HomeMy WebLinkAbout6.4 InclusionaryZnOrd
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CITY CLERK
File # D~[1]fI5l-~[Q]
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 25, 1996
SUBJECT:
PUBLIC HEARING P A 96.018 Inclusionary Zoning Ordinance
(Report Prepared by: Tasha Huston, Associate Planner) ,--1 pJ-"
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EXHIBITS ATTACHED:
A.
Resolution Approving Negative Declaration and Establishing
method for detennining amount of In-Lieu Fee
Inclusionary Zoning Ordinance
B.
BACKGROUND EXHIBITS
NOT ATTACHED, BUT AVAILABLE AT THE DUBLIN
PLANNING DEP ARTIvfENT AND AT THE PUBLIC HEARING:
1. Dublin Housing Element
2. Eastern Dublin Specific Plan
3. Staff Reports from February 6, 1996 and March 19, 1996
Study Sessions
4. Staff Report from May 7, 1996 Planning Commission Meeting
5. Staff Report from May 28, 1996 City Council Meeting
6. Staff Report from June II, 1996 City Council Meeting
.. RECOMMENDATION:
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1.) Open continued Public Hearing and hear Staff presentation.
2) Take public testimony.
3) Question Staff and the public.
.4) Close public hearing and deliberate.
5) Adopt Draft Resolution (Exhibit A)
6) Waive reading and introduce the Ordinance (Exhibit B)
7) Schedule second reading for the July 9, 1996 Council meeting.
FINANCIAL STATEMENT: None
DESCRIPTION
The purpose of the Ordinance is to further the City's goals of making available an adequate supply of
housing for persons of all economic segments of the community, and contributing to the attainment of
this goal by increasing the production of residential units affordable by households of very low, low,
and moderate income housing.
The draft Inclusionary Zoning Ordinance was reviewed before the Planning Commission at a public hearing
on May 7, 1996, after which the Commission voted to recommend City Council adoption of the Negative
Declaration of Environmental Impact, and approval of the Ordinance. -..'
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COPIES TO: In-House Distribution
ITEM No.M
The City CQuncil reviewed the proposed Inclusionary Zoning Ordinance at its May 28, 1996 meeting.
Following a public hearing and discussion of the Ordinance, the Council requested one clarification.be addFd
to the Ordinance, regarding credit toward the In-Lieu fee for providing a portion of the Inclusionary Units
required, and the majority voted in favor of proceeding with adoption of the Ordinance. The Ordinance was
introduced, and continued to the June 11, 1996 City Council meeting.
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At its June 11, 1996 meeting, the City Council held a public hearing and discussed the Ordinance. A minor .
revision to the Ordinance was requested, to change the term which an Inclusionary Unit must remain
affordable, from 30 years to 20 years. The Council also requested staff confirm whether there are any legal
issu~s ,related to making this change.
The City attorney has confirmed that there are no stipulations in the Dublin General Plan or EastemDublin
Specific Plan which restrict the life ofInclusionary Units to 30 years. The only constraints related to this
change would be in practical application of the Ordinance. If the City establishes provisions for the
repayment of any "Silent Second" mortgages, the repayment terms may need to be structured for a 20-year
time frame, rather than the conventional 30.year loan period.
The above noted change has been made, and the Ordinance has been prepared for introduction by the City
Council at its June 25, 1996 meeting. A City Council Resolution approving a Negative Declaration for the
Ordinance, and establishing the method for calculation of the optional In-Lieu Fee is also included, for
adoption along with the Inclusionary Zoning Ordinance.
The proposed Inclusionary Zoning Ordinance is consistent with the requirements of the City's General
Plan, Housing Element (Exhibit 1), Strategy lB., and the Eastern Dublin Specific Plan (Exhibit 2),
Programs 4.F. and 4.G. The draft Ordinance reflects the direction given in response to issues discussed at...
two joint study sessio,ns of the City Council and Planning Commission held earlier ~s year. The Staff
Reports prepared for these public meetings (Exhibit 3) document the City's current housing supply situation.
Also included as exhibits are the staff reports from the May 7, 1996 Planning Commission meeting (Exhibit
4) and the May 28,.1996 and June 11, 1996 City Council Meetings (Exhibits 5 and 6).
Staffrecommel)dsthat the City Council conduct a Public Hearing, deliberate, and: 1) adopt the
Resolution (Exhibit A) Adopting a Negative Declaration and Establishing the method for determining the
amount of In-Lieu Fees; 2) waive reading and introduce the Inclusionary Zoning OrdinRI;lCe (Exhibit B), and
3) schedule the second reading for the July 9, 1996 City Council Meeting.
g:\p8#\1996\pl96O 18\srcc62S.
