This chapter is intended to require residential projects to contribute to the development, rehabilitation, and preservation of affordable housing and to implement the policies of the housing element of the city's general plan. Pursuant to Government Code section 65850 et seq., this chapter establishes an inclusionary housing requirement to encourage the development of residential units that are affordable to a range of households with varying income levels.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

"Affordable housing cost" as to rental units means rent determined under the applicable subsection of Health and Safety Code Section 50053, and as to ownership units means the housing cost determined under the applicable subsection of Health and Safety Code Section 50052.5.

"Affordable housing development agreement" means an agreement to develop affordable units, that is approved by the city council, fully executed, and recorded on title with Placer County.

"Affordable unit" means a dwelling unit which is affordable to a very low-income household (thirty to fifty percent of Area Median Income [AMI]), a low-income household fifty to eighty percent of AMI), or a moderate-income household (eighty to one hundred and twenty percent of AMI), and, in the case of rental units only, a dwelling unit which is affordable to an extremely low-income household (up to thirty percent of AMI).

"Density bonus" means a density increase over the otherwise maximum allowable gross residential density as of the date of application per Government Code Section 65915 et. seq.

"Developer" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities that seeks city approval for all or part of a development project. Developer includes "owner." For the purposes of this section, "developer" shall include the owner or applicant of a development project.

"Extremely low-income household" means a household whose income does not exceed thirty percent of the area median income for Placer County, as published and periodically updated by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50106.

"Housing development project" means the construction of all residential units, a common interest development created through the conversion of existing residential units that were not subject to this chapter at the time of construction, and mixed-use development including a residential component.

"Inclusionary housing agreement" means an agreement based on the inclusionary housing plan that is approved by the appropriate reviewing authority, fully executed, and recorded on title with Placer County. Each Inclusionary housing agreement shall include the right of city to enforce and provisions that such agreement may not be amended without the prior written approval of city. In addition, such agreement shall include, without limitation as to other provisions, the provisions of 17.95.080E.

"Inclusionary housing plan" means a proposal identifying the number and type of affordable units and detailing how the requirements of this chapter will be satisfied.

"Inclusionary housing trust fund" means a separate fund of the city in which is deposited all monies collected under this chapter, which shall be used to promote the construction, rehabilitation, and maintenance of affordable units, including administrative costs related to monitoring inclusionary housing agreements and deed restrictions on affordable units.

"Low-income household" means households whose income does not exceed eighty percent of the area median income for Placer County, as published and periodically updated by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50079.5.

"Moderate income household" means households whose income does not exceed one hundred and twenty percent of the area median income for Placer County, as published and periodically updated by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093.

"Owner" means a person partnership, joint venture, association, corporation, or public or private entity that has sufficient proprietary interest in real property to commence, maintain, and operate a development project.

"Very low-income household" means households whose income does not exceed fifty percent of the area median income for Placer County, as published and periodically updated by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50105.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

A.

All housing development projects proposing ten or more dwelling units shall include units that are affordable to very low and/or low-income households, in compliance with this chapter.

B.

Housing development projects for parcels with existing dwelling units shall be subject to this chapter if the sum of the existing dwelling units and the proposed dwelling units, net of any demolition, equal ten or more dwelling units.

C.

Subdivision maps dividing a parcel with existing dwelling units shall require, as a condition of approval, that if a housing development project is proposed on any newly created parcel, the proposed project shall be subject to this chapter if the sum of the existing dwelling units and any proposed dwelling units, net of any demolition, equal ten or more dwelling units.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

This chapter shall not apply to any of the following:

A.

A housing development project application determined to be complete by staff or deemed complete by law as of the effective date of the ordinance codifying this chapter. This exemption includes all approved and entitled projects and projects for which a complete SB 330 preliminary application has been submitted.

B.

The portion of a housing development project located within a designated landmark building or contributing structure to a designated historic district that is retained and preserved on site as part of a housing development project in compliance with the secretary of the Interior's standards.

C.

A housing development project that provides at least fifty percent of all units, excluding density bonus units, available at an affordable housing cost for a duration of not less than that provided under Section 17.95.080C hereof.

