Chapter 6.04 — INCLUSIONARY HOUSING

The purpose of this chapter is to:

A. Encourage the development and availability of housing affordable to a broad range of
House-holds with varying income levels within the City as mandated by State Law,
California Government Code Sections 65580 et seq.;

B. Promote the City's goal to add affordable housing units to the City's housing stock in
proportion to the overall increase in new jobs and housing units;

C. Offset the demand on housing that is created by new development and mitigate
environmental and other impacts that accompany new residential and commercial
development by protecting the economic diversity of the City's housing stock, reducing
traffic, transit and related air quality impacts, promoting jobs/housing balance and reducing
the demands placed on transportation infrastructure in the region; and

D. Increase the supply of affordable ownership and rental housing in San Leandro as identified
in the established Housing Element Goal 53, Affordable Housing Development. Policy

The City Council finds and determines:

A. Both California and the City face a serious housing problem that threatens their economic
security. Lack of access to affordable housing has a direct impact upon the health, safety
and welfare of the residents of the City. The City will not be able to contribute to the
attainment of State housing goals or to retain a healthy environment without additional
affordable housing. The housing problem has an impact upon a broad range of income
groups including many who are not impoverished by standards other than those applicable
to California's and the City's housing markets, and no single housing program will be
sufficient to meet the housing need.

B. Rising land prices along with limited available land have been key factors in preventing
development of new affordable housing. New housing construction in the City which does
not include affordable units aggravates the existing shortage of affordable housing by
absorbing the supply of available residential land. This reduces the supply of land for
affordable housing and increases the price of remaining residential land. At the same time
new housing contributes to the demand for goods and services in the City, increasing local
service employment at wage levels which do not permit employees to afford housing in the
City. Providing the affordable units required by this ordinance will help to insure that part
of the City's remaining developable land is used to provide affordable housing.

C. The City's adopted Housing Element has determined that 35 percent to 40 percent of the
Households in the city have very low or low incomes. There is an affordability gap for low
and very low income Households in San Leandro for both rental and for sale units. Among

City groups identified in the Housing Element with especially significant housing needs
are large and extended families. Also, currently there are limited housing choices for young
adults or singles within San Leandro.

D. Development of new commercial projects and Market-Rate housing encourages new residents to move to the City. These new residents will place demands on services provided by both public and private sectors. Some of these employees earn incomes only adequate to pay for affordable housing, not market rate housing. Because affordable housing is in short supply within the City, these employees may be forced to live in less than adequate housing within the City, pay a disproportionate share of their incomes to live in adequate housing within the City, or commute ever-increasing distances to their jobs from housing located outside the City. These circumstances harm the City's ability to attain goals articulated in the City's General Plan.

E. A lack of new inclusionary units will have a substantial negative impact on the environment
and economic climate because: (1) housing will have to be built elsewhere, far from
employment centers and, therefore, commutes will increase, causing increased traffic and
transit demand and consequent noise and air pollution; and (2) City businesses will find it
more difficult to attract and retain the workers they need. Inclusionary housing policies
contribute to a healthy job and housing balance by providing more affordable housing close
to employment centers.

F. The California Legislature has required each local government agency to develop a
comprehensive, long-term general plan establishing policies for future development. As
specified in the Government Code (at Sections 65300, 65302(c), and 65583(c)), the plan
must: (1) "encourage the development of a variety of types of housing for all income levels,
including multifamily rental housing"; (2) "assist in the development of adequate housing
to meet the needs of low-and moderate-income Households"; and (3) "conserve and
improve the condition of the existing affordable housing stock, which may include
addressing ways to mitigate the loss of dwelling units demolished by public or private
action."

G. The citizens of the City seek a well-planned, aesthetically pleasing and balanced
community, with housing affordable to very low-, low-and moderate-income Households.
Affordable housing should be available throughout the City, and not restricted to a few
neighborhoods and areas. Therefore, our primary goal with this policy is to have diverse
housing. However, there may also be trade-offs where constructing affordable units at a
different site than the site of the principal project may produce a greater number of
affordable units without additional costs to the project applicant. Thus, the City finds that
in certain limited circumstances, the purposes of this chapter may be better served by
allowing the developer to comply with the inclusionary requirement through alternative
means, such as development of off-site housing or dedication of land. For example, if a
project applicant can produce a significantly greater number of affordable units off-site, it
may (but not always) be in the best interest of the City to permit the development of
affordable units at a different location than that of the principal project.

