The purpose of this chapter is to encourage the development and availability of affordable housing in the above moderate income category in an effort to provide housing for middle income and critical work force households that cannot afford the cost of housing in Carpinteria, and to ensure that the private sector, as well as the public sector, contributes to and participates in providing adequate housing for all economic segments of Carpinteria.

Government Code Section 65580 et. seq. mandates that the city implement programs to ensure there are sufficient sites to address the community's housing needs, offset the demand on housing created by new development, and protect the economic diversity of the city's housing stock by promoting the development of affordable housing. The city's housing element further mandates that the city adopt an inclusionary housing ordinance.

(Ord. 590 § 1 (part), 2004)

As a condition of approval, all residential development projects of five or more housing units involving a subdivision map for the purpose of creating individual ownership units or parcels shall construct twelve (12) percent of the total units for a target sales price set at a price affordable to households earning one hundred twenty one (121) percent of the area median income, as specified herein.

(Ord. 590 § 1 (part), 2004)

The following types of residential projects are excluded from the requirements of this chapter:

1.

Residential developments of four housing units or less;

2.

A project proposing rental dwelling units that may not be separately owned or conveyed under the State Subdivision Map Act;

3.

Residential building additions, repairs or remodels; provided that such work does not increase the number of existing units by five or more units;

4.

Housing projects that are comprised entirely of units restricted for long-term affordability to moderate, low, or very-low income households, as defined by the State Health and Safety Code;

5.

Project sites identified in the General Plan and/or Local Coastal Plan as having specific affordable housing requirements (e.g., Carpinteria Bluffs); and

6.

Projects that replace or restore residential units damaged or destroyed by fire, flood, earthquake or other disaster; provided that such replacement or restoration does not increase the number of existing units by five or more units.

(Ord. 590 § 1 (part), 2004)

1.

Inclusionary Requirement. On-site inclusionary housing is the required method for providing inclusionary housing, unless it is determined by the city to be infeasible. The inclusionary unit requirement shall be twelve (12) percent of the total market-rate units of a residential development.

2.

Price Limits. Inclusionary units shall be restricted and sold at prices affordable to households earning one hundred twenty one (121) percent of the area median income, calculated according to procedures specified in the city's affordable housing polices and procedures.

(Ord. 590 § 1 (part), 2004)

The number of inclusionary units required for a particular project will be determined at the time an application for discretionary development approval is deemed complete. When calculating the required number of inclusionary units, any fraction of a unit shall be rounded up to the nearest whole number.

(Ord. 590 § 1 (part), 2004)

1.

A developer may request and the city may approve one incentive to facilitate the construction of inclusionary units, if the applicant can demonstrate that the modification is necessary to provide for affordable housing cost, as defined in this chapter.

2.

No development incentive or concession shall be granted pursuant to this chapter if such incentive or concession is inconsistent with or violates the California Coastal Act and those policies and regulations of the city's Local Coastal Plan established to protect coastal resources.

a.

Incentives for condominium multi-family development may include one of the following:

(1)

Allow an encroachment into the required side yard setback up to three feet from the property line, provided any structure on the adjacent parcel is setback a minimum of five feet from the side property line;

(2)

Allow a modification to the requirement for covered parking spaces;

(3)

Allow building coverage to exceed zoning ordinance standards;

(4)

Allow a modification to requirements for separation between structures on the same site or parcel;

(5)

Allow a modification of private or common open space requirements, not to exceed twenty-five (25) percent; or

(6)

Allow a modification to any other development standard that is mutually agreed to by the city and the applicant that can be demonstrated as necessary to provide for affordable housing cost, as defined in this chapter.

b.

Incentives for single-family development may include one of the following:

(1)

Allow an encroachment into the required side yard setback up to three feet from the property line, provided any structure on the adjacent parcel is setback a minimum of five feet from the side property line;

(2)

Allow building coverage to exceed zoning ordinance standards;

(3)

Allow tandem parking in garages;

(4)

Allow a modification to the minimum lot size requirement; or

(5)

Allow a modification to any other development standard that is mutually agreed to by the city and the applicant that can be demonstrated as necessary to provide for affordable housing cost, as defined in this chapter.

The city may deny the requested incentive, if one of the following findings is made:

(A)

That the incentive requested by the developer is not required to provide for affordable housing costs to meet the target income levels; or

(B)

That the incentive requested by the developer would have a specific adverse impact upon the public health, safety, welfare or the physical environment or on real property that is listed in the Register of Historic Resources.

(Ord. 590 § 1 (part), 2004)

The city, in its sole discretion, shall determine whether the construction of onsite units is feasible. The city shall consider a variety of factors on a project specific basis, which factors may include:

1.

The availability of affordable units in the surrounding area;

2.

Whether the construction of on-site affordable units would overly concentrate such units within any specific area;

3.

