Chapter 17.31 — AFFORDABLE HOUSING REQUIREMENTS

The purpose of this chapter is to:

• A. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within city as mandated by California Government Code Section 65580, State Density Bonus Law, and the city's housing element, et seq.;

• B. Offset the demand on housing created by new development, and mitigate environmental and other impacts that accompany new development by protecting the economic diversity of the city's housing stock, reducing traffic, transit and related air quality impacts, promoting jobs/housing balance and reducing the demands placed on transportation infrastructure in the region;

• C. Implement the policies of the housing element of the general plan. (A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

• A. Inclusionary Requirement. Each residential development shall be designed and constructed to provide at least fifteen percent of the total units as inclusionary units restricted for occupancy by moderate-, low- or very low-income households. The number of inclusionary units required for a particular project will be determined only once, at the time of tentative or parcel map approval, or, for developments not processing a map, prior to issuance of a building permit typically as a component of discretionary review and approval. If a change in the project design changes the total number of units, the number of inclusionary units required will be recalculated to coincide with the final approved project.

  1. Calculation. For purposes of calculating the number of affordable units required by this section, any additional units authorized as a density bonus in compliance with state density bonus law and/or Chapter 17.32 (Density Bonuses) will not be counted in determining the required number of inclusionary 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 be rounded up to the nearest whole number. The remaining portion of a fraction rounded down will offset its impacts through the payment of the in-lieu fee for the remaining portion of the unit.

  2. Limitations on Occupancy. Projects constructing affordable housing units shall seek to distribute portions of the below market rate units across income levels, at a ratio based on the city's unmet Regional Housing Needs Allocation (RHNA).

• B. Minimum Requirements. The requirements of this chapter are minimum and maximum requirements, although nothing in this chapter limits the ability of state density bonus law or a person to waive their rights or voluntarily undertake greater obligations than those imposed by this chapter.

• (A (part), 2004; Ord. 766 § 2 Exh; Ord. 854 § 2 (part), 2015; Ord. 930 § 5, 2024)

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City of Cotati, CA

COTATI CODE

§ 17.31.030

§ 17.31.050

The requirements of this chapter do not apply to:

• A. The reconstruction of a structure that has been destroyed by fire, flood, earthquake or other act of nature; provided, that reconstruction does not increase the number of residential units;

• B. A development that already has more units that qualify as affordable to moderate-, lowand very low-income households than this chapter requires;

• C. Housing constructed by other government agencies; or

• D. An accessory dwelling unit.

• (A (part), 2004; Ord. 766 § 2 Exh; Ord. 893 § 7, 2020; Ord. 930 § 5, 2024)

Each inclusionary unit built in compliance with this chapter shall comply with the following standards:

• A. Location of Inclusionary Units. Except as otherwise provided in this chapter, inclusionary units shall be dispersed throughout a residential development.

• B. Design. Inclusionary units shall be comparable in infrastructure (including sewer, water and other utilities), construction quality and exterior design to the market-rate units. Inclusionary units may be smaller in aggregate size and have different interior finishes and features than market-rate units so long as the interior features are durable, of good quality and consistent with contemporary standards for new housing. The number of bedrooms shall be the same as those in the market-rate units, except that if the market-rate units provide more than four bedrooms, the inclusionary units need not provide more than four bedrooms.

• C. Timing of Construction. All inclusionary units shall be constructed and occupied concurrently with or prior to the construction and occupancy of market-rate units or development. In phased developments, inclusionary units may be constructed and occupied in proportion to the number of units in each phase of the residential development; provided, that the last inclusionary unit in the project shall be constructed before the last market-rate unit.

• D. Duration of Affordability Requirement. Inclusionary units produced in compliance with this chapter shall be legally restricted to occupancy by households of the income levels for which the units were designated, for a minimum of fifty-five years from the date of first occupancy for rental units, and for a minimum of fifty-five years from the date of each sale of any affordable unit for owner-occupied units. (Additional affordability requirements may apply in compliance with state redevelopment and/or density bonus law (California Health and Safety Code Section 33413(c)).

