Item No. 6.
| MEETING DATE: 04/05/2021 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Chris Schaefer, Senior Planner |
| SUBJECT: | RECEIVE AND FILE SUPPLEMENTAL REPORT AND APPROVE THE SECOND READING AND ADOPTION OF ORDINANCE NO. 1833 |
RECOMMENDATION:
That City Council:
A. Receive and file this report; and
B. APPROVE SECOND READING AND ADOPTION OF ORDINANCE NO. 1833 ENTITLED: AN ORDINANCE OF THE CITY OF LA HABRA APPROVING ZONE CHANGE 20-03 AMENDING TITLE 18 ("ZONING") OF THE LA HABRA MUNICIPAL CODE (LHMC) BY ADDING CHAPTER 18.82 ("INCLUSIONARY HOUSING UNITS") AS PER EXHIBIT “A”.
DISCUSSION:
On January 19, 2021, staff presented Zone Change 20-03 to the City Council which proposed to add Chapter 18.82 "Inclusionary Housing Units" to the La Habra Municipal Code. After discussion, the City Council directed staff to table the issue temporarily. In early March 2021, Mayor Espinoza and Mayor Pro Tem Medrano requested that the item be placed back on the next available City Council agenda. On March 15, 2021, the City Council reconsidered Zone Change 20-03.
During deliberations, the Council discussed various issues of the proposed Inclusionary Housing Ordinance. The main points centered around the effective date of the ordinance as well as the calculation of the in-lieu fee, which is the amount a developer could choose to pay rather than physically providing affordable units as part of a new development project. Councilmember Simonian made a motion to approve the first reading of the ordinance, which was seconded by Mayor Pro Tem Medrano, with the following changes (revised language bolded and italicized) :
Change 1: Section 18.82.040C
Language as originally proposed by staff:
"Residential developments for which a planning permit has been approved by the City prior to enactment of this Ordinance. Should the planning permit for an approved residential project expire or is revoked by the City, the requirements of this Ordinance shall then apply if a new planning permit is resubmitted for the residential project."
Language revised by Council motion:
"Residential developments for which a planning permit has been formally submitted to the City and accepted by the City before July 1, 2021. Should the planning permit for an approved residential project expire or be revoked by the City, the requirements of this Ordinance shall then apply if a new planning permit is resubmitted for the residential project."
Staff comment:
There are currently four residential project applications formally submitted to the Planning Department for staff review; however, they will not be scheduled for public hearing prior to the effective date of the ordinance, which will occur on the 31st day after its second reading, which is May 6, 2021. In addition, there is a project that will be formally submitted to the Planning Department to begin the review process within several days. Staff believes that these projects should not be burdened with an ordinance that was not in effect when the property owners first developed their plans months ago.
Change 2: Section 18.82.080.C
Language as originally proposed by staff:
"Applicants may pay In-lieu fees. The in-lieu fee shall be charged at an amount equivalent to the costs necessary to construct each actual Inclusionary Housing Unit. If the applicant chooses to pay in-lieu fees, the applicant must provide the supportive documentation, valuations, and financial calculations that detail the estimated cost for construction of each Inclusionary Housing Unit. All in-lieu fees shall be paid prior to the last certificate of occupancy that is issued for the overall proposed residential development."
Language revised by Council motion:
"Applicants may pay in-lieu fees. The in-lieu fee shall be charged at an amount equivalent to six dollars and fifty cents ($6.50) per square foot of building for the project's total floor area. All in-lieu fees shall be paid prior to the last certificate of occupancy that is issued for the overall proposed residential development."
Staff comment:
Staff conducted an analysis of the eight Orange County cities with approved inclusionary housing ordinances to determine the in-lieu fees for a sample project in La Habra (Volara townhome project at 104-118 East Electric Avenue). It was determined that the use of a fixed rate calculation at $6.50 per square foot of total floor area was within the average range of these Orange County cities.
