Chapter 17.102 — INCLUSIONARY HOUSING

modified

The provisions of this chapter establish standards and procedures that encourage the development of housing affordable to a range of households with varying income levels dispersed throughout the city. The purpose of this chapter is to encourage the development and availability of such housing by ensuring that the addition of affordable housing units to the city's housing stock is in proportion with the overall increase in new housing units and to ensure the long-term affordability of such housing for eligible households.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

The requirements of this chapter shall apply to new housing development projects consisting of ten (10) or more dwelling units, both rental and for-sale, unless otherwise exempt by Section 17.102.030. If a housing development project consists of nine (9) or fewer units, the applicant may voluntarily elect to construct affordable units on-site and may be eligible to request the incentives listed in Section 17.102.060 of this chapter, provided that the proposed project complies with Section 17.102.050 of this chapter.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

The requirements of this chapter shall not apply to the following housing development projects:

A.

Projects consisting of nine (9) or fewer units.

B.

Projects located in a One-family Dwelling (R-1A, R-1B and R-1C) Zoning District.

C.

Projects where entitlement permits (e.g. design review, minor design review, etc.) have been approved or deemed complete prior to the effective date of this chapter and where a building permit to construct the units issued within one year of entitlement approval or one year of the effective date of this chapter, whichever occurs later.

D.

Projects where the city enters into a development agreement pursuant to Chapter 17.129 (Development Agreements) of this title, that expressly exempts the requirements of this chapter.

E.

Projects exempt by state law.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

A.

Inclusionary Unit Requirements. A housing development project subject to the requirements of this chapter shall provide and designate a minimum of fifteen (15) percent of the total number of units as inclusionary units that may include ownership or rental units and must be made available at an affordable cost to eligible households. Table 17.102-1 prescribes the minimum percentage of on-site inclusionary units required for a project:

Table 17.102-1—Inclusionary Unit Requirements

Notes:

33 For purposes of calculating the number of inclusionary units required, any additional dwelling units authorized as a density bonus under Chapter 17.100 (Density Bonus Provisions) of this title or State Density Bonus Law shall not be counted in determining the required number of inclusionary units.

B.

Alternative Compliance. The applicant may elect to satisfy the inclusionary housing requirement for the project prescribed in subsection A. above, in whole or in part, through implementing one or more alternative means of compliance, as follows:

1.

In-lieu Fee. Payment of an in-lieu fee rather than constructing all or some of the inclusionary units, subject to the following:

a.

The amount of the in-lieu fee shall be calculated in accordance with the fee schedule established by resolution by the City Council;

b.

One-half of the in-lieu fee shall be paid prior to the issuance of the first building permit for the project. The remaining one-half of the fee shall be paid prior to the issuance of the first Certificate of Occupancy; and

c.

The fees collected shall be deposited in the city's Inclusionary Housing Trust Fund and shall be used in accordance with subsection 17.102.070.B. of this chapter.

2.

Off-site Construction. The applicant may construct all or some of the required number of inclusionary units for the project on another property subject to the following:

a.

The newly built off-site units shall be on a property located within the city;

b.

The square footage, number of bedrooms and affordability covenants of the off-site units shall comply with the equivalent on-site requirements for the project;

c.

The off-site location shall be approved by the appropriate review authority;

d.

Building design, quality, and maintenance standards shall be of good quality and consistent with contemporary standards for new housing, such as those applied by the Low Income Housing Tax Credit program; and

e.

Construction of the off-site units will be completed prior to or concurrently with the project.

3.

Off-site Rehabilitation. The applicant may substantially rehabilitate off-site existing units on another property in lieu of constructing all or some of the required number of inclusionary units for the project, subject to the following:

a.

The rehabilitated off-site units shall be on a property located within the city;

b.

The square footage, number of bedrooms and affordability covenants of the rehabilitated units shall comply with the equivalent on-site requirements for the project;

c.

For purposes of this subsection, the minimum threshold for substantial rehabilitation may include, but not be limited to, corrections of code violations, Title 24 upgrades, seismic rehabilitation and accessibility upgrades;

d.

