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HomeMy WebLinkAboutCC ORD 2009-2317ORDINANCE NO. 2009 — 2317 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 18 OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING CHAPTER 18.142 PERTAINING TO RESIDENTIAL DENSITY BONUS AND AFFORDABLE HOUSING INCENTIVES WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code; and WHEREAS, pursuant to legal notice, hearings were held by the Planning Commission and the City Council of National City, and all persons interested were given the opportunity to appear and be heard before said Planning Commission and City Council; and WHEREAS, the Planning Commission has regularly and duly certified its report to the City Council, and has recommended such amendment. NOW, THEREFORE, the City Council does hereby ordain as follows; Section 1. All protests, if any, against said amendment to the Municipal Code and each of them be and hereby are denied and overruled. Section 2. That Section 18.142 of Title 18 of the Municipal Code be amended to read as follows: Sections: 18.142.010 Intent and Purpose 18.142.020 Definitions 18.142.030 Density bonus 18.142.040 Concessions, incentives, and development standards 18.142.050 Application requirements and review. 18.142.060 Density bonus housing agreement. 18.142.010 Intent and purpose. The intent and purposes of this Chapter are to: A. Implement the policies of the General Plan's Housing Element for developing affordable housing for households with very low, low, and moderate incomes. B. Encourage affordable housing units to be developed citywide and designed to be consistent with the surrounding neighborhood. C. Implement the provisions of State Government Code Section 65915. Ordinance No. 2009 - 2317 Residential Density Bonus and Affordable Housing NCMC Chapter 18.42 18.142.020 Definitions. Within this Chapter 18.142, the following definitions shall apply: A. "Additional incentives" means any regulatory concessions or incentives which would result in identifiable cost avoidance or reductions that are offered in addition to a density bonus, as also specified in California Government Code Subsections 65915. B. "Density bonus" means a density increase of up to thirty-five percent over the otherwise maximum residential density allowable by the applicable zoning designation, pursuant to State Government Code Section 65915, as amended from time to time. C. "Density bonus units" means those residential units granted pursuant to the provisions of this Chapter that exceed the otherwise allowable maximum residential density for the development site. D. "Development standard" shall have the meaning given that term by Government Code Section 65915. E. "Financial Pro Forma" means a financial report for density bonus projects that shall include identifiable, financially sufficient, and actual cost reductions achieved through any requested incentives or concessions, as well as evidence that the cost reduction allows the developer to provide affordable rents or affordable sales prices. F "Housing development" for the purpose of this Chapter means construction projects consisting of five (5) or more residential units, including single-family, multi -family, and mobile homes for sale or rent; G. "Lower income household" means households whose income is no more than 80 percent of the area median income of San Diego County, as established and amended time to time by Section 8 of the United States Housing Act of 1937, pursuant to Section 50079.5 of the California Health and Safety Code. H. "Maximum residential density" means the maximum number of residential units permitted by the City's General Plan Land Use Element and Land Use Code at the time of application, excluding the provisions of this Chapter. In calculating the required number of dwelling units affordable to moderate, lower, or very low income households, any decimal fraction resulting from the applicable percent of the total units shall be rounded to the next larger whole number. "Moderate income household" means households whose income does not exceed 120 percent of the area median income of San Diego County, as established and amended time to time by Section 8 of the United States Housing Act of 1937, pursuant to Section 50093 of the California Health and Safety Code. J. "Non -restricted unit" means all units within a housing development as defined in this Chapter, excluding the target units. K "Target unit" means a dwelling unit within a housing development that will be reserved for sale to or rent to, and affordable to, very low, or moderate income households, or qualifying residents. L."Very low income household" means households whose income is no more than 50% of the area median income of San Diego County, as established and amended time to time by Section 8 of the United States Housing Act of 1937, pursuant to Section 50105 of the California Health and Safety Code. 18.142.030 Density Bonus. A. In applications for projects meeting the minimum threshold of five (5) units or more, the density bonus provisions set forth in Government Code Section 65915, as amended from time to time, shall apply. B. It is the intent of this Section to ensure that all projects applying for the concessions and incentives of this Section provide for affordable housing units that are comparable in size, design, and quality to the market units in the same project. The Planning Ordinance No. 2009 - 2317 2 Residential Density Bonus and Affordable Housing NCMC Chapter 18.42 Director, unless otherwise specified, shall have the discretion and authority to enforce this provision during the application process. 18.142.040 Concessions, incentives, and development standards. In applications for projects meeting the minimum threshold of five (5) units or more, concessions and incentives including reductions in site development standards, modifications of zoning code or architectural design requirements, and other incentives or concessions defined in Government Code Section 65915(1) may be requested, consistent with the parameters enumerated below. A. Concessions and incentives. The applicant shall provide a financial pro forma demonstrating to the City that the requested concession or incentive results in identifiable, financially sufficient, and actual cost reductions to the project pursuant to California Government Code Section 65915(1)(1). B. Development Standards. Applicants may seek a waiver or modification of development standards that will have the effect of precluding the construction of a residential development meeting the criteria of Government Code Section 65915 at the densities or with the incentives or concessions permitted by that Section. C. Nothing in this Section requires the City to provide direct financial incentives for the residential development, including but not limited to the provision of publicly owned land, waiver of fees, off -site improvements, or dedication requirements. 