The purpose of this Chapter is to implement specified provisions of State law pertaining to local regulation of housing development projects, including, but not limited to, the State Density Bonus Law, Government Code Sections 65915 et seq., the Housing Accountability Act, Government Code Section 65589.5, the Housing Crisis Act of 2019, Government Code Section 66300 et seq., the No Net Loss Law, Government Code Section 65863, and the Housing Element Law, Government Code Sections 65580 et seq.

(Ord. No. 24-06, § 4, 9-11-2024)

(a)

Compliance with State law. Notwithstanding the provisions of Chapter 9.08, all proposed housing development projects shall be reviewed in accordance with requirements and limitations imposed by State law, including, but not limited to, Government Code Sections 65589.5, 65915—65918, 65583, 65584, 65863, 65905.5, 65912.100—65912.105, 65852.24, 65852.28, 65913—65913.16, 65914.7, 65940—65945.3, 65650—65656, 65660—65688, 66300—66301, and 66499.41. Except to the extent otherwise provided by State law, such review shall ensure that proposed housing development projects comply with State law and all applicable, objective standards, provisions, conditions and requirements of the General Plan, this Chapter, and other applicable ordinances and policies of the City.

(b)

Delegation of authority to Development Services Director.

(1)

The Development Services Director may prepare fillable application forms for such purposes and may prescribe the type of information to be provided in the application by the applicant for a housing development project. No application shall be accepted unless it is completed as prescribed. All such applications shall require fees to be paid in accordance with a resolution adopted by the City Council.

(2)

The Development Services Director is authorized to review and determine whether an application for a housing development project is consistent and complies with applicable, objective General Plan, zoning, and subdivision standards and criteria within the time period(s) prescribed by law, including, but not limited to, subdivision (j)(2) of Government Code Section 65589.5.

(3)

The Development Services Director is authorized to promulgate, modify, and enforce standard conditions and requirements that apply to approved housing development projects, which implement applicable State, City, and other local agency standards, provisions, and conditions, provided such standard conditions and requirements are consistent with the provisions of this Code and State law.

(4)

The Development Services Director is authorized to review and approve or disapprove applications for all housing development projects requiring ministerial review pursuant to State law or any provision of this Title. Housing development projects subject to ministerial review by the Development Services Director include, but are not limited to, (i) multi-family housing development projects located within the workforce housing overlay (WHO) district or mixed-use (MU) district, in which at least 20 percent of the housing units are affordable to lower-income households; (ii) housing development projects that satisfy the criteria set forth in Government Code Sections 65650 et seq., 65660 et seq., 65852.21 and/or 66411.7, 65852.28 and/or 66499.41, 65912.110 et seq., 65912.120 et seq., 65913.4, or 65913.16 or in Health and Safety Code Section 17021.8; and (iii) any other type of housing development project designated as a "use by right" as defined in Government Code Section 65583.2 or otherwise required by State law to be reviewed ministerially. Except to the extent otherwise provided by State law, housing development projects seeking variances, exceptions, waivers, or modifications to applicable development standards shall not be eligible for ministerial review, and the Development Services Director shall not ministerially approve a proposed housing development project unless it complies with all applicable, objective standards, provisions, conditions and requirements of the General Plan, Title 9 of this Code, and other applicable ordinances and policies of the City. Pursuant to Section 9.08.100, decisions of the Development Services Director may be appealed to the Planning Commission. Except as otherwise provided by State law, a ministerial approval pursuant to this Subsection shall remain valid for two years from the date of the final action establishing that approval and shall continue remain valid thereafter provided demolition and grading activity on the development site has begun pursuant to a permit issued by the City and is in progress.

(c)

Discretionary review of housing development projects. The provisions of this Subsection shall apply to the consideration of applications for site development permits, conditional use permits, tentative maps, or other quasi-judicial approvals required for the construction or operation of a housing development project, as defined in subdivision (h)(2) of Government Code Section 65589.5, which is not subject to ministerial review by the Development Services Director. In the event of a conflict between the provisions of this Subsection and any other provision of Title 9, the provisions of this Subsection shall apply.

(1)

Hearings. Government Code Section 65905.5 limits the number of hearings the City may conduct in connection with consideration of an application for a housing development project. Therefore, for so long as Government Code Section 65905.5 so provides and remains in effect, no more than five hearings or continued hearings shall be conducted in connection with consideration of an application for a housing development project, unless otherwise agreed to by the applicant or the applicant's designated representative. A meeting at which a hearing is continued to another date without public testimony or substantial discussion of the project occurring shall not count as one of the five allowed hearings. The final decision-making authority shall consider and either approve, conditionally approve, or disapprove the application at one of the five hearings allowed pursuant to Government Code section 65905.5; provided, however, that, unless otherwise provided by law, the application shall not automatically be deemed approved if the final decision-making authority does not act on the application at one of the five allowed hearings.

