HomeMy WebLinkAboutResolution 2018-142 N.C.S. 09/10/2018Resolution No. 2018-142 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
INCREASING INCLUSIONARY HOUSING IN -LIEU FEES PAYABLE AS
REQUIRED BY PROGRAM 4.3 IN THE CITY OF PETALUMA'S
GENERAL PLAN 2025,2015-2023 HOUSING ELEMENT AS ADOPTED BY
RESOLUTION NO. 2014-190 N.C.S. AND REPLACING THE HOUSING
IN -LIEU FEES SET BY RESOLUTION NO. 2003-241 N.C.S.
WHEREAS, on December 6, 1982, by Resolution no. 9620 N.C.S., the City Council
adopted the Housing Element of the Petaluma General Plan ("1982 Housing Element") setting
forth the goals, polices and implementation programs to achieve an adequate supply of housing
for all groups; and
WHEREAS, Program 2 of the policies for implementing the 1982 Housing Element
provided for requiring developers of residential developments with 16 or more units to achieve
adequate housing supply for all groups by one of several methods, including an in -lieu fee
related to the cost of providing housing to write down land costs or acquire housing for low and
moderate -income housing in Petaluma; and
WHEREAS, on August 20, 1984, by adoption of Resolution no. 84-199 N.C.S., the City
Council established a schedule of in -lieu fees to implement Program 2 of the 1982 Housing
Element; and
WHEREAS, on December 16, 2002, by Resolution no. 2002498 N.C.S. the City
Council adopted the Housing Element of the Petaluma General Plan ("2002 Housing Element")
setting the goals, policies and implementation programs to achieve an adequate supply of
housing units and programs for all groups; and
WHEREAS, Program 4.4 of the 2002 Housing Element provided for requiring
residential projects of five or more units to contribute to the provision of below-market rate
housing by providing affordable units on site, dedicating a portion of the project site, making an
in -lieu payment to the City's housing fund, or using alternative methods; and
WHEREAS, on December 1, 2003, by Resolution No. 2003-241 N.C.S., the City
Council established an in -lieu fee schedule for those developers who chose to make an in -lieu
payment into the City's housing fund; and
WHEREAS, on May 19, 2008, the City Council approved Resolution No. 2008-085
N.C.S., adopting the City of Petaluma General Plan 2025 ("General Plan"), which contained the
City's then -existing housing element; and
WHEREAS, on June 15, 2009, the City Council approved Resolution No. 2009-094
N.C.S., adopting the Petaluma 2009-2014 Housing Element; and
WHEREAS, on December 1, 2014, the City Council approved Resolution No. 2014-190
N.C.S., adopting the Petaluma 2015-2023 Housing Element; and
Resolution No. 2018-142 N.C.S. Page 1
WHEREAS, on January 23, 2015, the state Housing and Community Development
Department ("HCD") approved the 2015-2023 Housing Element as approved by the City
Council; and
WHEREAS, on November 2, 2015 the City Council approved Resolution No. 2015-171
N.C.S., adopting a First Amendment to the 2015-2023 Housing Element Program 4.3 to ensure
consistency between the City's Housing Element and the holding in Palmer/Sixth Street
Properties, L.P. v. City of Los Angeles, (2009) 175 CA 4th 1396, which held that the Costa -
Hawkins Act, Civil Code section 1954.53(a), prohibits local agencies from requiring on-site
inclusionary housing in rental housing developments; and
WHEREAS, recent amendments to the state Planning and Zoning Law, which is codified
in Government Code section 65000 and following ("Planning Law") pursuant to AB -1505,
which took effect January 1, 2018 and is codified in Government Code sections 65850 and
65850.1, permit cities to adopt ordinances requiring inclusion of affordable residential units for
moderate, low, very low, and extremely low income households in rental housing developments,
and require that such ordinances provide alternate means of compliance that may include, but are
not limited to, in -lieu fees, land dedication, off-site construction, or acquisition and rehabilitation
of existing units, and grant HCD the authority to review certain such ordinances that require
more than 15 percent of the total number of units in a residential rental development to be
affordable to households earning 80 percent or less of area median income; and
WHEREAS, the 2015-2023 Housing Element as amended identifies and analyzes
existing and projected housing needs and states goals and policies, and quantifies objectives and
special programs for the reservation, improvement and development of housing in the City from
2015 through 2023; and
WHEREAS, Policy 4.2 of the 2015-2023 Housing Element currently provides for
assigning a share of the responsibility for providing affordable housing to the developers of