Financial and economic feasibility;

4.

Available infrastructure or environmental factors;

5.

Land use incompatibility; or

6.

Any other factors that the city deems appropriate.

Only after a determination by the city that the provision of on-site units is not feasible may the developer pay the in-lieu fee specified in Section 14.75.090 to satisfy the inclusionary housing requirements provided for in this chapter.

(Ord. 590 § 1 (part), 2004)

Inclusionary housing units built under the provisions of this chapter shall conform to the following standards:

1.

Design. Except as otherwise provided in this chapter, or specified in an Inclusionary Housing Agreement, inclusionary units shall be configured within a residential development in a manner acceptable to the city. The units must utilize the infrastructure installed for the residential development and shall be compatible with market-rate units with regard to materials and exterior design. The facades of inclusionary units shall be constructed of the same materials as the market-rate units in the same project. Inclusionary units shall be no more than twenty (20) percent smaller in overall square footage than the average market rate units in the same development; and

2.

Timing. All inclusionary units must be constructed and occupied concurrently with or prior to the construction and occupancy of market-rate units. In phased developments, inclusionary units may be constructed and occupied in proportion to the number of units in each phase of the residential development.

(Ord. 590 § 1 (part), 2004)

If the city determines that the production of on-site inclusionary units is infeasible in conjunction with a residential development, a fee will be charged for every inclusionary unit required by this chapter, but which is not provided on-site. The amount of the in-lieu fee shall be fixed by a schedule adopted. from time to time, by resolution of the city council, as provided in this section.

1.

Fees to be Set. The required in-lieu shall be set based on an inclusionary housing requirement of twelve (12) percent of the on-site market-rate units. If a proposed residential project proposes both single-family detached development and condominium units, the in-lieu fee shall be calculated based on twelve (12) percent of each proposed unit type. The in-lieu fee amount for a proposed housing development shall be set as of the date of city council approval for the tentative subdivision map.

2.

Calculation for Condominium Projects. The in-lieu fee shall be sufficient to make up the monetary difference between the following:

a.

The median sales price of a condominium unit in the city, and

b.

The sales price of a condominium unit affordable to an above-moderate income household earning one hundred twenty one (121) percent of the area median income calculated according to the procedure specified in the city's Affordable Housing Policies and Procedures.

The target income for this calculation shall be one hundred twenty-one (121) percent of the area median income and the percentage of total income expended on housing costs for this calculation shall be thirty (30) percent. The median sale price of condominium units in the city shall be established by the city council, based on data provided by sources selected by the city council, for sales during the calendar year prior to the calculation. The city council may annually review the median sale price of condominium units in the city, and may, based on that review, adjust the in-lieu fee amount.

3.

Calculation for Single-Family Detached Residential Projects. The in-lieu fee shall be sufficient to make up the monetary difference between the following:

a.

The median sales price of single-family residences in the city, and

b.

The sales price of a single-family residence affordable to an above-moderate income household earning one hundred twenty-one (121) percent of the area median income calculated according to the procedure specified in the city's Affordable Housing Policies and Procedures.

The target income for this calculation shall be one hundred twenty-one (121) percent of the area median income and the percentage of total income expended on housing costs for this calculation shall be thirty (30) percent. The median sale price of single-family residences in the city shall be established by the city council based on data provided by sources selected by the city council, for sales during the calendar year prior to the calculation. The city council may annually review the median sale price of single-family residences in the city, and may, based on that review, adjust the in-lieu fee amount.

4.

Fee Reduction for Small Units. For residential developments where the interior dwelling size of at least two-thirds of the market-rate units is one thousand two hundred (1,200) square feet or less, the amount of in-lieu fee shall be reduced by twenty (20) percent.

5.

Timing of Fee Payment. In-lieu fees shall be paid into the affordable housing trust fund prior to issuance of a building permit for the first dwelling within a residential development. For residential subdivisions to be built in phases, the developer shall pay the pro rata portion of the fee prior to the issuance of a building permit for the first dwelling unit within each respective phase of a residential development. In the event that the developer intends to pay the in-lieu fee from proceeds of a bank construction loan, and such bank requires the issuance of a building permit prior to funding the construction loan, the developer may request that the community development director issue the building permit prior to payment of the fee. The community development director may approve such request provided the developer agrees in writing that the fee will be paid within ten (10) days after the issuance of the building permit and further agrees that the building permit will be deemed revoked by the city and work undertaken pursuant to the building permit stopped if the in-lieu fee is not paid within such ten-day period.

6.

Delayed Payment. When payment is delayed, in the event of default, or for any other reason, the amount of the in-lieu fee payable under this section will be based upon the greater of the fee schedule in effect at the time the fee is paid or the fee schedule in effect at the time of final approval.