(2)

Required findings. Except as otherwise permitted or required by State law, the final decision-making authority shall approve or conditionally approve an application for a site development permit, conditional use permit, tentative map, or other quasi-judicial approval for a housing development project unless it makes written findings for disapproval in accordance with Government Code Section 65589.5. If applicable, the final decision-maker shall also make net loss findings pursuant to Section 9.14.030. The findings set forth in Chapter 9.08 are not required to be made as a prerequisite to approval of a site development permit or conditional use permit for a housing development project.

(3)

Conditions of approval. The final decision-making authority may impose reasonable conditions of approval that are necessary to ensure that a proposed housing development project complies with all local, State and federal laws, and that impacts resulting from the development are adequately mitigated, subject to the limitations set forth in subdivisions (d) and (j) of Government Code Section 65589.5.

(4)

Environmental review. Except as otherwise provided by law, a discretionary permit or approval for a housing development project shall not be approved until all applicable provisions of the California Environmental Quality Act (CEQA) have been complied with.

(Ord. No. 24-06, § 4, 9-11-2024)

(a)

Purpose. The purpose of this section is to implement the No Net Loss Law and the "no net loss" provisions of the Housing Crisis Act.

(b)

Definitions. The following definitions shall apply for purposes of this Section:

Housing Crisis Act means and refers to the provisions set forth in Chapter 12 of Division 1 of Title 7 of the Government Code, commencing with Section 66300, as such provisions may be amended from time to time.

Housing Element parcel means and refers to any parcel of land identified in the City's General Plan Housing Element Sites Inventory described in subdivision (a)(3) of Government Code Section 65583, or in a Housing Element program to make sites available pursuant to subdivision (c)(1) of Government Code Section 65583, for residential development to meet the City's share of regional housing need allocated pursuant to Government Code Section 65584.

Lower residential density has the same meaning as defined in the No Net Loss Law. Except as otherwise provided in the No Net Loss Law, lower residential density means fewer residential units in any income category than were (a) projected in the Housing Element Sites Inventory to be accommodated on a Housing Element site or (b) projected in a Housing Element program to be developed on a Housing Element site.

No Net Loss Law means and refers to the provisions of Government Code Section 65863, as such provisions may be amended from time to time.

(c)

No Net Loss provisions applicable to all parcels where housing is an allowable use. With respect to land where housing is an allowable use, the Housing Crisis Act limits the City's authority to change the General Plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or to reduce the intensity of land use within an existing General Plan land use designation, specific plan land use designation, or zoning district. Therefore, notwithstanding Sections 9.08.060 or 9.08.070, for so long as the Housing Crisis Act continues to so limit the City's authority, the City shall not be obligated to accept or process an application for a General Plan amendment, zoning map amendment, or zoning text amendment affecting a parcel on which housing is an allowable use if said application requests to change the General Plan land use designation, specific plan land use designation, or zoning applicable to the parcel in a manner that would reduce the parcel's residential development capacity.

(d)

No Net Loss Law provisions applicable to Housing Element parcels.

(1)

Reductions of allowable residential density. Except as otherwise authorized pursuant to the No Net Loss Law, in addition to any other findings required pursuant to Sections 9.08.060, 9.08.070, 9.08.080, 9.08.190, and/or any other applicable provision of this Title, prior to or concurrent with approving any General Plan amendment, specific plan amendment, zoning ordinance, or any other action to reduce, or require or permit the reduction of, the allowable residential density for any Housing Element parcel, the City Council shall make written findings supported by substantial evidence of both of the following:

a.

The reduction of residential density is consistent with the adopted General Plan, including the Housing Element.

b.

The remaining sites identified in the Housing Element are adequate to meet the requirements of Government Code Section 65583.2 and to accommodate the City's share of the regional housing need pursuant to Government Code Section 65584. This finding shall include a quantification of the remaining unmet need for the City's share of the regional housing need at each income level and the remaining capacity of sites identified in the Housing Element to accommodate that need by income level.

(2)

Approval of development of a parcel at a lower residential density.

a.

Prior to or concurrent with approving an application allowing development of a Housing Element parcel at a lower residential density, the final decision-making authority shall make a written finding supported by substantial evidence as to whether the remaining sites identified in the Housing Element are adequate to meet the requirements of Government Code Section 65583.2 and to accommodate the City's share of the regional housing need pursuant to Government Code Section 65584. This finding shall include a quantification of the remaining unmet need for the City's share of the regional housing need at each income level and the remaining capacity of sites identified in the Housing Element to accommodate that need by income level.

b.

If the final decision-making authority approves a development project on a Housing Element parcel that results in a lower residential density and does not find that the remaining sites identified in the Housing Element are adequate to accommodate the City's share of the regional housing need by income level, the City shall within 180 days identify and make available additional adequate sites to accommodate the City's share of the regional housing need by income level in accordance with the No Net Loss Law. This subdivision shall not be interpreted to require the City to approve an application for any permit or legislative action associated with a proposed development project. However, pursuant to the No Net Loss Law, the final decision-making authority for a permit for a proposed housing development project may not disapprove that permit on the basis that its approval would require the City to identify and make available additional adequate sites to accommodate the City's share of the regional housing need.

