HomeMy WebLinkAboutPC Reso 23-12 PLPA-2023-00032 Inclusionary Zoning RegulationsReso. No. 23-12, Item 6.2, Adopted 12/12/2023 Page 1 of 2
RESOLUTION NO. 23 12
A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF DUBLIN
RECOMMENDING CITY COUNCIL APPROVAL OF AMENDMENTS TO DUBLIN MUNICIPAL
CODE CHAPTER 8.68 (INCLUSIONARY ZONING REGULATIONS) EFFECTIVE CITYWIDE
PLPA-2023-00032
WHEREAS, the City occasionally initiates amendments to the Dublin Municipal Code to
clarify, add, or amend certain provisions to ensure that it remains current with federal and state
law, internally consistent, simple to understand and implement, and relevant to changes occurring
in the community; and
WHEREAS, Staff initiated amendments to Dublin Municipal Code Chapter 8.68
(Inclusionary Zoning Regulations) consistent with the City of Dublin Two-Year Strategic Plan,
which
zoning regulations incentivize targeted housing production and Objective 2c: Prepare a nexus
study to evaluate the affordable housing commercial linkage; and
WHEREAS, the City selected the consulting firm Economic and Planning Systems (EPS)
to prepare an Inclusionary Zoning and Affordable Housing In-Lieu Fee Feasibility Study and
Commercial Linkage Fee Nexus Study to inform the proposed amendments; and
WHEREAS, on August 15, 2023, and September 19, 2023, the City Council received
informational reports on the Commercial Linkage Fee and Inclusionary Zoning and In-Lieu Fee
programs and provided direction to staff to prepare updates to the programs; and
WHEREAS, proposed amendments to Dublin Municipal Code Chapter 8.68 (Inclusionary
Zoning Regulations) include changes to the affordability requirements for rental and ownership
development projects, modifications to the provisions for the payment of fees in-lieu of
constructing affordable units, revisions to the allocation of units to income levels, and revisions to
the exceptions to the affordability requirements; and
WHEREAS, the California Environmental Quality Act (CEQA), together with the State
Guidelines and City of Dublin CEQA Guidelines and Procedures require that certain projects be
reviewed for environmental impacts and that environmental documents be prepared; and
WHEREAS, the Planning Commission recommends that the City Council find the proposed
amendments exempt from the requirements of CEQA pursuant to CEQA Guidelines Section
15061(b)(3) as the amendments would not result in any physical changes and it can be seen with
certainty that the amendments would not have a significant effect on the environment; and
WHEREAS, the Planning Commission held a duly noticed public hearing on December 12,
2023, during which all interested persons were heard; and
WHEREAS, proper notice of said hearing was given in all respects as required by law; and
Reso. No. 23-12, Item 6.2, Adopted 12/12/2023 Page 2 of 2
WHEREAS, a Staff Report dated December 12, 2023, was submitted to the Dublin
Planning Commission recommending approval of the proposed amendments to Dublin Municipal
Code Chapter 8.68; and
WHEREAS, the Planning Commission did hear and consider all said reports,
recommendations and testimony herein above set forth and used its independent judgment to
evaluate the recommendations.
NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals are true and correct
and made a part of this Resolution.
BE IT FURTHER RESOLVED that the City of Dublin Planning Commission does hereby
recommend that the City Council adopt the Ordinance attached hereto as Exhibit A, and
incorporated herein by reference.
PASSED, APPROVED AND ADOPTED this 12th day of December 2023, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Planning Commission Chair
ATTEST:
______________________________________
Assistant Community Development Director
Attachment 2
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 10
ORDINANCE NO. XX – 23
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AMENDMENTS TO DUBLIN MUNICIPAL CODE CHAPTER 8.68
(INCLUSIONARY ZONING REGULATIONS)
PLPA-2023-00032
The Dublin City Council does ordain as follows:
SECTION 1. RECITALS
A. The City occasionally initiates amendments to the Dublin Municipal Code to clarify, add, or
amend certain provisions to ensure that it remains current with federal and state law, internally
consistent, simple to understand and implement, and relevant to changes occurring in the
community.
B. Staff initiated amendments to Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning
Regulations) consistent with the City of Dublin Two-Year Strategic Plan, which includes
Strategy 2: Housing Affordability, Objective 2b: Ensure the City’s inclusionary zoning
regulations incentivize targeted housing production and Objective 2c: Prepare a nexus study
to evaluate the affordable housing commercial linkage.
C. The City selected the consulting firm Economic and Planning Systems (EPS) to prepare an
Inclusionary Zoning and Affordable Housing In-Lieu Fee Feasibility Study and Commercial
Linkage Fee Nexus Study to inform the proposed amendments.
