HomeMy WebLinkAboutCC Resolution 7883 (Housing in Leiu Fee)RESOLUTION NO. 7883
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING A HOUSING IN LIEU FEE FOR DEVELOPMENTS WITHIN
T HE CITY BF SAID RAF,4EL
Where -as, the City Cfaun i1 � ff the:i t y of San R5f ael has adopted -clan Raf gel
11unicipal Code Section .'._;`' creating and e:_tablishing the authority for
imposing and charging Public Facilities Feet:; and
Whereas, t t1e San Rafael iet"iet-al Plan '2000 identifies impacts of
contemplated future development relating of housing; find
'5,'41et-e '3, `_:ijid Plan :eta forth the relationship between future development
and the need for additional housi nq affordable to low and model -ate income
'o =,u_o f = i d_ , a l d said Plat e = t o b 11 _ e:=; several loaelig programs i_ i help e]r
meet these identified need:_; and
Mf :'r'r_!a=i, said Flan aI:zo '._;i_t forth policies for ct1t set-vi3t}1irI of e? i tinf_�
lower cost ht]f_j_;ing.: and
Whereas., the Plan was a%-,ailoble for public inspection and review for more
than ten (10) daps prior fr to this public hearing; and
Whereas, the f_:ity Council it findc; as f.+ll►:1ws:
Hou: inq In Lieu Fee=::
A. State Housing Law (6overnment Code Section 65580) states local
t o,,ernments hiive o responsibility to facilitate the development. of housing
for all el_llriomii: segnents- of the community; and
B. The City firm:_: that Citizens of the County are
experi8ncinj ;
t-go_=ira
Lapf_fw i�usGlti
of the General
PI an are to encourage pro i'- ion of ( ousing f or a]I-conomi C s-t'•gment'_; 11f
the communit!] and to t protet_ t and conser'v e lower f5r'`rer t_ ost housing units.
I n�:t eas i ngl q, person-:,
wit�i low-, and t7liff�eri�t r i rlf_ l tt(lY:_; who w� fry. and/or
li'.,,e within can Rafael ore unable to Iocote housing at price_; they can
al"ford. Federal and State housing subsidy programs are not :=efficient by
tf}r?t"(l: el,s ee. to sati s f q the hof_J: i nq need.; of, low and moderate income -
household.-=. i egional ABAG Housing Needs Determination:=, adopted in the
'.nn City of can f=.Rafael Generalt- Plan 'i_iC1{f identified a , need for
.{
construction of additional hf,usinq of}Lordable tolif `f,' and moderate itif_f_ime
I UriA�����. r
RESOLUTION NO. - .,83
iiousehuld:. Til_! 11-3 i ;' - a�90 ? r
I• 1 s _ _ �tlt7"let tleei� for ne'v�l fiULJ��itl�� lltilt'= for laid; and
moderate incorne households was estimated at j; 0 units, with !greater
need occurrinq be!4ond the 11:991 :i time frame; and
C. Nestflq con=.tri_icted market rate housinia project_:, due to high land costs,
locatir_inal factors, and market demand, do not, to any appreciable extent,
provide hi=usinq affordable to low rind moderate income households., and
Utilize land which could otherwise. be used for 'the development of low and
moderate income households. Continued new development which does not
include lower cost housing will serve to further aggravate the current
housing shortage bi-I reducing the :=apply of developable land; and
D. In order to partialiq mitigate the loss of opportunity to construct
housing affordable to low and moderate income fioi_sehold=, occurring
because of construction of market rate housing, City general Plan polir_:ia
requires that all residential projects of 101 Unit=: or more. provide at least
1i ICT -6 of their units affordable to moderate income households: and
E. C:it!a General Plan policy encourages a::r=nstruction of ne'tit.f units
affordable to lo;r,r and moderate income household-, on-_:ite in order to
distribute a mit, of housing units and t!jpe-=. througt"iout the communi tq; and
F. Only it ori -site construction is not fef-i'sible, due to factors such as., but
not limited to, location, developtrcent density, and environmental
condition -s., and the de vei oiler desires to pay a fee in lieu of on-site
construction, is a housing in lieu fee considered; and
G. In Girder to mitigate the lo=,:= of e dsting lower cost housing units, City
General Plan Pol i cq allows conversions onl!a with provision of new units of
the same general type, numbers and price range; and
H. T he purpi--is.e of this tee is to help provide hou=sing Units ,,I sich require
e
pi_iblic as=sistance in order to be affordable dable to households of lo;r+•r and
moderate income.. but shall only be used where the housing developer
dez,ires to pay a fee rather than construct such units ±onsite and where the
particular development is not suitable for inclusionary units due to
factors such as, but not limited to, location, development den itq, and
environmental conditions, or where a developer proposes to convert such
Unit._ to non-residential uses; and
1. The feel: collected pursuant to this. resolution :Miall be used only to 1 i
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RESOLUTION NO. 7883
maintain the supply of lower cost unit: in the rase of con -versions, or zs
increase the supply of lower rest units in the case of neer residential
pro � j ects.