market -rate housing and non-residential projects; and
WHEREAS, Program 4.3 of the 2015-2023 Housing Element currently provides for
continuing to require residential projects of five or more units to contribute to provision of
below-market rate housing by: dedicating 15% of the units on-site or a portion of the project site
or property to the City or a non-profit organization for use as affordable housing; encouraging
developers of projects within a half -mile radius of the planned Sonoma Marin Area Rail Transit
District ("SMART") stations to provide at least 15 percent of the units in a rental housing project
at rents affordable to very low and low income households for a minimum period of 30 years;
requiring developers of for sale projects within a half -mile radius of the planned SMART
stations to provide at least 15% of the units at prices affordable to low and moderate income
households for a minimum period of 30 years; or by making an in -lieu payment to the City's
housing fund; or by using alternative methods to meet the intent of the inclusionary requirement,
subject to approval by the City Council; and
WHEREAS, the City has 2,161 housing units in various stages of development but only
75 of the units are affordable in accordance with the City's inclusionary housing requirements;
and
WHEREAS, in -lieu fees collected by the City in accordance with Program 4.3 of the
2015-2023 Housing Element are insufficient to fund construction of sufficient numbers of
affordable housing units to meet the City's projected housing needs; and
Resolution No. 2018-142 N.C.S. Page 2
WHEREAS, the City contracted with Economic and Planning Systems ("EPS") to
complete studies ("EPS Studies") to identify funds the City could lawfully recover from
inclusionary housing in -lieu fees and to provide information and analysis in support of potential
updates to the City's affordable housing fees; and,
WHEREAS, at a City Council workshop on September 25, 2017, EPS gave an
Affordable Housing Fees presentation ("Presentation"), presented an administrative draft
memorandum ("Memorandum"), and a draft Ownership Inclusionary Housing In -lieu Fee report,
a draft Nexus -Based Affordable Housing Fee Analysis for Ownership Housing report, a draft
Nexus -Based Affordable Housing Fee Analysis for Rental Housing report, and a draft
Commercial Linkage Fee Nexus Study report all dated August 29, 2017 and all referred to as the
"Reports," and
WHEREAS, the Presentation, Memorandum and the Reports detailed a gap between
market prices of housing in the City and prices affordable to very low, low, and moderate -
income households, and included a proposed per square foot in -lieu fee for rental and ownership
projects based on the affordability gap; and
WHEREAS, the City Council hereby approves the Presentation, Memorandum and the
Reports, which are by this reference hereby made a part of this resolution; and
WHEREAS, it is the desire of the City Council to approve an inclusionary housing
ordinance in accordance with the authority in AB -1505 to require on-site inclusionary housing
units as part of residential housing development projects, both homeownership and rental, in the
City to mitigate the effect of new market rate housing on the City's stock of affordable housing,
to increase the number of affordable units in the city, and to distribute the affordable units
throughout the city to obtain the benefits of economically diverse communities and generally to
ensure the provision of affordable housing to help address the City's Regional Housing Need
Allocation and the acute housing crisis in Sonoma County, and to provide for alternative means
of compliance as AB -1505 requires; and
WHEREAS, it is the desire of the City Council to increase the City's Inclusionary
Housing In -Lieu fee in accordance the EPS Presentation, the Memorandum, and the Reports, to
apply to developers of residential housing that the Council permits to make a payment in -lieu of
providing affordable housing on site to more closely approach developers' fair -share
responsibility toward contributing to implementing the City's 2015-2023 Housing Element
policies and programs; and
WHEREAS, in accordance with the holding of the California Supreme Court in
California Building Association v. City of San Jose, (2015) 61 Cal. 4th 435, where a city adopts
an inclusionary ordinance to mitigate the effect of new market rate housing on the City's stock of
affordable housing, to increase the number of affordable units in the city, and to distribute the
affordable units throughout the city to obtain the benefits of economically diverse communities,
such an ordinance is not an exaction, if it imposes lawful, non -confiscatory land use restrictions
