HomeMy WebLinkAbout2021-131 - Resolution RESOLUTION NO. 2021-131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, TO ESTABLISH THE
AMOUNT OF THE AFFORDABLE HOUSING IMPACT FEE FOR
NON-RESIDENTIAL DEVELOPMENTS WITHIN THE CITY OF
RANCHO CUCAMONGA, AND MAKING FINDINGS IN
SUPPORT THEREOF
WHEREAS, the State of California has found that local governments have a responsibility
to use the powers vested in them to facilitate the development of housing and to make adequate
provision for the housing needs of all economic segments of the community (Government Code
Section 65580(d)); and
WHEREAS, There is a shortage of affordable housing in the City of Rancho Cucamonga,
as evidenced in the City's Housing Element; and
WHEREAS, New non-residential development creates a variety of new jobs with varied
degrees of compensation for workers in such developments.
WHEREAS, The addition of new workers in these new non-residential developments
generates housing demand for households at extremely low, very low, low, and moderate
incomes.
WHEREAS, The failure to provide adequate affordable housing for lower-wage workers
can force these workers to live in less than adequate housing within the City, pay a significantly
disproportionate share of their incomes to live in adequate housing within the City, or commute
ever-increasing distances to their jobs from housing located outside the City.
WHEREAS, The City has commissioned the preparation of a Non-Residential Linkage Fee
Nexus Study, prepared by Keyser Marston Associates, Inc., dated October 5, 2021 ("Nexus
Study"), to analyze the relationship between non-residential development, job creation, and the
demand for affordable housing, in compliance with the Mitigation Fee Act(California Government
Code Sections 66000 et seq.).
WHEREAS, According to the Nexus Study (pgs. 10-25), a nexus exists between the
addition of new non-residential development and the jobs/new workers that this development
creates, and the workers' need for additional housing in proximity to the jobs, a portion of which
must be affordable to low-income workers.
WHEREAS, More specifically, the Nexus Study documents the linkage between new and
expanded non-residential development, the net number of new employees and employee
households generated by businesses occupying these land use buildings, and the housing
demands of these households.
WHEREAS,As discussed in detail in the Nexus Study, new housing affordable to persons
identified in the Nexus Study is not now being added to the supply in sufficient quantity to meet
the needs of the new employee households associated with new or expanded non-residential
development.
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WHEREAS, The Nexus Study quantifies the cost mitigation associated with developing
affordable housing units based on the identified need resulting from employees generated by new
non-residential development.
WHEREAS, To ensure that development projects remain economically feasible, the
recommended affordable housing development impact fee is lower than the maximum amount
needed to fully mitigate the burdens created by new development on the need for affordable
housing, as determined in the Nexus Study.
WHEREAS,At least ten days prior to the adoption date of this Resolution, data was made
available to the public indicating the amount of cost, or estimated cost, required to provide the
affordable housing for which the fee is being levied and the revenue sources anticipated to provide
the affordable housing, in accordance with Government Code Section 66019.
WHEREAS,At least fourteen days prior to the adoption date of this Resolution, notice was
provided to any persons or organizations who had requested notice, in accordance with
Government Code Section 66019.
WHEREAS, Notice of the hearing on the proposed fees was published twice in a
newspaper of general circulation in the manner set forth in Government Code Section 6062a, in
accordance with Government Code Sections 66004 and 66018.
WHEREAS, On December 15, 2021, the City Council of the City of Rancho Cucamonga
held a public hearing and conducted first reading of Ordinance No. 991 establishing the authority
for imposing and charging am affordable housing development impact fee. The ordinance states
that the City Council shall set the amount of the affordable housing development impact fee by
resolution. The City Council is expected to conduct second reading of the ordinance on January
5, 2022.
WHEREAS, On December 15, 2021, the City Council of the City of Rancho Cucamonga
conducted a duly noticed public hearing concerning the amount of the affordable housing
development impact fee adopted herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA,
HEREBY RESOLVES AS FOLLOWS:
1. The facts set forth in the Recitals, above, are true and correct.
2. Findings:
a. The findings of the Nexus Study have been considered and are hereby
incorporated into this resolution by reference.
b. The purpose of the affordable housing development impact fee is to
finance the development of new affordable housing needed to mitigate
the demand for such housing generated by new non-residential
development.
c. The fees collected pursuant to this Resolution shall be used to finance
only affordable housing as described in Ordinance No. 991.
d. The affordable housing development impact fee and the related
facilities to be financed with the fee are consistent with the City's
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General Plan.
e. There is a reasonable relationship between the need for affordable
housing, and the mitigation of impacts associated with new non-
residential development.
f. There is a reasonable relationship between the amount of the fee
established by Ordinance No. 991 at the rates set forth below, and the
type of non-residential development for which the affordable housing
development impact fee will be charged.
3. The City Council of the City of Rancho Cucamonga hereby adopts the affordable
housing development impact fees as described below:
Non-Residential Affordable Housinq Develo ment Im act Fee
Proposed Fee
Development
Retail/Commercial $1.00
Office $1.00
Industrial $6.00
Warehouse $6.00
Research and Development $6.00
Each fee set forth above shall be adjusted annually, commencing on July 1, 2022, and
each year thereafter, without further action of the City Council, according to the
percentage change in the Engineering News Record Construction Cost Index for the
Los Angeles Area, for the 12-month period ending on December 315' of the
immediately preceding year. If the Engineering News Record Construction Cost Index
for the Los Angeles Area is discontinued, the replacement index in use and accepted
as the industry and business standard for Southern California, as determined by City
Council, shall be utilized.
4. Effective Date: This Resolution shall take effect upon adoption, provided that the
fees as herein established shall not be imposed by the City until 60 days from the date
of the second reading of Ordinance No. 991, establishing the authority for imposing
and charging the affordable housing development impact fee.
5. Judicial Challenge: Any judicial action proceeding to appeal, review, set aside,
void, or annul this resolution shall be brought within 120 days of its adoption.
6. Certification: The City Clerk shall certify the adoption of this Resolution.
Resolution No. 2021-131 — Page 3 of 4
PASSED, APPROVED, and ADOPTED this 151h day of December 2021.
L nis Michael, Mayor
ATTEST:
f-_7
J ce C. Reynolds, City Jerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF RANCHO CUCAMONGA )
I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify
that the foregoing Resolution was duly passed, approved, and adopted by the City Council of
the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 15th day of
December 2021.
AYES: Hutchison, Kennedy, Michael, Scott, Spagnolo
NOES: None
ABSENT: None
ABSTAINED: None
Executed this 16th day of December, 2021, at Rancho Cucamonga, California.
ice C. Reynolds, City C erk
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