Monrovia Municipal Code Ch. 17.42 Affordable Housing Requirements

The purpose of this chapter is to establish standards and procedures that require the development of affordable housing, to ensure the addition of affordable housing units is in proportion with the overall increase in new housing units, and to provide standards and procedures for the administration of the city's inclusionary housing program.

(Ord. 2025-03 § 10, 2025)

In implementing this chapter, the City Council finds:

(A) For the Sixth Cycle Regional Housing Needs Assessment (2021-2029) the City of Monrovia was allocated 1,670 dwelling units, which includes 519 dwelling units for very low-income households, 262 dwelling units for low-income households, 254 dwelling units for moderate-income households, and 635 dwelling units for above moderate-income households.

(B) The city's adopted Housing Element for the Sixth Cycle includes Program 1.7, which states that the city will explore adopting an inclusionary housing program. This chapter fulfills and implements this requirement.

(C) It is the City Council's intent to increase the availability of housing for residents of the city across all income levels. This Inclusionary Housing Ordinance is a necessary tool to meet this goal.

(D) Without reasonable inclusionary housing requirements, new residential projects traditionally do not contribute new affordable units to the housing stock of a community.

(E) This chapter is reasonably related to the general welfare purpose of ensuring that the city's goal of making available more economically diverse housing across the city can be attained.

(Ord. 2025-03 § 10, 2025)

As used in this chapter, the following terms shall have the following meanings.

AFFORDABLE HOUSING IN-LIEU FEE. A fee paid by an applicant as an alternative to providing an affordable unit or a fraction of an affordable unit.

AFFORDABLE OR INCLUSIONARY HOUSING UNIT. A newly constructed "for-rent" or "for-sale" dwelling unit which is:

(1) Provided (or caused to be provided) by an applicant under the provisions of this chapter;

(2) To be made available and occupied by a very low-, low- or moderate-income household, as required under the provisions of this chapter;

(3) Subject to occupancy and affordable housing cost or sales price controls for a period of not less than 55 years for "for-rent" units and 45 years for "for-sale" units;

(4) Compatible with the design of other units in the residential housing development of which it is part in terms of exterior appearance, materials and quality finish; and

(5) A similar unit type and bedroom mix to the overall residential development.

HOUSING ELEMENT OPPORTUNITY AREA. Any property located in, listed by, or identified by the Housing Element of the General Plan for the current planning cycle to accommodate the city's share of the Regional Housing Needs Assessment (RHNA). Housing Element Opportunity Areas may also be called Housing Element Sites Inventory or other name as identified by the Housing Element.

MARKET RATE OR MARKET RATE RENT. A general term, as defined in Cal. Health and Safety Code § 50081, that is the monthly rent established by the California Housing Finance Agency as competitive according to its own regulations, except where federal regulations provide a required method of determining market rent. Determination of market rent may be reviewed annually upon application by the mortgagor, subject to applicable federal regulations, if any.

MIXED-INCOME MULTI-UNIT STRUCTURE. A building within, or contains, a residential development that includes a combination of affordable and market rate housing units.

QUALIFIED NONPROFIT HOUSING CORPORATION. As defined in Cal. Gov’t Code § 65915(c)(2)(B), a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Cal. Revenue and Taxation Code § 214.15 for properties intended to be sold to low-income families who participate in a special no-interest loan program and meets all of the following requirements pursuant to a recorded contract that satisfies all of the requirements specified in Cal. Revenue and Taxation Code § 402.1(a)(10):

(1) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.

(2) The nonprofit corporation is based in California.

(3) All of the board members of the nonprofit corporation have their primary residence in California.

(4) The primary activity of the nonprofit corporation is the development and preservation of affordable home ownership housing in California that incorporates within their contracts for initial purchase a repurchase option that requires a subsequent purchaser of the property that desires to resell or convey the property to offer the qualified nonprofit corporation the right to repurchase the property prior to selling or conveying that property to any other purchaser pursuant to an equity sharing agreement or affordability restrictions on the sale and conveyance of the property that ensure that the property will be preserved for lower-income housing for at least 45 years for owner-occupied housing units and will be sold or resold only to persons or families of very low-, low-, or moderate-income, as defined in Cal. Health and Safety Code § 50052.5.

RESIDENTIAL DEVELOPMENT. A project containing at least one residential unit, including mixed-use developments. For the purposes of this chapter, RESIDENTIAL DEVELOPMENT also includes housing development projects defined in Cal. Gov’t Code § 65915(i), including a subdivision or common interest development, as defined in Cal. Civil Code § 4100, approved by the city and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multi-family dwelling, as defined Cal. Gov’t Code § 65863.4(d), where the result of the rehabilitation would be a net increase in available residential units.