• (A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

A residential development of nine or fewer units may comply with the requirements of this chapter by paying an in-lieu fee as established by council resolution, as it may be amended

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City of Cotati, CA

LAND USE

§ 17.31.050

§ 17.31.070

from time to time. Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Development Impact Fee Inflationary Adjustments) of this code.

(Ord. 766 § 2 Exh. A (part), 2004; Ord. 930 § 5, 2024; Ord. 936, 9/9/2025)

• A. Developer Proposal. A developer may propose an alternative means of compliance in an affordable housing plan as provided in Section 17.31.070(B) as follows:

  1. Off-Site Construction. Units may be constructed off site if the inclusionary units will be located in an area where, based on the availability of affordable housing, the council finds that the need for such units is greater than the need in the area of the proposed development.

  2. Land Dedication. In lieu of building inclusionary units, a developer may choose to dedicate land to the city suitable for the construction of inclusionary units that the council reasonably determines to be of equivalent or greater value than are produced by applying the inclusionary obligation.

  3. Combination. The council may accept any combination of on-site construction, offsite construction, in-lieu fees and land dedication that at least equals the cost of providing inclusionary units on site as would otherwise be required by this chapter. The value of a proposed land dedication shall be determined by an appraiser appointed by the city.

• B. Discretion. The council may approve, conditionally approve, or reject any alternative proposed by a developer as part of an affordable housing plan. Any approval or conditional approval shall be based on a finding that the purposes of this chapter would be better served by implementation of the proposed alternatives. In determining whether the purposes of this chapter would be better served under the proposed alternative, the council should consider:

  1. Whether implementation of an alternative would overly concentrate inclusionary units within any specific area and, if so, must reject the alternative unless the undesirable concentration of inclusionary units is offset by other identified benefits that flow from implementation of the alternative in issue; and

2. The extent to which other factors affect the feasibility of prompt construction of the inclusionary units on the property, such as costs and delays, the need for an appraisal, site design, zoning, infrastructure, clear title, grading and environmental review.

(A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

• A. General. Approval of an inclusionary housing plan and implementation of a city-approved inclusionary housing agreement is a condition of any tentative map, parcel map, discretionary approval or building permit for any development to which this chapter applies. This section does not apply to an exempt project, or to a project where the requirements of the chapter are satisfied by payment of a fee in compliance with Section 17.31.050 (In-lieu fees).

• B. Inclusionary Housing Plan. No application for a tentative map, parcel map, discretionary

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City of Cotati, CA § 17.31.070

COTATI CODE

§ 17.31.080

approval or building permit to which this chapter applies is complete until an inclusionary housing plan is submitted with the application. At any time during the review process, the city 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 state density bonus law and/or this chapter. The inclusionary housing plan must include:

1. The location, structure (attached, semi-attached, or detached), whether for sale or rental, size of the proposed market-rate and inclusionary units, and the basis for calculating the number of inclusionary units;

2. A floor or site plan showing the location of the inclusionary units;

3. The income levels to which each inclusionary unit will be made affordable;

4. 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 as required by Section 17.31.040(C);

5. Any alternative means designated in Section 17.31.060(A) proposed for the development along with information necessary to support the findings required by Section 17.31.060(B) for approval of the alternatives; and

6. Any other information reasonably requested by the city to assist with evaluation of the plan in compliance with the standards of this chapter.

• C. Inclusionary Housing Agreement. The inclusionary housing agreement shall use the form provided by the city. The contents of the agreement may vary depending on the manner in which the provisions of this chapter are satisfied for a particular development. Each inclusionary housing agreement shall 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. Provisions and/or documents for resale restrictions, deeds of trust, rights of first refusal or rental restrictions;

  4. Provisions for monitoring the ongoing affordability of the units, and the process for qualifying prospective resident households for income eligibility; and

  5. Any additional obligations relevant to compliance with this chapter.

• D. Recording of Agreement. Each inclusionary housing agreement shall be recorded against owner-occupied inclusionary units and residential projects containing rental inclusionary units, as applicable. Additional rental or resale restrictions, deeds of trust, rights of first refusal and/or other documents acceptable to the city shall also be recorded against owneroccupied inclusionary units. In cases where the requirements of this chapter are satisfied through the development of off-site units, the inclusionary housing agreement shall simultaneously be recorded against the property where the off-site units are to be developed.

