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Ordinance 2926 and backupCity of Alameda Memorandum Date:May 19,2004 To:Honorable Mayor . and Councilmembers From:James M. Flint City Manager Re:Public hearng to consider introduction of an Ordinance amending the Alameda Municipal Code by adding Section 30-, Inclusionar Housing Requirement for Residential Projects, to the Alameda Municipal Code. BACKGROUN In May 2003, the City Council adopted a new Housing Element , a mandatory element of the City General Plan. The Housing Element contains the City s housing policies and includes a number of implementation measures. These implementation measures range from development of assistance programs to changes to zoning designations and regulations. In August 2003 , the City received conditional certification of the Housing Element by the State Deparment of Housing and Community Development. The certfication was predicated upon the City perfonnng certain actions. In accordance with the Housing Element and State certfication letter , the City has begun to implement the Element. The Planning Board initiated a new ordinance for inc1usionar housing requirements on July 8 , 2003. On November 10, the Planning Board held a public workshop to receive input on the new ordinance for inc1usionar housing requiements and on December 8 , 2003, the Planning Board held a public hearng on the inc1usionar housing ordinance. The final draft ordinance incorporating Planning Board diection was recommended for City Council approval at their Januar 26, 2004 meeting. Subsequent to this action by the Planning Board minor technical changes have been made to the draft ordinance to conform to the CIC inc1usionar housing resolution and to areas outside of the redevelopment areas; these minor changes are shown in underline/strkeout in the attached exhibit. DISCUSSION/ANALYSIS The Planning Board focused on the following issues during their discussion of the inclusionar ordinance: Dedicated to Excellence, Committed to Service Re: Hearing and Intro of Ordinance #5- Honorable Mayor and Council members Page 2 May 19,2004 In Lieu Fee.Both the public and the Planning Board were concerned about the in-lieu fee , how it would be calculated and to what developments it would apply. Both the public and the Planning Board expressed a desire for units to be constructed rather than fees paid. For this reason , the abilty to pay an in-lieu fee is very narowly defined and penntted for up to 9 units; developments of 10 or more units must constrCt the affordable housing unites). Below is a table indicating how much would be collected, based on the size of the development. SlZK':FEEPERuNT AMO"UT to BE PAID 5 uni ts $14 , 735.00 per unit $73,675. 6 units $14 , 735.00 per unit $88,410. 7units $14, 735.00 per unit $103 145. 8 units $14, 735.00 per unit $117,880. 9 units $14 , 735.00 per unit $132 615. Citv Manager Discretion and Review Authority.There was public concern expressed about the discretion of the City Manager to: 1) allow the affordable units to be constrcted off-site, 2) make arangements for alternative performance , 3) assure acceptable documents are recorded, and 4) consider adjustments to the requirements if the applicant believes the requirement to be a takng. The ordinance was modified to clarfy implementation and require the approval of a Affordable Housing Plan. The right of the City Manager to assure that any admnistrative documents are acceptable and appropriate is set forth in Aricle vn of the City Charer. Consistent with the Zoning Ordinance where these proposed regulations wil reside , references to the City Manager have been changed to Planning and Building Director or Planning and Building Deparent (which act as the City Manager ' s designee). Decisions of the Planning and Building Director or the Planning Board can be appealed under this ordinance in the same manner as any other development requirement with the same noticing requirements, fees and time frame. Occupancy Standards.According to the Housing Authority Executive Director, there are occupancy standards for Alameda Housing Authority units, which are reviewed at the time of eligibilty. Staff is recommending that units be distrbuted using a lottery system for larger projects. In order to be considered in the lottery, famlies must qualify in terms of eligibilty, including family size. Improvements to Dwellngs.According to the Housing Authority Executive Director, the covenants and agreements signed between the City and the property owner in projects of the Alameda Housing Authority explain improvements and have provisions for equity sharng in the event of increase in value of the unit. According to Housing Development Manager, the more recent covenants contain a resale formula that allows owners to adjust their cost basis by the value of capital improvements and use that adjusted basis to calculate a maximum resale price. However, homeowners could also face loss if the value exceeds the price range for that level of income. Dedicated to Excellence, Committed to Service Honorable Mayor and Councilmembers Page 3 May 19, 2004 Affordable Housing: Guidelines for Residential Development.Draft Affordable Housing Guidelines reviewed and recommended for approval by the Planning Board are included under a separate item for City Council adoption at the June 01 2004 meeting. BUDGET CONSIDERA TION/FANCIA IMACT None. RECOlVNDATION The City Manager recommends the City Council adopt the Ordinance adding Section 30-16, Inclusionary Housing Requirement for Residential Projects, to the City of Alameda Municipal Code. Respectfully submitted Gregory Fuz Planning and Building Director By: t a Eliason .' Planning Manager Attachments: 1. Revised PB Resolution No. PB-04- 2. Januar 26 , 2004 Planning Board Staff Report 3. Januar 26 , 2004 Planning Board Minutes 4. December 8, 2003 Planning Board Staff Report 5. December 8 , 2003 Planning Board Minutes Tom Matthews , Renewed Hope Eve Bach , ARC Ecology G:\PLANNING\CC\BPORTS\2004\k-June 01 \inc1usionarhousingord.doc Dedicated to Excellence, Committed to Service CITY OF ALAMEDA PLANNING BOARD RESOLUTION NO. PB-04- RECOMMENDING THE CITY COUNCIL OF THE CITY OF ALAMEDA ADOPT AN ORDINANCE ADDING SECTION 30-16, INCLUSIONARY HOUSING REQUIREMENT FOR RESIDENTIAL PROJECTS, TO THE CITY OF ALAMEDA MUNICIPAL CODE WHEREAS, the Planing Board initiated ths amendment to the Zoning Ordinance on July 14 2003; and WHEREAS , the Planng Board held a public workshop on November 10 2003 to consider the amendment to the Zoning Ordinance; and WHREAS , the Plang Board held a du1y noticed public hearing on December 8 , 2003 to consider the amendment to the Zoning Ordinance and testimony from all interested paries; and WHEREAS , the Planng Board continued the public hearing to Januar 26 2004; and WHEREAS , the Plang Board held a public hearing on Januar 26 , 2004 to consider the amendment to the Zoning Ordinance and testimony from all interested paries; and WHREAS , pursuant to the provisions of the California Environmental Quality Act (Public Resources Code section 21000 et seq.CEQA") and the State CEQA Guidelines (Californa Code of Reguations , Title 14, section 15000 et seq. ), the amendment to the Alameda Municipal Code is exempt per State CEQA Guidelies Section 15305 , Minor Alterations in Land Use Limitations; WHEREAS , the Planng Board makes the following findings: The proposed amendment will not effect consistency of the Zonig Ordinance with the General Plan , as the amendment is consistent with and fuers the Housing Element, which in tu , reflects the land use policies and other requirements of the balance of the General Plan. The proposed amendment will have a beneficial effect on the welfare of the communty because it wil provide additional housing opportunties for very low-, low- and moderate- income households. The proposal is equitable because it wil apply to all properties outside of the redevelopment districts; properties within redevelopment project districts areas bear comparable affordable housing requirements under Communty Redevelopment Law. Attachment #1 THEREFORE BE IT RESOLVED that the Planng Board of the City of Alameda hereby resolves that the amendments to the Alameda Municipal Code are exempt from the provisions of the California Environmental Quality Act (Public Resources Code section 21000 seq.CEQA") and the State CEQA Guidelines (California Code of Regulations , Title 14 , section15000 et seq. ), per State CEQA Guidelines Section 15305 , Minor Alterations in Land Use Limitations. THEREFORE BE IT FURTHER RESOLVED that the Planing Board of the City of Alameda hereby recommends to the City Council that it adopt the amendments to the Alameda Municipal Code as follows: Section 1 Section 30-16, "Inclusionary Housing Requirement for Residential Projects," is hereby added to Chapter 30, Development Regulations, of the City of Alameda Municipal Code as follows: Section 30-Inclusionary Housing Requirement For Residential Projects Subsection 30-16-Purpose. Subsection 30-16-Findings. Subsection 30-16-Definitions. Subsection 30-16-4 Inclusionary Unit Requirements. Subsection 30-16-Exemptions. Subsection 30-16-Alternatives. Subsection 30-16-Incentive. Subsection 30-16-Compliance Procedures. Subsection 30-16-Requirements for Inclusionary Units. Subsection 30-16-10 Continued Affordabilty. Subsection 30-16-11 Limted Use of Fees. Subsection 30-16-12 Adjustments, Waivers. Subsection 30-16-13 Community Improvement Project Areas. Subsection 30-16-14 Enforcement. Subsection 30-16-Purpose. The purpose of this section is to (a) implement the goals and objectives of the Housing Element of the City of Alameda General Plan, (b) mitigate the impacts on housing affordabilty caused by new residential development, and (c) meet the need for housing affordable to persons of very low-, low- and moderate-income. Subsection 30-16-Findings. a. California and the City of Alameda face a serious housing problem that threatens their economic security. Persons of very low-, low- and moderate-income are experiencing increasing difficulty in locating and maintaining adequate, safe and sanitary affordable housing. Lack of access to affordable housing has a direct impact upon the health, safety and welfare of the residents of Alameda. Alameda wil not be able to contribute to the attainment of State housing goals or to retain a healthy environment without additional affordable housing. As noted in the City's Housing Element, a regional shortage of affordable housing is contributing to overpayment for housing accommodations, sometimes leading to temporary or permanent homelessness. b. A lack of new Inclusionary Units wil have a substantial negative impact on the environment and economic climate because (i) housing wil have to be built elsewhere, far from employment centers and therefore, commutes wil increase, causing increased traffic and transit demand and consequent noise and air pollution, and (ii) City businesses wil find it more difficult to attact and retain the workers they need. Inclusionary housing policies contribute to a healthy job and housing balance by providing more affordable housing close to employment centers. c. Development of new market-rate housing encourages new residents to move to the City. These new residents wil place demands on services provided by both public and private sectors. Some of the public and private sector employees needed to meet the needs of the new residents earn incomes only adequate to pay for affordable housing. Employees who are unable to find affordable housing in the City wil be forced to commute long distances. This situation adversely impacts on their quality of life, consumes limited energy resources, increases traffic congestion and has a negative impact on air quality. d. Increasing the production and availabilty of affordable housing is problematic. Prices and rents for affordable housing remain below the level needed to attact new conStruction. At the same time, escalating land costs and