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HomeMy WebLinkAbout94-06 Ordinance No. 94-06 AN ORDINANCE OF THE TOWN OF DANVILLE ADDING SECTION 32-23.1 - 32-23.15 TO ARTICLE V OF CHAPTER 32 OF THE DANVILLE MUNICIPAL CODE REGARDING APPROVAL OF AN INCLUSIONARY HOUSING ORDINANCE FOR AFFORDABLE RESIDENTIAL HOUSING IN THE TOWN OF DANVILLE The Town Council of the Town of Danville DOES ORDAIN AS FOLLOWS: SECTION ONE: Sections 32-23.1 through 32-23.15 are hereby added to the Danville Municipal Code, to read as follows: 32-23.1 Title. This Ordinance shall be entitled the "Inclusionary Housing Ordinance for Affordable Residential Housing in the Town of Danville". 32-23.2 Findings. The Town Council of the Town of Danville finds that Danville is experiencing a housing shortage for very low, low and moderate income households. A goal of the Town is to achieve a balanced community with housing available for households of a range of income levels. Increasingly, households with very low, low and moderate incomes who work and / or live within the Town are unable to locate housing at prices they can afford and are increasingly excluded from living in the Town. The Town finds that the high cost of newly constructed housing does not, to any appreciable extent, provide housing affordable by very low, low or moderate income households, and that continued new development which does not include nor contribute toward lower cost housing will serve to further aggravate the current housing problems by reducing the supply of developable land. The Town further finds that the housing shortage for households of very low, low and moderate incomes is detrimental to the public health, safety and welfare, and further that it is a public purpose of the Town, and a public policy of the State of California as mandated by the requirements for a Housing Element of the Town's General Plan, to make available an adequate supply of housing for persons of all economic segments of the community. 32-23.3 Purpose. The purpose of this chapter is to enhance the public welfare and assure that new residential developments which include two or more residential dwelling units or lots PAGE NO. 1 OF ORDINANCE NO. 94-06 contribute to the attainment of the Town's housing goals by increasing the production of units affordable by households of very low, low and moderate income, and additionally stimulating funds for development of very low, low and moderate income housing. The regulations set forth in this chapter shall apply to all areas of the Town of Danville exclusive of the area covered by the adopted Danville Redevelopment Plan. 32-23.4 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. a. "Affordable unit" means a residential unit for which the mortgage or rental payment does not exceed that affordable to very low, low and moderate income households, as determined periodically by the United States Department of Housing and Urban Development based on the Alameda County / Contra Costa County Standard Metropolitan Statistical Area (SMSA) median income levels by family size. Appropriate mortgage and rental rates shall be calculated on the basis of gross annual household income considering household size and unit size, income of all wage earners and all other sources of household income. For purposes of this chapter; 1. Affordable units for very low income households shall mean units with housing costs affordable to households whose gross annual income is 50% or less of the current SMSA median income, as published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 5()105. 2. Affordable units for low income households shall mean units with housing costs affordable to households whose gross annual income is between 51% and 80% of the current SMSA median income, as published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50079.5. 3. Affordable units for moderate income households shall mean units with housing costs affordable to households whose gross annual income is between 81'% and 110% of the current SMSA median income, as published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093. b. "Applicant" means any person, firm, parmership, association, joint venture, corporation, or any entity or combination of entities which seeks Town real property development permits and approvals. PAGE NO. 2 OF ORDINANCE NO. 94-06 c. "Approval" means approval by the Town of a discretionary permit such as a tentative map, planned development or use permit for a residential development project. d. "Below Market Rate" or "BMR" means residential units sold or rented at rates affordable to very low, low or moderate income households. e. "Danville Employee" means any head of household, or in the case of married couples either spouse, who has worked within the Town limits continually for one year in the year immediately proceeding the occupancy of an affordable unit. f. "Danville Resident" means any person who has lived within the Town limits of Danville for one year in the year immediately proceeding the occupancy of an affordable unit. g. "Developer" means the same as "Applicant" (see above definition). h. "Household" means one person living alone