(3)

Applicant responsibility. If an applicant for a development project or land use permit requests in its initial application, as submitted, a non-residential development or a mixed-use or residential development at a residential density that would result in the remaining sites in the Housing Element not being adequate to accommodate the City's share of the regional housing need pursuant to Government Code Section 65584, the applicant shall assist the City to comply with the No Net Loss Law as follows:

a.

The applicant shall identify and include with its application a list of additional potential candidate sites to accommodate the shortfall in the City's share of the regional housing need by income level that would result from the proposed development project, along with such evidence as is reasonably requested by the Development Services Director necessary to show that such candidate sites are adequate sites pursuant to Government Code Section 65583.2 and proof that the owner or owner(s) of each such candidate site consents to rezoning and/or identification of the site in the Housing Element. To the extent allowed by State law, sufficient additional adequate sites must be identified before the application may be deemed complete.

b.

The applicant shall fund and/or provide outreach to property owners and tenants of property within the vicinity of candidate sites as required by the Development Services Director, including, without limitation, the mailing of written notices and the advertisement and conduct of community meetings to provide information to interested community members about the identification and/or potential rezoning of the candidate sites.

c.

To the extent permitted by State law, the applicant shall reimburse the City for the actual fees and costs charged for the services of attorneys and/or other professional third-party consultants engaged by the City to provide consultation, advice, analysis, and/or review or preparation of documents in connection with the identification of candidate sites and determination of their adequacy pursuant to Government Code Section 65583.2 and/or the preparation and processing of any required General Plan and/or zoning amendments. Concurrent with submittal of an application for the proposed development project, the applicant shall execute a reimbursement agreement with the City in a form approved by the City Attorney and provide a deposit to the City in an amount sufficient to cover the estimated total professional fees and costs to be incurred by the City, as determined by the Development Services Director in his or her reasonable discretion. The City Manager is authorized to execute said reimbursement agreement on behalf of the City.

(Ord. No. 24-06, § 4, 9-11-2024)

(a)

Application. In addition to any other application required for a proposed housing development project, applications for a density bonus or bonuses, incentives or concessions, waivers or reductions of development standards, and/or reduced parking ratios pursuant to Government Code Section 65915—65918 shall be filed with the planning division. The application shall be filed concurrently with the application or applications for other required project approvals.

(b)

Processing. City staff shall process the application in the same manner as, and concurrently with, the application or applications for other required project approvals.

(c)

Documentation. The applicant shall submit reasonable documentation to establish eligibility for a requested density bonus and reduced parking ratios.

(d)

Replacement housing requirement. Pursuant to subdivision (c)(3) of Government Code Section 65915, the applicant will be ineligible for a density bonus or any other incentives or concessions unless the applicant complies with the replacement housing requirements therein, including in the following circumstances:

(1)

The housing development is proposed on any parcel(s) on which rental dwelling units are subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; or

(2)

The housing development is proposed on any parcel(s) on which rental dwelling units that were subject to a recorded covenant, ordinance, or law that restricted rents to levels affordable to persons and families of lower or very low income have been vacated or demolished in the five-year period preceding the application; or

(3)

The housing development is proposed on any parcel(s) on which the dwelling units are occupied by lower or very low-income households; or

(4)

The housing development is proposed on any parcel(s) on which the dwelling units that were occupied by lower or very low-income households have been vacated or demolished in the five-year period preceding the application.

(e)

Density bonus awarded. For a housing development qualifying pursuant to the requirements of Government Code Sections 65915 or 65915.5, the City shall grant a density bonus or bonuses in an amount specified by Government Code Sections 65915 or 65915.5, as those sections may be amended from time to time. Except as otherwise required by Government Code Section 65915, the density bonus units shall not be included when calculating the total number of housing units that qualifies the housing development for a density bonus.

(f)

Calculation. "Density bonus" means a density increase over the otherwise maximum allowable gross residential density as of the date of application, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. For the purpose of calculating the density bonus, subject to subdivision (o) of Government code Section 65915, the "maximum allowable residential density" or "base density" shall be the greatest number of units allowed to be developed on the parcel(s) under this title, an applicable specific plan, or the Land Use Element of the General Plan.

(g)

Incentives/concessions. The City shall grant the applicant the number of incentives and concessions required by Government Code Section 65915. The City shall grant the specific concession(s) or incentive(s) requested by the applicant, unless it makes any of the relevant written findings stated in Government Code Section 65915(d).

(h)

Physical constraints. Except as restricted by Government Code Section 65915, the applicant for a density bonus may submit a proposal for the waiver or reduction of development standards that have the effect of physically precluding the construction of a housing development incorporating the density bonus and any incentives or concessions granted to the applicant. A request for a waiver or reduction of development standards shall be accompanied by documentation demonstrating that the waiver or reduction is physically necessary to construct the housing development with the additional density allowed pursuant to the density bonus and incorporating any incentives or concessions required to be granted. The City shall approve a waiver or reduction of a development standard, unless it finds that:

(1)

The application of the development standard does not have the effect of physically precluding the construction of a housing development at the density allowed by the density bonus and with the incentives or concessions granted to the applicant;

(2)

The waiver or reduction of the development standard would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact;

(3)

The waiver or reduction of the development standard would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or

(4)

The waiver or reduction of the development standard would be contrary to state or federal law.

