Division 8 — INCLUSIONARY HOUSING

(A) This chapter is adopted pursuant to the city's police powers, as set forth in the California Constitution, and the city's Housing Element, as set forth in the Santa Paula General Plan, for the purpose of increasing affordable housing within the city's jurisdiction for very low and low income households.

(B) This chapter is also intended to further the economic integration and geographic balance of affordable housing in the city's developing areas.

(C) This chapter is intended to establish standards and procedures that will require developers to construct affordable housing for in projects.

(D) In addition, this chapter is adopted to implement the Act's requirements regarding affordable housing as set forth in the Plan and Cal. Health & Safety Code § 33413. In doing so, the City Council intends to implement the Act; codify existing practices; contribute to the city's need for affordable housing; meet the city's RHNA allocations; and ensure longterm affordability of dwelling units. Nothing in this chapter is intended to, nor will it, conflict or supersede with the Act. Rather, the provisions in this chapter affecting plan area development are intended to supplement and implement the Act.

(Ord. 1142, passed 11-7-05)

Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this chapter:

ACT means the Community Redevelopment Law set forth at Cal. Health & Safety Code §§ 33000, et seq. AFFORDABLE HOUSING means dwelling units made available to low, very low, and (if within the Plan area) moderate income households whether or not required by this chapter.

AFFORDABLE HOUSING TRUST FUND means an account established pursuant to this chapter into which inlieu fees, as described in this chapter, will be deposited. The funds of the account cannot be commingled with the city's other funds.

AFFORDABLE HOUSING COST has the same meaning as set forth in Cal. Health & Safety Code § 50052.5, and any successor statute or regulation.

AFFORDABLE RENT has the same meaning as set forth in Cal. Health & Safety Code § 50053, and any successor statute or regulation.

AREA MEDIAN INCOME has the same meaning as set forth in Cal. Health & Safety Code § 50093, and any successor statute or regulation.

DEVELOPER means a person seeking city approval for a project.

DIRECTOR means the City Manager or designee.

DWELLING UNIT means one or more rooms, designed, occupied, or intended for occupancy as separate living quarters, with full cooking, sleeping, and bathroom facilities for the exclusive use of a single household.

GMA means a growth management allocation issued in accordance with the city Growth Management Ordinance as set forth in this code.

HOUSEHOLD means one person living alone or two or more persons sharing residency whose income is considered for housing payments.

HUD means the United States Department of Housing and Urban Development.

INCLUSIONARY HOUSING UNIT means a dwelling unit built pursuant to the requirements of this chapter and made available to low or very low income households or, if in the plan area, to moderate income households. Unless otherwise specified, this term includes both on-site and off-site inclusionary housing.

INCOME ELIGIBILITY means the gross annual household income considering household size and number of dependents, income of all wage earners, elderly or disabled family members, and all other sources of household income.

IN-LIEU FEE means a fee paid to the city by a developer in-lieu of providing, through direct construction and deed restrictions, the inclusionary housing units otherwise required by this code. The in-lieu fee must be deposited into the Affordable Housing Trust Fund and must be used for constructing affordable housing. Such fees may be pooled with other funds to provide additional affordable housing.

LOW-INCOME HOUSEHOLDS mean households where the gross annual income does not exceed 80% of the county median household income as defined in Cal. Health & Safety Code § 50079.5, and any successor statute or regulation.

MARKET RATE UNIT means a dwelling unit where the rental rate or sales price is not restricted by this code. MODERATE INCOME HOUSEHOLD means a household with an income not exceeding qualifying limits set for "persons and families of low or moderate income" in Cal. Health & Safety Code § 50093, and any successor statute or regulation;

OFF-SITE INCLUSIONARY HOUSING UNIT means inclusionary housing units constructed on real property within the city's jurisdiction other than real property affected by a project.

ON-SITE INCLUSIONARY HOUSING UNIT means inclusionary housing units constructed on real property affected by a project.

PLAN AREA means the boundaries depicted in the Santa Paula Redevelopment Plan adopted by Resolution No. 9010 on July 9, 1990, as amended and updated in accordance with the Act;

PLAN AREA PROJECT means any proposal for constructing seven or more dwelling units within the plan area that require discretionary city approval pursuant to this code.

PROJECT means any proposal for constructing ten or more dwelling units requiring discretionary city approval pursuant to this code.