18.142.050 Application requirements and review. A. Application Conference. Prior to submitting an application, an applicant proposing a housing development pursuant to this Section shall schedule a pre -application conference with appropriate Planning and/or Housing Division staff. The applicant should provide the following information: 1. A brief description of the proposed development, including at a minimum the total number of units, total number of target units, and total number of density bonus units proposed. 2. The combined general plan/zoning designations and assessor parcel number(s) of the project site. 3. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. 4. If an additional incentive(s) is requested, the application should describe why the additional incentive(s) is necessary to ensure affordability of the target units and density bonus units proposed; 5. The developer/applicant should also submit the project pro -forma, outlining revenue sources, expenses, and projected profit. B. Application/Processing. Requests for a density bonus and/or additional incentive(s) pursuant to this Chapter shall be submitted to the Planning Division and processed pursuant to procedures in Chapter 18.116 for approval of a conditional use permit and concurrently with any other application(s) required for the development. In addition, applications shall include the following: 1. A description of any requested density bonuses, incentives, concessions, waivers or modifications of development standards, or modified parking standards. 2. Identification of all affordable units qualifying for the project for a density bonus, and level of affordability of all affordable units. 3. For all incentives and concessions, a financial pro forma demonstrating that the requested incentives and concessions result in identifiable, financially sufficient, and actual cost reductions is required. 4. For waivers or modifications of development standards: evidence that the imposition of the development standards for which a waiver is requested will have the effect of Ordinance No. 2009 - 2317 3 Residential Density Bonus and Affordable Housing NCMC Chapter 18.42 precluding the construction of the residential development at the densities or with the incentives or concessions permitted by Government Code Section 65915. 5. Any financial pro forma submitted to comply with this Section may not include the lost opportunity cost of any affordable units (i.e., the revenue that would have been generated had the units been rented or sold at market rate) and may include as an additional cost only those additional expenses that are required solely because of the proposed construction of the affordable units. The pro forma shall also include: (a) the actual cost reduction achieved through the incentive or concession; and (b) evidence that the cost reduction allows the developer to provide affordable rents or affordable sales prices. 6. The City may retain a consultant to review the financial report (pro forma). The cost of the consultant shall be borne by the applicant with the following exception: if the applicant is a non profit organization, the cost of the consultant may be paid by the City upon prior approval of the City Council. C. Findings for Approval. Before any density bonus and/or additional incentive is granted, the approving authority shall make the following findings: 1. The residential development is eligible for a density bonus and any concessions, incentives, waivers, modifications, or reduced parking standards requested. 2. The residential development conforms to all standards for affordability included in this Section. 3. Any requested incentive or concession will result in identifiable, financially sufficient, and actual cost reductions based upon appropriate financial analysis and documentation if required by Section 18.142.050. 4. If a waiver or modification is requested, the applicant has shown that the imposition of the development standards sought to be waived or modified will have the effect of physically precluding the construction of the development at the densities or with the incentives or concessions otherwise permitted by this Section. D. Findings for Denial — Concessions, Incentives, Waivers, Modifications. 1. Concessions or Incentives. The City may deny one or more requested concessions or incentives if, based on substantial evidence, the City makes either of the following findings: a. The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Section65915(c); or b. The concession or incentive would have a specific adverse impact, as defined in Government Code Section 65598.5(d)(2), upon public health and safety or the physical environment, or on any real property that is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rending the development unaffordable to very low, low, and moderate income households. 2. Waivers and Modifications. The City may deny one or more requested waivers or modifications if the City makes either of the following findings: a. The waiver or modification would have a specific adverse impact, as defined in Government Code Section 65598.5(d)(2), upon public health and safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact; or b. The waiver or modification would have a specific adverse impact on any real property that is listed in the California Register of Historical Resources. E. Deed Covenant. Approval of a density bonus and/or additional incentive(s) pursuant to this Chapter shall require the recordation of a deed covenant recorded against the property to ensure the target unit(s) is maintained for affordability for the time period required Ordinance No. 2009 - 2317 4 Residential Density Bonus and Affordable Housing NCMC Chapter 18.42 prior to Final Map recordation or prior to the issuance of a building permit, if no subdivision of property is involved. F. Appeal Procedure. The decision of the Planning Commission to approve or deny a request for a density bonus, additional incentive(s), and/or waivers or modifications of development standards pursuant to this Chapter may be appealed to the City Council pursuant to procedures for appeal of other discretionary permit applications that are concurrently considered, or f if no other discretionary permit applications are concurrently considered, the decision of the Planning Commission may be appealed