SENIOR CITIZEN HOUSING DEVELOPMENT. A residential development developed, substantially rehabilitated, or substantially renovated for, senior citizens that has at least 35 dwelling units and are deed restricted to require at least one resident be 55 years old or older.

(Ord. 2025-03 § 10, 2025; Ord. 2025-09 § 14, 2025)

Except as provided in § 17.42.060, this chapter shall apply only to new residential developments with five or more units, as defined herein, whether the lots or units will be offered for sale, for rent, or combination thereof and which meet any one of the following:

(A) The project site, or any portion thereof, is a Housing Element Opportunity Area.

(B) The project is being requested pursuant to Cal. Gov’t Code § 65852.24(b).

(C) The project includes a request to amend the general plan and/or zoning designation of the project site, or portion thereof.

(D) The project site is located in any of the following areas, as defined below and shown in the diagram:

(1) Station Square Transit Village Planning Area: All of the properties bounded by South Mayflower Avenue to the west, East and West Duarte Road to the south, South Shamrock Avenue to the east, and East and West Evergreen Avenue to the north.

(2) West Huntington Drive Corridor Planning Area (Retail Corridor Mixed-Use Zone): All of the properties that are within the Retail Corridor Mixed (RCM), which is generally enclosed by South 5th Avenue to the west, Encino Avenue to the east, and West Huntington Drive to the north.

(3) South Myrtle Avenue Corrido r Plannin g Area (Old Town Extensi on District Overlay) : All of the properti es bounded by South Primros e Avenue to the west, East and West Maple Avenue to the south, South Ivy Avenue to the east, and East and West Olive Avenue to the north.

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(Ord. 2025-03 § 10, 2025)

The following affordable housing requirements shall apply to any residential develop ment subject to this chapter pursuant to § 17.42.040.

(A) Dwelling units for rent.

(1) For residential develop ments with 20 units or fewer, 6% of the units shall be reserved for low-incom e households.

(2) For residential developments with 21 units to 50 units, 10% of the units shall be reserved for low-income households.

(3) For residential developments with 51 units or more, 15% of the units shall be reserved for low-income households.

(4) Fractional unit. Any fractional unit resulting from the calculation of the affordable housing requirement shall be rounded up to the next whole number.

(B) Dwelling units for sale.

(1) Ten percent of the units shall be reserved for moderate-income or lower-income households.

(2) Fractional unit. Any fractional unit resulting from the calculation of the affordable housing requirement shall be rounded up to the next whole number.

(Ord. 2025-03 § 10, 2025)

Notwithstanding § 17.42.040, the following types of residential units shall not be counted as units for the purpose of allocating the affordable housing requirements of this chapter:

(A) Accessory dwelling units and junior accessory dwelling units.

(B) Units provided pursuant to Cal. Gov’t Code §§ 65852.21 or 66411.7, also referred to as SB 9 (Chapter 162, Statues of 2021), including any successor statute.

(C) Residential developments that replace existing dwelling units with the same number of dwelling units that legally existed on the property as of June 3, 2025.

(D) Emergency shelters, single-room occupancy, transitional and supportive housing units, assisted living facilities, and residential care facilities.

(Ord. 2025-03 § 10, 2025)

Developers of a residential development that is subject to the provisions of this chapter, may choose to comply with the requirements of this chapter by either: paying an affordable housing in-lieu fee established by resolution of the City Council; or through a combination of paying such a fee and the providing of affordable units as required herein, instead of providing all required affordable units on-site.

(A) Eligibility. The following residential development projects shall be eligible to pay the affordable housing in-lieu fee:

(1) Residential development projects in which all the units are provided for sale.

(2) Residential development projects with 20 or fewer units that are provided for rent.

(B) Timing of payment. The fee required by this section shall be paid prior to the issuance of building permits for the residential development project.

(C) Basis for fee computation. Fees paid to fulfill the requirements of this section shall be computed based on the total size of all the new units to be constructed times the per square foot in-lieu fee, as required by the fee resolution adopted by the City Council. Total size shall be calculated based on gross dwelling unit floor area of all dwelling units, excluding private balconies, decks and patios.

(D) Affordable housing trust fund. Fees paid to fulfill the requirements of this chapter shall be placed in the city's affordable housing trust fund. The funds shall be used exclusively for residential development projects which target acutely low-, extremely low-, very low-, low-, and moderate-income households.

(Ord. 2025-03 § 10, 2025)

One of the following means of compliance may be proposed by the applicant as an alternative to providing on-site affordable units or payment of the housing in-lieu fee, subject to review and approval by the city decision authority in the city decision authority's sole discretion. Such review and approval may include such conditions as the decision authority deems necessary to ensure that the alternative means of compliance will achieve the goals of this chapter.

(A) Affordable units provided off-site. An applicant may provide (or may cause a third party to provide) affordable units off-site ("off-site units").

(1) Affordable units provided off-site must be located in the same general area of the city as the market rate units of the development as determined by the Director of Community Development.

