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CITY COUNCIL AGENDA ITEM NO. 15



Meeting Date: January 9, 2007

Subject/Title: Consideration of an Ordinance of the City of Brentwood amending in part Chapter 17.725 of the City of Brentwood Municipal Code and Ordinance No. 790 relating to the City’s Affordable Housing Program

Prepared by: Ellen Bonneville, Housing Manager

Submitted by: Howard Sword, Community Development Director



RECOMMENDATION
Approve an Ordinance of the City of Brentwood amending in part Chapter 17.725 of the City of Brentwood Municipal Code and Ordinance No. 790 relating to the City’s Affordable Housing Program.

PREVIOUS ACTION
Ordinance 756 establishing the Affordable Housing Program was adopted by the City Council on September 9, 2003 as recommended by the Planning Commission.

Ordinance 790 amending Chapter 17.725 of the City of Brentwood Municipal Code pertaining to the Affordable Housing Program was adopted by the City Council on December 14, 2004.

Ordinance 790 became effective on January 11, 2005.

The Housing Subcommittee reviewed the proposed amendments to Ordinance 790 and authorized staff to proceed with the necessary Public Hearings at its meeting of October 5, 2006.

On November 21, 2006 the City of Brentwood Planning Commission approved Resolution No. 06-117 recommending that the City Council of the City of Brentwood amend Chapter 17.725 of the City of Brentwood Municipal Code and Ordinance 790 relating to the City’s Affordable Housing Program.

BACKGROUND
The City approved the Affordable Housing Program in 2003 with a major amendment to the Ordinance in 2005. Since that time the Housing Division has implemented the current Ordinance 790 which requires that all new subdivisions with 4 or more lots be subject to a ten percent (10%) inclusionary requirement. The inclusionary requirement is distributed such that 3% of the units are made available to very-low income households, 4% of the units made available to low income households and 3% of the units are made available to moderate income households. The Ordinance provides developers flexibility in the way that they meet this requirement--such as payment of in-lieu fees, contributions to the First Time Homebuyer Program, land dedication, purchase of existing homes and other alternative equivalencies.

When the Affordable Housing Ordinance was originally adopted it was clear to the City Council that this was a “living” document which would need to be amended from time to time. As staff was hired and began to implement the original Ordinance adopted in 2003, it became apparent that there were amendments that were necessary to facilitate the intent of the Ordinance and to also accommodate a changing residential market climate, which amendments were made in 2005. The current amendments being presented for consideration are more “clean-up” in nature rather than substantive policy revisions as was the case for the amendment in 2005.

As staff has negotiated with developers of small lot subdivisions it became clear to the City Council that the Ordinance needs to be more specific as to the time frame for the payment of the required in-lieu fee and that the Ordinance should be revised to mirror the Subdivision Map Act by exempting small developments of 4 lots or less. Also, in Ordinance 790 it was unclear as to when in-lieu fees shall be paid by developers creating a custom lot subdivision. Therefore, the proposed amendments to Ordinance 790 include the revision that the affordable housing requirement only applies to subdivisions that consist of five or more lots rather than four or more lots and that the in-lieu fee shall be paid prior to the recordation of the final map for custom lot developments.

With the downturn in the housing market, staff determined that the Ordinance needs to provide more flexibility in providing administrative dollars to fund the Housing Division so that there will be no impact to the City’s General Fund. Annually as part of the Housing Division’s budget process, an accurate attempt is made at determining which developers with an approved final map will apply for a production building permit. Because the Housing Division’s source of revenues are directed linked to in-lieu fees made during the fiscal year, the projected revenue or in-lieu fees are based on the developers schedule. Therefore, an amendment to the Ordinance will provide the Finance Director and City Council more flexibility in providing the dollars to fund the Housing Division. Rather than restricting the administrative funding to twenty percent (20%) of the in-lieu fees collected during the fiscal year, the amendment will allow the Finance Director to recommend funding of the Housing Division through utilizing any of the funds that comprise the Housing Enterprise. These funds may include a percentage of the funds collected through in-lieu fees, a percentage of the funds collected through the rental stream from city rentals, a percentage of the funds collected for the First Time Homebuyer Fund, etc. The amendment also creates a separate First Time Homebuyer Fund so that the dollars collected through developer agreements flow into their own distinct fund and can be more readily identified and tracked.

The City Council has voiced concern over the maintenance and landscaping of the affordable units that are sold to private individuals. In order to insure that the yards are landscaped, the Ordinance will now require the developer to install front, side and rear yard landscaping for all affordable units constructed “for sale” as part of the program--not just the rental units dedicated to the City. This way, the affordable units will truly blend in with the remainder of the respective development.

The other proposed amendments to the Ordinance include: requiring the approval of the Affordable Housing Agreement prior to the approval of the final map or the issuance of the first building permit and requiring that the builder obtain the building permit for the final affordable unit prior to obtaining building permits for the last ten percent (10%) of the market rate unit. These practices are currently being utilized by the staff, so this proposed amendment will codify these current practices.

On November 21, 2006 the City of Brentwood Planning Commission conducted a noticed public hearing on the proposed ordinance amendments and the outcome of that public hearing was that the Planning Commission voted in favor of recommending that the City Council adopt the proposed ordinance.


FISCAL IMPACT
The proposed changes will allow for the ability, with City Council approval, to utilize more than twenty percent of the in lieu fees as well as a portion of the funds received from the rental stream and first time homebuyers to fund the Housing Division’s administrative costs. This will provide flexibility should projected revenues not come to fruition to fund the approved administrative budget. The amendment will also create a new “First Time Homebuyer” fund.





Attachments
Redlined version of showing changes to Chapter 17.725
Ordinance



CHAPTER 17.725 AFFORDABLE HOUSING

17.725.001 TITLE AND PURPOSE OF PROVISIONS
17.725.002 DEFINITIONS
17.725.003 GENERAL REQUIREMENTS
17.725.004 ALTERNATIVE EQUIVALENT PROPOSAL
17.725.005 IMPLEMENTATION PROCEDURES
17.725.006 AFFORDABLE UNIT CONCESSIONS AND CONSTRUCTION INCENTIVES
17.725.007 AFFORDABLE HOUSING TRUST FUND
17.725.008 BRENTWOOD RENTAL HOUSING TRUST FUND
17.725.009 ENFORCEMENT
17.725.010 APPEAL

17.725.001 TITLE AND PURPOSE OF PROVISIONS.

A. Title. The provisions of Chapter 17.725 shall be known as the “Affordable Housing Program” of this title.

B. Purpose. The purpose of this Affordable Housing Program is to:

1. Enhance the public welfare and assure that further housing development contributes to the attainment of the City’s housing goals as described in the Housing Element of the General Plan, by creating, preserving, maintaining, and protecting housing affordable for households of very low, low, and moderate income.

2. Assure that the remaining developable land in the City’s Planning Area is utilized in a manner consistent with the City’s housing policies and needs.

17.725.002 DEFINITIONS.

As used in this Chapter, each of the following terms shall be defined as follows:

A. Affordable Housing Agreement is a recorded agreement between the City and a residential developer setting forth the residential developer's compliance with the requirements of this Chapter.

B. Affordable Housing Cost is the cost defined in the California Health and Safety Code for owner-occupied and tenant-occupied units. The Housing Manager, on or about July 1 of each calendar year shall publish the maximum Affordable Housing Costs for sales prices and rents as calculated in accordance with the applicable provisions of the California Health and Safety Code.

C. Affordable Unit means an ownership or rental-housing unit, including senior housing, occupied by and available to households of very low, low and moderate incomes at an Affordable Housing Cost, adjusted for household size as defined in this Chapter, with deed restrictions as defined in this Chapter in favor of the City.

D. Custom Home Development means any Residential Development being subdivided by one party and sold as individual lots or parcels to separate owners for construction and development of Dwelling Units.

E. Dwelling Unit means a dwelling designed and intended for occupancy by one household.

F. First Time Homebuyer means a household which has not owned its principal place of residence within the last three years.

G. Household Size means the number of persons residing at least during 50% of a calendar year within a Dwelling Unit. For the purposes of this Chapter, appropriately sized Affordable Units for a given household size are as follows, or as may be amended by the California Health and Safety Code:

Persons 1 2 3 4 5 6 or more
Unit Size Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom

H. In-Lieu Fee means a fee paid to the City by an applicant in-lieu of providing the required Affordable Units.

I. Low-Income Household means a household whose annual income does not exceed the qualifying limits set for "lower income households" in Section 50079.5 of the California Health & Safety Code.

J. Moderate-Income Household means a household whose annual income does not exceed the qualifying limits set for "moderate income households" in Section 50093 of the California Health & Safety Code and does not include a very low or low-income household.

K. Over-Concentration of Very Low and Low-Income Households means a U.S. Census block group where 50% or more of the households are of very low or low income, as described in the City’s Low Income Concentration Study, any updates thereof, and the Housing Element of the General Plan.

L. Refinance and Resale Limitation Agreement means a recorded agreement between the City and an individual homebuyer of an ownership Affordable Unit documenting Resale Controls and/or Rent Restrictions.

M. Resale Controls and/or Rent Restrictions means legal restrictions by which Affordable Units shall be restricted to ensure that the unit remains affordable to very low, low, or moderate-income households, as applicable, for a period of not less than 45 years for ownership units and not less than 55 years for rental units, or longer periods if required by State housing or redevelopment law. Resale controls for owner-occupied units shall be in the form of resale restrictions, deeds of trust, and/or other similar documents recorded against the subject property. Rent restrictions for rental units shall be in the form of a regulatory agreement recorded against the subject property. Rent restrictions for rental units owned by the City through the rental housing program shall be permanent.

N. Residential Development includes, without limitation, single-family dwellings, multiple-family dwellings, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed use developments that include housing units, manufactured housing, mobile homes, and residential land subdivisions intended to be sold, leased, or rented to the general public.

O. Very Low-Income Household means a household whose annual income does not exceed the qualifying limits set for "very low income households" in Sections 50093 and 50105 of the California Health & Safety Code and "extremely low income households" in Sections 50093 and 50106 of the California Health & Safety Code.

17.725.003 GENERAL REQUIREMENTS.

A. Applicability. This Chapter shall apply to all new Residential Developments of five or more lots or Dwelling Units designed and intended for residential occupancy in the City’s Planning Area. No Residential Development, other than that exempted below, shall be undertaken, and no building permits shall be accepted for processing or issued, unless the development has been approved in accordance with this Chapter.

B. Ten Percent Affordability Requirement. Residential Developments Developers of Residential Development of five or more lots or Dwelling Units designed and intended for residential occupancy shall construct or make possible the construction of a minimum of 10ten percent (10%) of the total number of Dwelling Units within the Residential Development as Affordable Units, allocated to income levels as set forth in this Chapter, or as provided in an Affordable Housing Agreement which specifies the means of satisfying this Chapter, or as specified by State Redevelopment Law (Health and Safety Code § 33413). The foregoing requirement shall be applied prior to the application of a density bonus and no more than once to an approved Residential Development, regardless of changes in its character or ownership, provided that the total number of Dwelling Units does not change.

1. Residential Development of 4-9Five to Nine Dwelling Units. Developers of Residential development Developments consisting of four throughfive to nine dwelling unitsDwelling Units may either construct one low-income affordable unit or Affordable Unit, pay a an In-Lieu Fee at the low-income feelevel, as established by Resolution of the City Council, or provide an alternative equivalent as established in lieu of constructionthis Chapter. However, if all or any portion of a Residential Development is later resubdivided into ten or more parcels or Dwelling Units, the City's affordable housing requirement may not be satisfied by payment of an In-Lieu Fee.

2. Application to Residential Development of 5 or more Dwelling Units. In applying this requirement to Residential Development consisting of 5 or more Dwelling Units, any decimal fraction less than 0.50 Dwelling Units shall be disregarded and any decimal fraction equal to or greater than 0.50 Dwelling Units shall be construed as one Dwelling Unit.

C. Exemptions. The following are exempt from the provisions of this Chapter:

1. Residential Development a development agreement expressly precluding compliance with this Chapter or an Ordinance of this nature. In cases in which the development agreement does not expressly preclude compliance with this Chapter, the project shall comply with this Chapter.

2. Replacement housing due to natural disaster on a one for one basis (i.e., one Dwelling Unit replaced for each legally existing Dwelling Unit).

