Tustin Municipal Code Part 2 Applicability and Voluntary Workforce Housing Incentive Program Unit Requirements

The provisions of this Chapter shall apply to all residential projects, as defined in Section B9912 of this Chapter, except for any residential project exempt under Section B9922 of this Chapter. (Ord. No. 1491, Sec. II, 9-4-18)

This Chapter shall not apply to any of the following:

(a) Applications for a development approval that include a residential project for which an application has been deemed complete prior to the effective date of the ordinance codified in this Chapter.

(b) A residential project that is the subject of a development agreement under applicable provisions of the California Government Code that expressly provide for an exclusion to this Chapter or provide for a different amount of voluntary workforce housing incentive program units from that specified by this Chapter, provided the development agreement was executed by the City prior to the effective date of the ordinance codified in this Chapter.

(c) A residential project for which a housing incentive agreement has been approved pursuant to Section 9142 of Article 9, Chapter 1, Part 4 of this Code, provided that the housing incentive agreement is effective prior to the effective date of the ordinance codified in this Chapter, and there is no uncured breach of the housing incentive agreement before issuance of a certificate of occupancy for the project.

(d) A residential project for which a development approval has been approved by the City by no later than the effective date of the ordinance codified in this Chapter. Upon expiration of any development approval, and unless otherwise exempted, the residential project shall be subject to the requirements of this Chapter, and shall not proceed until such time as a voluntary workforce housing incentive program plan is approved in conjunction with any other required development approval or amendment thereto. The exemption set forth in this Subsection shall not apply to any discretionary extension of a development approval or land use approval beyond its initial term granted after the effective date of the ordinance codified in this Chapter. (Ord. No. 1491, Sec. II, 9-4-18)

All new residential projects, as defined in Section B9912 and as specified in Section B9921, shall include voluntary workforce housing incentive program units. Calculations of the number of voluntary workforce housing incentive program units required by this Section shall be based on the number of base units in the residential project.

(a) On-site voluntary workforce housing requirement. Except as provided in Subsection (a)(3) below or when otherwise exempted from this Chapter, residential projects shall include voluntary workforce housing incentive program units upon the same site as the residential project. The number and type of voluntary workforce housing incentive program units required for the residential project shall be either:

(1) Fifteen percent (15%) of the base units in the residential project made available at an affordable housing cost. Of these affordable housing units, six percent (6%) shall be made available to very low-income households, four and a half percent (4.5%) shall be made available to low-income households, and four and a half percent (4.5%) shall be made available to moderate-income households; or

(2) Twelve and one-half percent (12.5%) of the base units in the residential project made available at an affordable housing cost. Of these affordable housing units, seven and one-half percent (7.5%) shall be made available to very low-income households, and five percent (5%) shall be made available to moderate-income households; or

(3) One of the following:

a. Five percent (5%) of base units in the residential project provided on-site or off-site, and made available to very low income households; or

b. Ten percent (10%) of the base units in the residential project provided on-site or off-site, and made available to low income households.

(b) Any residential project providing voluntary workforce housing incentive units pursuant to Subsection (a)(3) above must also pay to City a voluntary workforce housing incentive program in-lieu fee calculated by either:

(1) Multiplying the voluntary workforce housing incentive program in-lieu fee by one-half (½) the number of base units provided on-site, or one-half (½) the residential project's total square feet of residential area (as established by resolution of the City Council); or

(2) For residential projects where an application was received but not deemed complete on or before April 17, 2018, multiplying the voluntary workforce housing incentive program in-lieu fee by one-half (½) the residential project's total square feet of residential area (as established by resolution of the City Council).

(c) For residential projects providing a mix of on-site voluntary workforce housing program units and paying a voluntary workforce housing incentive program in-lieu fee calculated pursuant to Subsection (b) of this Section, the voluntary workforce housing incentive program unit requirements of Section B9923 may be satisfied in part by payment to the City of a voluntary workforce housing incentive program in-lieu fee calculated pursuant to that Subsection, provided that such fee is received by the City prior to the issuance of a building permit for the residential project, unless the timing of payment is otherwise specified in an approved voluntary workforce housing incentive agreement pursuant to Section B9932 of this Chapter, or the conditions of approval for the residential project.

(d) Any off-site units provided pursuant to Subsection (a)(3) above shall comply with the requirements for off-site units set forth in Section B9925(b)(1) through (b)(7). (Ord. No. 1491, Sec. II, 9-4-18)

In computing the total number of voluntary workforce housing incentive program units required in a residential project, fractions shall be rounded up to the next whole number. (Ord. No. 1491, Sec. II, 9-4-18)

Subsections (a) through (d) of this Section B9925 shall apply only to residential projects of fewer than twenty (20) units.

(a) On-site units. The primary means of complying with the voluntary workforce housing incentive program unit requirements of this Chapter shall be the provision of on-site voluntary workforce housing incentive program units in accordance with Section B9923. A developer of a residential project of fewer than twenty (20) units may only satisfy the requirements of this Chapter by means of an alternative to on-site voluntary workforce housing incentive program units in accordance with the requirements and procedures of this Section.