H. Federal and state funds for the construction of new affordable housing are insufficient to
fully address the problem of affordable housing within the City. Nor has the private housing
market provided adequate housing opportunities affordable to moderate-, low-and very
low-income Households.
(Ord. 2004-023 § 3; Ord. 2006-001 § 2; Ord. 2020-002 § 4)

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

"Affordable Rent" means monthly rent that does not exceed the following calculation for a
house-hold of the applicable income level (moderate-, low-or very low-income):

1. For low-income households: 1/12 of 30% of 60% area median income (AMI).

2. For very low-income rental households: 1/12 of 30% of 50% AMI.

"Affordable Ownership Cost" means a sales price that results in a monthly housing cost
(including mortgage payment, interest, property taxes, insurance, utilities, maintenance and
home association costs, if any) that does not exceed the following calculation for a Household of
the applicable income (moderate or low income).

1. For moderate-income households, 1/12 of 35% of 110% AMI.

2. For low-income owner households, 1/12 of 35% of 70% of AMI.

"Approval Authority" means a person or body that is authorized to approve the Housing
Development as specified in the San Leandro Zoning Code.

"Area Median Income" means the median household income of a geographic area of the state,
as annually estimated by the United States Department of Housing and Urban Development
pursuant to Section 8 of the Housing Act of 1937.

"City" means the City of San Leandro.

"Community Development Director" means the Community Development Director of the
City or his or her designee.

"Construction Cost Index" means the Engineering News-Record San Francisco Building Cost
Index. If that index ceases to exist, the Community Development Director will substitute another
Construction Cost Index, which, in his or her judgment, is as nearly equivalent to the original
index as possible.

"Developer" means any person, firm, partnership, association, joint venture, corporation, or any
entity or combination of entities, which seeks City approvals for all or part of a residential or
commercial development.

"Eligible Household" means a Household whose gross Household income does not exceed
the maximum specified in Section 6.04.108 Definitions and Section 6.04.112 Residential
Development for a given affordable unit.

"Eligible Household List" means the list of eligible households compiled by the City ranked by
preference. All San Leandro residents, City or school district employees, and persons employed
in San Leandro shall be given a preference and ranked higher on the list than other persons.

"For Sale Project" means a new residential project, or existing rental project or portion thereof,
which is intended to be sold to owner-occupants upon completion or conversion.

"Household" means one person living alone or two or more persons sharing residency.

"Household Income" means the combined adjusted gross income for all adult persons living in
a living unit as calculated for the purpose of this chapter.

"Inclusionary Housing Plan" means a plan for a residential development submitted by a developer as provided by Subsection B of Section 6.04.128 Compliance Procedures.

"Inclusionary Housing Agreement" means a written agreement between Developer and the
City as provided by Subsection C of Section 6.04.128 Compliance Procedures.

"Inclusionary Unit" means a dwelling unit that must be offered at Affordable Rent or available
at an Affordable Housing Cost to moderate-, low-and very low-income Households.

"Income: Low-Income Rental Household" means a Household whose gross annual income
does not exceed 60 percent of the area median income, adjusted for household size and revised
annually.

"Income: Low-Income Household" means a Household whose gross annual income does not
exceed 80 percent of the area median income, adjusted for household size and revised annually.

"Income: Moderate-Income Household" means a Household whose gross annual income does
not exceed 120 percent of the area median income, adjusted for household size and revised
annually.

"Income: Very Low-Income Household" means a Household whose gross annual income
does not exceed 50 percent of the area median income, adjusted for household size and revised
annually.

"Living Unit" means one or more rooms designed, occupied, or intended for occupancy as
separate living quarters, with cooking, sleeping, and bathroom facilities.

"Market-Rate Unit" means a dwelling unit in a Residential Development that is not an
Inclusionary Unit.

"Median Sales Price" means sales price in San Leandro as reported by Data Quick, California
Resources, or similar service on February and August of each year.

"Off-Site Unit" means an Inclusionary Unit that will be built separately or at a different location
than the main development.

