Article 6

Transportation Facilities Impact Fees

The City Council of the City of Hercules finds and declares that:

• (a) As a result of increasing regional growth, significant residential, commercial and industrial development is expected to occur within the City.

• (b) The general plan specifies the permitted uses of land within the City, places limits on the intensity and density of such use, and includes policies to improve the safety of roadway facilities and to provide for pedestrian and bicycle infrastructure. The City Council has examined the relationship between the land uses and densities permitted under the general plan and the rate and amount of actual development of property within the City. Based upon this examination, the City Council has identified trends in growth and development which enable the council to project, with substantial certainty, the magnitude and extent of future development based upon the City's general plan.

• (c) Based upon projected growth and development permitted under the general plan, a substantial amount of residential, commercial and industrial development will occur in the City before the City is fully built out.

• (d) New development in Hercules will increase the demand for all modes of travel (including walking, biking, transit, automobile and truck/goods movement), and thus will increase the need for improvement to transportation facilities, including but not limited to vehicular, transit, bicycle, and pedestrian infrastructure and improvements. This anticipated development cumulatively will generate a substantial increase over existing levels of vehicular traffic, and transit, bicycle and pedestrian travel. This increase in multi-modal travel will result in traffic volumes which exceed the capacity of the existing City-wide circulation system to provide acceptable levels of service and safe transportation facilities. New development within the City will thus create an additional burden on the existing transportation facilities.

• (e) If additional traffic-related as well as transit, bicycle, and pedestrian transportation facilities are not added as development occurs, the existing transportation facilities will not be adequate to serve the community consistent with the general plan. This could result in adverse impacts, such unacceptable levels of congestion on streets and at intersections, traffic accidents, air pollution, noise and restricted access for emergency vehicles. This would lead to a deterioration of the level of service for vehicles and deterioration of other transportation facilities, such as transit, bicycle and pedestrian facilities, which the residents, employees, and property owners in Hercules now enjoy.

• (f) To prevent these undesirable consequences, the capacity of the City-wide transportation facilities must be built at a rate which will accommodate the expected growth in the City.

• (g) Although the traffic volume generated by an individual development project may not be, in and of itself, sufficient to overload the existing City-wide transportation facilities, the cumulative impact of all new development, including development currently approved or submitted for approval, will result in unacceptable levels of traffic congestion.

• (h) It is the policy of the City that new development pay for the cost of improvements to the

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City of Hercules, CA

City-wide circulation system which are necessary to accommodate the traffic volumes generated by new development. In the absence of this Article imposing a traffic facilities fee, existing and future sources of revenue will be inadequate to fund a substantial portion of the transportation facilities which are necessary to avoid unacceptable levels of congestion and the related adverse impacts.

• (i) All types of urban development require and use transportation facilities. The City Council also has examined the rates at which different land uses generate traffic. The City Council, in evaluating these traffic generation rates, has taken into consideration, among other things, other traffic-related studies and reports prepared by or on behalf of the City. The City Council finds that these traffic generation rates represent a reasonable estimate of the actual impact on the City's circulation system.

• (j) A fair and equitable method of securing some of the revenues necessary to construct the required improvements to the transportation facilities is to impose a transportation impact fee based on the extent to which new development generates additional traffic volumes and impacts to the transportation facilities.

• (k) The 2019 Hercules Transportation Impact Fee Nexus Study specifically identifies transportation facility improvements which are necessary to accommodate future growth. These improvements are and will be incorporated in the City's Capital Improvement Program (CIP).

• (l) The circulation system improvements that will be constructed with funds generated pursuant to the article will significantly benefit the contributor in that the adverse impacts, such as noise, air pollution, delay, accidents, increased fuel consumption, harm to the local economy, and inconveniences caused by traffic congestion will be substantially mitigated. Persons who undertake new development in the City are benefited by a desirable community and the City's reputation for providing, and ability to provide, an adequate transportation system.

• (m) Pursuant to Government Code Section 66001, and based upon the 2019 Hercules Transportation Impact Fee Nexus Study and the terms of this Article, the Council finds that:

  • (1) The purpose of the fee imposed pursuant to this Article is to provide adequate transportation improvements to serve new development within the City.

