As an alternative to developing affordable units pursuant to this chapter, an applicant may satisfy requirements of this chapter through one of the following alternatives:
A. In-lieu fees. Applicants may choose to comply with the requirements of this chapter through payment of a fee, in-lieu of providing the required affordable units on site.
1. The method for calculation of the in-lieu fee per unit shall be determined by the following formula:
The product of the square footage of the average size unit in the proposed development multiplied by the median price per square foot of a home in the City of Brea based on market rate home sales in the last quarter immediately prior to drafting of the affordable housing agreement,
Minus
The product of the square footage of the average size unit in the proposed development multiplied by the median cost per square foot to construct the respective type of unit as shown on the most recent edition of the Building Permit Valuation Table in use by the Building Department.
2. One-half of the in-lieu fees shall be paid prior to the issuance of a building permit for the project, with the remaining fees due prior to the issuance of a certificate of occupancy.
3. Fees collected in-lieu of developing affordable units pursuant to this chapter shall be placed in the City's Affordable Housing Trust Fund.
B. Offsite construction. At the discretion of the city, an applicant may satisfy the requirements of this chapter by developing the required number of affordable units at a site different than the site of the residential project.
1. The applicant must demonstrate that development of affordable units offsite would better address the city's housing element goals and policies.
2. The number of units to be developed offsite shall be consistent with the requirements of this chapter.
3. Offsite affordable units shall contain the same number of bedrooms, square footage, overall unit mix, appearance, finished quality, materials, and distribution as the non-affordable units in the project.
4. Offsite affordable units shall be developed concurrently with the main project and certificate of occupancy will be contingent on final approval and inspection of the affordable units.
5. Offsite affordable units shall be located within the City of Brea.
6. Offsite affordable units shall be subject to the same requirements, standards, and procedures as onsite affordable units.
C. Land dedication. At the discretion of the city, an applicant may satisfy the requirements of this chapter by dedicating land to the city in-lieu of constructing affordable units within the residential project.
1. The land to be dedicated must be free of any liens, and such land shall be conveyed to the city at no cost.
2. The applicant must disclose any and all encumbrances or easements on the title of the land, and all encumbrances and easements must be factored into the estimated value of the land dedication.
3. The land to be dedicated must have improvements required to accommodate housing, such as infrastructure and services.
4. The land to be dedicated must be free of any hazardous materials. If there were any hazardous materials previously contained on the site, the developer must provide evidence that full remediation was performed in accordance with all applicable law.
5. The General Plan and Zoning designations of the land to be dedicated must allow for multi-family residential use prior to dedication.
6. The applicant must demonstrate that development of affordable units on the land to be dedicated would be consistent with the housing element goals and policies and this chapter, and not cause residential segregation.
7. The applicant must submit all pertinent information determined to be necessary by the city to evaluate the proposal.
D. Convert existing market rate to affordable housing. At the discretion of the city, an applicant may satisfy the requirements of this chapter through the acquisition and rehabilitation of existing market rate units in the City of Brea for conversion to affordable units.
1. Converted units shall be subject to the same requirements, standards, and procedures as onsite affordable units.
2. The rehabilitation of the existing market rate units to be converted to affordable units shall be completed prior to, or concurrently with the main housing project.
3. Converted units shall be retained as affordable units for 45 years or until sold or transferred with an equity share for owner-occupied units and 55 years as to rental units. The affordability period begins upon the initial sale or rental of the unit.
4. The existing market rate units shall be substantially rehabilitated, as determined by the city.
5. The Affordable Housing Plan and Agreement as described in § 20.40.090 shall provide a description of benefits to be offered to existing tenants, which for conversion of market rate housing units would include, but not be limited to, right of first refusal to remain in the unit, and any expected need for relocation of existing tenants. The applicant is responsible for providing relocation assistance.
(Ord. 1242, passed 8-15-23)