"On-Site Unit" means an Inclusionary Unit that will be built as part of the main development.

"Residential Development" means the construction of a new residential project or the
conversion of an existing rental project to a for sale project that consists of two new dwelling
units or more as defined in the Zoning Code.

"Rental Project" means a residential project, or portion thereof, which is intended to be rented
to tenants upon completion.
(Ord. 2004-023 § 3; Ord. 2006-001 § 2; Ord. 2020-002 § 4)

For all Residential Developments, at least 15 percent of the total units must be Inclusionary Units restricted for occupancy by moderate-, low-or very low-income Households at either the Affordable Rent or Affordable Ownership cost appropriate for the income of the Household. The number of Inclusionary Units required for a particular project will be determined only once, at the time of tentative or parcel map approval, or, for developments not processing a map, prior to issuance of a building permit. If a change in the subdivision design results in a change in the total number of units, the number of Inclusionary Units required will be recalculated to coincide with the final approved project.

A. Calculation. For purposes of calculating the number of inclusionary units required by this chapter, any additional units authorized as a density bonus under California Government
Code Section65915(b)(1) or (b)(2) will not be counted in determining the required number
of Inclusionary Units. In determining the number of whole Inclusionary Units required, any
decimal fraction of 0.5 or more shall be rounded up to the nearest whole number.

B. Rental Project. The Inclusionary Units must be restricted to occupancy as follows:

Required Inclusionary Units

Total Units in Low Income Renter Very Low Income
Project Total (A + B) Household (A) Household (B)
4 to 9 1 1 0

10 to 16 2 1 1

17 to 23 3 1 2

24 to 29 4 2 2

30 to 36 5 2 3

37 to 43 6 2 4

44 to 49 7 3 4

50+ 15% of Total Units 40% of Total 60% of Total
Inclusionary Units Inclusionary Units

C. For Sale Project. The Inclusionary Units shall be restricted to occupancy as follows:

Required Inclusionary Units

Total Units in Moderate Income Low Income Owner
Project Total (A + B) Household (A) Household (B)
2 to 6 1 or in-lieu fee 1 or in-lieu fee 0

7 to 9 1 1 0

10 to 13 2 2 0

14 to 16 2 1 1

17 to 23 3 2 1

24 to 29 4 3 1

30 to 36 5 3 2

37 to 43 6 4 2

44 to 49 7 4 3

50+ 15% of Total Units 60% of Total 40% of Total
Inclusionary Units Inclusionary Units

D. Sequencing Inclusionary Units. To assure that the inclusionary units are occupied at the
beginning of the project, a provision outlining the sequencing of the units will be included
in the Inclusionary Housing Plan. An example of sequencing might be requiring the very low income inclusionary units to be occupied before moderate- or low-income or
affordable units constructed in proportion to construction of Market Rate Units.
(Ord. 2004-023 § 3; Ord. 2006-001 § 2; Ord. 2020-002 § 4)

The requirements of this chapter do not apply to:

A. The reconstruction of any structures that have been destroyed by fire, flood, earthquake or
other act of nature.

B. Developments that already have more units that qualify as affordable to moderate-, low-
and very low-income Households than this chapter requires.

C. Housing constructed by other government agencies.

D. Accessory dwelling units.
(Ord. 2004-023 § 3; Ord. 2017-003 § 4; Ord. 2020-002 § 4)

A. Design. Inclusionary Units built under this chapter shall generally be indistinguishable from the Market Rate Units and shall conform to the following standards:

1. Location within Project. Inclusionary Units shall not be clustered together in any
building, complex or area in the Residential Development, whenever feasible,

2. Infrastructure. The Inclusionary Units shall be comparable in infrastructure (including
sewer, water, and other utilities) to the Market Rate Units.

3. Exterior of Inclusionary Units. The construction quality and exterior design of the
Inclusionary Units shall be architecturally consistent with the Market Rate Units in
terms of design, articulation, quality of materials and finishes.

4. Interior of Inclusionary Units. Inclusionary Units may have different interior finishes
and features than the Market Rate Units provided the interior features are durable, of
good quality, and consistent with contemporary standards for new housing.