  • (2) The improvements for which the fee will be used are identified in the Hercules Transportation Impact Fee Nexus Study, as approved in 2019, summarized below and supported by the Hercules General Plan, to be contained in the City's Capital Improvements Program (CIP).

    1. Signalize intersection of San Pablo and Tsushima

    2. Reconfigure Sycamore Ave cross section from Willow to San Pablo

    3. San Pablo/Jon Muir Parkway to I-80 ramp expansion

    4. Intersection improvements at Willow and Sycamore

    5. Add 3rd NB through lane to San Pablo Ave at Sycamore

    6. Install pedestrian activated signal at Market Hall crosswalk

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City of Hercules, CA

==> picture [377 x 300] intentionally omitted <==

----- Start of picture text -----
7. Upgrade or add ADA curb ramps
8 Hercules Creekside trail from Alfred Noble to Sycamore
9. Multi-use path at Market Hall
10. Pedestrian connection along Palm between Sycamore and Willow
11. Bay Trail gap closure and lighting
12. Expand bicycle network
13. Add sidewalk along Willow Ave to Hercules Transit Center
14. Improve pedestrian connections to Hercules Transit Center from Creekside
Shopping Center along Sycamore to Willow
15. Extend sidewalk connections to Rodeo
16. Complete bicycle facilities between Mariner's Pointe and HTC
17. Add lighting to Refugio Valley Trail
18. Remove crosswalk at north leg of San Pablo and Sycamore
19. Provide bus shelters along San Pablo
20. Parking for Intermodal Transit Center
21. Complete Intermodal Transit Center/Rail Station (RITC)
----- End of picture text -----

• (3) All types of urban development require and use the transportation system.

• (4) The amount of the fee imposed pursuant to this Article shall bear a fair and reasonable relationship to each development's burden on and benefit from the City-wide circulation system improvements to be funded by the traffic impact fee, and shall be based on the following considerations:

  • A. New development will pay only for those improvements which serve new development or which are necessary to reduce impacts to the transportation facilities which would otherwise be created by new development. The cost of improvements needed to alleviate existing transportation system deficiencies are not included in this fee.

  • B. Each type of development shall contribute to the needed improvements in proportion to the use of improvements by that type of development, based upon traffic generation and trip length characteristics of various land uses to those same rates for a typical single-family residential unit (referred to as a DUE—dwelling unit equivalent) for each type of land use category.

• (n) Periodic review, and possible revision, of the resolution adopted by the City Council under this Article will allow for the adjustment of the fee to ensure that the fee remains a fair and equitable method for the distribution of costs to construct circulation system improvements necessary to accommodate traffic volumes generated by development.

• (o) The 2019 Hercules Transportation Impact Fee Nexus Study prepared by DKS for the City of Hercules, a copy of which is on file with the City Clerk, and future Council-approved amendments to it, are approved, incorporated herein by reference and provide the technical

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City of Hercules, CA

Sec. 10-18.602

information on which the fee imposed pursuant to this Article is based. (Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

In this Article:

• (a)

  • "Director" means the City Manager or the City Manager's designee;

• (b) "2019 Hercules Transportation Impact Fee Nexus Study" is the report of that title dated March 12, 2019, prepared by DKS for the City of Hercules, and future additions and amendments or supplements to or replacements of that report, all of which are incorporated in this Article.

• (c) "Permit" means a building or use permit authorizing the development of new floor area or a change from one (1) land use category to another.

• (d) "Floor area" means the gross floor area of a building or, if a building contains separate uses for which the fee is payable, the floor area of each of those uses. It is determined by calculating the total combined floor area within the building's exterior walls or, in the case of a building containing more than one (1) use, the area within the walls containing each separate use. Floor area includes the area of an addition where floor area is increased. Parking areas and exterior walkways are not included in this calculation.

• (e) "Improvements" are the transportation facility improvements in the City which are identified in the 2019 Hercules Transportation Impact Fee Nexus Study, the Hercules General Plan, and the Capital Improvements Program (CIP). They include improvements to intersections, roadways, freeway ramps, traffic signals, pedestrian facilities, bicycle facilities, and transit facilities.

• (f) Land uses referred to in this Article and in the resolution establishing fees are defined as follows:

  • (1) "Single-family dwelling" includes one (1) detached single-family dwelling unit on a single parcel.