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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ADOPTING A NEGATIVE DECLARATION FOR THE INCLUSIONARY ZONING ORDINANCE;
AND
ESTABLISHING METHOD FOR DETERMINING AMOUNT OF IN.LIEU FEE
WHEREAS, the City of Dublin Housing Element; Strategy LB., and the Eastern Dublin Specific
Plan, Programs 4.F. and 4.0., require the City of Dublin to prepare an Inclusionary Zoning Ordinance; and
WHEREAS, the Planning Commi~sion and City Council held properly noticed public study sessions
to discuss issues related to the development of the Inclusionary Zoning Ordinance on February 6 and March
19, 1996, and
WHEREAS, pursuant to the City of Dublin Housing Element Strategy I.B., the City of Dublin has
prepared a draft Inclusionary Zoning Ordinance as a result of the direction given at these study sessions; and
WHEREAS, Section 8.24.080 (B) of the proposed Jnclusionary Zoning Ordinance provides the
option of paying a fee in-lieu of constructing Inclusionary Units ("In-Lieu Fee"), and states that the City
Council shall establish the amount of the In-Lieu Fee by resolution; and
WHEREAS, the Planning Commission held a public hearing on said draft Ordinance on May 7,
1996, for which proper notice was given in accordance with California State Law; and
. WHEREAS, the Inclusionary Zoning Ordinance 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; and
WHEREAS, an Environmental Impact Report, SCH# 91103064, was prepared for the Eastern
Dublin Specific Plan and General Plan Amendment, and adopted by the City Council on May 10, 1993, with
two Addenda to the FEIR, dated May 4, 1993 and August 22, 1994; and
WHEREAS; the above-noted Environmental Impact Reports addressed impacts of the future
development of the City of Dublin; and which impacts and analysis exceed the impacts of the Inclusionary
Zoning Ordinance; and
WHEREAS, the program proposed in the Inclusionary Zoning Ordinance, including in-lieu fees,
does not raise any new significant environmental issues which were not addressed in the Dublin General Plan
Environmental Impact Report, or the Eastern Dublin Specific Plan and General Plan Amendment
Environmental Impact Report, and therefore a Negative Declaration was prepared for this project; and
WHEREAS, notice of 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 City of
. Dublin Environmental Guidelines and the California Environmental Quality Act (CEQA); and
WHEREAS, a staff report was submitted for P A 96-018, the proposed Inclusionary Zoning
Ordinance, recommending that the Planning Commission recommend City Council approval of said draft
Ordinance; and
EXHIBIT A
WHEREAS, after considering all staff reports, recommendations, and written and oral testimony
submitted at the Public Hearing hereinabove set forth, the Planning Commission adopted a Resolution
recommending City Council approval of the Negative Declaration and adoption of the draft lnclusionary
Zoning Ordinance; and
WHEREAS, the City Council held public hearings on said Ordinance on May 28, 1996, June 11,
1996, and June 25, 1996 for which proper notice was given in accordance with California State Law; and
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WHEREAS, staff reports were submitted for P A 96-018, the proposed Inclusionary Zoning
Ordinance, recommending the City Council's approval of the Negative Declaration, establishment of
methodology for determining amount ofln-Lieu Fee, and adoption of said draft Ordinance; and
WHEREAS, the City Council did hear and consider all said reports, recommendations and testimony
hereinabove set forth.
NOW, THEREFORE, BE IT RESOLVED THAT THE Dublin City Council does hereby find that
the draft Ordinance is consistent with the stated purpose and objectives of the City's Zoning Ordinance,
Municipal Code, General Plan, and Eastern Dublin Specific Plan.
BE IT FURTHER RESOLVED THAT THE Dublin City Council does hereby approve a Negative
Declaration.
AND, BE IT FURTHER RESOLVED THAT THE Dublin City Council does hereby establish the
methodology for determining the amount of the In-Lieu Fee for each development project subject to the
requirements of the lnclusionary Zoning Ordinance, as follows:
1. The In-Lieu Fee shall be based upon a charge of$.75 cents per square foot for multi-family (attached
unit) developments, and $1.00 per square foot for single family (detached unit) developments. .
2, The Fee will be calculated for the average unit size, in square feet, for the total number of units in the
project.
3. There will be no per-unit maximum for the Fee.
4. The Fee will be adjusted periodically, based upon the percentage increase in the Consumer Price Index.
5. The actual amount of the total Fee charged for a project shall be determined at the time of project
tentative map approval.