D. On August 15, 2023, and September 19, 2023, the City Council received informational reports
on the Commercial Linkage Fee and Inclusionary Zoning and In-Lieu Fee programs and
provided direction to staff to prepare updates to the programs.
E. The proposed amendments to Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning
Regulations) include changes to the affordability requirements for rental and ownership
development projects, modifications to the provisions for the payment of fees in-lieu of
constructing affordable units, revisions to the allocation of units to income levels, and revisions
to the exceptions to the affordability requirements.
F. The Planning Commission held a duly noticed public hearing on December 12, 2023, during
which all interested persons were heard, and adopted Resolution No. 23-xx recommending
that the City Council approve the proposed amendments to Dublin Municipal Code Chapter
8.68 (Inclusionary Zoning Regulations).
G. A Staff Report was submitted to the Dublin City Council recommending approval of the
proposed amendments to Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning
Regulations).
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 10
H. The City Council held a public hearing on the proposed amendments to Dublin Municipal Code
Chapter 8.68 (Inclusionary Zoning Regulations) on _________, at which time all interested
persons had an opportunity to be heard.
I. Proper notice of said hearing was given in all respects as required by law.
J. The City Council did hear and consider all said reports, recommendations and testimony herein
above set forth and used its independent judgement to evaluate the project.
SECTION 2. FINDINGS
A. Pursuant to Dublin Municipal Code Section 8.120.050.B., the City Council hereby finds that
the amendments to Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning Regulations)
are consistent with the General Plan and any applicable Specific Plan in that they would
provide an update to the City’s affordable housing requirements. Specifically, the
amendments would implement Housing Element Program B.4, which calls for a review of the
Inclusionary Zoning Regulations and preparation of a nexus study reviewing the affordable
housing in-lieu fee.
B. The California Environmental Quality Act (CEQA), together with the State Guidelines and City
of Dublin CEQA Guidelines and Procedures require that certain projects be reviewed for
environmental impacts and that environmental documents be prepared. The City Council
hereby finds that the amendments to Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning
Regulations) are exempt from the requirements of CEQA pursuant to CEQA Guidelines
Section 15061(b)(3) as the amendments would not result in any physical changes and it can
be seen with certainty that the amendments would not have a significant effect on the
environment.
SECTION 3. AMENDMENT OF CHAPTER 8.68.
Dublin Municipal Code Chapter 8.68 (Inclusionary Zoning Regulations) is amended to read as
follows:
“Inclusionary Zoning Regulations”
8.68.010 Purpose.
The purpose of this Chapter is to:
A. Enhance the public welfare and assure that further housing development contributes to
the attainment of the City’s housing goals by increasing the production of residential units
affordable by households of very low, low, and moderate income.
B. Assure that the limited remaining developable land in the City’s planning area is utilized
in a manner consistent with the City’s housing policies and needs.
8.68.020 Definitions.
As used in this Chapter, each of the following terms shall be defined as follows:
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 3 of 10
A. “Affordable unit” means an ownership or rental-housing unit, affordable to households with
very low-, low-, or moderate-incomes as defined in this Chapter.
1. Rental units are deemed affordable units if the annual rent does not exceed 30% of
maximum income level for very low-, low- and moderate-income households, adjusted for
household size and as defined below.
2. Owner-occupied units are deemed affordable units if the sales price results in annual
housing expenses that do not exceed 35% of the maximum income level for very low-, low-,
and moderate-income households, adjusted for household size and as defined below.
B. “Applicant” means any person, firm, partnership, association, joint venture, corporation, or
any entity or combination of entities that seeks city real property development permits or
approvals.
C. “Dwelling unit” means a dwelling designed and intended for occupancy by one household.
D. “Very low-, low-, and moderate-income levels” means those income and eligibility levels
determined periodically by the California Department of Housing and Community
Development based on Alameda County median income levels adjusted for family size. Such
levels shall be calculated on the basis of gross annual household income considering
household size and number of dependents, income of all household members eighteen years
of age and older, and all other sources of household income and will be recertified as set forth
by local standards, and state and federal housing law.
1. “Very low-income” means 50% or less of the median income, adjusted for actual household
size.
2. “Low-income” means more than 50% and up to 80% of the median income, adjusted for
actual household size.
3. “Moderate-income” means more than 80% and up to 120% of the median income, adjusted
for actual household size.