  • (2) "Multifamily dwelling" means all attached dwellings such as apartments, town houses, condominiums, duplexes, multiplexes and new accessory units that are either detached, created by an addition on an existing single-family dwelling or created by converting nonhabitable space. Accessory dwelling units within the footprint of an existing dwelling unit's habitable space are not required to pay the fee.

  • (3) "Office" includes facilities primarily used for professional (medical, legal, engineering, accounting), general commercial, financial, insurance and other offices which do not function primarily for walk-in services, as well as uses with a similar impact on the services or facilities for which the fee is assessed.

  • (4) "Retail" includes facilities primarily engaged in the retail sales of goods or services to the general public or to small businesses. This category includes automobile dealers, non-fast-food restaurants, hospitals, schools, colleges, banks, and uses with a similar impact on the services or facilities for which the fee is assessed.

  • (5) "Industrial" includes facilities primarily engaged in manufacturing, processing and

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City of Hercules, CA

Sec. 10-18.603

assembling goods, business and construction services, passenger and freight transportation, research and development and uses with a similar impact on the services or facilities for which the fee is assessed.

• (6) "Hotel" includes buildings used for the overnight lodging of guests for less than thirty (30) days and uses with a similar impact on traffic volume.

• (7) "Fast food/drive through" are generally those convenience food places that generate much higher traffic rates than other retail uses due to their high turnover.

• (8) "Fuel station pumps" (excludes convenience store building) allocate fees based on the traffic generation for fuel stations, as the fuel canopy square footage does not adequately capture the traffic impacts.

• (9) Other uses are uses not specifically set forth in subsections (f)(1) through (8) of this Section in accordance with the 2019 Hercules Transportation Impact Fee Nexus Study.

• (Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

• (a) General. The amount of the fee shall be established by resolution of the City Council and is based upon the following considerations:

  • (1) Development will pay only for improvements where there is a reasonable relationship between the improvements and the traffic generated by the new development.

  • (2) Each type of development shall contribute to the needed improvements in proportion to the use of the improvements by that type of development.

• (b) Type of Development Subject to the Fee. The categories of land uses for which the fee will be charged are listed below, based on each use's dwelling unit equivalents (accounting for trip lengths) in the Nexus Study.

  • (1) Single-family residential: per unit;

  • (2) Multifamily residential: per unit;

  • (3) Office: per square foot;

  • (4) Retail: per square foot;

  • (5) Industrial: per square foot;

  • (6) Hotel: per room;

  • (7) Fast food/drive through: per square foot;

  • (8) Fuel station: pumps;

  • (9) Other uses not specifically set forth, consistent with the 2019 Hercules Transportation Impact Fee Nexus Study.

• (c) When and How Applicable. The fee is imposed upon issuance of a development permit, certificate of occupancy or change of use. A "development permit" means any permit or

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City of Hercules, CA

Sec. 10-18.606

approval from the City, including but not limited to subdivision maps, final planned development permit, building permit, or other permit for construction or reconstruction. The fee applies as follows:

• (1) The fee for residential construction is for each dwelling unit. There is no fee for unit replacement or remodeling or for an addition to an existing unit not resulting in a new accessory dwelling unit.

• (2) The fee per square foot for retail, office and similar construction is imposed on a per square foot basis for all new floor area including additions where floor area is increased, and on a per-room basis for hotel construction. There is no fee for remodeling or restoration where floor area is improved or replaced but not increased.

• (3) A fee may be due for a change in land use category. The fee is based upon the incremental difference between the current applicable fee for the prior use and the current fee for the proposed new use.

• (d) Improvements. The fee shall be based on the cost of the improvements attributable to new development as determined in the 2019 Hercules Transportation Impact Fee Nexus Study. The improvements included in the total cost are set forth in the 2019 Hercules Transportation Impact Fee Nexus Study, and do not and shall not include the costs to alleviate existing deficiencies in the circulation system.

• (Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

• (a) No fee is due if a traffic or transportation facilities impact fee was previously paid in full for a particular property and use.

• (b) No fee is due for an increase in floor area of a retail use when such increase does not expand existing floor area by more than ten percent (10%) or seven hundred fifty (750) square feet.

