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Union City City Zoning Code

CHAPTER 18

33 AFFORDABLE HOUSING

§ 18.33.010 Purpose.

The purpose of this chapter is to:
A. 
Enhance the public welfare by ensuring that future residential developments contribute to the attainment of the affordable housing goals set forth in the Housing Element of the General Plan of the City of Union City.
B. 
Increase the production of residential units in Union City that are affordable to households of very low, low, and moderate income.
C. 
Facilitate a cooperative effort between the City of Union City and the housing development community for the provision of affordable housing to all economic segments of the community.
D. 
Ensure that units affordable to households of very low, low and moderate income are distributed throughout the City's various neighborhoods.
E. 
Comply with the requirements of Health and Safety Code Section 33341.3(b) within the redevelopment project area and elsewhere in the community as applicable.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.020 Definitions.

For purposes of this chapter, each of the following terms is defined as follows:
"Additions"
are increases in habitable space to an existing building or structure.
"Affordable housing program"
means a method for providing the affordable housing units in the proposed project, a method for a payment in-lieu of providing affordable units, or a combination thereof, pursuant to Section 18.33.060(H).
"Affordable unit"
means an ownership or rental housing unit, including senior housing, affordable by households with very low, low or moderate incomes as defined in this chapter. The unit shall be deemed affordable if it meets the requirements of Health and Safety Code Section 50052.5(b) for owner occupied housing and Section 50053(b) for rental housing.
"Developer"
means the person(s) or legal entity(ies), who also may be the property owner, who is developing a particular project in the City.
"Habitable space"
means floor area within a dwelling unit designed, used, or intended to be used exclusively for living and sleeping purposes.
"Housing costs"
means the monthly mortgage principal and interest, property taxes, homeowners' insurance, utility allowance and condominium fees, where applicable, for ownership units; and the monthly rent and utility allowance for rental units.
"HUD"
means the United States Department of Housing and Urban Development or its successor.
"Large project"
means a residential development with seven units or more.
"Resale controls and/or rent restrictions"
means legal restrictions, as set forth by the City of Union City, State and Federal law, by which the affordable units shall be restricted to ensure that the unit remains affordable to very low, low or moderate income households, as applicable, permanently or for the longest period allowed by law. Such resale controls and/or rental restrictions shall generally be consistent with the requirements of Health and Safety Code Section 33334.3(f), as amended from time to time, and as may be more particularly set forth in this chapter. With respect to rental units, such rent restrictions shall generally be in the form of a regulatory agreement recorded against the applicable property. With respect to owner occupied units, such resale controls shall generally be in the form of resale restrictions, deeds of trust and/or other similar documents recorded against the applicable property.
"Residential development"
includes, without limitation, detached single-family dwellings, multiple dwelling structures, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed use developments that include housing units, and residential land subdivisions intended to be sold to the general public.
"Residential project"
includes contiguous or non-contiguous parcels that have one or more applications filed within a 24 month period and which are under the same ownership.
"Small project"
means a residential development with six units or less.
"Very low, low and moderate income levels"
means those income and eligibility levels determined periodically by the United States Department of Housing and Urban Development based on the Oakland Standard Metropolitan Statistical Area (SMSA) median income levels by family size. Such levels shall be calculated on the basis of gross annual household income considering household size and number of dependents, income of all wage earners, elderly or disabled family members and all other sources of household income and will be recertified as set forth by local standards, State and Federal housing law.
1. 
"Very low income"
means 50% or under of the SMSA median, adjusted for actual household size.
2. 
"Low income"
means 51% to 80% of the SMSA median, adjusted for actual household size.
3. 
"Moderate income"
means 81% to 120% of the SMSA median, adjusted for actual household size.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018; Ord. 883-21 § 4, 2021; Ord. 2025-002, 3/25/2025)

§ 18.33.030 General requirements.