E. “Resale controls and/or rent restrictions” means legal restrictions by which the affordable
units shall be restricted to ensure that the unit remains affordable to very low-, low-, or
moderate-income households, as applicable, for a period of not less than 55 years. The 55
year period will reset each time ownership of the unit is transferred through a bona fide sales
transaction with a third party during the resale restriction period. With respect to rental units,
such rent restrictions shall be in the form of a regulatory agreement recorded against the
applicable property. With respect to owner-occupied units, such resale controls shall be in the
form of resale restrictions, deeds of trust, and/or other similar documents recorded against the
applicable property.
F. “Residential development” includes, without limitation, detached single-family dwellings,
multiple-dwelling structures, groups of dwellings, condominium or townhouse developments,
condominium conversions, cooperative developments, mixed use developments that include
housing units, and residential land subdivisions intended to be sold to the general public.
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 4 of 10
8.68.030 General Requirements.
A. Affordability Requirement for Rental Units. All new rental residential development
projects with 10 units or more designed and intended for permanent occupancy shall construct
10.0% of the total number of dwelling units within the development as affordable units, except
as otherwise provided by this Chapter, and except when all of the dwelling units (excluding
units reserved for property management) within the project are affordable. The foregoing
requirement shall be applied no more than once to an approved residential development (and
generally at the tentative map stage), regardless of the changes in the character or ownership
of the development, except as provided by this Chapter, provided the total number of units
does not change. In applying and calculating the affordability requirement, any decimal fraction
less than or equal to 0.50 may be disregarded, and any decimal fraction greater than 0.50
shall be construed as one unit.
B. Affordability Requirement for Ownership Units. All for-sale (ownership) residential
development projects of 10 units or more designed and intended for permanent occupancy
shall construct 12.5% of the total number of dwelling units within the development as
affordable units, except as otherwise provided by this Chapter. The foregoing requirement
shall be applied no more than once to an approved residential development (and generally at
the tentative map stage), regardless of the changes in the character or ownership of the
development, except as provided by this Chapter, provided the total number of units does not
change. In applying and calculating the affordability requirement, any decimal fraction less
than or equal to 0.50 may be disregarded, and any decimal fraction greater than 0.50 shall be
construed as one unit.
C. Allocation of Units to Income Levels. Affordable units provided pursuant to this section
shall be allocated as follows:
Rental Units Owner-Occupied Units
Very low-income households 0% 0%
Low-income households 100% 40%
Moderate-income households 0% 60%
Where the calculation of the allocation results in fewer units than would otherwise be required,
one additional unit should be allocated to the income level with a decimal fraction closest to
0.50.
D. Conditions of Approval: Any tentative map, conditional use permit, or site development
review approving residential development projects subject to this Chapter shall contain
conditions sufficient to ensure compliance with the provisions of this Chapter. Such conditions
shall detail the number of affordable units required, set forth the applicant’s manner of
compliance with this Chapter, and require the execution of an agreement imposing appropriate
resale controls and/or rental restrictions on the affordable units.
E. Concurrent Construction. All affordable units in a project or phase of a project shall be
constructed concurrently with market-rate units, unless the City Manager determines in writing
that extenuating circumstances exist that make concurrent construction infeasible or
impractical.
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 5 of 10
F. Design and Distribution of Affordable Units. All affordable units shall reflect the range
of numbers of bedrooms provided in the project as a whole and shall not be distinguished by
exterior design, construction, or materials. Affordable units may be of smaller size than the
units in the project and may have fewer amenities than the market rate units in the project. All
affordable units shall be reasonably dispersed throughout the project.
8.68.040 Exceptions to Affordability Requirement.
Developers of projects subject to Sections 8.68.030A and 8.68.030B shall construct the total
number of affordable dwelling units within the development, unless subject to an exception set
forth in this section. All exceptions require City Council approval.
A. Payment of Fees In Lieu of Constructing Affordable Units. Upon request, the applicant
shall be permitted to pay a fee in lieu of constructing up to 40% of the affordable units that the
developer would otherwise be required to construct pursuant to Sections 8.68.030A and
8.68.030B. The amount of the fee shall be as set forth in a resolution of the City Council, which
may be amended from time to time to reflect inflation and changed conditions in the City and
the region. In lieu fees shall be paid at the time and in the amount set forth in the in lieu fee
resolution in effect at the time of issuance of the building permit.
B. Off-Site Projects. An applicant may construct the affordable units not physically within
the development in lieu of constructing some or all of the affordable units within the
development, with the approval of the City Council, if the City Council finds:
1. Construction of the units off-site in lieu of constructing units on-site is consistent with the
Chapter’s goal of creating, preserving, maintaining, and protecting housing for very low-, low-
and moderate-income households.
