HomeMy WebLinkAboutORD 3560.. . • • ORIGINAL· .
ORDINANCE NO. 3560
ORDINANCE OF THS COUNCIL OF THE CITY OF J?ALO ALTO
MENDING 'ftJB PALO ALTO MUNICIPAL CODE BY ADDING
CHAPTER 16. 4 7 REGARDING APPROVAL. OF PROJECTS WITH
IMPACTS ON HOUSING
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WHEREAS, the increased costs and scarcity of housing in Palo ~~~1~~-< ·
have been caused in large part by the fact that expanded job opportuni~ .·.. :;, ·
ti..as have been increa~ing faster than the supply of housing: from 1970 ,.11
to 1980 ?alo A.lto's housing stock increased by 1120 housing units while
the number 0f jobs increased by 15,000; and
WHEREAS, housing pr-ices have escalatea at an exceptionally high
rate in Palo Alto: from 1970 to 1980, median tiome values increased
3'39\ from $33,900 to ~148,900 and th€ average home price of $161,000 in
l~~v was the third highest nationwide for cities over 50,000~ a,d
WHgREAS, rental housing continues to be scarce anc has become more
expensive: tho vacancy rate far rental housing has not exceeded 1.2%
since 19''6 and fro• 1970 to 1980 m.ed ian rental rates increased 115% ~
and
WHgR€AS, th(:! jobs/housing intbalance can be expected to continue,
and perhaps worsen; h 1919 Santa Clara County foreclst estimated that
about 125,000 new jobs will be created in northern Santa Clara County
between 1975 and 1990, wbi.le 19,000 housing units ~ill be built1 :Pal().
Alto's c:otaprehensive Plan projects an inc~ease . from 1980 to 1S90 ··of
8300 jobs and 2300 b~using units; and
WKEr..EAS, the lack of &ff~rdabl1l housing· in Palo Alto forces ·JaelnY ·::•
. new eaployees to ~ta · cot1siderable. dist~p<:cs, adding to the' afr.
pollution and traffic congestion in Palo· A~.tQ 'and adjacent COJlUiluri:iti~$~:
and · ·/ ·. ' · ··
WQRBAS, the Housing Ble-~lt oe ,,th,$,.:-~reben$ive Plar\ iuc:l_\ldes all
?.t:s objaet:~ves (1) to ~~ ... ao~Mt· .of tbe ':<Je.a·nd .caused·· by. tn~· ,jo~~.;.t)o~~:..:,
ing iabalance, (2) t.o .. aaJ:n.t,ain the di·~ersity. of. hou$ing QPJ?.qrbJnitj.e·a. ·
and ( 3) to increase the t-.£~ing supply .especially_ fot' ! ini:i{V'i~uals iaJ\d
faai liGS who earn lOW aDd .-oderate . incoaes and for thos.e' wbu work 'Jil
Palo Altor and
Wtiil.~~ · approxiwatel:r
aoderate inca.ea, and tbese
lack of affordable t.;>usingJ
3lt of ~1 ne"' ~loy•s w1;L1 .· eal"n. 'low;· ~h~:
eillployaes· are JIIO$t severely. bq)acted, byi:th~· ... '· · and · -· · -' . -. : -.... :: .,
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WHEREAS, large co-ercial ~-d ir.dustrial develo~e.,its t~at ,conb;f~<i: •
butu to the jobe/hous ing iab . .alance ~nd tl•e ooncor.ti tant ·. lncreas,;i:r.g·,
shortage of low-and ~erate-incaae hol!&ing should be .. required ·:a~ ':a· ·· ·
condition of ·the privi.lege of developaent. to assist ~he colllDlunity in
solving .tbe housing proble•~ and ·
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WHSREAS, su..:h large co.aercial and industrial developa1ents hav& ·
been contributing to low-and WJOderut~-incoae housing pursuant to a •
proqrasa of the Housing Eleaent of the Con~prehensive Pl:>:n and the City
wishes to set forth the requlations concerning this contribution in an
ordinance,
NOW, nt£REFORE, the Council of the City of Palo Alto does ORDA;IH' .•·
as follows:
St:CTION 1. Chapter 16.47 is hereby added to the Palo Alto Munici.-'
p~ 1 Coae to read as follows:
Chapter 16.47
APPROVAL OF ~ROJECTS WITH IMPACTS ~ ROUSING
Sections:
16.47.010
16.47.020
16.47.030
16.47.040
lb.47.USO
Declaration of goal and purp~se.