3. Modifications to existing properties or structures that do not increase the number of Dwelling Units.

4. Residential care facilities with Dwelling Units that are non-self-sufficient units; that is, they do not include kitchen facilities (if a project includes both self-sufficient and non-self-sufficient units, only the latter are exempt).

5. Subdivisions consisting of between one and three units;four lots or Dwelling Units.

6.
6. 6. Development of up to threefour new dwelling units Dwelling Units on an existing residential lot of record;.

8.
7. 7. Up to two Development of up to three additional unitsDwelling Units on a lot zoned to accommodate up to a maximum of threefour units, and which already contains at least one existing unit;, provided that the maximum limit of units is maintained.

10.
11. 8. A residential second unitSecond Unit (as defined by stateState law) on an existing residential lot, subject to compliance with the zoning ordinance;
12.
8. 9. Developments and/or subdivisions with between four and nine parcels or dwelling units may either construct one affordable unit or pay the housing in lieu fee at the low-income level as established by resolution of the city council, or other alternative equivalents shall be provided, as established in this chapter. However, if a residential development is later resubdivided into ten or more parcels or dwelling units, the city’s affordable housing requirement may not be satisfied by payment of an in lieu feeZoning Ordinance.

D. Allocation of Affordable Units to Income Levels. Dwelling Units for Very Low, Low, and Moderate-Income Households as required by this Chapter shall be allocated as follows:

Ownership Development

Moderate-income households 3%

Low-income households 4%

Very Low-income households 3%

Rental Development

Low-income households 5%

Very Low-income households 5%

E. Conditions of Approval. Conditions of Approval calling for compliance with prior rules, regulations, laws, ordinances, and policies of the City shall be interpreted to require compliance with this Chapter.

F. Concurrent Construction. All Affordable Units in a Residential Development or phase of a Residential Development shall be constructed prior to or concurrently with market-rate units.

G. Design and Distribution of Affordable Units. All affordable units within a residential development shall be similar to the market rate units in exterior design, quality, materials, as set forth, and in the location specified, in a schedule of construction approved by the City and architectural elements. Affordable units may be smaller in size and have different interior amenities than the market rate units in a residential development. In all cases, affordable unitsset forth in the Affordable Housing Agreement. The building permits for the last ten percent (10%) of the non-restricted Dwelling Units shall not be issued until the last Affordable Unit has been issued a building permit and construction of the last Affordable Unit has begun.

G. Design and Distribution of Affordable Units. All Affordable Units within a Residential Development shall be comparable to the market rate units in exterior appearance, style,design, quality, materials, architectural elements and overall construction quality, as well as number and proportion of bedroom types, and. All Affordable Units shall include front, side and backyard landscaping. Affordable Units may be smaller in size and have different interior amenities than the market rate units in a Residential Development. Affordable Units shall be dispersed throughout the development projectResidential Development so as to prevent the concentration of affordable unitsAffordable Units, unless the planning commissionPlanning Commission has approved an alternative distribution pattern, or approval of an off-site location has been granted.

1. Very Low to Medium-Density Zoning. For Residential Developments with very low- to medium-density zoning designations as defined by the General Plan, the Affordable Unit may be smaller in size than other models in the Residential Development. The minimum permissible Affordable Unit size is 1,600 square feet on a 3,000 square foot parcel. As a means to provide massing and lot proportions consistent with the Residential Development, a duet unit will satisfy the City's affordable housing requirement. For example, a duet unit can be located on a corner with each duet unit being 1,600 square feet on two separate 3,000 square foot parcels.

2. High to Very High-Density Zoning. For Residential Developments with high to very high-density zoning designations as defined by the General Plan, the Affordable Units shall be comparable to market-rate units in overall size.

H. Length of Affordability. All affordable ownership units shall remain affordable for a period of at least 45 years from date of original occupancy and each subsequent ownership, and all affordable rental units shall remain affordable for a period of at least 55 years from the date of the initial rental or leasing period, or longer periods as may be required by State housing or redevelopment law.

17.725.004 ALTERNATIVE EQUIVALENT PROPOSAL.

As an alternative to constructing affordable units on-site, a residential developer may propose one of the alternative equivalents set forth below to meet the requirements of section 17.725.003. An alternative equivalent proposal may include, but is not limited to, payment of an In Lieu Fee (available to ownership Residential Developments but not rental Residential Developments), dedication of vacant developable land, dedication of constructed units to the City's Rental Housing Program, construction of Affordable Units on another site, and conversion of existing market rate Dwelling Units within the City to Affordable Units through acquisition and enforcement of required affordability restrictions consistent with this Chapter. All alternative equivalent proposals must be submitted in writing, demonstrate that the alternative equivalent will further affordable housing in the City to an equal or greater extent than the construction of required on-site Affordable Units required under Section 17.725.003(D) and (E), and satisfy the following minimum conditions: 1) Be consistent with the City's Housing Element, 2) provide the same amount of affordable housing, and 3) have equivalent or lesser impact on the City's administrative obligations, including maintenance and management duties, than the on-site requirement.

Additionally, for ownership projects, an alternative equivalent proposal must result in a citywide balance of the following components: Construction of Affordable Units, Payment of in lieu fees and contribution to the City's first-time homebuyer program, and dedication of a portion of the units to the City's affordable housing rental program.

A. Approval of Payment of In Lieu Fees. In-Lieu Fees may be paid for 1) Residential Developments consisting of between 4five and 9nine Dwelling Units or 2) the very low-income portion of requirement for a Residential Development consisting of 10ten or more Dwelling Units. The amount of the In-Lieu Fee shall be as set forth by resolutionResolution of the City Council, which may be amended from time to time to reflect inflation, and changed conditions in the City and the region. In-Lieu Fees for Custom Home Developments shall be paid prior to recordation of the final map for the subdivision creating the lots on which the Dwelling Units will be constructed. In-Lieu Fees for all other developments shall be paid at building permit issuance. The amount of the fee shall be as set forth in the In-Lieu Fee resolution in effect at the time of issuance of the building permit.payment. In-Lieu Fees paid to the City shall be deposited into the Affordable Housing In-Lieu Fee Fund in accordance with Section 17.725.007.

No In-Lieu Fee shall be allowed for rental developments. RentalDevelopers of rental developments must construct Affordable Units on-site or satisfy the affordable requirements through an alternative equivalent proposal other than payment of In-Lieu Fees

B. Dedication of Vacant Developable Land. An applicant may dedicate vacant developable land to the City or City-approved non-profit housing developer in lieu of constructing a portion of the required Affordable Units, if the City Manager finds all of the following:

1. The dedication of vacant land in-lieu of constructing Affordable Units is consistent with this Chapter’s goal of creating, preserving, maintaining, and protecting housing for very low, low, and moderate-income households.

2. The dedicated vacant land is large enough and appropriately zoned to accommodate the number of units that the applicant would otherwise be required to construct by Section 17.725.003 (D) and (E).

3. The dedicated vacant land is improved with infrastructure and utilities required to serve the property, including, but not limited to, power, telephone, cable, gas, water, sewer and fiber optics, grading, and all applicable fees, taxes, and assessments, including, but not limited to, school and flood control fees, and excluding any affordable housing in lieu fees, have been or will be paid by the applicant.

4. The dedicated vacant land (if zoned multi-family) is not located within an area of the City currently experiencing an over-concentration of very low, low, or moderate-income households as defined in this Chapter.

5. The dedicated vacant land is located inside the City, or the vacant land will be annexed to the City prior to issuance of any building permits to the applicant for his/her related market rate Dwelling Unit(s).

C. Off-Site Construction or Conversion of Market Rate Units To Affordable Units.

An applicant may construct the required Affordable Units off-site from the proposed market-rate development site or convert existing market-rate units to Affordable Units with the approval of the City Council and subject to the City Council's approval of each of the following findings and imposition of the following conditions of approval on each tentative map:

1. Required Findings:

a. The construction of the Affordable Units off-site or conversion of the existing market-rate units, excluding mobile home units and units within cooperative developments, in lieu of constructing Affordable Units on-site is consistent with this Chapter.

b. The developer has submitted documentation to the satisfaction of the City Manager or designee that demonstrates that it would be financially or otherwise infeasible or impractical to construct Affordable Units on-site, or that off-site construction or conversion of market-rate units to Affordable Units will significantly benefit the City.

c. The conditions of approval and subdivision guarantee for a residential project, or other security such as a cash deposit are adequate to provide for the construction of the off-site Affordable Units prior to or concurrently with the completion of the on-site construction of the market-rate units.

d. Pursuant to Policy 3.3 of the Housing Element of the General Plan, any Affordable Units to be constructed off-site will not be located within any area of the City currently experiencing an over-concentration of very low, low, or moderate-income- households as defined in this Chapter.

e. The quality and quantity of Affordable Units constructed off-site and market-rate units converted to Affordable Units shall be equivalent to Affordable Units that would have been constructed on-site to satisfy the City's affordable housing requirement.

f. The Residential Development will be subject to the Conditions of Approval set forth in section 17.725.004(C)(2) below. The conditions of approval for the market rate development shall require that any off-site Affordable Units be governed by Resale Controls and/or Rent Restrictions similar to those required for on-site Affordable Units.

2. Required Conditions:

a. Affordable Units constructed off-site shall be constructed at the time specified in the Affordable Housing Agreement.

b. Affordable Units converted from market-rate units shall be both converted and inspected at the time specified in the Affordable Housing Agreement. Market rate units converted to Affordable Units shall require inspection by the Community Development Department to ensure that the Affordable Units are in good condition and repair, and conform to all applicable City building and zoning codes.

c. Existing very low, low, or moderate-income households that occupy market rate units being converted to Affordable Units shall not be displaced from those units. If temporary or permanent displacement occurs while the converted units are being repaired or rehabilitated, the developer shall be responsible to pay relocation and moving benefits to the displaced households in accordance with the California Code of Regulations, Title 25, Chapter 6, (California Relocation Assistance Guidelines). The calculation of relocation and moving benefits to be provided by developers to temporarily or permanently displaced households shall be submitted to and approved by the City for verification of compliance with the California Relocation Assistance Guidelines.

D. Dedication of Affordable Units to the City of Brentwood. An applicant may dedicate constructed or converted on-site or off-site affordable Dwelling Units to the City’s rental housing program to satisfy the requirements of this Chapter. Mobile homes and units within cooperative developments are excluded from dedication. Each unit dedicated to the City shall equate to the construction of 2 Affordable Units that would otherwise be required pursuant to Section 17.725.003 (D) and (E). Any units dedicated to the City’s rental housing program shall be intended as rental units with permanent affordable rental restrictions. Net proceeds from the rental stream from these affordable rental units shall be deposited into a Brentwood Rental Housing Trust Fund administered by the City’s Finance Director in accordance with Section 17.725.008.

All units dedicated to the City pursuant to this Chapter shall meet the following requirements prior to acceptance by the City:

1. All applicable fees (including development impact fees), Capital Improvement Financing Program assessments, and bond interest payments shall have been prepaid by the developer.

2. The units shall be less than 20 years old and in good condition and repair, as verified by an inspection conducted by the Community Development Department. A second such inspection may need to be performed to confirm that any repair punchlist generated by the initial inspection is completed prior to the City's acceptance of the unit into the Rental Housing Program.

3. The developer shall have installed any front yard, sideyard, any backyard landscaping and the unit's interior shall meet the City's minimum interior finish and appliance requirements.

4. The sprinkler system, window coverings, and all appliances shall have been installed in the unit in accordance with the list of required items maintained by the City Manager or designee.

5. Each unit must be on a subdivided parcel in accordance with Government Code sections 66426, 66427, or 66428.

6. The developer shall pay all recording, escrow and title fees involved in the transfer of title to the City, including the costs of a title policy insuring City's title in a form and with exceptions approved by the City.

E. Contribution to City’s First Time Homebuyer Program. An applicant may request to contribute to the City’s First Time Homebuyer Program to satisfy the moderate unit requirements of this Chapter.

F. Other Means of Fulfilling Affordable Housing Requirements. Subject to City Manager or designee approval, any developer may fulfill its affordable housing requirement through additional alternative equivalent methods not specifically mentioned in this Chapter, provided that the City Council determines such alternative results in the same number of Affordable Units that would have been provided with on-site construction of Affordable Units.