(b) Off-site units. For residential projects of fewer than twenty (20) units, the voluntary workforce housing incentive program unit requirements of Section B9923 may be satisfied, in whole or in part, by the construction of new voluntary workforce housing incentive program units, or the conversion of existing market rate units to voluntary workforce housing incentive program units, offsite within the City's jurisdictional boundary. All workforce housing incentive program units developed off-site of the residential project in accordance with this Subsection shall comply with the following criteria:

(1) The off-site location has a general plan designation that authorizes residential uses and is zoned for residential development at a density to accommodate at least the number of otherwise required workforce housing incentive program units within the residential project;

(2) The off-site location is suitable for development of the workforce housing incentive program units in terms of configuration, physical characteristics, location, access, adjacent uses, and other relevant planning and development criteria;

(3) Environmental review for the off-site location has been completed for the presence of hazardous materials and geological review for the presence of geological hazards and all such hazards are or shall be mitigated to the satisfaction of the City prior to acceptance of the site by the City;

(4) The construction schedule for the off-site voluntary workforce housing incentive program units shall be included in the voluntary workforce housing incentive program plan and the voluntary workforce housing incentive program agreement;

(5) Any off-site voluntary workforce housing incentive program units shall be constructed and made available for occupancy prior to or concurrently with the market rate residential project pursuant to Section B9927;

(6) Any off-site voluntary workforce housing incentive program housing units shall be substantially comparable to the market rate units included in the residential project in terms of quality of design, materials and finish; and

(7) Any off-site voluntary workforce housing incentive program housing units shall be substantially comparable to the market rate units included in the residential project in terms of gross floor area of habitable space and number of bedrooms per unit.

(c) In-lieu fee. For residential projects of fewer than twenty (20) units, the voluntary workforce housing incentive program unit requirements of Section B9923 may be satisfied, in whole or in part, by payment to the City of a voluntary workforce housing incentive program in-lieu fee, as established by resolution of the City Council, provided that such fee is received by the City prior to the issuance of a building permit for the residential project, unless the timing of payment is otherwise specified in an approved voluntary workforce housing incentive agreement pursuant to Section B9932 of this Chapter, or the conditions of approval for the residential project. All voluntary workforce housing incentive program in-lieu fees collected under this Subsection shall be deposited in the voluntary workforce housing incentive program fund.

(d) Alternative option. For residential projects of fewer than twenty (20) units, the workforce housing incentive program unit requirements of Section B9923 may be satisfied, in whole or in part, by an alternative option acceptable to the City, which may include without limitation the dedication of land for affordable housing. (Ord. No. 1491, Sec. II, 9-4-18)

All residential projects as defined in Section B9912 and subject to the voluntary workforce housing incentive program established by this Chapter shall be eligible for the density bonuses and other incentives, and for the waivers and reductions in development standards identified by State law as set forth in Government Code Section 65915 et seq. and Tustin City Code Section 9111 et seq., so long as the residential project provides voluntary workforce housing incentive program units in accordance with this Chapter. All calculations with respect to density bonuses, other incentives, and waivers or reductions in development standards provided pursuant to this Section B9926 shall be calculated by applying the provisions of Government Code Section 65915 to the proposed base units of the residential project. (Ord. No. 1491, Sec. II, 9-4-18)

(a) Location within the residential project. All voluntary workforce housing incentive program units shall be:

(1) Reasonably dispersed throughout the residential project;

(2) Proportional, in number of bedrooms, gross floor area of habitable space, and location, to the market rate units;

(3) Comparable to the market rate units in terms of quality of design, materials, finish and appearance;

(4) Permitted the same access to community amenities and recreational facilities, as the market rate units; and

(5) Provided functionally equivalent parking when parking is offered to the market rate units.

(b) Timing of construction. All voluntary workforce housing incentive program units in a residential project shall be constructed and made available for occupancy prior to or concurrently with the market rate units. If the City approves a phased project, a proportional share of the required voluntary workforce housing incentive program units shall be provided within each phase of the residential project.

(c) General Prohibitions.

(1) No person shall sell or rent a voluntary workforce housing incentive program unit at a price or rent in excess of the maximum amount allowed by any restriction placed on the unit in accordance with this Chapter.

(2) No person shall sell or rent a voluntary workforce housing incentive program unit to a person or persons that do not meet the income restrictions placed on the unit in accordance with this Chapter.

(3) No person shall provide false or materially incomplete information to the City or to a seller or lessor of a voluntary workforce housing incentive program unit to obtain occupancy of housing for which the person is not eligible. (Ord. No. 1491, Sec. II, 9-4-18)

(a) All monies collected pursuant to this Chapter, including all voluntary workforce housing incentive program in-lieu fees, shall be deposited into a separate account to be designated as the City of Tustin voluntary workforce housing incentive program fund.

(b) The monies in the voluntary workforce housing incentive program fund shall be expended exclusively to provide housing affordable to extremely low, very low, low, and moderate-income households in the City of Tustin, and administration and compliance monitoring of the voluntary workforce housing incentive program. (Ord. No. 1491, Sec. II, 9-4-18)