Ord 595
ORDINANCE NO. 595
AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA,
AMENDING PORTIONS OF CHAPTER 17.26 OF THE POWAY MUNICIPAL CODE
REGARDING INCLUSIONARY HOUSING REQUIREMENTS
WHEREAS, the City's Inclusionary Housing Ordinance codified as Poway Municipal
Code Chapter 17.26 was adopted in 1993 and requires amendment to incorporate
technical changes in State law since adoption and to be consistent with underwriting
standards used by both private and public lenders; and
WHEREAS, it is necessary and desirable to amend Chapter 17.26 to allow
inclusionary housing in-lieu funds to be spent for land acquisition or development of
moderate-income housing in addition to low- and very low-income housing presently
authorized by Chapter 17.26; and
WHEREAS, in order to assist the City in meeting its proportionality requirements
under AB 637 (2001) the deed restriction term for inclusionary housing should be
expanded from a minimum of thirty years to a minimum of forty-five years for ownership
housing and fifty-five years for rental housing; and
WHEREAS, the General Plan, and the Housing Element in particular, require that
Inclusionary Housing Funds be used to develop affordable housing and identify specific
programs for very low- and low-income housing, without precluding the use of
inclusionary housing funds for moderate-income housing. Affordable housing includes
housing affordable to very low-income households, low-income households, and
moderate- income households, and amendment of Chapter 17.26 to expressly authorize
the use of inclusionary housing funds for moderate-income housing is consistent both
with State law and the General Plan.
NOW, THEREFORE, the City Council of the City of Poway does ordain as follows:
Section 1: The City Council finds that the adoption of this Ordinance is exempt
from the requirements of the California Environmental Quality Act (CEQA) pursuant to
CEQA Guidelines Section 15061 (b)(3) because it entails a change in the City's
Inclusionary Housing Requirements to allow the use of these funds for moderate income
buyers and other minor amendments and there is no possibility this will have a significant
effect on the environment.
Section 2: Sections 17.26.100 through 17.26.200, inclusive, and Section
17.26.300. D of the Poway Municipal Code are amended to read, in their entirety, as
follows:
Ordinance No. 595
Page 2
17.26.100 Definitions.
"Affordable to moderate-income households" means: average monthly housing
payments, during the first calendar year of a household's occupancy, including property
taxes, homeowners insurance and homeowners association dues, if any, which are equal
to or less than one-twelfth (1/12) of thirty-five percent (35%) of one hundred-ten percent
(110%) of area median income, adjusted for family size. Affordable housing cost shall be
set based on presumed occupancy levels of one person in a studio unit, 1.5 persons in a
one (1) bedroom unit, three (3) persons in a two bedroom unit and a 1.5 additional
persons for each additional bedroom thereafter. Down payment shall be based on five
percent of the affordable housing price.
"Affordable to low-income households" means: average monthly housing payments,
during the first calendar year of a household's occupancy, including property taxes,
homeowners insurance and homeowners association dues, if any, which are equal to or
less than one-twelfth (1/12) of thirty percent (30%) of eighty percent (80%) of area
median income, adjusted for family size. Affordable housing cost shall be set based on
presumed occupancy levels of one person in a studio apartment, 1.5 persons in a one (1)
bedroom unit, three (3) persons in a two bedroom unit and 1.5 additional persons for
each additional bedroom thereafter. Down payment shall be based on five percent (5%)
of the affordable housing price.
"Affordable to very low-income households" means: monthly rent, including utility
allowances as published from time to time by the San Diego County Housing Authority
and all fees for housing services, equal to or less than one-twelfth (1/12) of thirty percent
(30%) of fifty percent (50%) of area median income, adjusted for family size. Affordable
rent shall be based on presumed occupancy levels of one person in a studio apartment,
1.5 persons in a one (1) bedroom unit, three (3) persons in a two (2) bedroom unit, and
1.5 additional persons for each additional bedroom thereafter.
"Construction cost index" means the Engineering News Record Building Cost Index.
If that index ceases to exist, the City Manager shall substitute another construction cost
index, which in his or her judgment is as nearly equivalent to the original index as
possible.
"Deed restriction" means an attachment to the grant deed to an affordable unit,
which purpose is to assure continuing affordability of the unit over time. The term of the
deed restriction shall not be less than forty-five years for ownership units and fifty-five
years for rental units.
"In-lieu fee" means a fee paid as an alternative to the provision of inclusionary units
for new ownership residential development.
"Median income" means the median household income as established by the
Department of Housing and Urban Development for the San Diego Standard
Metropolitan Area.
Ordinance No. 595
Page 3
17.26.200 Inclusionarv Requirements.
A. Affordable Housing Set Aside.
1. New rental residential development shall provide that fifteen percent
(15%) of the units created shall be affordable to very-low-income households and the
continued affordability shall be guaranteed by recorded deed restriction providing such
set aside. Said deed restriction shall not be less than fifty-five years. Such a
development project, which does not so provide shall be denied as inconsistent with the
Housing Element of the General Plan.
2. New ownership residential development shall provide that fifteen percent
(15%) of the units created shall be affordable to low-income households or twenty
percent (20%) of the units created shall be affordable to moderate-income households
and the continued affordability shall be guaranteed by recorded deed restriction providing
such set aside. Said deed restriction shall be not less than forty-five years. Such a
development project, which does not so provide shall be denied as inconsistent with the
Housing Element of the General Plan.
3. Inclusionary units may be provided either on-site or at a different location
within the City of Poway.
4. Inclusionary units should be reasonably disbursed throughout the
development, should contain on the average the same number of bedrooms as the
market-rate units in the development, and should be compatible with the design and use
of remaining units in terms of appearance, materials and finish quality. The applicant
shall have the option of reducing the interior amenity levels and square footage of
inclusionary units, provided all units conform to the requirements of the City Building and
Housing Codes.
B. Development Incentives.
1. Any development that includes inclusionary units shall be entitled to a
density bonus at least equal to the percentage of inclusionary units, to the density bonus
mandated by State density bonus law, or other development incentives of equivalent
financial value if the density bonus is infeasible.
2. Developers may seek to utilize any available federal and state subsidies
in tandem with inclusionary units. The City shall provide assistance to developers to
obtain such subsidies.
3. The City shall exercise its discretionary power with regard to zoning,
planning and subdivision requirements related to minimum lot size, floor areas, parking,
open space requirements, streets, sidewalks, the provision of other public improvements,
and permit fees in such a manner as to facilitate the economic feasibility of housing
projects with inclusionary units.
Ordinance No. 595
Page 4
17.26.300. Subsection D - In-Lieu Fees
D. Any payment made pursuant to this section shall be deposited in a Reserve
Account in the General Fund to be used only for the development or acquisition of very
low-, low-, and moderate-income housing.
EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days
after the date of its passage; and before the expiration of fifteen (15) days after its
passage, it shall be published once with the names and members voting for and against
the same in the Powav News Chieftain, a newspaper of general circulation published in
the City of Poway.
Introduced and first read at a regular meeting of the City Council of the City of
Poway held this 2nd day of December, 2003, and thereafter PASSED and ADOPTED at a
regular meeting of said City Council held the 16th day of December, 2003, by the
following roll call votes.
AYES: EMERY, GOLDBY, REXFORD, CAFAGNA
NOES: NONE
ABSTAIN: NONE
ABSENT: HIGGINSON
ATTEST:
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Lori nne Peoples, City Clerk