17.725.005 IMPLEMENTATION PROCEDURES.

A. Satisfaction of Affordable Housing Requirement. Each proposal for satisfying the City's affordable housing requirement, together with a proposed Affordable Housing Agreement per Section 17.725.005(B), shall be reviewed by the City Manager or designee, considered for recommendation by the City Council Housing SubCommittee, and forwarded to the City Council for approval on its consent calendar agenda. The required Affordable Units shall be constructed or converted unless the applicant provides documentation to the satisfaction of the City Manager, detailing why it is not financially or otherwise feasible to construct or convert the Affordable Units.

B. Agreements. Prior to the approval of a Final Map for any Residential Development, or issuance of a building permit for any a unit within a Residential Development, to which this Chapter applies, whichever comes first, the City and the residential developer shall have enteredenter into an Affordable Housing Agreement in a form approved by the City Attorney. For those Residential Developments for which Affordable Units will be constructed or converted on- or off-site, the Affordable Housing Agreement shall include appropriate Resale Controls and/or Rent Restrictions. For ownership Affordable Units, the City and the individual homebuyer shall be required to enter into a recorded Refinance and Resale Limitation Agreement in a form approved by the City Attorney. The City Manager or his or her designee is authorized to execute Affordable Housing Agreements, Resale Controls and/or Rent Restrictions and any other documents necessary to effectuate the implementation of this Chapter, provided such agreements and documents are consistent with the requirements of this Chapter.

C. Annual Monitoring and Transfer Fees. Agreements involving rental units shall require the owner of the affordable rental units to submit an annual monitoring report to the Housing Manager, in a format approved by the City Manager. For each affordable rental unit provided hereunder, the current owner may be required to pay an annual monitoring fee for the term of required affordability in the amount set forth in the Affordable Housing Agreement. For each owner-occupied Affordable Unit provided under this Chapter, the current owner may be required to pay a transfer fee for any change of ownership during the term of required affordability in the amount set forth in the Refinance and Resale Limitation Agreement.

D. Resale Prices For Affordable Ownership Units. The maximum resale price for an affordable ownership unit and terms of resale to an eligible household shall be set by the Housing Manager pursuant to the Affordable Housing Cost as defined in Section 17.725.002 (A) and as set forth in a Refinance and Resale Limitation Agreement.

E. City’s Right of Option to Purchase Affordable Ownership Units. The resale restrictions as set forth in the Refinance and Resale Limitation Agreement shall provide that in the event the owner cannot in good faith and despite his or her best reasonable efforts, locate an eligible household to purchase an affordable ownership unit at an affordable housing cost, the owner shall give written notice of such circumstances, and an option to purchase, to the City.

F. Selection Criteria for Rental or Ownership Units. No household at the time of move-in shall be permitted to rent, purchase or occupy an Affordable Unit that is required under this Chapter unless its qualifications are consistent with this Chapter and the Housing Manager has approved the household’s eligibility. Eligible potential occupants of ownership Affordable Units must be First-Time Homebuyers and will be qualified on the basis of household income as defined in this Chapter, including all sources of income and assets, the relationship between household size and the size of the available units, and any further criteria required by law and/or established by the City Council. The affordable housing developer shall use an equitable selection method established in conformance with the terms of this Chapter and in compliance with State and Federal law. Selection of qualified households shall be based on the affordable housing priorities established below:

Priority 1. Emergency and school district personnel, current Brentwood residents, and agricultural and other workers employed within the Brentwood Planning Area as defined in the Land Use Element of the General Plan. Forty percent of the available Affordable Units shall be first made available to any qualified emergency and school district personnel. If emergency and school district personnel do not utilize 40% of the Affordable Units, then they shall be made available to other qualified Priority 1 applicants, prior to being made available to Priority 2 applicants.

Priority 2. Other qualified non-residents.

To qualify as “emergency and school district personnel,” the household must include a person employed by the East Diablo Fire District, Brentwood Police Department, Brentwood Union School District, Liberty Union High School District, or the Brentwood Campus of the Los Medanos College prior to the eligibility determination.

To qualify as a “Brentwood resident,” the household occupants shall have resided within the City of Brentwood for one year prior to the eligibility determination. To qualify as a non-resident “employed within the City of Brentwood,” the household must include a person employed full-time (40 hours per week) at an address inside Brentwood’s city limits at the time of eligibility determination.

The Housing Manager shall establish and maintain eligibility selection contact lists for qualified households based on the two housing priority groups mentioned above. Proof of qualification for a priority group shall be provided by a household before placement on one of the selection contact lists. The lists shall be updated as needed.

By virtue of their position or relationship, City senior management employees and officials and their children, or members of the City’s agencies, authorities, or commissions who have, by the authority of their position, policy making authority or influence affecting City housing programs, are ineligible to occupy an Affordable Unit.

G. Requirements for Occupancy/Final Inspection. No occupancy shall be permitted, no final inspection approved, or release of utilities authorized for any new dwelling unit in the applicable phase of a residential development until the developer has satisfactorily completed the requirements within this chapter, i.e., on-site construction of affordable units, alternative equivalent proposal action(s), payment of the affordable housing in lieu fee, or dedication of affordable units to the city, for that phase.

17.725.006 AFFORDABLE UNIT CONCESSIONS AND CONSTRUCTION INCENTIVES.

For Residential Development meeting the requirements specified in Section 17.725.003 of this Chapter, the City may offer incentives or financial assistance to encourage compliance with this Chapter to the extent resources for this purpose are available and approved for such use by the City. In order to provide flexibility in the application of these concessions and incentives, and to ensure that they fit the variety of circumstances and different development projects regularly processed by the City, such incentives may include, but shall not be limited to any of the following items, applied alone or in any combination upon the City Council's finding that a developer has proven that the incentive is necessary to the financial feasibility of the Residential Development:

A. Development Processing Fee Deferral. The City Manager or designee may approve deferring payment of City processing and plan check fees applicable to the review and processing of the project. The terms and payment schedule of the deferred processing fees shall be subject to the approval of the City Manager or designee. In no case shall deferred development processing fees be paid later than occupancy of any of the units in the Residential Development. In no case shall fees be waived.

B. Development Impact Fee Deferral. The City Manager or designee may authorize the deferred payment of development impact fees applicable to the Affordable Units. Approval of this incentive requires demonstration by the applicant that the deferral increases the project’s feasibility. The applicant must provide appropriate security to ensure future payment of applicable development impact fees. In no case shall deferred development impact fees be paid later than occupancy of any of the units in the Residential Development. In no case shall fees be waived.

C. Density Bonus. Concurrently with consideration of an application for a Residential Growth Management Program allocation, the City may award a density bonus for developments that comply with the very low, low, or moderate-income affordability provisions of this Chapter by constructing units on-site, dedicating units, paying the appropriate In-Lieu Fee, providing an acceptable Alternative Equivalent Proposal, or a combination of the above, in accordance with this Chapter. In the event that a development is also eligible for a density bonus pursuant to Government Code section 65915, the density bonus authorized pursuant to this Chapter shall be included in any density bonus obtained pursuant to state law and shall not increase the amount of the density bonus above that afforded by state law. An application for a density bonus must be received concurrently with an application for Residential Growth Management Program allotments. The density bonus provided shall initially be set at 9% above the midpoint of the density range established in the General Plan and Zoning Code. However, the cumulative density including the density bonus shall not exceed the maximum density set forth in the City's General Plan or Zoning Code. Fractional density bonus units shall be rounded in the manner set forth in section 17.725.003(B)(2) above. The density bonus amount shall be periodically reviewed by the City Engineer, the Community Development Director, and the Housing Manager, who will recommend that adjustments, as appropriate, be adopted by resolution of the City Council. Density bonus units authorized under this Chapter shall be excluded from the affordability requirements specified in Section 17.725.003.

D. Flexible Design Standards. The Planning Commission may modify City standards and/or approve design modifications for Affordable Units that increase the feasibility of the construction of Affordable Units, including but not limited to, the following:

1. Reduced lot sizes.

2. Reduced setback requirements.

3. Reduced open space requirements.

4. Construction of duplexes or triplexes on corner lots within single-family areas.

5. Reduced landscaping requirements.

6. Reduced interior amenities.

7. Reduced parking requirements.

8. Height restriction waivers.

The applicant shall be responsible for documenting to the satisfaction of City Manager or designee, that the modification is necessary for the financial or other feasibility of the Residential Development. Except for any standards modified by the Planning Commission, the project must otherwise be consistent with all required General Plan, Zoning Code, Uniform Building Code, and other applicable City regulations and policies.

E. Fast Track Processing. The City Manager or designee may authorize prioritized application review and project processing including environmental review, report preparation, entitlement meetings, plan checks, and project inspections.

F. Direct Financial Assistance. The City Council may authorize provision of direct financial assistance in the form of a loan or grant from collected affordable housing trust funds as described in Section 17.725.007 for developments which include ownership and/or rental dwellings affordable to very low, low, or moderate-income households that exceed minimum Affordable Unit counts required under Section 17.725.003.

G. Additional Concessions and Incentives. The City Council may consider, on a case-by-case basis, at its sole discretion, the provision of additional concessions or incentives consistent with state law and the Housing Element of the City of Brentwood General Plan for Residential Development projects that exceed the requirements of this Chapter.

17.725.007 AFFORDABLE HOUSING IN-LIEU FEE FUND.

A. Creation. In-lieu fees shall be deposited into the Affordable Housing In-Lieu Fee Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund including any interest earnings. Funds shall be disbursed at the discretion of the City Council for the purpose of assisting in the construction of very low, low, and moderate-income Dwelling Units, or helping with other affordable housing opportunities. The Finance Director is authorized to utilize up to 20% of these funds for City housing personnel and administrative costs, in accordance with the approved annual budget.

17.725.008 BRENTWOOD RENTAL HOUSING TRUST FUND.

A. Creation. Net rental income from all rental units dedicated to the City’s rental housing program as described in Section 17.725.004 (D) shall be deposited into a Brentwood Rental Housing Trust Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund including any interest earnings. All Funds other than those specified in Section 17.725.008 (C) shall be utilized to purchase, construct or repair single or multi family rental unit inside the City limits. One half of the rental income may be utilized from time to time at the City Council’s discretion to further the provision of affordable housing in the City of Brentwood so long as sufficient funds remain to pay for the maintenance and operation of existing affordable housing in the City's rental housing program.

C. Withholding. The Finance Director is authorized to withhold 20% of the net proceeds from the rental stream ofutilize these affordable rental units to fund funds for City housing personnel and administrative costs directly related to the management and administration of the Brentwood Rental Housing Trust Fund and program, in accordance with the approved annual budget. The Finance Director is further authorized to withhold up to an additional 15% percent of the net proceeds from the rental stream to reimburse City development fees and agricultural mitigation fees for these units until the City development fee accounts are whole.

17.725.009 FIRST TIME HOMEBUYER FEE FUND.

A. Creation. Contributions to the City's First Time Homebuyer Program in accordance with Section 17.725.004(E) shall be deposited into the First Time Homebuyer Fee Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund, including any interest earnings. All monies in the Fund, other than those specified in Section 17.725.009(C) shall be loaned to First Time Homebuyers that qualify as a Moderate-Income, Low-Income or Very Low-Income Household, in accordance with terms and provisions of the approved First Time Homebuyer Program.

C. Withholding. The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs directly related to the management and administration of the First Time Homebuyer Fund and Program, in accordance with the approved annual budget.

17.725.010 ENFORCEMENT.

A. General. The City shall enforce this Chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The City may suspend or revoke any building permit or approval upon finding a violation of any provision of this Chapter. No land use approval, building permit, or occupancy approval shall be granted for any Residential Development unless it is in compliance herewith, including but not limited to, actions to revoke, deny, or suspend any permit or development approval.

B. Excessive Rents/Legal Action. It shall be unlawful, a public nuisance and a misdemeanor for any person to sell or rent an Affordable Unit at a price or rent exceeding the maximum allowed under this Chapter or to a household not qualified under this Chapter, and such person shall be subject to a $500.00 fine per month from the date of original non-compliance until the Affordable Unit is in compliance with this Chapter. If the City determines that rents in excess of those allowed by operation of this Chapter have been charged to a tenant residing in an affordable rental unit, the City may take appropriate legal action.

