Ordinance 2926CITY OF ALAMEDA ORDINANCE NO. 2926
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, "Inc1usionary Housing Requirement for Residential Projects," to Chapter
, Development Regulations, thereof to read:
30-Inclusionary Housing Requirement For Residential Projects
Subsection 30-16-Purpose.
Subsection 30-16-Findings.
Subsection 30-16-Definitions.
Subsection 30-16-Inc1usionary Unit Requirements.
Subsection 30-16-Exemptions.
Subsection 30-16-Alternatives.
Subsection 30-16-Incentive.
Subsection 30-16-Compliance Procedures.
Subsection 30-16-Requirements for Inc1usionary Units.
Subsection 30-16-10 Continued Affordabilty.
Subsection 30-16-11 Limited Use of Fees.
Subsection 30-16-12 Adjustments , Waivers.
Subsection 30-16-13 Community Improvement Project Areas.
Subsection 30-16-14 Enforcement.
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 afford abilty caused by new residential development, and (c) meet the need for
housing affordable topersons 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 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 Inc1usionary 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 willplace 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. Thissituation adversely impacts ontheir
quality of life, consumes limited energy resources, increases traffic congestion and has a
negative impact on air quality.
d. Increasing the production and availability of affordable housing is
problematic. Prices and rents for affordable housing remain below the level needed to
attract new construction. At the same time, escalating land costs and rapidly
diminishing amounts of land available for development hinder the provision of
affordable housing units solely through private action. 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
developments, 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.
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 annual 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 monthly
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
maximum 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 dwellng 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 shall 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 annual 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 families 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.
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 unts must be Inclusionary Units
restricted for occupancy by Very Low-, Low- or Moderate-Income Households. The
number of Inc1usionary Units required for a particular project wil be determined only
once, at the time of project approval. If a change 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 Inc1usionary Units. In determining 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
rounded up on the nearest whole number.
c. Types of Inclusionary 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, Inc1usionary 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
Inc1usionary
Units Income Levels
5 t09
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. Affordable Housing Guidelines. Inclusionary Units built under this section
must conform to the Affordable Housing Guidelines adopted by the City Council.
30-16-Exemptions.
The requirements of this section do not apply to:
a. Reconstruction. 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 were
destroyed.
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 dwellng units that qualify as affordable to Very Low-, Low- and Moderate-
Income Households than this 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.
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. Offsite construction. Inclusionary Units may be constructed off-site if the
Plannng 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
this 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.
30-16-Incentive.
The City may provide the following incentive to a developer who elects to satisfy
the inclusionary 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.
30-16-Compliance Procedures.
a. Conditions to carry out the purposes of this section shall beimposed 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 Inc1usionary Unit wil be made affordable, (ii) a narrative describing how the plan
adheres to the Affordable Housing Guidelines adopted by the City Council, and (iii) 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 withn 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. All Inclusionary Units shall be constructed and occupied as specified in
the approved Affordable Housing Plan concurrently with or prior to the construction
and occupancy of Market Rate Units unless certification is obtained from the Planning
and Building Director that the applicant has met, or made arrangements satisfactory to
the City to meet, an alternative procedure set forth in subsection 30-16-6. In phased
Residential Developments, Inclusionary 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 Inclusionary 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-
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 eligibility 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 Ownership 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-
Rent of Rental Units. Rental Inclusionary Units shall be offered 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, shall be recorded against Inclusionary Units and Residential Developments
containing Inclusionary Units. These documents shall legally restrict occupancy of
Inc1usionary 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 Inc1usionary Unit at the
maximum price which could be charged to a qualified purchaser Household, at the time
the owner proposes a sale.
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 determined 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,
rehabiltation, subsidization, counseling or assistance to other governmental 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, loans or
other publici private partnership arrangements to develop affordable housing or other
publici 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.
30-16-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 diminution in value does not
constitute an unlawful taking of property. Such a request shall be made in writing and
fied with the Planning 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 (iii) the legal basis of this request. If the Plannng
Board determines that the requirements of this 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 Planning Board may appeal a determination under this ordinance
within 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 this section and appeal shall be
borne by the applicant in an amount set forth in the Master Fee Resolution of the City
Council.
30-16-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
Commission adopts separate resolutions or policies pertaining 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 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 arrdsdemeanor 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-, 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 remaining 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
summary 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 shall be in full force and effect
from and after the expiration of thirty (30) days from the date of its final passage.
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 Californa Code
Civil Procedure Section 1094.6.
Attest:
lVC;fr1
Lara Weisiger, CitfJlerk
City of Alameda
*****
, the undersigned , hereby certify that the foregoing Ordinance was duly and regularly
adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 15
day of June, 2004 by the following vote to wit:
AYES:Councilmembers Gilmore, Matarese, and Mayor Johnson - 3.
NOES:Councilmembers Daysog and Kerr - 2.
ABSENT:None.
ABSTENTIONS:None.
IN WI1NESS , WHEREOF , I have hereunto set my hand and affixed the offcial seal of said City thsth day of June , 2004.
Lara Weisiger, City ql
City of Alameda