The provisions of this chapter establish standards and procedures that encourage the development of housing that is affordable to a range of households with varying income levels. The purpose of this chapter is to encourage the development and availability of affordable housing by ensuring that the addition of affordable housing units is in proportion with the overall increase in new housing units and to provide standards and procedures for the administration of the city's inclusionary housing program.

(Ord. No. 2022-14, § 3, 8-18-2022)

As used in this section, the following terms shall have the following meanings:

Affordability agreement means a legally binding, recorded, written agreement between an applicant and the city, in form and substance satisfactory to the city attorney, ensuring compliance with the requirements of this chapter.

Affordable housing cost means the maximum monthly amount allowed for an owner or renter to pay for an allocated unit in accordance with California Health and Safety Code Sections 50052.5 and 50053, adjusted for household size and income level, less the appropriate allowance for utilities.

Allocated unit or inclusionary unit means a newly constructed "for-rent" or "for-sale" dwelling unit which is: (1) provided (or caused to be provided) by an applicant under the provisions of this chapter; (2) to be made available and occupied by a very low-, low- or moderate-income household, as required under the provisions of this chapter; (3) subject to occupancy and affordable housing cost or sales price controls for a period of not less than 55 years for "for-rent" units and forty-five (45) years for "for-sale" units; (4) compatible with the design of other units in the residential housing development of which it is part in terms of exterior appearance, materials and quality finish; and (5) a similar unit type and bedroom mix to the overall residential development.

Applicant means one (1) or more person(s) or entity(ies) that applies for a residential development in the city, regardless of whether the person(s) or entity(ies) have an ownership or leasehold interest in the property on which the development is proposed.

Community care facility means a facility, place or building which is maintained and operated, subject to licensing by the California Department of Social Services, to provide nonmedical residential care, which may include home finding and other services, for children and/or adults, including: the physically handicapped; mentally impaired, mentally disordered, or incompetent; developmentally disabled; court wards and dependents; neglected or emotionally disturbed children; the addicted; the aged. Community care facility includes a continuing care and retirement community.

Development agreement means an agreement entered into between the city and a developer pursuant to California Government Code Section 65864 et seq.

Development standard means a site or construction condition, including, but not limited to, height limits, required setbacks, maximum floor area ratio, onsite open-space requirement, or required parking that applies to a residential development pursuant to any ordinance, General Plan, Specific Plan, or other local law, policy, resolution, or regulation. Without limiting the foregoing, the parking requirements set forth in Title 9 shall apply to any residential development subject to this Chapter 9.267.

Director means the Community Development Director of the city of Jurupa Valley.

Health care facility means a facility, place or building other than a hospital which is maintained and operated as a residence for patients and provides long-term medical care. Health care facility includes nursing homes, intermediate care facilities, extended care facilities, hospice homes, and similar facilities, which are licensed by the California State Department of Health Services, and defined in California Health and Safety Code, Section 1200, et seq. Health care facility may include a lab, radiology, pharmacy, rehabilitation, and other similar services as accessory uses.

Housing in-lieu fee means a fee paid by an applicant as an alternative to providing an allocated unit or a fraction of an allocated unit.

Low-income household means a household whose gross income does not exceed eighty (80) percent of the area median income for the County of Riverside, adjusted for family size, as published and periodically updated by the State Department of Housing and Community Development pursuant to California Health and Safety Code Section 50079.5.

Lower income household is a general term, which refers to households whose gross income, falls under the categories of very low or low income as those terms are defined in this section.

Moderate-income household means a household whose gross income does not exceed one hundred twenty (120) percent of the area median income for the County of Riverside, adjusted for family size, as published and periodically updated by the State Department of Housing and Community Development pursuant to California Health and Safety Code Sections 50079.5 and 50052.5.