A. 
Fifteen percent Requirement. All residential development projects designed and intended for permanent occupancy located in any zoning district, for which an application for any use permit, site development permit or subdivision map is filed after the effective date of the ordinance codified in this chapter, shall maintain 15% of the total number of dwelling units within the development as affordable units, according to the terms of this chapter. The foregoing requirement shall be applied no more than once to an approved development, regardless of changes in the character or ownership of the development, provided the total number of units does not change. Projects where the calculation of the inclusionary requirement results in a fraction of a unit, such a fraction shall be paid in the form of an in-lieu fee, as set forth in Section 18.33.060(I) (Fractional units), or the developer may elect to build an additional affordable unit. The City reserves the right, solely at the City's discretion, to negotiate with the developer to adjust the required affordability levels of a particular project on a case-by-case basis if it is deemed necessary and appropriate by the City to maximize the best suited development for a site.
B. 
Affordability Levels. Affordable units provided pursuant to the 15% requirement of subsection A of this section shall be made affordable to households with very low, low and moderate income pursuant to the minimum distributions included in the following table:
Income Level
Rental Units Distribution of Affordable Units Required to Be Built
Owner Units Distribution of Affordable Units Required to Be Built
Very Low Income
30%
Not Applicable
Low Income
70%
10%
Moderate Income— 81 to 100%
Not Applicable
30%
Moderate Income— 101 to 120%
Not Applicable
60%
For projects with seven or more rental units, the application of the minimum distributions will be as set forth in the following table:
Total Number of Affordable Rental Units to Be Built
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Very Low Income Units
1
1
1
2
2
3
3
3
3
4
4
4
5
5
Low Income Units
1
1
2
3
3
4
4
5
6
7
7
8
9
9
10
For projects with seven or more owner units, the application of the minimum distributions will be as set forth in the following table:
Total Number of Affordable Owner Units to Be Built
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Low Income Units
1
1
1
1
1
1
1
2
2
2
2
2
Moderate Income Units (81—100%)
1
1
1
2
2
2
3
3
3
3
4
4
5
5
Moderate Income Units (101—120%)
1
1
2
2
2
3
4
4
5
6
6
6
7
7
8
For larger projects that exceed 15 required units to be built, the columns can be added to equal the total number, and the corresponding required units shall be built.
C. 
Conditions of Approval. Any tentative map, use permit or site development permit approving residential construction projects meeting the foregoing criteria shall contain conditions sufficient to ensure compliance with the provisions of this chapter. Such conditions shall specify the schedule of construction of affordable units, the number of affordable units, and appropriate resale controls and rental restrictions.
D. 
Concurrent Construction. All affordable units in a project or phase of a project shall be constructed concurrently with market rate units.
E. 
Design and Distribution of Affordable Units. Unless the City, at its sole discretion, and in cooperation with the developer, approves an alternate development plan for the affordable units is developed, all affordable units shall reflect the range of numbers of bedrooms provided in the project as a whole, and shall not be distinguished by exterior design, construction, or materials, and shall be reasonably dispersed throughout the project as determined by the Economic and Community Development Director.
F. 
Single-Family Housing Projects with Corner Lot Duplexes. When affordable housing units are required in single-family developments, the requirements of this chapter can be satisfied with the construction of duplex units located on corner lots. Duplexes shall meet the setback standards of the zoning district in which they are located. Exceptions to the setback standards may be granted by approval of a use permit. The City may also consider other alternative affordable options, as set forth in Section 18.33.060(E).
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.040 General procedures.

A. 
Agreements. Prior to the issuance of a certificate of occupancy, resale restrictions and/or rental controls, as applicable, all of which must be acceptable to the Economic and Community Development Director and be consistent with the requirements of this chapter, shall be recorded against parcels having affordable units. For ownership projects, the resale restrictions shall be effective for 45 years, and the 45 year period shall restart with each resale of the affordable unit. For rental projects the rental controls shall be effective for 55 years.
B. 
Right of First Refusal. The resale restrictions shall provide that in the event of the sale of an affordable unit, the City shall have the right to purchase any affordable owner-occupancy unit at the maximum prices which could be charged to an eligible household.
C. 
Selection Criteria. No household shall be permitted to occupy a unit which is required to be affordable under this chapter unless the City or its designee has approved the household's eligibility. For ownership units, eligibility shall be determined prior to initial occupancy of the unit. For rental units, eligibility shall be determined prior to initial occupancy of the unit, and on an annual basis thereafter. Eligible potential occupants of affordable units will be qualified on the basis of household income, the median combined household income statistics published periodically by HUD, all sources of household income and assets, a relationship between household size and the size of available units, and any further criteria required by law. The developer shall use an equitable selection method established in conformance with the terms of this chapter. No distinction will be made between adults and children. All persons in each of the following categories of otherwise qualified persons shall be selected before persons from the next succeeding category are selected:
1. 
First priority: persons who have been displaced by the proposed project;
2. 
Second priority: persons who live or work within the City of Union City;
3. 
Third priority: all other eligible persons.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.050 Public subsidy assistance.

It is the intent of this chapter that its requirements of construction and maintenance of affordable units shall not depend upon the availability of any government subsidies. This is not to preclude the use of such programs or subsidies where available, however, and it is anticipated that subsidies of rental units may be available from HUD or State sources on an ongoing basis.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.060 Development options.

