HomeMy WebLinkAbout8.1 Hsng Pgm& Inclus Zn Ord Jnt Stdy
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CITY CLERK
File , O~Il2-[]1E
AGENDA STATEMENT
CITY COUNCIUPLANNING COMMISSION ,. .
SPECIAL MEETING DATE: FEBRUARY 6,1996
SUBJECT:
EXHIBITS ATfACHED:
City of Dublin Housing Program & Inclusionary Zoning Ordinance
Report Prepared by: Tasha Huston, Associate Planner 1"'*'
Exhibit 1.
Exhibit 2.
Supplemental Dublin Housing and Income data
Agenda Statement/Staff ~eport from Planning
Commission Study Session on January 3, 1996
Housing Issues Worksheet
Exhibit 3.
RECOMMENDATION: .
tycI' P~vide Staff with guidance on Iss~es and Gui.ding P~nciples and
. . direct Staff to prepare draft IncluSlonary Zonmg Ordmance.
FINANCIAL STATEMENT:
DESCRIPTION:
The City Council has authorized obtaining consulting services for
, assistance in evaluating Dublin's existing housing programs and
preparing the Inclusionary Zoning Ordinance. The consultant services
were not to exceed $ 10,000, to be paid using funds from the Planning
Department's Professional Services account.' (The City is in the
process of establishing a method for recovering any costs associated
with implementing the Eastern Dublin Specific Plan. A portion of
these contract costs will be recovered through the processing of future
development projects within the Eastern Dublin Specific Plan area.)
For consultant services petfonned thus far, the City has used over half
of the approved contract funds. Depending upon the amount of
consultant input needed, as well as the number of meetings necessary
to study the housing issues and achieve consensus on a preferred
approach, there may be a need to increase the amount allocated for
consultant services.
The Dublin Housing Element identifies various programs intended to implement the affordable housing goals
of the City, including the adoption of an Inclusionary Housing Ordinance. The Eastern Dublin Specific Plan
directs that the City shall adopt an Inclusionary Housing program. In order to ensure that the City's overall
housing strategy is applied and developed into a feasible and workable program under today'shousing
market, staff has been working with planning consultants, utilizing their assistance to address the affordable
housing issues in the City of Dublin related to the Inclusionary Zoning Ordinance. The consultants have
assisted staffin evaluating the City's established goals, and recommending options for implementing these
goals, focusing on the immediate need of adopting an Inclusionary Housing Ordinance.
A study session before the Planning Commission was held on January 3, 1996. At this meeting, the
Commission reviewed a substantial amount of background data, including the Citfs established policies
for adoption of the Ordinance, and information on Dublin housing construction, and household income.
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The study session then involl a discussion of potential guiding Prit~les for the Ordinance, and a
listing of specific issues related to developing and implementing the Inclusionat)' program, However,
the meeting did not result in decisions regarding the detailed issues and principles. The Planning
Commission requested additional statistical data for the City's current housing and income situation,
including the breakdown of Dublin households who are in the very low, low, and moderate income
categories, The staff and consultants have assembled this information, and it is attached as Exhibit 1 to
this staff report,
The staff report from the Planning Commission Study Session on January 3, 1996 is also attached (Exhibit
2) to give background data and restate existing City goals and objectives related to thelnclusionary
Ordinance. A summary of the background information included in the January 3, 1996 Planning
Commission Staff Report, as well as the additional information attached, will be presented at the
February 6 study session meeting.
It is hoped that with the information now available, the Commission and Council will be informed and
may begin to formulate ideas and provide direction regarding the affordable housing issues facing the
City. This direction and guidance is needed so that an Inclusionary Zoning Ordinance can be drafted
which meets the needs and desires of the City,
The primary purpose of this staff report is to provide a structure for the decisions needed-on the policy
issues affecting the main components of the Inclusionary Zoning Ordinance. These decisions will be shaped
by the more general guiding principles which the City formulates based upon its Housing Goals and
Objectives. (See Exhibit 2, Planning Commission Staff Report, for further discussion on guiding principles).
To assist in working through the issues surrounding the development of this ordinance, a worksheet is
provided as Exhibit 3 to this staff report. This worksheet may be used prior to the meeting to help focus
ideas, and we hope to have complete worksheets from each member of the Planning Commission and
City Council by the end of the Study session. These worksheets, along with any consensus decisions
made at the Study Session, will then be used for preparing a draft Inclusionary ZOning Ordinance,
Once the draft Ordinance is prepared, Public Hearings for its adoption will be held before the Planning
Commission and City Council, paving the way fOf the City's Inclusionary program to be in place prior
to development occurring in Eastern Dublin
INCLUSIONARY ZONING - GUIDING PRINCIPLES
The City's General Plan directs that the Inclusionary Zoning Ordinance would require developers to
provide a minimum percentage of affordable housing units as part of all new residential developments
of20 or more units. One of the general characteristics of an Inclusionary program is that it could
provide affordable housing that is dispersed throughout the community, Alternative ways of meeting
the requirements, such as paying a fee in lieu of constructing the affordable units, could also be
considered.
