Corte Madera Municipal Code Ch. 3.48 Affordable Housing Fund

The purpose of this chapter is to establish a feasible means by which developers of nonresidential development projects can assist in increasing the supply of affordable housing in close proximity to where new employees to their projects work. The impact fees contained in this chapter have been calculated to have a rational relationship between the amount of housing needed as a result of developing various businesses and the amount of subsidy needed to make the development of affordable housing feasible. This impact fee shall be deposited into an affordable housing fund and used by the town as described in this chapter.

(Ord. 859 § 1 (part), 2001; Ord. No. 1020, § 5, 6-7-2022)

(a) Commercial and industrial developments in Corte Madera, such as office, retail, research, development, industrial, and warehouse uses, hereinafter all referred to as "nonresidential developments" have been and continue to be a major factor in attracting new employees to the area. Some of these employees will seek to reside in the town. These new employees and their families create a need for additional housing in the town.

(b) The availability of housing in Corte Madera is limited, with an over all vacancy rate among all housing units of only 3.75 percent. The availability of affordable housing is even more scarce, with an October 2000 survey of major apartment buildings throughout town showing a vacancy rate of only 1.6 percent—i.e. only five apartments were vacant of the three hundred eight total number of apartments surveyed. Multiple household properties tend to offer the most affordable rental rates.

(c) Corte Madera currently has significantly more jobs than housing units in the town, with five thousand eight hundred ten jobs and three thousand six hundred seventy housing units. There are also more jobs in Corte Madera than the four thousand six hundred employed residents. New nonresidential development that creates additional jobs will create the need for additional housing to accommodate the new workers.

(d) The Association of Bay Area Governments has determined that twenty-six percent of the projected growth in jobs in Corte Madera over the next five years will have incomes less than eighty percent of the area's median income. Many of these new workers will require affordable housing—that is, housing costs that do not total more than thirty percent of the household income. Lack of affordable housing for new employees in Corte Madera will force many new employees to commute considerable distances, adding to the air pollution and traffic problems in the general area.

(e) Sponsors of nonresidential developments that contribute to the shortage of affordable housing should be required to contribute to programs that increase the town's affordable housing stock. Corte Madera has caused to be prepared a study that examines the connection between nonresidential development and housing needs. The report concluded that a clear nexus can be established between the number of jobs generated by various work place types and the number of future employees filling those jobs needing below market rate housing.

(f) A study of "Non-Residential Development and Housing Needs," prepared for the town in November 2000 and reviewed by this town council when considering this chapter, concluded that a clear nexus can be established between the development of commercial, industrial, and other job generating uses and the need for housing the workers at these new developments.

(g) That study examined the number of employees that can be expected to occupy a prototype building, using ten different business types and associated densities of employees, and developed a projected number of housing units needed to accommodate such businesses. The model was based on a one hundred thousand square foot building, and from that an appropriate cost per square foot of new nonresidential development was calculated. The nonresidential development impact fees are as follows:

(h) State law requires that the town determine how there is a reasonable relationship between the type of development projects on which a fee is imposed and the fee's use. Also, the town shall determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility (in this case, affordable housing) attributable to the development on which the fee is imposed. These relationships have been established by the above referenced study and staff and consultant reports received by the town as part of the adoption of the ordinance codified in this chapter, all of which are incorporated by this reference.

(Ord. 859 § 1 (part), 2001)

(a) An affordable housing fund is established. The money in said fund and interest derived from the fund shall be segregated from other town funds. The funds in the affordable housing fund, along with any interest earnings accumulated thereon, shall be used solely to expand the supply of housing affordable to very low-, low- and moderate-income households, including, but not limited to, the following:

(1) Construction of housing affordable to households of very low, low- and moderate-income households, including costs associated with planning, administration and design;

(2) Acquisition of property and property rights, including acquisition of existing housing units and the provision of long-term affordability covenants on those units;

(3) Financial assistance to other governmental entities, non-profit organizations, or private individuals in the acquisition of property or construction of housing affordable to households of very low-, low- and moderate-incomes;

(4) Costs of program development and ongoing administration of the housing fund program;

(b) The affordable fund shall be administered by the planning director, who shall have the authority to manage the fund consistent with this chapter, and to prescribe procedures for said purpose, subject to town council approval.

(c) Very low- low- and moderate-income housing developed wholly or in part with expenditures from the affordable housing fund shall be required to maintain the affordability of such housing for a period of at least ninety-nine years;

(d) Expenditures from the housing in-lieu fee fund shall be authorized solely by the town council and controlled and paid in accordance with general town budgetary policies.

(Ord. 859 § 1 (part), 2001; Ord. No. 1020, § 5, 6-7-2022)

The planning director and/or finance director shall report annually to the town council on the status of activities undertaken with the affordable housing fund. The report shall include a statement of income, expenses, disbursements, and all uses of the fund. The report shall recommend any changes to this chapter necessary to carry out its purposes, including any adjustments necessary to the fee. The town council shall review and make necessary adjustments in the fee schedule listed in Section 3.48.020(g) as appropriate.

(2) For purposes of this Section 3.48.040, "development" shall have the same meaning as specified in Section 18.04.190.

(Ord. 859 § 1 (part), 2001; Ord. No. 1020, § 5, 6-7-2022)