The minimum cost threshold shall be calculated using the fee schedule established by resolution by the City Council; and

e.

The substantial rehabilitation of the existing units to be converted to inclusionary units will be completed prior to or concurrently with the project.

Land Dedication. Convey land to the city, for all or some of the units, at the discretion of the City Council for future development of affordable housing, subject to the following:

a.

The land shall be conveyed to the city at no cost;

b.

The dedicated land is located in the city and is appropriately zoned at a density sufficient to accommodate the number of affordable units that would have been required on-site for the project;

c.

The dedicated land is improved with infrastructure and utilities required to adequately serve the property;

d.

Evidence shall be provided upon submittal of a proposal for land dedication demonstrating that: (i) the developer has control of the land to be dedicated; (ii) the land is free of any liens, encumbrances or easements that adversely impact title; and (iii) the land does not contain any hazardous substance. The developer shall disclose any hazardous substance previously remediated on the site and evidence that cleanup was performed in accordance with applicable law;

e.

Payment in full of all property taxes and special taxes shall be made when the proposal for land dedication is submitted, and again prior to conveyance of the land to the city; and

f.

The Planning Commission may recommend the City Council approve, approve with conditions or deny the land dedication. The City Council shall be the final review authority.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

A.

Location, Size and Design of Units. All inclusionary units in a project shall be:

1.

Reasonably dispersed throughout the project and not be overly concentrated in one area;

2.

Comparable to the market-rate units in square footage and number of bedrooms; and

Comparable to the market rate units in terms of the base design, appearance, materials and finished quality. The inclusionary units should be indistinguishable from the market rate units in terms of exterior appearance and quality of construction.

B.

Access to Amenities. Residents of inclusionary units shall have the same rights and access to common amenities in the development, as residents of market-rate units.

C.

Timing of Construction. All inclusionary units in a project shall be constructed prior to or concurrently with the construction of the market rate units. In a phased project, a proportionate number of inclusionary units to market-rate units as required by this chapter shall be constructed during each phase of the project.

D.

Period of Affordability. The applicant shall designate and offer inclusionary units to eligible income level households as follows:

1.

Rental Inclusionary Units.

a.

Units shall remain reserved for the eligible income level households at the applicable affordable housing costs in perpetuity.

b.

The applicant shall designate and offer rental inclusionary units to eligible income level households based on the inclusionary housing plan.

c.

Changes in Tenant Income.

i.

If the income of a tenant of eligible very lower-income rental inclusionary unit changes to exceed the very-low income limit, but not the lower-income limit: (a) The applicant may allow the tenant to remain in the original unit at the affordable rent for lowerincome households, provided the next vacant rental unit shall be redesignated as an inclusionary rental unit for eligible very lowincome households; or (b) The tenant shall be given a one year notice to vacate the unit. If during the year, an inclusionary unit affordable to lower-income households become available, the applicant shall allow the tenant to submit an application for that unit.

ii.

If the income of a tenant of eligible lower-income rental inclusionary unit changes to exceed the income limits for that unit: (a) The applicant may raise the tenant's rent to market rate and allow the tenant to remain in the original unit, provided another unit in the development is redesignated as an inclusionary rental unit affordable to eligible very low- or lower income households within one year; or (b) If the applicant does not want to redesignate another unit as an inclusionary rental unit, the tenant shall be given a one year notice to vacate the unit.

d.

Annual Report. The applicant shall submit an annual report summarizing the occupancy of each rental inclusionary unit for the year and demonstrating the continued income-eligibility of the tenant. The city may require additional information if deemed necessary.

2.

For-Sale Inclusionary Units.

a.

Units shall remain reserved for the eligible income level households at the applicable affordable housing costs for a minimum of fifty-five (55) years.

b.

The applicant shall designate and offer for-sale inclusionary units to eligible income level households based on the inclusionary housing plan.

c.

