It is a policy of the city that all private developers of housing of twenty or more units, including division of property for residential purposes, shall contribute to the city’s housing goal by constructing housing for very low income and low income households, as specified in this chapter.

It is a policy of the city that very low income and low income housing developed under this chapter shall remain affordable to very low income and low income households or shall be replaced with an equal number of similar very low income and low income housing units.

It is a policy of the city to promote voluntary private efforts to develop very low income and low income housing by offering public incentives for this production.

Inclusionary Housing Requirement. Developers of twenty or more housing units shall provide at least two and one-half percent of the total number of housing units for very low income households and five percent for low income households. All numbers shall be rounded up.

Alternatively, the city council may approve payment of an in lieu fee when the developer can demonstrate that inclusion of the required affordable housing units will create a hardship for development of the project and/or when the city has determined the funding may be better used to accomplish its affordable housing goals on other projects. The in lieu fee shall be calculated in accordance with Section 17.19.050 of this chapter.

Housing Program. To meet this requirement, a deed restriction, to ensure income and rental restrictions for housing units are maintained for very low income and/or low income households, shall be applied to the property or other alternative similar device approved by the city council.

Costs. The program shall identify the cost of the units, using the following formulas:

Time Period. Income and rental restrictions shall remain in place and run with the land for fifty-five years. In meeting this requirement, the developer may use such devices as deed restrictions, wrap-around financing, land sales contracts, and other similar devices which will ensure the perpetuation of the very low income and/or low income housing requirements. These devices are identified as guidelines only, with the developer free to meet the goals of this chapter by any other similar guarantee methods, as long as the alternate method(s) are approved by the city.

Verification. All program housing units in a project shall be sold or rented to very low income and/or low income households who are certified by the city.

Construction Timing. All very low income and low income household units in a project and in phases of a project shall be constructed concurrently with or prior to the corresponding non-affordable housing units.

Amenities. Very low income and low income household units need not have the same level of amenities or market value as the non-affordable housing units of the project.

Preference. To the extent permissible, preference shall be given for affordable housing units to persons who live or work within the city. This facet of the project will be administered by the city or a designated agent. The developer shall not discriminate in sales or rental on the basis of race, creed, national origin, color, sex or age.

The amount of the fee shall be calculated using the fee schedule established by resolution of the city council.

The fees collected shall be deposited in the inclusionary housing trust fund.

All fees shall be paid to the city prior to the issuance of any building permit(s) to the developer.

Within ten calendar days from the date of the determination and/or calculation, an aggrieved party may appeal such action by filing with the city clerk a written appeal setting forth the grounds for reversing the decision or calculation. The time requirement for filing an appeal shall be deemed jurisdictional and may not be waived. Appeals not timely filed or not setting forth the basis for the appeal are defective and shall be dismissed.

Upon receipt of such written appeal, the city clerk shall set the matter for a hearing before the city manager or his or her designee. The hearing shall be conducted pursuant to the procedures set forth within King City Municipal Code Section 7.51.604 and shall be set for hearing in a reasonable time after the date of filing the appeal with the city clerk, but in no event later than ninety days from the date of such filing. At least ten days prior to the date of the hearing on the appeal, the city shall notify the appellant of the time and the place of the hearing. Notice may be provided by either personal service or U.S. mail. Notice is presumed to be served upon deposit into the U.S. mail. At such hearing, the city and the appellant may present any information they deem relevant to the decision and/or calculation appealed, provided the information complies with the requirements of Section 7.51.604 of the King City Municipal Code. The formal rules of evidence and procedure applicable in a court of law shall not apply to such hearing.

At the conclusion of the hearing, the city manager or designee shall deliberate and reach a decision within fifteen calendar days. The decision and the reason(s) for the decision shall be reduced to writing. The city manager may affirm, reverse, or modify the decision and/or calculation at issue, subject to the following limitations:

The decision of the city manager shall be final with no further administrative appeals. Unless the governing ordinance or statute provides otherwise, if the appellant seeks further relief, the appellant shall file a petition for writ of mandate in superior court pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6 within ninety calendar days of the date of the decision.