(Ord. 590 § 1 (part), 2004)

The city hereby authorizes establishment of an affordable housing trust fund. The in-lieu fees collected shall be deposited into the affordable housing trust fund. The fund shall be used exclusively for the provision of affordable housing and for reasonable costs associated with the development, maintenance and oversight of such housing. The fund includes in-lieu fees as well as other funds available to the city for exclusive use for the provision of affordable housing. Within this fund monies from different programs shall be accounted for in separate accounts.

(Ord. 590 § 1 (part), 2004)

1.

General. No residential development for which this chapter applies shall be deemed approved without approval of an inclusionary housing plan or a condition requiring the payment of the in-lieu fee.

2.

Inclusionary Housing Plan. No application for residential development for which this chapter applies shall be deemed complete until an inclusionary housing plan has been submitted. At a minimum the inclusionary housing plan must contain the following elements:

a.

A site plan depicting the location of proposed inclusionary units;

b.

A floor plan, and elevations of the proposed inclusionary units;

c.

Identification of the targeted income level for the proposed inclusionary units;

d.

Calculation of the proposed number of inclusionary units consistent with this chapter;

e.

A written explanation of the method for restricting the units for the required term at the targeted income level;

f.

If the developer is proposing to meet the inclusionary housing requirement through payment of the in-lieu fee, the plan must include a description of why the developer believes the provision of on-site inclusionary housing is not feasible;

g.

A description of any incentive request per Section 14.75.060 and supporting evidence for the request; and

h.

Any other information that may be requested by the city manager to aide in the evaluation of the sufficiency of the plan under the requirements of this chapter.

3.

Inclusionary Housing Agreement. No residential development for which this chapter applies shall be deemed approved without approval of an inclusionary housing agreement. An inclusionary housing agreement shall be approved at the time of city council approval of the final subdivision map. Said agreement must be in a form as specified by the city, and at a minimum shall include the following:

a.

Legal description of the property;

b.

Project description including number of inclusionary units to be provided, method of providing said unit, and identification of the specific lots and/or units to be restricted at affordable levels;

c.

Provisions and/or documents for resale restrictions, deeds of trust, and rights of first refusal;

d.

Provisions for monitoring compliance with the terms of the inclusionary housing agreement, and the process for qualifying prospective resident households for income eligibility;

e.

Any development standard modifications that the developer is proposing to incorporate as a part of the proposed project; and

f.

Any other provisions deemed necessary by the city manager for compliance with the requirements of this chapter.

4.

Affordability Control Covenants. Prior to issuance of a building permit, an affordability control covenant must be approved and executed by the community development director, executed by the developer, and recorded against the title of each inclusionary unit. If subdivision into individual property parcels has not been finalized at the time of issuance of grading permit or building permit, an overall interim affordability control covenant shall be recorded against the residential development, and shall be replaced by separate recorded affordability control covenants for each unit prior to issuance of a Certificate of Occupancy by the city for such units.

(Ord. 590 § 1 (part), 2004)

The city shall adopt affordable housing policies and procedures to guide the day-to-day implementation of the inclusionary housing requirements in this chapter. General requirements for implementation are outlined in Sections 14.75.130 and 14.75.140; however, additional criteria may be added in the affordability covenant for an inclusionary unit.

(Ord. 590 § 1 (part), 2004)

1.

General Eligibility. No household may purchase or occupy an inclusionary unit unless the city has approved the household's eligibility, and the household and city have executed and recorded an affordability control covenant in the chain of title of the inclusionary unit. Household income eligibility shall include an above moderate income range from one hundred twenty-one (121) percent to two hundred (200) percent of the area median income. The eligibility of the purchasing household shall be established in accordance with the city's adopted affordable housing policies and procedures and any additional eligibility requirements agreed upon in writing by the developer and the city.

2.

Owner Occupancy. A household that purchases an inclusionary unit must occupy that unit as a principal residence, as that term is defined for federal tax purposes by the United States Internal Revenue Code.

(Ord. 590 § 1 (part), 2004)

1.

Duration of Affordability Requirement. Inclusionary units produced under this chapter shall be legally restricted to occupancy by households of the specified income levels for a minimum of thirty (30) years. Nothing herein shall preclude an applicant/developer from voluntarily agreeing to restrict the affordability of inclusionary units for a term greater than thirty (30) years.

2.

Initial Sales Price. The initial sales price of an inclusionary unit based on affordable ownership cost must be set in accordance with the city's affordable housing policies and procedures, using the target income requirements specified in this chapter.

3.

Transfers and Conveyances. A new affordability controls covenant including the thirty (30) year restriction shall be entered into upon each change of ownership of an inclusionary unit and upon any transfer or conveyance (whether voluntarily or by operation of law) of an owner-occupied inclusionary unit as such covenants are required in accordance with the city's affordable housing policies and procedures.

4.

Resale Price. The maximum sales price and qualifications of purchasers permitted on resale of an inclusionary unit shall be specified in the affordability control covenant and shall be in conformance with the city's affordable housing policies and procedures.

(Ord. 590 § 1 (part), 2004)

1.

Adjustments and Waivers. The requirements of this chapter may be adjusted to propose an alternative method of compliance with this chapter or waived (in whole or in part) by the city if the developer demonstrates to the city council that applying the requirement of this chapter would be contrary to the requirements of the laws of United States or California or the constitutions thereof. Any applicant that requests an adjustment or waiver based on the contention that the uses permitted through strict application of the chapter will not provide an economically viable use of his or her property shall provide to the city all information deemed necessary by the city for it to make an economic viability determination. The obligation to provide such information shall be a continual obligation for so long as the application is subject to city review. The applicant shall be responsible for all costs related to the city's review and determination of the project's economic viability under this section, including any costs or fees incurred by the city.

2.

Timing of Waiver Request. To receive an adjustment or waiver, the developer must make an initial request of the city council for such an adjustment or waiver and a demonstration of the appropriateness of the adjustment or waiver upon application to the city for the review and approval of the proposed tentative subdivision map for a residential development.

3.

Waiver and Adjustment Considerations. In making a determination on an application to adjust or waive the requirements of this chapter, the city council may assume each of the following when applicable:

a.

That the developer is subject to the inclusionary housing requirement or in-lieu fee;

b.

The extent to which the developer will benefit from inclusionary incentives; and

c.

That the developer will only be responsible to provide the most economical inclusionary units feasible in terms of construction, design, location and tenure.

4.

Written Decision. Prior to or in conjunction with its decision on the project, the city council shall hold a public hearing and after receiving public testimony shall issue written findings on Developer's Adjustment/Waiver Request.

(Ord. 590 § 1 (part), 2004)

No final subdivision map shall be approved, nor building permit issued, nor shall any other development entitlement be granted for a residential development subject to requirements of this chapter that does not meet the requirements herein. No inclusionary unit shall be conveyed except in accordance with the requirements of this chapter.

(Ord. 590 § 1 (part), 2004)

The provisions herein shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any of the provisions hereof shall not affect the validity of the remaining provisions.

(Ord. 590 § 1 (part), 2004)

Whenever the following terms are used in this chapter, they shall have the meaning established in this Section:

1.

"Affordable housing policies and procedures" means policies and procedures for the implementation of the city's affordable housing ordinances and programs, as adopted by the city and amended from time to time.

2.

"Above moderate income" means households whose income is between one hundred twenty-one (121) percent and two hundred (200) percent of the median income for Santa Barbara County, as published and periodically updated by the State Department of Housing and Community Development.

3.

"Affordable ownership cost" means a sales price that results in a monthly housing cost (including mortgage, insurance and home association costs, if any) that does not exceed one-twelfth of thirty (30) percent of the maximum annual income for a household of the above moderate income range of one hundred twenty-one (121) percent and two hundred (200) percent of area median income.

4.

"Area median income" means the Santa Barbara County median household income as determined annually by the State of California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093(c) of the California Government Code.

5.

"City" means the city of Carpinteria.

6.

"Condominium project" means a development with attached or detached dwelling units located on a single lot where the dwelling units are designated for separate ownership with common land and facilities owned by all owners on a proportional, undivided basis, as defined in subsection (f) of Section 1351 of the State Civil Code.

7.

"Developer" means any person, firm, partnership, association, joint venture, corporation or any entity or combination of entities that seeks city approvals for all or part of a residential development.

8.

"Inclusionary housing plan" means a plan for a residential development submitted by a developer as provided by Section 14.75.110.

9.

"Inclusionary housing agreement" means a written agreement between developer and the city as provided by Section 14.75.110.

10.

"Inclusionary unit" means a dwelling unit that must be offered at an affordable ownership cost to Above-Moderate Income Households for a period of at least thirty (30) years.

11.

"In-lieu fee" means a fee paid by the developer to satisfy the requirements of the inclusionary housing requirements as specified in Section 14.75.090 of this chapter.

12.

"Market-rate unit" means any dwelling unit in a residential development that is not an inclusionary unit or a unit constructed pursuant to State Density Bonus law (Government Code Section 65195).

13.

"On-site unit" means an inclusionary unit that will be built as part of the proposed residential development and at the same location as the proposed residential development.

14.

"Residential development" means any residential development subject to the provisions of this chapter, which includes the construction of new units or the conversion of units from rental to ownership.

15.

"Single-family detached residential project" means a development consisting of one-family dwellings each located on a single lot, where both the dwelling and land are owned together in fee.

(Ord. 590 § 1 (part), 2004)