(i)

Parking. The applicant may request, and the City shall grant, a reduction in parking requirements in accordance with Government Code Section 65915(p), as that section may be amended from time to time.

(j)

Regulatory agreement. The property owner(s) shall enter into a regulatory agreement with the City pursuant to Section 9.14.050, which satisfies the criteria set forth in subdivision (c) of Government Code Section 65915.

(k)

Density Bonus Law.

(1)

Compliance. The applicant shall comply with all requirements stated in Government Code Sections 65915—65918. The requirements of Government Code Section 65915—65918, and any amendments thereto, shall prevail over any conflicting provision of this Code.

(2)

Excluded development. An applicant shall not receive a density bonus or any other incentive or concession if the housing development would be excluded under Government Code Section 65915.

(3)

Interpretation. The provisions of this subdivision shall be interpreted to implement and be consistent with the requirements of Government Code Sections 65915—65918. Any changes to Government Code Sections 65915—65918 shall be deemed to supersede and govern over any conflicting provisions contained herein.

(Ord. No. 24-06, § 4, 9-11-2024)

(a)

Purpose. The purpose of this Section is to establish minimum requirements and procedures for the preparation, execution, and recording of regulatory agreements establishing covenants to ensure the initial and continued affordability of income-restricted residential dwelling units required to be provided in conjunction with the approval of a development project pursuant a provision of this Code or State law.

(b)

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

Affordable units means residential dwelling units required to be made affordable to, and occupied by, households with incomes that do not exceed the limits specified in applicable law for middle income, moderate-income, lower income, very low income, or extremely low income households, as applicable, at an affordable rent or affordable housing cost, pursuant to State law or any provision of this Code.

Owner means the record owner or owners of the parcel or parcels on which affordable units will be located.

Regulatory agreement means an agreement or agreements entered into between the City and/or a public funding source for the project and an owner pursuant to this Section.

(c)

Requirement for regulatory agreement. Whenever an applicant for a development project offers to or is required as a condition of development pursuant to State law or any provision of this Code to construct a specified number or percentage of affordable units, the owner shall enter into a regulatory agreement with the City and/or public funding source(s) meeting the requirements of this section in the form approved by the City Attorney.

(d)

Required provisions of regulatory agreements. Unless otherwise provided by law or authorized by the City Manager, each regulatory agreement shall include provisions addressing or requiring the following:

(1)

Identification of affordable units. The number, affordability level, unit size mix, and location of the affordable units shall be set forth in the regulatory agreement. For mixed income multi-family housing development projects, the regulatory agreement shall contain provisions to ensure that the project complies with the requirements set forth in Health and Safety Code Section 17929.

(2)

Timing of construction. The regulatory agreement shall require that the affordable units be constructed concurrently with or prior to other components of the development project.

(3)

Affordability period for affordable units. The regulatory agreement shall require that the affordable units remain affordable to, and be occupied by, persons and families of the required income level at an affordable rent or affordable housing cost, as applicable, for the minimum period of time required by law. Where a minimum affordability period is not otherwise specified by statute or ordinance, the required affordability period shall be a minimum of 45 years. Determinations of affordable rents, affordable housing costs, and household income levels shall be made in accordance with the regulations published from time to time by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093.

(4)

Annual tenant income verification, compliance reporting, and certification. For projects containing affordable units that will be rented, the regulatory agreement shall include uniform provisions requiring the owner to verify and certify, prior to the initial occupancy, and annually thereafter, that each tenant household occupying each affordable unit meets the applicable income and eligibility requirements established for the affordable unit, and to annually prepare a compliance report and certify that the affordable units are in compliance with the regulatory agreement.

(5)

For-sale affordable units. For projects containing affordable units that will be offered for sale, the regulatory agreement shall include uniform provisions requiring that the initial and/or subsequent buyer(s) of each affordable unit meet the applicable income and eligibility requirements established for the affordable unit and occupy the affordable unit at all times until resale of the affordable unit to another qualified buyer. Where applicable, the regulatory agreement shall contain provisions satisfying the criteria set forth in paragraph (2) of subdivision (c) of Government Code Section 65915. The regulatory agreement shall also require the initial purchaser and, if applicable, each subsequent purchaser, of an affordable unit, to execute and/or record one or more agreements and/or restrictive covenants benefiting and enforceable by the City, which address, among other things, the purchaser's obligations pertaining to certification of income, financing or refinancing of the unit, occupancy of the unit, property maintenance, insurance, periodic certification of compliance with applicable agreement terms, and re-sale of the unit. Such agreements or restrictive covenants may include, without limitation promissory notes, deeds of trust, reimbursement agreements, option agreements, equity sharing agreements, and/or other covenants and regulatory documents necessary to ensure continued compliance with pertinent provisions of applicable law, conditions of approval, and the regulatory agreement for the required affordability period

(6)

Maintenance standards. The regulatory agreement shall contain uniform provisions governing the owner's maintenance obligations and the City's rights in the event the owner fails to adhere to its maintenance obligations.

