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HomeMy WebLinkAbout061025-05.1 PLANNING COMMISSION STAFF REPORT 5.1 TO: Chair and Planning Commission June 10, 2025 SUBJECT: Resolution No. 2025-05, recommending that the Town Council approve Zoning Text Amendment ZTA25-0001 to amend the Town’s Inclusionary Housing Ordinance BACKGROUND An Inclusionary Housing Ordinance requires new residential projects to set aside a percentage of units as below market rate units (BMRs). The inclusionary requirement varies based on housing density and project size. Inclusionary Housing Ordinances are local government’s primary tool in promoting housing that benefits lower income segments of the community. State Law AB 1505 provides authority for local governments to adopt ordinances that require the provision of affordable units as a condition of development. The law also requires the provision of alternate means for compliance. The Town’s Inclusionary Housing Ordinance was first adopted in 1994 and was last updated in 2014. Since the initial adoption, Danville has approved over 50 residential housing approvals which included inclusionary housing requirements. As part of the Town’s 2023-2031 Housing Element, Housing Element Implementation Plan Program 6.1.c. requires the Town to update the Ordinance to require the provision of housing units affordable to lower income households and to provide for an alternative compliance method through the payment in-lieu participation fees. DESCRIPTION Following are the significant recommended revisions to the Ordinance: Affordability Levels The existing Ordinance requires that the BMR units associated with new development be restricted to be affordable to moderate income households (80%-120% of median income). For lower density developments which require that ten percent of the units be provided as BMR units, the revised Ordinance would require five percent of the units to be ZTA25-0001 2 June 10, 2025 Inclusionary Housing Ordinance restricted to low-income households (50%-80% median income), and five percent of the units be restricted to be affordable to moderate income households. For larger, higher density development, the current Ordinance requires that fifteen percent of the units be restricted to be affordable to moderate income households. Recommended Ordinance revisions would require that five percent of the units be restricted to be affordable to very low-income households (less than 50% of the median), five percent to be affordable to low-income households, and five percent to be affordable to moderate income households. In-Lieu Participation Fees The existing Inclusionary Housing Ordinance contains provision for the payment in-lieu participation fees to the Town, rather than incorporating BMR units into a development. Recommended Ordinance revisions would clarify how this fee is determined, and that the fee must be calculated based on the requirement to provide very low and low-income housing in addition to moderate income units. For Rent Market Rate Accessory Dwelling Units The proposed Ordinance revisions include minor revision to the option that allows the incorporation of accessory dwelling units (ADUs) into twenty-five percent of the units in the project. One modification would reduce the minimum size of ADUs under option would reduce the minimum size of an ADU from 500 square feet to 400 square feet, PUBLIC CONTACT Public notice of the June 10, 2025, Planning Commission meeting was placed in a local newspaper and posting of the meeting agenda serves as notice to the general public. ZTA25-0001 3 June 10, 2025 Inclusionary Housing Ordinance RECOMMENDATION Adopt Resolution No. 2025-05, recommending that the Town Council approve Zoning Text Amendment ZTA25-0001 to amend the Town’s Inclusionary Housing Ordinance. Prepared by: David Crompton Chief of Planning Attachments: A - Resolution No. 2025-05 B - Draft Inclusionary Housing Ordinance RESOLUTION NO. 2025-05 RECOMMENDING THAT THE TOWN COUNCIL APPROVE ZONING TEXT AMENDMENT ZTA25-0001 AMENDING THE TOWN’S INCLUSIONARY HOUSING ORDINANCE WHEREAS, The Town of Danville has initiated a Zoning Text Amendment ZTA25-0001 to amend Section 32-73 of the Danville Municipal Code related to Inclusionary Housing; and WHEREAS, an Inclusionary Housing Ordinance Reasonable Accommodation requires new residential projects to set aside a percentage of units as below market rate units; and WHEREAS, Policy 6.1.c. of Appendix G of the Town’s 2023-2031 Housing Element requires the Town to update the Ordinance to require the provision of housing units affordable to lower income households and to provide for an alternative compliance method through the payment in-lieu participation fees; and WHEREAS, the proposed amendments would require very low, low and moderate income units be provided as part of new residential development for applicable development; and WHEREAS, the Planning Commission did review the Zoning Text Amendment request at a noticed public hearing on June 10, 2025; and WHEREAS, the Zoning Text Amendment is statutorily exempt from CEQA, and no significant environmental impacts are expected to be associated with the adoption of this ordinance; and WHEREAS, the public notice of this action was given in all respects as required by law; and WHEREAS, a staff report was submitted recommending that the Planning Commission recommend the Town Council approve the request; and WHEREAS, the Planning Commission did hear and consider all reports, recommendations, and testimony submitted in writing and presented at the hearing; now, therefore, be it RESOLVED that the Planning Commission of the Town of Danville recommends that the Danville Town Council approve Zoning Text Amendment ZTA25-0001 amending the Town’s Inclusionary Housing Ordinance. ATTACHMENT A PAGE 2 OF RESOLUTION NO. 2025-05 APPROVED by the Danville Planning Commission at a regular meeting on June 10, 2025, by the following vote: AYES: NOES: ABSTAINED: ABSENT: _____________________________________ CHAIR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________________ CITY ATTORNEY CHIEF OF PLANNING 32-73 INCLUSIONARY HOUSING. 