Chapter 22.82 — INCLUSIONARY HOUSING

The goal of this chapter is to ensure that affordable housing units are added to the City's housing stock in proportion to the increase in new housing units by requiring the integration of deedrestricted units to be sold or rented at below-market rates to acutely low-, extremely low-, very low-, low-, and moderate-income households within above moderate-income projects, and increase access to resources, amenities, and housing opportunities throughout the community. This chapter establishes policies, incentives, design standards, and alternative means of compliance for meeting the City's inclusionary housing requirements. (Ord. No. 1480, 12/10/2025)

This chapter applies to any rental or ownership residential project of which any combination of 11 or more dwelling units is created, including, but not limited to, planned unit developments, condominium or subdivision maps, condominium conversions, mixed-use developments, conditional use permits, design review, or other ministerial or discretionary land use approvals. (Ord. No. 1480, 12/10/2025)

Projects for which this chapter applies must provide at least 15% of the total units, excluding any manager's unit, as deed-restricted affordable housing to acutely low-, extremely low-, very low-, low-, and/or moderate-income households. The levels of affordability shall be derived based on tenure type as provided below:

• A. Rental projects. The income mix of Inclusionary Units must average out to 80% of Area Median Income ("AMI") or less, with no affordable rental units available to households above 120% of AMI.

• B. Ownership projects. The income mix of Inclusionary Units must average out to 120% of AMI or less, with no affordable ownership units available to households above 150% of AMI.

• C. Mixed tenure type projects. For projects containing both rental and ownership Inclusionary Units, each tenure type shall independently comply with the applicable income and affordability requirements of this section.

• (Ord. No. 1480, 12/10/2025)

Projects for which this chapter applies shall be subject to the following general requirements:

• A. Design and distribution of inclusionary units. All Inclusionary Units shall be comparable to the overall quality of construction to the above-moderate units, including exterior appearance and access to amenities. The number of bedrooms in the Inclusionary Units shall be comparable to the average number of bedrooms in the above-moderate units, including comparable square feet by unit size, and the Inclusionary Units shall be reasonably dispersed within the project site.

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City of Martinez, CA § 22.82.040

MARTINEZ CODE

§ 22.82.070

• B. Concurrent construction. All Inclusionary Units in a project shall be constructed concurrently within or prior to the construction of the project's above-moderate units.

• C. Rounding. The percentage of required Inclusionary Units shall be derived from the total amount of proposed units, rounded up to the nearest whole number (e.g., any faction shall be rounded up to the nearest whole number).

• D. Length of affordability. All Inclusionary Units, exclusive of any manager unit(s), shall be subject to a recorded deed restriction, in a form and manner approved by the City Attorney and Planning Manager or designee(s) for at least the following periods of time:

  1. 55 years for units that are rented.

2. 45 years for units that are owner occupied.

(Ord. No. 1480, 12/10/2025)

• A. State Density Bonus Law. Qualifying projects can receive the density bonus, concessions, and waivers, consistent with the requirements outlined in Chapter 22.80 (Density Bonus).

• B. Development incentives. Qualifying projects shall qualify for the development incentives described in Chapter 22.81 (Development Incentives and Community Benefits Program) provided the Applicant waives the right to use the California State Density Bonus Law, as provided in Section 22.81.020 (Waiver of State Density Bonus Law).

• (Ord. No. 1480, 12/10/2025)

The following residential developments are exempt from the requirements of this chapter:

• A. Reconstruction. The reconstruction of any dwelling units destroyed by fire, flood, earthquake, or other act of nature, provided the square footage, number of units, and use of the units remain the same and the use is resumed within 12 months of the interruption, subject to Planning Manager, or designee determination.

• B. Modifications to existing units. Modifications to existing properties or structures that do not increase the number of dwelling units.

• C. Residential care facilities. Residential Care Facility projects, as defined in Chapter 22.04.

• D. Supportive housing. Supportive Housing projects, as defined in Chapter 22.04.

• E. Mobile home parks. Mobile Home Parks and Manufactured Homes as provided in Title 18 (Mobile Home Parks).

• F. Student housing. Student housing projects, such as on-site or off-site dormitories affiliated with a university or college.

• G. Previously approved or pending projects. Residential Developments whose applications were determined by the Planning Division to be complete and/or approved prior to January 1, 2026.

(Ord. No. 1480, 12/10/2025)

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City of Martinez, CA

ZONING

§ 22.82.070

§ 22.82.070

As an alternative to constructing Inclusionary Units on site as required by this chapter, the Applicant may instead propose one or a combination of the alternative equivalents set forth below:

• A. In-lieu fee. Applicants may request via the Affordable Housing Agreement, provided in Section 22.82.080, to pay a fee in lieu of all or some of the Inclusionary Units otherwise required instead of developing the Inclusionary Units on site, subject to the approval by the respective review authority. The fee shall be charged for each required Inclusionary Unit and shall be paid as follows:

  1. The amount of the fee to be paid by the Applicant pursuant to this subsection shall be provided in the City's fee schedule established by Resolution of the City Council.