or two or more persons sharing residency and who are related by blood, marriage or operation of law. i. "Housing Cost" means the monthly mortgage principal and interest, property taxes, and homeowner association fees, where applicable, for ownership units; and the monthly rent and an appropriate utility allowance for rental units. j. "Incentive" means a benefit offered by the Town to facilitate construction of residential developments which include BMR units. Among others, benefits may include fee waivers or reductions for BMR units, and flexibility and/or relaxation of development regulations. For purposes of this chapter, any incentive granted hereunder shall be deemed a direct subsidy of the project by the Town. k. "In-lieu participation fee" means a fee paid to the Town by an applicant for a residential development in the Town in lieu of providing the inclusionary affordable units required by this chapter. 1. "Project owner" means any person, firm, parmership, association, joint venture, corporation, or any entity or combination of entities which holds fee title to the land on which the project is located. m. "Residential development" includes developments of two or more units or lots for, without limitation, detached single family dwellings, multiple dwelling structures, groups of dwellings, condominium conversions, cooperative developments and land subdivisions intended to be sold to the general public. PAGE NO. 3 OF ORDINANCE NO. 94-06 n. "Secondary Unit" means a residential unit which provides complete, independent living facilities for one or more persons. It includes permanent provisions for living, sleeping, cooking, eating and sanitation on the same parcel as the primary unit. o. "Town" means the Town of Danville or its designee, or any entity with which the Town contracts with to administer this chapter. p. "Unit type" means dwelling units with similar floor area and number of bedrooms. 32-23.5 Applicability. All residential developments with at least eight units or lots for which an approval is secured after May 5, 1994 shall be subject to the regulations of this chapter. Projects developed consistent with the regulations of the Density Bonus Ordinance No. 94-05 shall be considered to have satisfied all requirements contained in this ordinance. 32-23.6 Scope. Every approval for residential development shall assure provision of one or more BMR units according to the following regulations: a. Residential developments with resultant densities less than or equal to seven units an acre shall provide a number of BMR units equal to ten percent of the number of market rate units in the project. b. Residential developments with resultant densities of greater than seven units an acre: 1. Residential developments up to twenty units in size shall provide a number of BMR units equal to ten percent of the number of market rate units in the project. 2. Residential developments containing twenty-one or more units shall provide a number of BMR units equal to fifteen percent of the number of market rate units in the project. 3. All residential developments with densities of thirteen units or more per acre shall construct the affordable units as a part of the residential development. c. At the discretion of the Town Council, affordable units required pursuant to this chapter may be provided at a location within the Town other than the residential development which creates the requirement for the affordable units. PAGE NO. 4 OF ORDINANCE NO. 94-06 d. If the BMR units produced in a project with a resultant density of greater than seven units an acre are of a physical design (i.e., the overall project density, the BMR unit type and / or the BMR unit size) such that they will remain affordable to qualifying moderate income households even if sold or rented at market rate levels, the number of BMR units required to be supplied in the project may be reduced to ten percent of the overall project count. The determination to reduce the number of affordable units required to be supplied in the project shall be made by the Town Council. 32-23.7 Incentives. An applicant may request a modification of the following standards where such waiver or modification is necessary to make the provision of BMR units economically feasible. The request shall be accompanied by information sufficient to demonstrate that the incentive is necessary to make the affordable units economically feasible: a. A reduction in site development standards and modification of zoning code requirements or architectural design standards exceeding State building standards including, but not limited to, a reduction in setback, square footage, minimum lot size, minimum lot dimensions, street section, sidewalks, open space, landscaping or number of required parking spaces. b. Relaxation of development standards for new subdivisions incorporating BMR secondary units into a single family development, including, but not limited to modifications in unit setback requirements, number of bedrooms, parking requirements or other regulations contained in the Town's second unit ordinance, as may be amended from time to time° c. Other regulatory incentives or concessions proposed by the applicant or the Town which result in identifiable cost reductions applicable to the BMR units within a residential development. Where the applicant requests one or more of the above listed incentives, a preliminary project financial report shall be submitted (pro forma) along with the application for the project in order to evaluate the financial need for the requested incentive(s). At the cost of applicant, the Town may retain a consultant to review the financial report. If the applicant is a non-profit organization, the Town may elect to pay the cost of the consultant upon approval by the Town Council. 