5. Size of Inclusionary Units.

a. Projects with Several Housing Products. Where a project consists of several
housing products with different lot sizes and lot configurations (e.g., mixture of
single-family detached, single-family attached, courtyard housing, townhouses,
and/or condominiums), the Inclusionary Units may be comparable to the
smallest or lowest priced Market Rate product. The size of the Inclusionary
Units may be up to 15 percent smaller in livable floor area than the average size
of the smallest or lowest priced Market Rate product. The average number of
bedrooms and bathrooms in the Inclusionary Units shall equal the average
number of bedrooms and bathrooms in the smallest or lowest priced Market
Rate product.

b. Projects with One Housing Product. Where a project consists of one housing
product with similar lot sizes and lot configurations, the size of the Inclusionary

Units may be up to 25 percent smaller in livable floor area than the average
size of the Market Rate Units. The average number of bedrooms and bathrooms
in the Inclusionary Units shall equal the average number of bedrooms and
bathrooms in the Market Rate Units; however, the Inclusionary Units do not
have to exceed three bedrooms with two and one-half bathrooms.

c. Exception to the Minimum Size and Housing Type. For single-family detached
projects, the size of the Inclusionary Units may be less than the minimum size
stipulated in Subsection A.5.a and b above, if such units are combined to appear
as a single-family home and the building is very similar in size and architectural
design to a larger single-family detached unit within the project. This is not an
exception to the bedroom and bathroom requirements as stipulated in Subsection
5.a and b above.

B. Timing. All Inclusionary Units must be constructed and occupied concurrently with or
prior to the construction and occupancy of Market-Rate Units or development or in
accordance with the approved Inclusionary Housing Plan sequencing requirements. In
phased developments, Inclusionary Units must be constructed and occupied in proportion
to the number of units in each phase of the Residential Development.

C. Duration of Affordability Requirement. Inclusionary Units produced under this ordinance
must be legally restricted to occupancy by Households of the income levels for which the
units were designated for a minimum of 55 years for rental units and 45 years for owner
occupied units.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

For Residential Developments of a for-sale project of six or fewer units, including Inclusionary Units, the requirements of this chapter may be satisfied by paying an in-lieu fee to the Affordable Housing Trust Fund as provided in Section 6.04.156 Affordable Housing Trust Fund. For Residential Developments with more than six units, including Inclusionary Units, the Approval Authority may allow the requirements on this chapter to be satisfied by paying an in-lieu fee in combination with one or more of the production alternatives described in Section 6.04.132 Off- Site Alternatives.

The fee shall be the Median Sales Price of a dwelling unit in San Leandro, (single family
detached, single family attached or condominium, whichever is applicable), minus the
Affordable Ownership Cost, multiplied by the fractional inclusionary unit required. The
fractional inclusionary unit shall be as follows:

Total Units in Project Fractional Inclusionary Unit Required

2 0.30

3 0.45

4 0.60

5 0.75

6 0.90

A. Timing of Payment. The fee shall be calculated based on the price and cost figures
established by the City at the time of building permit issuance. The fee must be paid prior
to the issuance of the first building permit for the Development with the option to establish
an alternative payment schedule if approved by the Community Development Director or
designee. For phased developments, payments may be made for each portion prior to the
issuance of a Building Permit for that phase. When payment is delayed, in the event of
default, or for any other reason, the amount of the in-lieu fee payable under this chapter
will be based upon the fee schedule in effect at the time the fee is paid.

B. Effect of No Payment. No final inspection for occupancy will be completed for any
corresponding Market-Rate Unit in a Residential Development unless fees required under
this chapter have been paid in full to the City.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

A. General. The Approval Authority shall approve, conditionally approve, or reject the Inclusionary Housing Plan concurrent with action on any tentative map, parcel map, or planning approval for any Residential Development for which this chapter applies. The subsequent Inclusionary Housing Agreement shall be approved by the Community Development Director prior to approval of a final map or building permit for the applicable Residential Development. This section does not apply to projects where the requirements of this chapter are satisfied by payment of an in lieu fee under Section 6.04.124 In-Lieu Fees.

