Ordinance 2859CITY OF ALAMEDA ORDINANCE NO.2859
New Series
AMENDING THE ALAMEDA MUICIPAL CODE BY
REPEALING THE EXISTING ARTICLE 27-1 AND ADDING A
NEW ARTICLE 27-1 (AFFORDABLE HOUSING UNIT/FEE
REQUIREMENTS) TO CHAPTER XXVII (DEVELOPMENT
FEES)
BE IT ORDAIND by the City Council of the City of Alameda that:
Section 1.The existing Aricle 27-1 of the Alameda Municipal Code is hereby
repealed and a new Aricle 27-1 is added to the Alameda Municipal Code to read as follows:
ARTICLE 27-
AFFORDABLE HOUSING
UNIT/FEE REQUIREMENTS
27-1.1 Purpose.
a. Mitigation of Affordable Housing Impacts. The purpose of this chapter is to (1)
implement the goals and objectives ofthe Housing Element of the City of Alameda General Plan
and the Strategic Plan of the City of Alameda, (2) mitigate thehousingimpacts caused by new
changed and expanded commercial and industral development in the City of Alameda and (3) meet
the need for housing affordable to persons of low- and moderate-income. The City Council has
determined that affordable housing requirements are needed, has found the following requirements
to be consistent with its General Plan and , pursuant to Governent Code section 65913.2 , has
considered the effects . of the fee with respect to the City s housing needs as established in the
Housing Element of the General Plan.
27-1.2 Findings.
a. Need for Affordable Housing. The City Council has found that persons of low- and
moderate-income are experiencing increasing difficulty in locating and maintaining adequate , safe
and sanitary affordable housing. As noted in the City s Housing Element, a regional shortage of
affordable housing is contrbuting to overpayment for housing accommodations , sometimes leading
to temporar or permanent homelessness. According to the Association of Bay Area Governents
Housing Needs Projections , the City of Alameda needs to provide housing affordable to persons of
low- and moderate-income. Further, the City s Housing Assistance Plan identifies the need for
rental subsidies for low- and moderate-income households.
b. Impact on Housing Needs Created by Non-residential Development. Pursuant to the
Affordable Housing Requirement and In Lieu Fee Methodology report prepared for the City of
Alameda by Economic and Planing Systems Inc. In November of 1989 , the City Council finds that
the construction or expansion of non-residential development is a major factor in attracting new
employees to the City. A substantial number of these employees and their families reside or will
reside in the City and place a greater strain on an already impacted housing stock. Employees who
are unable to find affordable housing in the City arc forced to commute long distances. This
situation adversely impacts on their quality of life, consumes limited energy resources , increases
traffc congestion and has a negative impact on air quality. Employers have or will have problems
attracting a labor force.
c. Means of Meeting Affordable Housing Demand. New employees will compete with
present residents for scarce affordable housing in the City. Increasing the production and availability
of affordable housing is problematic. Prices and rents for affordable housing remain below the level
needed to attact new constrction. At the same time , escalating land costs and rapidly diminishing
amounts of land available for development hinder the provision of affordable housing units solely
through private action. Programs and activities to expand affordable housing oppOliunities can be
accomplished through public/private partnership action. Federal and State housing finances and
subsidy programs are not sufficient by themselves to satisfy the affordable housing needs associated
with employment resulting from non-residential development. It is the purpose of this chapter
establish a feasible means by which developers of non-residential development proj ects assist in (I)
increasing the supply oflow- and moderate-income housing and (2) increasing the supply of housing
in close proximity to employment centers.
d. Imposing Housing Requirement on Developers Whose Projects Create the Need. It is
appropriate to impose some of the cost of the increased burden of providing housing for low- and
moderate-income. people necessitated by such development directly upon the sponsors of a
development , and indirectly upon the occupiers. The imposition of an affordable housing unit/fee
requirement is an appropriate means to accomplish the purpose of this chapter. In calculating the
affordable housing unit/fee requirement , the City Council has taken into account other factors in
addition to the simple calculation of contrbution. These include impact ofthe unit requirements and
in-lieu fee on construction costs , special factors and hardships associated with certain types of
development, and legal issues.
e. Rational Relationship between Afordable Housing Need Created and Unit/Fee
Requirement. The unit requirements and housing fees contained.in this chapter are designed to
create a rational relationship between the amount of housing need created by the land use and
housing unit requirement or the size of the fee , taking into account the effect of such unit or fee
requirement on providing affordable housing opportunities and economic feasibility of imposing
such requirements.
27-1.3 Definitions
As used in this section:
Addition shall mean adding gross square feet to an existing non-residential development
project subject to this Aricle.
Affordable housing shall mean for-sale or rental housing the total cost of monthly payments
for which does not exceed thirty (30%) percent of household income.
City Manager shall mean the City Manager of the City of Alameda or his/her designee.