The existing City goals and policies include some elements which dictate specific requirements for the
Inclusionary Zoning Ordinance, and others which allow some flexibility. For example, it is clear from
the Housing Element, Strategy 1.B, that Dublin's Inclusionary Zoning Ordinance would apply to
development projects with a minimum size of 20 housing units. There is no flexibility in this
fequirement unless the City wishes to amend the Housing Element.
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However, for those policies Ahich the City has flexibility, decisioam need to be made in order to
design the Inclusionary Zoning Ordinance. Developing guiding principles which define some of the
Ordinance's objectives would help with making these decisions. The guiding principles should be based
upon the consensus beliefs of the City decision makers, as they will shape the decisions on the more
detailed issues surrounding adoption of an Inclusionary Ordinance. The principles may be established
in advance, or they may evolve as the discussion of more detailed housing issues occurs. The attached
staff report from the January 3 Planning Commission Study Session gives sample guiding principles
used in another nearby city, for Dublin's consideration. The attached worksheet provides a format for
the City to develop guiding principles which will shape decisions on the detailed ordinance issues.
INCLUSIONARY ZONING - ISSUES
The following list of issues will need to be considered in the development of the IncIusionary Zoning
Ordinance. The worksheet attached to this staff report provides the structure for the Council and
Commission to initiate discussion of and respond to these issues. Further discussion of the options
available, their impacts, and examples from surrounding cities, is planned for the Study Session.
I. REGULATORY REQUIREMENTS
. Minimum project size - Housing Element calls for 20 units as minimum size of a project which will
be subject to the inclusionary'regulations
. Percentage of the units in each project that would be affordable - For example, 5%, 10%, 15%, etc
. Targeted income group - very low, low and/or moderate; One option could be using City's current
greatest need as a basis; Another possible basis could be ABAG targets (see page 5 of January 3
Planning Commission Staff Report for table showing ABAG housing goals)
. Breakdown of targeted income groups - % of affordable units required for each income level
. Product type requirements (i.e.: rental and ownership projects subject to the same requirements?)
. How to set rents/sales prices for Inclusionary units
. Resale Restrictions
. Term of affordability - For example, 5 years, 10 years, 30 years, permanent
II. OPTIONS
. Allow inclusionary unit obligation to be provided off site
. Allow use of fees in lieu of constructing affordable units
. Calculation of in-lieu fees
. Credit for providing more than the required number of units
. Incentives (fee waivers, priority processing, reduced site design standards, etc.)
RECOMMENDATION
Staff recommends that the Planning Commission and City Council consider the information presented,
provide the staff with guidance on the recommended .Guiding Principles and Issues for the Inclusionary
Zoning Ordinance, and direct staff to prepare a draft Ordinance.
g:\inclhsg\sr2~96,doc
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SUPPLEMENTAL HOUSING AND INCOME DATA
FOR DUBLIN HOUSEHOLDS
AND ALAMEDA COUNTY
The enclosed tables illustrate the information regarding Dublin's housing and income
situation requested by the Planning Commission at the January 3, 1996 Study Session,
The tables on the first page show income levels and distribution, and provide the
affordable home price and ren~ ranges for Dublin households.
The tables on the second page show the number of affordable housing units at each
income level in the City, compared to the number of households at each income level.
The tables represent actual survey information obtained from the 1990 census counts, and
estimates for 1995,
Tables 3 and 4 show the distribution of units at various housing values and rents, in the
City and in Alameda County.
The tables on the fifth page show the breakdown of households for each income category
in the City and County.
Table 6 gives background information on the general population and housing
characteristics for the City from the 1990 Census.
A summary of the background information included in the January 3, 1996 Planning
Commission Staff Report, as well as the additional information attached, will be
presented at the February 6 study session meeting.
EXHIBIT 1
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Income and Housing Affordability Ranges (1995)
City of Dublin
Table l..A
Affordable Home Price and Rent Ranges
by Household Income Level
for a Family of Four (1995)
Affordable Home Affordable
. Income iLevel Price Ranges [1] Rent Ranges [2]
, I $173,749
Area Median $1,335
: I
VerYl?~ · $Ote $68,485 $Ota $643
Low , $68.489 to $134,508 . $644 to $1,058
Moderate $134,512 to $215,552 $1,059 to $1,611
Above 'Moderate $215,555 or more $1,612 . or more
Table l..B
Income Level Definitions
for a Family of Four (1995)
Income Level . Definition Income Ranges
Area M~dian County Median $55,400
Very L~ 0~50% of Median $Ote $27,700
Low .; 51..80% of Median $27,701 to $44,320
Modera,e 81..120% of Median $44;321 t~ $66,480
. Aoove'Moderate Above 120% of Median $66,481 & above
.. .' '.. .' Table 1..C
. . Diftributicin of Dublin Households by hlcome Level (1995)
Income!Level :
rea " an
Very I.dw .
