Loading...
HomeMy WebLinkAbout1993-02-09 - AGENDA REPORTS - AFFORDABLE HOUSING (2)NEW BUSINESS DATE: SUBJECT: DEPARTMENT: BACKGROUND AGENDA REPORT February 9, 1993 City Manager Approva Item to be presented by: Lynn M. Harris p< X� Incentives for the Development of Affordable Housing Community Development Community Development, Finance and Parks and Recreatlon staff have coordinated their efforts and drafted the attached City Council policy statement (Attachment 1). The purpose of the proposed policy is to establish guidelines for implementing the development incentives, as provided for in the Unified Development Code (Section 17.17.070), for senior,very low and low income housing (for rent and/or purchase) in the City (Attachment 2). The Unit led Development Code (UDC) states that, In order to reduce development costs associated with the construction of projects qualifying under Government Code Section65915 (Attachment 3), the City may offer a developer various Incentives, depending upon the quality, size and scope of the proposed project. These incentives were established to Implement the goals and policies of the City's General Plan and the Comprehensive Housing Affordability Strategy (CHAS) which indicate that the City needs more affordable housing to meet the needs of Santa Clarita residents. In accordance with State law, the UDC allows for density bonuses of 25% (or greater if deemed appropriate) In excess of the midpoint density as established by the General Pian. (See Attachment 5 for an example.) The UDC also allows for discretionary approval of reduced setbacks (up to a 20% reduction), Increased height (up to 65 feet and five stories), and fee reductions or waivers. The attached policy would establish guidelines for the Implementation of these incentives. ANALYSIS The City Council requested that a policy be drafted for guidance on future opportunities to encourage private firms to develop affordable housing in the City. Staff believes that, optimally, the Cityshould offer both non -discretionary incentives (to encouragethe Initiation of such projects) and discretionary Incentives (to encourage quality developments). Staff proposes the following non -discretionary Incentives: 1) Reduce un -front costs. Waive development application fees collected by and for the City forverylow income and/or senior housing developments. This would Include environmental review tees but would not Include production fees for environmental Impact reports, studies or similar documents. (While many existing residential developments In the City would qualify as "low income," there are few "very low" Income and/or senior developments); Agenda Item: 2) Increase certainty of prolect viability. Provide the developer with a pre -application review of the project by .City staff. Although approval could not be given, the developer would have direction. based on established codes and guidelines, thereby reducing risk.and possibly reducing cost. Staff would also discuss the potential for City financial assistance; and 3) Decrease protect cost. Staff proposes to give priority case processing status to applications for affordable housing developments; assuring the developer that a public hearing will be held by the Planning Commission within 60 days of the City's determination that the application is complete. It is anticipated that a shorter processing time will further reduce cost to the developer, at no expense to the City. Staff proposes the following possible discretionary incentives which would be subject to Council approval: 1) Reduction or waiver of fees (such as park fees and plan check fees); 2) Approval of limited mixed-use zoning In conjunction with the proposed development where the Council determines that.the mixed use is compatible with the proposed affordable housing development, as well as the surrounding existing and planned. development. By requiring a Planned Development (PD) Overlay (which requires the approval of a conditional use permit) In conjunction with such a zone change, the City could ensure that the zone change would be used as approved by the Council (zone changes without the PD Overlay cannot be conditioned); 3) Approval of the use of Community Development Block Grant (CDBG) funds to subsidize eligible activities in support of the construction of affordable housing developments and to help people purchase existing homes. The City receives an annual allocation of approximately $500,000 In CDBG funds from the U.S. Department of Housing and Urban Development (HUD). These funds are currently used for programs such as fair housing services, the handyworker program and residential rehabilitation loans. While these programs require the majority of the City's CDBG allocation, the