2. Units to be constructed off site are consistent with Section 8.68.030F above.
3. Would be infeasible or impractical to construct affordable units on-site.
4. Conditions of approval for the project require that the off-site affordable units would be
governed by the terms of a deed restriction and, if applicable, rental restrictions similar to that
used for the on-site affordable units.
5. Conditions of approval for the project, or other security such as a cash deposit, bond, or
letter of credit, are adequate to require the construction of the off-site affordable units
concurrently with the completion of the construction of the residential development or within a
reasonable period (not to exceed five years).
C. Land Dedication. An applicant may dedicate land to the City or city-designated local non-
profit housing developer in lieu of construction of some or all of the required affordable units,
if the Council finds:
1. Dedication of land in lieu of constructing units is consistent with the Chapter’s goal of
creating, preserving, maintaining, and protecting housing for very low-, low- and moderate-
income households.
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 6 of 10
2. The dedicated land is useable for its intended purpose, is free of toxic substances and
contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading, and all
development-impact fees paid excluding any inclusionary zoning ordinance fees.
3. The proposed land dedication is of sufficient size to meet the following requirements:
a. The dedication includes land sufficient to construct the number of units that the applicant
would otherwise be required to construct by Section 8.68.030.A, based on the size of lots in
the subdivision for which the applicant is meeting its obligation; and
b. In addition, the dedication includes such additional land the market value for which is equal
to or exceeds the difference between the value of a market-rate, 1200-square foot unit and
the price at which such a unit could be sold as an Affordable Unit (which amount shall be set
forth in a resolution adopted from time to time by the City Council) times the number of units
required.
D. Credit Transfers. An applicant may fully or partially satisfy the requirements of Sections
8.68.030A and 8.68.030B through the use of transfer credits created pursuant to
Section 8.68.060. Credit certificates shall be presented to the Community Development
Director, who shall note at the time of project approval the credit certificate by number. Credit
certificates may only be used to satisfy the requirements for Inclusionary Units for the income
category (i.e., very low-, low-, or moderate-income) and number of bedrooms for which they
are issued.
E. Waiver of Requirements. The City Council, at its discretion, may waive, wholly or partially,
the requirements of this ordinance and approve alternate methods of compliance with this
Chapter if the applicant demonstrates, and the City Council finds, that such alternate methods
meet the purposes of this Chapter.
8.68.050 General Procedures for Implementing Inclusionary Zoning Requirements.
A. Agreements. Prior to the issuance of a building permit for an affordable unit, resale
restrictions or rental controls, or both, as the case may be, shall be set forth in an agreement
between the City and the developer, in a form consistent with the City Council-adopted form
agreement, which agreement shall be recorded against the property containing the affordable
units. The agreement shall be executed by the City Manager, and its requirements shall run
with the land and bind the applicant’s successors.
B. Rental Units; Occupancy; Annual Report. Agreements involving rental units shall
require the owner of the affordable units to ensure that the units are occupied by tenants whose
monthly income levels do not exceed very low-, low-, or moderate-income levels, as the case
may be, and shall preclude tenants from subletting or subleasing the unit. The agreement shall
also require the owner of the affordable unit to submit an annual report to the City Manager, in
a format approved by the City. The report shall include, but not be limited to the following
information: an identification of the affordable units within the project; the monthly rents
charged and proposed to be charged; vacancy information for the prior year; and the monthly
income for tenants of each affordable unit throughout the prior year.
C. Ownership Units; Occupancy; City’s Right of First Refusal. Agreements for ownership
units shall specify that the inclusionary units must be occupied by the owner or owners and
may not be leased or rented without the written approval of the City. The resale restrictions
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 7 of 10
shall provide that in the event of the sale of an affordable unit, the City shall have the right to
purchase any affordable owner-occupant unit at the maximum price that could be charged to
an eligible household.
D. Selection Criteria. No household shall be permitted to occupy a unit that is required under
this Chapter to be affordable unless the City or its designee has approved the household’s
eligibility. Eligible potential occupants of affordable units will be qualified on the basis of
household income as defined by this Chapter. The selection criteria for a qualified household
may not distinguish between adults and children. Selection of qualified person should be based
on priorities established using the point system described below:
• Employed within the boundaries of the City of Dublin (3 points maximum, one per
household member)
• Public Service employee working in the City of Dublin (1 point)
• Dublin resident (3 points maximum, one per household member)
• Seniors (1 point, one per household)
• Permanently disabled (1 point, one per household)
• Immediate family member of Dublin resident (1 point, one per household)
• Required to relocate from current Dublin residence due to demolition of dwelling or
conversion of dwelling from rental to for-sale unit (1 point, one per household)
To qualify as a “Public Service Employee”, the person shall be employed by a Public Agency.