. , I
LOw ., .
I
Moderate
Above: Moderate
Total Households .
%of Households
, I
,
613
878
lr355
4,722
7,568
8.1%
11.6%
17.9%
62.4%
100.0%
[1] As5~inga 3D ye~ mortgage, 8% interest, 10% downpayment. property" taXes
. at 1 ~ on a $200.000 house, and propertVinsur:mce at $67 per month, .
[2], .As~ng a $50 per month utility allowance.
Source: HUD lncome Guidelines. March 4. 1995.
T.HsgAf{ordabilitylV95.Dub 2/1/96
Seifel Associates
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Table 3
Housing Value Ranges (1990 Census)
Dublin and Alameda County
, ,
,Value'
$0 to $99,000
$100,000 tb $199,000
.$200,000 ty $199,000
$300,000 or more
Median Vdlile'
~ i'; :
City of Dublin
Number
43
817
2,423
1.JM
4,430
Percent
1%
18%'
55%..
26%
100%.
',Alameda County
Number
16,773
67,830
78,954
54.168
2~ 7,725
$i2~ ,300
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$240,900
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. :'30% j '.. + .. p p -- -
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,: $Oto,$iocl,OOO
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'SOurce: 1990l.Jl.S; CensuS:'
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'$300,060
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8%
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36%
25% .
100%
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Table 4
Rent Ranges (1990 Census)
Dublin and Alameda. County
. .. ....
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City of Dublin
Alameda County;
. .
Number
17 718.
. ,'. .
63,1 ?~
89"OSJ ..
_.. .,..1
36,17.1
.. 11,832
217,953..
S626"
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60% ..
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50% I . - i-.Dublin
r I I .
40% ~ ._\~AIamedl(. ~'-- ~ - _. .
I ., .. ." .
.... ~~.l..':~;,.~:,<i . :_: . . '., .. i. .:.., .
$Ot6$250';: '$500:".. '$750:$1,000., ::'
$149 to ..to::::, -'.' ..' to ,.1 ' or.
.J. ,. . . '$499: ,i. $749>:, $999 'more'
.,.
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Rent Ba~2e
$0 to $'l49 ' .
$25b~dl$499
550q rdl'$7.49:
$750 cd>> $999
$l,OOqot more
Nwnber .
.... 9.8'
. '.
.89.-
-.682.
..1,221
t8l:. 11.9%
2,372 ':, ,::. 100.0% .
. Percent
4.1%
. 3.'7%
28.8%
51.5%
; .
;
Medii Rent'
".' ,:
$811 .'
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'29.0%
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IhcoItle and Affordability Characteristics (1990 Census)
. .
Dublin and Alameda County
. i"1
. !
mco.
Table 5#A
Area Median Income. in 1989
Alameda Cou~ty Income Data
Income .Level Definition
. ... ~ ': : ColinijMedian
O.50%'q{ Me4ian
51#80%-o'fMedi'an .
81.120% of Median
-' Above 120% of Median
,.".', ..
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ND~e: ~~n~ ine'du.mhricbi:ne is based on median 'horisehoid size; 2:59 pe~son ~~hdld::, "
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(Note:: Incofndi .,he b~~~dti; 2;59 person perhQUsehold .iiiAlaineda COunty and 2.SC1l'lrlJ DUbliri~'
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Table 5#B.
'., '>i 'Incom~ Distribution in'1989
: ::: city of- D~lfu' &: . Alameda CQunty
'I'~ ~<::. .':. ~ - _ i .~. . I "'1.. ", .:' ~ '. .z-
Ci: ."of'Dublin
Total. :;~ :P~~ent of
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. Table 6
G~neral PopUlation and Housing Characteristics (1 ~d Census)
Dublin and Alameda County .
I
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T ~tal rOPUI!itiO .
Group Qua~ers ~
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Alameda Count
Number' Percent
1,276,702
34,634
Dublin
Nu~ber Perce t
12312:9
3;7)3
16%
3%
1,242,068
.19;479: .
:':
479,518
2.59
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r-
504,109
. 24,591
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255,386
224.,1:32:
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. $ 64 '1 .... I..r . .- . .
