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HomeMy WebLinkAboutOrdinance #3214 ORDINANCE NO. 3214 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH ORDINANCE CODE BY ADDING NEW ARTICLE 966 THERETO ENTITLED "AFFORDABLE HOUSING" WHEREAS,the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. That the Huntington Beach Ordinance Code is hereby amended by adding new Article 966 thereto, entitled "Affordable Housing," to read as follows: Article 966 Affordable Housing Sections: 9660 Purpose 9660.1 Applicability 9660.2 Fees in Lieu of Construction 9660.3 Off-site Construction of Affordable Units 9660.4 Incentives for Providing Affordable Housing 9660.5 Miscellaneous Provisions 9660.6 Sale of Affordable Units 9660 Purpose. (a) The purpose and intent of this Chapter is to implement the goals, objectives and policies of the City's Housing Element. It is intended to encourage low- and moderate-income housing, and housing for older residents which is integrated, compatible with and complements adjacent uses, and is located in close proximity to public and commercial s services. (b) The affordable housing program is one tool the City utilizes to meet its commitment to provide housing affordable to all economic sectors, and to meet its regional fair-share requirements for construction and rehabilitation of housing affordable to low- and moderate-income households. 9660.1 Applicability. This chapter shall apply to all residential projects three (3) or more units in size. A developer shall have the option of addressing the affordable housing requirements in one of the following ways: 1 4\Ord\09/22/93 (a) A minimum of ten(10)percent of all the units included in the project shall be made available to very low, low(rental projects) and moderate-income households based on the Orange County Median Income as defined by the Department of Housing Urban Development. (b) Developers of residential projects may elect to pay a fee in lieu of providing the units on- site to fulfill the requirement of the Section, unless the affordable housing requirement is called out as part of a specific plan project. (c) Developers of residential projects may elect to provide the affordable units at an off-site location unless otherwise outlined as part of a specific plan project. 9660.2 Fees in Lieu of Construction. (a) Fees paid to fulfill the requirements of this article shall be placed in the City's Affordable Housing Trust Fund, the use of which is governed by Section 9660.5(f). (b) The amount of the fees shall be calculated using the fee schedule established annually by resolution of the City Council. (c) One hundred(100)percent of the fees required by this Section shall be paid prior to issuance of a building permit. (d) Fees paid as a result of new residential projects shall be based upon the total number and size of the residential units which are to be constructed. (e) Common interest developments created through the conversion of existing residential housing shall either make available ten(10)percent of all the units in the project to low- and moderate-income households, or pay an in-lieu fee as calculated in Section 9660.2(b). 9660.3 Off-Site Construction of Affordable Units. Developers of residential projects of three (3) or more units may provide the required affordable housing off-site, at one or several sites. Application materials for the off-site project shall be filed concurrently with application materials for the primary project. The Commission shall review the off-site affordable units and affirmatively find that: (a) The number of units provided off-site is equal to or greater than the number required on- site. (b) Off-site projects may be new construction or rehabilitation of existing non-restricted units conditioned upon being restricted to long-term affordability. "At Risk" units identified in the Housing Element or mobile homes may be used to satisfy this requirement. 2 4\Ord\09/22/93 (c) All affordable off-site housing shall be constructed or rehabilitated prior to or concurrently with the primary project and final approval of the project shall be contingent on completion and final approval of the affordable units. 9660.4 Incentives for Providing Affordable Housing. The incentives contained in this section are designed to encourage new affordable housing projects that are not subject to Huntington Beach Ordinance Code Section 9637 et seq, relating density bonus and other incentives. In order to encourage the construction of housing affordable to low- and moderate-income households and in order to encourage new construction of affordable housing,various density bonuses shall be permitted. They shall take into account the underlying zoning,the need for specialized types of housing and the particular operating needs of non-profit housing providers. It is the intent of these provisions to provide maximum design flexibility while still maintaining high quality design standards in exchange for affordable housing. (a) No density bonus may be used in conjunction with a project paying a fee in lieu of providing affordable units. No density bonus may be used with or added to another density bonus. 