C. Violation Abatement. The City of Brentwood City Attorney or the Contra Costa County District Attorney, as appropriate, shall be authorized to abate violations of this Chapter and to enforce the provisions of this Chapter and all implementing regulatory agreements and affordability controls placed on Affordable Units by civil action, injunctive relief, and any other proceeding or method permitted by law. Remedies provided for herein shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

17.725.010011 APPEAL.

A. A developer of any project subject to the requirements of this Chapter may appeal to the City Council for a reduction, adjustment, or waiver of its requirements based upon the absence of any reasonable relationship or nexus between the impact of the Residential Development and the amount of the affordable housing requirement.

B. Any such appeal shall be made in writing and filed with the housing manager along with the applicable administrative fee for processing costs as set forth by city council resolution no later than 10 days before the first public hearing on any discretionary approval or permit for the development, or if no such discretionary approval or permit is required, or if the action complained of occurs after the first public hearing on such permit or approval, then the appeal shall be filed within 10 days after payment of the fees objected to. The appeal shall set forth in detail the factual and legal basis for the claim of waiver, reduction, or adjustment. The City Council shall consider the appeal at the public hearing on the permit application or at a separate hearing within 60 days after the filing of the appeal, whichever is later. The appellant shall bear the burden of presenting substantial evidence to support the appeal including comparable technical information to support appellant’s position. A waiver of an affordable housing requirement may only be approved by the City Council if the developer demonstrates that there is no nexus between the proposed project and its impact upon the City's provision of affordable housing. The decision of the Council shall be final. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment, or reduction of the affordable housing requirement.

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF BRENTWOOD AMENDING IN PART CHAPTER 17.725 OF THE CITY OF BRENTWOOD MUNICIPAL CODE AND ORDINANCE NO. 790 RELATING TO THE CITY’S AFFORDABLE HOUSING PROGRAM

WHEREAS, the City Council of the City of Brentwood adopted Ordinance No. 790 on January 11, 2005, amending in its entirety Chapter 17.725 of the City of Brentwood Municipal Code regarding the City's Affordable Housing Program.

WHEREAS, the City Council has determined that minor modifications to Chapter 17.725 and Ordinance No. 790 will assist in the implementation of the City's Affordable Housing Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BRENTWOOD DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby finds that the impacts of this Ordinance are substantially consistent with the type and intensity of impacts analyzed in the previously adopted negative declaration for the City's ordinance adopting Chapter 17.725 of the City of Brentwood Municipal Code, and that there are no new significant impacts or any substantial increase in the severity of previously identified significant impacts identified with the proposed Ordinance. Therefore, pursuant to California Environmental Quality Act (CEQA) Guidelines section 15162, there is no need to prepare a subsequent negative declaration.

SECTION 2. Section 17.725.002 is hereby amended by adding subsection (D) as follows and re-lettering the remainder of Section 17.725.002:

"D. Custom Home Development means any Residential Development being subdivided by one party and sold as individual lots or parcels to separate owners for construction and development of Dwelling Units."

SECTION 3. The first sentence of subsection (A) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"A. Applicability. This Chapter shall apply to all new Residential Developments of five or more lots or Dwelling Units designed and intended for residential occupancy in the City's Planning Area."

SECTION 4. The first sentence of subsection (B) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"B. Ten Percent Affordability Requirement. Developers of Residential Developments of five or more lots or Dwelling Units designed and intended for residential occupancy shall construct or make possible the construction of a minimum of ten percent (10%) of the total number of Dwelling Units within the Residential Development as Affordable Units, allocated to income levels as set forth in this Chapter, or as provided in an Affordable Housing Agreement which specifies the means of satisfying this Chapter, or as specified by State Redevelopment Law (Health and Safety Code § 33413)."

SECTION 5. Subsection B(1) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"1. Residential Developments of Five to Nine Dwelling Units. Developers of Residential Developments consisting of five to nine Dwelling Units may either construct one low-income Affordable Unit, pay an In-Lieu Fee at the low-income level, as established by Resolution of the City Council, or provide an alternative equivalent as established in this Chapter. However, if all or any portion of a Residential Development of Five to Nine Dwelling Units is later resubdivided into ten or more parcels or Dwelling Units, the City's affordable housing requirement may not be satisfied by payment of an In-Lieu Fee."

SECTION 6. Subsection C(5) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"5. Subdivisions consisting of between one and four lots or Dwelling Units."

SECTION 7. Subsection C(6) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"6. Development of up to four new Dwelling Units on an existing residential lot of record."

SECTION 8. Subsection C(7) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"7. Development of up to three additional Dwelling Units on a lot zoned to accommodate up to a maximum of four units, and which already contains at least one existing unit, provided that the maximum limit of units is maintained."

SECTION 9. Subsection C(9) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted in its entirety.

SECTION 10. Subsection (F) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"F. Concurrent Construction. All Affordable Units in a Residential Development or phase of a Residential Development shall be constructed prior to or concurrently with market-rate units, as set forth, and in the location specified, in a schedule of construction approved by the City and set forth in the Affordable Housing Agreement. The building permits for the last ten percent (10%) of the non-restricted Dwelling Units shall not be issued until the last Affordable Unit has been issued a building permit and construction of the last Affordable Unit has begun."

SECTION 11. Subsection (G) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"G. Design and Distribution of Affordable Units. All Affordable Units within a Residential Development shall be comparable to the market rate units in exterior design, quality, materials, architectural elements and overall construction quality, as well as number and proportion of bedroom types. All Affordable Units shall include front, side and backyard landscaping. Affordable Units may be smaller in size and have different interior amenities than the market rate units in a Residential Development. Affordable Units shall be dispersed throughout the Residential Development so as to prevent the concentration of Affordable Units, unless the Planning Commission has approved an alternative distribution pattern, or approval of an off-site location has been granted."

SECTION 12. Subsection (A) of Section 17.725.004 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"A. Approval of Payment of In-Lieu Fees. In-Lieu Fees may be paid for 1) Residential Developments consisting of between five and nine Dwelling Units or 2) the very low-income requirement for a Residential Development consisting of ten or more Dwelling Units. The amount of the In-Lieu Fee shall be as set forth by Resolution of the City Council, which may be amended from time to time to reflect inflation, and changed conditions in the City and the region. In-Lieu Fees for Custom Home Developments shall be paid prior to recordation of the final map for the subdivision creating the lots on which the Dwelling Units will be constructed. In-Lieu Fees for all other developments shall be paid at building permit issuance. The amount of the fee shall be as set forth in the In-Lieu Fee resolution in effect at the time of payment. In-Lieu Fees paid to the City shall be deposited into the Affordable Housing In-Lieu Fee Fund in accordance with Section 17.725.007.

No In-Lieu Fee shall be allowed for rental developments. Developers of rental developments must construct Affordable Units on-site or satisfy the affordable requirements through an alternative equivalent proposal other than payment of In-Lieu Fees."

SECTION 13. Subsection (D) of Section 17.725.004 of the City of Brentwood Municipal Code is hereby amended to add a new subsection (6):

"6. The developer shall pay all recording, escrow and title fees involved in the transfer of title to the City, including the costs of a title policy insuring City's title in a form and with exceptions approved by the City."

SECTION 14. Subsection (B) of Section 17.725.005 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"B. Agreements. Prior to the approval of a Final Map for any Residential Development, or issuance of a building permit for a unit within a Residential Development, to which this Chapter applies, whichever comes first, the City and the residential developer shall enter into an Affordable Housing Agreement in a form approved by the City Attorney. For those Residential Developments for which Affordable Units will be constructed or converted on- or off-site, the Affordable Housing Agreement shall include appropriate Resale Controls and/or Rent Restrictions. For ownership Affordable Units, the City and the individual homebuyer shall be required to enter into a recorded Refinance and Resale Limitation Agreement in a form approved by the City Attorney. The City Manager or his or her designee is authorized to execute Affordable Housing Agreements, Resale Controls and/or Rent Restrictions and any other documents necessary to effectuate the implementation of this Chapter, provided such agreements and documents are consistent with the requirements of this Chapter."

SECTION 15. Subsection (G) of Section 17.725.005 of the City of Brentwood Municipal Code is hereby deleted in its entirety.

SECTION 16. Subsection (A) of Section 17.725.007 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

“A. Creation. In-lieu fees shall be deposited into the Affordable Housing In-Lieu Fee Fund, which is part of the Housing Enterprise.”

SECTION 17. The last sentence of subsection (B) of Section 17.725.007 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

". . . . The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs, in accordance with the approved annual budget."

SECTION 18. Subsection (A) of Section 17.725.008 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

“A. Creation. Net rental income from all rental units dedicated to the City’s rental housing program as described in Section 17.725.004(D) shall be deposited into a Brentwood Rental Housing Trust Fund, which is part of the Housing Enterprise.”

SECTION 19. Subsection (C) of Section 17.725.008 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"C. Withholding. The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs directly related to the management and administration of the Brentwood Rental Housing Trust Fund and program, in accordance with the approved annual budget. The Finance Director is further authorized to withhold up to 15 percent of the net proceeds from the rental stream to reimburse City development fees and agricultural mitigation fees for these units until the City development fee accounts are whole."

SECTION 20. Section 17.725.009, First Time Homebuyer Fund, is hereby added to the City of Brentwood Municipal Code, with renumbering of the following sections, as follows:

"17.725.009 FIRST TIME HOMEBUYER FUND.

A. Creation. Contributions to the City's First Time Homebuyer Program in accordance with Section 17.725.004(E) shall be deposited into the First Time Homebuyer Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund, including any interest earnings. All monies in the Fund, other than those specified in Section 17.725.009(C) shall be loaned to First Time Homebuyers that qualify as a Moderate-Income, Low-Income or Very Low-Income Household, in accordance with terms and provisions of the approved First Time Homebuyer Program.

C. Withholding. The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs directly related to the management and administration of the First Time Homebuyer Fund and Program, in accordance with the approved annual budget."

SECTION 21. Subsection 2 of Section 5 of Ordinance No. 790 is hereby deleted and replaced with the following:

"2. The Developer of any Residential Development of four or more units with either: (a) an application for a Residential Growth Management Program allocation that has been deemed complete by the City between October 9, 2003, and February 10, 2005, the effective date of Ordinance No. 790; or (b) a vesting tentative map or development agreement approved between October 9, 2003, and February 10, 2005, shall, in accordance with the City's practice in effect prior to February 10 2005, either:

1. Construct half of ten percent of the total number of Dwelling Units within the Residential Development as Affordable Units, 70 percent of which shall be affordable to low income households and 30 percent of which shall be affordable to very low income households; or

2. If the Residential Development's average lot size exceeds 8500 square feet, pay the in-lieu fee in effect at time of building permit issuance for half of ten percent of the total number of Dwelling Units within the Residential Development, 70 percent of which shall be the amount in effect for low income households and 30 percent of which shall be the amount in effect for very low income households."

SECTION 22. All other terms and provisions of Ordinance No. 790 shall remain in full force and effect.

SECTION 23. This Ordinance shall be published in accordance with Government Code Section 36933 by either posting or publishing the Ordinance in accordance with that law. Further, the City Clerk is directed to cause Sections 2 through 20 of this Ordinance to be entered in the City of Brentwood Municipal Code. This Ordinance shall take effect and be in force 30 days following its adoption and, prior to the expiration of 15 days after its adoption, it shall be published once with the names of the council members voting for and against it in a newspaper of general circulation, available in the City of Brentwood.

SECTION 24. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, the holding shall not affect the validity or enforceability of the remaining provisions, and the council declares that it would have adopted each provision of this ordinance irrespective of the validity of any other provision.

THE FOREGOING ORDINANCE was introduced at a regular meeting of the Brentwood City Council on the ______ day of _______, 2006, by the following vote:

AYES:
NOES:
ABSENT:
ABSTAIN :

And was adopted at a regular meeting of the Brentwood City Council on the ___ day of _______, 2006, by the following vote:

AYES:
NOES:
ABSENT:
ABSTAIN:



Mayor


ATTEST:





City Clerk

CITY COUNCIL AGENDA ITEM NO. 15



Meeting Date: January 9, 2007

Subject/Title: Consideration of an Ordinance of the City of Brentwood amending in part Chapter 17.725 of the City of Brentwood Municipal Code and Ordinance No. 790 relating to the City’s Affordable Housing Program

Prepared by: Ellen Bonneville, Housing Manager

Submitted by: Howard Sword, Community Development Director



RECOMMENDATION
Approve an Ordinance of the City of Brentwood amending in part Chapter 17.725 of the City of Brentwood Municipal Code and Ordinance No. 790 relating to the City’s Affordable Housing Program.