32-23.8 In-Lieu Participation Fees. In-lieu participation fees may be appropriate for particular projects not suitable for inclusionary affordable units due to factors including, but not limited to, location, availability of services, extreme topography, development denairy, and environmental PAGE NO. 5 OF ORDINANCE NO. 94-06 constraints. In such cases the applicant, upon approval of the Town Council, may contribute fees in lieu of providing inclusionam] affordable units. Such fees shall be known as "in-lieu participation fees". Applicants may make payment of in-lieu participation fees in residential developments except that in-lieu participation fees may not be authorized for residential developments with densities of thirteen units or more per acre. a. The in-lieu fee shall be calculated based on the subsidy differential between what a moderate income household (earning 110% of current SMSA median income), adjusted for expected household size and appropriate unit size, can afford to pay for housing and the estimated total cost of a new, non-BMR unit of appropriate size, as determined to the satisfaction of the Town. The in-lieu fee shall be calculated on a project-by-project basis with the per unit fee paid subject to review and approval by the Chief of Planning. b. The in-lieu fee for the entire residential development shall be due prior to occupancy of the first unit. 32-23.9 Application Process. The decision-making body for a formal application meeting the requirements of this section shall be the Planning Commission and / or Town Council, whichever is authorized to approve the associated discretionary permit. 32-23.10 General Requirements. a. All BMR units shall be sold or rented as affordable units for occupancy only by very low, low or moderate income households. b. The goal is to have all BMR units remain affordable. Should a determination be made by the Town Council that the physical design of the BMR units is such to ensure that the unit will remain affordable in the long term to qualifying moderate income households (see Section 32-23.6.d), the term of affordability may be reduced to a minimum term of not less than ten years. c. All fractions of units or lots equal to or greater than .75 of a unit shall be rounded up to the nearest whole unit. d. The maximum sales price of all for-sale BMR units shall be no more than that which would be affordable to a moderate income household earning 110% of the current SMSA median income, adjusted for expected household size and appropriate unit size. A maximum of 35% of household income shall be assigned to the housing costs for the for-sale BMR unit. PAGE NO. 6 OF ORDINANCE NO. 94-06 e. The maximum rental price of all for-rent BMR units shall be no more than that which would be affordable to a moderate income household earning 110% of the current SMSA median income, adjusted for expected household size and appropriate unit size. A maximum of 30% of household income shall be assigned to the housing costs for the for-rent BMR unit. f. Households with eligible Danville residents shall be given first preference for BMR units; second preference shall be given to households with eligible Danville employees; third preference shall be given to all other eligible households. g. Requirements for BMR units shall be established as conditions of approval for the residential development. Compliance with the regulations of this chapter shall be evidenced by an affordable housing agreement between the applicant and the Town Manager completed and recorded on the deed to each affected and shall run with the land. 1. The affordable housing agreement shall indicate the intended household type (i.e., for-sale or rental occupancies), number of BMR units and their corresponding number of bedrooms; standards for maximum qualifying household incomes; standards for maximum sales prices or rental rates; party/process responsible for certifying tenant incomes; construction scheduling; how vacancies will be marketed and filled; restrictions and enforcement mechanisms binding on property upon sale or transfer; maintenance provisions; and any other information as required by the Town to comply with the conditions of approval for the residential development. 2. The affordable housing agreement shall include a provision which allows the Town to assign its authority to regulate and enforce the agreement to the Contra Costa County Housing Authority, a non-profit housing agency or other similar entity. 