The above methodology for determining the amount ofthe In-Lieu Fee for each development project subject
to the requirements of the Inclusionary Zoning Ordinance shall take effect as of the date on which the
Inclusionary Zoning Ordinance becomes effective.
PASSED, APPROVED AND ADOPTED this 25th day of June, 1996.
AYES:
NOES:
ABSENT:
Mayor
A TIEST:
City Clerk
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96018\ccreso,doc
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ORDINANCE NO.
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AN ORDINANCE OF THE CITY OF DUBLIN
ADDING CHAPTER 8.24 TO THE DUBLIN MUNICIPAL CODE
ESTABLISHING ZONlNG ORDINANCE PROVISIONS
RELATING TO INCLUSIONARY HOUSING
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
Chapter 8.24 is added to the Dublin Municipal Code to read as follows:
"Chapter 8.24 Inclusionary Zoning
ARTICLE I GENERAL PROVISIONS
Section 8.24.010. Title.
This Chapter shall be called the "Inclusionary Zoning Ordinance of the City of Dublin ".
Section 8.24.020. Findings.
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The City of Dublin finds that the citizens of Dublin are experiencing a housing shortage for very low, low
and moderate income households. A goal of the City's adopted Housing Element is to achieve a balanced
community with housing available for households of a range of income levels. Persons with very low, low,
and moderate incomes who currently live and/or work in the City are increasingly unable to locate housing
at prices they can afford, and often become excluded from living in the City. Federal and State housing
subsidy programs are not sufficient by themselves to satisfY the housing needs of lower and moderate
income"households. The City finds that the high cost of newly constructed housing does not, to any
appreciable extent, provide housing affordable by very low, low, and moderate income households, and that
continued new development which does not include affordable housing will serve to further aggravate the
current housing shortage by reducing the supply of developable land. The City further 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 housing for persons of
all economic segments of the community.
Section 8.24.030. Purpose.
The purpose of this Chapter is to enhance the public welfare and assure that further housing development
contributes to the attainment of the above-described housing goals by increasing the production of
residential units affordable by households of very low, low, and moderate income, and by providing funds
for the development of very low, low, and moderate income ownership and/or rental housing. A limited and
finite amount ofland 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 manner consistent with the City's housing
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EXHIBIT B
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policies and needs, the City declares that FIVE (5) percent of the total number of units of all new residential
developments containing twenty (20) or more units, constructed within the City as it now exists and as m.
be altered by annexation, shall be affordable by households of very low, low, and moderate income,
including ownership and/or rental projects.
Section 8.24.040. 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.
Affordable Rent: A montWy rent (including utilities as determined by a schedule prepared by the City) which
does not exceed the following:
Very- Low-income households: 1/12 of 3 0% of 50% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures generated by the Federal Department of Housing
and Urban Development (HUD)
Low-income households: 1/12 of30% of80% of the annual Median Income Alameda
County, as adjusted for household size, based upon annual income
figures provided by HUn
Moderate-income households: 1/12 of30% of 120% of the annual Median Income for Alameda.
County, as adjusted for household size, based upon the annual
income figures provided by HUn
Affordable Sales Price: A sales price which results in a montWy mortgage payment (including principal and
interest) which does not exceed the following:
For Very- Low-income households: 1/12 of30% of50% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures generated by the Federal Department of Housing
and Urban Development (HUD)
For Low-income households: 1/12 of30% of 80% of the annual Median Income Alameda
County, as adjusted for household size, based upon annual income
figures provided by HUn
For Moderate-income households: 1/12 of30% of 120% of the annual Median Income for Alameda
County, as adjusted for household size, based upon the annual
income figures provided by HOD
Amenities: Interior features which are not essential to the health and safety of the resident, but provide
visual or aesthetic appeal, or are provided as conveniences rather than as necessities. Interior Amenities ma~.
include, but are not limited to, fireplaces, garbage disposals, dishwashers, cabinet and storage space and
bathrooms in excess of one. Amenities shall in no way include items required by City building codes or
other ordinances which are necessary to insure the safety of the building and its residents.
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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.
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City: The City of Dublin or its designee or any entity with which the City contracts to administer this
chapter.
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
an Inclusionary Unit.
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 an Inclusionary unit. Continually shall be construed to
include lapses of residency of no longer than six months.
Dwelling Unit: A dwelling designed for occupancy by one household.
Household: One person living alone; or two or more persons sharing residency whose income is considered
for housing payments.
HUD: The United States Department of Housing and Urban Development or its successor.
. Inclusionary Unit: A Dwelling Unit as required by this Chapter which is rented or sold at Affordable Rents
and/or Affordable Sales Prices (as defined by this Chapter) to Very Low, Low, or Moderate Income
Households.
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Income: The gross annual household income as defined by HOD.
In-lieu Fee: A fee paid to the City by an applicant for a project in the City, in lieu of providing the
Inclusionary Units required by this Chapter.
Life of the Inclusionary Unit: A;ro 20 year period from the date of occupancy, which shall be the date the
City of Dublin performs final inspection for the building permit.
Low Income Household: A household whose annual income is more than 50% but does not exceed 80% of
the annual median income for Alameda County, based upon the annual income figures provided by HUD, as
adjusted for household size. HUD may establish income limits higher or lower than 80% of the median
income for the area on the basis ofits finding that such variations are necessary because of the prevailing
levels of construction costs or unusually high or low family incomes.
Median Income for Alameda County: The median gross annual income in Alameda County as determined
by HUD, adjusted for household size.
Moderate-income households: A household whose annual income is more than 80% but does not exceed
120% of the annual Median Income for Alameda County, based upon the annual income figures provided by
. HOD, as adjusted for household size. BUD may establish income limits higher or lower than 120% of the
median income for the area on the basis of its finding that such variations are necessary because of the
prevailing levels of construction costs or unusually high or low family incomes.
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Off-site Inclusionaty units: Inclusionary Units on land within the City of Dublin other than that on which the
applicant intends to construct market rate units. .
Ownership Units: Those Inclusionary Units developed as part of a residential development which the
Applicant intends will be sold, or which are customarily offered for individual sale.
Proiect owner: Any person, finn, 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.
Proiect: A housing development at one location or site including all dwelling units for which permits have
been applied for or approved.
Property Owner: The owner of an Inclusionary Unit, excepting a "Project Owner".
Rental Units: Those Inclusionary Units developed as part of a residential development which the Applicant
intends will be rented or leased, or which are customarily offered for lease or rent.
Recapture Mechanisms: Legal programs and restrictions by which subsidies provided to Inclusionary Units
will be controlled and repaid to the City and/or other entity upon resale, to insure the ongoing preservation
of afford ability ofInclusionary Units or to insure funds for Inclusionaty Units remain within the City's
affordable housing program.
Resale Restrictions: Legal restrictions by which the price ofInclusionary Units may be controlled to insure.
that the units remain affordable to Very Low, Low, and Moderate Income households on resale.
Silent Second Mortgage: A deed of trust recorded against an Inclusionary Unit which makes the City and/or
other private or non-profit lender the beneficiary.
Unit Type: Various dwelling units within a project which are distinguished by number of bedrooms.
Very Low Income Household: A household whose annual income does not exceed 50% of the annual
median income for Alameda County, based upon the annual income figures provided by HUD, as adjusted
for household size. HOD may establish income limits higher or lower than 50% of the median income for
the area on the basis of its finding that such variations are necessary because of the prevailing levels of
construction costs or unusually high or low family incomes.
ARTICLE IT ZONING REQUIREMENTS
Section 8.24.050. General Requirements/Applicability.
For all new residential development projects of20 units or more, at least 5% of the project's dwelling
units shall be affordable to Very Low, Low, and Moderate Income households. These dwelling units .
shall be referred to as "Inclusionary Units". Inclusionary Units shall be divided among these income
groups by the following ratios:
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2% of the project units must be affordable to Very Low Income households
2% of the project units must be affordable to Low Income households
1 % of the project units must be affordable to Moderate Income households
The Inclusionary Units required for each income category shall be reserved for rent or purchase by eligible
Very Low, Low, and Moderate Income Households. Projects subject to these requirements include, but are
not limited to, single-family detached dwellings, townhomes, apartments, condominiums, or cooperatives
provided through new construction projects, and/or through conversion of rentals to ownership units.
The percentage ofInclusionary Units required for a particular project shall be determined only once on a
given project, at the time of Tentative Map approval, or, for projects not processing a map, prior to issuance
of building permit. If the subdivision design changes, which results in a change in the number of
Inclusionary Units required, the number of Units required shall be recalculated to coincide with the final
approved project. In applying and calculating the five (5) percent 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.
An Affordable Housing Agreement, discussed further under Section 8.24.070 of this Chapter, shall be used
to document and further define the terms by which projects subject to this Ordinance will comply with its
requirements.
Section 8.24.060. Unit Provisions and Specifications
A.
Inclusionary Units shall be dispersed throughout the project.
B. Inclusionary Units shall be constructed with identical exterior materials and an exterior
architectural design whichis consistent with the market rate units in the project.
C. Inclusionary 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.
D. . Inclusionary Units shall remain affordable for tflit:ty twenty years. Deed restrictions shall be
recorded subjecting the Rental Units to maximum rental prices. When Inclusionary Ownership
Units are constructed and offered for sale at a price which will maintain its affordability due to the
Unit's design and size, no Resale Restrictions should be necessary. However, Ownership Units
may require such restrictions recorded with the deed if necessary to address the recapture of value
increases, in situations where units are not sold at substantially lower prices than market rate units,
or when the units may lose affordability as the market changes. For units which require subsidies
to attain an Affordable Sales Price, Resale Restrictions shall be recorded with the deed to
recapture the subsidy upon resale (unless the unit is resold at an Affordable Sales Price and to an
eligible household). The discussion of Resale Restrictions is addressed in Section 8.24.070 of this
Chapter. Prior to the original sale, or any resale, of such Units, the buyer(s) shall sign an
acknowledgment that they are aware of the requirements of this Chapter, any deed restrictions,
and any declaration of conditions, covenants, and restrictions, as applicable.
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E. All Inclusionary Units in a project shall be constructed concurrently within or prior to the
construction of the project's market rate units, unless the City Manager determines that
extenuating circumstances exist which render this infeasible (e.g., physical or financial difficulties.
F. Purchasers of Ownership Inclusionary Units shall be required to occupy the Unit except when
otherwise approved by the City Manager. In order to approve exceptions, evidence must be
presented to the City Manager showing that the owner is temporarily unable to occupy the Unit
due to extreme circumstances, such as illness or incapacity, or extreme financial hardship. In such
cases, the City Manager may approve rental of the Inclusionary Unit to households meeting the
same income level requirements as the owner for a limited time, but in no instance exceeding a
twelve~month period. If an exception is approved, the City may stipulate whether the unit must be
rented to a household of a certain income category, and at an Affordable Rent.
G. In determining the appropriate household size per unit, for purposes of calculating Affordable
Rent or Affordable Sales Price, dwelling Unit Types shall be assigned as follows:
Studio Unit
One Bedroom Unit
Two Bedroom Unit
Three Bedroom Unit
Four or more Bedroom Unit
One Person
Two Persons
Three & Four Persons
Five Persons
Six or more Persons
H. Dublin residents who are senior citizens (65 years of age or older) shall be given first preference
for Inclusionary Units; Dublin residents who are first-time homebuyers shall have second .
preference; other Dublin residents shall have third preference; fourth preference shall be given to
those who need to move to Dublin to be near Dublin residents or services.
Section 8.24.070. Affordable Housing Agreement
An Affordable Housing Agreement shall be entered into by the City and the Project Owner. The Agreement
shall record the method and terms by which a Project Owner shall comply with the requirements of this
Chapter. The approval and/or recordation of this Agreement shall take place prior to final map approval or,
where a map is not being processed, prior to the issuance of building permits for such lots or units.
Two types of Agreements shall be used by the City.
1. When an Applicant pays a fee in-lieu of constructing Inclusionary Units, a simple In-Lieu Agreement
form shall be entered into between the Project Owner and the City Manager to document that the
Applicant has chosen the In-Lieu Pee option, and shall be submitted to the Community Development
Department.
2. When an Applicant provides Inclusionary Units constructed with a project, a complete Affordable
Housing Agreement shall be required, to document and further define how these units shall be
provided at Affordable Sales Prices and reserved for purchase by eligible Households, and how the
affordability of the Inclusionary Units will be preserved.
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Additional terms and conditions of the Affordable Housing Agreement may be determined at the time of
each project approval and/or at the time the parties enter into the agreement. Further aspects of the
Agreements are discussed below.
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A. Rental Units
Applicants of a project which will provide Rental Units shall enter into an Affordable Housing Agreement
with the City prior to issuance of any building permits for the project, to document and further define how
these units shall be provided at Affordable Rents and reserved for rent by eligible Very Low, Low, and
Moderate-Income Households.
The City shall prepare an annual statement establishing the maximum rent levels and income limits for each
household income category. These levels may be adjusted by the City at periodic intervals as new tables are
published by the Federal, State, or local government agencies.
The management of Rental Units shall be the responsibility of the Project Owner. The Affordable Housing
Agreement shall require each Project Owner to submit an annual status report to the City Manager in a
format approved by the City, including additional information as required by the City. This report may
include, but is not limited to identification of which units are Rental Units, their montWy rents, vacancy
information for the prior year, montWy income for tenants of each Rental Unit throughout the prior year,
and similar information. The Affordable Housing Agreement shall be signed by the City Manager or his/her
designee, shall be recorded, and shall run with the land.