PREVIOUS ACTION
Ordinance 756 establishing the Affordable Housing Program was adopted by the City Council on September 9, 2003 as recommended by the Planning Commission.

Ordinance 790 amending Chapter 17.725 of the City of Brentwood Municipal Code pertaining to the Affordable Housing Program was adopted by the City Council on December 14, 2004.

Ordinance 790 became effective on January 11, 2005.

The Housing Subcommittee reviewed the proposed amendments to Ordinance 790 and authorized staff to proceed with the necessary Public Hearings at its meeting of October 5, 2006.

On November 21, 2006 the City of Brentwood Planning Commission approved Resolution No. 06-117 recommending that the City Council of the City of Brentwood amend Chapter 17.725 of the City of Brentwood Municipal Code and Ordinance 790 relating to the City’s Affordable Housing Program.

BACKGROUND
The City approved the Affordable Housing Program in 2003 with a major amendment to the Ordinance in 2005. Since that time the Housing Division has implemented the current Ordinance 790 which requires that all new subdivisions with 4 or more lots be subject to a ten percent (10%) inclusionary requirement. The inclusionary requirement is distributed such that 3% of the units are made available to very-low income households, 4% of the units made available to low income households and 3% of the units are made available to moderate income households. The Ordinance provides developers flexibility in the way that they meet this requirement--such as payment of in-lieu fees, contributions to the First Time Homebuyer Program, land dedication, purchase of existing homes and other alternative equivalencies.

When the Affordable Housing Ordinance was originally adopted it was clear to the City Council that this was a “living” document which would need to be amended from time to time. As staff was hired and began to implement the original Ordinance adopted in 2003, it became apparent that there were amendments that were necessary to facilitate the intent of the Ordinance and to also accommodate a changing residential market climate, which amendments were made in 2005. The current amendments being presented for consideration are more “clean-up” in nature rather than substantive policy revisions as was the case for the amendment in 2005.

As staff has negotiated with developers of small lot subdivisions it became clear to the City Council that the Ordinance needs to be more specific as to the time frame for the payment of the required in-lieu fee and that the Ordinance should be revised to mirror the Subdivision Map Act by exempting small developments of 4 lots or less. Also, in Ordinance 790 it was unclear as to when in-lieu fees shall be paid by developers creating a custom lot subdivision. Therefore, the proposed amendments to Ordinance 790 include the revision that the affordable housing requirement only applies to subdivisions that consist of five or more lots rather than four or more lots and that the in-lieu fee shall be paid prior to the recordation of the final map for custom lot developments.

With the downturn in the housing market, staff determined that the Ordinance needs to provide more flexibility in providing administrative dollars to fund the Housing Division so that there will be no impact to the City’s General Fund. Annually as part of the Housing Division’s budget process, an accurate attempt is made at determining which developers with an approved final map will apply for a production building permit. Because the Housing Division’s source of revenues are directed linked to in-lieu fees made during the fiscal year, the projected revenue or in-lieu fees are based on the developers schedule. Therefore, an amendment to the Ordinance will provide the Finance Director and City Council more flexibility in providing the dollars to fund the Housing Division. Rather than restricting the administrative funding to twenty percent (20%) of the in-lieu fees collected during the fiscal year, the amendment will allow the Finance Director to recommend funding of the Housing Division through utilizing any of the funds that comprise the Housing Enterprise. These funds may include a percentage of the funds collected through in-lieu fees, a percentage of the funds collected through the rental stream from city rentals, a percentage of the funds collected for the First Time Homebuyer Fund, etc. The amendment also creates a separate First Time Homebuyer Fund so that the dollars collected through developer agreements flow into their own distinct fund and can be more readily identified and tracked.

The City Council has voiced concern over the maintenance and landscaping of the affordable units that are sold to private individuals. In order to insure that the yards are landscaped, the Ordinance will now require the developer to install front, side and rear yard landscaping for all affordable units constructed “for sale” as part of the program--not just the rental units dedicated to the City. This way, the affordable units will truly blend in with the remainder of the respective development.

The other proposed amendments to the Ordinance include: requiring the approval of the Affordable Housing Agreement prior to the approval of the final map or the issuance of the first building permit and requiring that the builder obtain the building permit for the final affordable unit prior to obtaining building permits for the last ten percent (10%) of the market rate unit. These practices are currently being utilized by the staff, so this proposed amendment will codify these current practices.

On November 21, 2006 the City of Brentwood Planning Commission conducted a noticed public hearing on the proposed ordinance amendments and the outcome of that public hearing was that the Planning Commission voted in favor of recommending that the City Council adopt the proposed ordinance.


FISCAL IMPACT
The proposed changes will allow for the ability, with City Council approval, to utilize more than twenty percent of the in lieu fees as well as a portion of the funds received from the rental stream and first time homebuyers to fund the Housing Division’s administrative costs. This will provide flexibility should projected revenues not come to fruition to fund the approved administrative budget. The amendment will also create a new “First Time Homebuyer” fund.





Attachments
Redlined version of showing changes to Chapter 17.725
Ordinance



CHAPTER 17.725 AFFORDABLE HOUSING

17.725.001 TITLE AND PURPOSE OF PROVISIONS
17.725.002 DEFINITIONS
17.725.003 GENERAL REQUIREMENTS
17.725.004 ALTERNATIVE EQUIVALENT PROPOSAL
17.725.005 IMPLEMENTATION PROCEDURES
17.725.006 AFFORDABLE UNIT CONCESSIONS AND CONSTRUCTION INCENTIVES
17.725.007 AFFORDABLE HOUSING TRUST FUND
17.725.008 BRENTWOOD RENTAL HOUSING TRUST FUND
17.725.009 ENFORCEMENT
17.725.010 APPEAL

17.725.001 TITLE AND PURPOSE OF PROVISIONS.

A. Title. The provisions of Chapter 17.725 shall be known as the “Affordable Housing Program” of this title.

B. Purpose. The purpose of this Affordable Housing Program is to:

1. Enhance the public welfare and assure that further housing development contributes to the attainment of the City’s housing goals as described in the Housing Element of the General Plan, by creating, preserving, maintaining, and protecting housing affordable for households of very low, low, and moderate income.

2. Assure that the remaining developable land in the City’s Planning Area is utilized in a manner consistent with the City’s housing policies and needs.

17.725.002 DEFINITIONS.

As used in this Chapter, each of the following terms shall be defined as follows:

A. Affordable Housing Agreement is a recorded agreement between the City and a residential developer setting forth the residential developer's compliance with the requirements of this Chapter.

B. Affordable Housing Cost is the cost defined in the California Health and Safety Code for owner-occupied and tenant-occupied units. The Housing Manager, on or about July 1 of each calendar year shall publish the maximum Affordable Housing Costs for sales prices and rents as calculated in accordance with the applicable provisions of the California Health and Safety Code.

C. Affordable Unit means an ownership or rental-housing unit, including senior housing, occupied by and available to households of very low, low and moderate incomes at an Affordable Housing Cost, adjusted for household size as defined in this Chapter, with deed restrictions as defined in this Chapter in favor of the City.

D. Custom Home Development means any Residential Development being subdivided by one party and sold as individual lots or parcels to separate owners for construction and development of Dwelling Units.

E. Dwelling Unit means a dwelling designed and intended for occupancy by one household.

F. First Time Homebuyer means a household which has not owned its principal place of residence within the last three years.

G. Household Size means the number of persons residing at least during 50% of a calendar year within a Dwelling Unit. For the purposes of this Chapter, appropriately sized Affordable Units for a given household size are as follows, or as may be amended by the California Health and Safety Code:

Persons 1 2 3 4 5 6 or more
Unit Size Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom

H. In-Lieu Fee means a fee paid to the City by an applicant in-lieu of providing the required Affordable Units.

I. Low-Income Household means a household whose annual income does not exceed the qualifying limits set for "lower income households" in Section 50079.5 of the California Health & Safety Code.

J. Moderate-Income Household means a household whose annual income does not exceed the qualifying limits set for "moderate income households" in Section 50093 of the California Health & Safety Code and does not include a very low or low-income household.

K. Over-Concentration of Very Low and Low-Income Households means a U.S. Census block group where 50% or more of the households are of very low or low income, as described in the City’s Low Income Concentration Study, any updates thereof, and the Housing Element of the General Plan.

L. Refinance and Resale Limitation Agreement means a recorded agreement between the City and an individual homebuyer of an ownership Affordable Unit documenting Resale Controls and/or Rent Restrictions.

M. Resale Controls and/or Rent Restrictions means legal restrictions by which Affordable Units shall be restricted to ensure that the unit remains affordable to very low, low, or moderate-income households, as applicable, for a period of not less than 45 years for ownership units and not less than 55 years for rental units, or longer periods if required by State housing or redevelopment law. Resale controls for owner-occupied units shall be in the form of resale restrictions, deeds of trust, and/or other similar documents recorded against the subject property. Rent restrictions for rental units shall be in the form of a regulatory agreement recorded against the subject property. Rent restrictions for rental units owned by the City through the rental housing program shall be permanent.

N. Residential Development includes, without limitation, single-family dwellings, multiple-family dwellings, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed use developments that include housing units, manufactured housing, mobile homes, and residential land subdivisions intended to be sold, leased, or rented to the general public.

O. Very Low-Income Household means a household whose annual income does not exceed the qualifying limits set for "very low income households" in Sections 50093 and 50105 of the California Health & Safety Code and "extremely low income households" in Sections 50093 and 50106 of the California Health & Safety Code.

17.725.003 GENERAL REQUIREMENTS.

A. Applicability. This Chapter shall apply to all new Residential Developments of five or more lots or Dwelling Units designed and intended for residential occupancy in the City’s Planning Area. No Residential Development, other than that exempted below, shall be undertaken, and no building permits shall be accepted for processing or issued, unless the development has been approved in accordance with this Chapter.

B. Ten Percent Affordability Requirement. Residential Developments Developers of Residential Development of five or more lots or Dwelling Units designed and intended for residential occupancy shall construct or make possible the construction of a minimum of 10ten percent (10%) of the total number of Dwelling Units within the Residential Development as Affordable Units, allocated to income levels as set forth in this Chapter, or as provided in an Affordable Housing Agreement which specifies the means of satisfying this Chapter, or as specified by State Redevelopment Law (Health and Safety Code § 33413). The foregoing requirement shall be applied prior to the application of a density bonus and no more than once to an approved Residential Development, regardless of changes in its character or ownership, provided that the total number of Dwelling Units does not change.

1. Residential Development of 4-9Five to Nine Dwelling Units. Developers of Residential development Developments consisting of four throughfive to nine dwelling unitsDwelling Units may either construct one low-income affordable unit or Affordable Unit, pay a an In-Lieu Fee at the low-income feelevel, as established by Resolution of the City Council, or provide an alternative equivalent as established in lieu of constructionthis Chapter. However, if all or any portion of a Residential Development is later resubdivided into ten or more parcels or Dwelling Units, the City's affordable housing requirement may not be satisfied by payment of an In-Lieu Fee.

2. Application to Residential Development of 5 or more Dwelling Units. In applying this requirement to Residential Development consisting of 5 or more Dwelling Units, any decimal fraction less than 0.50 Dwelling Units shall be disregarded and any decimal fraction equal to or greater than 0.50 Dwelling Units shall be construed as one Dwelling Unit.

C. Exemptions. The following are exempt from the provisions of this Chapter:

1. Residential Development a development agreement expressly precluding compliance with this Chapter or an Ordinance of this nature. In cases in which the development agreement does not expressly preclude compliance with this Chapter, the project shall comply with this Chapter.

2. Replacement housing due to natural disaster on a one for one basis (i.e., one Dwelling Unit replaced for each legally existing Dwelling Unit).

3. Modifications to existing properties or structures that do not increase the number of Dwelling Units.

4. Residential care facilities with Dwelling Units that are non-self-sufficient units; that is, they do not include kitchen facilities (if a project includes both self-sufficient and non-self-sufficient units, only the latter are exempt).