Development or development project shall mean any project undertaken for the purpose of
development. Development includes a project involving the approval of a tentative map or involving
the issuance of a permit for construction , but not a permit to operate.
Director of Development Services shall mean the. Director of Development Services for the
City of Alameda or that individual in the future which has the responsibility for administering the
City s affordable housing development programs or hislher designee.
Gross square feet shall. mean the area included within the surrounding walls of a non-
residential development as determined by the Director of Development Services. This are does not
include inclosed parking for vehicles.
In-lieu fee shall mean a monetary exaction which is allowed by the City in place of the
constrction or provision of affordable housing units.
Interior remodel shall mean all tenant or owner improvements to non-residential space which
results in a change in the type of use of the development.
Low- and moderate-income shall mean a household with total annual income at or below
eighty percent (80%) of the median income , adjusted for family size , and in accordance with the
Section 8 Income Limits as published annually. by the Department of Housing and Urban
Development for the SF -Oakland MSA.
27-1.4 Affordable Housing Requirements.
a. Unit Requirement. An affordable Housing Unit requirement is hereby established for new
changed or remodeled and expanded non-residential development in the City of Alameda. The City
Council shall , by resolution , based upon the Nexus Study prepared for the City by Economic and
Planing Systems Inc., in November of 1989 , set forth the formula for determining the number of
units to be provided, the beneficiaries thereof, the relationship between this requirement and the
various types of new and expanded developments , and time. forthe provision of the units. The
requirements of this chapter .shall be met by each developer prior to the issuance of the Building
Permit or, where a Building Permit is not required, the Use Permit for the new , expanded, or changed
use.
b. Payment of In-Lieu Fees. Developers of non-residential projects may pay an Affordable
Housing Fee in lieu of providing units as described in paragraph a. above. The funds shall be used
to pay for programs and activities to expand affordable housing opportnities for low- and moderate-
income persons. The City Council shall , in a Council resolution, set forth the specific amount of the
fee , list the types of programs and activities to be financed, describe the beneficiaries of these
programs and activities , describe the reasonable relationship between this fee and the various types
of new , changed and expanded developments , and the time for payment. The requirements of this
chapter shall be met by each developer prior to the issuance of the Building Permit or, where a
Building Permit is not required , the Use Permit for the new , expanded , or changed use.
c. Annual Review. On an annual basis , the City Council shall review the unit/fee
requirements to determine whether they are reasonably related to the impacts of development and
whether the described affordable housing units , programs and activities are still needed.
27-1.5 Application.
a. General Application. The requirements of this Aricle apply to new construction
construction of additional square footage to existing buildings , interior remodels , and changes in use
that do not require interior remodels but that increase the employee density of the non-residential
development project as determined by the Director of Development Services.
b. Determination of land uses. For the purposes of the application of this Aricle , non-
residential land uses shall be dived into five classifications: Retail . Offce , Warehouse
Manufacturing, and Hotel/Motel. The Director of Development Services shall determine the land
use classification that best describes the non-residential development for the purposes of assigning
the fee to be charged. The Director of Development Services shall use the applicable table set forth
in the City Council resolution establishing the specific affordable unit or in lieu fee requirements
to detem1ine the appropriate classification.
c. Fee Offets for Existing Uses. the extentofthe Affordable Housing requirement or in
lieu fee shall be offset or. adjusted .to account for any previously existing unabandoned non-
residential use. For the purpose of this section a use shall be deemed unabandonedifit existed at
any time within the two year period prior to the application for the building permit or use permit
which trggers the application ofthis Aricle. The offset for existing use shall not exceed the amount
of the fee or requirement computed for the proposed use.
d. Application to Lease Renewals at Former Naval Air Station at Alameda Point. It is the
intent of this Aricle 27-, that the Alameda Reuse and Redevelopment Authority shall pay an
amount which would be equivalent to the Affordable Housing In Lieu Fee which would otherwise
be applicable to new or renewed leases at the former Alameda Naval Air Station if such new leases
or lease renewals would have trggered the application ofthe Affordable Housing In Lieu Fee , even
though these new leases or lease renewals may require neither abuilding permit or a Use Permitat
the time the lease agreements are entered into. The terms of such payment shall be established by
mutual agreement between the Alameda Reuse and Redevelopment Authority and the City.
27-1.6 Procedures.
a. Procedures for Non-residential Development. Upon adoption of the unit/fee resolution
all applicants for new , expanded , or changed non-residential developments , except those subject to
a separate and binding development or owner paricipation agreement with contrary provisions , shall
be required to fulfill their obligations under the Affordable Housing Unit/Fee as described herein and
by resolution adopted by the City Council pursuant to the terms of this chapter prior to the issuance
of the Building Permit. No Building Permit will be issued until the Development Services Director
certifies that the developer has complied with the requirements of this chapter.
