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Home My WebLink About11A - 2ND READ ORD - PIPELINE PROJECTS ONLY - HOUSING OPPORTUNITY ORDPIPELINE PROJECTS ONLY HOO HOUSING OPPORTUNITY ORDINANCE REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 6, 2015 TITLE: ORDINANCE SECOND READING: ZONING ORDINANCE AMENDMENT NO. 2015 -03 TO UPDATE THE HOUSING OPPORTUNITY ORDINANCE TC ALLOW PAYMENT OPTION TO PIPELINE PROJECTS, ALLOW DEVELOPERS OF FOR -SALE UNITS THE OPTION OF RENTING OR SELLING, AND ALLOW PERMITTED CONCESSIONS TC DEVELOPERS OPTING TO PROVIDE INCLUSIONARY HOUSING UNITS (S=/Z n O. ) CITY M ANAG R RECOMMENDED ACTION Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER On September 15, 2015, the following Ordinance was introduced for first reading and City Council authorized publication of title by a vote of 7 -0: ORDINANCE NO. NS -2885 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE XVIII.I OF THE SANTA ANA MUNICIPAL CODE REGARDING THE HOUSING OPPORTUNITY ORDINANCE STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). FISCAL IMPACT There is no fiscal impact associated with this action. Maria D. Huizar, Clerk of the Council ATTACHMENT: Ordinance No. NS -2885 11 A -1 11 A -2 LS 9.10.15 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLE XVIII.I OF THE SANTA ANA MUNICIPAL CODE REGARDING THE HOUSING OPPORTUNITY ORDINANCE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: A. On September 1, 2015, City Council recently updated the Housing Opportunity Ordinance (Ordinance No. NS -2881) to allow for more consistent implementation of the ordinance as well as to simplify the calculation of the in lieu fee. B. Upon review of the updated ordinance, a few additional areas were identified that warrant an amendment to the updated Housing Opportunity Ordinance. SECTION 2. The following sections of Article XVIII.I (Housing Opportunity Ordinance) are hereby amended as follows: Sec. 41.1902. Applicability and Inclusionary Unit Requirements (a) Applicability. The requirements of this Article shall apply to any new Residential Project located within the City, including new construction, and condominium conversions which exceed the General Plan prescribed densities. (b) Applications. The requirements of this Article shall apply to any new Residential Project proposed in connection with an application to do any of the following: (1) Increase the permitted residential density of the subject property above the density permitted by applicable zoning at the time of the application. The inclusionary requirements shall only apply to the incremental increase in the number of units beyond that which is allowed by the applicable zoning. (2) Increase in the permitted residential density or percentage of residential development allowed due to City initiated zone changes after November 28, 2011. (3) Increase the permitted percentage of residential development allowed for a mixed -use development above the percentage at the time of the application. Ordinance No. 2015 -XXX Page 1 of 5 11 A -3 LS 9.10.15 The inclusionary requirements shall only apply to the incremental increase in the number of units beyond that which is allowed by the applicable zoning. (4) Approval of new projects in an overlay zone site plan permitting residential land uses pursuant to Division 28 of this Chapter. (5) Convert rental units to condominium ownership. The inclusionary requirements shall only apply to the incremental increase in the number of units beyond that which is allowed by the applicable zoning. (c) Units for sale. If the new Residential Project consists of units for sale, then a minimum of 15- percent of the total number of units in the project shall be sold or rented to Low Income Households. (d) Rental units. If the new Residential Project consists of rental units, then a minimum of 15- percent of the units shall be rented to Low - Income Households, or 10- percent rented to Very Low - Income Households. (e) Rounding of quantities in calculations. In calculating the required number of Inclusionary Units, fractional units shall be rounded -up to the next whole unit. The Developer may choose to pay an in -lieu fee set forth in Section 41- 1904(c) for the fractional units, which shall be calculated based on the number of habitable square feet applicable in each case. (f) Displacement of existing Inclusionary Units. Notwithstanding any other provision of this Article, any Residential Project subject to this Article that results in the displacement of Very Low and /or Low Income Household(s) shall be required to provide on -site Inclusionary Units as required by this Article. (g) Compliance with Article. All Inclusionary Units required by this Article shall be sold or rented in compliance with this Article. Sec. 41- 1904.1. Inclusionary Housing Development Incentives For Production of Units (a) In order to make the production of new Inclusionary Units