Residential development means a project containing at least one (1) residential unit, including mixed-use developments. For the purposes of this chapter, "residential development" also includes projects defined in California Government Code Section 65915(i), including a subdivision or common interest development, as defined in California Civil Code Section 4100, approved by the city and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined California Government Code Section 65863.4(d), where the result of the rehabilitation would be a net increase in available residential units.

Single room occupancy unit is a residential unit with living space with a minimum floor area of one hundred fifty (150) square feet and a maximum of four hundred (400) square feet restricted to occupancy by no more than two (2) persons. Kitchen and bathroom facilities may be wholly or partially included in each living space or may be fully shared.

Very low-income household means a household whose gross income does not exceed fifty (50) percent of the area median income for the County of Riverside, adjusted for family size, as published and periodically updated by the State Department of Housing and Community Development pursuant to California Health and Safety Code Section 50105.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

This section shall apply to all residential developments, as defined herein, where the lots or units will be offered for sale or for rent.

B.

Notwithstanding subsection A., inclusionary units shall not be required for:

(1)

Projects that are not a residential development.

(2)

Any project for which the city enters into a development agreement pursuant to California Government Code Section 65964 that provides inclusionary housing obligations comparable to this chapter and alternative community benefits or for any project that is otherwise exempt under state law.

(3)

Construction of units under an agreement with the city that restricts occupancy to lower- or moderate-income households at an affordable housing for a period of not less than fifty-five (55) years (or forty-five (45) years for ownership units).

(4)

Construction of homeless shelters, community care facilities, health care facilities, and single room occupancy units.

(5)

Construction of a dwelling unit to replace a previously existing dwelling unit on the same lot that was demolished or destroyed within the last five (5) years.

(6)

Construction of accessory dwelling units as defined by California Government Code Section 65852.2(j).

(7)

Home remodels and additions.

(8)

Density bonus units.

(9)

Units constructed pursuant to Government Code Sections 65852.21 and 66411.7 ("SB 9") as the city's SB 9 ordinance requires that one (1) of the units have an affordability covenant recorded against it. Should the city's urgency ordinance expire without a permanent ordinance being adopted that contains an affordability requirement, then SB 9 projects would be subject to the inclusionary housing requirement. Under this scenario, if a single-family lot is split to construct two (2) homes, as is now permitted by SB 9, all the units constructed would be included under the inclusionary in-lieu fee. If one (1) side of the split lot already contains a home, it would be exempt, even if a new dwelling unit was constructed to replace it.

(10)

A residential project that was approved by the city before September 17, 2022. Notwithstanding the foregoing, this chapter shall apply to any residential project that applies to modify its project after it has been approved by the city, and the modification increases the density of the project. In that scenario, this chapter shall only apply to the additional units created by the modification.

(11)

Mobile homes.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

All residential or mixed-use development projects shall rent or sell seven (7) percent of the units at an affordable housing cost, as follows:

(1)

The first inclusionary unit shall be rented or sold at an affordable housing cost to a moderate-income household;

(2)

The second inclusionary unit shall be rented or sold to a low-income household;

(3)

The third and fourth inclusionary unit shall be rented or sold to a very low-income household; and

(4)

All subsequent inclusionary units would follow the same distribution as above such that twenty-five (25) percent of inclusionary units shall be affordable to moderate-income households, twenty-five (25) percent to low-income households, and fifty (50) percent to very low-income households.

B.

Fractional units that may result from the application of these requirements will be addressed as follows:

(1)

For a fractional unit requirement of less than 0.5, the applicant will pay a fractional housing in-lieu fee.

(2)

For a fractional unit requirement of 0.5 and above, the fraction will be rounded up to the next larger integer and treated as a whole unit.

C.

If a proposed residential development project would result in the elimination of existing deed restricted affordable housing units, the affordable units must be replaced on a one-for-one basis with equally affordable deed restricted units with a new affordability agreement recorded that results in resetting and making consistent the duration of affordability consistent with the requirements of this section.

D.