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B. Ownership Units
When an Applicant provides Inclusionary Units constructed with a project, the Affordable Housing
Agreement shall document and further define how these units shall be provided at Affordable Sales Prices
and reserved for purchase by eligible Very Low, Low, and Moderate-Income Households, and how the
ail'ordability of the Inclusionary Units will be preserved.
This Agreement may include, but is not limited to, designation of the Inclusionary Unit sites, schedule of
construction of units, terms and conditions governing the initial sale or rental payments of units,
purchaser/renter qualifications, monitoring of rent/resale, and restrictions on resale where applicable.
The Affordable Housing Agreement for Ownership Units shall specify that the Inclusionary Units must be
occupied by the owner(s) and cannot be rented except upon approval of the City Manager. The Agreement
shall also grant the City the right offirst refusal to purchase an Inclusionary Unit each time it is sold.
Prior to the original sale, or any resale, of an Ownership Unit, the buyer( s) shall sign an acknowledgment
that they are aware of the requirements of this Chapter, the Affordable Housing Agreement, any deed
restrictions, and any declaration of conditions, covenants, and restrictions, as applicable. The Affordable
Housing Agreement shall be signed by the City Manager or his/her designee, shall be recorded, and shall run
with the land.
Mechanisms which may be utilized in the Affordable Housing Agreement for ensuring affordability for the
. Life of the Inclusionary Units include, but are not limited to, the following:
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1. Affordable by Design
In projects which provide Inclusionary Units at Affordable Sales Prices by virtue of the unit design, n.
resale restrictions are necessary. In these situations, an Affordable Housing Agreement is only
required to document the method by which the project has complied with the Ordinance, and to define
or address specific project issues. However, in order to avoid deed restrictions on resale of the Units,
Inclusionary Units must be sold at substantially lower prices than market rate units, and be reasonably
expected to maintain their. affordability as the housing market changes. For units which require
subsidies to attain an Affordable Sales Price, restrictions shall be recorded with the deed to recapture
the subsidy upon resale, as described in Section 2 below. The City Council shall determine whether a
project is Affordable by Design.
2. Recapture Mechanisms
In cases where Inclusionary Units are provided at Affordable Sales Prices via project subsidies, the
value of the subsidy shall be recorded with the property deed as a "Silent" Second Mortgage. The
subsidy shall be considered the monetary difference between the initial Affordable Sales Price, and the
initial appraised market value.
The Affordable Housing Agreement will state the Affordable Sales Price and target income level at
which Inclusionary Units in a particular project are initially sold, and should be resold. This target
level should coincide with the level which is affordable to the same income category and household
size for which the unit was designated when originally sold. If the unit is resold to a qualifying .
household at an Affordable Sales Price, the second mortgage will be transferred to the new owner. I
the unit is resold at market rate, the Silent Second Mortgage will be paid off.
The amount of the Silent Second Mortgage would be recaptured by the City and/or other financial
entity participating in a shared equity program under the Affordable Housing Agreement. These
recaptured funds will be placed into the affordable housing fund, to be utilized for providing affordable
housing consistent with the intent of this Chapter.
The montWy payments of principal and interest for the subsidy or loan may be waived as long as an
eligible buyer continues to own and reside in the Inclusionary Units as his or her primary residence, or
unless an exception is approved by the City, in accordance with Section 8.24.060.(F).
The City Manager or his designee shall be responsible for monitoring the sale, occupancy and resale of
Inclusionary Units.
Section 8.24.080. Alternatives to constructing Inclusionary Units on-site
The requirements of this Chapter may be satisfied by various methods other than the construction of
Inclusionary Units on the project site. Some examples of alternate methods of compliance appear below.
As housing market conditions change, the City may need to allow alternatives to provide options to
Applicants to further the intent of providing affordable housing with new development projects. .
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A. OfT-Site Projects
Inclusionary Units required pursuant to this chapter may be allowed to be constructed at a location
within the City other than the project site. Any off-site Inclusionary Units must receive approval of the
City Council and must meet the following criteria:
(1) The off-site Inclusionary Units must be determined to be consistent with the City's goal of
creating, preserving, maintaining, and protecting housing for Very Low, Low, and Moderate Income
Households.
(2) The off-site Inclusionary Units must not result in a serious concentration oflnclusionary
Units in anyone particular neighborhood.
(3) The off~site Inclusionary Units shall conform to the requirements of all applicable City
Ordinances and the provisions of this Chapter.