B. Inclusionary Housing Plan. The Community Development Director must determine
completeness within 30 days of submittal of a complete application. If the Inclusionary
Housing Plan is incomplete, the Inclusionary Housing Plan will be returned to the
Developer along with a list of the deficiencies or the information required. No application
for a tentative map, parcel map or planning approval to which this chapter applies may be
deemed complete until an Inclusionary Housing Plan is submitted to the Community
Development Director. At any time during the review process, the Community
Development Director may require from the Developer additional information reasonably
necessary to clarify and supplement the application or determine the consistency of the
proposed Inclusionary Housing Plan with the requirements of this chapter. The
Inclusionary Housing Plan must include:

1. The location, type of structure (attached, semi-attached, or detached), proposed tenure
(for sale or rental), and size of the proposed Market-Rate Units, any commercial space
and/or Inclusionary Units and the basis for calculating the number of Inclusionary
Units;

2. A site plan (and floor plan for multi-story developments) depicting the location of the
Inclusionary Units;

3. The income levels to which each Inclusionary Unit will be made affordable;

4. The mechanisms that will be used to assure that the Inclusionary Units remain
affordable for the desired term, such as resale and rental restrictions, deeds of trust,
and rights of first refusal and other documents;

5. For phased development, a phasing plan that provides for the timely development of the number of Inclusionary Units proportionate to each proposed phase of
development as required by Section 6.04.120 Inclusionary Housing Standards;

6. A description of any incentives as indicated in Section 6.04.136 Incentives for Rental
and For-Sale On-Site Housing that are requested of the City;

7. Any alternative means designated in Section 6.04.132 Off-Site Alternatives proposed
for the Development along with information necessary to support the findings
required by the same Section for approval of such alternatives; and

8. Any other information reasonably requested by the Community Development
Director to assist with evaluation of the Plan under the standards of this chapter.

C. Inclusionary Housing Agreement. The Inclusionary Housing Agreement shall consist of
deeds of trust and other documents that address resale and rental restrictions, rights of first
refusal, and other items required by this subsection. Any changes to such documents which
materially alter any policy in the document, must be approved by the Community
Development Director prior to being executed with respect to any Residential Development
or affordable housing proposals. The form of the Inclusionary Housing Agreement will
vary depending on the manner in which the provisions of this chapter are satisfied for a
particular development. All Inclusionary Housing Agreements must include, at a minimum,
the following:

1. Description of the development, including whether the Inclusionary Units will be
rented or owner-occupied;

2. The number, size and location of very low-, low-or moderate-income units;

3. Inclusionary incentives by the City (if any), including the nature and amount of any
local public funding;

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

5. Provisions for monitoring the ongoing affordability of the units, and the process for
qualifying prospective resident Households for income eligibility.

D. Recording of Agreement. Inclusionary Housing Agreements that are acceptable to the Community Development Director must be recorded against owner-occupied Inclusionary Units and residential projects containing rental Inclusionary Units. Additional rental or resale restrictions, deeds of trust, rights of first refusal and/or other documents acceptable to the Community Development Director must also be recorded against owner-occupied Inclusionary Units. In cases where the requirements of this chapter are satisfied through the development of Off-Site Units, the Inclusionary Housing Agreement must simultaneously be recorded against the property where the Off-Site Units are to be developed. (Ord. 2004-023 § 3; Ord. 2006-001 § 2; Ord. 2020-002 § 4)

A. Developer Proposal. A Developer may propose and the Approval Authority may approve an alternative means of compliance with an Inclusionary Housing Plan as provided in Subsection B of Section 6.04.128 Compliance Procedures which may include, but is not limited to the following provisions:

1. Off-Site Construction. Inclusionary Units may be constructed off-site if the
Inclusionary Units will be located in an area where the Approval Authority finds that,
based on the availability of affordable housing, the need for such units is equal or
greater than the need in the area of the proposed development.

2. Land Dedication. In lieu of building Inclusionary Units, a Developer may choose to
dedicate to the City land suitable for the construction of Inclusionary Units as
determined by the Approval Authority. The site must be sufficient to allow
construction of the required inclusionary units plus 10 percent. Infrastructure, such as
sewer, water, and utilities, must be adjacent to the property.

3. Credit Transfers. In lieu of building Inclusionary Units, the Developer may contribute
funds to another project for the purpose of increasing the production of affordable
units within said project. The Approval Authority will determine the credit that the
developer may receive for the total number of affordable units produced over and
above the number of Inclusionary Units that would otherwise be required for said
project.