1. The Planning Commission may grant, with appropriate findings, a density increase of at least twenty-five (25)percent above the maximum density allowed by the underlying zoning, if the project complies with Section 9637 et seq. of the Huntington Beach Ordinance Code, relating to density bonus and other incentives. (b) The Planning Commission may grant a density bonus equal to fourteen(14) more units per acre than that allowed by the underlying zoning, in R2 and R3 zoning districts, provided the project complies with all of the following criteria: 1. The project's exterior elevations are designed to be compatible with and complement the scale and character of the adjoining lands uses; 2. The project is restricted to the maximum height allowed by the underlying zoning; 3. Any traffic impact directly attributable to the density bonus is mitigated; and 4. All of the bonus units are permanently dedicated to low- and moderate-income persons and/or older residents as defined by the Government Code. (c) The Planning Commission may grant a density bonus equal to fifty(50)percent of the maximum amount allowed density in R3 and R4 zoning districts if fifty (50)percent of all of the units in the project are permanently dedicated to low- and moderate-income persons, or a bonus equal to 100 percent of all of the units in the R3 or R4 zoning districts if 100 percent of all of the units in the project are permanently dedicated to low- and moderate-income persons, if the project complies with the following criteria: 3 4\Ord\09/22/93 i I 1. The project's exterior elevations shall be designed to be compatible with and complement the scale and character of the adjoining land uses. (d) Residential projects that offer 50% of the units to persons and households earning between 80% - 100%of the Orange County Median Income as defined by HUD for a period of 30 years may be eligible for a reduction in development standards as follows: 1. Site coverage seventy-five (75)percent; 2. Common open space -maximum seventy(70)percent reduction if replaced by private open space(roof decks may be used to satisfy a portion of this requirement); 3. Minimum unit size: studio - 300 square feet one (1) bedroom-450 square feet two (2)bedroom- 800 square feet 4. Density: A floor area ratio of 1.0 may be substituted for units per acre. 9660.5 Miscellaneous Provisions. (a) The conditions of approval for any project which requires affordable units shall specify the following items: 1. The density bonus being provided; 2. The number of affordable units; 3. The number of units at each applicable sales price or rent level as related to Orange County Median Income; and 4. A list of any other incentives offered by the City. (b) An Affordable Housing Agreement shall be executed between the applicant and the City prior to issuance of building permits outlining all aspects of the affordable housing provisions. 1. Prior to issuance,of building permits in a project requiring an in-lieu fee,the applicant shall execute and record an Agreement to pay an Affordable Housing In-Lieu Fee. 4 4\Ord\09/22/93 i (c) All affordable on-site units in a project shall be constructed concurrently with or prior to the construction of the market rate units unless otherwise approved by the Planning Commission through a phasing plan. (d) All affordable units shall be reasonably dispersed throughout the project unless otherwise designed through a master plan, shall contain on average the same number of bedrooms as the market rate units in the project, and shall be comparable with the market rate units in terms of exterior appearance, materials and finished quality. (e) In the event a phased project is approved by the City,required affordable units shall be provided equally within each phasing. (f) Affordable Housing Trust Funds shall be used primarily for projects which have a minimum of fifty(50)percent of the dwelling units affordable to low- and moderate- income households,with at least twenty(20)percent of the units available to low-income households. All units which obtain Affordable Housing Trust Funds shall maintain the affordability of the units for a minimum of 30 years. The funds may, at the discretion of the City Council,be used for pre-development costs, land or air rights acquisition, rehabilitation, land write downs, administrative costs, gap financing, or to lower the interest rate of construction loans or permanent financing. (g) In a project which includes market rate units, Affordable Housing Trust Fund monies shall only be provided to assist in the acquisition and construction of those units affordable to low- and moderate-income households. Units which have received City financial subsidy or other incentive of equal financial value may not be used as credit to satisfy other affordable housing obligations. (h) New affordable units shall be occupied in the following manner: 1. If residential rental units are being demolished and the existing tenant(s) meets the eligibility requirements,he/she shall be given the right of first refusal to occupy the affordable unit(s); or 2. If there are no qualified tenants, or if the qualified tenant(s) chooses not to exercise the right of first refusal, or if no demolition of residential rental units occurs,then qualified households or buyers will be selected from the City's affordable housing waiting list. 9660.6 Sale of Affordable Units. Affordable units shall be sold at prices affordable to low- or moderate-income households at a price that will result in the total annual debt service (including taxes, utilities, association dues) shall not exceed the standard established by HUD for the County of Orange. Affordable units must first be offered to eligible buyers. "Lower income" affordable units shall be rented at a price that is affordable to a household whose income is sixty- five (65)percent of median income. 5 4\Ord\09/22/93 i I SECTION 2. That this ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 1993. Mayor ATTEST: APPROVED AS TO FORM: City Clerk ity ttorney zz'9 3 REVIEWED AND APPROVED: INITIATED AND APPROVED: City Administrator Direct of Community Development 6 4\Ord\09/22/93