HomeMy WebLinkAbout2014-08ORDINANCE NO. 2014-08
REPEALING SECTION 32 -73 - INCLUSIONARY HOUSING OF THE
DANVILLE MUNICIPAL CODE AND ADDING A NEW
SECTION 32 -73 - INCLUSIONARY HOUSING
The Danville Town Council does ordain as follows:
SECTION 1. REPEALING THE EXISTING SECTION 32 -73 OF THE DANVILLE
MUNICIPAL CODE.
The existing Section 32 -73 of the Danville Municipal Code is repealed in its entirety.
SECTION 2. ADDING A NEW SECTION 32 -73 TO THE DANVILLE MUNICIPAL
CODE.
A new Section 32 -73 is hereby added to the Danville Municipal Code to read as follows:
32 -73 INCLUSIONARY HOUSING
32 -73.1
Title
32 -73.2
Findings
32 -73.3
Purpose
32 -73.4
Definitions
32 -73.5
Applicability
32 -73.6
Scope
32 -73.7
Incentives
32 -73.8
In Lieu Participation Fees
32 -73.9
Application Process
32 -73.10
General Requirements
32 -73.11
Fee Waivers and Priority Processing
32 -73.12
Violation - Penalty
32 -73.13
Enforcement
32 -73.14
Appeals
32 -73.15
For -Rent Belozo Market Rate Second Units
32 -73.1- Title.
This section shall be entitled the "Inclusionary Housing Ordinance."
32 -73.2 - Findings.
The Town Council of the Town of Danville finds that Danville is experiencing a housing
shortage for affordable housing. 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 affordable housing,
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 affordable housing 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 -73.3 - Purpose.
The purpose of this section is to enhance the public welfare and assure that new
residential developments with eight or more dwelling units or lots contribute to the
attainment of the Town's housing goals by increasing the production of affordable
housing, and additionally stimulating funds for development of affordable housing.
The regulations set forth in this chapter shall apply to all areas of the Town of Danville.
32 -73.4 - Definitions.
For the purposes of this section, 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 housing cost. The cost to rent or purchase a house as defined in Section
50052.5 of the Health and Safety Code. (Govt. Code § 65915(d)(1).) Housing cost
means the monthly mortgage (including 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.
b. Affordable unit, for rent. Affordable rent (including a reasonable utility allowance)
shall not exceed the following:
(1) For very low - income households, the product of 30% times 50% of the
area median income adjusted for family size appropriate for the unit;
(2) For low - income households whose gross incomes exceed the maximum
income for very low- income households, the product of 30% times 60% of
the area median income adjusted for family size appropriate for the unit;
(3) For moderate - income households, the product of 30% times 110% of the
area median income adjusted for family size appropriate for the unit.
(Hlth. and Saf. Code § 50053.)
C. Affordable unit, for sale. Affordable housing cost may not exceed the following:
INCLUSIONARY HOUSING PAGE 2 OF ORDINANCE NO. 2014-08
(1) For very low - income households, the product of 30% times 50% of the
area median income adjusted for family size appropriate for the unit;
(2) For low- income households whose gross incomes exceed the maximum
income for very low - income households and do not exceed 70% of the
area median income adjusted for family size, the product of 30% times
70% of the area median income adjusted for family size appropriate for
the unit;
(3) For moderate - income households, not less than 28% of the gross income of
the household, not exceeding the product of 35% times 110% of area
median income adjusted for family size appropriate for the unit. (filth.
and Saf. Code § 50052.5(b).)
d. Affordable units. Living units that are required to be rented at affordable rents or
available at affordable housing costs to specified households.
e. Area median income. The area median income for Contra Costa County as
published at Title 25, California Code of Regulations, Section 6932.
f. Applicant means any person, firm, partnership, association, joint venture,
corporation, or any entity or combination of entities which seeks Town real
property development permits and approvals.
g. 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.
h. Below Market Rate or BMR means residential units sold or rented at rates
affordable to very low, low or moderate income households.
i. 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 (1)
year in the year immediately preceeding the occupancy of an affordable unit.
j. Danville resident means any person who has lived within the Town limits of
Danville for one (1) year in the year immediately preceding the occupancy of an
affordable unit. .
k. Developer means the same as "applicant" (see above definition).
h. Household income levels includes:
(1) Lout- income household. A household whose income does not exceed the
low- income limits applicable to Contra Costa County, as published and
periodically updated by the State Department of Housing and
Community Development pursuant to Health and Safety Code section
50079.5.