(A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

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City of Cotati, CA § 17.31.080

LAND USE

§ 17.31.090

• A. General Eligibility. No household may occupy an inclusionary unit unless the city or its designee has approved the household's eligibility, or has failed to make a determination of eligibility within the time or other limits provided by an inclusionary housing agreement or resale restriction. If the city or its designee maintains a list or identifies eligible households, initial and subsequent occupants will be selected first from the list of identified households, to the maximum extent possible, in compliance with any rules approved by the city, including the city's local preference policy.

• B. Occupancy. A household who occupies a rental inclusionary unit or purchases an inclusionary unit shall occupy the unit as a principal residence.

• C. Local Preference. Pursuant to California Government Code Section 7061 and Housing Element Program 4-1, and assuming all other factors being equal, priority for available below market rate housing units shall be extended to people that:

  1. Currently live or work in the city of Cotati;

  2. Have children who attend a school within the Rancho Cotati School District;

  3. Are members of a local Native American Tribe, including the Federated Indians of Graton Rancheria (FIGR); or

  4. Are an employee of Sonoma State University; over other persons to rent or purchase deed-restricted affordable housing units, in the order of priority with which the categories are listed.

(A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

• A. Initial Sales Price. The initial sales price of the inclusionary unit must be set so that the eligible household will pay an affordable ownership cost.

• B. Transfer. Renewed restrictions will be entered into on each change of ownership, with a fifty-five year renewal term, upon transfer of an owner-occupied inclusionary unit prior to the expiration of the previous affordability period.

• C. Resale. The maximum sales price permitted on resale of an inclusionary unit designated for owner-occupancy shall be the initial purchase price, increased by the rate of increase of area median income (of the appropriate income category) during the seller's ownership.

To the extent authorized in any resale restrictions or operative inclusionary housing agreement, sellers may recover at time of sale the market value of capital improvements made by the seller and the seller's necessary and usual costs of sale, and may authorize an increase in the maximum allowable sales price to achieve such recovery.

• D. Change in Title. The following requirements apply in the event of a change in circumstance, including death, marriage, and divorce, that may occur prior to the expiration of the required affordability period:

  1. Upon the death of one of the owners, title in the property may transfer to the surviving joint tenant, tenant in common, or community property holder, without respect to the

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City of Cotati, CA § 17.31.090

COTATI CODE

§ 17.31.100

income eligibility of the household.

2. Upon the death of a sole owner or all owners, and inheritance of the inclusionary unit by a non-income-eligible inheritee, there will be a one-year compassion period between the time when the estate is settled and the time when the property must be sold to an income-eligible household. A noneligible inheritee may request and the council may waive this requirement on the basis of hardships specified by the council. Alternatively, the council may authorize their continued ownership with the unit rented at an affordable rate to an eligible household for the remainder of the affordability restriction period.

• (A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

• A. Eligibility of Tenants. The owner of rental inclusionary units shall be responsible for certifying the income of the tenant to the director at the time of initial rental, and annually thereafter. This shall be completed by viewing acceptable documentation, including income tax statements or a W-2 for the previous calendar year, and submitting, on a form approved by the city, a certification that the tenant qualifies as an income-eligible household.

• B. Selection of Tenants. The owner of rental inclusionary units shall fill vacant units by either:

  1. Selecting income-eligible households themselves, as long as the owner complies with the publication requirements in subsection C of this section;

  2. Selecting income-eligible households from the city's Section 8 Housing Choice Voucher Waiting List available from the department.

