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HomeMy WebLinkAbout689 - Ordinances ORDINANCE NO. 689 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING ENVIRONMENTAL ASSESSMENT AND DEVELOPMENT CODE AMENDMENT DRC2002-00443, THE ADDITION OF AFFORDABLE HOUSING INCENTIVES/DENSITY BONUS PROVISIONS, CHAPTER '17.40 OF THE RANCHO CUCAMONGA DEVELOPMENT CODE, TO PROVIDE FOR THE INCLUSION OF DENSITY BONUS INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING AND MAKING FINDINGS IN SUPPORT THEREOF. A. RECITALS. 1. On the 10th day of July 2002, the Planning Commission of the City of Rancho Cucamonga conducted a duly noticed public hearing with respect to the above- referenced Development Code Amendment, and following the conclusion thereof, adopted its Resolution No. 02-66, recommending that the City Council of the City of Rancho Cucamonga adopt said amendment. 2. On the 2nd day of October 2002, the City Council of the City of Rancho Cucamonga conducted a duly noticed public hearing on the amendment to the Development Code. · 3. All legal prerequ!sites prior to the adoption ofthis Ordinance have occurred. B. ORDINANCE. The City Council of the City of Rancho Cucamonga does ordain as follows: SECTION 1: This City Council hereby specifically finds that ail of the facts set forth in the Recitals, Part A, of this Ordinance are true and correct. SECTION 2: This City Council hereby finds and determines that the subject amendment identified in this Ordinance is exempt from the requirements of the California Environmental QualityAct of 1970, as amended, and the Guidelines promulgated thereunder, pursuantto Section 15061(b)(3) of Division 6 Title 14 of the California Code of Regulations. SECTION 3: Section 17.40 - Affordable Housing Incentives/Density Bonus Provisions, of the Development Code hereby is established to read, in words and figures, as written below: Ordinance No. 689 Page 2 of 12 "17. 40.010 - Purpose The purpose of this chapter is to provide incentives for the production of housing for very Iow, lower income, and senior households in accordance with Sections 65915 and 65917 of the California Government Code. In enacting this chapter, it is the intent of the City to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the Housing Element of the City's General Plan. 17.40.020 - Definitions Whenever the following terms are used in this chapter, they shall have the meanings established by this section: A ADDITIONAL INCENTIVE: A regulatory concession (Government Code, subsections 65915 (d) and (h)) to include, but not be limited to, the reduction of site development standards or zoning code requirements, approval of mixed-use zoning in conjunction with the housing development or any other regulatory incentive, which would result in identifiable cost avoidance or reductions that are offered in addition to a density bonus. AFFORDABLE RENT: Monthly housing expenses, including a reasonable allowance for utilities, for rental target units reserved for very Iow or lower income households, not exceeding the following calculations: 1. Very Low Income, Households at 50% of the area median income, adjusted for household size, multiplied by 30% and divided by 12; 2. Lower Income. Households at 60% of the area median income, adjusted for household size, multiplied by 30% and divided by 12. AFFORDABLE SALES PRICE: A sales price at which lower or very Iow income households can qualify for the purchase of target units, calculated on the basis of underwriting standards of mortgage financing available for the housing development. D DENSITY BONUS: A density increase of up to 25% ever the otherwise maximum residential density. DENSITY BONUS HOUSING AGREEMENT: A legally binding agreement between a developer of a housing development and the City, which ensures that the requirements of this chapter and State density bonus law are satisfied. The agreement, shall establish, among other things, the number of target units, their size, location, terms and conditions of affordability and production schedule. DENSITYBONUS UNITS: Those residential units grantedpursuant to the provisions of this chapter, which exceed the otherwise maximum residential density for the development site. Ordinance No. 689 Page 3 of 12 H HOUSING COST: The sum of actual orprojectedmonth/ypayments fora//of the fo/lowing associated with for-sale target units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for ut#ities. HOUSING DEVELOPMENT: Construction projects consisting of 5 or more residential units, including sing/e-family and multifamily, that are proposed to be constructed pursuant to this chapter. L LOWER INCOME HOUSEHOLD: Households whose income does not exceed the Iower income limits applicable to San Bernardino County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code. M MAXIMUM RESIDENTIAL DENSITY: The maximum number of residential units permitted by the City's General Plan Land Use element and Development Code applicable to the subject property at the time an application for the construction ora housing development is deemed complete by the City, excluding the provisions of this chapter. N NON-RESTRICTED UNIT: All units within a housing development excluding the target units. Q QUALIFIED RESIDENT: Senior citizens or other persons eligible to reside in senior citizen housing. S SENIOR CITIZEN HOUSING: A housing development consistent with the California Fair Employment and Housing Act, which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the Federal Fair Housing Amendments Act of 1988 and its implementing regulations, and as that phrase is used in California Civil Code Sections 51.2 and 51.3. T TARGET UNIT: A dwelling unit within a housing development, which will be reserved for sale or rent to, and affordable to, very Iow or lower income households or qualifying residents. v VERY LOWINCOME HOUSEHOLD: Households whose income does not exceed the very low income limits applicable to San Bemardino County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. Ordinance No. 689 Page 4 of 12 17.40.030 - Implementation A. The City shall grant either a density bonus or a density bonus with an additional incentive to an applicant who agrees to provide the