O 514 C.S.
ORDINANCE NO. 514 C.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, AMENDING TITLE 9 OF THE ARROYO GRANDE
MUNICIPAL CODE BY ADDING THERETO A CHAPTER 19 ENTITLED
"AFFORDABLE HOUSING REQUIREMENTS"
WHEREAS, the City of Arroyo Grande has a responsibility, pursuant to California state
law (Health and Safety Code sections 50000 et seq.), to address the needs of its
residents, as well as residents in the region, from all social and economic groups for
decent, affordable housing, while at the same time maintaining an economically sound
and healthy environment; and
WHEREAS, the Housing Element of the General Plan of the City of Arroyo Grande
adopted on June 22, 1993, provides for affordable housing programs to address the
needs for decent and affordable housing; and
WHEREAS, according to the 1990 census, 36% of all Arroyo Grande households (or
2,092 households which equate to 5,188 residents) are of low or moderate income; and
WHEREAS, according to the 1990 census, the median sales price of a house in Arroyo
Grande was $207,700 which is indicative of the high cost of housing and limited ability
for low income households to own homes in Arroyo Grande without assistance; and
WHEREAS, the City Council finds that the majority of new housing units being
constructed in the City of Arroyo Grande are not affordable to persons of low income,
and that the current requirements placed on new housing developments are inadequate
to assure sufficient numbers of new housing units are available to persons of low
income; and
WHEREAS, the City of Arroyo Grande has conducted environmental review for
adoption of an ordinance establishing procedures to provide for the development of
affordable housing in the City of Arroyo Grande, and has found that it can be seen with
certainty that there is no possibility that the proposed affordable housing requirements
will have an effect on the environment and therefore is exempt from the provisions of
CEQA; and
WHEREAS, the City Council has reviewed and considered the information in the
proposed document and staff report, as well as public testimony presented at the
hearing and make the following findings of fact:
A. The proposed affordable housing requirements are consistent with the goals,
objectives, policies, and programs of the General Plan, and are necessary and
desirable to implement the provisions of the General Plan.
B. The proposed affordable housing requirements will not adversely affect the public
health, safety, and welfare or result in an illogical land use pattern.
ORDINANCE NO. 514 C.S.
PAGE 2
C. The proposed affordable housing requirements are consistent with the purpose
and intent of Title 9.
D. The potential environmental impacts of the proposed affordable housing require-
ments are insignificant.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
DOES ORDAIN AS FOLLOWS:
SECTION 1: Arroyo Grande Municipal Code Title 9 is hereby amended to add Chapter
19 to read as follows:
CHAPTER 19
AFFORDABLE HOUSING REQUIREMENTS
Section 9-19.010 Purpose.
To provide a continuing supply of affordable housing units to meet the
needs of existing and future Arroyo Grande residents in all income
categories pursuant to the requirements of California state law, and as
outlined in the City's adopted Housing Element.
Section 9-19.020 Definitions.
The definitions of this section and of Chapter 9-18 shall govern this
Chapter.
"Affordable housing units": Units governed by a legal covenant or other
restriction enforceable by the City restricting the availability of said units to
lower income and very low income residents, which units are rented or
sold to lower income or very low income households, as defined in this
su bsection.
"Developer": An applicant for an approval or a permit required for a
residential subdivision or to construct a residential development project.
"Housing unit": One or more rooms, designed, occupied, or intended for
occupancy as separate living quarters, with full cooking, sleeping, and
bathroom facilities for the exclusive use of a single household.
"Lower income households": Those households defined in section
50079.5 of the California Health and Safety Code.
.
ORDINANCE NO. 514 C.S.
PAGE 3
"In-Lieu Fee": A fee paid to the City by a developer subject to this Chapter
in lieu of providing the required affordable housing units.
"Project": A residential development or land subdivision proposal for
which City permits and approvals are required.
"Very Low Income Household": Those households defined in section 50105
of the California Health and Safety Code.
Section 9-19.030 Applicability.
This Chapter shall apply to any residential development project or the
construction of such project or any portion thereof, and shall also apply to
any development that results from the conversion of any square footage
from an exempt use to a non-exempt use.
Section 9-19.040 Provision of Housing, In-Lieu Fee, or Dedication of
Land.
The developer shall meet affordable housing requirements by providing
on-site affordable housing units meeting the standards set forth in this
Chapter, or paying a fee in lieu of providing such housing, or dedicating
land to the City to be used for development of affordable housing.
Payment of an in-lieu fee or the dedication of land shall be allowed
pursuant to this Chapter if the City Council finds that any of the following
circumstances apply:
A. The provision of the required affordable housing units on the site is
impractical for physical reasons, including but not limited to the
following: utility infrastructure limitations, traffic safety or traffic
capacity limitations, site design constraints which preclude the
development of the property to City standards at the density
permitted pursuant to the General Plan or zoning district in which
the property is located; or
The City Council determines that the payment of in-lieu fees or the
dedication of land will provide a superior opportunity to satisfy the
goals and policies of the General Plan; or
The payment of in-lieu fees or the dedication of land to the City will
provide an equivalent level of mitigation to that of on-site production
of the required affordable housing units.