(4) The occupancy and rents of the off-site Inclusionary Units shall be governed by the terms of a
deed restriction, and if applicable, a declaration of covenants, conditions and restrictions similar to that
used for the on-site Inclusionary Units.
An Affordable Housing Agreement shall be established between the City and Applicant stipulating the
terms of the off-site production ofInclusionary Units. If the construction does not take place at the
same time as project development, the agreement shall require the Units to be produced within a certain
time frame, but in no event longer than 10 years. A cash deposit or bond may be required by the City,
refundable upon construction, as assurance that the units will be built.
B. In-lieu Fee Option
A fee may be paid by an Applicant in lieu of providing Inclusionary Units in the project. This fee must
be paid prior to the issuance of the first building permit for the project. The amount of In-Lieu Fees shall
be established by resolution of the City Council. The In-Lieu fee shall be adjusted periodically to reflect
the change in the Consumer Price Index (CPI), and may also be adjusted as necessary for changing
conditions in the City. If a project provides a portion of the required number of Inclusionary Units on
the project site, the amount of the In-Lieu fee will be reduced by a percentage which is equivalent to the
percentage of Inclusionary Units provided in each income category.
C. Land Dedication
An Applicant may dedicate land to the City or a local non-profit housing developer in place of actual
construction ofInclusionary Units upon approval of the City Council. The intent of allowing a land
dedication option is to provide the City or a local non-profit housing developer the free land needed to
make an Inclusionary Unit development feasible, thus furthering the intent of this Chapter.
The dedicated land must be appropriately zoned, buildable, free of toxic substances and contaminated
soils, and large enough to accommodate the number ofInclusionary Units required for the project. The
City's acceptance of land dedication shall require that the lots be fully improved, with infrastructure,
adjacent utilities, grading, and fees paid.
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D. Other flexible solutions
Applicants may propose creative concepts for meeting the requirements of this Chapter, in order to bria
down the cost of providing Inclusionary Units, whether on or off site. The City Council may approve
alternate methods of compliance with this Chapter if the Applicant demonstrates that such alternate
method meets the purpose ofthis Chapter (as set forth in Section 8.24.030).
Section 8.24.090. Credit Transfers
The requirements of this Chapter may be satisfied by transferring Inclusionary Unit credits from one site to
another, upon approval of the City Council, and as set forth herein. Transfer credits may be created if the
City Council approves issuance ofa specified number of Credit Certificates for that number ofInclusionary
Units provided by a particular Project Owner in excess of the minimum required for the project Credit
Certificates, when approved, shall be issued for the specific Income Category for which the unit is designed,
according to the number of rooms and Affordable Sales Price.
Credit Certificates are issued to and become the possession of the Project Owner, who may then use them to
satisfy the requirements of this Chapter for another project in the City, whether developed by the same
Project Owner or another developer. If a Project Owner sells Credit Certificates to another developer, the
parties shall report the transaction to the Community Development Director, who will document the transfer
by Certificate number. When the Credit Certificate is applied to meet the Inclusionary Unit requirement of a
particular project, it shall be recorded at the time of project approval, and the subject Certificates must be
returned to the Community Development Director. .
The Inclusionary Units for which a Credit Certificate is sought shall meet all of the criteria of this Chapter.
Credit Certificates issued for specific Income categories may only be used to satisfy the requirements for
Inclusionary Units for the same Income category (Very Low, Low, or Moderate). The City Council shall
determine the appropriate Income category for each Credit Certificate issued. The Inclusionary Units for
which Credits are granted shall have resale controls applied to ensure their ongoing affordability. Terms of
the Credit Transfer shall be included in the Affordable Housing Agreement
Section 8.24.100. Inclusionary Housing In-Lieu Fee Fund.
In-lieu Fees shall be deposited into a fund known as the "Inclusionary Housing In-Lieu Fees Fund" ("Fund").
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 through Silent Second Mortgages, land
acquisition, land writedowns, construction, contributions to non-profit associations or corporations for
construction of housing, land banking (including property exchanges) and any other mechanism available to
the City to provide Very Low, Low, and Moderate income housing.
The monies in the Fund shall be used or committed to use within seven (7) years of the date of payment into
the Fund. Monies from a particular project which remain unexpended or uncommitted at the end of the
seven year period may be refunded to the then-current Property Owners or Project Owner or may be
contributed to a non-profit association .or corporation for the purpose of providing Very Low, Low, and .
Moderate income ownership housing in Dublin, at the option of the City Council.