This chapter is not intended to place any unreasonable burden upon developers of residential projects, and for that reason confers significant economic and land use benefits thereon, as set forth below:
A. 
Density Bonus. The limitations upon residential density contained in Title 18 shall be deemed modified to the extent required by the terms of this chapter. The city, upon request, may approve an increase in the number of units permitted in a proposed residential development governed by this chapter, when such an increase in density is consistent with State density bonus law per Section 65915 of the State Government Code. The dwelling units or parcels designated to meet the City's mandatory inclusionary housing requirement shall count toward qualifying the proposed development for a density bonus.
B. 
Small Project In-Lieu Fees. The developer may satisfy the requirements to provide affordable units pursuant to Section 18.33.030 (General requirements) through the payment of the small project in-lieu fee; provided, that the proposed development is six units or less. The small project in-lieu fees shall be paid prior to the issuance of a building permit for each dwelling unit in the project. The small project in-lieu fee shall be set forth in the City's Master Fee Schedule or by other action of the City Council. The small project in-lieu fee amount may be amended from time to time by the City Council by resolution, to meet inflationary increases, and the amount shall be set forth in the City's Master Fee Schedule. Any small project in-lieu fees collected from any project will be committed to an affordable housing project pursuant to Section 18.33.100.
C. 
Large Project Optional In-Lieu Fee. The developer may satisfy the requirements to provide affordable units pursuant to Section 18.33.030 (General requirements) through payment of the large project optional in-lieu fee for any or all required affordable units, provided that the proposed development is seven units or more. The large project optional in-lieu fee shall be paid prior to the issuance of a building permit for each dwelling unit in the project. The large project optional in-lieu fee shall be set forth in the City's Master Fee Schedule or by other action of the City Council. The large project optional in-lieu fee amount may be amended from time to time by the City Council by resolution, to meet inflationary increases, and the amount shall be set forth in the City's Master Fee Schedule. Any large project optional in-lieu fees collected from any project will be committed to an affordable housing project pursuant to Section 18.33.100.
D. 
Waiver of Requirements. The City Council, at its discretion, may waive the requirements of this chapter if there are unusual development costs associated with the property that would otherwise prevent the project from proceeding. Typically, such a condition would involve excessive costs inherent on the property, such as environmental contamination.
E. 
Off-Site and Alternative Construction Options. Where affordable units are required by Section 18.33.030, the City may instead, at its sole discretion, consider the construction of units not physically contiguous to the development (off-site) or alternative on-site affordable housing development options, set forth in a binding agreement as set forth in subsection H, if the City Council determines that:
1. 
A schedule for completion of the off-site units concurrently with completion of the related market-rate units is provided and agreed upon as a condition of approval for the project;
2. 
The off-site or alternative units are at least equal in basic amenities to other units in the project, with extra consideration given for the creation of additional affordable units, larger units or affordability to households with lower incomes;
3. 
Off-site or alternative construction options will further affordable housing opportunities in the City to a greater extent than construction of the normally required units as part of the residential project in question;
4. 
Working with a non-profit to develop higher density, rental units on- or off-site may be a more efficient way to meet affordable needs at that point in time. In all cases, the affordable units must be built prior to or concurrently with the market rate development, unless a development agreement with a non-profit has been approved. The utilization of off-site and alternative housing will be considered relative to the inventory of available sites at that time.
F. 
Technical and Financial Assistance. Upon request, the City or its designee shall provide assistance to developers concerning information regarding financial subsidy programs and economic analysis designed to indicate the most suitable methods by which the terms of this chapter may be implemented. To the extent that funds may be available and consistent with applicable Federal and State regulations and policies, affordable housing developers may apply to receive Federal Community Development Block Grant funds for purposes of defraying certain off-site improvement costs and other expenses. Such determination of eligibility shall be made by the Economic and Community Development Director. The City shall establish application and administration procedures and criteria by which eligible expenditures of such funds and their amounts shall be determined.
G. 
Priority Processing. All residential developments providing affordable units pursuant to the requirements of this chapter shall receive "priority processing" by which housing developments shall be reviewed and checked for all required City permit and other approvals in advance of other pending developments.
H. 
Contractually Binding Alternative Means of Compliance. The City Council, in its discretion, may permit a developer to comply with the purpose of this chapter for a particular residential development project through implementation of an alternative affordable housing program instead of by compliance with the provisions of this chapter if:
1. 
Such alternative affordable housing program is set forth in a binding agreement, including, but not limited to, a government code development agreement, disposition and development agreement, disposition and development loan agreement, owner participation agreement, or affordable housing agreement with the City of Union City;
2. 
The City Council finds that such alternative affordable housing program will provide an equal to or greater than level of affordable housing to the community as would be provided through adherence to the requirements of this chapter.
I. 
Fractional Units. In large projects where the calculation of the inclusionary requirement results in a fraction of a unit, such a fraction shall be paid in the form of an in-lieu fee, or the developer may elect to build an additional affordable unit. The fractional in-lieu fee payment shall be calculated as follows: Fractional unit divided by the total affordable units required, multiplied by the per square foot large project optional in-lieu fee rate, multiplied by the total habitable space in the residential development.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 712-08 § 2, 2008; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.070 Exemption to inclusionary housing requirements.