An applicant proposing to provide on-site allocated units consistent with the inclusionary requirements of this section, shall be eligible to receive one (1) or more incentives or concessions, pursuant to state density bonus law, or other benefits as negotiated with the city.

(Ord. No. 2022-14, § 3, 8-18-2022)

An applicant proposing allocated units consistent with this Chapter 9.267 which also applies for a density bonus consistent with state law, may count units affordable to lower or moderate-income households toward both requirements. Additional units allowed by the density bonus shall not be included in the total project units when determining the proportion of required allocated units in a residential development.

(Ord. No. 2022-14, § 3, 8-18-2022)

Developing all of the required inclusionary units within the residential development, as required under Section 9.267.040, is preferred. However, as an alternative, the requirements of Section 9.267.040 may be satisfied as follows:

(1)

The developer may propose to satisfy the inclusionary housing unit requirements of Sections 9.267.040. through payment of an in-lieu fee. The amount of the in-lieu fee shall be calculated using the fee schedule established by resolution of the City Council.

(2)

In accordance with this paragraph, the developer may propose to satisfy the inclusionary housing unit requirements of Section 9.267.040 by providing some of the required inclusionary units on-site and paying an in-lieu fee for any required inclusionary units that are not included in the project. The amount of the in-lieu shall be calculated by using the fee schedule established by resolution of the City Council.

(3)

The full in-lieu fee shall be paid to the city prior to the issuance of the first building permit for the residential development project.

(Ord. No. 2022-14, § 3, 8-18-2022)

Alternatives to provision of on-site allocated units or payment of the housing in-lieu fee include provision of allocated units off-site, directly by applicant or through an agreement with a third party, dedication or conveyance of land, conversion of market rate units to affordable, preservation of at-risk housing, use of inclusionary credits, or other innovative approaches. All alternative compliance measures must produce at least the same number and affordability of units that would have been provided on-site, and are subject to review and approval by the city Manager, with the option of review and approval by the City Council.

(1)

Allocated units provided off-site. An applicant may provide (or may cause a third party to provide) allocated units off- site ("off-site units").

(a)

Allocated units provided off-site must be located in the same general area of the city as the unallocated units of the development as determined by the Director of Community Development, unless the Director of Community Development makes a determination that locating the off-site units in a different area of the city would better serve the General Plan housing goals of the city.

(b)

As part of the application submittal materials, if the applicant itself will provide the allocated units off-site, the applicant shall submit evidence that the applicant owns, leases (pursuant to an executed ground lease of at least fifty-five (55) years from the date offsite units would be produced), or has an irrevocable option to purchase, the site where the off-site allocated units are proposed to be located; alternatively, if applicant enters into an agreement with a third party to provide the allocated units off-site, then the applicant shall cause such third party to submit evidence that the third party owns, or has an irrevocable option to purchase, the site where the off-site allocated units are proposed to be located.

(c)

The city shall not issue a building permit for the residential development project until the allocated units off-site, whether they are to be constructed by the applicant or third party, are under construction. Any agreement entered into by the applicant and a third party to construct allocated units off-site is subject to review and approval by the city and must contain a clause that allows the city to enforce the rights in the agreement.

(2)

Land dedication or conveyance alternative. An applicant may offer to dedicate or convey land to the city, situated on-site or off-site.

(a)

Land offered under this section must be within the city's boundaries.

(b)

The applicant shall provide an analysis, which demonstrates that the land offered is free from environmental contamination.

(c)

The applicant shall also submit evidence that the applicant owns, or has an irrevocable option to purchase, the site proposed for dedication or conveyance.

(d)

Land shall be identified and offered for dedication or conveyance at the time of development application submittal. If the offer is accepted by the City Council, the land must be donated to the city no later than the date of approval of the final subdivision map, parcel map or housing development application, and must have all the permits and approvals, other than building permits, necessary for development with the required number of affordable units.

(e)

The City Manager shall recommend to the City Council whether the dedication should be accepted.