4. In-lieu Fee. The Approval Authority may accept an in-lieu fee to partially satisfy the
inclusionary requirement when such fee payment is combined with one or a
combination of the above alternatives. (Projects with six or fewer for-sale units may
fully satisfy the inclusionary requirement with an in-lieu fee per Section 6.04.124 In-
Lieu Fees.)

5. Combination. The Approval Authority may accept any combination of on-site
construction, off-site construction, land dedication, credit transfer, or in-lieu fees that
produces at least the number of Inclusionary Units that would otherwise be required
by this chapter.

B. Discretion. The Approval Authority may approve, conditionally approve or reject any alternative proposed by a Developer as part of an Inclusionary Housing Plan. Any approval or conditional approval must be based on a finding that the purposes of this chapter would be better served by implementation of the proposed alternative(s). In determining whether the purposes of this chapter would be better served under the proposed alternative, the Approval Authority shall consider: (1) whether implementation of an alternative would overly concentrate Inclusionary Units within any specific area and, if so, must reject the alternative unless the undesirable concentration of Inclusionary Units is offset by other identified benefits that flow from implementation of the alternative in issue; and (2) the extent to which other factors affect the feasibility of prompt construction of the Inclusionary Units on the property, such as costs and delays, the need for an appraisal, site design, zoning infrastructure, clear title, grading and environmental review. (Ord. 2004-023 § 3; Ord. 2020-002 § 4)

A. Additional incentives may be provided in accord with the Density Bonus Ordinance, Chapter 6.08 Residential Density Bonus. However, the density bonus affordable housing production requirements would be in addition to the requirements to provide inclusionary units.

B. The Approval Authority may consider flexibility in zoning standards for a Residential

Development such as, but not limited to, maximum density, lot size, lot width, yards, and parking in order to better accommodate the required Inclusionary Units if it is determined that such flexibility would result in a higher quality project and would improve the financial feasibility of the project. (Ord. 2004-023 § 3; Ord. 2020-002 § 4)

A. General Eligibility. No Household may occupy an Inclusionary Unit unless the City or its designee has approved the Household's eligibility. If the City or its designee maintains a list or identifies eligible Households, initial and subsequent occupants will be selected first from the list of identified Households, to the maximum extent possible, in accordance with any rules approved by the Community Development Director.

B. Occupancy. Any Household that occupies a rental Inclusionary Unit or purchases an
Inclusionary Unit must occupy that unit as a principal residence.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

A. Initial Sales Price. The initial sales price of the Inclusionary Unit must be set so that the eligible Household will pay an Affordable Ownership Cost.

B. Resale Agreement. The initial purchaser of each Inclusionary Unit shall execute an
instrument or agreement approved by the City restricting the sale of the Inclusionary Unit
in accordance with this chapter during the applicable use restriction period. Such
instrument or agreement shall be recorded against the parcel containing the Inclusionary
Unit and shall contain such provisions as the City may require to ensure continued
compliance with this chapter.

C. Resale. The maximum sales price permitted on resale of the Inclusionary Unit designated
for owner-occupancy shall be the lower of: (1) fair market value; or (2) the seller's lawful
purchase price, increased by the lesser of: (a) the rate of increase of Area Median Income
during the seller's ownership, or (b) the rate at which the consumer price index increased
during the seller's ownership. To the extent authorized in any resale restrictions or operative
Inclusionary Housing Agreement, sellers may recover, at time of sale, the market value of
capital improvements made by the seller and the seller's necessary and usual costs of sale,
and may authorize an increase in the maximum allowable sales price to achieve such
recovery feasible.