• (Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

The time for payment of the traffic facilities fee shall be established by resolution of the City Council setting the fee and shall conform to the requirements of Government Code Section 66007.

(Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

• (a) The City shall deposit the fees collected under this Article in a special fund, the Transportation Facilities Impact Fee Fund (previously known as the Traffic Facilities Impact Fee Fund), designated for transportation facilities improvements.

• (b) The fees and any interest earned shall be used only to:

  • (1) Complete the transportation improvement projects specified in the 2019 Hercules Transportation Impact Fee Nexus Study and any amendment thereto or to reimburse the City for such construction if funds were advanced by the City from other sources; or

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City of Hercules, CA

Sec. 10-18.609

• (2) Reimburse developers who have been required or permitted to install such improvements (after the effective date of this Article) which are oversized with supplemental size, length or capacity relative to the demand generated by the proposed project contained in the improvement list; or

(3) Reimburse the City for its reasonable costs in administering this Article.

(Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

Fees collected under this Article are not intended to replace or limit other City requirements to provide site-specific mitigation of site-specific traffic impacts imposed upon development projects as part of normal development review process.

(Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

The City Council shall, as it deems necessary, review the traffic facilities fee authorized by this Article, implementing Council resolutions and supporting documentation, including the 2019 Hercules Transportation Impact Fee Nexus Study as amended, supplemented or replaced from time to time and any traffic mitigation or other studies, and may, based on such review, institute an amended traffic facilities impact fee program.

Effective July 1, 2020, and on each subsequent anniversary date of such date, the amount of each of the transportation facilities impact fees, set forth above, shall increase or decrease by the annual percentage change in the Engineering News-Record Construction Cost Index for the San Francisco Bay Area for the twelve (12) month period ending with the February index of the same calendar year. The percentage change will be calculated by staff and presented to City Council with the annual update to the Master Fee Schedule.

(Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

Article 1 applies to this transportation facilities impact fee. (Ord. 364 § 2 (part), 2001; Ord. 518 § 1 (Exh. A (part)), 2019)

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City of Hercules, CA

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City of Hercules, CA

This Chapter is known and to be cited as the City of Hercules Inclusionary Housing Ordinance. (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

The purpose of this Chapter is to:

• (a) Enhance the public welfare and assure that further housing development contributes to the attainment of the City's housing goals by increasing the production of residential units affordable by households of very low, low and moderate income.

• (b) Assure that the limited remaining developable land in the City is utilized in a manner consistent with the City's housing policies and needs.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

As used in this Chapter, each of the following terms shall be defined as follows:

• (a) "Affordable unit" means an ownership or rental-housing unit, including senior housing, affordable to households with very low, low or moderate incomes as defined in this Chapter.

  • (1) Rental units are deemed affordable units if the annual rent does not exceed thirty percent (30%) of the maximum income level for very-low, low- or moderate-income households, adjusted for household size and as defined below.

  • (2) Owner-occupied units are deemed affordable units if the sales price results in annual housing expenses that do not exceed thirty-five percent (35%) of income level for very-low, low- and moderate-income households, adjusted for household size and as defined below.

• (b) "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks City real property development or approvals.

• (c) "Dwelling unit" means a dwelling designed and intended for occupancy by one (1) household.

• (d) "Very low, low and moderate income levels" means those income and eligibility levels determined periodically by the California Department of Housing and Community Development based on Contra Costa County median income levels adjusted for family size. Such levels shall be calculated on the basis of gross annual household income considering household size and number of dependents, income of all wage earners, elderly or disabled family members, and all other sources of household income and will be re-certified as set forth by local standards, and state and federal housing law.

  • (1) "Very low income" means fifty percent (50%) or less of the median income, adjusted

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City of Hercules, CA Sec. 10-19.103

HERCULES CODE

Sec. 10-19.104

for actual household size.

• (2) "Low income" means more than fifty percent (50%) to eighty percent (80%) of the median income, adjusted for actual household size.

• (3) "Moderate income" means more than eighty percent (80%) to one hundred twenty percent (120%) of the median income, adjusted for actual household size.

