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HomeMy WebLinkAboutOrdinance #3687 ORDINANCE NO. 3687 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE BY ADDING NEW SECTION 230.26 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 Zoning and Subdivision Ordinance is hereby amended by adding new Section 230.26 thereto, entitled "Affordable Housing," said chapter to read as follows: 230.26 Affordable Housing A. Purpose. 1. 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 very low, low-and median income housing, which is integrated, compatible with and complements adjacent uses, and is located in close proximity to public and commercial services. 2. 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 of affordable housing. B. Applicability. This section shall apply to new residential projects three (3) or more units in size. 1. A minimum of ten (10) percent of all new residential construction shall be affordable housing units. 2. Rental units included in the project shall be made available to very low or low- income households based on the Orange County Median Income, adjusted for appropriate family size, as published by the United States Department of Housing and Urban Development or established by the State of California,pursuant to Health and Safety Code Section 50093, or a successor statute. 3. For sale units included in the project shall be made available to very low, low or median income level households based on the Orange County Median Income, adjusted for appropriate family size, as published by the United States Department of Housing and Urban Development or established by the State of California,pursuant to Health and Safety Code Section 50093, or a successor statute. 4. Developers of residential projects consisting of nine or fewer units 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 outlined as part of a specific plan Oocument3 Ordinance No. 3687 project. 5. Developers of residential projects may elect to provide the affordable units at an off- site location pursuant to subsection B unless otherwise outlined as part of a specific plan project. If affordable units are off-site,they must be under the full control of the applicant, or other approved party. 6. New residential projects shall include construction of an entirely new project or new - units added to an existing project. For purposes of determining the required number of affordable housing units, only new units shall be counted. C. Fees in Lieu of Construction. 1. Fees paid to fulfill the requirements of this Section shall be placed in the City's Affordable Housing Trust Fund,the use of which is governed by subsection E. 2. The amount of the in-lieu fees shall be calculated using the fee schedule established annually by resolution of the City Council. 3. One hundred (100)percent of the fees required by this Section shall be paid prior to issuance of a building permit. 4. Fees paid as a result of new residential projects shall be based upon the total number and size of the new residential units which are to be constructed. D. Off-Site Construction of Affordable Units. Except as may be required by the California Coastal Act and/or the California Government Code Section 65590 or a successor statute, developers may provide the required affordable housing off-site, at one or several sites, within the City of Huntington Beach. I. Off-site projects may be new construction or major physical rehabilitation,equal to more than one-third the value of the existing improvement, excluding land value, 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. All affordable off-site housing shall be constructed or rehabilitated prior to or concurrently with the primary project. Final approval (occupancy) of the first market rate residential unit shall be contingent upon the completion and public availability, or evidence of the applicant's reasonable progress towards attainment of completion, of the affordable units. E. Miscellaneous Provisions. 1. The conditions of approval for any project that requires affordable units shall specify the following items: Documenf3 s ordinance No. 3687 (a) The density bonus being provided pursuant to Section 230.14, if any; (b) The number of affordable units; (c) The number of units at each income level as related to Orange County Median Income; and (d) A list of any other incentives offered by the City. 2. An Affordable Housing Agreement outlining all aspects of the affordable housing provisions shall be executed between the applicant and the City and recorded with the Orange County Recorder's Office prior to issuance of the first building permit. 3. The Agreement shall specify an affordability term of not less than sixty(60) years. 4. In a project requiring an in-lieu fee, the applicant shall execute and record an Agreement to pay an Affordable Housing In-Lieu Fee. 5. All affordable on-site units in a project shall be constructed concurrently with or prior to the construction of the primary project units unless otherwise approved through a phasing plan. Final approval (occupancy) of the first market rate residential unit shall be contingent upon the completion and public availability, or evidence of the applicant's reasonable progress towards attainment of completion, of the affordable units. 6. 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. 7. Affordable Housing Trust Funds shall be used for projects which have a minimum of fifty(50)percent of the dwelling units affordable to very low- and low- income households, with at least twenty (20) percent of the units available to very low- income households. Concurrent with establishing the annual fee schedule pursuant to subsection C, the City Council shall by resolution set forth the permitted uses of Affordable Housing Trust Funds. All units that obtain Affordable Housing Trust Funds shall maintain the affordability of the units for a minimum of sixty(60) 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. 8. New affordable units shall be occupied in the following manner: (a) 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 ©ocument3 ordinance No. 3687 (b) 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. F. Price of Affordable Units. Affordable units shall be sold or rented at prices affordable to very low, low- or median-income households pursuant to terms of the Affordable Housing Agreement. SECTION 2. This ordinance shall become effective thirty (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 1 day of November 52004 ayo ATTEST: City Uerk REVIE ED AND PR VE AP ROVED AS TO FORM: Yfr (84"' n City Administrator �G - ty Attorney [AA 10 2if10� INITI ED AND APPROVED: ctor of Planning Document3 r 3 Ord. No. 3687 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a re ular meeting thereof held on the 18th day of October, 2004, and was again read to said City Council at a regular meeting thereof held on the 1st day, of November, 2004, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Sullivan, Boardman, Cook, Winchell NOES: Green, Coerper ABSENT: Hardy ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beaeh Fountain Valley .. Independent on November It,2004. In accordance with the City Charter of said City Joan L.Fl nn City Clerk Citfhlerk and ex-officio rk Deputy Cif Clerk of the City Council of the City of Huntington Beach, California