J. T he ABAG Housing Need=: Determinations and the `pan Rafael General
Plan Housing Element establish:
that there is a reasonable relationship between the unmet need
for housing affordable to low and moderate in!_ome household_, and the
loss of affordable housing opportunity tunity iaused b!a market rate residential
construct i on. The Ci tq General PI an Housi ng pol i r!� re���ii rerr�er!t to pro :� i de
at l east l +:? T of housi nq uni t:; o f fordabl e to l ow and moderate i ncome
hous=eholds directly mitigates the burdens created by market rate
construction;
(b) that there is a reasonable relationship between the unmet need
for houslnq affordable to low and moderate inC.ome household , and the
loss of lower rest hou:si nq caused by conversions of those ose Tani t: to tion
residential uses_
ic? that there is a reasonable relationship between the cost of
providing or ma-intaininq housing affordable to low and moderate ini:ome
households and the in lieu partiripation fee charged for provision or
retention of L,!_ich housing. In the case of residential projects, the fee is
the differential between what it would cost the developer to ac -quire and
con=struct such a market rate unit and what the low or moderate income
household could afford to pay. In the rase of conversions to other uses
the fee is what it would cost the developer to construct such a market
rate unit of a similar t!ape , size and price;
e,
A` that there is a reasonable relationship between the fee's la:1e and
the tape of development for which the fee is charged. Cit! General Plan
policy allows fee= to be paid in lieu of onsite provision of dousing, to
mitigate the effect of not providing needed affordable housing and
requires mitigation for con'v'ersion of residential to non residential uses.
The fee will be used e clusivelq to construct or pr-ovide additional housinq
affordable to persons of loaf or moderate income -
NOW err' THEREFORE 6E IT RESOLVED, that the Cit!4 Council of the City of San
Rafael
1. Definitions.
"Low and moderate income households." are those households earning less
3
RESOLUTION NO. 7883
than 120:' of median income according to the latest Federal Housing and
Ur -ban Development Department irli_ome limits table (or similar table
pryIvided by the County Ho a:=inq Authoritq).
"Lo,i�,et-cost housing" means housing units affordable to k -mi and moderate
income iiO#_.�:=eholl.3`_'•.
"Residential Project" means a housing development, condominium
con'ver'=sion or land subdivision at one location including all unit_ for which
upprov al:_, are granted within a one year period.
"Unit" means a dwelling designed for occupancy by one household.
2. Fee Imposed, Time of Payment.
a+ The Hsi:_i:_ing in lieu fee establis=hed by this resolution shall be
pair at the time ►_if is=suance of a building permit. If no building permit is
required, the fee ;hall be paid prior- to approval of a final subdivision map.
In the case of housing conversions, the housing in lieu participation fee
shall be paid at the time of issuance of a demolition permit eliminating a
unit, or, if no demolition is proposed, at the time of issuance i Ifi a building
permi t f or any Li to changes. I f no tri t e changes are proposed, the fee shat l
be paid as provided for in the conditions of project approval.
3. Amount of Hou:sinq in Lieu Fee.
(a) Housing in lieu fees for- all residential projects of 10 unit:= lot:_:
or- more, including land subdivisions, :�isions, C.tial i be calculated on the basis_: of
the difference between the ability to pay of moderate income household=:
(carni n�a '.+0of median income', and the estimated cost of It1:=;tt-tilt 1 n _ o
market rate unit of appropriate _;ire, tii be determined by the City. An
estimate of the price of a market rate knit i s. to be provided 1-4 tintless a
year- a_, deeded by the Planning Director to include the most recent fi:;ed
mortgage rate., annual incomes, construction co t.- and lond/sito
development costs. This: differential between market rate costs and
ability to pay shall by multiplied by the number- of lower cost units to be
provided by the project as required by the General Plan Hou=sing Element
00T). For purpose.: of appl!4ing percentages to in -lieu fees, decimal
fractions of a unit :;hall be used.
V, Housinq in Heli foe:: for conversions of re' identia] Unita to non
4
RESOLUTION NO. 7883
residential use shall be calculated on the basis of replacement cost of
similar size market rate units. An estimate of the construction cost to
replace the unit is to be provided 1-4 times a year by the Planning
Director. The land/site development cost shall be based on a current
appraisal of the land/site development cost for the project site where
conversion is proposed. Selection of the appraiser shall be mutually
agreed upon by City staff and the developer. Cost of said appraisal shall
be paid by the developer.
(c) Exhibit A attached provides the calculation methodologies used
and examples of how the methodologies would apply to a residential
project.
4. Application of Fee:
(a) New residential projects, including land subdivisions, and
condominium conversion projects of 10 or more units which do not
construct or otherwise provide the required number of units affordable to
low and moderate income households for 40 or more years.
(b) Projects which propose to convert residential units to non
residential uses if equivalent housing is not provided.