on -site or off -site or off - site rehabilitated units, certain incentives, standards and concessions shall be allowed and prescribed as set forth herein below. Such concessions shall not be available to those Developers that choose to pay an in lieu fee rather than build the units. The Developer may opt to take advantage of up to two (2) concessions among the following possible concessions: Ordinance No. 2015 -XXX Page 2 of 5 11 A -4 LS 9.10.15 (1) Parking Concession: one (1) on -site parking space for each 0 -1 bedroom unit; two (2) on -site parking spaces for each 2 -3 bedroom unit; 2'/2 parking spaces for each 4 or more bedroom unit. (2) Concession on one of the following Zoning Code site development standards: (i) Setback reduction of up to 25% reduction on subject property; (ii) Height increase of up to 20 additional feet; (iii) Density Bonus such that: a) An applicant must select only one housing affordability income level to merit a density bonus. A combination of affordable housing income levels is not permitted to be combined to increase the amount of density bonus. b) For each 1 percent increase above 15 percent in the percentage of units affordable to low income households, the density bonus shall be increased by 1.5 percent up to a maximum of 35 percent. c) For each 1 percent increase above 10 percent in the percentage of units affordable to very low income households, the density bonus shall be increased by 2.5 percent up to a maximum of 35 percent. Sec. 41 -1910. Administrative (a) In -Lieu Fee Calculation. The amount per square foot of the inclusionary housing in- lieu fee shall be subject to City Council review and consideration before the end of calendar year 2018, but after June 30, 2018. Between July 1, 2018 and December 31, 2018, staff shall report on the effectiveness of this ordinance and provide options for Council consideration on the components of this ordinance, including, but not limited to, the monetary amount of inclusionary in -lieu fee per square foot. (b) Pipeline Projects. The applicant(s) of any project for which a site plan review application was submitted and such application was deemed complete prior to August 4, 2015 may either construct the inclusionary units pursuant to the prior Housing Opportunity Ordinance (Ordinance No. NS -2825) or pay an in lieu fee calculated by the formula under the prior Housing Opportunity Ordinance (Ordinance No. NS -2825) or request to revise its Inclusionary Housing Plan and /or Inclusionary Housing Agreement and pay an in -lieu fee of $9.35 per square foot of habitable space for the entire Project's inclusionary housing obligation. (c) Administration Fees. The Council may by resolution establish reasonable fees and deposits for the administration of this Article including an annual monitoring fee and an Inclusionary Housing Plan Submittal fee. Ordinance No. 2015 -XXX Page 3 of 5 11 A -5 LS 9.10.15 (d) Monitoring /Audits. At the time of initial occupancy, and annually thereafter, the City will monitor the Project to ensure that the income verifications are correct and in compliance with the Inclusionary Housing Administrative Procedures. For ownership units, the City shall monitor to verify that owner - occupancy requirements are maintained. Developer /Property owners are required to cooperate with the City in promptly providing all information requested by the City in monitoring compliance with program requirements. The City will conduct periodic random quality control audits of Inclusionary Units to assure compliance with rules and requirements. Such audits may include verification of continued occupancy in Inclusionary Units by eligible tenants, compliance with the Inclusionary Housing Plan and Agreement, and physical inspections of the Residential Project. (e) Administrative Procedures. The City Manager is hereby authorized and directed to promulgate Administrative Procedures for the implementation of this Article. SECTION 3. Pursuant to the California Environmental Quality Act ( "CEQA ") and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to 14 California Code of Regulations section 15061, as there is no potential for causing a significant impact on the environment due to the adoption of the ordinance. As a result, Categorical Exemption Environmental Review No. 2015 will be filed for this project. SECTION 4. If any section, subsection, phrase, or clause of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared invalid or unconstitutional. ADOPTED this _ day of October 2015. APPROVED AS TO FORM: Sonia Carvalho, City Attorney Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor 11 A -6 Ordinance No. 2015 -XXX Page 4 of 5 LS 9.10.15 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS -XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on 2015, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 11 A -7 Ordinance No. 2015 -XXX Page 5 of 5 11 A -8