(2) Lover income household. A lower income household as defined in Civil
Code sections 51.3 and 51.12. (Govt. Code §§ 65915(b)(1) and (c)(1) and
Health and Saf. Code § 50079.5.) It includes low- and very -low income
households.
(3) Moderate - income household. A household with an annual income between
the lower income eligibility limit (usually 80% of the area median family
income) and 120% of area median income limits applicable to Contra
Costa County, as published and periodically updated by the State
INCLUSIONARY HOUSING PAGE 3 OF ORDINANCE NO. 2014-08
Department of Housing and Community Development pursuant to
Section 50079.5 of the California Health and Safety Code. (Govt. Code §
65915(c)(2), Health and Saf. Code § 50093.)
(4) Very loza- income household. A household whose income does not exceed the
very low- income limits applicable to Contra Costa County, as published
and periodically updated by the State Department of Housing and
Community Development pursuant to California Health and Safety Code
section 50105. (Govt. Code § 65915(b)(2) and (c)(1).
L 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.
j. 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 section. (See subsection 32- 78.6.)
k. Project ozaner means any person, firm, partnership, association, joint venture,
corporation, or any entity or combination of entities which holds fee title to the
land on which the project is located.
1. Residential development means and include developments of eight 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.
m. Secondary unit means a residential unit which provides complete, independent
living facilities for one (1) or more persons. It includes permanent provisions for
living, sleeping, cooking, eating and sanitation on the same parcel as the primary
unit.
n. Toznn means the Town of Danville or its designee, or any entity with which the
Town contracts with to administer this section.
o. Unit type means dwelling units with similar floor area and number of bedrooms.
32 -73.5 - Applicability.
Each residential development of eight or more lots is subject to this Section 32 -73. A
project developed consistent with the regulations of the Density Bonus Ordinance at
Section 32 -74 shall be considered to have satisfied all requirements contained in this
section.
32 -73.6 - Scope.
Every approval for residential development shall assure provision of one (1) or more
BMR units according to the following regulations:
a. Residential development with resultant densities less than or equal to seven (7)
units an acre shall provide a number of BMR units equal to ten percent (10 %) of
the number of market rate units in the project.
INCLUSIONARY HOUSING PAGE 4 OF ORDINANCE NO. 2014-08
b. Residential developments with resultant densities of greater than seven (7) units
an acre:
(1) Residential developments up to twenty (20) units in size shall provide a
number of BMR units equal to ten percent (10 %) of the number of market
rate units in the project.
(2) Residential developments containing twenty -one (21) or more units shall
provide a number of BMR units equal to fifteen percent (15 %) of the
number of market rate units in the project.
(3) All residential developments with densities of thirteen (13) 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
section may be provided at a location within the Town other than the residential
development which creates the requirement for the affordable units.
d. If the BMR units produced in a project with a resultant density of greater than
seven (7) 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 (10 %) 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 -73.7 - 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.
INCLUSIONARY HOUSING PAGE 5 OF ORDINANCE NO. 2014-08
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 nonprofit organization, the Town may elect to pay the cost of the
consultant upon approval by the Town Council.
32 -73.8 - 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 density, and environmental
constraints. In such cases the applicant, upon approval of the Town Council, may
contribute fees in lieu of providing inclusionary 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 (13) 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 one hundred ten percent (110 %) of
current area 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 -73.9 - 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 -73.10 - 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. The term of affordability is
20 years, except that the Town Council may determine that the physical design of
the BMR units is such to ensure that the unit will remain affordable in the long
INCLUSIONARY HOUSING PAGE 6 OF ORDINANCE NO. 2014-08
term to qualifying moderate income households, and reduce the term of
affordability to a minimum term of not less than ten (10) 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 one
hundred ten percent (110 %) of the current area median income, adjusted for
expected household size and appropriate unit size. A maximum of thirty -five
percent (35 %) of household income shall be assigned to the housing costs for the
for -sale BMR unit.