rapidly diminishig amounts of land available for development hinder the provision of affordable housing units solely though private action. Federal and state funds for the construction of new affordable housing are insufficient to fully address the problem of affordable housing within the City. e. The City wishes to retain an economically balanced community, with housing available to very low-, low- and moderate-income households. The City' General Plan implements the established policy of the State of California that each community should foster an adequate supply of housing for persons at all economic levels. f. It is appropriate to impose some of the cost of the increased burden of providing housing for very low-, low- and moderate-income persons directly on the developers, and indirectly upon the occupiers, whose developments necessitate the need for such housing. In addition to the demands on services from such developm nts, new development without affordable units contributes to the shortage of affordable housing. Zoning and other ordinances concerning new housing in the City should be consistent with the community s goal to foster an adequate supply of housing for persons at all economic levels. Subsection 30-16-Definitions. As used in this section: Affordable Rent shall mean monthly rent (including utilty allowance) that does not exceed one-twelfth of 30 percent of the maximum anual income for a Household of the applicable income level (Very Low-, Low- or Moderate-Income). Affordable Housing Guidelines shall mean guidelines adopted by the City Council to specify location and design standards for Inclusionary Units. Affordable Housing Plan shall mean a legally binding agreement between a Developer and the City to ensure that the requirements of this Chapter are satisfied. The Affordable Housing Plan establishes the number and location of Affordable Units, production schedule and other standards. Affordable Ownership Cost shall mean a sales price that results in a monthy housing cost (including mortgage, insurance, utilties, taxes, assessments and home owner association costs, if any) that does not exceed one-twelfth of 30 percent of the maimum annual income for a Household of the applicable income (Very Low-, Low- or Moderate-Income). Household shall mean one person living alone or two or more persons sharing residency whose income is considered for housing payments. Inclusionary Unit shall mean a dwelling unit that must be offered at Affordable Rent or available at Affordable Housing Cost to Very Low-, Low-or Moderate-Income Households. In-Lieu Fee shal mean the fee described in Subsection 30-16-6(a) that is paid to the City as an alternative to the production of inclusionary housing, which fee shall be used in accordance with Subsection 30-16-11. Low-Income Household shall mean a Household whose anual income does not exceed the qualifying limits set for "lower income households " in Section 50079.5 of the California Health & Safety Code. Market-Rate Unit shall mean a dwellng unit in a Residential Development that is not an Inclusionary Unit. Moderate-Income Household shall mean a Household whose annual income does not exceed the qualifying limits set for "persons and familes of low or moderate income " in Section 50093 of the California Health & Safety Code. Residential Development shall mean any planned development district subdivision map, conditional use permit or other discretionary land use approval that authorizes the construction of residential dwellng units. Very Low-Income Household shall mean a Household whose annual income does not exceed the qualifying limits set for "very low income households " in Section 50105 of the California Health & Safety Code. Subsection 30-16-Inclusionary Unit Requirements. a. Unit Requirement. For all Residential Developments of five (5) or more units, at least fifteen percent (15%) of the total units must be Inclusionary Units restricted for occupancy by Very Low-, Low- or Moderate-Income Households. The number of Inclusionary Units required for a particular project wil be determined only once, at the time of project approval. If a chage in the Residential Development design results in a change in the total number of units, the number of Inclusionary Units required wil be recalculated to coincide with the final approved project. b. Calculation. For purposes of calculating the number of affordable units required by this subsection, any additional units authorized as a density bonus under California Government Code Section 65915(b)(1) or (b)(2) wil not be counted in determining the required number of Inclusionary Units. In determiing the number of whole Inclusionary Units required, any decimal fraction less than 0.5 shall be rounded down to the nearest whole number, and any decimal fraction of 0.5 or more shall be rounded up on the nearest whole number. c. Types ofInclusionary Units: Four percent (4%) of the total units must be restricted to occupancy by Low-Income Households; four percent (4%) of the total units must be restricted to occupancy by Very Low-Income Households; and seven percent (7%) must be restricted to occupancy by Moderate-Income Households. For Residential Developments with sixty-nine (69) or fewer total units, Inclusionary Units shall be restricted for occupancy by very low-, low- or moderate-income households in the following proportions, which are based upon the above calculations: Total Units Inclusionary Units Income Levels 5 to 9 1 moderate 10 to 16 17 to 23 24 to 29 30 to 36 37 to 43 44 to 49 50 to 56 57 to 63 64 to 69 1 moderate, 1 low 1 moderate, 1 low, 1 very low 2 moderate, 1 low, 1 very low 3 moderate, 1 low, 1 very low 3 moderate, 2 low, 1 very low 3 moderate, 2 low, 2 very low 4 moderate, 2 low, 2 very low 4 moderate, 3 low, 2 very low 5 moderate, 3 low, 2 very low d. Affordable Housing Guidelines. Inclusionary Units built under this section must conform to the Affordable Housing Guidelines adopted by the City Council. Subsection 30-16-Exemptions. The requirements of this section do not apply to: a. Reconstrction. The reconstruction of any structures that have been destroyed by fire, flood, earthquake or other act of nature provided that the reconstruction takes place within three (3) years of the date the structures weredestroyed. Residential Developments of four (4) units or less. c. Residential building additions, repairs or remodels. Residential building additions, repairs or remodels; provided, that such work does not increase the number of existing dwellng units beyond four (4) units. d. Affordable housing projects. Residential Developments that already have more dwelling units that qualify as affordable to Very Low-, Low- and Moderate- Income Households than ths Section requires. e. Residential Developments with approved maps. Residential Developments for which a tentative map or vesting tentative map was approved, or for which a building permit was issued, prior to the effective date of the ordinance codified in this Section and which continue to have unexpired permits. Subsection 30-16-Alternatives. a. In-Lieu Fees. For Residential Developments of nine (9) or fewer units, including Inclusionary Units, the requirements of this section may be satisfied by paying an In-Lieu Fee. The fee wil be set by the City Council by resolution and shall be sufficient to make up the gap between (i) the amount of development capital typically expected to be available based on the amount to be received by a developer or owner from Affordable Housing Cost or Affordable Rent, and (ii) the anticipated cost of constructing the Inclusionary Units. Fees shall be paid upon issuance of building permits for Market-Rate Units in a Residential Development. If building permits are issued for only part of a Residential Development, the fee amount shall be based only on the number of units then permitted. b. Off-site construction. Inclusionary Units may be constructed off-site if the Planning Board can make a finding that the purposes of this section would be better served by the construction of off-site units. In determining whether the purposes of ths section would be better served by this alternative, consideration should be given as to whether the off-site units would be located in an area where, based on availabilty of affordable housing, the need for such units is greater than the need in the area of the proposed development. Subsection 30-16-Incentive. The City may provide the following incentive to a developer who elects to satisfy the inc1usionary housing requirements of this section by producing Inclusionary Units on the site of the Residential Development. a. Expedited Processing. Eligibility for expedited processing of development and permit applications for the Residential Development. Subsection 30-16-Compliance Procedures. a. Conditions to carry out the purposes of ths section shall be imposed on the approval of any Residential Development to which this section pertains. b. As part of the application for a Residential Development, the applicant shall submit an Affordable Housing Plan demonstrating compliance with this section. The Affordable Housing Plan must include: (i) a description of the number and size of each Market-Rate Unit and each Inclusionary Unit, including the income levels to which each Inclusionary Unit wil be made affordable, (ii) a narrative describing how the plan adheres to the Affordable Housing Guidelines adopted by the City Council, and (ii) a site map, with the location of the Inclusionary Units clearly marked. c. The Affordable Housing Plan shall be reviewed and approved by the decision-making entity concurrently with the Residential Development in accordance with the procedures in the Alameda Municipal Code. The Affordable Housing Plan shall be made a condition of approval of the Residential Development and shall be recorded by the applicant together with any implementing regulatory agreements, resale restrictions, deeds of trust and/ or similar implementing documents as a restriction on the parcel or parcels on which the Affordable Units wil be constructed. d. The Planning Board shall review any applications requesting off-site construction within their Affordable Housing Plan. The Affordable Housing Plan shall include a site map of the off-site location, a description of the arrangements made for construction at that site and demonstration that the proposed off-site construction complies with Section 30-16-6(b). Off-site construction may only be approved in accordance with Subsection 30-16-6(b). e. No building permit shall be issued for any l\farket Rate Unit until the applicant has obtain.ed permits for the Inclusionary Units sufficient to meet the requirements of subsection 30 16 1., All Inclusionary Units shall be constructed and occupied as specified in the approved Afordable Housing Plan concurrently with or prior to the construction and occupancy of Market Rate Units unlessor received certification is obtained from the Planning and Building Director that the applicant has met, or made arangements satisfactory to the City to meet, an alternative procedure set forth in subsection 30-16-6. In phased Residential Developments, Inclusionar Units shall be constructed and occupied in proportion to the number of units in each phase of the Residential Development.No final inspection for occupancy for any Market-Rate Unit shall be completed for the Residential Development or for any phase of the Residential Development until the applicant has constructed the Inclusionar Units required in the approved Mfordable Housing Plan for the Residential Development or for any phase of the Residential Development by subsection 30-16-4 or completed corresponding alternative performance under subsection 30-16- Subsection 30-16-Requirements for Inclusionary Units. a. Eligibility Requirements. No Household may occupy an Inclusionary Unit unless the City or its designee has approved the Household's eligibilty in accordance with City-approved policies. Each Household that