5. Subdivisions consisting of between one and three units;four lots or Dwelling Units.

6.
6. 6. Development of up to threefour new dwelling units Dwelling Units on an existing residential lot of record;.

8.
7. 7. Up to two Development of up to three additional unitsDwelling Units on a lot zoned to accommodate up to a maximum of threefour units, and which already contains at least one existing unit;, provided that the maximum limit of units is maintained.

10.
11. 8. A residential second unitSecond Unit (as defined by stateState law) on an existing residential lot, subject to compliance with the zoning ordinance;
12.
8. 9. Developments and/or subdivisions with between four and nine parcels or dwelling units may either construct one affordable unit or pay the housing in lieu fee at the low-income level as established by resolution of the city council, or other alternative equivalents shall be provided, as established in this chapter. However, if a residential development is later resubdivided into ten or more parcels or dwelling units, the city’s affordable housing requirement may not be satisfied by payment of an in lieu feeZoning Ordinance.

D. Allocation of Affordable Units to Income Levels. Dwelling Units for Very Low, Low, and Moderate-Income Households as required by this Chapter shall be allocated as follows:

Ownership Development

Moderate-income households 3%

Low-income households 4%

Very Low-income households 3%

Rental Development

Low-income households 5%

Very Low-income households 5%

E. Conditions of Approval. Conditions of Approval calling for compliance with prior rules, regulations, laws, ordinances, and policies of the City shall be interpreted to require compliance with this Chapter.

F. Concurrent Construction. All Affordable Units in a Residential Development or phase of a Residential Development shall be constructed prior to or concurrently with market-rate units.

G. Design and Distribution of Affordable Units. All affordable units within a residential development shall be similar to the market rate units in exterior design, quality, materials, as set forth, and in the location specified, in a schedule of construction approved by the City and architectural elements. Affordable units may be smaller in size and have different interior amenities than the market rate units in a residential development. In all cases, affordable unitsset forth in the Affordable Housing Agreement. The building permits for the last ten percent (10%) of the non-restricted Dwelling Units shall not be issued until the last Affordable Unit has been issued a building permit and construction of the last Affordable Unit has begun.

G. Design and Distribution of Affordable Units. All Affordable Units within a Residential Development shall be comparable to the market rate units in exterior appearance, style,design, quality, materials, architectural elements and overall construction quality, as well as number and proportion of bedroom types, and. All Affordable Units shall include front, side and backyard landscaping. Affordable Units may be smaller in size and have different interior amenities than the market rate units in a Residential Development. Affordable Units shall be dispersed throughout the development projectResidential Development so as to prevent the concentration of affordable unitsAffordable Units, unless the planning commissionPlanning Commission has approved an alternative distribution pattern, or approval of an off-site location has been granted.

1. Very Low to Medium-Density Zoning. For Residential Developments with very low- to medium-density zoning designations as defined by the General Plan, the Affordable Unit may be smaller in size than other models in the Residential Development. The minimum permissible Affordable Unit size is 1,600 square feet on a 3,000 square foot parcel. As a means to provide massing and lot proportions consistent with the Residential Development, a duet unit will satisfy the City's affordable housing requirement. For example, a duet unit can be located on a corner with each duet unit being 1,600 square feet on two separate 3,000 square foot parcels.

2. High to Very High-Density Zoning. For Residential Developments with high to very high-density zoning designations as defined by the General Plan, the Affordable Units shall be comparable to market-rate units in overall size.

H. Length of Affordability. All affordable ownership units shall remain affordable for a period of at least 45 years from date of original occupancy and each subsequent ownership, and all affordable rental units shall remain affordable for a period of at least 55 years from the date of the initial rental or leasing period, or longer periods as may be required by State housing or redevelopment law.

17.725.004 ALTERNATIVE EQUIVALENT PROPOSAL.

As an alternative to constructing affordable units on-site, a residential developer may propose one of the alternative equivalents set forth below to meet the requirements of section 17.725.003. An alternative equivalent proposal may include, but is not limited to, payment of an In Lieu Fee (available to ownership Residential Developments but not rental Residential Developments), dedication of vacant developable land, dedication of constructed units to the City's Rental Housing Program, construction of Affordable Units on another site, and conversion of existing market rate Dwelling Units within the City to Affordable Units through acquisition and enforcement of required affordability restrictions consistent with this Chapter. All alternative equivalent proposals must be submitted in writing, demonstrate that the alternative equivalent will further affordable housing in the City to an equal or greater extent than the construction of required on-site Affordable Units required under Section 17.725.003(D) and (E), and satisfy the following minimum conditions: 1) Be consistent with the City's Housing Element, 2) provide the same amount of affordable housing, and 3) have equivalent or lesser impact on the City's administrative obligations, including maintenance and management duties, than the on-site requirement.

Additionally, for ownership projects, an alternative equivalent proposal must result in a citywide balance of the following components: Construction of Affordable Units, Payment of in lieu fees and contribution to the City's first-time homebuyer program, and dedication of a portion of the units to the City's affordable housing rental program.

A. Approval of Payment of In Lieu Fees. In-Lieu Fees may be paid for 1) Residential Developments consisting of between 4five and 9nine Dwelling Units or 2) the very low-income portion of requirement for a Residential Development consisting of 10ten or more Dwelling Units. The amount of the In-Lieu Fee shall be as set forth by resolutionResolution of the City Council, which may be amended from time to time to reflect inflation, and changed conditions in the City and the region. In-Lieu Fees for Custom Home Developments shall be paid prior to recordation of the final map for the subdivision creating the lots on which the Dwelling Units will be constructed. In-Lieu Fees for all other developments shall be paid at building permit issuance. The amount of the fee shall be as set forth in the In-Lieu Fee resolution in effect at the time of issuance of the building permit.payment. In-Lieu Fees paid to the City shall be deposited into the Affordable Housing In-Lieu Fee Fund in accordance with Section 17.725.007.

No In-Lieu Fee shall be allowed for rental developments. RentalDevelopers of rental developments must construct Affordable Units on-site or satisfy the affordable requirements through an alternative equivalent proposal other than payment of In-Lieu Fees

B. Dedication of Vacant Developable Land. An applicant may dedicate vacant developable land to the City or City-approved non-profit housing developer in lieu of constructing a portion of the required Affordable Units, if the City Manager finds all of the following:

1. The dedication of vacant land in-lieu of constructing Affordable Units is consistent with this Chapter’s goal of creating, preserving, maintaining, and protecting housing for very low, low, and moderate-income households.

2. The dedicated vacant land is large enough and appropriately zoned to accommodate the number of units that the applicant would otherwise be required to construct by Section 17.725.003 (D) and (E).

3. The dedicated vacant land is improved with infrastructure and utilities required to serve the property, including, but not limited to, power, telephone, cable, gas, water, sewer and fiber optics, grading, and all applicable fees, taxes, and assessments, including, but not limited to, school and flood control fees, and excluding any affordable housing in lieu fees, have been or will be paid by the applicant.

4. The dedicated vacant land (if zoned multi-family) is not located within an area of the City currently experiencing an over-concentration of very low, low, or moderate-income households as defined in this Chapter.

5. The dedicated vacant land is located inside the City, or the vacant land will be annexed to the City prior to issuance of any building permits to the applicant for his/her related market rate Dwelling Unit(s).

C. Off-Site Construction or Conversion of Market Rate Units To Affordable Units.

An applicant may construct the required Affordable Units off-site from the proposed market-rate development site or convert existing market-rate units to Affordable Units with the approval of the City Council and subject to the City Council's approval of each of the following findings and imposition of the following conditions of approval on each tentative map:

1. Required Findings:

a. The construction of the Affordable Units off-site or conversion of the existing market-rate units, excluding mobile home units and units within cooperative developments, in lieu of constructing Affordable Units on-site is consistent with this Chapter.

b. The developer has submitted documentation to the satisfaction of the City Manager or designee that demonstrates that it would be financially or otherwise infeasible or impractical to construct Affordable Units on-site, or that off-site construction or conversion of market-rate units to Affordable Units will significantly benefit the City.

c. The conditions of approval and subdivision guarantee for a residential project, or other security such as a cash deposit are adequate to provide for the construction of the off-site Affordable Units prior to or concurrently with the completion of the on-site construction of the market-rate units.

d. Pursuant to Policy 3.3 of the Housing Element of the General Plan, any Affordable Units to be constructed off-site will not be located within any area of the City currently experiencing an over-concentration of very low, low, or moderate-income- households as defined in this Chapter.

e. The quality and quantity of Affordable Units constructed off-site and market-rate units converted to Affordable Units shall be equivalent to Affordable Units that would have been constructed on-site to satisfy the City's affordable housing requirement.

f. The Residential Development will be subject to the Conditions of Approval set forth in section 17.725.004(C)(2) below. The conditions of approval for the market rate development shall require that any off-site Affordable Units be governed by Resale Controls and/or Rent Restrictions similar to those required for on-site Affordable Units.

2. Required Conditions:

a. Affordable Units constructed off-site shall be constructed at the time specified in the Affordable Housing Agreement.

b. Affordable Units converted from market-rate units shall be both converted and inspected at the time specified in the Affordable Housing Agreement. Market rate units converted to Affordable Units shall require inspection by the Community Development Department to ensure that the Affordable Units are in good condition and repair, and conform to all applicable City building and zoning codes.

c. Existing very low, low, or moderate-income households that occupy market rate units being converted to Affordable Units shall not be displaced from those units. If temporary or permanent displacement occurs while the converted units are being repaired or rehabilitated, the developer shall be responsible to pay relocation and moving benefits to the displaced households in accordance with the California Code of Regulations, Title 25, Chapter 6, (California Relocation Assistance Guidelines). The calculation of relocation and moving benefits to be provided by developers to temporarily or permanently displaced households shall be submitted to and approved by the City for verification of compliance with the California Relocation Assistance Guidelines.

D. Dedication of Affordable Units to the City of Brentwood. An applicant may dedicate constructed or converted on-site or off-site affordable Dwelling Units to the City’s rental housing program to satisfy the requirements of this Chapter. Mobile homes and units within cooperative developments are excluded from dedication. Each unit dedicated to the City shall equate to the construction of 2 Affordable Units that would otherwise be required pursuant to Section 17.725.003 (D) and (E). Any units dedicated to the City’s rental housing program shall be intended as rental units with permanent affordable rental restrictions. Net proceeds from the rental stream from these affordable rental units shall be deposited into a Brentwood Rental Housing Trust Fund administered by the City’s Finance Director in accordance with Section 17.725.008.

All units dedicated to the City pursuant to this Chapter shall meet the following requirements prior to acceptance by the City:

1. All applicable fees (including development impact fees), Capital Improvement Financing Program assessments, and bond interest payments shall have been prepaid by the developer.

2. The units shall be less than 20 years old and in good condition and repair, as verified by an inspection conducted by the Community Development Department. A second such inspection may need to be performed to confirm that any repair punchlist generated by the initial inspection is completed prior to the City's acceptance of the unit into the Rental Housing Program.

3. The developer shall have installed any front yard, sideyard, any backyard landscaping and the unit's interior shall meet the City's minimum interior finish and appliance requirements.

4. The sprinkler system, window coverings, and all appliances shall have been installed in the unit in accordance with the list of required items maintained by the City Manager or designee.

5. Each unit must be on a subdivided parcel in accordance with Government Code sections 66426, 66427, or 66428.

6. The developer shall pay all recording, escrow and title fees involved in the transfer of title to the City, including the costs of a title policy insuring City's title in a form and with exceptions approved by the City.

E. Contribution to City’s First Time Homebuyer Program. An applicant may request to contribute to the City’s First Time Homebuyer Program to satisfy the moderate unit requirements of this Chapter.

F. Other Means of Fulfilling Affordable Housing Requirements. Subject to City Manager or designee approval, any developer may fulfill its affordable housing requirement through additional alternative equivalent methods not specifically mentioned in this Chapter, provided that the City Council determines such alternative results in the same number of Affordable Units that would have been provided with on-site construction of Affordable Units.