• C. Publication of Availability of Units. Whenever an inclusionary unit becomes available, the owner shall publish notices of the availability of inclusionary units via email to the city's "Housing Interest List"; and in newspapers circulated widely in the city, including newspapers that reach minority communities. The notice should briefly explain what inclusionary housing is, state the applicable income requirements, indicate where applications are available, state when the application period opens and closes, and provide a telephone number and email for questions. Applications may require the name, address, and telephone number of the applicant; the number of persons to occupy the household; household income; information regarding the city's local preference policy and any other information relevant to determine whether the applicant is eligible to occupy an inclusionary unit. The owner shall submit proof of publication to the director.

• D. Notification to City. Whenever an inclusionary unit becomes available, the owner shall immediately notify the director in writing.

• E. Subsequent Rental to Income-Eligible Tenant. The owner of rental inclusionary units shall apply the same rental terms and conditions to tenants of inclusionary units as are applied to all other tenants, except as otherwise required to comply with this chapter (i.e., rent levels, occupancy restrictions and income requirements) and/or government subsidy programs. Discrimination based on subsidies received by the prospective tenant is prohibited.

• F. Changes in Tenant Income. If after moving into an inclusionary unit the tenant's income eventually exceeds the income limit for that unit, the tenant may remain in the unit (the

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City of Cotati, CA

LAND USE

§ 17.31.100

§ 17.31.110

"original unit") as directed below:

1. If the tenant's income does not exceed the income limits of other inclusionary units in the residential development, the owner may, at the owner's option, allow the tenant to remain in the original unit at the tenant's new applicable affordable housing income category rental rate, as long as the next vacant unit is redesignated for the same lower income category applicable to the original unit. If the owner does not want to redesignate the next vacant unit, the tenant shall be given one year's notice to vacate the unit. If during the year, an inclusionary unit becomes available and the tenant meets the income eligibility for that unit, the owner shall provide the tenant with the opportunity to submit an application for that unit.

2. If there are no units designated for a higher income category within the residential development that may be substituted for the original unit, the tenant shall be given one year's notice to vacate the unit. If within that year, another unit in the residential development is vacated, the owner may, at the owner's option, allow the tenant to remain in the original unit and raise the tenant's rent to market rate and designate the newly vacated unit for the original unit at the applicable affordable housing cost. Unless the tenant's household situation has changed, the newly vacated unit must be comparable in size (i.e., number of bedrooms, bathrooms, square footage, etc.) and location (i.e., comparable floor, comparable view, etc.) as the original unit.

(A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

The requirements of this chapter may be adjusted or waived in extreme cases if the developer demonstrates to the council by the presentation of substantial evidence that applying the requirements of this chapter would take property in violation of the U.S. or California Constitutions and/or in keeping with the allowances of state and local density bonus law.

• A. Timing. To receive an adjustment or waiver, the developer must make a showing when applying for a first approval for the residential development, and/or as part of any appeal that the city provides as part of the process for the first approval.

• B. Considerations. In making a determination on an application to adjust or waive the requirements of this chapter, the council may assume each of the following when applicable:

  1. That the developer is subject to the inclusionary housing requirement or in-lieu fee;

  2. The extent to which the developer will benefit from inclusionary incentives and how density bonus law directs the approval of such allowances;

  3. That the developer will be obligated to provide the most economical inclusionary units feasible in terms of construction, design, location and tenure; and

  4. That the developer may obtain other housing subsidies where such funds are reasonably available.

• C. Decision and Further Appeal. The council, upon legal advice provided by or at the behest of the city attorney, will determine the application and issue a written decision.

• D. Modification of Plan. If the council, upon legal advice provided by or at the behest of the

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City of Cotati, CA § 17.31.110

COTATI CODE

§ 17.31.115

city attorney, determines that the application of the provisions of this chapter lacks a reasonable relationship between the impact of a proposed residential project and the requirements of this chapter, or that applying the requirement of this chapter would take property in violation of the U.S. or California Constitutions or density bonus law, the inclusionary housing plan shall be modified, adjusted or waived to reduce the obligations under this chapter to the extent necessary to avoid an unlawful result. If the council determines that no violation of the U.S. or California Constitutions would occur through application of this chapter, the requirements of this chapter remain applicable. (A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

• A. Applicability and Requirements. Unless otherwise exempt under subsection B of this section, any person who constructs new or expanded nonresidential development shall contribute to the city's affordable housing program through one or more of the following three methods:

