§ 15.30

The purpose of the replacement housing ordinance codified in this chapter is to assist in developing and preserving affordable housing opportunities for low and moderate income households residing in the downtown area of Morgan Hill. The replacement housing ordinance codified in this chapter is intended to ensure that assistance is provided to households whose existing homes are replaced with higher density housing or commercial development by requiring developers to provide relocation assistance to low and moderate income households whose homes are demolished, removed or converted to another use. Additionally, developers who demolish a residential unit occupied by low or moderate income households with new, higher density residential units will be required to provide one replacement unit on-site affordable to low-income persons. If a property contains two residential units which will both be demolished, the owner will be required to provide only one replacement unit. Commercial development replacing existing residential units occupied by low or moderate income housing will mitigate this impact through the payment of fees in lieu of replacement residential units. These fees will be paid into a special housing fund to provide low/moderate residential housing.

A.

The city council finds and declares that the ordinance codified in this chapter will serve the public purposes of preserving and increasing the supply of affordable housing for low-income households.

B.

The city council finds and declares that this chapter will prevent displacement of low and moderate income households from the city and will ease the burden of relocation through the provision of relocation benefits.

C.

The city council finds that the adoption of the ordinance codified in this chapter will not have a significant, substantial or adverse effect on the physical environment of the community because enactment of the ordinance codified in this chapter involves no deviation from the general plan and no change in the present use of any property within the city. Further environmental review will be performed for individual projects as they are proposed to be constructed.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

A.

"Affordable rent" means monthly rent that does not exceed twenty-five percent of the monthly gross income of a household at the upper income limit of the applicable income category.

B.

"Gross income" means the total gross income for federal income tax purposes of all adult members of a household who intend to permanently occupy the household.

C.

"Low-income household" means a household with a gross income that does not exceed eighty percent of the median income.

D.

"Median income" means the median gross yearly income for a household in Santa Clara County, adjusted for household size, as published by the state of California in Title 25, California Code of Regulations Section 6932 (or any successor code section), as periodically revised.

E.

"Moderate-income household" means a household with a gross income that is greater than eighty percent of median income that does not exceed one hundred twenty percent of median income.

F.

"Monthly gross income" means one-twelfth of the gross income as defined in subsection B.

G.

"Residential unit" is any unit occupied as the primary place of residence of a household, regardless of zoning classification or permissible use of the building of which it is a part.

H.

"The downtown neighborhood" means the areas within the designated outline shown on the boundaries map of the replacement housing program attached to the ordinance codified in this chapter and incorporated herein by this reference.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.030 - Program Boundaries Map incorporated by reference.

A map entitled "Program Boundaries Map, Replacement Housing Program" is incorporated herein by this reference and made a part of this chapter. This map shall be available for public inspection at the City Hall under the same terms and conditions as other public documents.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.040 - Applicability.

A.

The provisions of this chapter shall apply to residential rental units located in the downtown neighborhood which are occupied by either a low-income household or a moderate-income household.

B.

For purposes of this section, a residential dwelling unit shall be considered occupied by a low or moderate income household if a low or moderate income household currently occupied the unit, or has occupied the dwelling unit within six months prior to the date of submission of the application for increased residential density development or a change to commercial use.

C.

For purposes of this section, a residential dwelling unit shall be considered occupied by a low or moderate income household if a low or moderate income household occupied the unit within one year of the date of application for increased residential density development or a change to commercial use where substantial evidence exists that the household was evicted or the tenancy was terminated by the landlord, including constructive eviction caused by harassment or failure to repair and maintain the residential unit for the purposes of avoiding the requirements of this section. Termination of tenancy by the owner or owner's agent within one year prior to the application, for any cause other than nonpayment of the rent, or damage to the premises, shall create a rebuttable presumption that the household was evicted for purposes of avoiding the requirements of this section.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.050 - Assistance to be provided—Residential units replaced with new residential units.

