Difference
of Rent Rent
Median
Income
80% $1,100 $937
12 Mos. 5yrs
The value
of the
first
year's
rent plus
4 years
at 4%
yearly
adjust-
ment for
rent
increases
$163 $1,956 $9,780 $11,018
The value of the first year of rent plus four years at 4%
yearly adjustment for rent increase is calculated by adjusting
the base of $1,956 in this example annually for a period of four
years at a compounded annual rate of 4% and adding that amount to
the first year's rent. The 4% is based on a survey of rental
increases typical for 1990. Typical rental increases will vary
over time.
Market rent will be determined by the City Manager. The
apartment units used for determination of comparative market
rental cost must be located in the Tri-Valley area (Dublin, San
Ramon, Livermore and Pleasanton) and be comparable in size, age
and amenities to the units that would otherwise be sold.
(c) The in -lieu rental fees shall be paid at the time of
issuance of a building permit.
(d) The in -lieu rental fees shall be deposited into a fund
to be known as the "Rental Availability Housing In -Lieu Rental
Fees Fund" ("Fund") and shall be used only for the purposes set
forth herein.
(e) All monies in the Fund, together with any interest
earnings on such monies less reasonable administrative charges,
shall be used by the City Manager for the purpose of providing
rental housing in the City of Dublin 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.
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(f) The monies in the Fund shall be used or committed to
use for the purposes set forth in subsection (e) above within
five (5) years of the date of payment into the Fund. Any monies
remaining unexpended or uncommitted at the end of the five year
period shall be refunded to the then -current owner or may be
contributed to a non-profit association or corporation for the
purpose of providing rental housing in Dublin, at the option of
the City Council.
(g) No later than June 30 of each year, the City Manager
shall prepare a report for the City Council identifying the
balance of monies in the Fund and the rental housing provided and
any monies committed to providing rental housing. The annual
report shall also include a review of administrative charges.
The City Council shall receive and consider the report.
Section 8.12.080. Conflict of Interest. Following are
those individuals who, by virtue of their position or
relationship, are found to be ineligible to rent a unit under
this chapter as their residence:
(a) All employees and officials of the City of Dublin who
have, by the authority of their position, policy making authority
or influence affecting City housing programs.
(b) The Applicant or Project Owner.
Section 8.12.090. Violations.
(a) It shall be unlawful for any person, firm, corporation,
partnership or other entity to violate any provision or to fail
to comply with any of the requirements of this Chapter. A
violation of any of the provisions or failing to comply with any
of the requirements of this Chapter shall constitute a
misdemeanor; except that notwithstanding any other provisions of
this Code, any such violation constituting a misdemeanor under
this Chapter may, in the discretion of the enforcing authority,
be charged and prosecuted as an infraction.
(b) Any person convicted of an infraction under the
provisions of this Code, unless provision is otherwise herein
made, shall be punishable as provided by the Government Code of
the State of California.
Section 8.12.100. Enforcement.
(a) The provisions of this chapter shall apply to all
agents, successors and assigns of an Applicant. No building
permit or occupancy permit shall be issued, nor any development
approval be granted which does not meet the requirements of this
chapter.
(b) The City Manager is designated as the enforcing
authority.
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(c) The City may institute any appropriate legal actions or
proceedings necessary to ensure compliance herewith, including
but not limited to actions to revoke, deny or suspend any permit
or development approval.
Section 8.12.110. Appeals. Any person aggrieved by any
action involving denial, suspension or revocation of an occupancy
or other permit, or denial, suspension, or revocation of any
development approval, may appeal such action or determination in
the manner provided in Section 1.04.050 of the Municipal Code."
Section 2. Severabilitv. The provisions of this ordinance
are severable and if any provision, clause, sentence, word or
part thereof is held illegal, invalid, unconstitutional, or
inapplicable to any person or circumstances, such illegality,
invalidity, unconstitutionality, or inapplicability shall not
affect or impair any of the remaining provisions, clauses,
sentences, sections, words or parts thereof of the ordinance or
their applicability to other persons or circumstances.
Section 3. Relation to Approved Proiects.
The enactment of this ordinance and Chapter 8.12 of the
Municipal Code shall not affect the conditions of any project
approved before the effective date of this ordinance, including
any condition for rental of units consistent with the Housing
Element in effect at the time of approval of the project,
provided that the conditions of any such project may be amended
upon application of the Project Owner to include the alternative
of payment of an in -lieu rental fee.
Section 4. Posting and Effective Date.
This ordinance shall take effect and be in force thirty (30)
days from and after the date of its passage. This City Clerk of
the City of Dublin shall cause this ordinance to be posted in at
least three (3) public places in the City of Dublin in accordance
with Section 36933 of the Government Code of the State of
California.
PASSED, APPROVED AND ADOPTED this 1st day of July, 1991, by
the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
Mayor
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