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The City Manager shall prepare an annual report for the City Council identifying the balance of monies in the
Fund and the lnclusionary Units provided and any monies conunitted to providing Very Low, Low, and
Moderate Income housing. The annual report shall also include a review of administrative charges.
.
Section 8.24.110. Incentives to encourage On-site construction of Inclusionary Units
The City shall consider making available to the Applicant incentives to increase the feasibility of residential
projects to provide lnclusionary Units. Incentives or financial assistance will be offered only to the extent
resources for this purpose are available arid approved for such use by the City Councilor City Manager, as
defined below, and to the extent that the Project, with the use of incentives or financial assistance, assists in
achieving the City's housing goals. However, nothing in this chapter establishes, directly or through
implication, a right of an Applicant to receive any assistance or incentive from the City.
Any incentives provided by the City shall be set out in the Affordable Housing Agreement pursuant to
Section 8.24.070 of this Chapter. The granting of the additional incentives shall require demonstration of
exceptional circumstances which necessitate assistance from the City, as well as documentation of how such
incentives increase the feasibility of providing affordable housing,
The following incentives may be approved for Applicants who construct lnclusionary Units on-site:
A. Fee Deferral
.
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, and require Agreement by the Project Owner, prior to any City
Department authorizing deferral.
The City Council, by Resolution may defer payment of City development impact fees applicable to the
lnclusionary Units or~he project of which they are a part. Approval of this incentive requires
demonstration by the Applicant that the deferral increases the project's feasibility. The Affordable
Housing Agreement for the project shall document and address the terms of payment and contain
language which assures payment of such fees.
B. Design Modifications
The granting of design modifications shall require the approval of the City Council. Modifications to
typical design standards include the following:
.
- Reduced setbacks
- Reduction in infrastructure requirements
- Reduced open space requirements
- Reduced landscaping requirements
- Reduced interior or exterior amenities
- Reduction in parking requirements
~ Height restriction waivers
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C. Priority Processing
A Project which provides Inclusionary Units may be entitled to priority processing, subject to the _
approval of the City Manager. A Project eligible for priority processing shall be immediately assigned t~
planning staff and processed in advance of all non-priority items. The Project shall be scheduled for the
next available meeting of the Planning Commission and/or City Council, upon meeting all submittal and
environmental review requirements. When more than one Project qualifying for priority processing is
applied for at the same time, first priority will be given to the Project whose application was determined
to be complete earlier.
ARTICLE ill
MISCELLANEOUS
Section 8.24.120.
Administration
The City Manager may establish guidelines for administering the provisions of this chapter. The City may
contract with the Dublin Housing Authority, the Alameda County Housing Authority, or other entity to
administer any provisions of this chapter.
Section 8.24.130. Availability of government subsidies.
The requirements for Inclusionary Units shall not be reduced by the availability of government program
subsidies, nor precluded by the use of such programs and subsidies.
Section 8.24.140. Conflict of Interest.
.
Individuals who, by virtue of their position or relationship, are hereby found to be ineligible to purchase or
rent an Inclusionary Unit as their residence include all employees and officials of the City of Dublin who
have, by the authority ~c;>f their position, policy making authority or influence affecting City housing
programs, and the Project Applicant and Project Owner.
Section 8.24.150. Violations.
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. 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.
Section 8.24.160. Enforcement.
The City Manager is designated as the enforcing authority. The City Manager may suspend or revoke any
building permit or approval upon finding a violation of any provision of this chapter. The provisions of this .
chapter shall apply to all agents, successors and assigns of an Applicant. No building permit or final
inspection shall be issued, nor any development approval be granted which does not meet the requirements
of this chapter.
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.
In the event that it is determined that rents in excess of those allowed by operation of this Chapter have been
charged to a tenant residing in an Inclusionary 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 8.24.170. Appeals.
Any person aggrieved by any action or determination of the City Manager under this ordinance, may appeal
such action or determination to the City Council in the manner provided in Section 1.04.050 of the
Municipal Code."
Section 2. 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 3. Effective Date and Postim~ of Ordinance
.ThiS ordinance shall take effect and be in force thirty (30) days from and after the date of its final adoption. The
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 39633 of the Government Code of California.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF DUBLIN on
this 9th day of July, 1996, by the following votes:
Ayes:
Noes:
Absent:
Abstain:
Mayor
Attest:
City Clerk
.
MINOR REVISIONS MADE BY CIIT COUNCIL ON MAY 28,1996 AND JUNE 11. 1996 PRIOR TO ADOPTION OF ORDINANCE ARE
SHOWN IN ITAllCS
\pa#\1996\pa960 18\1996ord, doc
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