A. Promote the construction of housing within Sebastopol that is affordable to all economic segments of the community, including households with lower incomes;

B. Encourage the construction of affordable housing throughout the community, rather than concentrated within specific areas or neighborhoods;

C. Implement the State-mandated Housing Element of the General Plan which mandates an inclusionary housing program;

D. Provide a mechanism to assure affordability of housing units constructed under the provisions of this chapter for a specific period of time;

E. Provide the basis for establishment of a fee that may be paid under specified circumstances in lieu of building an inclusionary unit. (Ord. 1111, 2018)

A. Threshold. The provisions of this chapter shall apply to all new residential developments of five or more parcels or dwelling units intended and designed for permanent occupancy, including conversions from nonresidential uses, which receive subdivision, conditional use permit, or Design Review Board approval after the effective date of the ordinance codified in this chapter. In the case of a lot split that creates five or more parcels, but that will not involve the present or future development of five or more new dwelling units, the requirements of this chapter shall not apply.

B. Exemptions. The following shall not be subject to the provisions of this chapter:

A. Percentage Requirement. In projects of five or more units, inclusionary units shall be provided as follows:

If, in the application of the requirements of this chapter, a decimal fraction unit requirement is obtained, an in-lieu fee shall be provided equal to the applicable decimal fraction times the established in-lieu fee for one inclusionary unit, or, at the developer’s discretion, an inclusionary unit may be provided.

B. Target Income Levels. Required inclusionary units shall be sold or rented to qualified households at or below the income level identified in subsection A of this section.

C. Construction of Inclusionary Units. The inclusionary units shall be constructed at the same time as the other units. The completion of inclusionary units in a phased project shall be proportional to the completion of the market rate units.

D. Distribution of Inclusionary Units. Whenever reasonably possible, inclusionary units shall be distributed throughout the development. Distribution of units may take into account the number of required inclusionary units in the project, as well as consideration of environmental and aesthetic factors.

E. Appearance of Inclusionary Units. The inclusionary units shall be substantially the same as the market rate units or buildings in exterior materials and finish. The applicant may reduce either the size or provide less expensive interior amenities for the inclusionary units as long as there are not significant differences visible from the exterior of the units and the size, fixtures and design of the units are reasonably consistent with the market rate units in the project, provided all units conform to the requirements of the Building and Housing Codes.

F. Size of Inclusionary Units. Inclusionary units provided shall generally have a comparable number of bedrooms as market rate units in the project. If the floor area of the inclusionary units in the project is not substantially the same or larger than the market rate units in the project, the inclusionary units shall satisfy the following minimum total floor areas, depending on the number of bedrooms provided:

G. Subdivision Map Requirements. Any final or parcel map for a subdivision requiring provision of an inclusionary unit or units shall bear a note indicating whether compliance with this section must be met prior to issuance of a building permit for each lot created by such map, and, as applicable, shall designate which lots are required to be developed with inclusionary units. (Ord. 1111, 2018)

A. Allowable Sales Prices. The Planning Department shall set maximum allowable purchase prices for inclusionary units, adjusted by the number of bedrooms. In the case of for-sale units, applicants shall provide a written statement setting forth the maximum sales price, projected monthly mortgage payment, and down payment for each required unit. Such maximum allowable purchase prices shall be set such that qualified occupants pay no more than 30 percent of the gross monthly household income. The cost of utilities, property taxes, insurance, homeowner’s dues, and the like shall not be included in the calculation of housing costs.

B. Down Payment. Any required down payment shall be limited to no more than 10 percent of the purchase price.

C. Allowable Rental Prices. The maximum allowable rental rate for inclusionary units shall be determined by the Planning Director, adjusted by the number of bedrooms. Project applicants shall provide a written statement setting the maximum rental rates. The maximum allowable rental rates shall be set such that qualified occupants pay no more than 30 percent of the gross monthly household income toward rent. The cost of utilities, property taxes, insurance, homeowner’s dues, and the like shall not be included in the calculation of housing costs. (Ord. 1111, 2018)

A. Qualified Households. Only qualified households shall be eligible to occupy or own inclusionary units. Developers shall utilize a City-approved list of qualified households or a City-approved entity such as a nonprofit housing corporation or a public housing authority to qualify applicants. Such list, consistent with applicable law, shall rank qualified households according to criteria established by the City Council, with highest ranking provided to Sebastopol-area residents, next to Sebastopol-area workers, followed by Sonoma County residents and workers, followed by others. Developers shall select only qualified households to occupy or own and occupy inclusionary units.

B. Excluded Persons. The following individuals, by virtue of their position or relationship, are ineligible to occupy an inclusionary unit:

A. Eligibility for Fee Payment. When the calculation of inclusionary requirements yields a fractional number, a fee in lieu of providing a full unit may be paid to the City. Said fee shall equal the fractional number times the established fee.