17.725.005 IMPLEMENTATION PROCEDURES.

A. Satisfaction of Affordable Housing Requirement. Each proposal for satisfying the City's affordable housing requirement, together with a proposed Affordable Housing Agreement per Section 17.725.005(B), shall be reviewed by the City Manager or designee, considered for recommendation by the City Council Housing SubCommittee, and forwarded to the City Council for approval on its consent calendar agenda. The required Affordable Units shall be constructed or converted unless the applicant provides documentation to the satisfaction of the City Manager, detailing why it is not financially or otherwise feasible to construct or convert the Affordable Units.

B. Agreements. Prior to the approval of a Final Map for any Residential Development, or issuance of a building permit for any a unit within a Residential Development, to which this Chapter applies, whichever comes first, the City and the residential developer shall have enteredenter into an Affordable Housing Agreement in a form approved by the City Attorney. For those Residential Developments for which Affordable Units will be constructed or converted on- or off-site, the Affordable Housing Agreement shall include appropriate Resale Controls and/or Rent Restrictions. For ownership Affordable Units, the City and the individual homebuyer shall be required to enter into a recorded Refinance and Resale Limitation Agreement in a form approved by the City Attorney. The City Manager or his or her designee is authorized to execute Affordable Housing Agreements, Resale Controls and/or Rent Restrictions and any other documents necessary to effectuate the implementation of this Chapter, provided such agreements and documents are consistent with the requirements of this Chapter.

C. Annual Monitoring and Transfer Fees. Agreements involving rental units shall require the owner of the affordable rental units to submit an annual monitoring report to the Housing Manager, in a format approved by the City Manager. For each affordable rental unit provided hereunder, the current owner may be required to pay an annual monitoring fee for the term of required affordability in the amount set forth in the Affordable Housing Agreement. For each owner-occupied Affordable Unit provided under this Chapter, the current owner may be required to pay a transfer fee for any change of ownership during the term of required affordability in the amount set forth in the Refinance and Resale Limitation Agreement.

D. Resale Prices For Affordable Ownership Units. The maximum resale price for an affordable ownership unit and terms of resale to an eligible household shall be set by the Housing Manager pursuant to the Affordable Housing Cost as defined in Section 17.725.002 (A) and as set forth in a Refinance and Resale Limitation Agreement.

E. City’s Right of Option to Purchase Affordable Ownership Units. The resale restrictions as set forth in the Refinance and Resale Limitation Agreement shall provide that in the event the owner cannot in good faith and despite his or her best reasonable efforts, locate an eligible household to purchase an affordable ownership unit at an affordable housing cost, the owner shall give written notice of such circumstances, and an option to purchase, to the City.

F. Selection Criteria for Rental or Ownership Units. No household at the time of move-in shall be permitted to rent, purchase or occupy an Affordable Unit that is required under this Chapter unless its qualifications are consistent with this Chapter and the Housing Manager has approved the household’s eligibility. Eligible potential occupants of ownership Affordable Units must be First-Time Homebuyers and will be qualified on the basis of household income as defined in this Chapter, including all sources of income and assets, the relationship between household size and the size of the available units, and any further criteria required by law and/or established by the City Council. The affordable housing developer shall use an equitable selection method established in conformance with the terms of this Chapter and in compliance with State and Federal law. Selection of qualified households shall be based on the affordable housing priorities established below:

Priority 1. Emergency and school district personnel, current Brentwood residents, and agricultural and other workers employed within the Brentwood Planning Area as defined in the Land Use Element of the General Plan. Forty percent of the available Affordable Units shall be first made available to any qualified emergency and school district personnel. If emergency and school district personnel do not utilize 40% of the Affordable Units, then they shall be made available to other qualified Priority 1 applicants, prior to being made available to Priority 2 applicants.

Priority 2. Other qualified non-residents.

To qualify as “emergency and school district personnel,” the household must include a person employed by the East Diablo Fire District, Brentwood Police Department, Brentwood Union School District, Liberty Union High School District, or the Brentwood Campus of the Los Medanos College prior to the eligibility determination.

To qualify as a “Brentwood resident,” the household occupants shall have resided within the City of Brentwood for one year prior to the eligibility determination. To qualify as a non-resident “employed within the City of Brentwood,” the household must include a person employed full-time (40 hours per week) at an address inside Brentwood’s city limits at the time of eligibility determination.

The Housing Manager shall establish and maintain eligibility selection contact lists for qualified households based on the two housing priority groups mentioned above. Proof of qualification for a priority group shall be provided by a household before placement on one of the selection contact lists. The lists shall be updated as needed.

By virtue of their position or relationship, City senior management employees and officials and their children, or members of the City’s agencies, authorities, or commissions who have, by the authority of their position, policy making authority or influence affecting City housing programs, are ineligible to occupy an Affordable Unit.

G. Requirements for Occupancy/Final Inspection. No occupancy shall be permitted, no final inspection approved, or release of utilities authorized for any new dwelling unit in the applicable phase of a residential development until the developer has satisfactorily completed the requirements within this chapter, i.e., on-site construction of affordable units, alternative equivalent proposal action(s), payment of the affordable housing in lieu fee, or dedication of affordable units to the city, for that phase.

17.725.006 AFFORDABLE UNIT CONCESSIONS AND CONSTRUCTION INCENTIVES.

For Residential Development meeting the requirements specified in Section 17.725.003 of this Chapter, the City may offer incentives or financial assistance to encourage compliance with this Chapter to the extent resources for this purpose are available and approved for such use by the City. In order to provide flexibility in the application of these concessions and incentives, and to ensure that they fit the variety of circumstances and different development projects regularly processed by the City, such incentives may include, but shall not be limited to any of the following items, applied alone or in any combination upon the City Council's finding that a developer has proven that the incentive is necessary to the financial feasibility of the Residential Development:

A. Development Processing Fee Deferral. The City Manager or designee may approve deferring payment of City processing and plan check fees applicable to the review and processing of the project. The terms and payment schedule of the deferred processing fees shall be subject to the approval of the City Manager or designee. In no case shall deferred development processing fees be paid later than occupancy of any of the units in the Residential Development. In no case shall fees be waived.

B. Development Impact Fee Deferral. The City Manager or designee may authorize the deferred payment of development impact fees applicable to the Affordable Units. Approval of this incentive requires demonstration by the applicant that the deferral increases the project’s feasibility. The applicant must provide appropriate security to ensure future payment of applicable development impact fees. In no case shall deferred development impact fees be paid later than occupancy of any of the units in the Residential Development. In no case shall fees be waived.

C. Density Bonus. Concurrently with consideration of an application for a Residential Growth Management Program allocation, the City may award a density bonus for developments that comply with the very low, low, or moderate-income affordability provisions of this Chapter by constructing units on-site, dedicating units, paying the appropriate In-Lieu Fee, providing an acceptable Alternative Equivalent Proposal, or a combination of the above, in accordance with this Chapter. In the event that a development is also eligible for a density bonus pursuant to Government Code section 65915, the density bonus authorized pursuant to this Chapter shall be included in any density bonus obtained pursuant to state law and shall not increase the amount of the density bonus above that afforded by state law. An application for a density bonus must be received concurrently with an application for Residential Growth Management Program allotments. The density bonus provided shall initially be set at 9% above the midpoint of the density range established in the General Plan and Zoning Code. However, the cumulative density including the density bonus shall not exceed the maximum density set forth in the City's General Plan or Zoning Code. Fractional density bonus units shall be rounded in the manner set forth in section 17.725.003(B)(2) above. The density bonus amount shall be periodically reviewed by the City Engineer, the Community Development Director, and the Housing Manager, who will recommend that adjustments, as appropriate, be adopted by resolution of the City Council. Density bonus units authorized under this Chapter shall be excluded from the affordability requirements specified in Section 17.725.003.

D. Flexible Design Standards. The Planning Commission may modify City standards and/or approve design modifications for Affordable Units that increase the feasibility of the construction of Affordable Units, including but not limited to, the following:

1. Reduced lot sizes.

2. Reduced setback requirements.

3. Reduced open space requirements.

4. Construction of duplexes or triplexes on corner lots within single-family areas.

5. Reduced landscaping requirements.

6. Reduced interior amenities.

7. Reduced parking requirements.

8. Height restriction waivers.

The applicant shall be responsible for documenting to the satisfaction of City Manager or designee, that the modification is necessary for the financial or other feasibility of the Residential Development. Except for any standards modified by the Planning Commission, the project must otherwise be consistent with all required General Plan, Zoning Code, Uniform Building Code, and other applicable City regulations and policies.

E. Fast Track Processing. The City Manager or designee may authorize prioritized application review and project processing including environmental review, report preparation, entitlement meetings, plan checks, and project inspections.

F. Direct Financial Assistance. The City Council may authorize provision of direct financial assistance in the form of a loan or grant from collected affordable housing trust funds as described in Section 17.725.007 for developments which include ownership and/or rental dwellings affordable to very low, low, or moderate-income households that exceed minimum Affordable Unit counts required under Section 17.725.003.

G. Additional Concessions and Incentives. The City Council may consider, on a case-by-case basis, at its sole discretion, the provision of additional concessions or incentives consistent with state law and the Housing Element of the City of Brentwood General Plan for Residential Development projects that exceed the requirements of this Chapter.

17.725.007 AFFORDABLE HOUSING IN-LIEU FEE FUND.

A. Creation. In-lieu fees shall be deposited into the Affordable Housing In-Lieu Fee Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund including any interest earnings. Funds shall be disbursed at the discretion of the City Council for the purpose of assisting in the construction of very low, low, and moderate-income Dwelling Units, or helping with other affordable housing opportunities. The Finance Director is authorized to utilize up to 20% of these funds for City housing personnel and administrative costs, in accordance with the approved annual budget.

17.725.008 BRENTWOOD RENTAL HOUSING TRUST FUND.

A. Creation. Net rental income from all rental units dedicated to the City’s rental housing program as described in Section 17.725.004 (D) shall be deposited into a Brentwood Rental Housing Trust Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund including any interest earnings. All Funds other than those specified in Section 17.725.008 (C) shall be utilized to purchase, construct or repair single or multi family rental unit inside the City limits. One half of the rental income may be utilized from time to time at the City Council’s discretion to further the provision of affordable housing in the City of Brentwood so long as sufficient funds remain to pay for the maintenance and operation of existing affordable housing in the City's rental housing program.

C. Withholding. The Finance Director is authorized to withhold 20% of the net proceeds from the rental stream ofutilize these affordable rental units to fund funds for City housing personnel and administrative costs directly related to the management and administration of the Brentwood Rental Housing Trust Fund and program, in accordance with the approved annual budget. The Finance Director is further authorized to withhold up to an additional 15% percent of the net proceeds from the rental stream to reimburse City development fees and agricultural mitigation fees for these units until the City development fee accounts are whole.

17.725.009 FIRST TIME HOMEBUYER FEE FUND.

A. Creation. Contributions to the City's First Time Homebuyer Program in accordance with Section 17.725.004(E) shall be deposited into the First Time Homebuyer Fee Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund, including any interest earnings. All monies in the Fund, other than those specified in Section 17.725.009(C) shall be loaned to First Time Homebuyers that qualify as a Moderate-Income, Low-Income or Very Low-Income Household, in accordance with terms and provisions of the approved First Time Homebuyer Program.

C. Withholding. The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs directly related to the management and administration of the First Time Homebuyer Fund and Program, in accordance with the approved annual budget.

17.725.010 ENFORCEMENT.

A. General. The City shall enforce this Chapter, and its provisions shall be binding on all agents, successors, and assigns of an applicant. The City may suspend or revoke any building permit or approval upon finding a violation of any provision of this Chapter. No land use approval, building permit, or occupancy approval shall be granted for any Residential Development unless it is in compliance herewith, including but not limited to, actions to revoke, deny, or suspend any permit or development approval.

B. Excessive Rents/Legal Action. It shall be unlawful, a public nuisance and a misdemeanor for any person to sell or rent an Affordable Unit at a price or rent exceeding the maximum allowed under this Chapter or to a household not qualified under this Chapter, and such person shall be subject to a $500.00 fine per month from the date of original non-compliance until the Affordable Unit is in compliance with this Chapter. If the City determines that rents in excess of those allowed by operation of this Chapter have been charged to a tenant residing in an affordable rental unit, the City may take appropriate legal action.