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. ., 78'180' I' "",.,1. ..~ '..',>.'(. .<~:;..~
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e
CITY OF DUBLIN
PLANNING COMMISSION
AGENDA STATEMENT/STAFF REPORT
Study Session Date: January 3, 1996
TO:
Planning Commission
Planning Staff.Jf r;tc/
Tasha Huston, Associate Planner ;JtK
FROM:
PREPARED BY:
SUBJECT:
City of Dublin Housing Program & Inclusionary Zoning Ordinance
GENERAL TNFORMATION
PROJECT:
Implementation of the City of Dublin Housing Program by adopting an
Inclusionary Zoning Ordinance
APPLICANT:
City of Dublin
LOCATION:
City-wide
APPLICABLE REGULATIONS
ENVIRONMENTAL REVIEW: A study session is considered a categorical exemption pursuant to the
California Environmental Quality Act (CEQA), State CEQA Guidelines. The Inclusionary Zoning
Ordinance will be subject to environmental review, and a Negative Declaration will likely be prepared.
NOTIFICATION: Public Notices of the January 3, 1996 Planning Commission Study Session were
posted in public buildings, published in the local newspaper, and mailed to interested parties.
BACKGROUND
California State Law requires the City to adopt a Housing Element as part of its General Plan, which
includes goals, objectives, and policies for the provision of housing in the community. The Housing
Element must include a program intended to provide for the housing needs of all economic segments
of the community. The Dublin General Plan establishes a guiding policy for Housing Availability
which requires the City to "Encourage housing of varied types, sizes and prices to meet current and
future needs of all Dublin residents". In further defining this guiding policy, the Dublin Housing
Element identifies various programs intended to implement the housing goals of the City, including the
1
EXHIBIT 2
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adoption of an Inclusionary Housing (Zoning) Ordinance, The Eastern Dublin Specific Plan also directs
that the City shall adopt an Inclusionary Housing program,
The lnclusionary Zoning Ordinance is proposed to help achieve one of the City's housing element
policy objectives, which reads: "Require the development of housing for lower income households"
(Dublin Housing Element, Strategy LB, Page 47).
In August of 1991, the Planning Commission reviewed a draft Inclusionary Housing (Zoning)
Ordinance proposed for adoption by the City. The Planning Commission requested changes to the
Ordinance and the revised Ordinance was returned for review at the November 4, 1991 meeting. After
reviewing the draft Ordinance's provisions in detail, the Commission decided to continue the discussion
of the ordinance to an undetermined date, in order to investigate various options for the provisions of
the program, However, due to the emergence of other higher priority projects and issues, work on the
ordinance was delayed until 1995,
Staff has conducted a substantial amount of research during the past few months, and as a result of this
research and input, has prepared,the following report, The background information and technical data
contained in this report will provide the tools for guiding an affordable housing discussion for the
upcoming Study Session,
The purpose of this Study Session is to begin with a review of Dublin's affordable housing goals and
strategies, especially as they relate to the Inclusionary Zoning Ordinance, A major section of this
report addresses the City's established policies for adoption of the Ordinance. The study session will
then include a review of potential guiding principles and issues related to developing the Inclusionary
program, The Staff will seek input and guidance from the Planning Commission regarding these issues
and principles so that an Inclusionary Zoning Ordinance can be drafted which meets the needs and
desires of the City. A similar study session will also be held before the City Council.
REPORT
DUBLIN'S HOUSING NEED AND ACCOMPLISHMENTS
To help understand why the goals, objectives, and strategies of the Housing Element were formulated
in the first place, an assessment of the City's existing housing units and housing needs is useful. The
housing needs assessment begins with a look at housing costs compared to City residents' incomes.
The State Department of Housing and Community Development publishes an annual report listing the
income categories for each County. Income categories are defined in terms of ranges which represent a
certain percentage of the area median income. For example, for a family income to be considered
"Very Low", it must be at or below 50% of the County median income. A family income which is
considered "Low" includes those households which fall between 51 % and 80% of the County median
income. The following chart lists the annual income for various types of households, and is based upon
the Alameda County Median Income of $55,400 for a family of 4:
2
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F AMIL Y SIZE
INCOME CATEGORY 2 3 4 5
Very Low Income Families $ 22,150 $ 24,950 $ 27,700 $ 29,900
(50% of Median Income and below)
Low Income Families $ 35,450 $ 39,920 $ 44,320 $ 47,840
(51 %R80% of Median Income)
Moderate Income Families $ 53,160 $ 59,880 $ 66,480 $ 71,760
(81%RI20% of Median Income)
NOTE: The income figures shown in the chart represent the maximum end of the income range,
The above information on annual income may be better understood by comparing these income
categories to some typical job descriptions. Below is a table listing the annual salaries of various
typical jobs, arranged according to the income category based upon a family of four (assuming one
worker per household),
TYPICAL SALARIES
Very Low Income for a family of four ($ 27,700 or less)
Stock Clerk (non-union)
Food Preparation Worker (union)
Cashier (union)
Watch Guard (in-house)
Food Service Manager
Secretary (City of Dublin)
Licensed Vocational Nurse
Bookkeeper (union)
Plumber (non-union)
Truck Driver-Light (union)
$14,000
$15,000
$16,700
$19,500
$21,400
$25,584
$25,000
$25,700
$27,400
$27,500
Low Income for a family of four ($ 27,701-$44,319)
Electrical Technician
Paralegal
Physical Therapist Assistant
School Teacher
Surgical Technician
Truck Driver- Heavy (union)
Bus and Truck Mechanic (union)
Machinist (union)
Firefighter
Chemical Technician
Police Officer
$28,100
$28,300
$29,400
$30,900
$32,000
$33,900
$34,000
$36,300
$37,500
$41,200
$42,300
3
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e
Moderate Income for a family of four ($44,320-66,480)
Carpenter (union)
Plu,mber (union)
Computer Programmer
Heating, AfC Mechanic (union)
Professional Administrator
$46,100
$46,300
$47,700
$60,500
$63,000
As illustrated above, household income can fall below the Alameda County Median Income, into Lower
Income categories even with highly skilled positions.