3. Proof of recordation of the affordable housing agreement on the deed of each BMR unit in a residential development shall be deemed a condition precedent to occupancy. 4. The provisions of this chapter shall not apply to transfers by gift, device or inheritance to the property owner's spouse or children; transfers of title to a spouse as part of a divorce or dissolution proceeding; acquisition of title interest therein in conjunction with marriage; provided, however, that the deed restrictions shall continue to run with the title to said property following such transfers. h. BMR units in a residential development and phases of a residential development shall be constructed concurrently with or prior to the construction of non-BMR PAGE NO. 7 OF ORDINANCE NO. 94-06 units. i. BMR units shall be provided as follows: 1. If the BMR units are built within the project, they are not required to be evenly dispersed throughout the development. 2. BMR are not required to represent the predominant unit type in the project (e.g., locating affordable attached duet units on corner lots in a primarily single family development or including affordable secondary units into a primarily single family development). 3. The exterior design and character of the BMR units shall be substantially consistent with that of the non-BMR units in the residential development. 4. There may be a reduction of interior amenities provided within the BMR units as may be necessary to retain project affordability. j. For-sale BMR units shall not be rented unless specifically authorized by the Town. Said authorization shall be formalized by way of execution of an amended affordable housing agreement. k. The Town may contract with the Contra Costa County Housing Authority, or other similar entity, to administer the sale, rental and / or in-lieu participation fee provisions of this chapter. 1. The Town Manager may establish administrative guidelines for administration of the provisions of this chapter. 32-23.11 Fee Waivers and Priority Processing. a. To increase the feasibility of providing affordable units, the Town Council, by resolution, may waive or reduce certain Town fees applicable to the affordable units or the residential development for which they are a part. b. A project which provides inclusionary units shall be entitled to priority processing by the Town. 32-23.12 Violation-Penalty. It is unlawful for any person, firm, corporation, partoership 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 PAGE NO. 8 OF ORDINANCE NO. 94-06 code, any such violation constituting a misdemeanor under this chapter may, at the discretion of the enforcing authority, be charged and prosecuted as an infraction. 32.23.13 Enforcement. a. The Town Manager is hereby designated the enforcing authority of this chapter. b. The provisions of this chapter shall apply to all agents, successors and assigns of an applicant proposing a residential development governed by this chapter. No building permit or occupancy permit shall be issued, nor any development approval be granted, which does not meet the requirements of this chapter. c. In the event that it is determined that a BMR unit is being occupied as a rental unit and that rents in excess of those allowed by operation of this chapter have been charged, the Town may take the appropriate legal actions or proceedings to recover, and the project owner shall be obligated to pay to the tenant (or to the Town in the event the tenant cannot be located), any excess rental charges. d. The Town may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including but not limited to actions to revoke, deny or suspend any permit or development approval. 32-23.14 Appeals. Any person aggrieved by any action involving denial, suspension or revocation of an occupancy or other permit, or denial, suspension, or revocation of any development approval, may appeal such action or determination in the manner provided for appeal of use permits, by Sections 1-8.1 through 1-8.5 of the Danville Municipal Code. 32-23.15 Severability. The provisions of this chapter 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, sections, sentences, words or parts thereof of the chapter or their applicability to other persons or circumstances. SECTION TWO. Publication. The City Clerk shall either a) have this Ordinance published once within 15 days after adoption in a newspaper of general circulation or b) have a summary of this ordinance published twice in a newspaper of general circulation once five days before it's adoption and again within 15 days after adoption° PAGE NO. 9 OF ORDINANCE NO. 94-06 SECTION THREE. Codification. Section One hereof shall be codified in the Danville Municipal Code. Sections TWO and THREE shall NOT be codified in the Danville Municipal Code. The foregoing ordinance was first read and introduced on March 15, 1994 and approved and adopted by the Danville Town Council at a Regular Meeting held on Tuesday, April 5, 1994 by the following vote: AYES: Ritchey, Greenberg, Doyle, Waldo NOES: Shimansky ABSTAIN: None ABSENT: None ~ ¢ j~._~ MAYOR APPROVED AS TO FORM: ATTEST: (2'ITY ATTORNEY CITY CLERK c:Xxplanning\mccann Xxacmz20 PAGE NO. 10 OF ORDINANCE NO. 94-06