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 (8) 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. Accessory Dwelling Unit means an attached or detached conditioned residential unit, which provides complete, independent living facilities for one or more persons, consistent with the requirements established under Section . It includes permanent provisions for living, sleeping, cooking, eating and sanitation on the same parcel as the primary unit. The term “accessory dwelling unit” includes a granny unit, second dwelling unit, guesthouse, in-law unit, efficiency unit (as defined in Health and Safety ATTACHMENT B Code section 17958.1), manufactured home (as defined in Health and Safety Code section 18007), and similar accessory dwelling units, which provide complete independent living facilities. (Gov’t. Code §65852.2 (i)(4).) Affordable Housing Cost. The cost to rent or purchase a house as defined in Section 50052.5 of the Health and Safety Code. (Government Code Section 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. Affordable unit, for rent. Affordable rent (including a reasonable utility allowance) shall not exceed the following: 1. For very low-income households, the rental rate is not to exceed the product of thirty percent (30%) times fifty percent (50%) of the area median income adjusted for family size appropriate for the unit. The actual rental rate shall be based on the actual income of a prospective household within the income range; 2. For low-income households, the rental rate is not to exceed whose gross incomes exceed the maximum income for very low-income households, the product of thirty percent (30%) times sixtyeighty percent (8060%) of the area median income adjusted for family size appropriate for the unit. The actual rental rate shall be based on the actual income of a prospective household within the income range; 3. For moderate-income households, the rental rate is not to exceed the product of thirty percent (30%) times one hundred twentyten percent (12010%) of the area median income adjusted for family size appropriate for the unit. The actual rental rate shall be based on the actual income of a prospective household within the income range (Health. and Safety Code Section 50053.) Affordable Unit, for sale. Affordable housing cost may not exceed the following: 1. For very low-income households, the mortgage cost is not to exceed the product of thirty percent (30%) times fifty percent (50%) of the area median income adjusted for family size appropriate for the unit. The actual sale price shall be based on the actual income of a prospective household within the income range; 2. For low-income households whose gross incomes exceed the maximum income for very low-income households and , the mortgage cost is not todo not exceed seventy percent (70%) of the area median income adjusted for family size, the product of thirty percent (30%) times eightyseventy percent (8070%) of the area median income adjusted for family size appropriate for the unit. The actual rental rate shall be based on the actual income of a prospective household within the income range ; 3. For moderate-income households, not less than twenty-eight percent (28%) of the gross income of the household, the mortgage cost is not to exceeding the product of thirtythirty-five percent (3035%) times one hundred twentyten percent (120110%) of area median income adjusted for family size appropriate for the unit. . The actual rental rate shall be based on the actual income of a prospective household within the income range. 3. (Health and Safety Code Section 50052.5(b).) Affordable Unit, for rent. Living units that are required to be rented at affordable rents or available at affordable housing costs to specified households. 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. 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. Area Median Income. The area median income for Contra Costa County pursuant to California Health & Safety Code Section 50093(c). as published at Title 25, California Code of Regulations, Section 6932. Below Market Rate or BMR means residential units sold or rented at rates affordable to very low, low or moderate income households. 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 at least one (1) year in the year immediately preceding the occupancy of an affordable unit. Danville Resident means any person who has lived within the Town limits of Danville for at least one (1) year in the year immediately preceding the occupancy of an affordable unit. Developer means the same as "applicant" (see above definition). Household Income Levels includes: 1. Low-income household. A household whose income that is between fifty percent (50%) and eight percent (80%) of the median household income fordoes 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 50093(c)50079.5. Formatted: List Paragraph, Indent: Left: 0.39" 2. Lower income household. A lower income household as defined in Civil Code Sections 51.3 and 51.12. (Government Code Sections 65915(b)(1) and (c)(1) and Health and Saf. Code Section 50079.5.) It includes low- and very-low income households. 3. Moderate-income household. A household with an annual income between eighty percent the lower income eligibility limit (usually eight percent (80%) of the area median family income) and one hundred twenty percent (120%) of area median income limits applicable to Contra Costa County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50093(c)50079.5 of the California Health and Safety Code. (Government Code Section 65915(c)(2), Health and Safety Code Section 50093.) 4. Very low-income household. A household whose income does not exceed fifty percent (50%) of the median income 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 50093(c)50105. (Government Code Section 65915(b)(2) and (c)(1). 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. 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. (sSee subsection 32-78.878.6.) Project Owner 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. Residential Development means and includes developments of eight (8) 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 or rented to the general public. 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. Town means the Town of Danville or its designee, or any entity with which the Town contracts with to administer this section. Unit Type means dwelling units with similar floor area and number of bedrooms. 32-73.5 Applicability. Each residential development of eight (8) or more housing unitslots is subject to this Section 32-73. A project developed consistent with the regulations of the Density Bonus Ordinance at Municipal Code Section 32-74 shall be considered to have satisfied all requirements contained in this section. A project developed consistent with the California State Density Bonus Law (Government Code Section 65915) shall be considered to have satisfied all requirements contained in this section. 32-73.6 Scope and Affordability Levels. 