The income category information above is useful in determining housing afford ability by translating
income into the monthly housing payment each household can afford, as follows:
AFFORDABLE MONTHLY HOUSING COST
(based upon 30% of the annual income, distributed over 12 months)
F AMIL Y SIZE
INCOME CATEGORY 2 3 4 5
Very Low $554 $623 $693 $748
(50% of Median Income and below)
Low $886 $998 $1,108 $1,196
(51%-80% of Median Income)
Moderate $1,329 $1,496 $1,662 $1,794
(81%-120% of Median Income)
NOTE: The affordable Monthly Housing Cost figures above are based upon the maximum income
figures for each category.
To assess the need for affordable housing in the community, the Association of Bay Area Governments
(ABAG) compares the number of existing housing units in the region to the number needed to provide
affordable housing at all income levels. ABAG then determines the number of units which should be
built in each jurisdiction in order to meet its "fair share" of the housing need.
ABAG developed the following goals for housing unit development in the City of Dublin for the years
1990-1995 :
4
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CITY OF DUBLIN FAIR SHARE GOALS
Based Upon
ABAG PROJECTED REGIONAL HOUSING NEEDS *
By Income Category
CATEGORY
TOTAL NEEDED 1988-1995
PERCENTAGE
Very Low
Low
Moderate
Above Moderate
678
475
780
1,458
20%
14%
23%
43%
TOTAL
3,391
100%
* ABAG's 1989 Housing Needs Determination report
Due to a variety offactors, including a sagging housing market and limited land supply in the City,
housing development in Dublin has not achieved the goals set by ABAG, The following table lists
housing production in the City as it compares to the City's allocated "need":
CITY OF DUBLIN HOUSING PRODUCTION
Compared to
ABAG REGIONAL FAIR SHARE GOALS*
By Income Category
CATEGORY
UNITS NEEDED
1988-1995
UNITS PRODUCED
1988-1995
PRODUCTION
SURPLUS/(DEFICIT)
Very Low
Low
Moderate
Above Moderate
678
475
780
1,458
o
46
927
730
(678)
( 429)
147
(728)
TOTAL
3,391
1,703
Surp1us= 147 (Moderate Category)
Deficit= 1835 (Very Low, Low, and
Above Moderate Categories)
* ABAG's 1989 Housing Needs Determination
In order to help address the shortage of affordable housing, the City has developed a housing program
as part of its Housing Element, which includes several strategies to increase affordable housing
production.
5
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DUBLIN'S HOUSING STRATEGY
The purpose of an Inclusionary Zoning Ordinance is to utilize a regulatory approach in implementing
the City's housing goals. The Ordinance, which would be a zoning regulation, would require that
affordable housing units be provided as part of any new development. It is important to recognize that
this use of the City's police power to regulate land uses by zoning is just one aspect of the City's
overall housing strategy,
Other elements of the strategy include administering additional regulatory programs, such as the City's
Density Bonus Ordinance and its Rental Availability Ordinance, as well as providing ongoing City
support of existing programs such as the Federally assisted housing complexes and the Community
Development Block Grant (CDBG) Housing Rehabilitation programs.
The purpose of the Density Bonus Ordinance is to provide incentives for new development projects to
provide housing units which are affordable to very low and lower income households or are designated
for senior citizens. Projects which meet the afford ability criteria qualify for a density bonus, and may
be considered for other concessions including a reduction in site development and design standards,
modifications of zoning requirements such as reduced setbacks or square footage requirements,
reduced parking requirements, mixed use zoning, and other incentives intended to reduce developer
costs.
The purpose of the Rental Availability Ordinance is to provide units which are maintained as rentals
and available to all economic sectors, Although it is not required that the rental units be affordable
specifically to lower income households, it may achieve this result by virtue of the fact that average
monthly rents in this area typically are affordable to moderate income households, The ordinance also
allows developers the flexibility to pay housing fees in lieu of providing the rental units. The fees
would be placed into an affordable housing fund, and used to provide rental housing in the City.