Council may wish to use funds that are In excess of those required for these programs for additional development incentives; 4) Financing or subsidizing affordable development through a City tax-exempt bond Issue; 5) Sale of City Proposition A money to other cities in exchange for money to be put Into an affordable housing fund. While the City has recently needed to purchase Prop A money from other cities to finance transit projects, a possible future surplus could be sold and the proceeds used for affordable development incentives; and 6) City staff Is currently working on a redevelopment program which, In accordance with State law, must set aside 20"/0 of the tax increment funds for the purpose of increasing or Improving affordable housing. The Council may wish to Increase this percentage. The Council would have the authority to determine if any, or some combination, of these incentives would be appropriate on a case by case basis. Considerations for eligibility for City assistance could Include quality, size, scope, and location (such as proximity to public transportation) of the. proposed project; additional consideration may be given to proposals by non-profit organizations. The Council may wish to require an economic profile for the proposal to determine If City assistance is necessary to make the development viable. Staff believes that it would be beneficial to have a number of possible Incentives, as their use would be limited by federal, state and local regulations and/or the availability of funds. In order to ensure the long term availability such developments, the developer would be required to provide a guarantee of such availability and affordability to the satisfaction of the City. Staff proposes that projects receiving only a density bonus be required to maintain their "affordable" status (as defined by the Unified Development Code and subject to the conditions of approval for the project) for a period of not less than 10 years and projects receiving additional Incentives be required to maintain their affordable status for a period of not less than 30 years. RECOMMENDATION Staff recommends that the Council; 1) Receive the staff presentation; 2) Consider the draft policy; and 3) Provide direction to staff. ATTACHMENTS 1) Draft City Council Affordable Housing Policy 2) Unified Development Code Section 17.17.070 (Density Bonuses) Ieau &WWftgJM* CITY OF SANTA CLARITA I POLICY/PROCEDURE NUMBER SUBJECT ORIGINAL ISSUE CURRENT ISSUE RCEDES I. PURPOSE EFFECTIVE EFFECTIVE STANDARD MANAGEMENT PROCEDURE The purpose of this policy is to Implement the City's General Plan and to establish guidelines for Implementing the development Incentives, as provided for In the Unified Development Code (Section 17.17.070), for senior, very low, and low Income housing in the City. Pursuant to the Unified Development Code, in order to reduce development costs associated with the construction of projects qualifying under Government Code Section 65915, the City may offer a developer various Incentives, depending upon the quality, size, scope and location of the proposed development. - _ 11. POLICY It Is the declared policy of the City Council that; A. Development application fees collected by and for the City (including environmental review fees, but not production fees for environmental impact reports, studies, or similar documents) shall be waived for very low income and/or senior housing developments; B. Affordable housing developments shall be .given priority processing status; C. The Council may, at Its sole discretion, approve limited mixed-use zoning . in conjunction with the affordable housing development; D. The Council may, at Its sole discretion, approve the use of Community Development Block Grant funds to finance or subsidize the construction of affordable housing developments and assist people in purchasing existing homes; E. The Council may, at its sole discretion, participate In bond financing for the affordable housing development; F. The Council may, at Its sole discretion, sell City Proposition A money to other cities -for general fund money to be put Into an affordable housing fund; G. When the City completes Its proposed redevelopment program, the Council will consider establishing a specific percentage of the Increment to be set aside (in excess of the 206/6 required to be set aside by California Redevelopment Law) for affordable housing development. A. Development application fees shall be waived at the time of application submittal. If the project Is found not to be in conformance with the City's requirements for affordable housing projects, case processing shall be suspended until the applicant: 1) modifies the project to bring it Into compliance with the