occupies a rental Inclusionary Unit or purchases an owner-occupied Inclusionary Unit must occupy that unit as that Household's principal residence. b. Initial Sales Price of Owner-Occupied Units. The initial sales price of an owner-occupied Inclusionary Unit shall be set so that the eligible Household wil pay an Affordable Owership Cost. Resale and other restrictions on the Inclusionary Unit wil be governed by the regulatory agreements, resale restrictions, deeds of trust or other recorded agreements recorded against the Inclusionary Unit as approved in the Affordable Housing Plan per Section 30-16- c. Rent of Rental Units. Rental Inclusionary Units shall be offered to eligible Households at an Affordable Rent. Subsection 30-16-10 Continued Affordabilty. a. Regulatory agreements, resale restrictions, deeds of trust and/ or other documents acceptable to the City Manager, all consistent with the requirements of this section, shall be recorded against Inclusionary Units and Residential Developments containing Inclusionary Units. These documents shall legally restrict occupancy of Inclusionary Units to Households of the income levels for which the units were designed for a minimum of fifty-nine (59) years. The forms of regulatory agreements resale restrictions, deeds of trust and other documents authorized by this subsection, and any change in the form of any such document which materially alters any policy in the document, shall be approved by the City Manager. b. The resale restrictions required by subsection 30-16-10(a) shall allow the City a right of first refusal to purchase any owner-occupied Inclusionary Unit at the maximum price which could be charged to a qualified purchaser Household, at the time the owner proposes a sale. Subsection 30-16-11 Limited Uses of Fees. a. Use and Disbursement of Fees. In-Lieu Fees collected under this section shall be used in accordance with and in support of affordable housing as determied by the City Manager. Expenditures of In-Lieu Fees shall be limited to direct expenditures for capital projects or incidental non-capital expenditures related to capital projects, including but not limited to pre-development expenses,land acquisition, construction, rehabiltatioIl, subsidization, counseling or assistance to other governental entities, private organizations or individuals to expand affordable housing opportunities to very low-, low- and moderate-income households. Authorized expenditures also include, but are not limited to, assistance to housing development corporations, equity participation loans, grants, predevelopment loan funds, participation leases, loan or other publici private partnership arrangements to develop affordable housing or other public/private partnership arrangements. The In-Lieu Fees may be expended for the benefit of either rental or owner-occupied housing. The In-Lieu Fees may not be used to support operations, or on-going housing services not directly related to the construction, acquisition, rehabiltation or preservation of affordable housing units. b. Accounting of Fees. All In-Lieu Fees shall be deposited into a segregated account and all expenditures of funds from the same shall be documented and included in an annual report that shall be made available for public inspection. Subsection 30-16-12 Adjustments, Waivers. a. Adjustment. The requirements of this section may be waived, adjusted or reduced if an applicant shows that there is not a reasonable relationship between the impact of a proposed Residential Development on the demand for affordable housing in the City and the requirements of this section or that applying the requirements of this section without the requested waiver, adjustment or reduction would constitute a taking in violation of the United States or California Constitutions or be otherwise ilegal. Under current law, mere economic hardship or dimiution in value does not constitute an unlawful taking of property. Such a request shall be made in writing and fied with the Planng and Building Department at the time of initial submittal an application for approval of a Residential Development and/ or as part of any appeal from a decision regarding such an application. The request shall state completely and in detail: (i) the requested waiver, adjustment or reduction of the requirements, (ii) the factual basis for the request, and (Hi) the legal basis of this request. If the Plannng Board determies that the requirements of ths section lack a reasonable relationship to the impact of a proposed Residential Development on demand for affordable housing in the City or that those requirements constitute a taking in violation of the United States or California Constitutions, the requirements of this section shall be modified, adjusted or waived to the extent necessary to avoid an unconstitutional result or ilegal outcome. b. Appeal Procedure. The applicant, a member of the public or a member of the City Councilor Planng Board may appeal a determiation under this ordinance with ten (10) days after the decision under subsection 30-21.11. Appeals shall be heard pursuant to Section 30-25. c. Fee for Adjustment Request or Appeal. The cost of the consideration of a request for adjustment or waiver of the requirements of ths section and appeal shall be borne by the applicant in an amount set forth in the Master Fee Resolution of the City Council. Subsection 30-16-13 Community Improvement Project Areas. This section shall not apply to Residential Developments in the City' Community Improvement Project Areas as long as the Community Improvement Commssion adopts separate resolutions or policies pertaining to inclusionary housing requirements in such areas. Subsection 30-16-14 Enforcement. a. Misdemeanor Violation. It shall be a misdemeanor to violate any provi ion of this Section. Without limiting the generality of the foregoing, it shall be a misdemeanor for any person to sell or rent to another person an Inclusionary Unit under this Section at a price or rent exceeding the maximum allowed under this Section or to sell or rent an Inclusionary Unit to a Household not qualified under this Section. It shall further be a misdemeanor for any person to provide false or materially incomplete information to the City or to a seller or lessor of an Inclusionary Unit to obtain occupancy of housing for which he or she is not eligible. b. Additional Enforcement Mechanisms. In addition to the penalties provided in this Subsection, any violation of this Section may be redressed by any enforcement mechanism, including but not limited to a civil action, described in Section 1-5, Penalty Provisions; Enforcement, of this Code. Section 2 Severabilty. If any section, paragraph, sentence, clause, or phrase of the Ordinance or any part thereof, is for any reason held unconstitutional, invalid, or ineffective by any court of competent jurisdiction, said decision shall not affect the validity or effectiveness of the remainig portions of this Ordinance, or any part thereof. The City of Alameda City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase herein, irrespective or the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. Section 3 Publication. The City Clerk shall either (a) have this Ordinance published once within 15 days after adoption in a newspaper of general circulation in accordance with Section 36933(a) of the California Government Code, or (b) have a sumary of this ordinance published twice in a newspaper of general circulation, once five days before its adoption, and again within 15 days after adoption in accordance with Section 36933(c) of the California Government Code. Section 4 Effective Date. This Ordinance becomes effective thrty (30) days after its final passage and adoption. NOTICE. No judicial proceedings subject to review pursuant to Californa Code of Civil Procedure Section 1094.5 may be prosecuted more than ninety (90) days following the date of this decision or final action on any appeals plus extensions authorized by California Code of Civil Procedure Section 1094. PASSED AND ADOPTED this 26th day of January, 2004 by the Planing Board of the City of Alameda by the following vote: AYES:(5) (0) Bard, Cook, Lynch, Mariani , Piziali NOES: ABSENT:(1)Cunningham ATTEST: Gregory Fuz, Secretary City Planing Board City of Alameda Inter-department Memorandum J anuaI"y 22 , 2004 To:Members of the Planning Board From:Cynthia Eliason Ct:.Planning Manager Re:ZT A-03-0006 - City of Alameda - Ordinance to add inclusionary housing requirement forresidential projects (Citywide) and continuation ofZTA-03- 0005 (Second Units) and ZT A-03-0007 (Density Bonus Ordinance) BACKGROUN In May 2003 , the City Council adopted a new Housing Element , a mandatory element of the City s General Plan. The Housing Element contains the City s housing policies and includes a number of implementation measures. These implementation measures range from development of assistance programs to changes to zoning designations and regulations. In August 2003 , the City received conditional certification of the Housing Element by the . State Department of Housing and Community Development. The certification was predicated upon the City performing certain actions. In accordance with the Housing Element and State certfication letter, the City has begun to implement the Element. The Planning Board initiated three zoning ordinance amendments on July 8 , 2003. On November 10, the Planning Board held a public workshop to receive input on the proposed amendments to the second unit regulations, a new ordinance for inclusionary housing requirements and a density bonus ordinance. On December 8 2003 , the PlanningBoard held a public hearng on the second unit ordinance and inclusionary housing ordinance (See Attachment 2). The Planning Board raised several questions about the ordinances and directed staff to make certain changes to the second unit ordinance in paricular to address public concerns. In order to provide more attention to each individual ordinance , staff is separating the ordinances for Planning Board consideration. The focus for this evening s hearng is the inclusionary housing ordinance. Planning Board Staff Report Meeting of January 26 , 2004 Page 1 Attachment #2 ANAL YSIS The Planning Board and public expressed the following concerns at the December 8 2003 meeting regarding the Inclusionary Housing Ordinance (See Attachment 3): In Lieu Fee.Both the public and the Planning Board were concerned about the in-lieufee, how it would be calculated and to what developments it would apply. Both the public and the Planning Board expressed a desire for units to be constrcted rather than fees paid. For this reason , the abilty to pay an tn-lieu fee is very narowly defined and permitted. The inclusionar housing ordinance applies to residential developments of five or more units. Only developments between 5 - 9 residential units may pay an in-lieu fee. Developments of 10 or more units must construct the affordable housing unites). As the December 8 , 2003 Planning Board staff report indicates, the fee is estimated at this time to be $14 , 735.00 per project dwellng unit. Below is a table indicating how muchwould be collected , based on the size of the development. SIZ FEE PER AMOUNT TO BE PAID 5 uni ts $14 , 735.00 per unit $73 675. 6 units $14 , 735.00 per unit $88 410. 7units $14 , 735.00 per unit $103 145. 8 units $14 , 735.00 per unit $117 880. 