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CITY COUNCIL AGENDA ITEM NO. 18

Meeting Date: May 8, 2007

Subject/Title: Waive second reading and adopt Ordinance 842 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
Kwame Reed, Senior Housing Analyst

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Staff recommends that the City Council waive the second reading and adopt Ordinance 842 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
On January 9, 2007 the agendized public hearing before the City of Brentwood City Council for this item was continued to March 13, 2007.

On March 13, 2007 the Council public hearing for this item was continued to April 24, 2007.

On April 17, 2007, the City of Brentwood Planning Commission approved Resolution No. 07-033 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.

At its meeting of April 24, 2007, the City Council introduced and waived the first reading 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.

BACKGROUND

At its meeting of April 24, 2007, the City Council introduced and waived the first reading of Ordinance No 842. The new Ordinance will make minor revisions to Ordinance 790 and also codify certain practices. As staff negotiated with developers of small lot subdivisions it became clear 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 or, if a custom lot developer had an approved application at the time of the adoption of this revised ordinance, the in-lieu fee could be paid at the issuance of the first building permit.

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.

FISCAL IMPACT

The approval of this amendment will create a “First Time Homebuyer Fund”. This fund will include all contributions made by developer’s in-lieu of constructing moderate homes. The ordinance revision requires that twenty percent of the amount of contributions collected each fiscal year shall be used towards the costs of administering the programs of the housing division. All other proposed amendments are currently being practiced by staff, so the proposed amendments will codify the current practices.

Attachment:
Ordinance No. 842

ORDINANCE NO. 842

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. 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 18. 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 up to 20 percent of these funds for City housing personnel and administrative costs directly related to the management and administration of the First Time Homebuyer Fund and Program."

SECTION 19. 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 five 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 20. The Developer of any Custom Home Subdivision that elects to pay an In-Lieu Fee and that has an application deemed complete as of the effective date of this ordinance shall, in accordance with the City’s practice prior to the effective date of this ordinance, pay the In-Lieu Fee at building permit issuance.

SECTION 21. All other terms and provisions of Ordinance No. 790 shall remain in full force and effect.

SECTION 22. 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 19 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 23. 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 _______, 2007, by the following vote:

AYES:
NOES:
ABSENT:
ABSTAIN :

And was adopted at a regular meeting of the Brentwood City Council on the ___ day of _______, 2007, by the following vote:

AYES:
NOES:
ABSENT:
ABSTAIN:

Mayor

ATTEST:
City Clerk
 

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