(7)

Annual compliance report. Each regulatory agreement shall contain provisions requiring the owner to submit an annual compliance report containing specified information to the City in a form reasonably satisfactory to the City Manager and to annually certify that the affordable units are in compliance with the requirements of the regulatory agreement.

(8)

Recordkeeping requirements. The regulatory agreement shall contain uniform provisions requiring the owner to maintain affordable unit sales documents, tenant leases, income certifications, and other books, documents, and records related to the sale or rental of the affordable units and operation of the project for a period of not less than five years after creation of each such record; to allow the City to inspect any such books, documents, or records and to conduct an independent audit or inspection of such records at a location that is reasonably acceptable to the City Manager upon prior written notice; and to permit the City and its authorized agents and representatives to access the property and examine the housing units and to interview owners, occupants, tenants and employees for the purpose of verifying compliance with the regulatory agreement.

(9)

Marketing and sale of affordable units. For housing development projects containing affordable units that will be offered for sale, the regulatory agreement shall contain uniform provisions addressing (i) how eligible buyers of the affordable units will be solicited, identified, and selected; (ii) procedures for establishing the affordable sales prices of the affordable units; (iii) procedures for verifying the income and eligibility of prospective buyers of the affordable units; and (iv) a description of the responsibilities of an owner or buyer upon resale of an affordable unit.

(10)

Marketing and management plan for rental affordable units. For multi-family housing development projects containing affordable units that will be rented, the regulatory agreement shall contain uniform provisions regarding property management and management responsibilities and shall require the owner to prepare and obtain the City's approval of a marketing and management plan for the project prior to the issuance of a certificate of occupancy for any portion of the project. The marketing and management plan shall address in detail, without limitation, the following matters: (i) how the owner plans to market the affordable units to prospective tenant households; (ii) procedures for the selection of tenants of affordable units, including a description of how the owner plans to certify the eligibility of tenant households; (iii) procedures for annually verifying income and recertifying the eligibility of tenants of affordable units; (iv) the standard form(s) of rental agreement(s) the owner proposes to enter into with tenants of affordable units; (v) procedures for the collection of rent; (vi) procedures for eviction of tenants; (vii) procedures for ensuring that the required number and unit size mix of affordable units is maintained and that affordable units do not become congregated to a certain area of the building or project; (viii) procedures for complying with the owner's monitoring and recordkeeping obligations; (ix) the owner's property management duties; (x) the owner's plan to manage and maintain the project and the affordable units; (xi) the rules and regulations of the property and manner of enforcement; and (xii) and a program addressing security and crime prevention at the project.

(11)

Provisions regarding Section 8 certificates. For projects containing rental affordable units, the regulatory agreement shall include uniform provisions regarding the acceptance of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937, or its successor (i.e., "Section 8 certificates"), which shall include the following requirements and limitations:

a.

The owner shall accept as tenants persons who are recipients Section 8 certificates on the same basis as all other prospective tenants; provided, the owner shall not rent one of the affordable units to a tenant household holding a Section 8 certificate unless none of the housing units not restricted to occupancy by the affordability covenants are available. If the only available housing unit is an affordable unit, the owner shall no longer designate the housing unit rented to a tenant household holding a Section 8 certificate as an affordable unit, shall designate the next-available housing unit as an affordable unit, and shall make available, restrict occupancy to, and rent such newly designated affordable unit to a qualified tenant at the applicable affordable rent pursuant to the affordability covenants, such that at all times reasonably possible all of the required affordable units shall not be occupied by tenants holding Section 8 certificates.

b.

Furthermore, in the event the owner rents an affordable unit to a household holding a federal certificate, the rental agreement (or lease agreement, as applicable) between the owner, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the affordable rent required for the affordable unit (not fair market rent) and that the rent collected directly from such tenant holding a federal certificate shall be not more than the specified percentage of the tenant's actual gross income pursuant to the applicable federal certificate program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the affordable rent chargeable under the affordability covenant and not fair market rent for the area, as would otherwise be permitted under the applicable federal certificate program.

c.

The owner shall not apply selection criteria to Section 8 certificate holders which are more burdensome than criteria applied to any other prospective tenants.

d.

If and to the extent these restrictions conflict with the provisions of Section 8 of the United States Housing Act of 1937 or any rules or regulations promulgated thereunder, the provisions of Section 8 of the United States Housing Act of 1937 and all implementing rules and regulations thereto shall control.

(12)

Annual monitoring fee. Each regulatory agreement shall contain a provision requiring the owner to reimburse the City for the estimated reasonable costs incurred by the City in administering and monitoring the owner's compliance with the regulatory agreement, including, but not limited to, the City's review of annual compliance reports and conduct of inspections and/or audits.