C. Violation Abatement. The City of Brentwood City Attorney or the Contra Costa County District Attorney, as appropriate, shall be authorized to abate violations of this Chapter and to enforce the provisions of this Chapter and all implementing regulatory agreements and affordability controls placed on Affordable Units by civil action, injunctive relief, and any other proceeding or method permitted by law. Remedies provided for herein shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

17.725.010011 APPEAL.

A. A developer of any project subject to the requirements of this Chapter may appeal to the City Council for a reduction, adjustment, or waiver of its requirements based upon the absence of any reasonable relationship or nexus between the impact of the Residential Development and the amount of the affordable housing requirement.

B. Any such appeal shall be made in writing and filed with the housing manager along with the applicable administrative fee for processing costs as set forth by city council resolution no later than 10 days before the first public hearing on any discretionary approval or permit for the development, or if no such discretionary approval or permit is required, or if the action complained of occurs after the first public hearing on such permit or approval, then the appeal shall be filed within 10 days after payment of the fees objected to. The appeal shall set forth in detail the factual and legal basis for the claim of waiver, reduction, or adjustment. The City Council shall consider the appeal at the public hearing on the permit application or at a separate hearing within 60 days after the filing of the appeal, whichever is later. The appellant shall bear the burden of presenting substantial evidence to support the appeal including comparable technical information to support appellant’s position. A waiver of an affordable housing requirement may only be approved by the City Council if the developer demonstrates that there is no nexus between the proposed project and its impact upon the City's provision of affordable housing. The decision of the Council shall be final. If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment, or reduction of the affordable housing requirement.

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF BRENTWOOD AMENDING IN PART CHAPTER 17.725 OF THE CITY OF BRENTWOOD MUNICIPAL CODE AND ORDINANCE NO. 790 RELATING TO THE CITY’S AFFORDABLE HOUSING PROGRAM

WHEREAS, the City Council of the City of Brentwood adopted Ordinance No. 790 on January 11, 2005, amending in its entirety Chapter 17.725 of the City of Brentwood Municipal Code regarding the City's Affordable Housing Program.

WHEREAS, the City Council has determined that minor modifications to Chapter 17.725 and Ordinance No. 790 will assist in the implementation of the City's Affordable Housing Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BRENTWOOD DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby finds that the impacts of this Ordinance are substantially consistent with the type and intensity of impacts analyzed in the previously adopted negative declaration for the City's ordinance adopting Chapter 17.725 of the City of Brentwood Municipal Code, and that there are no new significant impacts or any substantial increase in the severity of previously identified significant impacts identified with the proposed Ordinance. Therefore, pursuant to California Environmental Quality Act (CEQA) Guidelines section 15162, there is no need to prepare a subsequent negative declaration.

SECTION 2. Section 17.725.002 is hereby amended by adding subsection (D) as follows and re-lettering the remainder of Section 17.725.002:

"D. Custom Home Development means any Residential Development being subdivided by one party and sold as individual lots or parcels to separate owners for construction and development of Dwelling Units."

SECTION 3. The first sentence of subsection (A) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"A. Applicability. This Chapter shall apply to all new Residential Developments of five or more lots or Dwelling Units designed and intended for residential occupancy in the City's Planning Area."

SECTION 4. The first sentence of subsection (B) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"B. Ten Percent Affordability Requirement. Developers of Residential Developments of five or more lots or Dwelling Units designed and intended for residential occupancy shall construct or make possible the construction of a minimum of ten percent (10%) of the total number of Dwelling Units within the Residential Development as Affordable Units, allocated to income levels as set forth in this Chapter, or as provided in an Affordable Housing Agreement which specifies the means of satisfying this Chapter, or as specified by State Redevelopment Law (Health and Safety Code § 33413)."

SECTION 5. Subsection B(1) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"1. Residential Developments of Five to Nine Dwelling Units. Developers of Residential Developments consisting of five to nine Dwelling Units may either construct one low-income Affordable Unit, pay an In-Lieu Fee at the low-income level, as established by Resolution of the City Council, or provide an alternative equivalent as established in this Chapter. However, if all or any portion of a Residential Development of Five to Nine Dwelling Units is later resubdivided into ten or more parcels or Dwelling Units, the City's affordable housing requirement may not be satisfied by payment of an In-Lieu Fee."

SECTION 6. Subsection C(5) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"5. Subdivisions consisting of between one and four lots or Dwelling Units."

SECTION 7. Subsection C(6) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"6. Development of up to four new Dwelling Units on an existing residential lot of record."

SECTION 8. Subsection C(7) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"7. Development of up to three additional Dwelling Units on a lot zoned to accommodate up to a maximum of four units, and which already contains at least one existing unit, provided that the maximum limit of units is maintained."

SECTION 9. Subsection C(9) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted in its entirety.

SECTION 10. Subsection (F) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"F. Concurrent Construction. All Affordable Units in a Residential Development or phase of a Residential Development shall be constructed prior to or concurrently with market-rate units, as set forth, and in the location specified, in a schedule of construction approved by the City and set forth in the Affordable Housing Agreement. The building permits for the last ten percent (10%) of the non-restricted Dwelling Units shall not be issued until the last Affordable Unit has been issued a building permit and construction of the last Affordable Unit has begun."

SECTION 11. Subsection (G) of Section 17.725.003 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"G. Design and Distribution of Affordable Units. All Affordable Units within a Residential Development shall be comparable to the market rate units in exterior design, quality, materials, architectural elements and overall construction quality, as well as number and proportion of bedroom types. All Affordable Units shall include front, side and backyard landscaping. Affordable Units may be smaller in size and have different interior amenities than the market rate units in a Residential Development. Affordable Units shall be dispersed throughout the Residential Development so as to prevent the concentration of Affordable Units, unless the Planning Commission has approved an alternative distribution pattern, or approval of an off-site location has been granted."

SECTION 12. Subsection (A) of Section 17.725.004 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

"A. Approval of Payment of In-Lieu Fees. In-Lieu Fees may be paid for 1) Residential Developments consisting of between five and nine Dwelling Units or 2) the very low-income requirement for a Residential Development consisting of ten or more Dwelling Units. The amount of the In-Lieu Fee shall be as set forth by Resolution of the City Council, which may be amended from time to time to reflect inflation, and changed conditions in the City and the region. In-Lieu Fees for Custom Home Developments shall be paid prior to recordation of the final map for the subdivision creating the lots on which the Dwelling Units will be constructed. In-Lieu Fees for all other developments shall be paid at building permit issuance. The amount of the fee shall be as set forth in the In-Lieu Fee resolution in effect at the time of payment. In-Lieu Fees paid to the City shall be deposited into the Affordable Housing In-Lieu Fee Fund in accordance with Section 17.725.007.

No In-Lieu Fee shall be allowed for rental developments. Developers of rental developments must construct Affordable Units on-site or satisfy the affordable requirements through an alternative equivalent proposal other than payment of In-Lieu Fees."

SECTION 13. Subsection (D) of Section 17.725.004 of the City of Brentwood Municipal Code is hereby amended to add a new subsection (6):

"6. The developer shall pay all recording, escrow and title fees involved in the transfer of title to the City, including the costs of a title policy insuring City's title in a form and with exceptions approved by the City."

SECTION 14. Subsection (B) of Section 17.725.005 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"B. Agreements. Prior to the approval of a Final Map for any Residential Development, or issuance of a building permit for a unit within a Residential Development, to which this Chapter applies, whichever comes first, the City and the residential developer shall enter into an Affordable Housing Agreement in a form approved by the City Attorney. For those Residential Developments for which Affordable Units will be constructed or converted on- or off-site, the Affordable Housing Agreement shall include appropriate Resale Controls and/or Rent Restrictions. For ownership Affordable Units, the City and the individual homebuyer shall be required to enter into a recorded Refinance and Resale Limitation Agreement in a form approved by the City Attorney. The City Manager or his or her designee is authorized to execute Affordable Housing Agreements, Resale Controls and/or Rent Restrictions and any other documents necessary to effectuate the implementation of this Chapter, provided such agreements and documents are consistent with the requirements of this Chapter."

SECTION 15. Subsection (G) of Section 17.725.005 of the City of Brentwood Municipal Code is hereby deleted in its entirety.

SECTION 16. Subsection (A) of Section 17.725.007 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

“A. Creation. In-lieu fees shall be deposited into the Affordable Housing In-Lieu Fee Fund, which is part of the Housing Enterprise.”

SECTION 17. The last sentence of subsection (B) of Section 17.725.007 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

". . . . The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs, in accordance with the approved annual budget."

SECTION 18. Subsection (A) of Section 17.725.008 of the City of Brentwood Municipal Code is hereby deleted and replaced with the following:

“A. Creation. Net rental income from all rental units dedicated to the City’s rental housing program as described in Section 17.725.004(D) shall be deposited into a Brentwood Rental Housing Trust Fund, which is part of the Housing Enterprise.”

SECTION 19. Subsection (C) of Section 17.725.008 of the City of Brentwood Municipal Code is hereby deleted in its entirety and replaced with the following:

"C. Withholding. The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs directly related to the management and administration of the Brentwood Rental Housing Trust Fund and program, in accordance with the approved annual budget. The Finance Director is further authorized to withhold up to 15 percent of the net proceeds from the rental stream to reimburse City development fees and agricultural mitigation fees for these units until the City development fee accounts are whole."

SECTION 20. Section 17.725.009, First Time Homebuyer Fund, is hereby added to the City of Brentwood Municipal Code, with renumbering of the following sections, as follows:

"17.725.009 FIRST TIME HOMEBUYER FUND.

A. Creation. Contributions to the City's First Time Homebuyer Program in accordance with Section 17.725.004(E) shall be deposited into the First Time Homebuyer Fund, which is part of the Housing Enterprise.

B. Use. The Finance Director shall administer all monies in this Fund, including any interest earnings. All monies in the Fund, other than those specified in Section 17.725.009(C) shall be loaned to First Time Homebuyers that qualify as a Moderate-Income, Low-Income or Very Low-Income Household, in accordance with terms and provisions of the approved First Time Homebuyer Program.

C. Withholding. The Finance Director is authorized to utilize these funds for City housing personnel and administrative costs directly related to the management and administration of the First Time Homebuyer Fund and Program, in accordance with the approved annual budget."

SECTION 21. Subsection 2 of Section 5 of Ordinance No. 790 is hereby deleted and replaced with the following:

"2. The Developer of any Residential Development of four or more units with either: (a) an application for a Residential Growth Management Program allocation that has been deemed complete by the City between October 9, 2003, and February 10, 2005, the effective date of Ordinance No. 790; or (b) a vesting tentative map or development agreement approved between October 9, 2003, and February 10, 2005, shall, in accordance with the City's practice in effect prior to February 10 2005, either:

1. Construct half of ten percent of the total number of Dwelling Units within the Residential Development as Affordable Units, 70 percent of which shall be affordable to low income households and 30 percent of which shall be affordable to very low income households; or

2. If the Residential Development's average lot size exceeds 8500 square feet, pay the in-lieu fee in effect at time of building permit issuance for half of ten percent of the total number of Dwelling Units within the Residential Development, 70 percent of which shall be the amount in effect for low income households and 30 percent of which shall be the amount in effect for very low income households."

SECTION 22. All other terms and provisions of Ordinance No. 790 shall remain in full force and effect.

SECTION 23. This Ordinance shall be published in accordance with Government Code Section 36933 by either posting or publishing the Ordinance in accordance with that law. Further, the City Clerk is directed to cause Sections 2 through 20 of this Ordinance to be entered in the City of Brentwood Municipal Code. This Ordinance shall take effect and be in force 30 days following its adoption and, prior to the expiration of 15 days after its adoption, it shall be published once with the names of the council members voting for and against it in a newspaper of general circulation, available in the City of Brentwood.

SECTION 24. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, the holding shall not affect the validity or enforceability of the remaining provisions, and the council declares that it would have adopted each provision of this ordinance irrespective of the validity of any other provision.

THE FOREGOING ORDINANCE was introduced at a regular meeting of the Brentwood City Council on the ______ day of _______, 2006, by the following vote:

AYES:
NOES:
ABSENT:
ABSTAIN :

And was adopted at a regular meeting of the Brentwood City Council on the ___ day of _______, 2006, by the following vote:

AYES:
NOES:
ABSENT:
ABSTAIN:



Mayor


ATTEST:





City Clerk

 

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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