(2) As part of the application submittal materials, if the applicant itself will provide the affordable units off-site, the applicant shall submit evidence that the applicant owns, leases (pursuant to an executed ground lease of at least 55 years from the date off-site units would be produced); or has an irrevocable option to purchase the site where the off-site affordable units are proposed to be located; alternatively, if applicant enters into an agreement with a third party to provide the affordable units off-site, then the applicant shall cause such third party to submit evidence that the third party owns, or has an irrevocable option to purchase, the site where the off-site affordable units are proposed to be located.

(3) The city shall not issue a building permit for the residential development project until the affordable units off-site, whether they are to be constructed by the applicant or third party, are under construction. Any agreement entered into by the applicant and a third party to construct affordable units off-site is subject to review and approval by the city and must contain a clause that allows the city to enforce the rights in the agreement.

(B) Conversion of market rate units to affordable. An applicant may propose to convert existing market rate units within the city to affordable units in an amount equal to or greater than the required on-site inclusionary housing requirement, including any needed rehabilitation to ensure compliance with building, health and safety standards. Market rate units that are converted must meet the location and other specifications of this chapter and shall be deed restricted as affordable for the periods specified in this section. Converted units must be completed and deed restrictions acceptable to the City Attorney must be recorded prior to the city's issuance of a certificate of occupancy for the residential development.

(Ord. 2025-03 § 10, 2025)

An applicant required to provide affordable units consistent with this chapter, which also applies for a density bonus under state law pursuant to Gov’t Code § 65915, may count affordable units toward both requirements. Affordable units required by § 17.42.050 shall not count towards base density for purposes of calculating density bonus.

(Ord. 2025-03 § 10, 2025)

Affordable units shall be designed and distributed within the residential development as follows:

(A) Number of bedrooms. Affordable units shall reflect the range of numbers of bedrooms provided in the residential development project as a whole. For purposes of this section, the range of number of bedrooms shall mean the percentage of units that contain a set number of bedrooms (e.g., if 20% of the total units in a project are two-bedrooms, then 20% of the affordable units shall be two-bedrooms). The Director shall have the authority to determine a project's compliance with this section.

(B) Comparable quality and facilities. Affordable units shall be constructed to the same quality and exterior design as the market-rate housing units. Additionally, the affordable units shall include the same laundry, recreation, and other facilities that are made available to the market-rate housing units.

(C) Access. In mixed-income multi-unit structures, the occupants of the affordable units shall have the same access to common entrances and any common areas including parking areas in that development as the occupants of the market-rate housing units.

(D) Size and finish. Subject to the requirements of this section and this code, affordable units may be smaller and have different interior finishes, appliances, and features than the market-rate units.

(E) Location. Affordable units shall be distributed throughout the residential development.

(F) Affordability period. Unless a different affordability period is specified by state or federal law, all affordable rental units shall be deed restricted to maintain their specified affordability for a minimum term of 55 years, and all affordable ownership units shall be deed restricted to maintain their specified affordability for a minimum term of 45 years.

(G) Ownership unit occupancy. Ownership units shall only be sold to and occupied by a household that meets the specified income requirements for each unit. Notwithstanding the foregoing, an ownership unit may be sold to a qualified nonprofit housing corporation and is intended to be sold to low-income households who participate in a special no-interest loan program.

(H) Rental unit occupancy. Rental units shall only be rented to and occupied by a household that meets the specified income requirement in this chapter or other applicable law. Rental periods shall not be less than 31 days.

(Ord. 2025-03 § 10, 2025)

Residential development projects that include an affordable housing requirement shall be reviewed by the review authority, as outlined in this code, designated to review the project.

(Ord. 2025-03 § 10, 2025)

The applicant of a residential development project approved pursuant to this chapter shall enter into a binding affordable housing agreement with the city or the city’s designee as specified in § 17.52.380.

(Ord. 2025-03 § 10, 2025; Ord. 2025-09 § 15, 2025)

No person shall change, develop, construct, enlarge, erect, locate, maintain, reconstruct, or use any land or structure in violation of this chapter or fail to comply with this chapter as required. Any structure altered, constructed, converted, enlarged, erected, maintained, moved, or set up contrary to the provisions of this chapter, or, any use of any land, structure, or premises conducted, established, maintained, or operated contrary to, or without complying with, the applicable provisions of this chapter, shall be unlawful, and are also deemed to be a public nuisance. Any violation of, or failure to comply with, any applicable agreement required by this chapter shall be deemed to be a violation of this chapter and enforceable as provided in this section, at the discretion of the City Attorney, in addition to any remedy provided in the agreement. Enforcement of this chapter shall be pursuant to §§ 17.52.340 and 17.52.350, or any other applicable provision of this code or state or federal law.

(Ord. 2025-03 § 10, 2025)