.A.pplr ~.c;,bility.
t:xelli>tions.
Housing requirement.
Severability
16.47 eOlO. Declaration of goal and purpose., The goal and pur
pose of this chapter is to lessen the shortage of low-and moderate
incom~ housing in Palo Alto by requiring developers of lar.ge commercial
and industr.ial tJroje-cts, as a condition of using 1-:md for the privilege
of developMent, to contribute to programs that increase the City's low
ar.d &Oderate-incoae housir.q stock.
16.47.020 Appllcabillty. This uhapter shall apply to the
fo.llowinq dev&lopaent.s, except those ox.enapt under Section 16.47o030:
(a) any new gro&'l square foota9e of 2,500 gross square feet .Pr
greater on A !i~ite Oi'a<:e che qrosa square footage of non-exeiupt uses o~f'::·<{:··:
site has reached 20,000 gross aquare feet. · i
(b) any qross square footage of 2,500 gross ~qt•~;;.e · feet 6x•i
greCiter on ~ site that is converted fro. an exeapt use to a non-exe•pt
. use once the gross square footage of non-exe.apt uses on a site tutf:l :. ·
reached 20,000 gross square feet. '·'
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(c) any new gross square footage in a development, ·.or gross'
square foota<Je that is converted fro. an exeapt use to a ~n-exempt, ··
use, if such develop.ent re110ves frota the City's housing etock two or, ...
~ore legal dwelling units that· have l~st. been used for. housing.
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(d) new gross square footage that. repla;:es n,on-exeapt uges shall
not be considered yross square footage for the purposes of this otdi~
nance. •aeplaces• shall 11ean that the new gross square footage re-
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ceives desi~Jn approval pursuant t:.o Chapter 16 .. 48 within one (1) year of.
the previous non-exempt uses beh~g deMOlished.
16.47.030. Bze.ptiona. The following uses, as ~tined in Title
18 of the Palo Alto Municipal Code, are exeMPt fro. this chapter:
(a) Residential uses.
(b) Churches.
(c~ Colleges and universities.
(d) Commercial recreation.
(e) Hospitals and convalescent facilities.
(f) Private clubs, lodges, and fraternal organizations.
(g} Private ~ducational facilities.
(h) Public facilities.
16.(7.04Q Bouaing require .. nt. (a) Deve!.opm.ents must provid.a
the number of low-and moderate-income housing units de;;;e.~mine~ by the
formula set forth below or provide an in~l iev f:1e as set forth in
Section 16.47.040{d) below:
Gross S1uare Feet so X .017 ~ Number of units
required
(b) This for~ula is based on tr.e reasonable approxi>aation of the
iuuount of housing necessary to ~tis.fy 10\ of t.he de•and for low tQ
moderate incoaae housing based on the average r,ullber of low to moderate
income eaployees generat-ed per average household by the average coa
mercial and industrial developaent.
(c) aousin9 units .. v ~sold or rented to lo.,-. and AlOClet;ate...;;,.(:·
income buyers pu~;suant to the City'R Below Ma~ket Rat~ (BMR) Progr:aa·:.':;:
and 11tay be provided either on. th& site of. the proposed develop~~ent Or.
off-site. lf. the unit is provided oo sit·~, its design and loea~jon ..
sha~l be i'<l~t of the architectural review application of the entlre
proposed d-evelopment. If the unit is off-site, the director of-plan~_.,.
ning and co .. unity environaent a~st approve the size, condition, ~rtd.
location of the units. ·
( 1) A housinq unit if sold, shall be aold to the City, oE-:
City.• s designe<:~, at the cost of construct ion and financing,. excluding
land costs ar.d pt"of it, provided that the cost shall no~· be greater. than ,.
that affordable to buyers under th~ current Incot.e Liaits for the• Palo
Alto Below Mar,-~et Rate Program, publis-hed yearly 0y t.he department of
planning and ooMBunity environaent and an file with the city clerk.
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(2) A housing unit, if rented, shall be rented for a •ini.ua
of fifty-nine years subject to Palo Alto's aelov Market Rate Reutal
Program, c:: for a le~ser period provided that it is sold in accordance
with section (1) above.