(e)

Recordation. Each regulatory agreement entered into pursuant to this section shall be recorded as a covenant against the property prior to final or parcel map approval, or, where the development project does not include a subdivision map, prior to issuance of a building permit for any structure in the development project. Except as otherwise authorized by the City Manager, the regulatory agreement shall remain a senior, non-subordinate covenant and as an encumbrance running with the land for the full term thereof, and in no event shall the regulatory agreement be made junior or subordinate to any deed of trust or other documents providing financing for the construction or operation of the project, or any other lien or encumbrance whatsoever for the entire term of the required covenants.

(f)

Delegation of authority. The City Manager is authorized to approve and execute each regulatory agreement and any amendments thereto on behalf of the City. The City shall maintain authority of each regulatory agreement and the authority to implement each regulatory agreement through the City Manager. The City Manager shall have the authority to make approvals, issue interpretations, waive provisions, make and execute further agreements and/or enter into amendments of each regulatory agreement on behalf of City.

(g)

Fees. The City may charge a fee or fees to recover the City's reasonable costs to implement the provisions of this Section. Any such fees shall be adopted by resolution of the City Council.

(h)

Reimbursement of professional fees and costs. To the extent not factored into the fee or fees established pursuant to Subsection (g), in addition to such fees, the development proponent and/or owner shall reimburse the City for the actual fees and costs charged for the services of attorneys and/or other professional third-party consultants engaged by the City to provide consultation, advice, analysis, and/or review or preparation of documents in connection with preparation of the regulatory agreement and ancillary documents; establishing the affordable sales price and verifying the incomes and eligibility of prospective buyers of for-sale affordable units; review of the initial marketing and management plan and any amendments thereto; review of annual compliance reports submitted by an owner pursuant to a regulatory agreement; and inspections and audits.

(i)

Preparation of regulatory agreement; reimbursement agreement. Unless otherwise approved by the City Manager, each regulatory agreement shall be prepared by the City at the cost of the applicant and/or owner. Prior to the City commencing preparation of a regulatory agreement, the applicant and/or owner shall execute a reimbursement agreement with the City in a form approved by the City Attorney and provide a deposit to the City in an amount sufficient to cover the estimated total professional fees and costs to be incurred by the City for preparation of the regulatory agreement, as determined by the Development Services Director in his or her reasonable discretion. The City Manager is authorized to execute said reimbursement agreement on behalf of the City.

(Ord. No. 24-06, § 4, 9-11-2024)

(a)

Purpose and applicability. The purpose of this Section is to implement the provisions of the Housing Crisis Act of 2019, which require development project proponents to replace demolished residential dwelling units and protected rental units and to provide relocation assistance and other benefits to existing occupants of demolished protected rental units. This Section applies to all development projects subject to Article 2 of Chapter 12 of Division 1 of Title 7 of the Government Code.

(b)

Definitions. If defined in therein, terms used in this Section shall have the same meaning as defined in Government Code Sections 66300.5—66300.6. Unless otherwise defined in Government Code Sections 66300.5—66300.6, as used in this section, the following terms shall have the following meanings:

Affordable housing cost has the same meaning as defined in Health and Safety Code Section 50052.5.

Affordable rent has the same meaning as defined in Health and Safety Code Section 50053.

Comparable unit shall have the same meaning as the term "comparable replacement dwelling" as defined in Government Code Section 7260; provided, however, that with respect to an occupied protected unit that is a single-family home that will be demolished in conjunction with a proposed development project that consists of two or more dwelling units, a "comparable unit" need not contain more than three bedrooms or have the same or similar square footage or the same number of total rooms.

Development project has the same meaning as defined in Section 9.01.100.

Equivalent size means that the replacement protected units contain at least the same total number of bedrooms as the units being replaced.

Extremely low income households has the same meaning as defined in Health and Safety Code Section 50106.

Housing Crisis Act means and refers the provisions set forth in Article 2 of Chapter 12 of Division 1 of Title 7 of the Government Code, commencing with Section 66300.5, as such provisions may be amended from time to time.

Housing development project has the same meaning as defined in Government Code Section 65905.5.

Lower income households has the same meaning as defined in Health and Safety Code Section 50079.5. Lower income households includes very low income households and extremely low income households.

Protected unit shall have the same meaning as defined in the Housing Crisis Act and includes, but is not limited to, the following:

(1)

Existing or previously demolished residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the five-year period preceding the application submittal date; and

(2)

Existing or previously demolished residential dwelling units that are or were rented by lower or very low income households within the five-year period preceding the application submittal date.

Relocation Assistance Law shall mean Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code and its related implementing regulations.

Replace has the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Government Code Section 65915; provided, however, that for purposes of a development project that that consists of a single residential unit on a site with a single protected unit, "replace" shall mean that the protected unit is replaced with a unit of any size at any income level.