City's affordable housing requirements, or 2) pays the originally waived application fee in full. B. Development applications for affordable housing projects shall be given priority processing status. A public hearing shall be held by the Planning Commission within sixty days of the City's determination that the application Is complete. C. In order to ensure the long-term availability of the affordable housing stock, the applicant/developer shall provide a guarantee of such availability and affordability to the satisfaction of the City. Projects receiving a density bonus only shall be required to maintain their"affordable" status (as defined bythe Unified Development Code and in compliance with the conditions of approval for the project) for a period of not less than ten years. Projects receiving incentives in addition to a density bonus shall be required to maintain their affordable_ status for a period of not less than thirty years. D. The Councll may approve mixed-use zoning in conjunction with affordable housing development if commercial, office, industrial, or other similar land uses, are determined to be compatible with the housing development, and existing or planned development in the vicinity of the proposed development. In the event that a zone change is approved In conjunction with the affordable housing project, the new zone shall be required to have a planned development (PD) overlay. E. The Council may approve the use of Community Development Block Grant (CDBG) funds to subsidize eligible activities In support of the construction of affordable housing projects and assist people In purchasing existing homes In compliance with federal regulations for the use of CDBG funds. IV. AUTHORITY Adopted by the City Council on Approved by: Jan Heidt, Mayor �ndAc"fdpoLkmw 17.17.070 DENSITY BONUS REQUIREMENTS A. Density bonuses for senior, very low and low income housing. Purpose. The density bonus provisions for senior, very'low, and low income housing are intended to facilitate the construction of senior, very low and low income housing for sale and rental housing units that will serve the current and long term City need while maintaining a high degree of quality in project design, construction, and environmental protection. These requirements are intended to work in conjunction with the applicable general and special development requirements of the residential zones and the provisions of the state planning law related to density bonuses while at the same time providing assurances to the City that units, developed by use of the incentives offered as part of this section, remain available and affordable to seniors, very low and low income individuals and families. 2. Applicability. In addition to the requirements of Section 17.03.060 (Development Review) of this Code, applicants requesting a density bonus, pursuant to Government Code Section 65915, shall be subject to the following: a. The development shall consist of five or more units in which at' least 20% of the total units are reserved for lower income households or at least 10% of the total units are reserved for very low income households or at least 50%a, of the total units are reserved for senior citizens. b. The plan shall show the intended use of the density bonus within the housing development or within the geographic area of the housing development. C. A written preliminary proposal shall be submitted, including a development incentive checklist, to determine the means for complying with this section. A preliminary proposal shall be submitted prior to any formal requests for general plan amendments, zoning amendments or subdivision map approvals. d. An independently prepared fiscal impact statement shall be submitted with the preliminary proposal examining the general effects of the proposed project to the City. The study shall include the potential specific fiscal impacts to the various funds of the City which may be affected by the particular development concessions being requested, such as general fund, property taxes, police and fire safety, park development fees, etc. The study shall also include the positive or negative fiscal and economic benefits to the City for granting one or more incentives. 2.107 DEVELOPMENT CODE City of Santa Clarita, California 11124192 17.17.070 DENSITY BONUS REQUIREMENTS (continued) 3. Conditions. Proposed projects must meet the following conditions in order to qualify for an affordable housing density bonus: a. The area infrastructure must be in place or be constructed as part of the project and capable of serving the proposed project including, but not limited to the following: (1) streets; (2) sidewalks; and (3) traffic and pedestrian signals. b. The project may not be located in an area designated as "hillside" by the City's Ridgeline Preservation and Hillside Development Ordinance. C. The site must be zoned RM, RMH or RH. d. The project site must be proximate to commercial establishments, serbice provideres, and other amenities, including, but not limited to the following: (1) grocery stores; (2) drug stores; (3) banks; (4) medical and dental facilities; (5) public transit (main or frequently used routes); and (6) open space/recreadonalfacilities. 