The Rental Availability Ordinance has helped ensure that units remained available for rent at the Dublin
Meadows development project. The Donlon Canyon development, currently under construction by
Kaufman and Broad, is also subject to the requirements of this ordinance, Donlon Canyon will either
make a number of its units available for rent for at least 5 years, or will contribute funds for the City to
use toward providing rental housing.
The City participates in the Federal Community Development Block Grant (CDBG) program which is
administered for the City by the Alameda County Planning Department. The CDBG programs include
providing Housing Rehabilitation assistance in the form of grants and loans to qualified property
owners for housing repairs. The program also provides assistance and counseling for tenants with
affordable housing issues such as discrimination. Additionally, the City may apply for funds for various
types of affordable housing projects such as new construction, acquisition, rehabilitation, and rental
assistance through the Alameda County HOME consortium.
The CDBG Housing Rehabilitation program has assisted several homeowners at lower income levels
with loans and grants for housing rehabilitation over the past several years since its inception.
6
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INCLUSIONARY ZONING ORDINANCE
An lnclusionary Zoning Ordinance would require that developers provide a minimum percentage of
affordable housing units as part of all new residential developments of 20 or more units. Alternative
ways of meeting the requirements, such as paying a fee in lieu of constructing the units, could also be
considered, One of the characteristics of an lnclusionary program is that it would provide affordable
housing that is dispersed throughout the community.
As mentioned earlier, the Dublin Housing Element identifies various programs intended to implement
the housing goals of the City, including the adoption of an lnclusionary Zoning Ordinance. Strategy
1.B of the Housing Element reads as follows:
1.8, Adopt an inclusionary zoning ordinance requiring a minimum percentage (e.g. 10%) of low
and moderate income housing in new developments with 20 or more units. Such an
ordinance could include:
- income-eligibility criteria for defining affordability;
. pricing criteria for affordable units;
- restrictions' on resale and re-rental of affordable units;
- provisions for in-lieu fees;
. other provisions regarding on-site or off-site construction requirements and transfer of
excess affordable housing credits;
. time limit within which any in-lieu fees must be spent;
- incentives such as fee waivers, priority processing, and reduced site design standards.
Any in lieu fees collected under the program will go into an exclusive fund to be spent directly on
creating new affordable housing opportunities in Dublin (Le, fees could be paid to the City in lieu of
the direct provision of affordable units). Such in-lieu fees usually are required to be spent within a
limited time frame (e.g.. three years) and could be used for landbank, rent writedowns, etc.
Policy Objective:
Require the development of lower income housing
Quantified Objective:
190 units (affordable to low and very low income households)
Actions to be
Undertaken:
Adopt an inclusionary ordinance
Financing:
Minor administrative cost
Implementation:
Planning Department. Planning Commission. and City Council
Time Frame:
1991 (adopt ordinance)
The Eastern Dublin Specific Plan also directs that the City shall encourage affordable housing, and
adopt an Inclusionary program. The policies of the Specific Plan related to the Inclusionary Zoning
Ordinance read as follows:
Policy 4-7: Encourage the development of affordable housing throughout eastern Dublin. and avoid
the concentration of such housing in anyone area.
Policy 4-8: Ensure that projects developed in the plan area provide affordable housing in accordance
with the City's Housing Element, the Inclusionary Housing Ordinance, the Density Bonus Ordinance.
and the Rental Availability Ordinance.
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4. An Inc1usionary program should have an effective threshold number of units (minimum
project size), exempting small developments which produce less than this threshold from
production requirements of the program.
5, Inclusionary units should have permanent or long-term affordability restrictions in order
to provide benefits to as many households as possible for as long as possible.
6. In-lieu fees should be considered for at least part of an Inclusionary program, and if
adopted, fee levels should take into account the amount necessary to fund an
Inclusionary unit.
7. The prices of Inclusionary ownership units should be significantly below those of market
rate units in order to attract ownership participation,
8. The prices and rents of Inclusionary units should be significantly below those of market
rate units in order to provide a large enough benefit to justify the regulatory effort
involved,
9, Requirements for Inclusionary units should be based on the allowable density of
development sites rather than densities proposed for particular projects,
Dublin's development of an Inclusionary Zoning Ordinance may include the establishment of a set of
guiding principles, with which the Ordinance would be consistent, The principles may be established in
advance, or, as mentioned above, may evolve as the discussion of more detailed housing issues occurs.
INCLUSIONARY HOUSING ISSUES
The following list of issues will need to be considered in the development of the Inclusionary Zoning
Ordinance. These issues relate to aspects of the Ordinance which have not been specified by the City's
Housing Element or Specific Plan, and therefore the City has flexibility in these areas. While it is not
expected that decisions on all of these issues will be made at this point in the process, an explanation of
the options available, including a discussion of their impacts and examples from surrounding cities, is
planned for the Study Session.