in the form of price limits; and
WHEREAS, under California Building Association, inclusionary ordinances, to be valid,
need only be reasonably related to the broad general welfare purposes for which they are
enacted, and such inclusionary housing ordinances that require residential projects to provide a
reasonable amount of on-site affordable units, and offer reasonable alternative means of
satisfying the ordinance's inclusionary objectives, such as payment of in -lieu fees, land
dedication, and off-site construction are valid local land use regulations and not takings; and
Resolution No. 2018-142 N.C.S. Page 3
WHEREAS, the City Council finds that this resolution and the inclusionaiy housing in -
lieu fee it establishes is a valid local land use regulation and does not affect a taking in
accordance with California Building Association; and
WHEREAS, on June 7, 2018, public notice of a June 18, 2018 public hearing before the
City Council to consider proposed inclusionary housing amendments to the IZO and proposed
increases to the City's inclusionary housing fees was published in the Argus -Courier as an eighth
page ad; and
WHEREAS, on June 18, 2018, the City Council of the City of Petaluma held a duly
noticed public hearing to consider the proposed IZO amendments and inclusionary fees and
continued the item to a date certain of August 6, 2018; and
WHEREAS, on August 6, 2018, the City Council continued the item to a date certain of
September 10, 2018; and
WHEREAS, on September 10, 2018 the City Council of the City of Petaluma held a
duly noticed public hearing to consider proposed amendments to the IZO, Ordinance 2300
N.C.S. incorporating inclusionaiy housing requirements into the IZO and proposed increases to
the City's inclusionary fees; and
WHEREAS, this resolution and the inclusionary housing in -lieu fee it establishes is
exempt from environmental review under the general rule in Section 15061(b)(3) of the
California Environmental Quality Act ("CEQA") Guidelines because CEQA applies only to
projects that have the potential for causing a significant effect on the environment, and it can be
seen with certainty that there is no possibility that this resolution and the inclusionary housing in -
lieu fee it establishes creates changes in the physical environment, or results in any changes to
the General Plan or Implementing Zoning Ordinance land use policies, and any development that
occurs in the future subject to such standards will undergo an independent analysis pursuant to
the requirements of CEQA; and
WHEREAS, this resolution and the inclusionary housing in -lieu fee it establishes is
statutorily exempt pursuant to Section 15283 of the CEQA Guidelines because this resolution
and the inclusionary housing in -lieu fee reflect determinations by the City regarding the need to
adequately provide for the City's share of regional housing needs pursuant to Government Code
section 65584; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The above recitals are hereby declared to be true and correct and are incorporated into
this resolution as findings of the City Council of the City of Petaluma.
2. The in -lieu inclusionary housing fee schedule attached to and hereby made a part of
this resolution as Exhibit A shall apply to payments to the City's housing fund which
the City Council permits developers to make in -lieu of provision of on-site affordable
housing in accordance with Policy 4.2 and Program 4.3 of the 2015-2023 Housing
Element.
Resolution No. 2018-142 N.C.S. Page 4
3. In -lieu fees authorized pursuant to this resolution shall be paid and collected on
behalf of the City at the time escrow closes on purchase of for -sale residential units,
and at the time of issuance of a certificate of occupancy for rental units.
4. Except as provided in Section 6, below, the in -lieu inclusionary housing fees
established pursuant to Resolution no. 2003-241 N.C.S. and any other previously -
enacted in -lieu inclusionary housing fees are hereby repealed and shall no longer be
of any effect on the date this resolution takes effect.
5. If any section, subsection, sentence, clause, phrase or word of this resolution is for
any reason held to be unconstitutional, unlawful, or otherwise invalid by a court of
competent jurisdiction or preempted by state legislation, such decision or legislation
shall not affect the validity of the remaining portions of this resolution. The City
Council of the City of Petaluma hereby declares that it would have passed and
adopted this resolution and each and all provisions thereof irrespective of the fact that
any one or more of said provisions be declared unconstitutional, unlawful, or
otherwise invalid.
