Poway Municipal Code Art. III Inclusionary Housing Requirements

As used in this article:

“Affordable to moderate-income households”

means average monthly housing payments, during the first calendar year of a household’s occupancy, including property taxes, homeowners’ insurance and homeowners’ association dues, if any, which are equal to or less than one-twelfth of 35 percent of 110 percent of area median income, adjusted for family size. Affordable housing cost shall be set based on presumed occupancy levels of one person in a studio unit, 1.5 persons in a one bedroom unit, three persons in a two bedroom unit and 1.5 additional persons for each additional bedroom thereafter. Down payment shall be based on five percent of the affordable housing price.

“Affordable to low-income households”

means average monthly housing payments, during the first calendar year of a household’s occupancy, including property taxes, homeowners’ insurance and homeowners’ association dues, if any, which are equal to or less than one-twelfth of 30 percent of 80 percent of area median income, adjusted for family size. Affordable housing cost shall be set based on presumed occupancy levels of one person in a studio apartment, 1.5 persons in a one bedroom unit, three persons in a two bedroom unit and 1.5 additional persons for each additional bedroom thereafter. Down payment shall be based on five percent of the affordable housing price.

“Affordable to very low-income households”

means monthly rent, including utility allowances as published from time to time by the San Diego County Housing Authority and all fees for housing services, which are equal to or less than one-twelfth of 30 percent of 50 percent of area median income, adjusted for family size. Affordable rent shall be based on presumed occupancy levels of one person in a studio apartment, 1.5 persons in a one bedroom unit, three persons in a two bedroom unit, and 1.5 additional persons for each additional bedroom thereafter.

“Construction cost index”

means the Engineering News Record Building Cost Index. If that index ceases to exist, the City Manager shall substitute another construction cost index, which in his or her judgment is as nearly equivalent to the original index as possible.

“Deed restriction”

means an attachment to the grant deed to an affordable unit, which purpose is to assure continuing affordability of the unit over time. The term of the deed restriction shall not be less than 45 years for ownership units and 55 years for rental units.

“In-lieu fee”

means a fee paid as an alternative to the provision of inclusionary units for new residential development.

“Median income”

means the median household income as established by the Department of Housing and Urban Development for the San Diego Standard Metropolitan Area.

(Ord. 424, 1993; Ord. 595 § 2, 2003; Ord. 701 § 3, 2009; Ord. 816 § 3, 2018)

A. Affordable Housing Set Aside.

1. New rental residential development shall provide that 15 percent of the units created shall be affordable to very-low-income households and the continued affordability shall be guaranteed by recorded deed restriction providing such set aside. Said deed restriction shall not be less than 55 years. Such a development project which does not so provide shall be denied as inconsistent with the Housing Element of the General Plan.

2. New ownership residential development shall provide that 15 percent of the units created shall be affordable to low-income households or 20 percent of the units created shall be affordable to moderate-income households and the continued affordability shall be guaranteed by recorded deed restriction providing such set aside. Said deed restriction shall be not less than 45 years. Such a development project, which does not so provide shall be denied as inconsistent with the Housing Element of the General Plan.

3. Inclusionary units may be provided either on-site or at a different location within the City of Poway.

4. Inclusionary units should be reasonably disbursed throughout the development, should contain on the average the same number of bedrooms as the market-rate units in the development, and should be compatible with the design and use of remaining units in terms of appearance, materials and finish quality. The applicant shall have the option of reducing the interior amenity levels and square footage of inclusionary units, provided all units conform to the requirements of the City Building and Housing Codes.

B. Development Incentives.

1. Any development that includes inclusionary units shall be entitled to a density bonus and concessions or incentives as allowed pursuant to the affordable housing incentives contained in Article V of this chapter.

2. Developers may seek to utilize any available Federal and State subsidies in tandem with inclusionary units. The City shall provide assistance to developers to obtain such subsidies.

3. The City shall exercise its discretionary power with regard to zoning, planning and subdivision requirements related to minimum lot size, floor areas, parking, open space requirements, streets, sidewalks, the provision of other public improvements, and permit fees in such a manner as to facilitate the economic feasibility of housing projects with inclusionary units.

(Ord. 424, 1993; Ord. 595 § 2, 2003; Ord. 701 § 4, 2009)

A. The developer of for-sale or rental housing may, in lieu of providing required inclusionary housing on site or off site, pay a fee to the City as established by City Council resolution from time to time.

B. Fractional unit requirements shall be met through the payment of a proportional share of the in-lieu fee as established by City Council resolution from time to time.

C. Any payment made pursuant to this section shall be deposited in a reserve account in the general fund to be used only for the development or acquisition of very-low-, low-, and moderate-income housing.

(Ord. 424, 1993; Ord. 595 § 2, 2003; Ord. 683 § 69, 2008; Ord. 816 § 4, 2018)

A. An applicant of any project subject to the requirements of this article may appeal to the City Council for a reduction, adjustment or waiver of the requirements based upon the absence of any reasonable relationship or nexus between the impact of the development and either the amount of the fee charged or the inclusionary requirement.

B. Any such appeal shall be made in writing and filed with the City Clerk not later than 10 days before the first public hearing on any discretionary approval or permit for the development, or if no such discretionary approval or permit is required, or if the action complained of occurs after the first public hearing on such permit or approval, then the approval shall be filed within 10 days after payment of the fees objected to. The appeal shall set forth in detail the factual and legal basis for the claim of waiver, reduction or adjustment. The City Council shall consider the appeal at the public hearing on the permit application or at a separate hearing within 60 days after the filing of the appeal, whichever is later. The appellant shall bear the burden of presenting substantial evidence to support the appellant’s position. The decision of the City Council shall be final. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment, or reduction of the fee or inclusionary requirement.

(Ord. 642 § 1, 2006; Ord. 701 § 5, 2009)