follov~ng target units as part ora housing development: I. Lower Income Household. At least 20% of the total units of the housing development as target units affordable to lower income households; or 2. Very Low Income Household. At least 10% of the total units of the housing development as target units affordable to very Iow income households; or 3. Senior Citizen Housing. At least 50% of the total units of the housing development as target units affordable to qualifying residents. In determining the number of density bonus units to be granted pursuant to this section, the maximum allowable residential density for the site shall be multiplied by 25%. When calculating the number of permitted density bonus units, any resulting fractions of units shall be deleted. B. In determining the number of target units to be provided pursuant to this section, the maximum residential density shall be: 1. Multiplied by 10% where very Iow income households are targeted; or 2. Multiplied by 20% where lower income households are targeted. The density bonus units shall not be included when determining the total number of targetunitsinthehousingdevelopment. Whencalculatingtherequirednumberoftarget units, any resulting fraction of units shaft be deleted. C. Limitations and Exceptions. I. In cases where a density increase of less than 25% is requested, no reduction will be allowed in the number of target units required. In cases where a density increase ol~ more than 25% is requested, the requested density increase, if granted, shaft be considered an additional incentive. z In cases where the developer agrees to construct more than 20% of the total units for lower income households, and 10% of the total units for very Iow income households, the developer shall be entitled to only one density bonus and an additional incentive. Similarly, an applicant who agrees to construct senior citizen housing with 20% or 10% of the units reserved for lower or very Iow income households, respectively, is only entitled to one density bonus and an additional incentive. The City may, however, grant multiple additional incentives to facilitate the inclusion of more target units than are required by this chapter. Ordinance No. 689 Page 5 of 12 17.40.040 - Types of Bonuses and Incentives Allowed A. Density Bonus. The density bonus altowed by this chapter sha/I consist of at least a 25% increase in the maximum density allowed by the zoning district and General Plan designation applicable to the site as of the date of the project land use permit application. A single development project shall not be granted more than one density bonus in compliance with this chapter. The City shall provide a density bonus and an additional incentive for qualified housing developments, upon the wdtten request ora developer, unless the City makes a written finding that the additional incentive is not necessary to make the housing development economically feasible and to accommodate a density bonus. The development incentive granted shall contribute significantly to the economic feasibility of providing the target units. Any applicant seeking a waiver or modification of development or zoning standards shall show that such waiver or modification is necessary to make the housing development economically feasible. This requirement may be satisfied by reference to applicable sections of the Housing Element of the City's General Plan. B. Other Incentives. If requested by the applicant, a qualifying project shall be entitled to at least one of the following incentives, unless the City makes a written finding that the additional incentive is not necessary to make the housing development economically feasible: 1. Types of Incentives. The allocation of an additional incentive shall be determined on a case-by-case basis. The additional incentive may include, but is not limited to, any of the following: a. A reduction in site development standards or a modification of the requirements of this Development Code, which exceed the minimum building standards provided in Part 2.5 (commencing with Section 18901) of Division 13 of the California Health and Safety Code. These may include, but are not limited to, one or more of the following: t) Reduced minimum lot sizes and/or dimensions. 2) Reduced minimum lot setbacks. 3) Reduced minimum outdoor and/or private outdoor open space. 4) Increased maximum lot coverage. 5) Increased maximum building height. 6) Reduced on-site parking standards. 7) Reduced minimum building separation requirements. a) Other. Ordinance No. 689 Page 6 of 12 b. Allow the housing development to include nonresidential uses and/or allow the housing development within a nonresidential zone. Approval of mixed use activities in conjunction with the housing development ff other land uses will reduce the cost of the housing development, and the other land uses are compatible with the housing development and the existing or planned development in the area, and is consistent vcth the General Plan. c. Another regulatory incentive or concession proposed by the applicant and agreed to by the City, which results in identifiable cost reductions or avoidance. d. A density bonus of more than 25%. e. Waived, reduced, or deferred plan check, construction permit, and/or development impact fees (e.g., capital facilities, park, traffic, etc.). ¢. Other regulatory incentives proposed by the applicant or the City, which result in identifiable cost reductions. Permissible incentives include direct financial aid (e.g., redevelopment set-aside, Community Development Block Grant (CDBG) funding) in the form of a loan ora grant to subsidize or provide Iow interest financing for on or off- site improvements, land, or construction costs. 2. Requirements. a. Economic feasibility. Any development incentive granted shaft contribute to the economic feasibility of providing the target units. b. Waivers or modifications. An applicant seeking a waiver or modification of development or zoning standards shall show that the waiver or modification is necessary to make the housing development economically feasible assuming a reasonable rate of return (e.g., at a minimum, an application shall include itemized accounting of projected costs and revenues of the development). c. Revenue. Project revenues shall include moneys from the sale or rental of afl units, including the density bonus units. d. Costs. Project costs: 1) Shall not include the "lost opportunity" cost of the target units (e.g., the amount that would have been generated had the target units been rented or sold at market rate). 