9 units $14 , 735.00 per unit $132 615. Development cost of a new market rate dwellng unit is $271 000.00 per unit according to the Keyser-Marston study (March 2002). The Keyser-Marston study is the most recent study the City has regarding residential development costs and therefore, represents the best available data for setting the in-lieu fee. The estimated required assistance , per unitdepends upon whether or not the unit is rental or ownership and what income level of support is required. Very low-income ownership units require the maximum subsidy of $183,000.00 while moderate-income ownership units require less. The fee was calculated based on an average of the subsidies. For example, the proposed in-lieu fee for a 9-unit development would generate sufficient funds for development of a moderate-income unit and would almost generate sufficient funds for subsidy of a lower income unit ($133 800.00/unit). Planning Board Staff Report Meeting of January 26 2004 Page 2 City Manager Discretion and Review Authority.There was public concern expressed about the discretion of the City Manager to: 1) allow the affordable units to be constructed off-site, 2) make aIangements for alternative performance , 3) assure acceptable documents are recorded , and 4) consider adjustments to the requirements if the applicant believes the requirement to be a taking. The ordinance has been modified to clarify implementation and require the approval of a Affordable Housing Plan. The Affordable Housing Plan is typically presented with the development proposal and is evaluated by staff alongside the development. Since most development projects would require review by the Planning Board and/or City Council, their review and approval is specified. Any use of these alternative provisions would be noted in the staff report to the Planning Board and/or City Council. The Planning Board must approve any off-site construction. The right of the City Manager to assure that any administrative documents are acceptable and appropriate is set forth in Article vn of the City Charer. Consistent with the Zoning Ordinance where these proposed regulations wil reside , references to the City Manager have been changed to Planning and Building Director or Planning and Building Deparment (which act as the City Manager s designee). Decisions of the Planning and Building Director or the Planning Board can be appealed under this ordinance in the same manner as any other development requirement with the same noticing requirements , fees and time frame. The appeals section has been modified to reference the existing appeal provisions in the Zoning Ordinance. Occupancv Standards.Planning Board member Cunningham questioned whether there were guidelines for unit occupancy to prevent over-crowding. According to the Housing Authority Executive Director , there are occupancy standards for Alameda Housing Authority units, which are reviewed at the time of eligibilty. Staff is recommending that units be distributed using a lottery system for larger projects. In order to be considered in the lottery, familes must qualify in terms of eligibilty, including famly size. Improvements to Dwellngs.Planning Board member Cunningham had questioned whether or not modifications to the affordable housing units would be permitted. According to the Housing Authority Executive Director , the covenants and agreements signed between the City and the property owner in projects of the Alameda Housing Authority explain improvements and have provisions for equity sharing in the event of increase in value of the unit. According to Housing Development Manager, the more Planning Board Staff Report Meeting of January 26, 2004 Page 3 recent covenants contain a resale fonnula that allows owners to adjust their cost basis by the value of capital improvements, and use that adjusted basis to calculate a maximum resale price. Similar covenants wil be used in implementation of this ordinance. However , homeowners could also face loss if the value exceeds the price range for that level of income. Affordable Housing Guidelines for Residential Development.Staff is continuing to work on the draft Affordable Housing Guidelines referenced in the Ordinance. These guidelines wil serve to provide guidance to developers of inclusionar housing projects both within and outside of redevelopment areas. The guidelines specify location and design standards for affordable units. The guidelines wil address public comments regarding the abilty to cluster or disperse inclusionar units. The guidelines are proposed for adoption Citywide and wil be brought back to the Planning Board for public review prior to adoption at a later date. RECOMMNDA TION Staff recommends the Planning Board hold a public hearng, review pertinent information and documents , then act to: Recommend approval of Zoning Text Amendment , ZT A-03-0006 , based upon the findings contained in the attached Draft Resolution; and Continue ZTA-03-0005 and ZTA-03-0007 until the Planning Board meeting of February 9,2004. Attachments: 1. Draft Resolution - Inclusionar Housing Ordinance 2. Planning Board Staff Report dated December 8, 2003 3. Planning Board Minutes of December 8 2003 G:\PLANNING\PB\REPORTS\2004\Januar 26\incIusionar housing ord.DOC Planning Board Staff Report Meeting of Januar 26 , 2004 Page 4 REGULAR AGENDA ITEMS: ZT A-03-0006 - City of Alameda - (CE) Ordinance to add inclusionary housing requirement for residential projects (Cityde) and consideration of the Draf Affordable Housing Guidelines for Residential Development; and continuation of ZTA-03-0005 (Second Units) and ZTA-03-0007 (Density Bonus Ordinance) (Continued from the Planning Board meeting of December 8, 2003. Planing Manager Cynthia Eliason summarized the staff report, and requested continuation of the Draf Affordable Housing Guidelines for Residential Development and ZT A-03-0005 (Second Units) andZTA-03-0007 (Density Bonus Ordinance). The Second Unit Ordinance would be brought before the Board during the next regularly schedu1ed meeting, and the Density Bonus Ordinance would be heard during the following meeting. The public hearing was opened. Mr. Edward Murhy noted that he had inquired about the agenda for this meeting before Januar 16 , 2004 , and was informed by Mr. Valeska that it wou1d be only the Second Unit Ordinance. He noted that the agenda had all three ordinances on it, and that he had directed all of his attention on the details ofthe Second Unit Ordinance. He did not believe that ths item was properly agendized, and requested that the item be continued. He inquired when the agenda was revised, and did not believe it shou1d be changed at the last minute. He noted that Mr. Valeska was no longer in attendance , and could not provide more information regarding ths issue. In response to an inquiry by President Piziali , Mr. Fuz confirmed that the thee ordinances were on the previous agenda , and were all continued to ths date. Staff focused on one ordinance each night, so that sufficient time may be allocated for the Board's and the public attention. He noted that the agenda had been revised the previous week to make minor corrections , and emphasized that the agenda was not revised the same day as the meeting. Mr. Murphy inquired whether the Second Unit had ever been a single agenda item. Ms. Eliason replied that as Mr. Fuz indicated , all of the items had been continued to this meeting, and staff requested that Board examine only one of them. She advised that at no time was the Second Unit Ordinance the only item on the agenda. The public hearing was closed for Board discussion. Ms. Eliason noted that staff received two pieces of correspondence , one from Mr. Murhy and another letter regarding second units. Staff did not provide those letters this evening because the Second Unit Ordinance was to be continued; they wil be provided to the Board when the Second Unit Ordinance is discussed. Planing Board Minutes Januar 26 , 2004 Attachment #3 In response to an inquiry by Mr. Lynch, Ms. Eliason advised that the Second Unit Ordinance should be heard on Februar 9 , 2004 , and the Density Bonus Ordinance should be heard on Februar 23 2004. The Housing Element was adopted in May 2003 , and these Ordinance should have a 30-day notice for an April or early May City Council meeting. Mr. Fuz advised that staffs recommendation was to continue the other two ordinances to Februar 9, 2004. MIS Bard/Cook and unanmous to adopt Planing Board Resolution No. PB-04-14 to (recommend to City Council) Ordinance to add inclusionar housing requirement for residential projects (Citywide), and to continue of the Draft Affordable Housing Guidelines for Residential Development, andZTA-03-0005 (Second Units) andZTA-03-0007 (Density Bonus Ordinance) to the Planng Board meeting of Februar 9 2004. AYES - 5 (Cunnngham absent); NOES - 0; ABSTAI - 0 Plannng Board Minutes Januar 26 2004 Page 11 Cit of Alanleda Int.er-department Memorandum December 8,2003 To:President Piziali and Members of the Planning Board From:Cynthia Eliason Advanced Planning Manager Margaret Kavanaugh-Lynch Planner il Re:Zoning Ordinance Amendments to: 1) construct second units , 2) administer land use controls to make the construction of affordable housing feasible , and 3) to provide density bonus and other incentives to developers who propose to construct affordable housing. BACKGROUND On November 10 , 2003 , the Planning Board held a study session to consider implementation of ordinances pertaining to second dwelling units , inclusionary housing outside of redevelopment areas and density bonus regulations. Input provided by the public and members of the Board is reflected in this staff report and in the attached draft ordinances. ANALYSIS Second Unit Ordinance. At the work session , the Planning Board provided direction on the size , location , andstandards. The Board cautioned that second units should not have a negative impact on urban design and aesthetic of the R-l zone. Staff has integrated these changes into the attached draft ordinance. Planning Board Staff Report Meeting of December 8 , 2003 Page 1 Attachment #4 Criterion Existing Proposed Mandated by State?Minimum Size .. . May be established 350 sq ft 150 sq. ft.Maximum size through conversion of Lesser of 1.000 sq ft or Not specifiedexisting floor space 25% within the living area of a single family residence or additio n to an existing single family residence not to exceed ten (l 0('*,) percent of the existing living area. A ttached to Main unit Yes Yes YesDetached from Main Yes Yesunit Attached second unit Yes, but unclear about Yes , administrative N/Aconforms setbacks of non-conforming Variance tor residencesmain buildings of residences.with non-conformingdistrictsetbacksDetached second unit N/A Yes N/Aconforms setbacks of main buildings of district Height (attached unit)As specified by the As specified by the N/A district and subject district and subject Design Review Design ReviewHeight (detached unit)N/A One story N/ARental only Yes Yes N/AParkingOne space per bedroom One space per bedroom Max standard: One max 2 spaces -max :2 spaces space per bedroom - max 2 spacesDesign Review Yes Yes N/ARequired This amendment win create a definition for Second Unit which will take the place of Servants Quarters in the Glossary. The outdated definition of Servants Quarters will be removed. Planning Board Staff Report Meeting of December 8 , 2003 Page 2 Second Unit all attached or a derached re.'Iidemial dwelling IInir ll'lzich provides complere independel1 livil/g faciliries for one or 11ort' persons. Ir shall include penncl1ent provisionsfor, cooking and sanitatioll on the saT/e parcel as the prillClY dwelling is situated. The intent is to treat Second Units as a class of dwelling units that will be subservient the pJimary dwelling in size and use. This restriction is consistent with the spirit and intent of Government Code Section 65852.150, which states: The Legislature.fnds and declares that .econd units are a valuable form of housing ill Cal(fornia. Second units provide housing for family members, students , rheelderly, in-home health care providers, the disabled, and others. at below market prices within existing neighborhoods. Homeowners who create second Ifnits benefit .Ii"011 added income , and an increased sense of security. Inclusionarv Ordinance. The Planning Board requested additional information about how other cities have implemented similar ordinances. Attached is a report entitled "Inclusionary Housing in California: A Decade of Progress " prepared by the California Coalition for Rural