Replacement protected units means and refers to affordable residential units proposed to be developed to replace one or more protected units.

Very low income households has the same meaning as defined in Health and Safety Code Section 50105. Very low income households includes extremely low income households.

(c)

One-to-one replacement of demolished dwelling units. If, and to the extent required by the Housing Crisis Act, the final decision-making authority shall not approve a housing development project that will require the demolition of one or more residential dwelling units unless the proposed project will create at least as many residential dwelling units as will be demolished in conjunction with the project.

(d)

Replacement of protected units. If, and to the extent required by the Housing Crisis Act, the final decision-making authority shall not approve a development project that will require the demolition of one or more occupied or vacant protected units, or that is located on a site where one or more protected units were demolished in the previous five years, unless all applicable requirements, including, but not limited to the following, are complied with:

(1)

Number of total units required. If the project is a housing development project, the project shall include at least as many total dwelling units as the greatest number of permitted dwelling units that existed on the project site within the five-year period preceding the application submittal date.

(2)

Number of replacement protected units required. Unless otherwise provided in the Housing Crisis Act, the development project shall replace all existing occupied or vacant protected units that will be demolished as part of the proposed project and all protected units that were previously located on the project site and demolished on or after January 1, 2020. Any replacement protected units provided will be considered in determining whether a housing development project satisfies the requirements of Government Code Section 65915 and Section 9.14.040.

a.

Projects involving demolition of occupied protected units. If any existing protected units to be demolished are occupied on the date of application submittal, the project shall provide at least the same number of replacement dwelling units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy of the protected units. If a project site containing occupied protected units to be demolished also contains vacant protected units that will be demolished as part of the project, or previously contained protected units that were demolished within the five-year period preceding the application submittal date, the project shall also provide at least the same number of replacement protected units of equivalent size as such protected units, to be made available at an affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income of the existing or last household in occupancy of any protected units is not known, it shall be rebuttably presumed that lower income renter households occupied such protected units in the same proportion of lower income renter households to all renter households within the City of Rancho Santa Margarita, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database. All replacement protected unit calculations resulting in factional units shall be rounded up to the next whole number.

b.

Projects only involving vacated or demolished protected units. If all protected units on the project site are vacant or have been demolished within the five-year period preceding the application submittal date, the project shall provide at least the same number of replacement protected units of equivalent size as the number of protected units as existed at the highpoint of those units in the five-year period preceding the application submittal date, to be made available at an affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy of the protected units at that time, if known. If the incomes of the persons and families in occupancy of the protected units at the highpoint is not known, it shall be rebuttably presumed that low-income and very low income renter households occupied these protected units in the same proportion of low-income and very low income renter households to all renter households within the City of Rancho Santa Margarita, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database. All replacement protected unit calculations resulting in factional units shall be rounded up to the next whole number.

c.

Replacement protected unit size. A replacement protected unit must include at least the same number of bedrooms as the protected unit being replaced; provided, however, that if, and to the extent permitted pursuant to the Housing Crisis Act, a protected unit may be replaced with two or more replacement protected units of the same or a lower income category as the protected unit, provided the cumulative number of bedrooms in the replacement protected units equals or exceeds the number of bedrooms in the protected unit being replaced.

d.

Single-family projects involving a single protected unit. Notwithstanding any other provisions of this Subsection (d)(2), if a development project consists of a single residential unit on a site with a single protected unit, that protected unit may be replaced with a unit of any size at any income level.

(3)

Location of replacement protected units. If the project is a housing development project, replacement protected units shall be constructed on the same site as the demolished protected units being replaced and integrated into the development project, if feasible. Subject to approval of the final decision-making authority for the City, and to the extent permitted by the Housing Crisis Act, an applicant may develop, or contract with another entity to develop, a replacement protected unit on a different parcel in the City zoned for residential use, provided that (i) an application for development of the replacement protected units on different parcels is made concurrently with an application for all other components of the proposed development project, (ii) the other parcel is zoned for residential use and all objective General Plan, zoning, and other standards and requirements are met, and (iii) the applicant demonstrates that no residential tenants on the other parcel have been or will be displaced as a result of development of the replacement protected unit.

(4)

Timing of construction of replacement units. All replacement units shall be constructed concurrently with or prior to other components of the proposed development project.

(5)

Affordability restrictions. All replacement protected units that will be rented shall be subject to a recorded affordability restriction for at least 55 years. For-sale replacement protected units shall be subject to paragraph (2) of subdivision (c) of Government Code Section 65915.

(6)

Regulatory agreement required. The record owner(s) of the property shall enter into a regulatory agreement with City pursuant to Section 9.14.050.

(e)

Benefits to be provided to occupants of protected units. The final decision-making authority shall not approve a development project subject to the Housing Crisis Act that will require the demolition of one or more occupied protected units, unless the applicant and record owner(s) of the subject site agree to comply with the requirements set forth in this Subsection (g) and to provide any other benefits to existing occupants of protected units required pursuant to the Housing Crisis Act.