2) May include items that are required solely because of the inclusion of the density bonus units and would not have been required without the units. Ordinance No. 689 Page 7 of 12 e. Financial Assistance. ff financial assistance is required, the applicant shall submit a project financial report (pro forma) to allow the City to evaluate the financial need for the additionalincentive. The Citymayretain a consultant to review the financial report. The cost of the consultant shall be the responsibility of the applicant. 17.40.050 - Requirements for Projects with Affordable Units A. The owners obligation to maintain units as affordable housing shall be evidenced by the Density Bonus Housing Agreement, which shall be recorded as a deed restriction running with the land and be binding upon all successors-in-interest. B. Those units targeted for lower income households shall be affordable at a rent that does not exceed current Housing and Urban Development (HUD) income limits for lower income households for the County, adjusted for household size. C. Those units targeted for verylow-income households shall be affordable at a rent that does not exceed current HUD income limits for very low- income households for the County, adjusted for household si3~. D. The owner shall submit annually and within 30 days of occupancy of a target unit, a certificate of compliance, which shall include the name, address, and income of each tenant occupying the target unit. E. The owner shall maintain and keep on file annual sworn and notarized income statements and current tax returns for all tenants occupying the target units. F. The owner shall provide to the City any additional information required by the City to insure the long-term affordability of the target units by eligible households. G. The City shall have the right to inspect the owner's project-related records at any reasonable time and shall be entitled to audit the owner's records once a year. H. The City may establish fees associated with the setting up and monitoring of target units. I. Ail target units for sale shall be occupied by their purchasers; no renting or sub/easing shall be permitted. 17.40.060 - Development Standards A. Targetunitsshouldbeconstructedconcurrentlywithnon-restrictedunits un/ess both the City and the applicant agree within the Density Bonus Housing Agreement to an alternative schedule for deve/oprnent. Ordinance No. 689 Page 8 of 12 B. Target units shall remain restricted and affordable to the designated group for a period of 30 years (or a longer period of time ff required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program), when both a density bonus and an additional incentive are granted. {2. Target units shall remain restricted and affordable to the designated group for a period of 10 years when only a density bonus is granted and no additional incentive is granted. D. In determining the maximum affordable rent or affordable sales price of target units the following household and unit size assumptions shall be used, unless the housing development is subject to different assumptions imposed by other governmental regulations: SRO (residential hotel) unit 75% of I person Studio 1 person I bedroom 2 persons 2 bedroom 3 persons 3 bedroom 4 persons 4 bedroom 6 persons E.. Target units should be built on-site wherever possible and, when practical, be dispersed within the housing development. Where feasible, the number of bedrooms of the target units should be equivalent to the bedroom mix of the non-target units of the housing development, except that the developer may include a higher proportion of target units with more bedrooms. The design and appearance of the target units shall be compatible with the design of the total housing development. Afl housing developments shall comply with all applicable development standards, except those that standards, which may be modified as provided by this chapter. ~=. Circumstances may arise in which the public interest would be served by allowing some or all of the target units associated with one housing development to be produced and operated at an altemative development site. Where the applicant and the City form an agreement, the resulting linked developments shall be considered a single-housing development for purposes of this chapter. Under these circumstances, the applicant shall be subject to the same requirements of this chapter for the target units to be provided on the alternative site. G. The entry into and execution of Density Bonus Housing Agreement shall be a condition of any application fora discretionary planning permit (e.g., tract maps, parcel maps, site plans, planned development, or conditional use permits) for a housing development proposed pursuant to this chapter. The agreement shall be recorded at the applicant's cost as a restriction on the parcel or parcels on which the target units will be constructed. Ordinance No. 689 Page 9 of 12 H. A Density Bonus Housing Agreement shall be made between the applicant and the City, which indicates the household type, number, location, size, and construction scheduling of all affordable units and any information required by the City to determine the applicant's compliance with this chapter. 