6. This resolution shall become effective upon its adoption, except that any residential
project application or mixed-use project application with a residential component that
either a) has a recorded final map as of January 1, 2019 that is consistent with the
previously approved tentative map (regardless of whether further subdivision or
further discretionary approvals for the project are required) or b) that is deemed
complete by the Planning Division prior to January 1, 2019 shall be subject to those
in -lieu fees in effect immediately prior to the new housing in lieu fees adopted
pursuant to this resolution taking effect. The exception in clause a) of this provision
for residential project applications or mixed-use project applications with residential
components that have recorded final maps as of January 1, 2019 shall expire and
cease to be of any effect without further action of the City Council concerning project
applications that would otherwise qualify for the exemption but that are not deemed
complete prior to January 1, 2024.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE:
I hereby certify the foregoing Resolution was introduced and adopted by the Approved to
Council of the City of Petaluma at a Regular meeting on the 10th day of September for
2018, by the following vote:
City Attorney
AYES:
Albertson, Barrett, Mayor Glass, Vice Mayor Healy, Kearney, King, Miller
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
City Clerk Cgayor
Resolution No. 2018-142 N.C.S. Page 5
EXHIBIT A
IN -LIEU HOUSING FEES (5 units or more - based on square footage) see Tables below:
Sq. Ft
Fee
Sq. Ft
Fee
Sq. Ft
Fee
Sq. Ft.
Fee
Sq. Ft
Fee
640
$6,477
960
$9,715
1280
$12,954
1600
$16,192
1920
$19,430
650
$6,578
970
$9,816
1290.
$13,055
1610
$16,293
1930
$19,532
660
$6,679
980
$9,918
1300
$13,156
1620
$16,394
1940
$19,633
670;
$6,780
990;
$10,019
1310
$13,257 1
1630
$16,496
1950
$19,734
680 ;
$6,882
1000
$10,120
1320
$13,358
1640
$16,597
1960
$19,835
690
$6,983
1010,
$10,221
1330
$13,460
1650
$16,698
1970
$19,936
700
$7,084
1020
$10,322
1340,
$13,561
1660
$16,799
1980
$20,038
710
$7,185
1030
$10,424
1350,
$13,662
1670
$16,900
1990
$20,139
720 1
$7,286
1040
$10,525
1360
$13,763
1680
$17,002
2000
$20,240
730;
$7,388
1050
$10,626
1370,
$13,864
1690
$17,103
2010
$20,341
740
$7,489
1060
$10,727
1380
$13,966
1700
$17,204
2020
$20,442
750
$7,590
1070
$10,828
1390;
$14,067
1710
$17,305
2030
$20,544
760
1 $7,691
1080
$10,930
1400
$14,168
1720
$17,406
2040
$20,645
770
$7,792
1090
$11,031
1410
$14,269
1730
$17,508
2050
$20,746
780;
$7,894
1100.
$11,132
1420,
$14,370
1740
$17,609
2060
$20,847
790,
$7,995
1110,
$11,233
1430
$14,472
1750
$17,710
2070
$20,948
800
$8,096
1120
$11,334
1440
$14,573
1760
$17,811
2080
$21,050
810 '
$8,197
1130
$11,436
1450
$14,674
1770
$17,912
2090
$21,151
820
1 $8,298
1140
$11,537
1460
$14,775
1780
$18,014
2100
$21,252
830
$8,400
1150
$11,638
1470
$14,876
1790
$18,115
2110
$21,353
840
$8,501
1160
$11,739
1480,
$14,978
1800
$18,216
2120
$21,454
850
$8,602
1170
$11,840
1490:
$15,079
1810
$18,317
2130
$21,556
860
$8,703
1180
$11,942
1500
$15,180
1820
$18,418
2140
$21,657
8701
$8,804
1190;
$12,043
1510,
$15,281
1830
$18,520
2150
$21,758
880 ;
$8,906
1200 ;
$12,144
1520
$15,382
1840
$18,621
2160
$21,859
890
$9,007
1210'
$12,245
1530
$15,484
1850
$18,722
2170
$21,960
900
$9,108
1220
$12,346
1540
$15,585
1860
$18,823
2180
$22,062
910_
$9,209
1230
$12,448
1550
$15,686
1870
$18,924
1 2190
$22,163
920
$9,310
1240 _
$12,549
1560
$15,787
1880
$19,026
2200
$22,264
930
$9,412
1250
$12,650
1570
$15,888
1890
$19,127
2210
$22,365
940
$9,513
1260
$12,751
1580
$15,990
1900
$19,228
2220
$22,466
950
$9,614
1270
$12,852
1590
$16,091
1910
$19,329
2230
$22,568
Resolution No. 2018-142 N.C.S. Page 6
Sq. Ft
Fee
Sq. Ft
Fee
Sq. Ft
Fee
Sq. Ft.