The construction of an accessory dwelling unit (or a junior accessory dwelling unit) shall not be subject to the requirements of Section 18.33.030.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018; Ord. 883-21 § 4, 2021)

§ 18.33.080 Enforcement.

A. 
The provisions of this chapter shall apply to all agents, successors and assignees of a developer proposing a residential development governed by this chapter. No rezoning tentative map, parcel map, use permit, site development review approval, administrative site development review approval, building permit, or other entitlement shall be approved for any residential development unless exempt from or in compliance with the terms of this chapter.
B. 
The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny or suspend any permit or development approval.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.090 Appeals.

A. 
Any person aggrieved by any action involving denial, suspension or revocation of an occupancy or other permit, or denial, suspension or revocation of any development approval, may appeal such action or determination in the manner provided for by Chapter 18.52.
B. 
Any developer or other person who contends that his or her rights conferred by this chapter have been adversely affected by any determination or requirement of any agency designated by the City as its administrative agent may notify the chief executive officer of said agency to that effect in writing, stating relevant facts. All such contentions shall be considered exclusively by said agency in accordance with such procedures as they may be established. In instances in which violations of this chapter or any agreement with the City on the part of said agency is alleged, City shall take appropriate investigative and corrective actions.
(Ord. 600-02 § 2, 2002; Ord. 670-06 § 3, 2006; Ord. 677-06 § 2, 2006; Ord. 817-16 § 4, 2016; Ord. 853-18 § 4, 2018)

§ 18.33.100 Housing in-lieu fund.

All fees collected pursuant to Section 18.33.060 shall be deposited into a separate account to be designated the City of Union City housing in-lieu fund. The fees collected pursuant to Section 18.33.060 and all earnings from investment of the fees shall be expended exclusively to provide or assure continued provision of affordable housing in the City through acquisition, construction, development assistance, rehabilitation, financing, or other methods, and for costs of administering these programs. Funds may be used for the reasonable and actual administrative costs directly related to the provision of affordable housing financed by the fund. The housing shall be of a type, or made affordable at a cost or rent, for which there is a need in the City and, to the extent feasible, shall be utilized to provide for moderate, low, very low, and extremely low income housing. The fees collected shall be administered by the City Manager or designee, who may develop procedures to implement the purposes of the housing fund consistent with the requirements of this chapter and any adopted budget of the City.
(Ord. 853-18 § 4, 2018)

§ 18.33.110 Affordable housing impact fee.

The "Union City Residential Nexus Analysis Study," dated September 2016 (the "Nexus Study"), prepared by Keyser-Marston Associates, Inc., quantifies the impacts of new residential construction on the need for affordable housing in the City and the justified affordable housing fees to mitigate those impacts. The City Council has determined that the affordable housing impact fee authorized by this section (the "affordable housing impact fee") is reasonably related to the need for affordable housing associated with the development of market-rate housing as demonstrated by the Study. The affordable housing impact fee shall be collected and used for the purpose of creating, developing and/or maintaining existing housing targeted for affordable households within the City.
A. 
Affordable housing impact fee shall apply to:
1. 
Additions exceeding 500 square feet of habitable space; and
2. 
The reconstruction or replacement of any single-family dwelling unit; provided, that the affordable housing impact fee shall only apply to the net increase in square footage greater than 500 square feet of habitable space.
B. 
The affordable housing impact fee shall be set forth in the City's Master Fee Schedule or by other action of the City Council.
C. 
No application for a use permit, site development review approval, administrative site development review, building permit or other entitlement shall be approved without compliance with this section.
D. 
Impact fees shall not exceed the cost of mitigating the impact of market rate residential projects on the need for affordable housing in the City.
E. 
The amount of any affordable housing impact fee payable under this section is based on the fee schedule in effect at the time of issuance of the building permit for the new dwelling unit or addition to which the fee relates.
F. 
The impact fee shall be paid prior to issuance of the building permit for the new dwelling unit or addition.
G. 
All affordable housing impact fees shall be deposited into a separate account or fund, and shall be maintained and expended in accordance with the requirements of Government Code Section 66006, and any other applicable law. The affordable housing impact fees and all earnings from investment of the fees shall be expended exclusively to provide or assure continued provision of affordable housing in the City through acquisition, construction, development assistance, rehabilitation, financing, or other methods, and for costs of administering these programs. The affordable housing impact fees may be used for the reasonable and actual administrative costs directly related to the provision of affordable housing financed by such fees. The housing shall be of a type, or made affordable at a cost or rent, for which there is a need in the City and, to the extent feasible, shall be utilized to provide for moderate, low, very low, and extremely low income housing.
H. 
The construction of an accessory dwelling unit shall not be subject to the requirements of Section 18.33.110.
(Ord. 853-18 § 4, 2018)