4. Incentives for affordable housing. In order to reduce development costs associated with the construction of projects qualifying under Government Code Section 65915, the City may offer a developer some or all of the following incentives, depending upon the quality, size, and scope of the proposed project a. Reduction in required setbacks and/or height The City may grant a reduction in required setbacks of up to 20% and/or grant a maximum additional height of up to 65 feet and five stories. 2.108 DEVELOPMENT CODE City of Santa Clw*a, California 11/24/92 17.17.070 DENSITY BONUS REOUIREMENTS (continued) b. Dwelling unit density bonus. The City may grant a density bonus of 25% in excess of the midpoint. In areas where higher densities are appropriate and services are available, densities of up to 35 dwelling units per gross acre may be permitted. In the Valley Center area only, densities up to 50 dwelling units per gross acre may be permitted. C. Fee Waivers/Reductions. Projects submitted under this section may receive, depending upon the size, nature and scope, a reduction or waiver of some or all City imposed development submittal and processing fees. Such reductions of waivers may affect the following: (1) Development application fees; (2) Park fees; (3) Other fees. Development incentives granted by the City to a developer utilizing these requirements are predicated upon the long term availability of the affordable housing. In order to ensure that the units remain available and affordable, the developer will be required to enter into a development agreement with the City per California Government Code - Section 65864 through 65869.5. B. Amenities bonuses. 1. Purpose. Pursuant to this section, the City may grant a density bonus for projects where exceptional and overriding community benefits would be achieved from higher densities and/or floor area ratios ("FAR's"). 2. Applicability. The City may grant an inciease in the permitted density or FAR in excess of the mid -point. Such projects shall be subject to the approval of a conditional use permit. Bonuses may be granted based upon the finding that any proper combination of the following amenities are provided clearly in excess of those normally required to achieve mid -point density: a. Roadway dedication and/or improvements; b. On- or off-site mature landscaping; C. Open space; d. Recreational facilities; 2-109 DEVELOPMENT CODE City of Santa Cko*a, California 11/24192 DENSITY BONUS EXAMPLE A flat parcel of land of 9.1 acres, zoned RM (Residential Moderate, 6.7 to 15 dwelling units per acre) would normally yield 100 residential units at the midpoint density of 11 units per acre. With a density bonus of 25%, the yield would be 125 units (bonus = 25). To obtain this bonus, a conditional use permit would be required. The City Code also allows for an amenities bonus (up to the high end of the General Plan density range) for projects with additional clear and substantial benefits identified and accepted by the Planning Commission and/or City Council. Therefore, the combination of the two bonuses could conceivably raise the yield for the 9.1 acres to 161.5 units 1(9.1 x 15 = 136.5) + 25 (density bonus) = 161.51, or a cumulative bonus of 61.5%. State law establishes criteria for eligibility for affordable housing density bonuses; the project must reserve at least 20% of the units for low Income households, at least 10% for very low income households, or at least 50% for seniors to be eligible for the bonus. The bonus is based on the number of units typically allowed in that zone. (In the City's case, this means that the midpoint density is multiplied by 1.25). The City cannot make these criteria more strict, pursuant to State law. Therefore, in the above example only 10 units would need to be reserved for very low income households, or 20 for low Income households, or 50 for seniors, to qualify for the 25% bonus per state law. The following chart shows the bonus possiblitles for one acre of flat land In the multi -family residential zoning categories. General Plan RM RMH RH Designation General Plan Density 6.7.15 15.1-25 25.1 .32 Range In units/acre General Plan 11 20 28 Midpoint Density Midpoint density 13.75 25 35 with a 25% affordable housing bonus