PUBLIC OFFICIAL means the city's elected and appointed officials and those employees who have, because of their position, policy-making authority or influence over city housing programs. The term includes a public official's

immediate family members and business partners.

RHNA means Regional Housing Needs Allocation as calculated by the California Department of Housing and Community Development.

VERY LOW-INCOME HOUSEHOLDS means households where the gross annual income does not exceed 50% of the county median household income as defined in Cal. Health & Safety Code § 50105, and any successor statute or regulation.

(Ord. 1142, passed 11-7-05)

(A) Except as otherwise provided, developers must provide one of the following as a condition for project approval:

• (1) Reserve at least 15% of all dwelling units in a project for low-income households;

• (2) Reserve at least 10% of all dwelling units in a project for very low-income households;

• (3) Construct off-site inclusionary housing for low-income households equivalent to 17% of all dwelling units in a project;

(4) Construct off-site inclusionary housing for very low-income households equivalent to 12% of all dwelling units in a project; or

• (5) Pay an in-lieu fee as established by City Council resolution.

(B) This section does not apply to plan area projects. For projects located both inside and outside the plan area, this section applies only to dwelling units located outside the plan area.

(Ord. 1142, passed 11-7-05; Am. Ord. 1187, passed 3-3-08)

(A) For all new plan area projects, at least 15% of the total units must be inclusionary housing units restricted for occupancy by moderate, low, or very low-income households.

(B) The number and type of inclusionary housing units required for a particular plan area project will be determined at the time of granting GMAs.

(C) At least 40% of the required inclusionary housing units within the plan area project must be restricted to very low-income households. The remaining 60% may be restricted to moderate or low- income households.

(D) Developers cannot pay an in-lieu fee to satisfy the requirements of this chapter for a plan area project.

(E) For plan area projects, should any requirement of the Act conflict with the requirements of this chapter, the Act's requirements will control.

(Ord. 1142, passed 11-7-05; Am. Ord. 1187, passed 3-3-08)

This chapter does not apply to:

(A) The reconstruction of any structures destroyed by acts of nature such as fire, flood, or earthquake where reconstruction does not increase the number of residential dwelling units by ten or more for projects or seven or more for plan area projects;

(B) Residential building additions, repairs, or remodels if such work does not increase the number of existing dwelling units to ten or more for projects or seven or more for plan area projects; or

(C) Except as otherwise provided for plan area projects, any project for which a density bonus was granted pursuant to Cal. Gov't Code § 65915.

(Ord. 1142, passed 11-7-05)

Except as otherwise provided for plan area projects, the actual number of inclusionary housing units that a developer must construct in accordance with this chapter is calculated as follows:

(A) The percentage of inclusionary housing units required by this chapter will be applied to the total number of dwelling units proposed for a project;

(B) At the developer's option, any remainder resulting from the calculation in this section may be converted into an in-lieu fee or rounded up to the nearest whole number;

(C) For example, and without limitation, if a project has a total of 11 dwelling units and the developer opts to construct inclusionary housing units for very low-income households, then the developer would be required to construct 1.1 inclusionary housing units (10% multiplied by 11 dwelling units). Because of the remainder, the developer could either construct an additional inclusionary housing unit or convert the remainder into an in-lieu fee payable to the city as provided in this chapter.

(Ord. 1142, passed 11-7-05)

(A) When calculating the number of required inclusionary units for plan area projects, any additional units authorized as a density bonus pursuant to this code will not be counted in determining the required number of inclusionary units.

(B) In general, any decimal fraction resulting from a calculation greater than 0.5 will be rounded up to the nearest whole number and decimal fractions less than 0.5 will be rounded down to the nearest whole number.

(C) For very low-income household inclusionary units, any decimal fraction of one-tenth (0.1) or greater will be rounded up to the nearest whole number.

(Ord. 1142, passed 11-7-05)

(A) To meet the requirements of this chapter, a developer may obtain Planning Commission approval for an affordable housing plan. Except as otherwise provided for plan area projects, an affordable housing plan may include a combination of on-site and off-site inclusionary housing units; in-lieu fees; or other proposal designed to provide new affordable housing.

(B) For plan area projects, an affordable housing plan may include a combination of on-site and off-site inclusionary housing units; or other proposal designed to provide new affordable housing in accordance with the Act. Housing plans proposing off-site inclusionary housing units must provide at least two off-site inclusionary housing for every one required on-site inclusionary housing unit in accordance with Cal. Health & Safety Code § 33413 of the Act.