To qualify as “Employed within the boundaries of the City of Dublin”, the person shall have
been employed within the City of Dublin for at least six months.
To qualify as a “Dublin resident,” the person shall have been a resident of the City of Dublin
for at least a one-year period prior to the eligibility determination.
8.68.060 Affordable Unit Credits.
A. Creation. Affordable unit credits may be created by the City Council. One affordable unit
credit certificate shall be issued for each affordable unit constructed in excess of the number
of affordable units required to be constructed for the project by Sections 8.68.030A and
8.68.030B. The certificate shall designate a specific income category (i.e., very low-, low-, or
moderate-income) and number of bedrooms for which they are issued.
B. Ownership and Use of Credits. Affordable unit credit certificates are issued to and
become the possession of the project owner, who may use them to satisfy the requirements
of this Chapter for another project in the City. If a project owner proposes to sell credit
certificates, the parties shall first obtain the consent of the Finance Director, who will document
the transfer by certificate number.
8.68.070 Incentives to Encourage On-Site Construction of Affordable Units.
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 8 of 10
The City may, but shall not be required to, offer incentives or financial assistance to encourage
the on-site construction of affordable units in excess of the total number of affordable units
required by this Chapter to be included in the project to the extent resources for this purpose
are available and approved for such use by the City Council or City Manager. Such incentives
may include, but shall not be limited to, the following:
A. Fee Deferral.
1. Development Processing Fees. The City Manager may approve deferred payment of
City processing fees applicable to the review and processing of the project. The terms and
payment schedule of the deferred fees shall be subject to the approval of the City Manager.
2. Development Impact Fees. The City Council may authorize the deferred payment of
development impact fees applicable to the affordable units. Approval of this incentive requires
demonstration by the Applicant that the deferral increases the project’s feasibility. The
applicant must provide appropriate security to ensure future payment of such fees.
B. Design Modifications. The City Council may approve design modifications to affordable
units that increase the feasibility of the construction of affordable units, including but not limited
to, the following:
1. Reduced lot size.
2. Reduced setback requirements.
3. Reduced open space requirements.
4. Reduced landscaping requirements.
5. Reduced interior or exterior amenities.
6. Reduction in parking requirements.
7. Height restriction waivers.
Section 8.68.080 Inclusionary Zoning In Lieu Fees.
The fund previously known as the “Inclusionary Zoning In Lieu Fee fund” is hereby renamed
the “Affordable Housing Fund” (“Fund”) and all In Lieu Fees shall be deposited into the Fund.
A. Use. All monies in the Fund, together with any interest earnings on such monies less
reasonable administrative charges, shall be used or committed to use by the City for the
purpose of providing very low-, low-, and moderate-income ownership or rental housing in the
City of Dublin.
B. Annual Report. The City Manager shall prepare an annual report to the City Council
identifying the balance of monies in the Fund and the affordable units provided and any monies
committed to providing very low-, low-, and moderate-income housing. The annual report shall
also include a review of administrative charges.
Section 8.68.090 Violations.
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 9 of 10
It shall be unlawful for any person, firm, corporation, partnership or other entity that is subject
to this ordinance pursuant to Sections 8.68.030A and 8.68.030B to violate any provision or to
fail to comply with any of the requirements of this Chapter. A violation of any of the provisions
of or failure 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. Any person convicted of an infraction
under the provisions of this Code shall be punishable as provided by the Government Code of
the State of California.
8.68.100 Enforcement.
A. General. The City Manager shall enforce this Chapter, and its provisions shall be binding
on all agents, successors, and assigns of an applicant. The City Manager may suspend or
revoke any building permit or approval upon finding a violation of any provision of this Chapter.
No land-use approval, building permit, or certificate of occupancy shall be issued for any
residential development unless exempt from or in compliance with this Chapter. 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.
B. Excessive Rents/Legal Action. If the City Manager determines that rents in excess of
those allowed by operation of this Chapter have been charged to a tenant residing in an
affordable unit, the City may take appropriate legal action to recover, and the project owner
shall be obligated to pay to the tenant, or to the City in the event the tenant cannot be located,
any excess rents charged.
Section 8.68.110 Appeals.
Decisions of the City Manager under this Chapter may be appealed as provided in
Chapter 8.136.
SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect and be enforced 30 days
following its final adoption.
SECTION 5. SEVERABILITY. 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 6. POSTING. The City Clerk of the City of Dublin shall cause this Ordinance to be
posted in at least three 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 __th day of _______ 2024, by the following
vote:
Ord. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 10 of 10
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk