Claremont City Zoning Code
CHAPTER 16
036 INCLUSIONARY HOUSING
§ 16.036.000 Intent.
It is the intent of this chapter to establish standards and procedures that facilitate the development and availability of housing affordable to a range of households with varying income. The purpose of this chapter is to encourage the development and availability of such housing by ensuring that the addition of affordable housing units to the City's housing stock is in proportion with the overall increase in new jobs and housing units.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.010 Definitions.
As used in this chapter, the following terms shall have the following meanings:
means a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, five persons in the case of a four-bedroom unit, and six persons in the case of a six-bedroom unit.
means the administrative manual adopted pursuant to Section 16.036.050.E for the implementation and enforcement of the provisions of this chapter.
means the total housing costs paid by a qualifying household, which shall not exceed a specified fraction of their gross income, adjusted for household size appropriate for the unit, as follows:
means the maximum price that can be charged for an Inclusionary Unit. The Affordable sales price is equal to the lesser of:
means the difference in dollar amount between the net resale price of the inclusionary unit, as defined in the administrative manual, at the time it is sold by the initial purchaser and the fair market value of the inclusionary unit at the time of the original sale.
means the City Council of the City of Claremont.
means the difference between the fair market value of the inclusionary unit at the time of initial sale of the unit and the affordable purchase price actually paid by the initial purchaser for that unit as a consequence of the requirements set forth in this chapter.
means a proportionate share of the appreciation of each inclusionary unit based on the City principal to be paid to the City at the time of resale of an inclusionary unit by the initial purchaser in accordance with the equity share agreement. The City share of appreciation is calculated as a percentage of the appreciation which is equal to the ratio of the City principal to the fair market value of the inclusionary unit at the time of initial sale.
means persons and families whose income does not exceed 80% of the Los Angeles County area median income, adjusted for household size.
means for sale inclusionary units restricted to occupancy by Claremont low income households at the applicable affordable housing cost.
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities, which seeks City approvals for all or part of a housing development project. The term "developer" also means the owner or owners for any such property for which such approvals are sought.
means an agreement entered into between the City and a developer pursuant to Section 65865 of the California Government Code.
means the City's Director of Community Development.
means any entitlement or approval, including, but not limited to, a use permit, variance, design approval, and subdivision map.
means an agreement by which appreciation on the value of an inclusionary unit from the time of the original purchase at an affordable price to the time of resale shall be shared between the purchaser of the inclusionary unit and the City. Such an agreement shall be a condition of sale of the inclusionary unit.
means the fair market value of an inclusionary unit at the time of initial purchase of that unit without regard to any restrictions on sales price, as substantiated by an appraisal in a form and substance and by an appraiser acceptable to the City.
means the construction of new projects (including mixed use projects) requiring any approval from the City (including approval of a building permit) for which an application has been submitted to the City and which would create one or more additional dwelling units to be offered for rent or sale by construction or alteration of structures. All new construction projects creating one or more additional dwelling units to be offered for rent or sale on contiguous parcels of land by a single developer shall constitute a single housing development project subject to the requirements of this chapter, and any accompanying regulations, regardless of whether such projects are constructed all at once, serially, or in phases. The term "housing development project" shall include the conversion of rental units to for-sale units and vice versa.
means a legally binding written agreement between a developer and the City, in form and substance satisfactory to the Director and City Attorney, setting forth those provisions necessary to ensure that the requirements of this chapter, whether through the provision of inclusionary units or through an alternative method, are satisfied.
shall have the meaning set forth in Section 16.036.080.A.
means the plan referenced in Section 16.036.050 and further described in the administrative manual, which sets forth the manner in which the requirements of this chapter will be implemented for a particular housing development project.
means a dwelling unit developed pursuant to an inclusionary housing agreement that will be offered for rent or sale to low- and moderate-income households, at an affordable housing cost, pursuant to this chapter.
is defined in Health and Safety Code Section 50079.5 as persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937..
means rental inclusionary units restricted to occupancy by low income households at the applicable affordable housing cost.
means dwelling units in a housing development project that are not inclusionary units.
means persons and families whose income does not exceed 120% of the Los Angeles County area median income, adjusted for household size.
means for sale inclusionary units restricted to occupancy by moderate income households at the applicable affordable sales price.
means the agreed upon purchase price negotiated between the initial purchaser of an inclusionary unit and the subsequent buyer upon resale, which is used for the purpose of determining the amount of appreciation that is shared under the terms of the equity share agreement. The resale price shall not include any fees, escrow costs, or closing costs incurred in connection with the resale of the inclusionary unit. The City may, through the equity share agreement or the regulations adopted pursuant to this chapter, require that the seller of the inclusionary unit provide documentation, including, but not limited to, an appraisal, demonstrating that the resale price is consistent with prevailing market sales prices for comparable homes in the City.
means the rehabilitation of at least one dwelling unit that has substantial building and other code violations, and has been vacant for at least six months, such that the unit is returned to the City's housing supply as decent, safe, and sanitary housing, and the cost of such work constitutes at least 25% of the after-rehabilitation value of the dwelling unit, inclusive of the land value.
means the total monthly or annual recurring expenses required of a household to obtain shelter. For a rental unit, total housing costs include the monthly rent payment and utilities. For a for-sale unit, total housing costs include the mortgage payment (principal and interest), utilities, home-owner's association dues, homeowner's insurance, mortgage insurance, property taxes and assessments, and any other related assessments.
has the same meaning as "market rate units."
The administrative manual provides additional definitions for terms used in this chapter that are not defined in this section.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.020 Applicability.
This chapter shall apply to all housing development projects, except as provided below:
A.
Housing development projects that will contain four or fewer units.
B.
Housing development projects that are exempt from this chapter by State law.
C.
Any dwelling unit or housing development project which is damaged or destroyed by fire or natural catastrophes so long as the use of the reconstructed building and number of dwelling units remain the same, and the cost of such rehabilitation constitutes no more than 25% of the after-rehabilitation square footage of the dwelling unit, inclusive of the land value.
D.
Student dormitories, student apartments owned and developed by educational institutions, and faculty housing associated with boarding schools below the college level.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.030 Inclusionary unit requirement.
A.
Rental Units. A total of 5% of all newly constructed rental units shall be low income units, and a total of 10% of all newly constructed rental units shall be moderate income units.
B.
For-Sale Units. A total of 5% of all newly constructed for-sale units shall be Claremont low income units, and a total of 10% of all newly constructed for-sale units shall be moderate income units.
C.
In the event the calculation for the number of inclusionary units results in a fraction of an inclusionary unit, the developer shall have the option of either:
E.
Subject to the exceptions listed below, while the Housing Accountability Act (Section 65589.5 of the California Government Code) and Section 56941.1 of the California Government Code are in effect, and provided the housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, the number of inclusionary units required for a housing development project will be determined based on the requirements that are or were in effect as of the latter of: (1) the date the City's Community Development Department received a complete preliminary application that fully complies with Section 56941.1 of the California Government Code and any checklist or application form developed by the City; (2) or the date the City received full payment of any applicable filing fee for review of the preliminary application. If a housing development project does not require any discretionary approvals, submittal of a complete application for a building permit shall serve as the preliminary application.
F.
The required number of inclusionary units required for a housing development project shall be recalculated in the following circumstances:
1.
Change in Number of Units. If a change in the housing development project results in a change in the total number of units, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision under Chapter 16.033 and California Government Code Section 65915, the number of inclusionary units required shall be recalculated based on the inclusionary housing requirements in effect as of the date of submittal of the revised housing development project.
2.
Change in Square Footage. If a change in the housing development project results in the square footage of construction changing by 20% or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision under Chapter 16.033 and California Government Code Section 65915, the number of inclusionary units required shall be recalculated based on the inclusionary housing requirements in effect as of the date of submittal of the revised housing development project. For purposes of this subdivision, "square footage of construction" means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations).
3.
Failure to Timely Submit a Complete Application. If the City's Community Development Department does not receive an application for the housing development project within 180 days of receipt of the preliminary application, or if the City's Community Development Department does not receive a complete application within 90 days of notifying the applicant that the application is incomplete, then preliminary application shall expire and have no further force or effect, and the number of inclusionary units required shall be recalculated based on the inclusionary housing requirements in effect as of the date of submittal of a new preliminary application.
G.
For housing development projects that do not comply with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, and for all housing development projects if the Housing Accountability Act (Section 65589.5 of the California Government Code) or Section 56941.1 of the California Government Code are repealed or expire, the number of inclusionary units required for a housing development project will be determined based on the requirements that are or were in effect as of the latter of: the date the City's Community Development Department received a complete submittal of a proposed inclusionary housing plan; or the date the City received full payment of any applicable filing fee for review of the proposed inclusionary housing plan.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.040 Alternatives.
In lieu of providing the inclusionary units in the housing development project pursuant to Section 16.036.030, the requirements of this chapter may be satisfied through one or more of the alternatives set forth in this section, in accordance with procedures and standards set forth in the administrative manual.
A.
In Lieu Fee. For housing development projects proposing five or six units, the developer may, by right, pay a fee in lieu of providing an inclusionary unit on site. For housing development projects proposing seven units or more units, the developer may request the City Council's discretionary approval of a fee in lieu of providing all or some of the required inclusionary units on-site.
Whether by right or discretionary, all in lieu fees shall be paid as follows:
1.
The amount of the fee shall be calculated using the fee schedule established by resolution of the City Council at the time the fee is paid.
2.
One-half of the in-lieu fee required by this subsection shall be paid (or a letter of credit posted) prior to issuance of a building permit for all or any part of the housing development project. The remainder of the fee shall be paid before a certificate of occupancy is issued for any unit in the housing development project.
3.
The fees collected shall be deposited in the inclusionary housing fund.
4.
No certificate of occupancy shall be issued for any unit in a housing development project (market rate or inclusionary) unless any and all fees required under this section have been paid in full to the City.
B.
Land Dedication. In lieu of providing inclusionary units, a developer may request City Council approval to dedicate land to the City that the Director determines is suitable for the construction or substantial rehabilitation of inclusionary units. To accept a land dedication in lieu of on-site inclusionary units, the City Council must determine the fair market value of the dedicated land is equivalent to or greater than the amount of in lieu fees that would have been needed to satisfy the housing development project's inclusionary housing obligation.
C.
City Council Approval. To approve a discretionary in lieu fee, the City Council must make all of the findings set forth below. It is the developer's burden to provide any and all information needed to make these findings. Even if the City Council can make these findings, it still has discretion to deny a request for an in lieu fee and can, instead, require the housing development project meet the requirements of this chapter by providing on-site inclusionary units and/or dedicating land unless doing so would legally constitute a taking of property without just compensation under the California or Federal Constitutions.
1.
The housing development project complies with all requirements in the administrative manual.
2.
Providing the inclusionary units on-site and/or through land dedication would result in an unreasonable and unavoidable economic hardship. In evaluating this finding, the City Council should evaluate whether there are feasible financial, design, and/or development methodologies that would mitigate or avoid the unreasonable economic hardship of providing inclusionary units on-site and/or through land dedication.
3.
The developer has explored and exhausted all options to reduce the cost of development and sources of funding to subsidize on-site inclusionary units, such as participating in such programs like: (a) low income housing tax credits; (b) below market rate financing from governmental affordable housing programs; (c) tax-exempt bond financing; and (d) any other available government programs.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.050 Procedures and regulations.
A.
In accordance with the standards and procedures set forth herein and in the administrative manual, developer shall:
1.
Submit an inclusionary housing plan for approval by the Director, setting forth in detail the manner in which the provisions of this chapter will be implemented for the proposed housing development project. If land dedication or off-site units are proposed, the inclusionary housing plan shall include information necessary to evaluate the site, location, suitability for inclusionary housing, potential development constraints, and the number of inclusionary units assigned pursuant to the administrative manual.
2.
Execute and cause to be recorded an inclusionary housing agreement, unless developer is complying with this chapter solely through in lieu fees pursuant to Section 16.036.040.A.
3.
If the housing development project consists of for-sale units, as a condition of the sale of each inclusionary unit, require that the purchaser to enter into an equity sharing agreement with the City and execute a second deed of trust in favor of the City securing the equity sharing agreement against the inclusionary unit. The equity sharing agreement and second deed of trust shall be in a form and include terms that are in accordance with the requirements of the administrative manual, as they may be amended from time to time.
B.
No discretionary or ministerial approval shall be issued for all or any portion of a housing development project subject to this chapter until the developer has submitted an inclusionary housing plan.
C.
No building permit shall be issued for all or any portion of a housing development project subject to this chapter until the Director has approved the inclusionary housing plan, and the inclusionary housing agreement, if required, is recorded.
D.
No certificate of occupancy shall be issued for all or any portion of a housing development project subject to this chapter unless the housing development project is in full compliance with the approved inclusionary housing plan.
E.
The Community Development Department of the City shall establish, and may amend from time to time, regulations for the implementation of this chapter, which shall be known as the administrative manual. The administrative manual provides more detailed descriptions of the requirements imposed by this chapter. Each developer of a housing development project that is subject to this chapter will be provided with a copy of the administrative manual when an inclusionary housing agreement is executed. The administrative manual is modified from time to time. Pertinent modifications to the administrative manual will be applied prospectively to existing project.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.060 Standards.
A.
Inclusionary units shall be reasonably dispersed throughout the housing development project; shall be proportional, in number of bedrooms, to the unrestricted units. If the housing development project offers a variety of unit plans with respect to design, materials, and optional interior amenities, the inclusionary units shall be identical to the housing development project's base-plan in terms of design, appearance, materials, finished quality, and interior amenities. If multiple floor plans with the same number of bedrooms are proposed, the inclusionary units may be the units with the smaller floor plans. The inclusionary units may have non-garage parking or garages smaller than the unrestricted units so long as the inclusionary unit otherwise conforms with the standards set forth herein and in the administrative manual.
B.
All inclusionary units in a housing development project shall be constructed concurrently with or prior to the construction of the unrestricted units. In the event the City approves a phased project, the inclusionary units required by this chapter shall be constructed and occupied in proportion to the number of units in each phase of the housing development project.
C.
Inclusionary units shall be rented or sold to low and moderate income households at the ratios established pursuant to the administrative manual, and shall be provided at the applicable affordable housing cost. An inclusionary unit that is for rent shall remain reserved for the target income level group at the applicable affordable housing cost in perpetuity, as secured by recorded covenants.
D.
The number of bedrooms in inclusionary units must be the same as the number of bedrooms in the unrestricted units, except that if the unrestricted units provide more than four bedrooms, the inclusionary units need not provide more than four bedrooms.
E.
The equity share agreement for any inclusionary units that are for-sale shall be in a form approved by the Director and City Attorney in conformance with this chapter and the administrative manual prepared in accordance herewith. The equity share agreement shall include the following terms:
1.
Upon resale of an inclusionary unit between the date of the initial sale and the 10 year anniversary of the initial sale, the seller must repay to the City an amount equal to the sum of: (a) the City principal from the inclusionary unit; plus (b) 100% of the City share of appreciation.
2.
Upon resale of an inclusionary unit between the date of the 10 year anniversary of the initial sale and the 15 year anniversary of the initial sale, the seller must repay to the City an amount equal to the sum of: (a) the City principal from the inclusionary unit; plus (b) 80% of the City share of appreciation.
3.
Upon resale of an inclusionary unit between the date of the 15 year anniversary of the initial sale and the 20 year anniversary of the initial sale, the seller must repay to the City an amount equal to the sum of: (a) the City principal from the inclusionary unit; plus (b) 60% of the City share of appreciation.
4.
Upon resale of an inclusionary unit between the date of the 20 year anniversary of the initial sale and the 25 year anniversary of the initial sale, the seller must repay to the City an amount equal to the sum of: (a) the City principal from the inclusionary unit; plus (b) 40% of the City share of appreciation.
5.
Upon resale of an inclusionary unit between the date of the 25 year anniversary of the initial sale and the 30 year anniversary of the initial sale, the seller must repay to the City an amount equal to the sum of: (a) the City principal from the inclusionary unit; plus (b) 20% of the City share of appreciation.
6.
Upon resale of an inclusionary unit after the 30 year anniversary of the initial sale, the seller must repay to the City an amount equal to the City principal.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.070 Enforcement.
A.
The provisions of this chapter shall apply to all developers and their agents, successors and assigns proposing, building, selling, renting, and/or occupying a housing development project. All inclusionary units shall be rented or sold in accordance with this chapter and the administrative manual. It shall be a misdemeanor to violate any provision of this chapter. Without limiting the generality of the foregoing, it shall also be a misdemeanor for any person to sell or rent to another person an inclusionary unit under this chapter at a price exceeding the maximum allowed under this chapter or to rent or sell an inclusionary unit to a household not qualified under this chapter, provided that such restriction shall not prohibit a household that purchased an inclusionary unit in accordance with this chapter and the administrative manual from selling its unit in accordance with the terms of the equity share agreement. It shall further be a misdemeanor for any person to provide false or materially incomplete information to the City or to a seller or lessor of an inclusionary unit to obtain occupancy of housing for which he or she is not eligible.
B.
Any individual who sells or rents an inclusionary unit in violation of the provisions of this chapter shall be required to forfeit all monetary amounts so obtained. Recovered funds shall be deposited into the inclusionary housing fund.
C.
The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this chapter, including but not limited to: (1) actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval; (2) civil actions for injunctive relief or damages; (3) actions to recover from any violator of this chapter civil fines, restitution to prevent unjust enrichment, and/or enforcement costs; and (4) any other action, civil or criminal, authorized by law or by any regulatory document, restriction, or agreement under this chapter.
D.
In any action to enforce this chapter or an inclusionary housing agreement recorded hereunder, the City shall be entitled to recover its reasonable attorney's fees and costs.
E.
Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any person, owner, developer or household from the requirements of this chapter.
F.
The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it would otherwise be entitled under law or equity.
(08-05; 13-03; 18-10; 21-04)
§ 16.036.080 General provisions.
A.
Inclusionary Housing Fund. There is hereby established a separate fund of the City, to be known as the inclusionary housing fund. All monies collected pursuant to this chapter, including Sections 16.036.040.A, 16.036.060.E, and/or 16.036.070.B, shall be deposited in the inclusionary housing fund. Additional monies from other sources may be deposited in the inclusionary housing fund. The monies deposited in the inclusionary housing fund shall be subject to the following conditions:
1.
Monies deposited into the inclusionary housing fund must be used to increase and improve the supply of housing affordable to moderate, low, and very low income households in the City. Monies may also be used to cover reasonable administrative or related expenses associated with the administration of this chapter.
2.
The inclusionary housing fund shall be administered by the Director of Community Development, or his or her designee, who may develop procedures to implement the purposes of the inclusionary housing fund consistent with the requirements of this chapter and any adopted budget of the City.
3.
Monies deposited in accordance with this section shall be used in accordance with the City's Housing Element, or subsequent plan adopted by the City Council to construct, rehabilitate, or subsidize affordable housing or assist other government entities, private organizations, or individuals to do so. Permissible uses include, but are not limited to, assistance to housing development corporations, equity participation loans, grants to renters and homeowners, pre-home ownership co-investment, pre-development loan funds, participation leases, or other public-private partnership arrangements. The inclusionary housing fund may be used for the benefit of both rental and owner-occupied housing.
B.
Administrative Fees. The City Council may by resolution establish reasonable fees and deposits for the administration of this chapter.
C.
Appeal. Within 10 calendar days after the date of any Director decision, an appeal may be filed pursuant to Chapter 16.321 of this title.
D.
Taking Determination.
1.
Commencing upon the approval or disapproval of the inclusionary housing plan by the Director pursuant to this chapter and the administrative manual, and within 10 days thereafter, a developer may request a determination that the requirements of this chapter, taken together with the inclusionary incentives, as applied to the housing development project, would legally constitute a taking of property of the housing development project without just compensation under the California or Federal Constitutions. The developer has the burden of providing economic information and other evidence necessary to establish that application of the provisions of this chapter to the housing development project would constitute a taking of the property of the proposed housing development project without just compensation. The Director shall make the determination, which may be appealed in the manner and within the time set forth in subsection C of this section, except that the City Council shall serve as the appeal body.
2.
In making the taking recommendation or determination, the decision maker shall consider each of the following:
3.
If it is determined that the application of the provisions of this chapter would be a taking, the inclusionary housing plan and the inclusionary housing agreement shall be modified to reduce the obligations in the inclusionary housing component to the extent and only to the extent necessary to avoid a taking. If it is determined no taking would occur through application of this chapter to the housing development project, the requirements of this chapter remain applicable.
(08-05; 13-03; 18-10; 21-04)