• (e) "Resale controls and/or rent restrictions" means legal restrictions by which the affordable unit shall be restricted to ensure that the unit remains affordable to very-low, low- or moderate-income households, as applicable, for a period of fifty-five (55) years for rental units and forty-five (45) years for owner-occupied units. With respect to rental units, such rent restrictions shall be in the form of a regulatory agreement recorded against the applicable property. With respect to owner-occupied units, such resale control shall be in the form of resale restrictions, deed of trust, and/or other similar documents recorded against the applicable property.

r rental units and forty-five (45) years for owner-occupied units. With respect to rental units, such rent restrictions shall be in the form of a regulatory agreement recorded against the applicable property. With respect to owner-occupied units, such resale control shall be in the form of resale restrictions, deed of trust, and/or other similar documents recorded against the applicable property.

• (f) "Residential development" means and includes, without limitation, detached single-family dwellings, multiple-dwelling structures, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed use development that include housing units, and residential subdivisions intended to be sold to the general public.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

• (a) Affordability Requirement. All new residential development projects designed and intended for permanent occupancy shall construct ten percent (10%) of the total number of dwelling units within the development as affordable units, except as otherwise provided by this Chapter. All new development projects designed and intended for permanent occupancy within a redevelopment project area shall construct fifteen percent (15%) of the total number of dwelling units within the development as affordable units; of this fifteen percent (15%) of the units, forty percent (40%) must be affordable to very-low-income households. The foregoing shall be applied no more than once to an approved development (and generally at the tentative map stage), regardless of the changes in the character or ownership of the development, provided the total number of units does not change. In applying and calculating the affordability requirement, any decimal fraction less than 0.50 may be disregarded, and any decimal fraction greater than or equal to 0.50 shall be construed as one (1) unit.

• (b) Allocation of Units Outside of Redevelopment Project Area to Income Levels. Affordable units provided, outside of a redevelopment project area, pursuant to this Section shall be allocated to households with very low, low and moderate income levels as follows:

Where the calculation of all the allocation results in fewer units than would otherwise be

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City of Hercules, CA

Sec. 10-19.105

required pursuant to subsection (a) of this Section, one (1) additional unit shall be allocated to the income level with a decimal fraction closer to 0.50.

• (c) Conditions of Approval. Any tentative map, conditional use permit, or site development review approving residential development projects subject to this Chapter shall contain conditions sufficient to ensure compliance with the provisions of this Chapter. Such conditions shall detail the number of affordable units required, specify the schedule of construction of affordable units, set forth the applicant's manner of compliance with this Chapter, and require the execution of an agreement imposing appropriate resale controls and/or rental restrictions on the affordable units.

• (d) Concurrent Construction. All affordable units in a project or phase of a project shall be constructed concurrently with market-rate units, unless the City Manager determines in writing that extenuating circumstances exist that make concurrent construction infeasible or impractical. If the concurrent construction of the affordable units is found to be infeasible or impractical the developer shall provide the City a performance bond for delivery and construction of the affordable units, which provides for a specific delivery date of the affordable units. The performance bond value, for the total number of affordable units that will be delivered at a later date, shall be determined as indicated in Section 10-19.105(a) (In-lieu Fee).

• (e) Design and Distribution of Affordable Units. All affordable units shall reflect the range of numbers of bedrooms provided in the project as a whole and shall not be distinguished by exterior design, construction, or materials. Affordable units may be smaller size than the units in the project and may have fewer amenities than the market-rate units in the project. All affordable units shall be reasonably dispersed throughout the project.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

Developers of projects subject to Section 10-19.104(a) of this Chapter shall construct the number of total dwelling units within the development as affordable units, unless subject to an exception set forth in this Section. All exceptions require City Council approval, which shall be obtained at or prior to the last discretionary approval for the project.

• (a) Payment of Fees In Lieu of Creation of Affordable Units. Upon request of the applicant, the City Council shall permit the applicant to pay a fee in lieu of constructing up to forty percent (40%) of the affordable units that the developer would otherwise be required to construct pursuant to Section 10-19.104(a) of this Chapter. The amount of the fee shall be as set forth in a resolution of the City Council, which may be amended from time to time to reflect inflation and changed conditions in the City and the region. In-lieu fees shall be paid at the time and in the amount set forth in the in-lieu fee resolution in effect at the time of issuance of the building permit.