(3)

Conversion of market rate units to affordable. An applicant may propose to convert existing market rate units within the city to affordable units in an amount equal to or greater than the required on-site inclusionary housing requirement, including any needed rehabilitation to ensure compliance with building, health and safety standards.

(4)

Preservation of at-risk housing. An applicant may offer to purchase long term affordability covenants on an existing deed restricted affordable housing project at imminent risk of contract termination and conversion to market rate housing. The number of units preserved shall be equal to or greater than the required on-site inclusionary housing requirement.

(5)

Affordability level credit. The developer can construct fewer than the allocated units, if the units will be at a deeper affordability level.

(6)

Innovation encouraged. Innovative alternatives to providing affordable housing not outlined in this chapter shall be evaluated by staff and considered on a case-by-case basis. Substitute programs shall be permitted provided, at the recommendation of staff and determination of the City Council, that the objectives of the inclusionary housing ordinance are being met with the alternate proposal.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

The applicant shall comply with the following requirements at the times and in compliance with the standards and procedures in the city's regulations for the implementation of this chapter.

(1)

Inclusionary housing plan. An applicant shall submit an inclusionary housing plan, in a form specified by the Director, detailing how the provisions of this chapter will be implemented for the proposed project. All inclusionary housing plans shall be subject to the approval of the Director with the option of review and approval by the City Council.

(2)

Affordability agreement. An applicant shall execute and cause to be recorded an affordability agreement. The affordability agreement shall be a legally binding, recorded agreement between the applicant and the city, in a form and substance satisfactory to the director and the city attorney, and containing those provisions necessary to ensure that the requirements of this chapter are satisfied, whether through the provision of inclusionary units or through an approved alternative method. Once the residential development including allocated units has received its final discretionary approval, the applicant shall file an application, including payment of any processing and monitoring fees, with the Community Development Department for approval and finalization of the affordability agreement.

B.

An applicant for a project providing allocated units consistent with this chapter and affordable units consistent with the provisions of the density bonus shall enter into a single affordability agreement with the city.

C.

Discretionary approvals. No discretionary approval shall be issued for a project subject to this chapter until the applicant has submitted an inclusionary housing plan.

D.

Issuance of building permit. No building permit shall be issued for a project subject to this chapter unless the Director has approved the inclusionary housing plan, and any required affordability agreement has been recorded encumbering the project site.

E.

Issuance of certificate of occupancy. A certificate of occupancy shall not be issued for a project subject to this chapter unless the approved inclusionary housing plan has been fully implemented.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

All inclusionary units shall be:

(1)

Reasonably dispersed throughout the residential project;

(2)

Proportional, in number of bedrooms, and location, to the market rate units;

(3)

Comparable to the market rate units included in the residential project in terms of size, design, materials, finished quality, and appearance; and

(4)

Permitted the same access to project amenities and recreational facilities, as are market rate units.

B.

Timing of construction. All inclusionary units in a project shall be constructed concurrent with, or before the construction of the market rate units. If the city approves a phased project, a proportional share of the required inclusionary units shall be provided within each phase of the residential project.

C.

Accessory dwelling units shall not be counted towards meeting a project's inclusionary requirements.

D.

Units for sale.

(1)

Time limit for inclusionary restrictions. A unit for sale shall be restricted to the target income level group at the applicable affordable housing cost for a minimum of forty-five (45) years.

(2)

Certification of purchasers. The applicant and all subsequent owners of an inclusionary unit offered for sale shall certify, in form and content acceptable to the city, the income of the purchaser.