(C) The Planning Commission may approve an affordable housing plan upon making the following findings:

(1) The affordable housing plan meets or exceeds the city's objectives for affordable housing whether set forth in this chapter, this code, the Santa Paula General Plan, or other City Council actions;

(2) That it is impracticable for a project to strictly comply with the percentages set forth above for inclusionary housing units because of the size, location, financing, or other restrictions on the project; and

(3) That approving the affordable housing plan would be consistent with the purpose of this chapter. (Ord. 1142, passed 11-7-05)

(A) Inclusionary housing units must be reserved for very low, low, or (if within the plan area) moderate-income households and be provided at affordable housing costs. The maximum allowable affordable rents and affordable housing cost for inclusionary housing units will be adopted annually by City Council resolution. Such prices must be based on the number of bedrooms and made with reference to the income limits for Ventura County as determined by HUD.

(B) For inclusionary housing units available for rent, affordable housing costs must not exceed 30% of 50% of area median income for Ventura County adjusted by family size appropriate for the dwelling unit.

(C) For inclusionary housing units available for sale, affordable housing costs must not exceed 30% of 80% of the area median income adjusted for family size appropriate for the unit.

(D) For inclusionary housing units provided in the project area available for rent, affordable housing costs must not exceed 30% of 110% of the area median income for Ventura County adjusted by family size appropriate for the unit. (E) For inclusionary housing units provided in the project area available for sale, affordable housing costs must not exceed 35% of 110% of the area median income for Ventura County adjusted by family size appropriate for the unit. (F) Affordable housing costs will be based upon the income limits for Ventura County as determined by the California Department of Housing and Community Development per Cal. Health & Safety Code §§ 50053 and 50052.5.

(G) Except as otherwise provided for plan area projects, all inclusionary housing units must generally be reserved for occupancy by very low, low, or (if within the plan area) moderate-income households between 45 and 55 years but in no event less than 30 years after the city issues certificates of occupancy. Such reservation must be accomplished by a recorded deed restriction or other long-term legal mechanism in a form approved by the City Attorney.

(H) Except as otherwise required, inclusionary housing units must be constructed concurrently with, or before, construction of market rate units. Certificates of occupancy issued for inclusionary housing units within any clearly defined construction phase must be obtained before the same percentage of market rate units are complete and certificates of occupancy are issued. Such certificates of occupancy will not be issued for the last percentages of market rate units until all the required inclusionary units are fully complete and certified for occupancy.

(I) All inclusionary units built on the project site must be reasonably distributed throughout the project as approved by the Planning Commission, must be constructed of similar materials and both interior and exterior must be finished at a comparable quality as the market rate units.

(Ord. 1142, passed 11-7-05)

Upon application by a developer and for good cause shown, the Planning Director may, but is not required to, allow a developer to delay construction of inclusionary housing units. Any such approval is conditioned upon the developer providing sufficient security, in a form approved by the City Attorney, to insure performance under this chapter. Without limitation, good cause may include funding restrictions for projects involving nonprofit corporations or use of public agency monies.

(Ord. 1142, passed 11-7-05)

(A) Except for plan area projects, developers may pay a fee instead of providing on-site or off-site inclusionary housing units as set forth in this chapter. In-lieu fees will be based upon the methodology for calculating the in-lieu fee on a project-by-project basis as determined by City Council resolution.

(B) The City Manager, or designee, must create and administer an Affordable Housing Trust Fund. The City Council must use the Fund exclusively to provide for affordable housing and for reasonable costs associated with the development of affordable housing. In-lieu fees collected pursuant to this chapter must be deposited into the Affordable Housing Trust Fund.

(C) Any fee required pursuant to this chapter must be paid in full before the city issues a certificate of occupancy for any dwelling unit in the project.

(Ord. 1142, passed 11-7-05)

(A) Except in the plan area, only very low and low-income households are eligible to occupy inclusionary housing units. In the plan area, moderate- income households are also eligible to occupy inclusionary housing units in conformance with this chapter. The Director is authorized to establish administrative policies and procedures to determine income eligibility, minimum and maximum occupancy standards and other eligibility criteria in accordance with this chapter.

(B) Public officials are ineligible to occupy any inclusionary housing unit during the term of applicable rental or sales price limits.