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 peran acre shall provide a number of BMR units equal to ten percent (10%) of the number of market rate units in the project. Of the 10%, half of the units shall be made available to qualifying low-income households, and the other half shall be made available to qualifying moderate income households. b. Residential developments with resultant densities of eight (8) or more units per acre: greater than seven (7) units an acre: 1. Residential developments with twenty (20) or fewer units 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. Of the 10%, half of the units shall be made available to qualifying low-income households, and the other half shall be made available to qualifying moderate income households. 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. Of the 15%, at least one-third of the units shall be made available to qualifying very low-income households, another one-third shall be made available to qualifying low-income households, and the final one-third shall be made available to qualifying moderate income households. 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. Fractional Units. When the application of the percentages specified above results in a number that includes a fraction, the fraction shall be rounded up to the next whole number if the fraction is seven-tenths (0.7) or more. If the result includes a fraction below seven-tenths (0.7), the developer shall have the option of rounding up to the next whole number and providing the inclusionary unit on site or paying a fee in lieu of providing an additional inclusionary unit. The in-lieu fee shall be calculated in accordance with Section 32-73.8. 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 accessory dwellingsecondary 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 accessory dwellingsecond 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 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 An 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 very low, low, or 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, on a per square foot basis, and the estimated total cost of a new, non-BMR unit, on a per square foot basis. 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 estimated cost of construction may include the estimated construction costs, the cost of land, financing costs, consultant costs, and other demonstrated direct costs. c. The square footage used to calculate the in-lieu fee shall be equal to the average unit size of all the non-BMR units in the development. d.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 twenty (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 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 .7 5 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 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). However, BMR unit sizes shall not be less than twenty percent (20%) below the average non-BMR units. 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. l. 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. 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 32-4.7 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 Accessory Dwelling Units. Notwithstanding the provisions of any other section contained within this chapter, 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 accessory dwelling units second units, as set forth in this section. a. Applicability. The provisions of this section shall apply to all new residential developments with eight (8) or more dwelling units.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) accessory dwelling units would be appropriate for a project, the minimum number of for-rent BMR accessory dwellingsecond 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 32-73.10g, shall be recorded as a deed restriction on the property which incorporates a for-rent BMR second unit. d. Qualifying Households: Maximum Income of Renters. The for-rent BMR second unit shall not be rented to low income households, as defined. 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 low income 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 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 accessory dwellingsecond 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 accessory dwellingsecond unit. 1. Architectural and Physical Design. For-rent BMR accessory dwellingsecond units shall be architecturally compatible with main residential unit in roof pitch, scale, colors, materials, trim, windows, as well as other exterior physical features. Development standards shall be as established within the Town’s Accessory Dwelling Unit Ordinance Section 32-76. The maximum floor area of a for-rent BMR second unit shall be as defined in subsection 32-73.15g,5. 1. 2. Relationship to Main Residence. (a) The accessory dwelling unitsecond 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, and the like); and shall meet all setback requirements applicable to the main residence; (b) (c) The accessory dwellingsecond unit shall have a separate entrance from the primary residencemain unit; (d) There shall be no direct access from main residence to the accessory dwellingsecond unit; (e) There shall be a wall separating the garage of the primary residence and the garage/ parking area of the secondary unit; Formatted: Numbered + Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Indent at: 0.5" Formatted: Justified, Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 0.82" (f) The accessory dwelling second unit shall have a separate mailing address to allow independent contact with the unit's occupants; and (g) Any proposed modifications to the accessory dwellingsecond unit must secure prior review and approval by the Chief of Planning. 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 accessory dwelling shall be required to have its own water heater, washer/dryer hookups, 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 six hundred fifty (650) square feet in size for developments with lots averaging eight thousand (8,000) square feet or more (i.e., projects with a density 4.15 dwelling units per acre); (b) The accessory dwellingsecond unit shall be a minimum of fourfive hundred (400500) square feet in size. for developments with lots averaging less than eight thousand (8,000) square feet (i.e., projects with a density greater than 4.15 dwelling units per acre); (a) Formatted: Justified, Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 0.83" (c) Projects with a typical minimum lot size of six thousand five hundred (6,500) square feet (i.e., equivalent to a density of five (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)(b) 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.