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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. Resolution No. 2021-131 — Page 1 of 4 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 Resolution No. 2021-131 — Page 2 of 4 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 Resolution No. 2021-131 — Page 4 of 4