(3)

Resale price control. In order to maintain the availability of inclusionary units required by this chapter, the resale price of an owner-occupied inclusionary unit shall be limited to the lesser of the fair market value of the unit as established by a qualified appraiser selected by the Director based upon three (3) comparable properties or the restricted resale price. For these purposes, the restricted resale price shall be the greater of either the applicable affordable housing cost or an amount equal to the sum of: a) the purchase price, b) an amount equal to ten (10) percent of any increase in the applicable affordable housing cost since the previous sale of the unit, c) the adjusted amount of any capital improvements for which a building permit has been issued by the city and a certification of occupancy or similar final certification has been filed, or other improvements which adds assessed value to the unit, d) any applicable transaction fee charged by a real estate professional, and e) if the occupant has allowed the unit to deteriorate due to deferred maintenance, the restricted retail price shall be discounted in an amount equal to the costs necessary to bring the unit into conformity with the city Municipal Code.

(4)

Disclosure of affordability restrictions. Prior to the close of escrow, the seller of an inclusionary unit shall provide special written notice to the buyer of an inclusionary unit of the affordability restrictions on the inclusionary unit, including but not limited to, the resale price controls, in a document written in plain language and approved in writing by the Director.

(5)

Inheritance of inclusionary units. Upon the death of an owner of an owner-occupied inclusionary unit, title in the property may transfer to the surviving joint tenant without respect to the income-eligibility of the household. Upon the death of a sole owner or of all owners of an inclusionary unit and the inheritance of the property by one (1) or more non-income eligible children or stepchildren of the deceased, the property shall be sold to an income eligible household within one (1) year of the time when the deceased's estate is settled. Inheritance of an inclusionary unit by any other non-income eligible person or persons shall require the sale of the property to an income eligible person as soon as is feasible, but not more than one hundred eighty (180) days after the deceased's estate is settled.

(6)

Forfeiture. If an inclusionary unit for sale is sold for an amount in excess of the resale price controls required by this section, the buyer and the seller shall be jointly and severally liable to the city for the entire purchase price of the unit. Recovered funds shall be deposited into the affordable housing trust funds. Notwithstanding the foregoing, upon written request for time to cure any violation given to the city by the buyer and seller, it shall be within the discretion of the city manager to allow the buyer and seller one hundred eighty (180) days to cure any violation of the resale price controls.

E.

Rental units.

(1)

Time limit for inclusionary restrictions. A rental unit shall remain restricted to the target income level group at the applicable affordable housing cost for fifty-five (55) years.

(2)

Certification of renters. The owner of any rental inclusionary units shall certify to the director, on a form provided by the city, the income of the tenant at the time of the initial rental and annually thereafter.

(3)

Forfeiture. Any lessor who leases an inclusionary unit in violation of this chapter shall be required to forfeit to the city all money so obtained. Recovered funds shall be deposited into the affordable housing trust fund.

(4)

The Director may require the execution and recording of whatever documents are necessary or helpful to ensure enforcement of this section; including but not limited to: promissory notes, deeds of trust, resale restrictions, rights of first refusal, options to purchase, and/or other documents, which shall be recorded against all inclusionary units.

(5)

Prior to the close of escrow of the sale of an inclusionary unit, the seller of an inclusionary unit shall provide special written notice to the buyer of an inclusionary unit of the affordability restrictions on the inclusionary unit, including but not limited to, the resale price controls, in a document written in plain language and approved in writing by the Director.

F.

General prohibitions.

(1)

No person shall sell or rent an inclusionary unit at a price or rent in excess of the applicable affordable housing cost placed on the unit in accordance with this chapter.

(2)

No person shall sell or rent an inclusionary unit to a person or persons that do not meet the income restrictions placed on the unit in accordance with this chapter.

(3)

No person shall 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 that person is not eligible.

G.

Principal residency requirement.

(1)

The owner or lessee of an inclusionary unit shall reside in the unit as such person's principal residence for at least ten (10) out of every twelve (12) consecutive months unless actively serving in the United States military. Notwithstanding this requirement, an owner or lessee may live elsewhere for a period up to six (6) months every five (5) years on account of hardships, including, but not limited to, medical reasons, the need to assist family member in crisis or medical need, and relocation for employment purposes, subject to verification by the Director.