  1. On-Site Construction of the Required Affordable Units. Provide the required affordable unit(s) on site, pursuant to subsection C of this section as allowed by the underlying zoning district (i.e., mixed use, live/work); or

  2. Payment of In-Lieu Fee. Pay a fee in lieu of the construction of the required affordable units pursuant to subsection E of this section; or

  3. Alternative Equivalent Actions. Perform an alternative equivalent action pursuant to Section 17.31.117, which may be allowed to fulfill the affordable housing requirements of this section if approved by the city council, at its sole discretion.

• B. Exempt Projects. The affordable housing requirements of this section shall not apply to the following exempt projects:

  1. Project with vested rights. A project that demonstrates a vested right to proceed without complying with this section;

  2. Public and nonprofit projects. Public projects and nonprofit projects which provide a public benefit to the community;

  3. Small projects and additions. Small projects and additions of less than two thousand square feet in total gross floor area;

  4. Floor area discount. The requirements of this section shall not apply to the first two thousand square feet of nonresidential floor area in all new developments;

  5. Structures destroyed by fire or natural catastrophe. Repair, reconstruction or replacement of a legal nonresidential structure that is destroyed by fire or natural catastrophe; provided, that a building permit for repair, reconstruction or replacement has been issued and construction begun within five years of destruction;

  6. Nonresidential replacements or remodels. Remodels or replacements to existing, legal structures that do not result in the creation of additional floor area;

  7. Projects that clearly do not contribute to the demand for affordable housing, such as unmanned utility structures and parking garages.

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City of Cotati, CA

LAND USE

§ 17.31.115

§ 17.31.115

• C. Number of Affordable Units Required. An affordable housing unit requirement is established for nonresidential development in accordance with the following Table 1:

==> picture [400 x 205] intentionally omitted <==

----- Start of picture text -----
Table 1
Number1 of Affordable Housing
Units Required per 1,000 Square Feet
Type of Nonresidential Development of Floor Area2
Industry, Manufacturing and Processing, .06
Wholesaling
Recreation, Education and Public Assembly .05
Retail Trade .09
Services – Business, Financial, Professional .05
Services – General .05
Transportation, Communications and .05
Infrastructure
----- End of picture text -----

Notes:

1 All fractional units shall be rounded up to the nearest whole number.

2 For purposes of this table, the floor area excludes all garage areas permanently allocated for employee or customer vehicle parking.

1. Level of Affordability Required. At least one-third of the total number of required affordable units shall be provided as affordable to very low-income households. The remaining affordable units may be provided as affordable to households with low incomes. If the number of required affordable units is an odd number, the number of units affordable to low-income households may be one greater than the number affordable to very low-income households, so long as at least one very low-income unit is provided.

2. Mixed Use and Live Work Projects. In any project including a mix of residential and nonresidential development, including but not limited to mixed use and live work projects, the required affordable units required pursuant to this chapter shall be calculated based upon the nonresidential square footage of the development and shall be required in addition to the inclusionary housing obligations for the residential portion of the development as required by Section 17.31.020.

• D. Fractional Units. If calculating the number of units required by this section results in a fractional unit requirement, the applicant may satisfy that fractional unit requirement by:

  1. Constructing an additional affordable unit; or

  2. Paying an in-lieu fee in compliance with subsection E of this section (Workforce Housing In-Lieu Fee); or

  3. Performing an alternative equivalent action approved by the city council in compliance with Section 17.31.117 (Alternative equivalent actions).

• E. Affordable Housing In-Lieu Fee. An applicant may choose to pay a fee in lieu of providing

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City of Cotati, CA § 17.31.115

COTATI CODE

§ 17.31.117

the affordable housing units required by this section.

1. Determination of Fee. The amount of the in-lieu fee shall be established by resolution of the city council. Inflationary adjustments shall be conducted in accordance with Chapter 4.20 (Development Impact Fee Inflationary Adjustments) of this code. The fee shall be periodically reviewed and updated as required to reflect changes in the funding gap for a low-income household.