B. Amount of Fee. For purposes of this section, the inclusionary fee shall be established and adjusted from time to time by resolution of the City Council based upon the parameters of this chapter.

C. Payment of Fee. Any fee required by this chapter shall be paid in full prior to the issuance of a building permit for the project. At the applicant’s discretion, total inclusionary fees for the project may be divided and paid on a per-market-rate-unit basis upon issuance of a building permit for each market-rate unit.

D. Use of Funds. Any funds received from fee payments shall be placed in a reserve account used for the exclusive purpose of providing housing affordable to low- and moderate-income households in the City of Sebastopol. (Ord. 1111, 2018)

A. When inclusionary units are required, a deed restriction shall be recorded setting forth the applicable restrictions in this chapter.

B. Except as may be otherwise provided, inclusionary units shall be required to maintain affordability in perpetuity, unless a different period is required by State law. A program to assure affordability for these units for this period of time shall be administered by the City or by a nonprofit housing agency approved by the City. The applicant shall enter into an agreement with the City or its designee to provide monitoring and to assure affordability of the inclusionary units in perpetuity. The City Manager shall be authorized to enter into such agreement on behalf of the City. The approved agreement shall be recorded with the Sonoma County Recorder prior to issuance of a building permit for the project.

A. After receiving a recommendation from the Planning Commission, the City Council may modify the requirements of the inclusionary provisions on a project basis upon submittal of a written request on a form established by the Planning Department for an exception and payment of the applicable fee equal to that for a variance by the developer, if the Council finds that alternate requirements will achieve the intent of the inclusionary program and are consistent with the General Plan. A hardship request may be submitted by a developer prior to and independent of submittal of a development project application.

B. After receiving a recommendation from the Planning Commission, the City Council may modify the requirements of the inclusionary provisions on a project basis upon submittal of a written request on a form established by the Planning Department for a hardship exception and payment of the applicable fee equal to that for a variance by the developer, if the Council finds that due to the particular circumstances as documented by the applicant, an undue hardship or a legal taking under the State or Federal constitutions would be imposed on the project, and that an alternative requirement will appropriately address the intent of the inclusionary program. If the Council so determines, the inclusionary requirement for the project shall be modified to reduce the obligations otherwise applicable to the extent and only to the extent necessary to avoid a hardship or taking. The applicant shall bear the burden of presenting substantial evidence to support the hardship determination. (Ord. 1111, 2018)

A. After receiving a recommendation from the Planning Commission, the City Council may modify the requirements of the inclusionary provisions on a project basis upon submittal of a written request on a form established by the Planning Department for the approval of alternate inclusionary requirements and payment of the applicable fee equal to that for a major use permit by the developer, if the Council finds that alternate requirements will achieve the intent of the inclusionary program and are consistent with the General Plan.

B. If the Council so determines, the inclusionary requirements for the project shall be modified to change the inclusionary housing obligations to the alternative requirements proposed by the developer, and these requirements shall become a condition of the project. The applicant shall bear the burden of presenting substantial evidence to demonstrate that the alternative requirements meet the intent of this section.

C. A request to modify the inclusionary provisions of this chapter based on this section may be submitted by a developer prior to and independent of submittal of a development project application. (Ord. 1111, 2018)

A. Application of Requirements. The provisions of this chapter shall apply to all agents, successors and assignees of an applicant or developer. No planning permit shall be issued after the effective date of the ordinance codified in this chapter for any project which does not meet the requirements of this chapter.

B. Violations. Any person, firm or corporation, whether as principal, agent, employee or otherwise, violating or causing the violation of any of the provisions of this chapter, shall be guilty of a misdemeanor, and shall be deemed to be guilty of a separate offense during each and every day during any portion of which any violation of this chapter is commenced, continued or permitted by such person, firm or corporation.

C. Appeal to Planning Commission. Any person aggrieved by any action involving denial, suspension or revocation of a building permit or denial, suspension or revocation of any development approval may appeal such determination to the Planning Commission, with further appeal possible to the City Council, upon payment of the applicable appeal fee.

D. Appeal to City Council. Any applicant or other person who contends that his or her interests are adversely affected by a determination or requirement of the City or its designee in regard to this chapter and is not satisfied with the decision of the Planning Commission may appeal to the City Council upon payment of the applicable appeal fee. The appeal shall set forth specifically wherein the action of the City or its designee fails to conform to the provisions of this chapter thereby adversely affecting the applicant’s or other person’s interests. The City Council may reverse or modify any determination or requirement of the City or its designee if it finds that the action under appeal does not conform to the provisions of this chapter.

E. Severability. The City Council declares that every section, paragraph, clause and phrase of this chapter is severable. If, for any reason, any provision of the ordinance is held to be invalid, such invalidity shall not affect the validity of the remaining provisions.

F. Effective Date. The ordinance codified in this chapter shall be in full force and effect 30 days after its passage. (Ord. 1111, 2018)