Oakland Municipal Code Art. III On-Site and Off-Site Affordable Housing Options

A. On-Site Affordable Housing Mitigation Measure. An applicant for a Development Project that is otherwise subject to the impact fee will not be subject to the impact fee if the applicant will be providing affordable housing units within the Development Project as set forth below.

1. In all such cases the applicant shall execute a written agreement with the City setting forth the number, type, location, approximate size and construction schedule of all such affordable housing units, restricting the occupancy and rent or sale price of such units, and setting forth other terms and conditions as required for ensuring compliance with this Section. Rental units shall remain affordable for fifty-five (55) years or for the life of the Development Project, whichever is greater. Said agreement shall be recorded against the affordable housing units as covenants running with land, senior in priority to any private liens or encumbrances except as provided below, and shall be enforceable by the City against the applicant or the applicant's successors-in-interest to the property for the full affordability term. Additional restrictions, deeds of trust, rights of first refusal, or other instruments may be required by the City Administrator as reasonably needed to enforce these restrictions. The City Administrator shall have the authority to subordinate such restrictions to other liens and encumbrances if he or she determines that the financing of the affordable housing units would be infeasible without said subordination.

2. Proposals for the provision of on-site affordable housing units as homeownership housing must comply with the City of Oakland Affordable Homeownership Development Program Guidelines. The applicant shall agree to, and the City shall ensure that, the initial occupant of all for-sale units are very low-, low-, or moderate-income households, as required, and that the units are offered at an affordable housing cost.

3. All affordable housing units must be reasonably dispersed throughout the Development Project, be of the same size, and contain, on average, the same number of bedrooms as the market-rate units in the Development Project. All affordable housing units must be comparable with the design or use of market-rate units in terms of appearance, amenities, materials and finish quality.

4. All affordable housing units may be occupied only by very low-, low-, or moderate-income households as applicable. For rental units, the owner of any units produced under this option must report to the City annually on the occupancy and rents charged for the affordable housing units.

5. All affordable housing units in a Development Project and phases of a Development Project must be constructed concurrently with or prior to the construction of the market-rate units, unless the City Administrator determines that extenuating circumstances exist.

B. Number of Affordable Housing Units Required for On-Site Mitigation. For applications for Development Projects that include affordable housing units, the total number of required affordable housing units for such Development Project that will be needed to exempt the Development Project from the impact fee shall be based upon the impact fee zone in which the project is located.

Zone 1 and Zone 2:

Number of Moderate Income Units = Total Number of Housing Units x fifteen percent (15%); or

Number of Low Income Units = Total Number of Housing Units x twelve percent (12%); or

Number of Very Low Income Units = Total Number of Housing Units x ten percent (10%); or

Combination of Moderate, Low, and Very Low Income Units = Total Number of Housing Units x fifteen percent (15%); or

Combination of Low and Very Low Income Units = Total Number of Housing Units x twelve percent (12%).

Zone 3:

Number of Moderate Income Units = Total Number of Housing Units x fifteen percent (15%); or

Number of Low Income Units = Total Number of Housing Units x ten percent (10%); or

Number of Very Low Income Units = Total Number of Housing Units x five percent (5%); or

Combination of Moderate, Low, and Very Low Income Units = Total Number of Housing Units x fifteen percent (15%); or

Combination of Low and Very Low Income Units = Total Number of Housing Units x ten percent (10%).

"Total Number of Housing Units" means the total number of units proposed for the Development Project, including the affordable housing units, but not including units added by a density bonus awarded pursuant to this Section or any section within Chapter 17.107 of the Oakland Planning Code or Government Code Sections 65915—65918.

1. An applicant for a Development Project subject to this Section may provide less than the percentage of market rate units indicated above as affordable housing units and pay a proportionately reduced impact fee.

2. In the event the application of this Section to an applicable Development Project creates an obligation to construct a fractional affordable housing unit, that fraction shall be either converted into a fractional impact fee, or shall require an additional affordable housing unit, to be determined at the discretion of the City Administrator.

3. Along with production of the affordable housing units, the applicant may take advantage of the Chapter 17.107 Density Bonus and Incentive Procedure in the Oakland Planning Code as well as the State Density Program in Government Code Sections 65915—65918.

4. For those projects providing moderate-income rental units the applicant may take advantage of the following provisions in Chapter 17.107 of the Oakland Planning Code that otherwise apply to moderate-income for sale units: Section 17.107.040, Table 17.107.03, Section 17.107.080, Section 17.107.090 and Table 17.107.05; all other requirements in Chapter 17.107 still apply.

5. For development projects that utilize the Zoning Incentive Program in O.M.C. Section 17.101K.110, the development project is still required to pay the Affordable Housing Impact Fee on the housing units that are part of the base project as well as the bonus housing units that were received from the Zoning Incentive Program. The development project will not have to pay the Affordable Housing Impact Fee on the affordable units that are built as well as any bonus market rate units received from the density bonus by providing the affordable units.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13812, § 6(Exh. D), 7-30-2024; Ord. No. 13365, § 4, 5-3-2016)

An applicant for a Development Project that is otherwise subject to the impact fee will not be subject [to] the impact fee if the applicant is providing affordable housing units in the numbers set forth in Subsection 15.72.100.B. at a site other than the location of the Development Project; provided that such off-site option is subject to the conditions and restrictions set forth below.

1. City Council Approval. Any proposal by an applicant to provide off-site development of affordable housing units requires approval of the City Council. The off-site affordable housing must be located within one-half (½) mile of the Development Project, unless an exception is approved by the City Council.

2. Timing of Affordable Housing. In the event that an applicant chooses the off-site option, the applicant must submit satisfactory evidence to the City Administrator of site control and issuance of all necessary planning and zoning permits and approvals under Title 17 of the Oakland Planning Code for the project intended to produce the affordable housing units, prior to issuance of the building permit for the Development Project. The applicant must obtain a building permit for the affordable housing project prior to the issuance of the temporary certificate of occupancy or the certificate of occupancy, whichever occurs first, for the Development Project. The applicant must secure a certificate of occupancy for all affordable housing units no later than eighteen (18) months from the issuance of the temporary certificate of occupancy or the certificate of occupancy, whichever occurs first, for the Development Project.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13365, § 4, 5-3-2016)