only Midpoint density 15 25 32 with the maximum amenities bonus only Midpoint density 17.75 30 39 with an affordable housing bonus and maximum amenities bonus Riot Relief Will Help Build Homes for Poor;:,; ■ Pacoima: The lumber industry's donationvill enable Habitat for Humanity to complete a condo project. �1/IL-� �� I/ I- L C Y By TRACEY KAPLAN in the 10900 block of Laurel Can- TIMES STAFF WRITER yon Boulevard. Los Angeles Mayor Tom Bradley cannot attend 4hat In the first major post -riot relief day, so he will participate in a for the San Fernando Valley, Re- second ceremony Feb. 27 honoring build, L.A. is channeling $70,000 the raising of the first wall of the y worth of supplies donated by the project, they said. lumber industry to help build eight The donation by six lumber com- m o Pacoima townhouses for poor fam- panies of beams, siding, insulationcal > ;lies, and wood chips for landscaping R The donation will enable Habitat was Put .together by two trade = d d for Humanity to complete its low- groups—the California Forestry CJ �. E income condominium project, Assn: and the California Forest — C m o O x which depends largely on volun. Products Commission. eo c = n a teer labor and gifts of building The groups plan to donate more in c I` ^o materials, Habitaexecutives said.g supplies to Rebuild L.A. not only to 7 0 is rn 1� "We're ecstatic," said Pete Bo- help revitalize the city, but to draw Z Z SCo N attention to what they believe is i s O E rn w ron, president of Habitat for Hu- over -regulation of the lumber in-, .� E � It m manicy of San Fernando/Santa dustry, a spokesman said. In the +. m < N m m Co Co Clarity Valleys, the local chapter of p years, 30 mills have :fl u. x ¢ a nonprofit international group past three P 8 P closed, resulting in the loss of 8,500 q m m° w o" c whose most famous volunteer is jobs, he said. " to In o w o t former President Jimmy Carter. "If you want to rebuild I.A. Z o a a 0. o_ Rebuild L.A. officials said literally, not spiritually or emo.' Thursday that Gov. Pete . Wilson tionally, you need affordable Ium$, has agreed to drive the first nail her, and you won't get that if you into the donated wood during a keep over -regulating us," said formal ceremony Feb. 23 at the site Please see LUMBER, B5 LUMBER: Donations to Be Used for Homes Continued from B3 Donn Kea, a spokesman for the California Forestry Assn. The condominium project is be- ing financed by the Los Angeles .City Council, which loaned $312,000 to Habitat for Humanity last May. The units will be sold to poor families willing to put 500 hours of work—"sweat equity"— into the project, including 150 hours on another family's unit. The units will sell for between $50,000 and $62,500, depending on their size, and the eight buyers will be given zero -interest loans for 20 ;years, Boron said The lumber contribution marks ,the first time since the spring riots that the -Valley has significantly benefited from the rebuilding ef- fort. Previously, Rebuild L.A. gave .two local organizations two nine - passenger vans on loan from Gen eral Motors, its only contribution to the Valley. Fearing that the Valley would be ignored, a coalition of 60 local groups banded together in May to form the San Fernando Valley ..Unity Coalition to press for dona- tions. The coalition recognizes that most of the rlot damage occurred in South Los Angeles, members have said, and that only about 63 Valley buildings were set afire or vandal- ized, compared to hundreds else- where. But they say the Valley deserves attention because, contrary to its image as a homogenous suburban enclave, it has problems of poverty and disaffection they said contrib, uted to the rioting, The donation to Habitat for Hu- .manity is "a good beginning, but the Valley still needs resources;.' said Irene Tovar, a Mission Hills resident and the only one of80 .memberson the Rebuild L.A. board representing the Valley. Tovar, a candidate for the 7th District of the Los Angeles City Council representing the north- eastern portion of the vaney, was' responsible for telling Rebuild L.A. officials about the need for. the lumber in the Valley, . said Tony Salazar, co-chairman of . Rebuild L.A. . "We've never ignored the Val- ley, and this is clear evidence of that," Salazar said. . . But Benjamin M. Reznik, chair. man of. the Valley'Industry and Commerce Assn., said Tovar's role ,in securing the donation demon- strates the need for more Valley representation on the Rebuild L.A. board "But for Irene, the . Valley wouldn't have gotten the supplies," Reznik said. The companies that donated the supplies are Georgia-Pacific Corp., Collins Pine Co., Pacific Lumber Co., Sierra Pacific Industries, P & M Cedar Products and Louisiana-Pa- cific Corp.