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 one
hundred ten percent (110 %) of the current area median income, adjusted for
expected household size and appropriate unit size. A maximum of thirty percent
(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 section
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 nonprofit 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 section 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
INCLUSIONARY HOUSING PAGE 7 OF ORDINANCE NO. 2014-08
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
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 units 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 section.
1. The Town Manager may establish administrative guidelines for administration
of the provisions of this section.
32- 73.11- 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 -73.12 - Violation- Penalty.
It is unlawful for any person, firm, corporation, partnership or other entity to violate
any provision or to fail to comply with any of the requirements of this section. A
violation of any of the provisions or failing to comply with any of the requirements of
this section shall constitute a misdemeanor; except that, notwithstanding any other
provisions of this Code, any such violation constituting a misdemeanor under this
section may, at the discretion of the enforcing authority, be charged and prosecuted as
an infraction.
INCLUSIONARY HOUSING PAGE 8 OF ORDINANCE NO. 2014-08
32 -73.13 - Enforcement.
a. The Town Manager is hereby designated the enforcing authority of this section.
b. The provisions of this section shall apply to all agents, successors and assigns of
an applicant proposing a residential development governed by this section. No
building permit or occupancy permit shall be issued, nor any development
approval be granted, which does not meet the requirements of this section.
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 section 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 -73.14 - 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 subsections 1 -8.1 through 1 -8.5 of the Danville Municipal Code.
The developer may appeal for a reduction, adjustment, or waiver of obligations if he or
she establishes the absence of a reasonable relationship or nexus between the impact of
the development and the inclusionary housing requirement.
32 -73.15 - For -Rent Below Market Rate Second Dwelling Units.
Notwithstanding the provisions of any other section contained within this ordinance,
and if it is determined to be appropriate by the Danville Town Council, the applicant
may fulfill a development's inclusionary housing requirements with the development of
second units, as set forth in this section.
a. Applicability. The provisions of this section shall apply to all new residential
developments with eight or more lots throughout the Town, with the exception
of developments established within the Downtown Redevelopment Area.
b. Scope. If the Town Council determines that development of for -rent Below
Market Rate (BMR) second dwelling units would be appropriate for a project, the
minimum number of for -rent BMR second units supplied in a project shall be
equivalent to twenty -five percent (25 %) of the number of market rate units
established in the project.
C. Affordable Housing Agreement. An affordable housing agreement, as generally
provided for in subsection 32- 73.108, shall be recorded as a deed restriction on
the property which incorporates a for -rent BMR second unit.
INCLUSIONARY HOUSING PAGE 9 OF ORDINANCE NO. 2014-08
d. Qualifi/ing Households: Maximum Income of Renters. The for -rent BMR second unit
shall not be rented to a household with an income which exceeds the high end of
the "low" income range (Note: The Town shall advise the owners of any annual
changes in the area median incomes).
e. Restriction on Rental Rate. The rental rate shall not exceed what is affordable to a
household earning the high end of the "low" income range, adjusted for
household size and providing for appropriate allowance for utilities. A
maximum of thirty percent (30 %) of the household income shall be assigned to
the housing costs for the for -rent BMR second unit (this shall cover both the
unit's rental rate and an appropriate allowance for utility costs). The Town shall
advise the owner of annual changes in the allowable rental rate (and shall
provide a schedule for utility allowance adjusted for household size).
f. Self - Reporting. The owner shall self - report the status of the for -rent BMR second
unit (using a Town - supplied reporting form) in conjunction with receipt of the
Town's annual rental rate update report. Owners of the for -rent BMR second
units are not required to continuously market and rent the second units. If the
Town determines that all the for -rent BMR units within a particular development
have met the occupancy goal and intent of this ordinance section, then the Town
may eliminate the requirement to self - report the status of the for -rent second
unit(s) in that development.
g. Design Parameters. The for -rent BMR second units shall be designed such that the
physical layout of the unit and its interrelationship with the primary unit ensures
its availability as a self - contained viable second unit.
(1) Architectural and Physical Design. For -rent BMR second units shall be
architecturally compatible with main residential unit in roof pitch, scale,
colors, materials, trim, windows, as well as other exterior physical
features. The maximum floor area of a for -rent BMR second unit shall be
as defined in subsection 32- 73.168,5.
(2) Relationship to Main Residence.