• (b) Off-Site Projects. An applicant may construct the affordable units not physically within the development in lieu of contracting some or all of the affordable units within the development, with the approval of the City Council, if the City Council finds:

  • (1) That construction of the units off-site in lieu of constructing units on-site is consistent with the Chapter's goal of creating, preserving, maintaining, and protecting housing for very-low, low- and moderate-income households.

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City of Hercules, CA Sec. 10-19.105

HERCULES CODE

Sec. 10-19.106

• (2) That the units to be constructed off site are consistent with this Chapter.

• (3) That it would be infeasible or impractical to construct affordable units on-site.

• (4) That conditions of approval for the project require that the off-site affordable units would be governed by the terms of a deed restriction and, if applicable, rental restrictions similar to that used for the on-site affordable units.

• (5) That the conditions of approval for the project, or other security such as a cash deposit, bond, or letter of credit, are adequate to require the construction of the offsite affordable units concurrently with the completion of the construction of the residential development or within a reasonable period (not to exceed two (2) years).

• (c) Land Dedication. An applicant may dedicate land to the City or City-designated local nonprofit housing developer in lieu of construction of some or all of the required affordable units, if the Council finds:

  • (1) That dedication of land in lieu of construction units is consistent with the Chapter's goal of creating, preserving, maintaining, and protecting housing for very-low, lowand moderate-income households.

• (2) That the dedicated land is usable for its intended purpose, is free of toxic substances and contaminated soils, and is fully improved, with infrastructure, adjacent utilities, grading and all development impact fees paid excluding any inclusionary zoning ordinance fees.

  • (3) That the proposed land dedication is of sufficient size to meet the following requirement:

    • A. The dedication includes land sufficient to construct the number of units that the applicant would otherwise be required to construct, based on the size of lots in the subdivision for which the applicant is meeting its obligation.

• (d) Credit Transfers. An applicant may fully or partially satisfy the requirements of Section 10-19.104(a) of this Chapter through the use of transfer credits created pursuant to Section 10-19.107 of this Chapter. Credit certificates shall be presented to the Community Development Director, who shall note at the time of project approval the credit certificate by number. Credit certificates may only be used to satisfy the requirements for inclusionary units for the income category (i.e., very low, low or moderate) and the number of bedrooms for which they were issued. The City may offer credit certificates from historical projects at a value as determined by subsection (a) of this Section.

• (e) Waiver Requirements. The City Council, at its discretion, may waive, wholly or partially, the requirements of this Chapter and approve alternate methods of compliance with this Chapter if the applicant demonstrates, and the City Council finds, that such alternate methods meet the purposes of this Chapter.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

• (a) Agreements. Prior to the issuance of a building permit for an affordable unit, resale restrictions or rental controls, or both, as the case may be, shall be set forth in an agreement between the City and the developer, in a form consistent with the City Council-adopted

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City of Hercules, CA

Sec. 10-19.108

form agreement, which agreement shall be recorded against the property containing the affordable units. The agreement shall be executed by the City Manager, and its requirements shall run with the land and bind the applicant's successors.

• (b) Rental Units; Occupancy; Annual Report. Agreements involving rental units shall require the owner of the affordable units to ensure that the units are occupied by tenants whose monthly income levels do not exceed very low to moderate income levels and shall preclude tenants from subletting or subleasing the unit. The agreement shall also require the owner of the affordable unit to submit an annual report to the City Manager, in a format approved by the City. The report shall include, but not be limited to, the following information: an identification of the affordable units within the project; the monthly rents charged and proposed to be charged; vacancy information for the prior year; and the monthly income for tenants of each affordable unit throughout the prior year.

• (c) Ownership Units, Occupancy, City's Right of First Refusal. Agreements for ownership units shall specify that the inclusionary units must be occupied by the owner or owners and may not be leased or rented without the written approval of the City. The resale restrictions shall provide that in the event of the sale of an affordable unit, the City shall have the right to purchase any affordable owner-occupant unit at the maximum price that could be charged to an eligible household.