27-1.7 Unit/Fee Adjustments.
a. Fee Adjustment. A developer of any project subject to the Affordable Housing Unit/Fee
may apply to the Director of Development Services for a reduction or adjustment to the fee , or a
waiver of the fee
, .
based upon the absence of any reasonable relationship or nexus between the
impacts of that development and the amount of unit/fee charged. The application shall be made in
writing and fied with the Director of Development Services no later than the time of the issuance
of a Building Permit authorizing construction of the project that is subject to the fee or, where a
Building Permit is not required , a Use Permit. The application shall state completely and in detail
both the applicant's factual basis and legal theoryfor adjustrent or waiver and compare its proposal
with the analysis set forth in the Nexus Study. The Director of Development Services shall consider
the application and render a decision in writing within 30 days. The. decision of the Director of
Development Servicesis appealable pursuant to section 27-1.7(b).
b. Appeal Procedure. A decision of the Director of Development Services on an application
for a fee waiver pursuant to section 27-1.7(a) shall be appealable in accordance with this section.
A person seeking judicial review ofa decision shall first complete an appeal under this section. Any
person wishing to appeal a decision of the Director of Development Services shall file an appeal to
the City Council in wrting with the City Clerk not later than (a) ten days from the date of the written
decision ofthe Director of Development Services. The wrtten appeal shall state completely and in
detail the factual and legal grounds for the appeal. The City Council shall consider the appealiat a
public hearng within sixty days after the filing of the fee adjustment application. The decision
the City Council is final.
c. Fee for adjustment request or appeal. The cost of the request for fee adjustment and
appeal shall be borne by the applicant in an amount set forth in the MasterFee Resolution of the City
Council.
d. Refund of Fee. Ifthe Affordable Housing Unit/ee is paid and the Building Permit is later
canceled or voided, or if aU se .Pern1it which triggers the application of the. Fee fails to vest within
the terms ofthe Use Permit , the Director of Development Services may, upon written request of the
developer, order retur ofthe fee and interest eared on it less administrative costs if (a) the fees paid
have not been committed, and (b) workon the private development project has not progressed to a
point that would permit commencement of a new, changed, .or expanded use for which a fee would
be payable. If the findings required by Governent Code section 66001(d) are not made , a refund
to the then owner of the property for which the fee was paid shall be made pursuant to Governent
Code section 66001.
27-1.8 Limited Use of Fees.
a. Use and Disbursement of Monies in the Fund: Monies in the Affordable Housing
Unit/Fee Fund shall be used in accordance with and in support of activities to implement the City
adopted Housing Element , Housing Assistance Plan and Statement of Community Development
Objectives. Activities shall be limited to direct expenditure for capital projects or incidental non-
capital expenditures related to capital. projects , including but not limited to land acquisition
construction, rehabilitation, subsidization , counseling or assistance to other govemmentalentities
private organizations or individuals to expand affordable housing opportunities to low- and
moderate-income households. Monies in the Affordable Housing UnitleeFund maybe disbursed
hypothecated, collateralized , or otherwise employed for these purposes from time to time as the
Director of Development Services so determines is appropriate to accomplish the purposes of the
Affordable Housing Fund. These uses include , but are not limited to , assistance to housing
development corporations , equity. participation loans , grants , pre-development loan funds
participation leases , loans to develop affordable housing or other public/private partnership
arrangements. The Affordable Housing Funds may be expended for the benefit of both rental or
owner occupied housing. Affordable Housing In Lieu Fees may not be used to support operations
or on-going housing services not directly related to the construction , acquisition , rehabilitation or
preservation of affordable housing units.
b. Accounting of Fees. All Affordable Housing Unit In Lieu Fees shall be deposited into
a segregated account and all expenditures of funds from the shall be documented and included
an annual report which shall be available for public inspection.
27-1.9 Exemption.
Any publicly owned development that is used for a public purpose is exempt from the
provisions ofthis chapter.
27-1.10.Fee Escalators.
a. The Affordable Housing Unit/Fee resolution may provide for an annual increase in
the amount of the fee to reflect the percentage increase in the cost of construction or public
improvements as reported in the Engineering News Record-Construction Price Index for the San
Francisco Bay Area.
b. The Affordable Housing Unitlee may be adjusted from time to time , based upon
amendments or updates to the Nexus Study.
Section 2. Effective Date.
This Ordinance shall be in full force and effect from and after the expiration of thirty
(30) days from the date of its final passage.
Attest:
******
, the undersigned , hereby certify that the foregoing Ordinance was duly and regularly
adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the
5th day of June , 2001 by the following vote to wit:
AYES:Councilmembers Daysog, DeWitt , Johnson , Kerr and
Mayor Appezzato - 5.
NOES:None.
ABSENT:None.
ABSTENTIONS:None.
IN W1TNESS , WHEREOF , I have hereunto set my hand and affxed the offcial seal of said City this
6th day ofIune , 2001.
DI
City of Alameda