5. Exemptions from payment of fees for loss of residential units.
(a) Second units.
(b) Illegal units for which demolition or conversion is required for
abatement
6.. Payment of other Fees required
(a) Notwithstanding any other provision of this resolution, projects
paying housing in lieu fees are responsible for the payment of all other
applicable fees adopted by the City
7. Use of Fee Revenues.
(a) The revenues raised by payment of the housing in lieu fee, along
with any interest earnings on each accounts, shall be used for the
f of l owi ng purposes:
5 December 19, 1988
RESOLUTION NO. 7883
(1) design and construction of housing affordable to
households of low and moderate income for a minimum 40 year time
f rame.
(2) other acti ons whi ch woul d i ncrease the suppl y of
housing affordable to low and moderate income households for a
minimum 40 year time frame.
(3) costs of program development and ongoing administration of the
housing fund program;
6. Housing In Lieu Fee Account. The revenues raised by payment of the
housing in lieu fee shall be placed in a segregated Citywide Housing in lieu
fee account.
9. Administrative Regulations. The City Manager shall develop rules and
regulations for the effective implementation and administration of the in
lieu housing fee.
10. Review and Reporting
(a) No later than January 30 of each year, the City Manager shall
prepare a report f or the Ci ty Counci 1 to make f ndi ngs wi th respect to any
portion of the housing in lieu fees remaining unexpended or uncommitted in
its account five or more years after deposit of those fees to identify the
purpose to which the fees are to be put and to demonstrate a reasonable
relationship between the fees and the purpose for which they were
charged. The required findings need only be made for moneys in the
possession of the City.
(b) The City Council shall review the report at a noticed public
hearing. The City shall refund to the then current record owner or owners
of the development project or projects on a prorated basis the unexpended
portion of the fee, with interest, for which need cannot be demonstrated
pursuant to subsection (a) above.
11. Subsequent Analysis of Fee.
The fee established herein is adopted and implemented by the Council in
reliance on the average construction costs surveyed by City and County
6 December 19, 1988
RESOLUTION NO. 7883
planning staff. The City will continue to conduct further study and
analysis to determine whether the fee should be revised. When additional
information is available, the City Council shall review this fee to
determine that the fee amount is reasonably related to the impacts of
future residential projects. The City Council shall revise the fee if needed
to incorporate the findings and conclusions of further studies and any
standards in the City's General Plan as it is amended in the future.
12. Effective Date of Housing in lieu fee.
The Housing in lieu fee shall be effective December 19, 1988.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that
the foregoing resolution was duly and regularly introduced and adopted at
a regular meeting of the Council of said City on MONDAY
the NINETEENTH day of DECEMBER , 1988, by the
fallowing vote, to wit:
AYES: COUNCILMEMBERS: Boro, Breiner, Frugoli, Thayer & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ANNE M. LEONCINI, City Clerk
7 December 19, 1988
EXHIBIT A
AFFORDABLE HOUSING IN LIEU FEE CALCULATION METHODOLOGIES
WITH EXAMPLES
(December 1988)
A. Market Rote and Condominium Conversion Projects of 14 of
More Units.
Example: A 22 unit market rate residential project
A. Criteria:
1. Percent of affordable units required by City is 10% of the total
project (2.2 units= 2 units).
2. Market Rate Housing Cost:
a. Construction cost of an average size 1500 square feet unit @
$80.001 square foot= $120,000
b. Average land/site development costllot*= $60,000
c. Total cost for constructionlunit= $180,000
3. Affordable Housing Limits:
a. Annual income of a 4 person household @ 90% of median
income - 1988 H.U.D. limits = $38,250
b. Maximum set unit price is $98,800 (Assumes a 30 year loan,
10% down payment, current fixed mortgate interest rate of
10.25%, 25% of monthly income available for principal and
interest)
Application:
1. Market rate cost/unit:
$180,000
2. Maximum unit cost affordable to 4 person
hshl d @ 90% median:
-$98,800
3. Total in lieu fee/unit:
$81,200
4. Fee for 2 units affordable to moderate
income households
$162,400
8 December 19, 1988
B. Conversion of residential units to other uses
Example: Triplex proposed for conversion to office
Criteria:
1. Number of units in current project proposed to be converted= 3
2. Average size of units proposed for conversion= 800 square feet
(size will vary by project).
3. Market Rate housing unit cost:
a. Construction cost of the average size 800 square feet unit t�
$80.00/ square foot*= $64,000
b. Average land/site development cost/lot**= $40,000
c. Total cost for construction/unit= $104,000
Application:
a. Market rate cost per unit: $104,000
d. Total in lieu fee for 3 residential units lost= $312,000
* Dollar per square foot figures are an "average" based upon a survey of
standard quality residential development construction in the City and
County. Figures are updated 1-4 times a year as needed.
** Based on current appraisal of specific site where conversion is
proposed.
9 December 19, 1988