2. Timing of Payment. The in-lieu fee shall be calculated at the time of building permit application. The fee shall be paid at the time of issuance of the building permit for each nonresidential project, unless proof is provided that the required affordable housing units will be constructed on site or that an alternative equivalent action was previously approved in accordance with Section 17.31.117. If the units are to be constructed on or off site, the affordable housing agreement shall specify the timing of construction of the affordable housing units and shall be recorded prior to issuance of any building permit for the project.

quired affordable housing units will be constructed on site or that an alternative equivalent action was previously approved in accordance with Section 17.31.117. If the units are to be constructed on or off site, the affordable housing agreement shall specify the timing of construction of the affordable housing units and shall be recorded prior to issuance of any building permit for the project.

3. In-Lieu Fee Fund. In-lieu fees collected pursuant to this section shall be deposited into the city's affordable housing fund and may be used for the purposes set forth in Section 17.31.120.

• (Ord. 782 § 4 Exh. A, 2006; Ord. 930 § 5, 2024; Ord. 936, 9/9/2025)

The city council may, at its sole discretion, approve an alternative equivalent action to the provision of the affordable units on site or payment of the in-lieu fee, as follows:

• A. Scope of Alternative Proposals. Proposals for an alternative equivalent action may include:

  1. The dedication of vacant land (see subsection (E) of this section, Standards for Land Dedications); or

  2. The construction of affordable rental or ownership units on another site within the city;

  3. Employer-based programs providing direct subsidy to qualified employees, including mortgage buy-downs or rental assistance that provides long-term affordability.

• B. Content of Proposal. A proposal for an equivalent alternative action shall show how the requested alternative action will further affordable housing opportunities in the city to an equal or greater extent than the actual provision of the affordable housing units on site in compliance with Section 17.31.115(C) (Number of Affordable Units Required), or payment of the in-lieu housing fee in compliance with Section 17.31.115(E) (Affordable Housing In-Lieu Fee).

• C. Review and Approval. Only the city council can approve an equivalent alternative action under this section. A proposal for an alternative equivalent action may be approved by the city council only if the council finds that the alternative action will further affordable housing opportunities in the city to an equal or greater extent than the construction of the required affordable units as part of the project or payment of the in-lieu housing fee.

• D. Performance of Alternative Action. After approval by the city council of a proposal for an alternative action, entitlements for that alternative action must be processed concurrent

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City of Cotati, CA

LAND USE

§ 17.31.117

§ 17.31.117

with the market-rate projects. If the alternative action includes construction of affordable units on another site or the acquisition and enforcement of rental/sales price restrictions on existing market rate units, an affordable housing agreement in the city's standard form as approved by the city attorney shall be recorded for each of those units prior to recordation of any final map for, or issuance of any building permit within, the market-rate project, and the affordable units shall be constructed or acquired concurrent with, or before, the construction of the market rate project.

• E.

• Standards for Land Dedications.

1. Offers of Dedication. An applicant who proposes to dedicate land located within city in lieu of constructing the affordable units required by this section shall offer such land dedication as a part of the initial application for project approval. The applicant's offer shall describe the site, shall offer it for dedication at no cost to the city, and shall include a site plan illustrating the feasibility of locating and constructing the number of required affordable units for which the applicant is requesting in-lieu credit.

2. Site Suitability and Appraisal.

• a. The applicant shall provide a site suitability analysis which demonstrates that the land proposed for dedication is suitable for the development of affordable housing in terms of size, location, general plan land use designation, zoning, availability of services, proximity to public transit, adjacent land uses, access to streets and walkways, physical characteristics and configuration, and other relevant planning criteria. Staff shall evaluate the site suitability analysis, identify the site's projected unit capacity, and recommend to the city council whether the site should be accepted or conditionally accepted. An environmental evaluation may be required as a part of the site suitability analysis.

  • b. The applicant shall provide an appraisal of the land proposed for dedication. The appraisal shall be prepared by a qualified land appraiser and shall conform to the "Uniform Standards of Professional Appraisal Practice" as adopted by the Appraisal Standards Board of the Appraisal Foundation.