Housing to provide comparative information. The Planning Board provided specific direction regarding in-lieu fees in teJms of applicability, calculation and unit distJibution. In-Lieu Fee. The in-lieu fee is intended to subsidize the difference between the total development cost of a unit and the average affordable sales price of a unit. For the sake of establishing a baseline , both the sales price and the total development cost per unit are based on the Keyser-Marston Memorandum dated March 29 , 2002 and adjusted for inflation. Legal Counsel has advised staff that an Inclusionary Ordinance is more legally defensible if a viable in-heu option is identified. The Planning Board suggested that only a small window be created for the allowance of an in-lieu fee , consistent with the Housing Element goal of the construction of affordable housing, not the collection of monies , to bea top priority of the City of Alameda. Staff reviewed these different criteria when establishing the new threshold. It was determined that a threshold couJd be set that would only allow for use of the in-lieu fee option for projects that are calculated to require up to one affordable unit. The new standard would be implemented as follows: An appJicantwishing to buiJd five to nine new dwellings would be eligible to pay an in-lieu fee or Planning Board Staff Report Meeting of December 8 2003 Page 3 build one affordabJe unit. However, an applicant wishing to build ten units would lose the choice to pay the in-lieu fee and would be required to build two affordabJe units as a part of the project. The Planning Board raised questions as to the method of caJculation of the affordable units to be provided. The following is a table which iJlustrates the number and distlibution of affordable units , based upon the number to be developed. This table is included in the draft ordinance. Total Units Developed Incl usionary Units Income Levels 5 to 9 10 to 16 17 to 23 24 to 29 30 to 36 37 to 43 44 to 49 50 to 56 57 to 63 64 to 69 1 moderate 1 moderate , 1 low 1 moderate, 1 low, 1 very low 2 moderate , 1 low, 1 very low 3 moderate, 1 low, 1 very low 3 moderate , 2 low, 1 very low 3 moderate , 2 low, 2 very low 4 moderate , 2 low, 2 very low 4 moderate, 3 low , 2 very low 5 moderate , 3 low, 2 very low For projects of more than 69 units , the ordinance provides for a percentage alJocation of affordable units aI10cated for each applicable income category. The Planning Board also expressed concern about how to ensure that the City of Alameda is' utilizing a process for calculating the in-lieu fee that results in an amount that is legally defensible and is reflective the true high cost of constructing the necessary unit. The onlyfiscal analysis that the City of Alameda has on affordable housing construction is the Keyster Marston memorandum, cited in our current Housing Element. Therefore, these numbers , adjusted for inflation , are the best legally defensible source of information for setting the in-lieu fee for the construction of a dwelling. Planning Board Staff Report Meeting of December 8 , 2003 Page 4 As discussed in the report included as Attachment 4 , the amount collected via in-lieu feesdiffer greatly throughout the state. The example given on page 12 compares Patterson ' fee of $7 340 per affordable unit required with Santa Cruz County which charges $272 889 per affordable unit. Within this range , the in-lieu fee of $14 735 per dwelling unir constructed falls between the two extremes. If , for example , the construction of nine nev.o' dwelling units were proposed , this approach would resuh in a total in-lieu fee payment of $132.615.00. In-lieu fees co!1ected in the implementation of this ordinance wiJl be kept in a dedicated account and expended only in the support of affordable housing. Examples appropriate uses of the monies include: direct expenditures 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 govemmental entities , private organizations or individuals to expand affordable housing opportunities to very low-, low- and moderate-income households. Specificlanguage to this effect is included in the draft ordinance. Unit Distribution The Planning Board suggested adding wording that would aHow the clustering of units opposed to the even distribution of inclusionary units , if efficiency is created. This language has been noted and wil be considered in the discussion of the Inclusionary Unit standards cU1Tently being Co-wl;tten by the Planning and Building Department and Development Services staff and will be brought to the Planning Board in the late winter. Density Bonus Ordinance. Staff is continuing to work on refining the State Model Ordinance to reflect Alameda unique requirements. Additionally, staff is reviewing recent Jegislation (Assembly Bill 305) regarding availability of a density bonus for projects with childcare facilities to ensure compliance. This ordinance wil be presented to the Planning Board for consideration at a later date. RECOMMENDA TION Staff recommends the Planning Board hold a public hearing, consider all pertinent infonnation then act to recommend to the City Council to: Planning Board Staff Report Meeting of December 8 , 2003 Page 5 1) Adopt Zoning Text Amendment ZA03-0005, a Zoning Ordinance Amendment to allow the construction of second units: and 2) Adopt Zoning Text Amendment ZA03-0006 , a Zoning Ordinance Amendment to create an Inclusionary Housing Ordinance. Staffs further recommends the Planning Board continue the discussion of the Density Bonus Ordinance to January 26 2004. A TT ACHMENTS 1. Draft Resolution - Second Unit Ordinance 2. Draft Resolution - Inc1usionary Housing Ordinance 3. Planning Board Staff Report Dated November 5, 2003 4. Inclusionary Housing in California: A Decade of Progress (Included for Planning Board and available on file in the Planning and Building DepaJ1ment) G ;\PLAN N ING\SPECPROJ\Murgarel\i ndusionary-ufforduble-2nd\Dccem bel' 8 1'13 .DOC Planning Board Staff Report Meeting of December 8 , 2003 Page 6 ZA03-0005/ZA03-0006/ZA03-0007 - City of Alameda - Citywide (MKL).Consideration of amending the Zoning Ordinance to: 1) construct second units, 2) administer land use controls to make the construction of affordable housing feasible and 3) to provide density bonus and other incentive to developers who propose to construct affordable housing. President Piziali noted that the public hearing would be held at this meeting, and that no Board action would be taken. This item will be continued to the Planning Board meeting of Januar 26 , 2003. Mr. Fuz advised that staff would like the Board to consider all three ordinances as a package;the draft ordinance relating to density bonus was not completed yet. The other twoordinances were available to the Board in ordinance form for the first time. The public hearng would be reopened on January 26, 2004. President Piziali advised that 13 speaker slips had been received. MIS CunninghamIynch and unanimous to reduce the speakers ' time to three minutes. A YES - 6 (Bard absent); NOES - 0; ABSTAIN - 0 The public hearng was opened. Mr. Tom Matthews, Renewed Hope , thanked staff for the forward movement regarding these ordinances, paricular with respect to inclusionary housing. He was pleased they would be presented as a package in January, and added that Renewed Hope would recommend some changes to the ordinance. He noted that regarding the in lieu fee , they did not receiveAttachment 4 which addressed in lieu fees in a variety of cities. Renewed Hope did not understand how the in lieu fee of $14 735 was set. He noted that the Keyster Marston study stated that $47 000 was adequate for a moderate income unit , $147 000 for rental units forvery low income residents , and $73 000-183,000 for a for-sale unit. He did not believe the fee was strong enough to encourage people to construct , as opposed to paying the fee. He noted that the requirements set for different numbers of units at various income levels did notaIlow a developer to build more low and very low income units. Mr. Matthews noted that the ordinance allowed the affordable units to be developed off-site Planning Board Minutes December 8,2003 Page 12 Attachment #5 with the City Manager s authorization. Renewed Hope was concerned about that part of the ordinance , and would Iike to see the affordable housing integrated with the rest of the housing in the community. Ms. Eve Bach , ARC Ecology, concurred with Mr. Matthew s comments. She expressedconcern about the discretion given to the City Manager to either waive or reduce therequirements. ARC Ecology believed that would create constitutional problems for thisordinance. She cited case law for inclusionary ordinances that judges relied on when they found the ordinances not to be a taking, and noted that they must be applied uniformly. The discretion given in Sections 30-16-6(b), 30-16-7(c), 30-16-1O(a), and 30-16-12 would givethe City Manager the discretion to apply this in a way that would subject the ordinance to heightened scrutiny if it were chaIIenged as a taking. She believed that would make the ordinance vulnerable , and suggested .that the City attorneys examine the ordinance very carefuIIy. She added that the Section 30-16-12 also provided for appeal if the managerexercised discretion because someone believed the ordinance was already a taking. She notedthat it was unclear whether anyone would know that the decision had been made , and thatnotification of the City Manager s decision was not required. She noted that it would be difficult to meet the ten day appeal period , and suggested that a section be added to require public notification of such decisions. Mr. Christopher Buckley wished to address the second unit ordinance , and noted that he hadsent a letter to the Board. He noted that under State law , the City was required to aIIowsecond units by right; currently, second units were aIIowed with a Use Permit. He wasconcerned that the ordinance should be written to meet the requirements of State law , whilesti)) preserving the character of Alameda s neighborhoods , paricular the R -1 neighborhoods.He believed the standards set forth in the draft ordinance should be strengthened to help preserve that character. He included several examples of other cities ' ordinances that weresIightly stronger. He noted that with respect to the minimum lot sizes that would include a by-right second unit , Paragraph D of the Zoning regulations set forth various requirements for development in that zone , including minimum height , bulk , space , and lot sizes. Hebelieved those provisions did apply to the second units , and would take precedence over item1 of his letter. Mr. Buckley beIieved that having an owner/occupancy requirement for each unit would be important in order to maintain a high level of proprietorship for the units , and added thatthere was ample precedent for that requirement. He agreed with staff's detel1ination that the City could perfonn discretionary Design Review for second units. However , the State law Planning Board Minutes December 8 2003 Page 13 was drafted somewhat ambiguously. Other cities had made determinations that the Design Review must be ministerial , and determined by standards. He believed that distinction should be clarified with the City Attorney. Mr. Don Patterson agreed with Mr. Buckley s comments, and requested that the size of the units be examined more carefully. He noted that Alameda was the third most dense community in the Bay Area, behind San Francisco and Daly City. He did not believe that a suburb like Orinda would apply to Alameda, and added that their average lot sizes constituted a very large lot in Alameda. He believed that the detached units were very important, and added that design issues , open space , pervious surfaces , parking turnaround and functionality were equally important. He believed that a lot between 6 000-500 square feetwould be required for second units. He requested that the Board address tandem parking. Ms. Jean