I. REGULATORY REQUIREMENTS
. Minimum project size - 20 units or more
. Affordability percentage - for example, 10%
. Targeted income group - very low, low and moderate (use ABAG targets); Breakdown - % of each group
. Product type requirements (ie: renter and owner subject to same requirements?)
. How to set rents/sales prices for Inclusionary units
. Resale Restrictions
. Term of affordability - 30 years to permanent
II. OPTIONS
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. Allow obligation to be provided off site
. In lieu fees-calculation
. Use of in lieu fees
. Credit for providing more than threshold number of units or excess units
. Incentives (fee waivers, priority processing, reduced site design standards, etc.)
RECOMMENDATIONS:
FORMAT: 1) Commission Chair opens Study Session
2) Staff (Tasha Huston) provides background and describes scope and purpose of
meeting,
3) Consultants (Christine Gouig and Libby Seifel) present overview of Guiding
Principles and Issues
4) Commission questions Staff, Consultants and the Public
5) Discussion by Commission members and possible consensus on Guiding Principles
6) Staff summarizes Commission's guidance on principles and on Inclusionary Program
7) Staff summarizes next steps in process
8) Commission Chair Zika adjourns Study Session
ACTION: Staff recommends that the Planning Commission consider the information presented and
provide the staff with guidance on the recommended Guiding Principles and Issues for
the Inclusionary Zoning Ordinance,
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INCLUSION. ZONING ORDINANCE ISSUES'ORKSHEET
This worksheet is intended to assist in working through the issues surrounding the development of this
ordinance. Please use the worksheet prior to the meeting to help focus your ideas and prepare your
response, so that complete forms can be collected by the end of the Study session. These worksheets, along
with any consensus decisions made at the Study Session, will then be used for preparing a draft Ordinance,
YES NO
YES NO
YES NO
YES NO
A. DUBLIN HOUSING STRATEGY
1, Should the development of an Inclusionary Zoning Ordinance be preceded by a
reassessment of and possible revisions to Dublin's established Housing Element goals and
objectives?
2. Ifrevisions to Dublin's established goals are desired, does the City wish to amend any
General Plan, Housing Element, or Eastern Dublin Specific Plan policies which relate to the
Inclusionary Zoning Ordinance? (such amendment would delay progress on the Inclusionary
Zoning Ordinance)
3. Do the City's Density Bonus Ordinance and Rental Availability Ordinance need to be
reevaluated? Please refer to page 6 of the January 3, 1996 Planning commission Staff Report,
(Exhibit 2) for a sUnun.ary of the Density Bonus and Rental Availability Ordinances.
4. Does the City wish to abandon the concept of establishing an Inclusionary Zoning
Ordinance for Dublin? (this would require amendments to the Housing Element and Eastern
Dublin Specific Plan)
B. INCLUSIONARY ZONING ORDINANCE - GUIDING PRINCIPLES
Below are several examples of guiding principles which Dublin may want to consider. Additional space is
provided at the end of this section for adding suggested goals or principles for Dublin's Ordinance.
YES NO
YES NO
YES NO
1. "An Inclusionary program should be targeted as much as possible to those in the
greatest need of housing",
For example, if the City's largest housing deficit occurs at the very-low income levels, the
Inclusionary program should strive to provide the most units at that level.
2, "An Inclusionary Zoning Ordinance should not contain unduly stringent requirements
which cause a barrier to market rate housing development".
3. "The required percentage ofInclusionary Units (i.e.: 10% of the project) and the target
income levels (i.e.: Very Low, Low, or Moderate Income) must be considered together,
as there is a trade-off between them".
For example, the greater the required percentage, and the lower the target income level, the
greater the economic impact upon developers and/or land prices.
EXHIBIT 3
1
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
4. "An Inclusio.y program should have an effective .shold number of units
(minimum project size), as defined by the Dublin Housing Element, exempting small
developments which produce less than this threshold from the Inclusionary requirements
of the program".
5. "Inclusionary units should have permanent or long-term affordability restrictions in
order to provide benefits to as many households as possible for as long as possible".
6, "In-lieu fees should be considered for at least part of an Inclusionary program, and if
adopted, fee levels should take into account the amount necessary to fund ( or subsidize)
an Inclusionary unit".
7. "The prices of Inclusionary ownership units should be significantly below those of
market rate units in order to attract ownership participation",
8. The prices and rents of Inclusionary units should be significantly below those of market
rate units in order to provide a large enough benefit to justify the regulatory effort
involved" ,
9, "Inclusionary unit requirements should be based upon the number of units proposed for
development in a project, rather than the project density".