Transfer of Title. Upon the death of an owner of an ownership inclusionary unit, title in the inclusionary unit may transfer to the surviving joint owner without respect to the income-eligibility of the household. Upon the death of a sole owner or all owners, and inheritance of the inclusionary unit by a non-income-eligible child or stepchild of one or more owners, there will be a one-year compassion period between the time when the estate is settled and the time when the inclusionary unit must be sold to an eligible household. Inheritance of an inclusionary unit by any other person whose household is not income-eligible shall require resale of the inclusionary unit to an eligible household as soon as is feasible but not more than one hundred eighty (180) days from when the estate is settled.

d.

Owner Occupancy Requirements.

i.

Owners of inclusionary units shall use and occupy the inclusionary unit as the owner's principal residence for at least ten (10) months out of any twelve-month period, or as determined appropriate by the Community Development Director.

ii.

Owners shall not lease or rent any part of the inclusionary unit unless the city has given its prior written consent to such lease or rental on the basis of a demonstrated hardship by the owner.

e.

The city may require owners of inclusionary units to provide an annual report with information demonstrating the continued income-eligibility of the owner. The city may require additional information if deemed necessary.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

An inclusionary housing plan and an affordable housing agreement shall be required for a housing development project subject to this chapter prior to approval as follows:

A.

Inclusionary Housing Plan.

The inclusionary housing plan shall include the following:

a.

A brief description of the project including the total number of proposed units and the proposed number and income levels of the inclusionary units;

b.

A table identifying unit sizes, bedrooms counts and whether the units will be rental, for-sale, or a combination;

c.

Site plan identifying the inclusionary units, resident and guest parking areas and common open space areas;

d.

If the project will include phases, a project phasing plan demonstrating the timely development of the inclusionary units;

e.

A description of any requested incentives, as listed in Section 17.102.060 of this chapter; and

f.

Additional information deemed necessary by the Planning Division to evaluate compliance with the requirements of this chapter.

2.

Review and Approval of an Inclusionary Housing Plan.

a.

The inclusionary housing plan shall be submitted at the same time as the project application is submitted; and

b.

The inclusionary housing plan must be deemed complete and approved by the Review Authority prior to or at the same time as the entitlement permits (e.g. design review, minor design review, etc.) are approved.

3.

Alternative Compliance. An inclusionary housing plan shall not be required if the applicant elects to comply by an alternative method as set forth in Section 17.102.040.B. of this chapter. If the applicant elects to pay an in-lieu fee, the applicant shall submit a statement certifying said election. If the applicant elects to comply through off-site construction, off-site rehabilitation or land donation, the applicant shall submit information necessary to confirm compliance and a statement certifying the elected method of compliance.

B.

Inclusionary Housing Agreement.

1.

The applicant shall enter into an inclusionary housing agreement with the city. The contents of the agreement shall be established by the City Attorney and will vary, depending on the manner in which the provisions of this chapter are satisfied. At minimum, the agreement shall guarantee the continued affordability of all the inclusionary units as required by Section 65915 of the California Government Code. The agreement shall run with the land and recorded in the Los Angeles County Recorder's Office.

2.

An inclusionary housing agreement shall be recorded prior to the issuance of the first certificate of occupancy.

An inclusionary housing agreement shall not be required when the applicant elects to fully comply with this chapter by paying an in-lieu fee and/or through land donation.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

When all or some of the inclusionary units are proposed to be constructed on-site, the applicant may request one or more of the following incentives:

A.

Impact Fee Reductions. Table 17.102-2 outlines the maximum percentage the Review Authority may reduce impact fees for the inclusionary units:

Table 17.102-2—Impact Fee Reductions

B.

Design Flexibility. The Review Authority may modify the following development standards[4 [3]] :

1.

Reduce yard setbacks, with exception to the front yard any street side yard; however, in no event shall any yard setback be less than five (5) feet;

2.

Reduce upper floor building setbacks, provided the elevations have step backs and/or projections every twenty (20) feet.

3.

Reduce building separation requirements; however, in no event shall a separation be less than five (5) feet;

4.

Reduce private open space dimensions; however, in no event shall a dimension be less than four (4) feet; and

5.

Adjust the open space allocation between private open space and common open space.

C.