Sweeney spoke in opposition to this item. She realized that the State requires that the ordinance be enacted , but noted that because Alameda was a charer city, and not a general law city, that the City may not be required to go forward with the ordinance. She believed that single family zoning in town was under attack. She disagreed with the abilty of the City Manager to make decisions about inclusionary housing. She believed the ministerial nature of that action took away the public s right to review , and inquired whether it would affect the homeowners associations. Mr. Ed Murphy noted that the comments of previous speakers highlighted the potential for future litigation , and believed that the Board would face a Solomon-like decision. He was pleased that there would be more time to consider this decision. He noted that he owned R- andR-5 property, which had primarily single famly homes; he inquired whether he would be able to place a second unit on those lots. He was unfamiliar with ministerial land use controls, and inquired how that would be administered; he was concerned that people would not be treated equally under the law. He inquired whether the developers would receive incentives to provide affordable housing irrespective of Article XXVI of the City Charer. He noted that he had opposed Measure A , but never suggested that it should be bypassed. Ms. Pat Baile expressed concern about the possibilty of Measure A being usurped by this ordinance. She noted that there had been movement in the community that Measure A should be either abolished or amended. She strongly opposed the abolition of Measure A. She inquired whether this new rule would apply to homeowners association; if it did not , that would leave Old Alameda to be subject to these rules. The lot size requirements for the second units would apply only to the older homes in town , which would put the older Planning Board Minutes December 8 , 2003 Page 14 structures in jeopardy. She did not wish to see additional square , boxy apartments with no provision for off-street parking in town. She inquired whether the beneficiaries of this ordinance would be CUITent or future residents of Alameda , and noted that this was a quality of life issue. She understood the need for more housing and low cost housing, but she did not believe this was the COITect approach to take. Mr. Jim Sweeney believed strongly that this ordinance should not be approved , and believed that it would kil many of Alameda s neighborhood. He noted that it would adversely impact traffic , and that more green space would be paved over.' He believed this would adversely affect the quality of life in Alameda , and was disappointed to find that there were already so many second units in town. He did not believe the ministerial application of the ordinance was an appropriate addition. Mr. Tom Bilings, 1607 High Street , spoke in support of this item. He noted that since his wife passed away, he has wished to build a cottage behind his home so that he could live in a more manageable and easy-to-navigate house. He noted that the implementation of the second unit ordinance would enable him to rent the main house and stay in Alameda. Mr. Robert Chasse noted that he was a long-time resident Alameda , and believed that the City s leaders wished to turn Alameda into a low-income community. He did not believe his neighbors would support the increase in density and traffic , which would make life more difficult for older people. Ms. Arlene Ken" spoke in opposition to this item , and noted that she had lived in Alameda for most of her life. She was dismayed to see the increase in density, and understood that there was sufficient low-income and Section 8 housing in town. She believed that more market- rate housing would bring more income to the City. She was strongly opposed to any change to Measure A. Mr. Ray Bolton spoke in opposition to this item. He believed that this ordinance would be end run around Measure A , and believed thatit provided incenti ve for more densi ty in town. He noted that traffic and parking were already seriously impacted, and that higher density would exacerbate those problems. The public hearing was closed. Planner il Kavanagh-Lynch advised that staff was available to answer questions. Planning Board Minutes December 8,2003 Page 15 Mr. Lynch believed that part of the Housing Element issue was a matter for Ci ty Council aselected policy-makers , not for the Planning Board. He noted that conformance with State law , and the decision whether to litigate , fell within the purview of the Council. He refelTedto the December 8 , 2003 , letter from ARC Ecology and Renewed Hope , and requested that staff clarify the computation of the in lieu fee at the next meeting. Mr. Fuz advised that the $14 735 in lieu fee applied for each unit; a nine unit project would require an in lieu fee of $132 615. The in lieu fee did not apply to projects larger than nine units, and that the developer would be required to actually provide the affordable units. Mr. Lynch noted that Alamedans were not residents of only a homeowners association, but of the City, and believed that major policy decisions affected every resident. He noted that it appeared on the surface that residents were being separated with respect to quantifiable aspects of their homes and uses, and requested clarification from staff. Ms. Han-yman advised that she would research that issue before the next meeting. She . believed that , for instance , if the hot tub/gazebo applicant had requested a second unit , thatwould be an acceptable use. If the CC&Rs stated that was not a permitted use , she believedthat State law would trump the CC&Rs. She believed that the law would apply tohomeowners associations , and would give a more detailed response at the next meeting. In response to President Pi zi ali ' s question regarding a general law city, Ms. Kavanagh-Lynchadvised that documentation distributed by HCD addressed that issue. It was HCD's stancethat this ordinance specificaIJy applied to charer cities, as well as general law cities. Ms. Kavanagh-Lynch advised that the State did not set a maximum square footage for an efficiency unit; the model language suggested 1 200 square feet. Guidance from the Board at the previous meeting set the square footage at 1 000 square feet or 25% of the size of the primar dwelling on the lot. Ms. Kavanagh-Lynch advised that conformance to the setbacksof attached second units from the main buildings in the district was not stipulated in the State regulations. The draft Ordinance included an administrative Varance for residences of nonconfOlming setbacks which was in line with the existing (k) & (1) standards. Planning Board Minutes December 8 , 2003 Page 16 With respect to height in an attached unit , Ms. Kavanagh-Lynch stated that it was specified in the district in existing regulations , and was subject to Design Review. The proposed draft Ordinance echoed that same language; the State does not speak specifically to that issue. Staff proposed in the Draft Ordinance that detached second units be limited to one-story; the State was silent on that issue as well. With respect to the unit being a rental-only unit, both the existing and proposed Code state that it would be; State Code was silent on this issue. Ms. Kavanagh-Lynch further stated existing second units must have one parking space per bedroom, with a maximum of two spaces. That language was echoed in the proposed ordinance , and that reflected the maximum State standard for off-street parking for the second uni 1. Ms. Kavanagh-Lynch addressed Mr. Buckley s inquiry regarding Design Review. The City of Alameda believed that the use was ministerially permitted, but the design required a Design Review. Staff did not find a specific statement by the State one way or the other. Mr. Fuz advised that the City was required by law to submit the ordinance to HCD for their review and comment. He noted that the Housing Element review was still pending final action by HCD. Mr. Cunningham believed that criteria in the Inclusionary Ordinance should be set by family size as well as income. He believed that the smallest units would not be appropriate for a family of four people or more , and did not wish to exclude them. Ms. Eliason noted that staff would be presenting at the next meeting development guidelines for the inclusionary units. Some of the ordinance language being suggested reflected the concern that the low and moderate income units not be identifiable as such. She noted that issue would be addressed at the next meeting. Mr. Cunningham inquired whether expansion or modification of those units would be alIowed to accommodate a larger family. Ms. Eliason advised that the Inc1usionary Ordinance and the guidelines were currently silent to that issue. Staff believed that the residents of those units would have the right of any homeowner to add on to their home in conformance with the Municipal Code. Planning Board Minutes December 8 2003 Page 17 In response to an inquiry by Mr. Cunningham, Ms. Eliason replied that the units were deed restricted as far as the income levels. If a homeowner made an addition that increased the value of the home , they would not necessarily be able to recoup that expense upon sale of the unit. She noted that some cities in California had a way of balancing equity and the length of ownership. Staff suggested a 59 year cap that could be renewed at the City s discretion, and added that keeping affordable units affordable was a primary concern. In response to an inquiry by Ms. Cook, Ms. Eliason noted that those examples did not match . and added that the State held the City to a per bedroom standard not a square footage standard. If a second unit were to be added , the homeowner would be required to add one parking space for the first bedroom , and one parking space for a second bedroom. Ms. Cook noted that she would rather encourage development of new space within the existing historic buiJding envelope , rather than put an additional unit in the back. Mr. Lynch suggested that staff examine the existing policy, and make it consistent what would be adopted. Ms. Eliason noted that staff would do that to the extent that was possible. No action was taken. This item wil be continued to the Planning Board meeting of January 2004. Planning Board Minutes December 8,2003 Page 18 CITY OF ALAMEDA ORDINANCE NO. 292 New Series AMENDING THE ALAMEDA MUNICIPAL CODE BY ADDING NEW SECTION 30- (INCLUSIONARY HOUSING REQUIREMENT FOR RESIDENTIAL PROJECTS) TO CHAPTER XXX (DEVELOPMENT REGULATIONS) BE IT ORDAINED by the Council of the City of Alameda that: Section 1 The Alameda Municipal Code is hereby amended by adding a new Section 30-16, "Inclusionary Housing Requirement for Residential Projects," to Chapter 30, Development Regulations, thereof to read: 30-Inclusionar Housing Requirement For Residential Projects Subsection 30-16-Purpose. Subsection 30-16-Findings. Subsection 30-16-Defintions. Subsection 30-16-4 Inclusionar Unit Requirements. Subsection 30-16-Exemptions. Subsection 30-16-Alternatives. Subsection 30-16-Incentive. Subsection 30-16-Compliance Procedures. Subsection 30-16-Requirements for Inclusionar Units. Subsection 30-16-10 Contiued Mfordabilty. Subsection 30-16-11 Limted Use of Fees. Subsection 30-16-12 Adjustments, Waivers. Subsection 30-16-13 Communty Improvement Project Areas. Subsection 30-16-14 Enforcement. 30-16-Purpose. The purpose of ths section is to (a) implement the goals and objectives of the Housing Element of the City of Alameda General Plan, (b) mitigate the impacts onhousing affordabilty caused by new residential development, and (c) meet the need for housing affordable to persons of very low-, low- and moderate-income. 