D. Changes in Title. Title in the Inclusionary Unit may change due to changes in circumstance,
including death, marriage and divorce. Except as otherwise provided, if a change in title is
occasioned by events that change the financial situation of the Household so that it is no
longer income-eligible, then the property must be sold to an income-eligible Household
within 180 days from the date of the event. Upon the death of one of the owners, title in the
property may transfer to the surviving joint tenant without respect to the income-eligibility
of the Household. Upon the death of a sole owner or all owners and inheritance of the
Inclusionary Unit by a non-income-eligible child or step child of one or more owners, there
will be a one-year compassion period between the time when the estate is settled and the
time when the property must be sold to an income-eligible Household. Inheritance of an
Inclusionary Unit by any other person whose Household is not income-eligible shall require resale of the unit to an income-eligible Household as soon as is feasible but not more than
180 days.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

Rental units will be offered to eligible Households at an Affordable Rent. The owner of rental Inclusionary Units shall certify each tenant Household's income to the City or City's designee at the time of initial rental and annually thereafter. The owner must obtain and review documents that demonstrate the prospective renter's total income, such as income tax returns or W-2s for the previous calendar year, and submit such information on a form approved by the City.

A. Selection of Tenants. The owners of rental Inclusionary Units may fill vacant units by
selecting income-eligible Households from the Section 8 Housing Choice Voucher Waiting
List maintained by the Alameda County Housing Authority or any other list maintained by
the City or City's designee. Alternatively, owners may fill vacant units through their own
selection process, provided that they publish notices of the availability of Inclusionary
Units according to guidelines established by the Community Development Director.

B. Annual Report. The owner shall submit an annual report summarizing the occupancy of
each Inclusionary Unit for the year, demonstrating the continuing income-eligibility of the
tenant. The Community Development Director may require additional information if he or
she deems it necessary.

C. Subsequent Rental to Income-Eligible Tenant. The owner shall apply the same rental terms
and conditions to tenants of Inclusionary Units as are applied to all other tenants, except as
required to comply with this chapter (for example, rent levels, occupancy restrictions and
income requirements) or with other applicable government subsidy programs.
Discrimination against persons receiving housing assistance is prohibited.

D. Changes in Tenant Income. If, after moving into an Inclusionary Unit, a tenant's Household
income exceeds the limit for that unit, the tenant Household may remain in the unit as long
as his or her Household income does not exceed 140 percent of the income limit. Once the
tenant's income exceeds 140 percent of the income limit, the following shall apply:

1. If the tenant's income does not exceed the income limits of other Inclusionary Units
in the Residential Development, the owner may, at the owner's option, allow the
tenant to remain in the original unit and redesignate the unit as affordable to
Households of a higher income level, as long as the next vacant unit is re-designated
for the income category previously applicable to the tenant's Household. Otherwise,
the tenant shall be given one year's notice to vacate the unit. If during the year, an
Inclusionary Unit becomes available and the tenant meets the income eligibility for
that unit, the owner shall allow the tenant to apply for that unit.

2. If there are no units designated for a higher income category within the Development
that may be substituted for the original unit, the tenant shall be given one year's notice
to vacate the unit. If within that year, another unit in the Residential Development is
vacated, the owner, at the owner's option, may allow the tenant to remain in the
original unit and raise the tenant's rent to Market-Rate and designate the newly
vacated unit as an Inclusionary Unit affordable at the income level previously
applicable to the unit converted to market rate. The newly vacated unit must be comparable in size (for example, number of bedrooms, bathrooms, square footage,
etc.) as the original unit.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

The requirements of this chapter may be adjusted or waived if the Developer demonstrates to the Approval Authority that there is not a reasonable relationship between the impact of a proposed Residential Development and the requirements of this chapter, or that applying the requirement of this chapter would take property in violation of the United States or California Constitutions.

A. Timing. To receive an adjustment or waiver, the Developer must make a showing when
applying for a first approval for the Residential Development, and/or as part of any appeal
that the City provides as part of the process for the first approval.

B. Considerations. In making a determination on an application to adjust or waive the
requirements of this chapter, the Approval Authority may assume each of the following
when applicable: (1) that the Developer is subject to the inclusionary housing requirement
or in-lieu fee; (2) the extent to which the Developer will benefit from inclusionary
incentives under Section 6.04.136 Incentives for Rental and For-Sale On-Site Housing; (3)
that the Developer will be obligated to provide the most economical Inclusionary Units
feasible in terms of construction, design, location and tenure; and (4) that the Developer is
likely to obtain other housing subsidies where such funds are reasonably available.