Fee
Sq. Ft
Fee
2240
$22,669
2560
$25,907
2880
$29,146
3200
$32,384
3520
$35,622
2250
$22,770
2570
$26,008
2890
$29,247
3210
$32,485
3530
$35,724
2260
$22,871
2580
$26,110
2900
$29,348
3220
$32,586
3540
$35,825
2270
$22,972
2590
$26,211
2910
$29,449
3230
$32,688
3550
$35,926
2280
$23,074
2600
$26,312
2920
$29,550
3240
$32,789
3560
$36,027
2290
$23,175
2610
$26,413
2930
$29,652
3250
$32,890
3570
$36,128
2300
$23,276
2620
$26,514
2940
$29,753
3260
$32,991
3580
$36,230
2310
$23,377
2630
$26,616
2950
$29,854
3270
$33,092
3590
$36,331
`2320
$23,478
2640
$26,717
2960
$29,955
3280
$33,194
3600
$36,432
2330
$23,580
2650
$26,818
2970
$30,056
3290
$33,295
3610
$36,533
2340
$23,681
2660
$26,919
2980
$30,158
3300
$33,396
3620
$36,634
2350
$23,782
2670
$27,020
2990
$30,259
3310
$33,497
3630
$36,736
2360
$23,883
2680
$27,122
3000
$30,360
3320
$33,598
3640
$36,837
2370
$23,984
2690
$27,223
3010
$30,461
3330
$33,700
3650
$36,938
2380
$24,086
2700
$27,324
3020
$30,562
3340
$33,801
3660
$37,039
2390,
$24,187
2710
$27,425
3030
$30,664
3350
$33,902
3670
$37,140
2400
$24,288
2720
$27,526
3040
$30,765
3360
$34,003
3680
$37,242
2410
$24,389
2730
$27,628
3050
$30,866
3370
$34,104
3690
$37,343
2420
$24,490
2740
$27,729
3060
$30,967
3380
$34,206
3700
$37,444
2430
$24,592
2750
$27,830
3070
$31,068
3390
$34,307
3710
$37,545
2440
$24,693
2760
$27,931
3080
$31,170
3400
$34,408
3720
$37,646
2450
$24,794
2770
$28,032
3090
$31,271
3410
$34,509
3730
$37,748
2460
$24,895
2780
$28,134
3100
$31,372
3420
$34,610
3740
$37,849
2470
$24,996
2790
$28,235
3110
$31,473
3430
$34,712
3750
$37,950
2480
$25,098
2800
$28,336
3120
$31,574
3440
$34,813
3760
$38,051
2490
$25,199
2810
$28,437
3130
$31,676
3450
$34,914
3770
$38,152
2500
$25,300
2820
$28,538
3140
$31,777
3460
$35,015
3780
$38,254
2510
$25,401
2830
$28,640
3150
$31,878
3470
$35,116
3790
$38,355
2520
$25,502
2840
$28,741
3160
$31,979
3480
$35,218
3800
$38,456
2530
$25,604
2850
$28,842
3170
$32,080
3490
$35,319
3810
$38,557
2540
$25,705
2860
$28,943
3180
$32,182
3500
$35,420
3820
$38,658
2550
$25,806
2870
$29,044
3190
$32,283
3510
$35,521
3830
$38,760
Resolution No. 2018-142 N.C.S. Page 7