30-16-Findings. a. California and the City of Alameda face a serious housing problem that threatens their economic security. Persons of very low-, low- and moderate-income are experiencing increasmg difficulty in locating and maintaing adequate, safe and sanitary affordable housing. Lack of access to affordable housing has a direct impact upon the health, safety and welfare of the residents of Alameda. Alameda wil not be able to contribute to the attainent of State housing goals or to retain a healthy environment without additional affordable housing. As noted in the City's Housing Element, a regional shortage of affordable housing is contributig to overpayment for housing accommodations, someties leading to temporar or permanent homelessness. b. A lack of new Inclusionary Units wil have a substantial negative impact on the environment and economic climate 'because (i) housing wi have to be built elsewhere, far from employment centers and therefore, commutes wil increase, causing increased traffic and transit demand and consequent noise and air pollution, and (ii) City businesses wil find it more difficult to attact and retai the workers they need. Inclusionar housing policies contribute to a healthy job and housing balance by providing more affordable housing close to employment centers. c. Development of new market-rate housing encourages new residents to move to the City. These new residents wi place demands on services provided by both public and private sectors. Some of the public and private sector employees needed to meet the needs of the new residents ear incomes only adequate to pay for affordable housing. Employees who are unable to fid afordable housing in the City wi be forced to commute long distances. Ths situation adversely impacts on their quality of life, consumes limted energy resources, increases trafc congestion and has a negative impact on air quality. d. Increasing the production and avaiabilty of afordable housing is problematic. Prices and rents for affordable housing remai below the level needed to attact new constrction. At the same tie, escalatig land costs and rapidly dimshig amounts of land avaiable for development hider the provision of affordable housing unts solely though private action. Federal and state fuds for the constrction of new affordable housing are inufficient to fuly address the problem of affordable housing withi the City. e. The City wishes to retain an economicaly balanced community, with housing available to very low-, low- and moderate-income households. The City' General Plan implements the established policy of the State of Californa that each community should foster an adequate supply of housing for persons at all economic levels. f. It is appropriate to impose some of the cost of the increased burden of providing housing for very low-, low- and moderate-income persons directly on the developers, and indirectly upon the occupiers, whose developments necessitate the need for such housing. In addition to the demands on services from such developments, new development without affordable units contributes to the shortage of affordable housing. Zonig and other ordinnces concerning new housing in the City should be consistent with the community's goal to foster an adequate supply of housingfor persons at all economic levels. 30-16-Definitions. As used in this section: Affordable Rent shall mean monthy rent (including utiity allowance) that does not exceed one-twelfth of 30 percent of the maximum anual income for a Household of the applicable income level (Very Low-, Low- or Moderate-Income). Affordable Housing Guidelines shal mean guidelies adopted by the City Council to specif location and design standards for Inclusionar Units. Affordable Housing lan shal mean a legaly binding agreement between Developer and the City to ensure tht the requirements of ths Chapter are satified. The Affordable Housing Plan establishes the number and location of Afordable Units, production schedule and other standards. Affrdable Ownership Cost shal mean a sales price tht results in a monthy housing cost (including mortgage, inurance, utities, taxes, assessments and home owner association costs, if any) that does not exceed one-twelfh of 30 percent of themaxum anual income for a Household of the applicable income (Very Low-, Low- or Moderate-Income). Household sha mean one person living alone or two or more persons sharing residency whose income is considered for housing payments. Inclusionary Unit shal mean a dwellg unt that must be offered at Affordable Rent or available at Afordable Housing Cost to Very Low-, Low- or Moderate-Income .Households. In-Lieu Fee shal mean the fee described in Subsection 30-16-6(a) that is paid to the City as an alternative to the production of inclusionar housing, which fee shal be used in accordance with Subsection 30-16-11. Low-Income Household shall mean a Household whose annual income does not exceed the qualifing limts set for "lower income households " in Section 50079.5 of theCaliforna Health & Safety Code. ' Market-Rate Unit shall mean a dwelling unt in a Residential Development that is not an Inclusiona Unit. Moderate-Income Household shall mean a Household whose anual income does not exceed the qualifying limits set for "persons and families of low or moderate income " in Section 50093 of the Californa Health & Safety Code. Residential Development shall mean any planed development district, subdivision map, conditional use permt or other discretionary land use approval that authorizes the construction of residential dwelling unts. Very Low-Income Household shal mean a Household whose anual income does not exceed the qualifing limts set for livery low income households " in Section 50105 of the California Health & Safety Code. 30-16-4 Inclusionar Unit Requirements. a. Unit Requirement. For all Residential Developments of five (5) or more units, at least fieen percent (15%) of the total unts must be Inclusionar Units restrcted for occupancy by Very Low-, Low- or Moderate-Income Households. The number of Inclusionar Units required for a parcular project wil be determed only once, at the tie of project approval. If a change in the Residential Development design results in a change in the total number of unts, the number of Inclusionar Units required wil be recalculated to coincide with the fial approved project. b. Calculation. For purposes of calculatig the number of affordable units required by ths subsection, any additional units authorized as a density bonus under Californa Governent Code Section 65915(b)(1) or (b)(2) wi not be counted in determg the required number of Inclusionar Units. In determg the number of whole Inclusionar Units required, any decimal fraction less than 0.5 shal be rounded down to the nearest whole number, and any decimal fraction of 0.5 or more shal be rounded up on the nearest whole number. c. Types ofInclusionary Units: Four percent (4%) of the total units must be restricted to occupancy by Low-Income Households; four percent (4%) of the total must be restricted to occupancy by Very Low-Income Households; and seven percent (7%) must be restricted to occupancy by Moderate-Income Households. For Residential Developments with sixty-nie (69) or fewer total units, InclusionarUnits shal be . restricted for occupancy by very low-, low- or moderate-income households in the following proportions, which are based upon the above calculations: Total Units Inclusionar Units Income Levels 5t09 10 to 16 17 to 23 24 to 29 30 to 36 37 to 43 44 to 49 50 to 56 57 to 63 64 to 69 1 moderate 1 moderate, 1 low 1 moderate, 1 low, 1 very low 2 moderate, 1 low, 1 very low 3 moderate, 1 low, 1 very low 3 moderate, 2 low, 1 very low 3 moderate, 2 low, 2 very low 4 moderate, 2 low, 2 very low 4 moderate, 3 low, 2 very low 5 moderate, 3 low, 2 very low d. Affrdable Housing Guidelines. Inclusionar Units built under ths section must conform to the Affordable Housing Guidelines adopted by the City Council. 30-16-Exemptions. The requirements of th section do not apply to: a. Reconstrction. The reconstrction of any strctues that have been destroyed by fie, flood, earthquake or other act of nature provided that the reconstrction takes place with thee (3) years of the date the strctues were' destroyed. Residential Developments of four (4) units or less. c. Residential building additions, repairs or remodels. Residential building additions, repais or remodels; provided, that such work does not increase the number of existing dwellg unts beyond four (4) unts. d. Affrdable housing projects. Residential Developments that already have more dwelling unts that qualif as affordable to Very Low-, Low- and Moderate- Income Households than ths Section requires. e. Residential Developments with approved maps. Residential Developments for which a tentative map or vestig tentative map was approved , or for which a building permit was issued, prior to the effective date of the ordinance codified in this Section and which contiue to have unexpired permts. 30-16-Alternatives. a. In-Lieu Fees. For Residential Developments of nie (9) or fewer units, including Inclusionary Units, the requirements of this section may be satisfied by paying an In-Lieu Fee. The fee wil be set by the City Council by resolution and shall be sufficient to make up the gap between (i) the amount of development capital typically expected to be available based on the amount to be received by a developer or owner from Affordable Housing Cost or Affordable Rent, and (ii) the anticipated cost of constrctig the Inclusionar Units. Fees shall be paid upon issuance of building permits for Market-Rate Units in a Residential Development. If building permts are issued for only par of a Residential Development, the fee amount shall be based only on the number of units then permtted. b. Offsite constrction. Inclusionar Units may be constrcted off-site if thePlang Board can make a finding that the purposes of ths section would be better served by the constrction of off-site units. In determg whether the purposes of ths section would be better served by ths alterntive, consideration should be given as to whether the off-site units would be located in an area where, based on avaiabilty of affordable housing, the need for such units is greater than the need in the area of the proposed development. 30-16-Incentive. The City may provide the following incentive to a developer who elects to satify the inclusiona housing requirements of th section by producing Inclusionar Unitson the site of the Residential Development. a. Expedited Processing. Eligibilty for expedited processing of development and permt applications for the Residential Development. Subsection 30-16-Compliance Procedures. a. Conditions to car out the purposes of ths section shal be imposed on the approval of any Residential Development to which ths section pertai. b. As part of the application for a Residential Development, the applicant shall submit an Affordable Housing Plan demonstratig compliance with ths section. The Affordable Housing Plan must include: (i) a description of the number and size of each Market-Rate Unit and each Inclusionar Unit, including the income levels to which each Inclusionar Unit wil be made affordable, (ii) a narative describing how the plan adheres to the Affordable Housing Guidelines adopted by the City Council, and (ii) site map, with the location of the Inclusionar Units clearly marked. c. The Affordable Housing Plan shall be reviewed and approved by the decision-making entity concurrently with the Residential Development in accordance with the procedures in the Alameda Municipal Code. The Affordable Housing Plan shall be made a condition of approval of the Residential Development and shal berecorded by the applicant together with any implementig regulatory agreements, resale restrictions, deeds of trust and/ or simar implementing documents as a restriction on the parcel or parcels on which the Affordable Units wil be constructed d. The Planng Board shall review any applications requestig off-siteconstruction withi their Affordable Housing Plan. The Affordable Housing Plan shall include a site map of the off-site location, a description of the arrangements made for constrction at that site and demonstration that the proposed off-site construction complies with Section 30-16-6(b). Off-site construction may only be approved in accordance with Subsection 30-16-6(b). e. Al Inclusionar Units shal be constrcted and occupied as specifed the approved Affordable Housing Plan concurrently with or prior to the constrction and occupancy of Market Rate Units uness certication is obtaied from the Plang and Building Director that the applicant has met, or made arangements satisfactory to the City to meet, an alternative procedure set fort in subsection 30-16-6. In phased Residential Developments, Inclusionar Units sha be constrcted and occupied in . proportion to the number of units in each phase of the esidential Development. No final inpection for occupancy for any Market-Rate Unit shal be completed for the Residential Development or for any phase of the Residential Development untilthe applicant has constrcted the Inclusionar Units required in the approved Affordable Housing Plan for the Residential Development or for any phase of the Residential Development by subsection 30-16-4 or completed corresponding alternative performance under subsection 30-16-6. 