( 3) A Below Market Rate Agree.-ent shall b~ ·entered into
between .the City and the developer at the tiae of design approval of
the developnlent pursuant to Chapter l6 • .t8.
(d) If housing units are not to be provided, the developer shall
make an in-lieu payment to the City's Special Housing Fund of SSO,OUO
per r.e.;ui red unit as a reasonable approximation of the cost of con
structing an average below market r-1te unit. This sum is the equiva
lent of $2.43 per square foot of proposed development. Th3 SSO,OOO per
unit shall be adjusted annually from the date of approvai of this ordi
nance by the percentage changes in the Consume.r Price Index, all Urban
Cone.umers Inctex, for the San Franc isco-oaY..land area and consequently
the $2.43 per s4uare foot may fluctuate.
(e) Half of the in-lieu paymen~ must be paid within ten (10)
calendar days of the developer's receiving the first c;rading or build
ing permit for a project or the permit shaL~ l>e null and void. The
remainder of the payment must be made befot·e the developer receives a
use and OC¢upancy parmi t for the project. For a phased ?reject, pay
ments may be rna~~ for each portion of a phased project within ten (10)
calendar days of the first grading or building permit fo.r tha~ phase
and as t.he cet·t if icate of use and ·'lC\::l.lr>ancy for til<l t phase is applied
for.
· (f) If th~ f0rmula as applied to a proposed developa~ent results·
in a fraction of a unit, the developer shall provide tor the frac~:ion
of a unit either a whol·e unit or a rrorated in-lieu payment • based on
the above formula.
(g) At the time of a d..:.:veloper • s app.J.lcation fo~. c:archltectural.
review. pursuant to Ch~pter 16.48, or, if no architectural review is.
necessary, at the· time of an application for a certificate of use and
occupancy, the develope.-; aust notify the director of planning anc! ~·
muni ty environment whether unit.s or: .tm in-lieu paywaent will be provided •
to the City. The. housing require.Ont shall t:'l~n be olaced as .~ oondi~.
tion on the director • s approval of the project pursuant to Chapter·
16.48 or as a condition on the issuancu ~f a use and occupancy penait.
by the Division of Inspectional Se~vices.
(h) Exception for tdxed use develo~nts. In a aixed hou~lng and~
commercial or industrial development, the developer's housing require-,
ment purs,uant to this chapter anct the de•!eloper' s below-.arket-rate .·
hOU!Jing requirement pursu.,~~ to Program 10 of the ttousing E,'.'s.ent of
the Compreh~nsive Plan bOc.~ ~.'lOl':d be calculated.. The developer shall
be required to meet only ;,.:.~ .:arqer of the tvo requireaents.
16.47.050 Severabl..:.if":;.. If
chapter or the application theraof
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any ~rovtston or clause of this
to any person or circuftlstance is
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held to be unconstitutional or to be otnerw.ise invalid by any court of
competent jurisdiction, such invalidity .CJhall not affect other chapter ,.
provisions, and clauses of this chapter are declared to be severable. ·
SECTION 2. The Council ·finds that none of the provisions of 'this
ordinance will have a significant environ.ental iapact.
SECTION 3. This co~dinance shall becoae effective upon the ~·
mencement of the thirty-first day after the day of its passage.
INTRODUCED: ~u1y 23, 1984
PASSED: August 6, 1984
AYES: B2chtel, Cobb~ Fletcher, Klein, Le't'y, Renzel, S1.1tc.r;us.
Witherspoon, Woolley
NOES: None
ABSTENTIONS: Nora
ABSEN'l.': No r.e
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801 1201 (1. t PIICE RAIIG£ lOT IWISE I:'AMILY SIZE MEDl.'N NED IAN IM.Tfi'[I'.RJ ~
1 $20,6!;0 $31,000 $ 39,250 to $ SS,SCv $ 516 to s 775
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2 t3,600 35,.450 44,850 to 67,35() 590 to 186
3 2fi~550 39,850 50,450 to 75.100 • 664 tel· "'
4 29,52v· 44,300 56,100 to 84,150 731 to 11}108
5 31,350 47,050 59,550 to 89,400 714 to 1,176
6 33,200 49.850 63,100 to 94,700 830 to 1,246
7 35,050 52,600 6611600 to "·'50 876 tc 1,315
8 •• 900. s~ 400· ' .. ··,
. 10~100 • 105 250 . . 123 ·to 1•385
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