(2)

No owner or lessee of an inclusionary unit shall lease or sublease, as applicable, an inclusionary unit without the prior permission of the director.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

The City Council may adopt administrative guidelines to assist in implementing and administering this section.

B.

Any violation of this chapter constitutes a misdemeanor and may be subject to the penalties and remedial procedures set forth in Chapters 1.15, 1.16, 1.20 and 1.25 of this Code.

C.

The provisions of this section shall apply to all owners, developers, their agents, successors, and assigns that propose a residential development, occupy an inclusionary unit, or both. All inclusionary units shall be sold or rented in accordance with this section and any regulations and administrative guidelines adopted pursuant to this section.

D.

Any individual who sells or rents an inclusionary unit in violation of the provisions of this section, the guidelines, or the inclusionary housing agreement shall be required to forfeit to the city all monetary amounts obtained in violation of those provisions. Recovered funds shall be deposited into the inclusionary housing trust fund.

E.

The City Attorney may institute any appropriate legal actions or proceedings necessary to ensure compliance with this section, including, but not limited to:

(1)

Actions to revoke, deny, or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval; and

(2)

Actions for injunctive relief or damages.

F.

In any action to enforce this section or an inclusionary housing agreement recorded hereunder, the prevailing party shall be entitled to recover its reasonable attorneys' fees and costs.

(Ord. No. 2022-14, § 3, 8-18-2022)

An applicant may request a waiver or reduction in the requirements of this Chapter 9.267, provided that the applicant provides evidence of economic hardship, such as inability to achieve a reasonable commercial profit, which must be verified by an independent third-party review at the applicant's sole cost. Such review would include a comparison of the applicant's projected costs and rental/sale revenue assumptions with current market standards, including a market rate of return on cost. The waiver or reduction request may be processed by the City Council.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

The City Council, by resolution, may from time to time adopt procedures, policies, rules and requirements, including the adoption of processing and administrative fees, to implement, administer, and/or enforce the provisions of this chapter.

B.

The Director or designee is authorized to determine the number of dwelling units contained within a particular residential development, if a determination is needed to resolve a disagreement. When a question arises regarding the meaning, or requires an interpretation of any provision of this chapter to any specific circumstances or situation, the Director is authorized to render a decision thereon in writing.

C.

The city shall keep on file and available for public review a copy of the current income schedules and utility allowances.

(Ord. No. 2022-14, § 3, 8-18-2022)

A.

Within three (3) years from August 18, 2022, the Community Development Department shall prepare a report on the effectiveness of the inclusionary housing ordinance, which shall include the following:

(1)

By income category, the total number of on-site inclusionary units issued building permits during the time period covered by the report.

(2)

By income category, the total number of off-site inclusionary units issued building permits during the time period covered by the report.

(3)

By income category, the total number of inclusionary units converted from market rate during the time period covered by the report.

(4)

By income category, the total number of affordable units preserved as an alternative to fulfill an inclusionary requirement during the time period covered by the report.

(5)

By income category, the total number of additional inclusionary units issued building permits during the time period covered by the report, as well as those issued building permits in the preceding nine (9) years.

(6)

The amount of any housing in-lieu fees collected.

(7)

Any recommendations with regard to changes or revisions to the adopted program to improve its effectiveness and/or administration.

B.

After the initial review, the inclusionary housing program shall be reviewed in connection with the preparation of the updated housing element.

(Ord. No. 2022-14, § 3, 8-18-2022)

Housing in-lieu fees collected by the city pursuant to this chapter shall be deposited into an affordable housing trust fund maintained by the city for use in the site acquisition, development, rehabilitation, program administration, or preservation of affordable housing, either directly by the city or in partnership with a third-party affordable housing developer.

(Ord. No. 2022-14, § 3, 8-18-2022)

The council may by resolution establish reasonable fees and deposits for the administration of this chapter.

(Ord. No. 2022-14, § 3, 8-18-2022)