5.03.206 Compliance Procedures.

(a) General. Approval of an Inclusionary Housing Plan and implementation of an approved Inclusionary Housing Agreement is required for any For-Sale Residential development project that includes Inclusionary Units. It is also required for any For-Rent Residential development project that chooses to restrict certain units pursuant to the requirements of Government Code Section 65915(b)(1)(A)-(D). It is not required, however, for exempt projects or for projects where the requirements of this subchapter are completely satisfied by payment of a fee under section 5.03.198.

(b) Time for Compliance. An applicant for any Development required to comply with this Section, shall submit a preliminary plan to the Town detailing how the Development intends to comply with the requirements of this subchapter, at the time of submittal of application materials for a tentative map, parcel map, or any other discretionary permit or entitlement needed for the project. No application for a tentative map, parcel map or building permit to which this Chapter applies may be deemed complete until a preliminary plan is submitted to the Town. The Town shall impose, as a condition of approval, the requirement that the Development seek the approval of an Inclusionary Housing Plan and implementation of an approved Inclusionary Housing Agreement. The Inclusionary Housing Plan shall be required to be submitted, reviewed, and approved prior to final map approval and recordation, or prior to the first building permit issuance, whichever comes first.

(c) Inclusionary Housing Plan. The City Council must approve, conditionally approve or reject the Inclusionary Housing Plan within 60 days of the date of a complete application for that approval. If the Inclusionary Housing Plan is incomplete, the Inclusionary Housing Plan will be returned to the Developer along with a list of the deficiencies or the information required. At any time during the review process, the Town may require from the Developer additional information reasonably necessary to clarify and supplement the application or determine the consistency of the proposed Inclusionary Housing Plan with the requirements of this Chapter. The Inclusionary Housing Plan must include:

(1) The location, structure (attached, semi-attached, or detached), proposed tenure (for sale or rental), and size of the proposed market-rate, commercial space and/or Inclusionary Units and the basis for calculating the number of Inclusionary Units;

(2) A floor or site plan depicting the location of the Inclusionary Units;

• (3) The income levels to which each Inclusionary Unit will be made affordable;

(4) The mechanisms that will be used to assure that the units remain affordable for the desired term, such as resale and rental restrictions, deeds of trust, and rights of first refusal and other documents;

(5) For phased Development, a phasing plan that provides for the timely development of the number of Inclusionary Units proportionate to each proposed phase of development.

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(6) A description of any incentives that are requested of the Town;

(7) Any alternative equivalent actions proposed for the Development along with information necessary to support the findings required by this Subchapter for approval of such alternatives;

(8) The sequence in which the different levels of Inclusionary Units shall be built and occupied, for example, the first Inclusionary Unit may only be occupied by a VeryLow Income Household, the second Inclusionary Unit by a Low-Income Household, etc.

(9) Any other information reasonably requested by the Town to assist with evaluation of the Plan under the standards of this Chapter.

(d) Inclusionary Housing Agreement. The forms of the Inclusionary Housing Agreement, resale and rental restrictions, deeds of trust, rights of first refusal 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, must be approved by the City Manager or his or her designee prior to being executed with respect to any Residential Development or Affordable Housing Proposals. The form of the Inclusionary Housing Agreement will vary, depending on the manner in which the provisions of this Chapter are satisfied for a particular development. All Inclusionary Housing Agreements must include, at minimum, the following:

(1) Description of the development, including whether the Inclusionary Units will be rented or owner-occupied;

(2) The number, size and location of Very Low-, Low- or Moderate-Income Units;

(3) Inclusionary incentives by the Town (if any), including the nature and amount of any local public funding;

(4) Provisions and/or documents for resale restrictions, deeds of trust, rights of first refusal or rental restrictions;

(5) Provisions for monitoring the ongoing affordability of the units, and the process for qualifying prospective resident Households for income eligibility; and any additional obligations relevant to the compliance with this Chapter.

(e) Recording of Agreement. Inclusionary Housing Agreements that are acceptable to the City Manager must be recorded against owner-occupied Inclusionary Units and Residential development projects that choose to restrict certain units pursuant to the requirements of Government Code Section 65915(b)(1)(A)-(D). Additional rental or resale restrictions, deeds of trust, rights of first refusal and/or other documents acceptable to the City Manager must also be recorded against owner-occupied Inclusionary Units. In cases where the requirements of this Chapter are satisfied through the development of Off-Site Units, the Inclusionary Housing Agreement must simultaneously be recorded against the property where the Off-Site Units are to be developed.

(g) Annual Monitoring and Transfer Fees.

(1) For each rental unit restricted pursuant to the requirements of Government Code Section 65915(b)(1)(A)-(D), the then current owner may be required to pay an

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annual monitoring fee for the term of required affordability. Such fee shall be specified in the regulatory agreement(s) required hereunder.

(2) For each owner-occupied inclusionary unit provided under this section, the then current owner may be required to pay a transfer fee for any change of ownership during the term of required affordability. Such fee shall be specified in the Inclusionary Housing Agreement required hereunder.

(h) Requirements for Certificate of Occupancy/Final Inspection.

(1) No temporary or permanent certificate of occupancy shall be issued or final inspection approval for any dwelling unit in an R-residential development project until the developer has satisfactorily completed the requirements hereunder, i.e., on-site construction of affordable units, alternative equivalent action(s), or payment of the housing in-lieu fee.

(2) No temporary or permanent certificate of occupancy shall be issued or final inspection approved for a dwelling unit described as exempt from the requirements of this Subchapter in section 5.03.201 above until the developer has made a showing acceptable to the City Manager that such an exemption is appropriate.

[History: ORD. 639, 1/11/06; Ord 738, 1/14/15; Ord 764, 9/28/16]