D.

A housing development project that is exempt from this chapter by state law, including a housing development project for which the city enters into a statutory development agreement.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

A.

A developer shall comply with this chapter by satisfying either of the options below:

1.

A minimum of fifteen percent of all dwelling units in a housing development shall be developed, offered to, and sold or rented to low-income households, at an affordable housing cost for low-income households; or

2.

A minimum of ten percent of all dwelling units in a housing development project shall be developed, offered to, and sold or rented to very low-income households, at an affordable housing cost for very low-income households; or

3.

A minimum of five percent of all dwelling units in a housing development project shall be developed, offered to, and sold or rented to extremely low-income households at affordable housing cost for extremely low-income households.

Inclusionary units within an ownership project must be ownership units; inclusionary units within a rental project must be rental units.

B.

Rounding calculations. In calculating the required number of inclusionary units, any fractional units will be rounded-up to the nearest whole number.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

As an alternative to developing inclusionary units within an affected housing development project, the developer may request to satisfy the requirements of this chapter by applying and receiving authorization for one or more of the following:

A.

Off-site construction. At the discretion of the reviewing authority and upon application by the developer, the developer may satisfy the inclusionary unit requirement, in whole or in part, by constructing the required number and type of units on a site in the city of Rocklin other than that of the affected housing project pursuant to an affordable housing development agreement.

B.

In-lieu fee.

1.

Any fees may be established and updated by resolution of the city council. In the event the city hereafter approves by resolution the alternative of in-lieu fees, the developer may choose to pay the established fee in-lieu of providing all or some of the inclusionary units. Unless and until the city by resolution approves the use of in-lieu fees and establishes such in-lieu fees, the alternative of in-lieu fees will not be available.

2.

Timing of payment. The full amount of the in-lieu fee shall be paid prior to issuance of a building permit for any part of the housing development project.

3.

Deposits. In-lieu fees collected shall be deposited in the Inclusionary housing trust fund.

4.

State density bonus. Payment of an affordable housing in-lieu fee shall not be considered a provision of affordable housing units for purposes of determining whether the housing development project qualifies for a state density bonus.

C.

Rehabilitation. At the discretion of the reviewing authority and upon application by the developer, the developer may acquire and rehabilitate market rate units within the city and convert those units to affordable units. The rehabilitation of the market rate units shall improve the units' structural integrity and livability to include improvements to the roofing, flooring, plumbing, heating, and air conditioning, as applicable. Any such rehabilitation shall be pursuant to an affordable housing development agreement.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

A.

Application. The developer shall prepare and submit an inclusionary housing plan as part of the housing development project application process which must be approved together with the associated entitlements needed for the project.

B.

Consideration. An inclusionary housing agreement shall be prepared by the city and reviewed concurrently with the entitlement application for a housing development project. An inclusionary housing agreement must be approved by the city council together with the associated entitlements needed for the project.

C.

Prohibitions.

1.

No application shall be deemed complete until the developer has submitted an inclusionary housing plan as part of the housing development project application.

2.

No approval shall be issued for any portion of a housing development project until the inclusionary housing agreement has been approved (or is concurrently approved) by the city council.

3.

No building permit shall be issued for any portion of a housing development project unless the inclusionary housing agreement has been executed and recorded.

4.

No certificate of occupancy shall be issued for all or any portion of a housing development project unless the developer performs its obligations under the inclusionary housing agreement.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

A.

Amenity access. Residents of inclusionary units shall have equal access to use of all on-site amenities.

B.

Construction. To the satisfaction of the city council, which approval shall not be unreasonably withheld, all inclusionary units shall be:

1.

Reasonably dispersed throughout the housing development project;

2.

Proportional in number, bedroom size, and location, to the market rate units; and

3.

Comparable with the market rate units in terms of the appearance, base design, materials, amenities, and finished quality.

C.

Duration of affordability. All required inclusionary units shall be reserved for the following minimum time periods. "Reserved" for the purpose of this chapter means by deed restricted and/or with recorded covenants running with the land. The city has the right, but is not required to, enforce the restrictions, and any failure to enforce in one instance does not constitute a waiver against future enforcement.