Floor Area Bonus. For projects with less than ten (10) units, a floor area ratio (FAR) bonus of 0.10 as outlined in Section 17.24.050.C. (Multiple-family Dwelling Zoning Districts—Floor Area Ratio (FAR) Bonus) of this title.

D.

Parking Reductions. For the inclusionary units as permitted for affordable housing projects in Table 17.70-4 of Chapter 17.70 (Parking Regulations) of this title.

E.

Density Bonus. Pursuant to Chapter 17.100 (Density Bonus Provisions) of this title. The project may also be eligible for special concessions, incentives, waivers and parking reductions.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

Footnotes:

--- ( 3 ) ---

Note— This subsection shall not apply to projects utilizing a density bonus pursuant to Chapter 17.100 of this title. Rather, the applicant shall request concessions or incentives, as outlined in Section 17.100.070 of this title.

modified

A.

Establishment. The city shall establish an inclusionary housing trust fund. All in-lieu fees shall be deposited into the inclusionary housing trust fund.

B.

Usage of Funds. Inclusionary housing trust fund moneys may be used for the following:

1.

Development and preservation of affordable housing;

2.

Providing financial assistance to applicants constructing new affordable units or rehabilitating existing housing units to be restricted as affordable units;

3.

Acquisition of properties necessary to maintain affordable housing;

4.

Purchase of affordability covenants on existing market rate housing;

5.

Lengthening the term of existing deed restrictions or affordability covenants on currently restricted affordable housing;

6.

Supportive housing and transitional housing for formerly homeless persons; and

7.

Administrative costs associated with implementing this chapter not to exceed ten (10) percent of the fees collected.

8.

A maximum amount of the inclusionary housing trust fund that the city can allocate to a housing project shall be established by resolution by the City Council.

C.

Administration of Funds. The Finance Director shall administer the inclusionary housing trust fund. An annual report of the inclusionary housing trust fund's revenues and expenditures shall be prepared and made available to the public.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

A.

Forfeiture of Funds. Any individual who sells or rents an inclusionary unit in violation of this chapter shall be required to forfeit all money so obtained. Recovered funds shall be deposited into the inclusionary housing trust fund.

B.

Legal Actions. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including:

1.

To disapprove, revoke, or suspend any permit, including a building permit, certificate of occupancy or discretionary approval; and

2.

For injunctive relief or damages.

C.

Recovery of Costs. In any action to enforce this chapter, or an inclusionary housing agreement recorded hereunder, the city shall be entitled to recover City Attorney's fees and costs.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

A.

Modifying or Waiving Requirements. The requirements of this chapter may be modified or waived if the applicant demonstrates to the Community Development Director that applying these requirements, considered together with any variances, or regulatory concessions or incentives that may be applied to the proposed development, would take property in violation of the United States or California Constitutions.

B.

Burden of Proof. The applicant has the burden of providing economic information and other evidence necessary to establish that application of the provisions of this chapter to the project would constitute a taking of the property of the proposed project without just compensation.

C.

Adjustments and Waivers. Any adjustments or waivers may only modify the inclusionary housing requirement to the extent necessary to avoid an unconstitutional result. If the Community Development Director determines no violation of the United States or California Constitutions would occur through application of this chapter, the requirements of this chapter shall remain applicable.

D.

Applications and Decisions.

1.

The Community Development Director shall review the application and issue a written decision.

2.

In making a determination on the requested adjustment or waiver, the decision-maker shall consider each of the following:

a.

Application of the inclusionary housing requirement to the housing development project;

b.

Application of any applicable inclusionary or density bonus concessions or incentives;

c.

Utilization of the most cost-efficient product type for the inclusionary units; and

d.

The potential for external funding, including, but not limited to, governmental grants, loans, or subsidies of any nature where reasonably likely to occur.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)

modified

Community Development Director decisions regarding this chapter are appealable to the Planning Commission and ultimately, the City Council. Other appeals depend on the required project applications and Review Authority. Refer to Section 17.10.100 (General Regulations—Ability to Appeal) of this title for additional information.

(Ord. No. 3053, § 3(Exh. A), 5-14-2025)