(a) The second unit may be detached or attached to the main residence;
(b) If detached second units are proposed, each second unit shall be
designed to provide privacy for the main residential unit (i.e.,
minimum number of windows facing the main unit, relative
location of entry areas, etc.) and shall meet all setback requirements
applicable to the main residence;
(c) The second unit shall have a separate entrance from the main unit,
(d) There shall be no direct access from main residence to the second
unit;
(e) There shall be a wall separating the garage of the primary residence
and the garage/ parking area of the secondary unit;
(f) The second unit shall have a separate mailing address to allow
independent contact with the unit's occupants; and
(g) Any proposed modifications to the second unit must secure prior
review and approval by the Chief of Planning.
INCLUSIONARY HOUSING PAGE 10 OF ORDINANCE NO. 2014-08
(3) Adequate Facilities. At the time the tentative map associated with the
project is reviewed, a finding must be made that the following adequate
facilities are provided:
(a) The second unit shall have complete independent living facilities,
adequate to meet the needs of at least a one - person household;
(b) Permanent provisions for food preparation, sleeping, and bathing
needs shall be provided;
(c) Disposal of sanitary waste shall be provided by the public sanitary
sewer district;
(d) Provision of potable water shall be provided by the municipal
utility district;
(e) To function as an independent living unit, the second dwelling
shall be required to have its own water heater, washer /dryer hook-
ups, air - conditioning /heating unit (with independent cooling
/heating controls).
(4) Parking Requirements. The second unit shall have its own on -site covered
parking space (nine by nineteen (9'x 19') feet. minimum clear), which shall
be walled off and accessed separately. The on -site parking space for the
second unit may be provided as a garage or as a carport.
(5) Minimum Lot Size /Maximum Second Unit Size/Floor Area Ratio.
(a) The second unit shall be a minimum of 650 square feet in size for
developments with lots averaging 8,000 square feet or more (i.e.,
projects with a density 4.15 dwelling units per acre);
(b) The second unit shall be a minimum of 500 square feet in size for
developments with lots averaging < 8,000 square feet (i.e., projects
with a density > 4.15 dwelling units per acre);
(c) Projects with a typical minimum lot size of 6,500 square feet (i.e.,
equivalent to a density of 5 dwelling units per acre) shall not be
allowed to utilize this approach for meeting their affordable
housing requirements;
(d) The resulting floor area ratio (FAR) for the primary and secondary
units on an individual lot shall not exceed sixty percent (60 %);
(e) Deviation from the above -cited dimensional criteria may be
considered by the Town Council on a project -by- project basis.
(6) Setback requirements will be determined on a project -by- project basis.
SECTION 3. CODIFICATION. Section 2 of this ordinance shall be codified in the
Danville Municipal Code.
SECTION 4. PUBLICATION AND EFFECTIVE DATE. The City Clerk shall have a
summary of this ordinance published twice in a newspaper of general circulation, once
within five (5) days before its adoption and once within 15 (fifteen) days after adoption.
This ordinance shall become effective 30 days after adoption.
INCLUSIONARY HOUSING PAGE 11 OF ORDINANCE NO. 2014-08
SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause or phrase of
this ordinance is for any reason held to be invalid, such decision shall not affect the
validity of the remaining portions of the ordinance. The Danville Town Council hereby
declares that they would have adopted the ordinance, and each section, subsection,
sentence, clause, or phrase thereof, irrespective of the fact that one or more sections,
subsections, sentences, clauses or phrases was declared invalid.
The foregoing ordinance was introduced on September 16, 2014 and approved and
adopted by the Danville Town Council at a regular meeting held on October 7, 2014, by
the following vote:
AYES Storer, Doyle, Arnerich, Morgan, Stepper
NOES: None
ABSTAIN: None
ABSENT: None
APPROVED AS TO FORM:
7
CITY ATTORNEY
CLERK'S CERTIFICATE
I, Marie Sunseri, City Clerk of the Town of Danville, hereby certify that the foregoing is
a true and accurate copy of Ordinance No. 2014 -08 of said Town and that said
ordinance was published according to law.
Dated: /
1 /I ®
City Clerk o"he
Town of Da�nville
INCLUSIONARY HOUSING PAGE 12 OF ORDINANCE NO. 2014-08