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HomeMy WebLinkAboutOrdinance #3829 ORDINANCE NO. 3829 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 230 OF THE HUNTINGTON BEACH ZONING AND SUBDIVISION CODE BY AMENDING SECTION 230.26 RELATING TO AFFORDABLE HOUSING The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. Section 230.26 of the Huntington Beach Zoning and Subdivision Code is hereby amended to read as follows: 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 low-and moderate 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. 3. As a result of being located within a redevelopment area and/or Specific Plan area, additional restrictions or requirements may apply. B. Applicability. This section shall apply to new residential projects three (3) or more units in size. l. A minimum of ten(10) percent of all new residential construction shall be affordable housing units. The whole number established by dividing the total unit count proposed by ten(10) shall be affordable housing units unless Section 230.26B.4 applies. Any fractional amount may be paid with an equivalent in-lieu fee. 2. Rental units included in the project shall be made available to low-income households as defined by Health and Safety Code Section 50079.5, or a successor statute. Rental units included in the project may be made available to moderate income households as defined by Health and Safety Code Section 50093, or a successor statute if the moderate income units are located on-site within the project. 3. For sale units included in the project shall be made available to moderate income households, as defined by the Health and Safety Code Section 50093, or a successor statute. 4. Developers of residential projects consisting of thirty or fewer units may elect to pay a fee in lieu of providing the units on-site to fulfill the requirement of the 08-1779126028.doc 1 Ordinance No. 3829 Section, unless the affordable housing requirement is outlined as part of a specific plan 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 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 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 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. 1. Off-site projects may be new construction or substantial rehabilitation, as defined by Government Code Section 33413 affordable housing production requirements, 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: (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 defined by the Health and Safety Code; and 08-1779/26028.aoe 2 (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, or the applicable in-lieu fee shall be paid in full, prior to issuance of the first building permit. 3. The Agreement shall specify an affordability term of not less than fifty-five (55) years for rental housing or forty-five (45) years for ownership housing. 4. 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. 5. All affordable units shall be reasonably located 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. 6. 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 fifty-five (55)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. 7. 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 (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 housing cost shall be calculated in accordance with Health and Safety Code Section 50052.5 standards for ownership units and Health and Safety Code Section 50053 standards for rental units. This methodology is full described in the City's adopted housing policies. 08-1779/26028 3 Ordinance No. 3829 G. Reduced Fees for Affordable Housing. Projects that exceed inclusionary requirements on- site will be eligible for reduced City fees,pursuant to an Affordable Housing Fee Reduction Ordinance, upon adoption by the City Council. H. Annual Program Review and Periodic Adjustment of the Fee. Within 180 days after the last day of each fiscal year,the City Council shall review the status of the City's Affordable Housing Trust Fund, including the amount of fees collected, expenditures from the Affordable Housing Trust Fund, and the degree to which the fees collected pursuant to this Chapter are assisting the City to provide and encourage low and moderate income housing. The fee shall be updated annually using the Real Estate and Construction Report published by the Real Estate Research Council of Southern California. The fee change shall be based on the percentage difference in the New Home Prices in Orange County published in the 41h quarter report for the then current year versus the immediately preceding year. SECTION 1. 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 4th day of May , 200 9 . 9L& Mayor ATTEST: APPROVED AS TO FORM: City Clerk j City Attorney 2UV REVIEW APPROVED: INITIA D ND APPROVED: V Cit mi istrator Dir for of Planning 08-1779/26028.doe 4 Ord. No. 3829 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly elected, 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 regular meeting thereof held on April 20,2009, and was again read to said City Council at a regular meeting thereof held on May 4,2009, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Carchio, Dwyer, Bohr, Coerper, Hansen NOES: Hardy ABSENT: Green 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 Beach Fountain Valley Independent on May 14,2009. In accordance with the City Charter of said City A Joan L. Flynn, City Clerk CiW Clerk and ex-officio derk senior Deputy Cites of the City Council of the City of Huntington Beach, California