30-16-Requirements for Inclusionar Units. a. Eligibility Requirements. No Household may occupy an Inclusionar Unit unless the City or its designee has approved the Household's eligibilty in accordance with City-approved policies. Each Household that occupies a rental Inclusionar Unit or purchases an owner-occupied Inclusionar Unit must occupy that unit as that Household's principal residence. b. Initial Sales Price of Owner-Occupied Units. The intial sales price of an owner-occupied Inclusionar Unit shal be set so that the eligible tfousehold wil pay anAffordable Owership Cost. Resale and other restrctions on the Inclusionar Unit wil be governed by the reguatory agreements, resale restrictions, deeds of trst or other recorded agreements recorded againt the Inc1usionary Unit as approved in the Affordable Housing Plan per Section 30-16- c. Rent of Rental Units. Rental Inclusionar Units shall be o#ered to eligible Households at an Affordable Rent. 30-16-Continued Mfordability. a. Regulatory agreements, resale restrictions, deeds of trust and/ or other documents acceptable to the City Manager, all consistent with the requirements of this section, shal be recorded agait Inc1usionar Units and Residential Developments containg Inclusionary Units. These documents shal legally restrict occupancy of Inclusionar Units to Households of the income levels for which the unts were designed for a mium of fity-nie (59) years. The fonn of reguatory agreements, resale restrictions, deeds of trst and other documents authorized by this subsection, and any change in the form of any such document which materialy alters any policy in the document, shall be approved by the City Manager. b. The resale restrictions required by subsection 30-16-10(a) shall allow the City a right of fist refual to purchase any owner-occupied Inclusionar Unit at the maximum price which could be charged to a qualified purchaser Household, at the tie the owner proposes a sale. 30-16-11 Limited Uses of Fees. a. Use and Disbursemet of Fees. In-lieu Fees collected under ths section sha be used in accordance with and in support of affordable housing as determed by the City Manager. Expenditues of In-lieu Fees shal be limted to direct expenditues for capital projects or incidental non-capital expenditues related to capital projects, including but not limted to pre-development expenses, land acquiition, constrction, rehabiltatipn, subsidization, counseling or assistance to other goverental entities, private organations or individuals to expand affordable housing opportnities to very low-, low- and moderate-income households. Authorized expenditues also include, but are not limted to, assistance to housing development corporations, equity participation loan, grants, predevelopment loan fuds, participation leases, loan or other public/private parership arangements to develop afordable housing or other publici private partnership arrangements. The In-lieu Fees may be expended for the benefit ()f either rental or owner-occupied housing. The In-lieu Fees may not be used to support operations, or on-going housing services not directly related to the constrction, acquisition, rehabiltation or preservation of affordable housing unts. b. Accounting of Fees. AIl In-Lieu Fees shall be deposited into a segregated account and all expenditures of funds from the same shall be documented and included in an anual report that shall be made available for public inpection. 30-16-Adjustments, Waivers. a. Adjustment. The requirements of ths section may be waived, adjusted or reduced if an applicant shows that there is not a reasonable relationship between the impact of a proposed Residential Development on the demand for affordable housing in the City and the requirements of ths section or that applying the requirements of this section without the requested waiver, adjusbnent or reduction would constitute a takg in violation of the United States or California Constitutions or be otherwse ilegal. Under current law, mere economic hardship or dimution in value does not constitute an unawfu takg of propert. Such a request shal be made in wrtig andfied with the Plang and Building Deparent at the tie of intial submittal an application for approval of a Residential Development and/ or as par of any appeal from a decision regardig such an application. The request shal state completely and in detai: (i) the requested waiver, adjusbnent or reduction of the requirements, (ii) the factual basis for the request, and (ii) the legal basis of ths request. If the Plang Board determies tht the requirements of th section lack a reasonable relationship to the impact of a proposed Residential Development on demad for afordable housing in the City or that those requirements constitute a takg in violation of the United States or Californa Constitutions, the requirements of ths section shal be modifed, adjusted or waived to the extent necessar to avoid an unconstitutiona result or ilegaloukome. b. Appeal Procedure. The applicant, a member of the public or a member of the City Council or Plang Board may appeal a determiation under this ordinancewith ten (10) days after the decision under subsection 30-21.11. Appeals sha be heard pursuant to Section 30-25. c. Fee for Adjustment Request or Appeal. The cost of the consideration of a request for adjusbnent or waiver of the requirements of ths section and appeal shall be borne by the applicant in an amount set forth in the Master Fee Resolution of the CityCouncil. 30-16-Community Improvement Project Areas. Ths section shall not apply to Residential Developments in the City' Communty Improvement Project Areas as long as the Communty Improvement Commssion adopts separate resolutions or policies pertaig to inclusionary housing requirements in such areas. 30-16-Enforcement. a. Misdemeanor Violation. It shall be a misdemeanor to violate any provision of this Section. Without limtig the generality of the foregoing, it shall be a misdemeanor for any person to sell or rent to another person an Inclusionary Unit under this Section at a price or rent exceeding the maximum allowed under this Section or to sell or rent an Inclusionar Unit to a Household not qualified under ths Section. It shall further be a misdemeanor for any person to provide false or materially incomplete inormation to the City or to a seller or lessor of an Inclusionar Unit to obtain occupancy of housing for which he or she is not eligible. b. Additional Enforcement Mechanisms. In addition to the penalties provided in ths Su section, any violation of th Section may be redressed by any enforcement mechansm, including but not limted to a civil action, described in Section 1-5, Penaty Provisions; Enorcement, of ths Code. ' Section 2 Severabilty. If any section, paragraph, sentence, clause, or phrase of the Ordince or any part thereof, is for any reason held unconstitutiona, invald, or ineffective by any cour of competent jursdiction, said decision shal not affect the validity or effectiveness of the remaing portions of thi Ordiance, or any par thereof. The City of Alameda City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase herein, irespective or the fact that anyone or more sectons, subsections, subdivU?ions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. Section 3 Publication. The City Oerk shal either (a) have ths Ordinance published once with 15 days after adoption in a newspaper of general circulation in accordance with Section 36933(a) of the Californa Governent Code, or (b) have a sumar of thi ordinance published twce in a newspaper of general circulation, once five days before its adoption, and agai with 15 days afer adoption in accordance with Section 36933(c) of the Californa Governent Code. Section 4 Effective Date. Ths Ordinance sha be in full force and effect from and after the expiration of thty (30) days from the date of its fial, passage. NOTICE.. No judicial proceedigs subject to review pursuat to Calforna Code of Civil Procedure Section 1094.5 may be prosecuted more than niety (90) days following the' date of ths decision or fial action on any appeals plus extensions authoried by Californa Code ofCivil Procedure Section 1094.6. . Attest: Cui1?JL Lara Weisiger, City c(k City of Alameda ***** I, the undersigned, hereby certfy that the foregoing Ordiance was duly and reguarly adopted and passed by the C uncil of the City of Alameda in a reguar meetig assembled 0:0 the 15 day of June, 2004 by the followig vote to wit: AYES:Councilembers Giore , Mataese, and Mayor Johnon - 3. NOES:Councilmembers Daysog and Ken - 2. . ABSENT:None. ABSTENTIONS:None. IN WITNSS , WHREOF, I have hereunto set my hand and afed the offcial seal of said City ths 16th day of June, 2004. Wti; Lara Weisiger, City Cler City of Alameda PUBLIC NOTICE CITY OF ALAMEDA NonCE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Alameda CI Council wil hold Public Hearings In rJ%I ~~~~~~~ l.s288I,:l g: ~~~~~~~~~~~~ k Street, Alameda, 1) adoption of a resolution confirming the Business Improvement Area Business Imp ~~~~~ lgnh: gl ~~~~ :os e"nJ on the Alameda2) Introduction of an ordinance Amending the Alameda Municipal Code by ')'t ectlon 30-16, Incluslonary Housing Requirement for Residential Interested persons are Invited to attend and be heard on the matter. LARA WEISIGER City Clerk Legal Alameda Journal #2283 Publish May 11, 200 PROOF OF PUBLICATION (2015.5 C. STATE OF CALIFORNIA County of Alameda I am a citzen of the United States, I am over the age of eighteen years, and I am not a part to or interested In the above-entitled matter. I am a foreman or principle clerk ofthe printer and publisher of the Alameda Journal, a newspaper published in the English language In Alameda County, State of California. I declare that the Alameda Journal is a newspaper of general circulation as defined by the laws of the State of California as detennlned by the order of the Superior Court of the County of Alameda. dated August 25, 1992 , in the action entitled "In the Matter of the Petition of the Alameda Journal to Have the Standing of the Alameda Journal as a Newspaper of General Circulation Ascertined and Established," Case Number 702515-6. Said order provides that: "Petitioner's prayer for an order ascertining and establishing The Alameda Journal as a newspaper of general circulation...withln the City of Alameda. County of Alameda , State of California, is granted." Said order has not been revoked. I declare that the notice, a printed copy of which is annexed hereto, has been published in each regular and entire issue of the Alameda Journal and not in any supplement thereof on the following dates to wit: Mav 11. all in the year of 2004 I certfy (or declare) under penalty of perjury that the foregoing is tre and correct. Signatur Proof of Publication of: (attched is a copy of the legal advertsement that published)