  2. One-half of the in-lieu fee required by this subsection shall be paid (or a letter of credit posted) prior to issuance of a building permit for all or any part of the Residential Development.

  3. The entirety of the in-lieu fee shall be paid before a Final Building Permit is issued for any unit associated with the project.

  4. The in-lieu fees collected shall be deposited in the Affordable Housing Fund.

  5. In no case shall the in-lieu fee be less than $100,000 per Inclusionary Unit.

• B. Dedication of vacant developable land. The Applicant may convey title to land in fee simple absolute if all the following requirements have been met and approved by the respective review authority:

  1. The dedicated land must be donated to an affordable housing developer for use as a future affordable housing project.

  2. The dedicated land must be suitable for the construction of Inclusionary Units that the respective review authority reasonably determines to be equivalent or greater value than is produced by applying the City's in-lieu fee to the Applicant's Inclusionary Unit obligation.

  3. The dedicated land must located within the City of Martinez and be appropriately zoned to accommodate residential development at a density to accommodate at least the number of otherwise required Inclusionary Units.

  4. Infrastructure to serve the dedicated land, including but not limited to streets and public utilities, must be available at the property line and have adequate capacity to serve the maximum allowable residential development pursuant to zoning regulations.

  5. The site and/or project has undergone environmental review to determine eligibility for a California Environmental Quality Act exemption or approval of a negative declaration, mitigated negative declaration, or certification of an Environmental Impact Report. At a minimum, any identified hazardous materials or geological hazards have been or will be mitigated to the satisfaction of the Planning Manager, City Engineer, or designee, prior to acceptance of the site.

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City of Martinez, CA

MARTINEZ CODE

§ 22.82.070

§ 22.82.080

• C. Off-site construction or conversion of inclusionary units. Some or all of the required Inclusionary Units may be constructed off-site, or an existing off-site development may be acquired, rehabilitated, and converted to deed-restricted affordable housing to provide the required Inclusionary Units, with the respective review authority's approval, subject to the following requirements:

  1. The combination of location, unit size, unit type, pricing, and timing of availability of the proposed off-site Inclusionary Units would provide equivalent or greater benefit than would result from providing those units on-site as might otherwise be required by this chapter.

  2. Any off-site Inclusionary Units must be constructed or rehabilitated prior to or concurrently with construction of the on-site residential development.

  3. The off-site development location must be within the City of Martinez, be appropriately zoned, and must obtain all required entitlements before building permits are issued for the on-site residential development.

  4. Unless otherwise noted, all requirements applicable to on-site Inclusionary Units shall apply to off-site Inclusionary Units.

• D. Other means. Applicants may fulfill its Inclusionary Unit obligation through alternative equivalent methods that deviate or that are not specifically mentioned in this chapter, including through the provision of rental deed-restricted affordable units by Applicants of ownership development projects (in accordance with Cal. Gov't. Code § 65589.8), provided that the City Council determines such alternative results in the same number of deed-restricted affordable units that would have been provided with on-site construction and the Inclusionary Units otherwise meet all requirements provided in this chapter.

• (Ord. No. 1480, 12/10/2025)

Applicants that are required to provide Inclusionary Units shall be required to provide an Affordable Housing Agreement, subject to the following standards:

• A. Affordable housing agreement. Applicants requiring Inclusionary Units shall agree to enter into an affordable housing agreement ("agreement") with the City in the City's standard form of agreement or otherwise approved to form by the City Attorney and Planning Manager, or designee(s).

• B. Recording of agreement. The agreement shall be recorded as a restriction on all parcels on which Inclusionary Units will be constructed prior to issuance of a certificate of occupancy for each Inclusionary Unit.

• C. Agreement contents. Each agreement shall include, but not be limited to, the following:

  1. A description of the residential development, including whether the Inclusionary Units will be rented or owner-occupied or the alternative means by which the Applicant proposes to comply with their Inclusionary Unit obligation;

  2. Provisions related to the duration of deed-restricted affordability;

  3. Provisions related to the maximum rent or price restrictions of the Inclusionary Units

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City of Martinez, CA

ZONING

§ 22.82.080

§ 22.82.090

to ensure affordability consistent with any applicable state or federal affordable housing program;

4. Provisions and/or documents for resale restrictions, deeds of trust, right of first refusal, or rental restrictions;

5. Provisions for monitoring the ongoing affordability of the Inclusionary Units and the process for qualifying prospective resident households for income eligibility; and

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

• D. Standard form agreement. The purchaser of owner-occupied or rental Inclusionary Units shall execute the agreement in the City's standard form, to be recorded against the parcel, and which includes such provisions as the City may require to ensure continued compliance with this chapter.

• (Ord. No. 1480, 12/10/2025)

The City Council by resolution may establish compliance monitoring fees to recover the City's actual, reasonable costs incurred for ongoing implementation of this chapter. For deed-restricted affordable ownership units, the fee shall be payable by the developer or future seller of the property at the time of each sale or transfer during the term of the applicable Affordable Housing Agreement. For deed-restricted rental Inclusionary Units, the property owner shall pay an annual fee each year during the term of the applicable Affordable Housing Agreement. (Ord. No. 1480, 12/10/2025)

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