C. Modification of Plan. If the Approval Authority determines that the application of the
provisions of this chapter lacks a reasonable relationship between the impact of a proposed
residential project and the requirements of this chapter, or that applying the requirement of
this chapter would take property in violation of the United States or California
Constitutions, the Inclusionary Housing Plan shall be modified, adjusted or waived to
reduce the obligations under this chapter to the extent necessary to avoid an
unconstitutional result. If the Approval Authority determines no violation of the United
States or California Constitutions would occur through application of this chapter, the
requirements of this chapter remain applicable.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

A. The Trust Fund. There is hereby established a separate Affordable Housing Trust Fund ("Fund"). This Fund shall receive all fees contributed under Section 6.04.124 In-Lieu Fees, as required in Section 66606(a) of the California Government Code. The Fund may also receive monies from other sources.

B. Purpose and Limitations. Monies deposited in the Fund must be used to increase and
improve the supply of housing affordable to moderate-, low-, and very low-income
Households in the City. Monies may also be used to cover reasonable administrative or
related expenses associated with the administration of this chapter.

C. Administration. The fund shall be administered by the Community Development Director,
who may develop procedures to implement the purposes of the Fund consistent with the
requirements of this chapter and any adopted budget of the City.

D. Expenditures. Fund monies shall be used in accordance with City's Housing Element,

Consolidated Plan or subsequent plan adopted by the City Council to construct or convert
to affordable housing or assist other governmental entities, private organizations or
individuals to do so. Permissible uses include, but are not limited to, assistance to housing
development corporations, equity participation loans, grants, pre-home ownership co-
investment, pre-development loan funds, participation leases or other public-private
partnership arrangements. The Fund may be used for the benefit of both rental and owner-
occupied housing. The Fund may also be used to administer the City's housing monitoring
program to assure long term compliance with all affordable housing agreements.

E. Annual Report. The Community Development Director shall provide a report to the City
Council on the status of activities undertaken with the Fund as provided by Section
66006(b) of the California Government Code. The City Council shall review the
information made available to the public at the next regularly scheduled public meeting,
not less than 15 days after this information is made available to the City Council and the
public. Notice of the time and place of the meeting, including the address where this
information may be reviewed, shall be mailed, at least 15 days prior to the meeting, to any
interested party who files a written request with the City for mailed notice of the meeting.

The report shall include a statement of income, expenses, disbursements and other uses of
the Fund. The report should also state the number and type of inclusionary units constructed
or assisted during that year and the amount of such assistance. The report will evaluate
the efficiency of this chapter in mitigating the City's shortage of affordable housing and
recommend any changes to this chapter necessary to carry out its purposes, including any
adjustments to the number of units to be required.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

A. Penalty for Violation. It shall be a misdemeanor to violate any provision of this chapter. Without limiting the generality of the foregoing, it shall also be a misdemeanor for any person to sell or rent to another person an affordable unit under this chapter at a price or rent exceeding the maximum allowed under this chapter or to sell or rent an inclusionary unit to a Household not qualified under this chapter. It shall further be a misdemeanor for any person to provide false or materially incomplete information to the City or to a seller or lessor of an Inclusionary Unit to obtain occupancy of housing for which he or she is not eligible.

B. Legal Action. The City may institute any appropriate legal actions or proceedings
necessary to ensure compliance with this chapter, including: (1) actions to revoke, deny or
suspend any permit, including a building permit, certificate of occupancy, or discretionary
approval; (2) actions to recover from any violator of this chapter civil fines, restitution to
prevent unjust enrichment from a violation of this chapter, and/or enforcement costs,
including attorneys fees; (3) eviction or foreclosure; and (4) any other appropriate action
for injunctive relief or damages. Failure of any official or agency to fulfill the requirements
of this chapter shall not excuse any person, owner, Household or other party from the
requirements of this chapter.
(Ord. 2004-023 § 3; Ord. 2020-002 § 4)

The requirements of this chapter are minimum and maximum requirements, although nothing in this chapter limits the ability of a private person to waive his or her rights or voluntarily undertake greater obligations than those imposed by this chapter. (Ord. 2004-023 § 3; Ord. 2020-002 § 4)

Any decision of the Approval Authority pursuant to this chapter may be appealed in accordance with the provisions in Chapter 5.20 Appeals of the Zoning Code. (Ord. 2004-023 § 3; Ord. 2020-002 § 4)