  • c. All staff costs associated with the determination of site suitability, and all expenses incurred to determine legal status of site, to perform environmental assessments and to obtain an appraisal, shall be borne by the applicant.

3. Number of Units Credited to Dedication of Land. Following review of the appraisal and site suitability analysis, the city shall determine the number of required affordable housing units for which the applicant will receive credit upon dedication of the site.

   • a. The city will offer to credit the applicant for the land dedication only to the extent that the appraised value of the land to be dedicated equals the full development cost of providing the required affordable units, including both land costs and construction costs.

   • b. If the appraised value of the land is less than the total projected development cost for the number of affordable units required, the applicant will be credited with only the number of affordable units for which development costs are covered by the value of the land.

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City of Cotati, CA

COTATI CODE

§ 17.31.117

§ 17.31.130

  - c. The applicant shall agree to provide any remaining affordable units required by this section on the project site, or to pay an in-lieu fee for the remaining number of required units. 

4. Procedure for Acceptance of Site. The city shall not accept an offer of dedication nor approve the proposed nonresidential project until such time as the conditions of acceptance of the land, if any, have been completed by the applicant. The city's formal acceptance of the offer of dedication shall take place concurrently with its approval of the nonresidential project. The grant deed dedicating the site to the city, or to a developer of affordable housing approved by the city, shall be recorded prior to issuance of any building permit within the nonresidential project.

• (Ord. 930 § 5, 2024)

• A. Fund Established. There is established a separate affordable housing fund ("fund"). This fund shall receive all fees contributed under Sections 17.31.050 (In-lieu fees) and 17.31.060 (Alternatives), and may also receive moneys from other sources.

• B. Purpose and Limitations. Moneys deposited in the fund must be used to increase and improve the supply of housing affordable to moderate-, low-, and very low-income households in the city. Moneys may also be used to cover reasonable administrative or related expenses associated with the administration of this section.

• C. Administration. The fund shall be administered by the city manager with the approval of the council. The city manager may develop procedures to implement the purposes of the fund consistent with the requirements of this chapter and any adopted budget of the city.

• D. Expenditures. Fund moneys shall be used in compliance with the housing element, redevelopment plan, or subsequent plan adopted by the council to construct, rehabilitate or subsidize affordable housing or assist other governmental entities, private organizations or individuals to do so. Permissible uses include assistance to housing development corporations, equity participation loans, grants, pre-home ownership co-investment, predevelopment loan funds, low-income preservation programs, participation leases or other public-private partnership arrangements. The fund may be used for the benefit of both rental and owner-occupied housing.

• E. City Manager's Annual Report. The city manager shall report to the council and commission on the status of activities undertaken with the fund in compliance with California Government Code Section 66006(b). The report shall include a statement of income, expenses, disbursements and other uses of the fund. The report should also state the number and type of inclusionary units constructed or assisted during that year and the amount of assistance. The report will evaluate the efficiency of this chapter in mitigating city's shortage of affordable housing and recommend any changes to this chapter necessary to carry out its purposes, including any adjustments to the number of units to be required.

• (A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

• A. Penalty for Violation. It is a misdemeanor to violate any provision of this chapter. Without limiting the generality of the foregoing, it is also a misdemeanor for any person to sell or

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City of Cotati, CA

LAND USE

§ 17.31.130

§ 17.31.130

rent to another person an affordable unit under this chapter at a price or rent exceeding the maximum allowed under this chapter or to sell or rent an affordable unit to a household not qualified under this chapter. It is further 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. Legal Action. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including:

  1. Actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval;

  2. Actions to recover from any violator of this chapter civil fines, restitution to prevent unjust enrichment from a violation of this chapter, and/or enforcement costs, including attorney's fees;

  3. Eviction or foreclosure; and

4. Any other appropriate action for injunctive relief or damages. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any person, owner, household or other party from the requirements of this chapter.

(A (part), 2004; Ord. 766 § 2 Exh; Ord. 930 § 5, 2024)

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City of Cotati, CA