• (d) Selection Criteria. No household shall be permitted to occupy a unit that is required under this Chapter to be affordable unless the City or its designee has approved the household's eligibility. Eligible potential occupants of affordable units will be qualified on the basis of household income; the median combined household income statistics for Contra Costa County published periodically by the California Department of Housing and Community Development; all sources of household income and assets; the relationship between household size and the size of available units; and any further criteria required by law. The developer shall use a selection method established by the City's Affordable Housing Program.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

• (a) Creation. Affordable unit credits may be created by the City Council. One (1) affordable unit credit certificate shall be issued for each affordable unit constructed in excess of the number of affordable units to be constructed for the project as required by this Chapter. The certificate shall designate a specific income category (i.e., very low, low or moderate income) and number of bedrooms for which they are issued.

• (b) Ownership and Use of Credits. Affordable unit credit certificates are issued to and become the possession of the City, who may then use them to satisfy the requirements of this Chapter for another project in the City.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

The City may, but shall not be required to, offer incentives or financial assistance to encourage the on-site construction of affordable units in excess of minimum total number of units in the project to the extent resources for this purpose are available and approved for such use by the City Council or City Manager. Such incentives may include, but shall not be limited to, the

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City of Hercules, CA

Sec. 10-19.110

following:

• (a) Fee Deferral.

  • (1) Development Processing Fees. The City Manager may approve deferred payment of City processing fees applicable to the review and processing of the project. The terms and payment schedule of the deferred fees shall be subject to the approval of the City Manager.

  • (2) Development Impact Fees. The City Council may authorize the deferred payment of development impact fees applicable to the affordable units. Approval of this incentive requires demonstration by the applicant that the deferral increases the project's feasibility. The applicant must provide appropriate security to ensure future payment of such fees.

• (b) Design Modifications. The City Council may approve design modifications to affordable units that increase the feasibility of the construction of affordable units, including but not limited to, the following:

  • (1) Reduced lot size;

  • (2) Reduced setback requirements;

  • (3) Reduced open space requirements;

  • (4) Reduced landscaping requirements;

  • (5) Reduction in interior or exterior amenities;

  • (6) Reduction in parking requirements;

  • (7) Height restriction waivers.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

In-lieu fees shall be deposited into a fund known as the "Inclusionary Zoning In-Lieu Fees Fund" ("Fund").

• (a) Use. All monies in the fund, together with any interest earnings on such monies less reasonable administrative charges, shall be used or committed to use by the City for the purpose of providing very-low, low- and moderate-income ownership or rental housing in the City of Hercules.

• (b) Annual Report. The City Manager shall prepare an annual report to the City Council identifying the balance of monies in the Fund and the affordable units provided and any monies committed to providing very-low, low- and moderate-income housing. The annual report shall also include a review of administrative charges.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

It shall be unlawful for any person, firm, corporation, partnership or other entity that is subject to this Chapter pursuant to Section 10-19.104(a) to violate any provision or to fail to comply with

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City of Hercules, CA

Sec. 10-19.113

any of the requirements of this Chapter. Violation of or failure to comply with any provision of this Chapter shall constitute a misdemeanor; except that notwithstanding any other provisions of this Code, any such violation constituting a misdemeanor under this Chapter, may in the discretion of the enforcing authority, be charged and prosecuted as an infraction. Any person convicted of an infraction under the provisions of this Code shall be punishable as provided by the Government Code of the State of California.

(Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

• (a) General. The City Manager shall enforce this Chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The City Manager may suspend or revoke any building permit or approval upon finding a violation of any provision of this Chapter. No land-use approval, building permit, or certificate of occupancy shall be issued for any residential development unless exempt from or in compliance with this Chapter. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval.

• (b) Excessive Rents/Legal Action. If the City Manager determines that rents in excess of those allowed by operation of this Chapter have been charged to a tenant residing in an affordable unit, the City may take appropriate legal action to recover, and the project owner shall be obligated to pay to the tenant, or to the City in the event the tenant cannot be located, any excess rents charged.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

Decisions of the City Manager under this Chapter may be appealed as provided in this Municipal Code.

• (Ord. 416 § 3 (part), 2006; Ord. 469 § 3 (part), 2012)

The provisions of this Chapter are suspended as of the effective date of Ordinance No. 469 and shall not become reinstituted by the City Council except by subsequent ordinance. (Ord. 469 § 3 (part), 2012)

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City of Hercules, CA

LAND USE

Sec. 10-19.113