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(a) Purpose. The purpose of this article is to provide a mechanism for producing housing affordable to extremely-low, very-low, lower and moderate income households by having each residential development provide a certain percentage of affordable housing units, or pay an affordable housing fee in-lieu of producing inclusionary units.
(1) Government Code Section 65580 states that “the availability of housing is of vital statewide importance, and the early attainment of decent housing ... is a priority of the highest order” and, further, that, “local ... governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.”; and
(2) By adoption of this inclusionary housing program, the City will be implementing the General Plan, 2000 – 2005 Housing Element goal, “The City will encourage the development of units affordable to low and moderate income households...”; and
(3) The City commissioned an Affordable Housing Study (Study) to consider among other things, the possibility of instituting an Inclusionary Housing Program. The Study, dated November 15, 2007, considered the financial feasibility of establishing such a program and the effect that imposing an inclusionary requirement or an in-lieu fee would have on the financial viability of residential development and among other things, the Study concluded:
(i) The study identified five (5) housing types that were representative of development in the City, large-lot single family for-sale, small-lot single family for-sale, townhomes for-sale, condominiums for-sale, and multifamily rental; and
(ii) Not all housing types were determined to be financially viable, specifically, multifamily rental could not be constructed and yield a positive rate of return given market conditions; and
(iii) That of the four (4) housing types studied and identified as economically viable only the townhouse and condominium developments could support an inclusionary housing requirement and remain financially viable; and
(iv) That the four (4) housing types which were studied and identified as economically viable could support an in-lieu fee; and
(v) That if the in-lieu fees are set at appropriate amounts as identified in the study, it would not result in an impediment to the production of residential development.
(4) This Program is adopted pursuant to the City's police powers to protect the public health, safety and welfare, and the public welfare benefits of creating affordable housing.
(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 3, Ord. 1543-NS, eff. October 8, 2010)