(1)

Right to remain in occupancy pending demolition. Any existing occupants of a protected unit to be demolished, regardless of their household income level, shall be allowed to occupy the unit until six months before the start of construction activities on the site. The project proponent and/or record owner of the occupied protected unit shall provide the existing occupants with written notice of the planned demolition, the date the occupants must vacate the unit, and their rights under the Housing Crisis Act. Said notice shall be provided at least six months in advance of the date that the existing occupants must vacate the unit, and a copy shall be concurrently delivered to the Development Services Director.

(2)

Right to return if demolition does not proceed. Any existing occupants of a protected unit to be demolished, regardless of their income level, that are required to leave the unit shall be allowed to return at their prior rental rate if the demolition does not proceed and the unit is returned to the rental market. This right shall be memorialized in a written agreement, covenant, or other document that is enforceable by the occupant(s) of the protected unit, the form of which shall be subject to review and approval by the Development Services Director.

(3)

Right of first refusal for a comparable unit in new housing development project. Except as otherwise expressly provided in this Subsection (e)(3), the record owner(s) of a protected unit that will be demolished shall agree to provide existing occupants of the protected unit that are lower income households with a right of first refusal to rent or purchase a comparable unit available in the new housing development project, or in any required replacement units associated with a new development that is not a housing development project, affordable to the household at an affordable rent or affordable housing cost. The right of first refusal shall be memorialized in a written agreement, covenant, or other document that is enforceable by the occupant(s) of the protected unit, the form of which shall be subject to review and approval by the Development Services Director. Notwithstanding the foregoing, this Subsection (e)(3) shall not apply to either (i) a development project that consists of a single residential unit located on a site where a single protected unit is being demolished, (ii) units in a housing development in which 100 percent of the units, exclusive of a manager's unit or units, are reserved for lower income households, unless the occupant of the protected unit qualifies for residence in the new development and providing a comparable unit to the occupant would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development, or (iii) a development project that is an industrial use and to which the requirement in the Housing Crisis Act to provide replacement units does not apply.

(4)

Relocation benefits.

a.

The applicant and/or the record owner(s) of a protected unit that will be demolished as part of a development project shall provide existing occupants of the protected unit to be demolished that are lower income households with relocation benefits that are equivalent to the relocation benefits required to be paid by public entities pursuant to the Relocation Assistance Law. By way of example, said relocation benefits may include, without limitation, advisory assistance in finding comparable new housing, payment of moving expenses, and rental assistance payments.

b.

The applicant shall engage a qualified third-party contractor or consultant (a "relocation consultant") approved by the Development Services Director to determine the eligibility of occupants for benefits, prepare a relocation plan, and oversee the provision of the required relocation benefits.

c.

The applicant's relocation consultant shall prepare a written relocation plan consistent with the provisions of the Relocation Assistance Law, which plan shall be subject to review and approval by the Development Services Director. The relocation plan shall include, without limitation, provisions addressing the following:

1.

Determination of eligibility requirements;

2.

Identification of eligible occupants;

3.

Occupant interviews and needs assessments;

4.

An evaluation of the availability of comparable replacement housing within the relevant geographic area;

5.

Identification of specific replacement housing options;

6.

The provision for relocation advisory services to affected occupants;

7.

A description of the relocation benefits available to eligible occupants;

8.

A process for the provision of benefits and the submission of benefit claims by eligible occupants;

9.

A process for occupants to appeal benefit determinations; and

10.

Procedures for providing the benefits required pursuant to this Subsection (e), including copies of the required notices, agreements, and other forms needed to implement the provision of said benefits.

d.

Prior to the issuance of a grading or building permit for the development project, the relocation consultant shall provide a letter to the Development Services Director certifying that the relocation process has been completed and that all required relocation benefits have been provided.

(f)

Reimbursement of City's professional fees and costs. If benefits are required to be provided to existing occupants of protected units pursuant to Subsection (e), the applicant shall reimburse the City for the actual fees and costs charged for the services of attorneys and/or other professional third-party consultants engaged by the City to provide consultation, advice, analysis, and/or review or preparation of documents in connection with the review of a relocation plan, notices, or other required forms and documents and the monitoring and/or enforcement of compliance with requirements for provision of benefits. Concurrent with or prior to the applicant's submittal of any notice, agreement, plan, or other document requiring approval of the Development Services Director pursuant to Subsection (e), the applicant shall execute a reimbursement agreement with the City in a form approved by the City Attorney and provide a deposit to the City in an amount sufficient to cover the estimated total professional fees and costs to be incurred by the City, as determined by the Development Services Director in his or her reasonable discretion. The City Manager is authorized to execute said reimbursement agreement on behalf of the City.

(g)

Fees. In addition to the reimbursement of professional fees and costs pursuant to Subsection (f), above, the City may impose a fee or fees to recover the City's other reasonable costs to implement the dwelling unit protection provisions of the Housing Crisis Act and this Section. Any such fees shall be adopted by resolution of the City Council.

(Ord. No. 24-06, § 4, 9-11-2024)