During deliberations, the Council discussed various issues of the proposed Inclusionary Housing Ordinance. The main points centered around the effective date of the ordinance as well as the calculation of the in-lieu fee, which is the amount a developer could choose to pay rather than physically providing affordable units as part of a new development project. Councilmember Simonian made a motion to approve the first reading of the ordinance, which was seconded by Mayor Pro Tem Medrano, with the following changes (revised language bolded and italicized) :
Change 1: Section 18.82.040C
Language as originally proposed by staff:
"Residential developments for which a planning permit has been approved by the City prior to enactment of this Ordinance. Should the planning permit for an approved residential project expire or is revoked by the City, the requirements of this Ordinance shall then apply if a new planning permit is resubmitted for the residential project."
Language revised by Council motion:
"Residential developments for which a planning permit has been formally submitted to the City and accepted by the City before July 1, 2021. Should the planning permit for an approved residential project expire or be revoked by the City, the requirements of this Ordinance shall then apply if a new planning permit is resubmitted for the residential project."
Staff comment:
There are currently four residential project applications formally submitted to the Planning Department for staff review; however, they will not be scheduled for public hearing prior to the effective date of the ordinance, which will occur on the 31st day after its second reading, which is May 6, 2021. In addition, there is a project that will be formally submitted to the Planning Department to begin the review process within several days. Staff believes that these projects should not be burdened with an ordinance that was not in effect when the property owners first developed their plans months ago.
Change 2: Section 18.82.080.C
Language as originally proposed by staff:
"Applicants may pay In-lieu fees. The in-lieu fee shall be charged at an amount equivalent to the costs necessary to construct each actual Inclusionary Housing Unit. If the applicant chooses to pay in-lieu fees, the applicant must provide the supportive documentation, valuations, and financial calculations that detail the estimated cost for construction of each Inclusionary Housing Unit. All in-lieu fees shall be paid prior to the last certificate of occupancy that is issued for the overall proposed residential development."
Language revised by Council motion:
"Applicants may pay in-lieu fees. The in-lieu fee shall be charged at an amount equivalent to six dollars and fifty cents ($6.50) per square foot of building for the project's total floor area. All in-lieu fees shall be paid prior to the last certificate of occupancy that is issued for the overall proposed residential development."
Staff comment:
Staff conducted an analysis of the eight Orange County cities with approved inclusionary housing ordinances to determine the in-lieu fees for a sample project in La Habra (Volara townhome project at 104-118 East Electric Avenue). It was determined that the use of a fixed rate calculation at $6.50 per square foot of total floor area was within the average range of these Orange County cities.
FISCAL IMPACT/SOURCE OF FUNDING:
There are no anticipated fiscal impacts to the City's General Fund as expenses would be the responsibility of the applicants should an Inclusionary Housing Ordinance be adopted. In the event a developer chooses to pay the in-lieu fee rather than constructing affordable units in their project, a fee would be determined based on the calculation of $6.50 per square foot for the total square footage of the project. This fee would be deposited in the City's affordable housing account for use at such time when the construction of affordable units elsewhere in the City can be accomplished.
GENERAL PLAN RELEVANCE:
H 1.1 Support State Housing Policy
H 1.2 Integrated Strategy for Development
H 1.3 Support Private Sector Housing Production
H 1.4 Variety of Housing
H 1.5 Market and Non-Market Housing Production Needs
H 1.7 Inclusionary Housing
H 1.8 Mixed Use Development
H 2.10 Preservation of Affordable Housing
H 3.1 Equal Opportunity Housing
H 3.7 Additional Housing Assistance Resources of the La Habra General Plan 2035
H 1.2 Integrated Strategy for Development
H 1.3 Support Private Sector Housing Production
H 1.4 Variety of Housing
H 1.5 Market and Non-Market Housing Production Needs
H 1.7 Inclusionary Housing
H 1.8 Mixed Use Development
H 2.10 Preservation of Affordable Housing
H 3.1 Equal Opportunity Housing
H 3.7 Additional Housing Assistance Resources of the La Habra General Plan 2035