(Ord. 1142, passed 11-7-05)

(A) For owner-occupied inclusionary housing units, title may transfer because of changes in circumstance, including, without limitation, death, marriage, and divorce. Except as otherwise provided, if such a changed circumstance results in a title transfer which causes a household to become ineligible for an inclusionary housing unit, then the inclusionary housing unit must be sold to an eligible household within 180 days after title transfer occurs. (B) Upon the death of one owner, title in the property may transfer to the surviving joint tenant without respect to the income-eligibility of the household.

(C) If, following the death of all owners of an inclusionary housing unit, title transfers to the child or children of such owners, the inclusionary housing unit must be sold to an eligible household within one year after title transfer occurs if the child or children are ineligible to own the inclusionary housing unit as determined by this chapter.

(D) 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 from when the estate is settled.

(Ord. 1142, passed 11-7-05)

(A) A written agreement must be executed between the developer and city that specifies the number, type, and location of all inclusionary housing units; the formula for determining rental rates or sales prices of all inclusionary housing units; the method of providing proof of eligibility as a very low, low, or (if within the plan area) moderate-

income household, and such additional information as may be required by the city to determine the developer's compliance with this chapter.

(B) For projects, such an agreement must specify that the required inclusionary housing units must be reserved for, and rented or sold to, very low and low-income households. Further, the term of such an agreement must generally be between 45 and 55 years, but in no event less than 30 years.

(C) For plan area projects, such an agreement must specify that the required units must be reserved for, and rented or sold to, very low, low, and moderate- income households. Further, the term of such agreements must be at least 55 years for rental dwelling units and 45 years for owner occupied dwelling units.

• (D) The agreement must be in a form approved by the City Attorney, and, upon execution of the agreement, it must be recorded with the Ventura County Recorder's office.

(E) A new deed restriction must be executed and recorded upon each change of ownership to maintain the restrictions on inclusionary units before the term for such restrictions expires.

(F) A certificate of occupancy may not be issued for a project subject to the provisions of this section until after the agreement required by this section is executed.

(Ord. 1142, passed 11-7-05)

A pro-rata refund of the following fees for each of the inclusionary units in the residential development will be granted to an applicant upon the affordable housing agreement being recorded:

• (A) Design review fee; and

• (B) Growth management allocation process fee.

• (Ord. 1142, passed 11-7-05)

Rental units must be offered to eligible households at an affordable rent. The owner of rental inclusionary units must certify each tenant household's income to the city or 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. (Ord. 1142, passed 11-7-05)

A residential development subject to this chapter must include, as part of its GMA application, the number and type of inclusionary units required by this chapter. The approval of GMAs will specify the number and type of inclusionary units required by this chapter and further condition the GMAs by requiring deed restrictions as set forth in this chapter. (Ord. 1142, passed 11-7-05)

(A) The requirements of this chapter may be modified or waived if the applicant demonstrates to the Director that application of this chapter would constitute a taking of property in violation of the United States or California Constitutions.

(B) An application for a waiver or modification must be made concurrently with GMA application.

(C) When determining whether to modify or waive the requirements of this chapter, the Director may assume each of the following when applicable:

• (1) The applicant is subject to this chapter;

• (2) The extent to which the applicant will benefit from incentives offered by this code;

• (3) The applicant is obligated to provide the most economical inclusionary housing units feasible in terms of construction, design, location and tenure; and

• (4) The applicant is likely to obtain other housing subsidies where such funds are reasonably available.

• (D) The Director's decision is the city's final decision. An applicant may appeal the decision to a court of competent jurisdiction within 90 days after the decision in accordance with Cal. Civ. Pro. Code §1094.6.

• (Ord. 1142, passed 11-7-05)

(A) In addition to the general remedies provided by this code and other applicable law, the Director and City Attorney are authorized to take any appropriate enforcement action to ensure compliance with this chapter, including, without limitation:

• (1) Actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval.

• (2) Actions to recover civil fines, restitution to prevent unjust enrichment from a violation of this chapter, and/or enforcement costs, including attorneys fees.

• (3) Eviction or foreclosure.

• (4) Any other appropriate action for injunctive relief or damages.

• (B) Failure of any public official, employee, or agent to fulfill the requirements of this chapter does not excuse any person, owner, household, or other party from complying with the requirements of this chapter.

• (Ord. 1142, passed 11-7-05)