As a condition of approval for existing residential units in the downtown area to be replaced with new residential units of higher density, the owner is required to assist the existing low or moderate income households by providing temporary relocation assistance during demolition and construction of new units, and providing the first right of refusal for an on-site replacement housing unit to replace the previously existing units when construction is completed. The replacement housing units shall remain affordable for the longest feasible time but no less than that period of time required by regulations adopted by the redevelopment agency for use of housing moneys. If redevelopment funds are used, the new replacement unit shall remain affordable for the duration of land use controls of the city's redevelopment plan.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.060 - Assistance to be provided—Residential units converted to or replaced with another use.

As a condition of approval for existing residential units in the downtown area to be converted or replaced with use other than residential, the owner shall be required to provide relocation assistance to the existing tenants so they can move to suitable and affordable housing. Relocation assistance shall consist of all reasonable moving expenses (up to a maximum of seven hundred fifty dollars per household) and assistance in locating decent, safe, and sanitary affordable housing. At a minimum, the owner will be required to provide up to twelve months of assistance to the tenant in an amount which equals the reasonable increase in rent and utility costs, not to exceed a maximum total payment of four thousand two hundred dollars per household. Additionally, the owner shall pay into a special housing fund to be established, fees to be set by resolution of the city council, which fees shall be used for the purpose of developing and constructing low and moderate income housing.

an amount which equals the reasonable increase in rent and utility costs, not to exceed a maximum total payment of four thousand two hundred dollars per household. Additionally, the owner shall pay into a special housing fund to be established, fees to be set by resolution of the city council, which fees shall be used for the purpose of developing and constructing low and moderate income housing.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.070 - Notice requirements.

A.

The property owner must provide a minimum of sixty days' advance notice in writing to the tenants of tenants' need to vacate the unit for demolition or conversion. Said notice shall inform the tenants of their options in terms of housing assistance. A sample "Notice to Tenants" containing the required information will be available as an appendix in the Rules and Regulations maintained pursuant to Section 15.30.090 to implement this chapter.

B.

Notice under subsection A shall be given to all tenants residing in the dwelling unit at the time the application for demolition or conversion is made as well as to those tenants who occupied the dwelling unit within six months prior to the date of application but who have since moved. Additional notice will be required to be provided to any tenants who live in the unit within one year of the date of application but who are determined by the city to have been evicted for the purposes of avoiding the program requirements under this chapter.

C.

The property owner shall make every reasonable effort to locate former tenants as required under subsection B and provide them with the required notice. The property owner shall maintain written documentation that efforts have been made to locate former tenants who might benefit from this chapter.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013) 15.30.080 - Relocation/replacement loans.

Any redevelopment housing funds available to the city will be made available to property owners who are required to provide both relocation assistance and replacement housing to tenants. Under the terms to be established by the redevelopment agency, loan funds will be available and shall be secured by the property on which replacement units are built or on the property to be converted to another use. Funds will only be provided where the project including replacement units is not economically feasible without assistance. In the event that redevelopment funds are utilized for a project, state law requirements regarding affordability and relocating may come into effect and will supersede the local requirements set forth in this chapter.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.090 - Rules and regulations.

The housing program coordinator shall make recommendations for rules and regulations as deemed necessary to implement this chapter. Implementing regulations shall be adopted by resolution of the city council and shall be maintained in the office of the city clerk. Such rules and regulations shall serve as an interpretation of this chapter.

(Ord. 1861 N.S. § 8 (part), 2007: Ord. 913 N.S. § 1 (part), 1989; Ord. No. 2095 N.S., § 2, 11-20-2013)

15.30.100 - Violation.

It is unlawful to violate any provisions of this chapter.

(Ord. No. 2276 N.S., § 59, 5-2-2018)

Editor's note— Ord. No. 2276 N.S., § 59, adopted May 2, 2018, amended § 15.30.100 in its entirety to read as herein set out. Former § 15.30.100 pertained to violation—penalty and derived from Ord. 913 N.S., § 1(part), adopted in 1989; Ord. 1861 N.S., § 8(part), adopted in 2007; and Ord. No. 2095 N.S., § 2, adopted Nov. 20, 2013.

Chapter 15.36 - SMALL RESIDENTIAL ROOFTOP SOLAR SYSTEM PERMITTING