10. Others:
(Please note any other guiding principles which should be discussed)
C. INCLUSIONARY ZONING ORDINANCE - ISSUES
1, What percentage of the units in a project should be affordable? 5% ? 10% ? 15% ?
A definition of "affordable" would be a montWy rent or housing payment which requires no more
than 30% of a household's montWy income, A listing the affordable housing cost and rent ranges
for a family of four in Dublin is included in Table I-A of the supplemental data attached (Exhibit 1),
2, Should the minimum project size for applying the Ordinance requirements be 20 units, as
established by the City's Housing Element? If not, what should the minimum project size be?
(Note: Changing the minimum project size would require amending the Housing Element)
3, Should the ordinance target income groups in all three categories, Le" very low, low and
moderate Income? If not all three groups, what income categories should it target?
4, Should the breakdown of affordable units in each income group be based upon the ABAG
housing goals, or some other determinant of need?
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A table showing AG's determination of Dublin's fair sle goals is contained on Page 5 of
the January 3, 1996 Planning Commission Staff Report (Exhibit 2).
F or example, if the breakdown of affordable or lnclusionary units required by the ordinance is
targeted toward very-low, low, and moderate income categories, and 10% of the project's units
are Inclusionary units, the breakdown of affordable units in each income category would be as
follows (based upon ABAG's goals for construction of new units):
3.5 % of the units should be targeted toward very-low income households
2,5 % of the units should be targeted toward low income households
4 % of the units should be targeted toward moderate income households
YES NO
5. Should the breakdown of affordable units in each income group be based upon the income
group to which the product type is marketed (Le,: rental vs. ownership) ?
- For example, one developer has suggested that the affordable unit requirements for rental
housing should be targeted toward the very low and low-income groups, and the affordable unit
requirements for ownership housing should be targeted toward the moderate income group.
YES NO . 6. Should the breakdown of affordable units for each income group be based upon whether the
units are constructed or whether in-lieu fees are paid (if the City desires in-lieu fees) ?
- For example, another possibility would be that the units constructed would be targeted
toward moderate- and low-income households, and the funds collected from projects which
pay in-lieu fees could be targeted toward projects providing very-low income units,
YES NO
7. Should rents and/or sales prices for lnclusionary units be established by a formula in the
Ordinance? If yes, how should the rents/sales prices be established?
One option would be that the initial sales prices and rents should be no more than the cost
which is affordable to the targeted income group (very low, low or moderate), based upon the
Alameda County median income, adjusted for household size.
Another option would be that the rent/sales price is defined in an individual "Affordable
Housing Agreement" which would be established for each project, at the time of project
approvaL
8. How should the initial home price or rent of the Inclusionary units be provided at an
affordable level?
a. Developer designs units which are affordable
b, City subsidizes gap in market rate vs. affordable unit
c. Other:
YES NO
9. In order to maintain afford ability, should the Ordinance establish restrictions on the resale
of units?
For example, if an Inclusionary unit is resold, the sales price would be restricted to a price
which is affordable to a household in the same income category as that targeted under the
initial purchase,
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YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
YES NO
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10. Should units be allowed to be resold at market price with the City sharing in the equity?
11, Should the City consider holding a Silent Second mortgage on the affordable unit, which
the seller could either repay or transfer to the new qualified buyer upon resale of the unit?
12, For how long should Inclusionary Units remain affordable? 5, 10, 15,20 years, or
permanently?
13. Should the Ordinance allow flexibility for innovative approaches to meeting the
Inclusionary unit requirements, such as credit for providing affordable units on another site
within Dublin?
14. Should the Ordinance allow credit to developers who provide more than the required
number of Inclusionary units? For example, should there be flexibility in the breakdown of
units by target income categories for innovative approaches or special projects?
15. Should the City allow payment of fees in lieu of constructing the Inclusionary units?
16. Should the Ordinance contain a formula for calculating in-lieu fees? (This would limit the
ease with which future adjustments to the fee amount could be made,)
17. Should the calculation of and amount of the in-lieu fee be established by resolution of the
City Council, and allow for periodic adjustments?
18, How should the use of the in-lieu fee funds be specified in the Ordinance? For example,
the funds should be used by the City for the purpose of "providing affordable ownership or
rental housing in the City of Dublin through land acquisition, construction, direct
contributions to non-profit organizations for construction of housing in Dublin, or other
similar activity",
Ideas:
19. Above and beyond the requirements of the Ordinance, should the City provide incentives
to encourage the development of affordable units?
If yes, which incentives should be used:
a, reduced site design standards
b, priority processing
c, fee waivers using General Fund monies
c. fee waivers using In-Lieu Fee Fund monies
e. other ideas:
PLEASE FILL IN YOUR NAME BELOW AND TURN IN YOUR COMPLETED FORM AT THE END OF
THE STUDY SESSION MEETING. THANK YOU FOR YOUR INPUT.
COMPLETED BY:
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