1.

Units for sale. A unit for sale shall be reserved at the applicable Affordable Housing Cost for a minimum of forty-five years.

2.

Units for rent. A unit for rent shall be reserved at the applicable Affordable Housing Cost for a minimum of fifty-five years.

D.

Tenant preference policy. Any tenant preference and priority system set forth in this code shall be used to determine eligibility among prospective beneficiaries for inclusionary units created through this chapter.

E.

Timing of construction. All inclusionary units shall be constructed concurrently with, or prior to the construction of the market rate units to assure that affordable units are offered and occupied while there are market units that remain unoccupied. If the city approves a phased project, the required inclusionary units shall be provided within each phase of the housing development project and per the inclusionary housing agreement.

F.

Subleases, assignments, and purchases. If the housing development project consists of units for rent, the inclusionary housing agreement shall prohibit tenants from subleasing affordable units or assigning rights with respect to affordable units. If the housing development project consists of units for sale, the inclusionary housing agreement shall require homeowners to occupy the unit.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

A.

Forfeiture of funds. Any individual who sells or rents an inclusionary unit in violation of this chapter shall be required to forfeit money so obtained in violation of this chapter (i.e., the profit received in rental income or sales price exceeding what is permitted by this chapter for affordable units). Recovered funds shall be deposited into the Inclusionary Housing Trust Fund.

B.

Enforcement. The city may institute any appropriate administrative or legal actions or proceedings necessary to ensure compliance with this chapter, including actions:

1.

To disapprove, revoke, or suspend any permit, including a building permit, certificate of occupancy, or ministerial or discretionary approval; and

2.

For injunctive relief and/or damages.

C.

Recovery of replacement affordable housing cost. In the event one or more units becomes noncompliant, the city will likely experience substantial costs to replace that unit. Historically, land costs, interest costs, and construction costs, among other factors, have increased significantly over time and it is reasonably foreseeable that these will continue to increase in the future. In addition, the city would incur costs associated with negotiation and preparation of documents, and would likely incur recording costs and development fees. As part of the damages the city would be entitled to recover would be the costs to replace a noncompliant unit; these costs could exceed the initial cost of development of the unit that has become noncompliant. Notwithstanding the recovery of damages and replacement costs, the original covenanted unit which has become noncompliant would remain subject to the recorded restrictions.

D.

Recovery of fees and costs. In any action to enforce this chapter or an inclusionary housing agreement, the city shall be entitled to recover its reasonable attorneys' fees and costs.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)

A.

Application. Within fifteen days of the approval or disapproval a project subject to the requirements of the Chapter 17.95, a developer may request a determination that the requirements of this chapter, taken together with the benefits under state density bonus law as applied to the housing development project, would legally constitute a taking of property of the housing development project without just compensation under the California or United States Constitutions. Failure to do so within that time constitutes a failure to exhaust administrative remedies.

B.

Burden on developer. The developer has the burden of providing economic information and other evidence necessary to establish that application of the provisions of this chapter to the housing development project would constitute a taking of property without just compensation.

C.

Reviewing authority. The taking determination shall be made by the city council.

D.

Presumption of facts. In making the taking determination, the review authority shall presume each of the following facts absent the city attorney's legal advice to the contrary:

1.

The application of the inclusionary housing requirements of this chapter to the housing development project;

2.

The application of the maximum benefits the housing development project qualifies for under the density bonus law;

3.

The utilization of the most cost-efficient product type for the inclusionary units, where the option is available to the developer; and

4.

The utilization of external funding where reasonably likely to occur.

E.

Modifications to reduce obligations. If it is determined that the application of the provisions of this chapter would be a taking, the inclusionary housing plan and associated entitlements shall be modified to reduce the obligations in the inclusionary housing component to the extent, and only to the extent necessary, to avoid a taking. If it is determined no taking would occur through application of this chapter, the requirements of this chapter remain applicable.

(Ord. No. 1195, § 3 (Exh. A), 11-11-2025)