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HomeMy WebLinkAboutResolution 2020-023 N.C.S. 02/03/2020Resolution No. 2020-023 N.C.S. of the City of Petaluma, California RESOLUTION OF THE CITY OF PETALUMA CITY COUNCIL APPROVING USE OF AN ALTERNATIVE METHOD TO SATISFY INCLUSIONARY HOUSING REQUIREMENTS UNDER THE CITY'S PREVIOUS HOUSING ELEMENT PROGRAM 4.3 FOR THE SID COMMONS PROJECT WHEREAS, J. Cyril Johnson Investment Corp. ("Applicant") submitted an application to the City of Petaluma for the Sid Commons apartment project, including Rezoning applications and an Environmental Impact Report to accommodate residential development at APN 019-010- 006 and 009, located at the northern terminus of Graylawn Avenue; and WHEREAS, the project application was deemed complete prior to January 1, 2019, and is therefore not subject to the City's current onsite inclusionary housing requirement as outlined in IZO Section 3.040 and Housing Element Program 4.3, but rather is subject to the previous Housing Element Program 4.3; and WHEREAS, the previous inclusionary housing requirement as specified at Housing Element Program 4.3, required either dedication of 15% of the units on-site for use as affordable housing, payment of an in -lieu fee to the City's Housing Fund (at the previous rate), or use of an alternative method to meet the intent of the inclusionary requirement subject to approval by the City Council; and WHEREAS, during the 2018 City Council hearing on the Sid Commons Apartment DEIR, in response to City Council's expressed desire for on-site affordable housing rather than payment of the allowable in -lieu fee to the City's Housing Fund, the applicant stated their intention that the Project provide affordable housing on-site; and WHEREAS, the applicant has since specified their intended inclusionary housing proposal as follows: 10% of the total on-site units shall be restricted to rents affordable to families earning up to the 80% AMI level (low income) the units shall remain inclusionary for 55 years, and the unit mix shall mirror that of the overall project and be distributed thorough the site; and WHEREAS, the City Council held a duly noticed public hearing on February 3, 2020 that included consideration of this proposal to accept provision of 10% onsite inclusionary housing at the low-income level as satisfying affordable housing requirements under the previous inclusionary housing program, at which time all interested parties had the opportunity to be heard; and WHEREAS, at said hearing, the City Council considered the staff report dated February 3, 2020, analyzing the request for use of an alternative method to meet the intent of the inclusionaty requirement; and Resolution No. 2020-023 N.C.S. Page 1 WHEREAS, public notice of the City Council hearing was published in the Petaluma Argus -Courier and mailed to residents and occupants within 1,000 feet of the Project site in compliance with state and local law; and WHEREAS, at a duly noticed hearing on February 3, 2020, the City Council adopted Resolution No. 2020-021 N.C.S., certifying an Environmental Impact Report for the Sid Commons Apartment project, in conformance with the California Environmental Quality Act (CEQA); NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: 1. The foregoing recitals are true and correct and incorporated herein by reference. 2. Based on its review of the entire record herein, the City Council makes the following findings: a. It is the desire of the City Council that Inclusionary Housing units be constructed throughout the City consistent with the goals, policies, and programs of the City's Housing Element. b. As the Sid Commons project application was deemed complete prior to January 1, 2019, it is not subject to the City's current onsite inclusionary housing requirement as outlined in IZO Section 3.040 and Housing Element Program 4.3, but to the previous inclusionary housing requirement outlined in former Housing Element Program 4.3. c. The project is compliant with the applicable, former Housing Element Program 4.3 in the City's General Plan 2025, 2015-2023 Housing Element (prior to its amendment on November 19, 2018), which contains the key points of the City's inclusionary policy: the requirement that residential projects of five or more units dedicate 15% of the units on-site for use as affordable housing, make an in -lieu payment to the City's Housing Fund (at the previous rate), or use of an alternative method to meet the intent of the inclusionary requirement subject to approval by the City Council. d. The project proposes an alternative method to meet the intent of the inclusionary requirement by providing 10% of the project units as affordable to low-income families. e. The City's Housing Division estimates that applicable in -lieu fees for the Project based on square footage of the proposed units would contribute roughly $680,000 to the City's Housing Fund (180 units averaging 960 square feet at the former rate of $3,773 for a unit of that size), which equates to the average construction cost of 1.2 residential units. f The proposed alternative method would result in construction 18 10% units (10%) affordable to families in the low-income range (up to 80% AMI). g. These units will assist the City in meeting its California Department of Housing and Community Development specified Regional Housing Needs Allocation Resolution No. 2020-023 N.C.S. Page 2 (RHNA) numbers. Petaluma's Regional Housing Need Allocation for the 2015- 2023 cycle indicates need for 103 low-income units available at 51% to 80% of average median income. h. Construction of 18 affordable units is more desirable than receiving payment into the City's Housing Fund. 3. Based on its review of the entire record herein, including the February 3, 2020 City Council staff report, all supporting, referenced, and incorporated documents, and all comments received, the City Council hereby approves the Sid Commons Apartment project's alternative method proposal as preferred over payment into the City's Housing Fund. The City Council hereby authorizes that each of the inclusionary housing units to be constructed on site (10% of the total number of Project units) be made affordable to low-income households for a period of at least 55 years, and that the unit mix shall mirror that of the overall project and be distributed thorough the site. 4. The applicant commits to provision of 10% onsite inclusionary units at the low- income level and for a term of 55 years to satisfy the inclusionary housing requirement for the Sid Commons Apartment Project. This resolution will be of no force and effect unless and until the Ordinance upholding the appeal filed by the applicant, overturning the Planning Commission's denial, and amending the Implementing Zoning Ordinance, Ordinance 2720 N.C.S. takes effect, and upon Ordinance 2720 N.C.S. taking effect, this resolution will take effect without further action of the City Council. 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 Council of the City of Petaluma at a Regular meeting on the 31d day of February 2020, by the following vote: AYES: Healy; Kearney; King; McDonnell; Miller NOES: Mayor Barrett; Vice Mayor Fischer ABSENT: None ABSTAIN: None l ATTEST: City Clerk to Mayor Resolution No. 2020-023 N.C.S. Page 3