pursuant to procedures specified in Chapter 18.116 of the Municipal Code. 18.142.060 Density bonus housing agreement. A. Applicants/developers requesting a density bonus shall enter into a Density Bonus Housing Agreement with the City. The terms of the draft agreement shall be approved by the Executive Director of the Community Development Commission of the City of National City or his designee. B. Following execution of the Agreement by all parties, the completed Density Bonus Housing Agreement, or memorandum thereof, shall be recorded with the County of San Diego Recorders Office, and the conditions therefore filed and recorded on the parcel or parcels designated for construction of target units and a copy of the recorded document shall be provided to the City. Recordation of the Agreement shall occur prior to recordation of a Final Map or prior to issuance of building permits, whichever occurs first. The Density Bonus Housing Agreement shall be binding to all future owners and successors in interest during the term of the Agreement, unless rescinded by the City upon completion of terms of the Agreement. C. The Density Bonus Housing Agreement shall include at least the following: 1. The total number of units approved for the housing development, including the number of target units. 2. A description of the household income group to be accommodated by the housing development, as outlined in Section 18.142.050 of this Chapter, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost. 3. The location, unit sizes (square feet), and number of bedrooms of target units. 4. Tenure of use restrictions for target units of at least ten or thirty years, in accordance with Section 18.142.050 of this Chapter. 5. A schedule for completion and occupancy of target units. 6. A description of the density bonus, additional incentive(s) or equivalent financial incentives being provided by the City. 7. A requirement to submit to the Executive Director of the Community Development Commission of the City of National City or his designee for review and approval of an Affirmative Marketing Plan, which details the actions the developer/applicant shall take to provide information and otherwise attract eligible persons to the available housing units without regard to race, sex, sexual orientation, marital status, familial status, color, religion, national origin, ancestry, handicap, age, or any other category which may be defined by law now or in the future. 8. A description of remedies for breach of the Agreement by either party. The City may identify tenants or qualified purchasers as third party beneficiaries under the Agreement. 9. Other provisions to ensure implementation and compliance with this Chapter. 10. Provision allowing payment of fee by applicant to the City to recover their administrative expenses. Ordinance No. 2009 - 2317 5 Residential Density Bonus and Affordable Housing NCMC Chapter 18.42 D. In the case of for -sale housing developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period: 1. Target units shall, upon initial sale, be sold to eligible very low, low, or moderate income households at an affordable sales price and housing cost, or to qualified residents (i.e., maintained as senior citizen housing) as defined by this Chapter. 2. Target units shall be initially owner -occupied by eligible very low, low, or moderate households, or by qualified residents in the case of senior citizen housing. 3. Target units, if later rented by the owner, shall be made available to eligible very low, low, or moderate income households at an affordable rent or to qualified residents (i.e., senior citizens) as defined by this Chapter. 4. The initial purchaser of each target unit shall execute an instrument or agreement approved by the City restricting the sale or rental of the target unit in accordance with this Ordinance during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain such provisions as the City may require to ensure continued compliance with this Chapter and the State density bonus law. E. In the case of rental housing developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of target units during the use restriction period: 1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining target units for qualified tenants; 2. Property owners shall be required to verify tenant incomes on an annual basis and maintain books and records to demonstrate compliance with this Chapter. 3. Property owners shall be required to submit an annual report to the City, which includes the name, address, household size, and income of each household occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit. 4. Property owners shall be required to allow a City representative to inspect each unit annually at a minimum to ensure that units are being maintained to local Code and the Department of Housing and Urban Development (HUD) Housing Quality Standards. Section 3. That a Negative Declaration was prepared to evaluate potential environmental impacts of the proposed amendment to Title 18.142 of the Municipal Code and based on that evaluation and in compliance with the California Environmental Quality Act (CEQA), it has been determined that there is no possibility that the amendment will have a significant environmental effect. The amendment is limited to density bonus projects that will be evaluated individually and on their own merit at the time of any future density bonus applications. PASSED and ADOPTED this 17th day of Ma+'cfi, 2009. ATTEST: Michael R. Dalla it Ron Morrison, Mayor APPROVED AS TO FORM: /ThL /-) George H. biser, III, City Attorney Mi y Clerk Ordinance No. 2009 - 2317 6 Residential Density Bonus and Affordable Housing NCMC Chapter 18 42 Passed and adopted by the Council of the City of National City, California, on March 17, 2009 by the following vote, to -wit: Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: By: RON MORRISON Mayor of the City of National City, California City Jerk of the City of National City, California Deputy I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar days had elapsed between the day of its introduction and the day of its final passage, to wit, on March 3, 2009, and on March 17, 2009. I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not less than a majority of the members elected to the Council and that there was available for the consideration of each member of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of ORDINANCE NO. 2009-2317 of the City Council of the City of National City, passed and adopted by the Council of said City on March 17, 2009. By: City Clerk of the City of National City, California Deputy