17.40.070- Processing of Bonus Requests An application for a Density Bonus Housing Agreement pursuant to this chapter shall be processed as part of the application for a housing development. An application for a housing development shall not be determined "complete" for purposes of Government Code Sections 65920 et seq., unless and until the City Council has given preliminary approval of the form and content ora Density Bonus Housing Agreement, which complies with the provisions of this chapter. The process for obtaining preliminary approval of the Density Bonus Housing Agreement, shall be as follows: A. Filing. An applicant proposing a housing development pursuant to this chapter shall submit an application for a Density Bonus Housing Agreement as part of the submittal of any formal request for approval ora housing development. The application, whether a pre-application or a formal application, shall include: 1. A brief description of the proposed housing development, including the total number of units, target units, and density bonus units proposed; 2. The zoning and General Plan designations and Assessor's Parcel Number(s) of the project site; 3. A Vicinity Map and Preliminary Site Plan, drawn to scale, including building footprints, driveways, and parking layout; and 4. If an additional incentive is requested, a description of why the additional incentive is necessary to provide the target units. B. Review of Density Bonus Request. Within 90 days of receipt of the application for a Density Bonus Housing Agreement and a housing development, the City shall provide to an applicant a letter, which identifies project issues of concern, and the proceduresfor compliance with this chapter. C. Additional lncentives. The City Planner shall inform the applicant that the requested additional incentives shall be recommended for consideration with the proposed housing development, or that alternative or modified additional incentives shall be recommended for consideration in fieu of the requested additional incentives. If the City Planner recommends alternative or modified incentives, the recommendation shall establish how the alternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentives. Ordinance No. 689 Page 10 of 12 17.40.080 - Density Bonus Housing Agreement A. The terms of the draft Density Bonus Housing Agreement (the "Agreement") shall be reviewed and revised as appropriate by the City Planner and the City Attorney who shall formulate a recommendation to the City Council for final approval. B. The Agreement shall be submitted to the Planning Commission for its' recommendation and submitted to the City Council for final approval. C. Following execution of the Agreement by the applicant and the City, the completedAgreement, ormemorandum thereof, shallbe recorded. The conditions contained in the Agreement shall be filed and recorded on the parcel or parcels designated for the construction of target units as a condition of final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The Agreement shall be binding upon all future owners and successors in interest for this property, which is the subject of the housing development application. D. At a minimum, the Agreement shall include the followfng: I. The total number of units proposed within the housing development, including the number of target units; 2. A description of the household income group to be accommodated by the housing development, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost; 3. The location, unit sizes (square feet), and number of bedrooms of target units; 4. Tenure of use restrictions for target units of at least l O or 30 years; 5. A schedule for completion and occupancy of target units; 6. A description ofthe additional incentive being provided bythe City; 7. A description of remedies for breach of the Agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and 8. Other provisions to ensure implementation and compliance with this chapter. E. In the case of for-sale housing developments, the Agreement shall provide for the follov~ng conditions governing the initial sale and use of target units during the applicable use restriction period: ~. Target units shall, upon initial sale, be sold to eligible very low or lower income households at an affordable sales price and housing cost, or to qualified residents (i.e., maintained as senior citizen housing). Ordinance No. 689 Page 11 of 12 2. Target units shall be initially owner-occupied by eligible very Iow or lower income households, or by qualified residents in the case of senior citizen housing. 3. The initial purchaser of each target unit shall execute an instrument or agreement, approved by the City Attorney, restricting the sale of the target unit in accordance with this ordinance during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain provisions as the City may require to ensure continued compllancewith this chapter and the State density bonus law. F. In the case of rental housing developments, the Agreement shall provide for the following conditions governing the use of target units during the use restriction period: 1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and the proper management and maintenance of target units for qualified tenants; 2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter; and 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit." SECTION 4: If any section, subsection, sentence, clause, phrase, or word of this Ordinance is, for any reason, deemed or held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or preempted by legislative enactment, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Rancho Cucamonga hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or words thereof, regardless of the fact that any one or more sections, subsections, sentences, clauses, phrases, or words might subsequently be declared invalid or unconstitutional or preempted by subsequent legislation. SECTION 5: The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published within 15 days after its passage at least once in the Inland Valley Daily Bulletin, a newspaper of general circulation published in the City of Ontario, California, and circulated in the City of Rancho Cucamonga, California. Ordinance No. 689 Page 12 of 12 PASSED, APPROVED, AND ADOPTED this 22nd day of October 2002. AYES: Alexander, Curatalo, Williams NOES: None ABSENT: Biane, Dutton ABSTAINED: None William J. Ai~~l~~ayor ATTEST: bra~J. Ada~, CMC, City Clerk I, DERRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of the Council of the City of Rancho Cucamonga held on the 2nd day of October 2002, and was passed at a Special Meeting of the City Council of the City of Rancho Cucamonga held on the 22nd day of October 2002. Executed this 23rd day of October 2002, at Rancho Cucamonga, California.