Loading...
HomeMy WebLinkAbout2008-03-24 Ordinance 5000ORDINANCE NO. 5000 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING CHAPTER 18.14 ("BELOW MARKET RATE HOUSING PROGRAM") TO TITLE 18 ("ZONING") OF PALO ALTO MUNICIPAL CODE The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 18.14 ("Below Market Rate Housing Program") of Title 18 ("Zoning") of the Palo Alto Municipal Code is hereby added to read as follows: "18.14 Below Market Rate Housing Program 18.14.010 Findings (a) Rental and owner-occupied housing in the City has become steadily more expensive. Housing costs have gone up faster than incomes for many groups in the community. (b) Many persons who work in the City, who have grown up or have family ties in the City, who already live in the City but may be forced to move due to the cost of housing, or who wish to live in the City for other reasons, cannot afford housing in the City. (c) Federal and state government programs do not provide nearly enough affordable housing or subsidies to satisfy the housing needs of moderate, low or very low income households. (d) Rising land prices have been a key factor in preventing development of new affordable housing. New housing construction in the City which does not include affordable units aggravates the existing shortage of affordable housing by absorbing the supply of available residential land. This reduces the supply of land for affordable housing and increases the price of remaining residential land. At the same time new housing contributes tg_the demand for gQods ____ _ and services in theCify:increasing 10carserVice employment at wage levels which often ao not--- permit employees to afford housing in the City. Providing the affordable units required by this article will help to insure that part of the City's remaining developable land is used to provide affordable housing. (e) The City wishes to retain an economically balanced community, with housing available to very low income, low income and moderate income households. The City's Comprehensive Plan implements the established policy of the State of California that each community should foster an adequate supply of housing for persons at all economic levels. (f) An economically balanced community is only possible if part of the new housing built in the City is affordable to households with limited incomes. Requiring builders of new housing to include some housing affordable to households at a range of incomes is fair, not only because new development without affordable units contributes to the shortage of affordable housing but also because zoning and other ordinances concerning new housing in the City should 1 080401 syn 0120278 be consistent with the community's goal to foster an adequate supply of housing for persons at all economic levels. (g) In general, the provision of affordable units within each housing development serves the goal of creating an economically balanced community. Payment of in-lieu fees or construction of required units off-site may be appropriate in some cases at the discretion of the City, but should be allowed only where a project sponsor demonstrates satisfaction of the criteria set forth in this article. 18.14.020 Purpose The purpose of this Chapter is to: (a) Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the City as mandated by State Law, California Government Code Sections 65580 and the Palo Alto Comprehensive Plan. (b) Promote the City'S goal to add affordable housing units to the City's housing,~ ___ _ stock in proportion to the overall increase in new jobs and housing units. (c) Offset the demand on housing that is created by new development. (d) Mitigate environmental and other impacts that accompany new residential and commercial development by protecting the economic diversity of the City'S housing stock, with the goal of reducing traffic, transit and related air quality impacts, promoting jobslhousing balance and reducing the demands placed on transportation infrastructure in the region. (e) To increase the supply of for-sale and rental housing for families and individuals employed in Palo Alto whose incomes are insufficient to afford market rate housing. Since the current historical rate of production of affordable housing in the City is very low, the BMR program is essential to meet the City's need for affordable housing. 18.14.030 Below Market Rate Housing Program Requirements .......... (a) Developers of projects witlifive or more units must complyWitlithe ~ .~~-~~~--- requirements set forth in Program H-36 of the City of Palo Alto Comprehensive Plan. The BMR Program objective is to obtain actual housing units or buildable parcels within each development rather than off-site units or in-lieu payments. (b) If the City determines that on-site BMR units are not feasible, off-site units acceptable to the City, or vacant land determined to be suitable for affordable housing construction, may be provided instead. Off-site units should normally be new units, but the City may accept rehabilitated existing units when significant improvement in the City's housing stock is demonstrated. (c) If the City determines that no other alternative is feasible, a cash payment to the City's Housing Development Fund, in lieu of providing BMR units or land, may be accepted. The in-lieu payment for projects subject to the basic 15 percent BMR requirement shall be 7.5 percent of the greater of the actual sales price or fair market value of each unit. 2 080401 syn 0120278 18.14.040 BMR Program Administration (a) The city manager shall adopt rules and regulations not inconsistent with the provisions of this chapter for the purpose of carrying out the administration of the BMR Program and preventing abuse of the BMR Program by those capable of affording market rate housing. Such rules and regulations shall address, but not be limited to, program eligibility requirements, preferences for housing applicants currently living or working in the City of Palo Alto, minimum occupancy limits, waiting list procedures, buyer selection procedures, methodology for the calculation of initial sales prices for ownership units and initial rents for rental BMR units, resale restrictions and reasonable accommodations for applicants with medically verifiable disabilities. A copy of such policies, rules and regulations shall be on file and available for public examination in the office ofthe city clerk. (b) Failure or refusal to comply with any such rules, regulations or agreements promulgated under this section shall be deemed a violation of this chapter. SECTION 2. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: March 10, 2008 PASSED: March 24, 2008 AYES: BARTON, DREKMEIER, ESPINOSA, KISHIMOTO, KLEIN, MORTON, SCHMID, YEH NOES: ABSENT: BURT ABSTENTIONS: Mayor APPROVED AS TO FORM: ~~ ----------- anning and Community Environment 3 080401 syn 0120278