ORDINANCE NO. 514 C.S.
PAGE 4
Section 9-19.050 Calculation of Housing or In-Lieu Fee.
Projects must provide for the number of affordable housing units as set
forth below.
In all cases where, at the property owner's request, the City Council
amends the General Plan and/or zoning designation of a property, which
results in an increase in the allowable residential density above that
authorized by the adopted version of the City's General Plan and/or
Zoning Map, the requirement shall be as follows:
1. At least 25% of the units or lots approved for development
on the subject property shall be affordable for lower income
households; or
2. Payment of an in-lieu fee equivalent to 2.5% of the value of
new construction for each unit within the development as
computed for building permit purposes.
3. Projects where fewer than 12 units are allowed after amend-
ment of the General Plan and/or rezoning increasing the
allowable density of the affected property shall be subject to
payment of an in-lieu fee equivalent to 2.5% of the value of
new construction for each unit within the development as
computed for building permit purposes.
B. In all other cases, the requirement shall be as follows:
1. Projects of less than 25 units shall pay an in-lieu fee equiva-
lent to 1 % of the value of new construction for each unit
within the development as computed for building permit
purposes.
2. Projects of 25 to 49 units.
a. Provide at least 5% of the units or lots as affordable to
lower income households. In all such cases the
developer shall be entitled to a density bonus of 5% of
the allowable density for the property; or
b. Pay an in-lieu fee equivalent to 1 % of the value of the
new construction for each unit within the development
as computed for building permit purposes.
ORDINANCE NO. 514 C.S.
PAGE 5
3. Projects of 50 or more units.
a. Provide at least 10% of the units or lots as affordable
to lower income households. In all such cases the
developer shall be entitled to a density bonus of 10%
of the allowable density for the property; or
b. Pay an in-lieu fee equivalent to 1 % of the value of the
new construction for each unit within the development
as computed for building permit purposes.
4. Projects subject to Section 9-19.050 B.2. and B.3. may meet
the requirements of this Chapter by dedicating land to the
City when land dedication is deemed suitable by the City
Council, pursuant to Section 9-19.040. Such land shall be
offered in fee to the City or to another public or non-profit
agency approved by the City.
5. Projects of four (4) or fewer units or lots shall be excepted
from the provisions of this Chapter.
Section 9-19.060 Implementation.
1. A written housing development agreement, in a form approved by
the City, shall be entered into between the City and the developer
prior to final approval of a subdivision map, or < issuance of a
building permit, as applicable. This agreement will set forth the
developer's plan to meet the requirements of this Chapter, and the
City's approval of that plan.
2. All affordable housing units in a project and phases of a project
shall be constructed concurrently with or prior to the construction of
other units, unless the City finds that extenuating circumstances
exist.
3. All affordable housing units shall be sold or rented to lower income
or very low income households as certified by the Housing
Authority of the City of San Luis Obispo or such other entity
approved by the City Council, and shall remain affordable for a term
of not less than thirty (30) years.
4. Unless the City finds compelling reasons to the contrary, the
affordable housing units shall be reasonably dispersed throughout
the development, shall contain on average the same number of
ORDINANCE NO. 514 C.S.
PAGE 6
bedrooms as the other units in the development, and shall be
compatible with the design of the market rate units in terms of
appearance, materials, and finished quality.
5. The in-lieu fees shall be paid to the City prior to issuance of any
grading or building permit. Payment may be made for each phase
of a phased project before the issuance of the grading or building
permit for such phase, as applicable.
6. If the number of units required for a project includes a fraction of a
unit, the developer shall provide either a whole unit or a pro-rata in-
lieu payment on account of such fraction of a unit.
Section 9-19.070 Affordable Housing Trust Fund - Establishment.
Fees paid pursuant to this Chapter shall be deposited in the Affordable
Housing Trust Fund and used solely to increase the supply of affordable
housing units.
Section 9-19.080 Affordable Housing Trust Fund - Administration.
The Affordable Housing Trust Fund shall be administered under the
general supervision of the Community Development Director, and
pursuant to such rules, regulations, and guidelines as the City Council
shall adopt and/or amend from time to time. The Community
Development Director shall make annual reports to the City Council
regarding the administration and status of the Affordable Housing Trust
Fund.
Section 9-19-090 Project Approvals.
No new housing project, residential subdivision, general plan amendment
and/or rezoning of land for residential purposes, or other land use
authorization related thereto, may be approved unless the requirements of
this Chapter have been met.
Section 9-19-100 Guidelines.
The City Council shall adopt guidelines for the operation of the Affordable
Housing Trust Fund.
SECTION 2: The City Council hereby directs the Director of Administrative
Services/Deputy City Clerk to file a "Notice of Exemption" with the County Recorder.
ORDINANCE NO. 514 C.S.
PAGE 7
SECTION 3: If any section, subsection, subdivision, paragraph, sentence, clause or
phrase of this Ordinance or any part thereof is for any reason held to be unconstitu-
tional, such decision shall not affect the validity of the remaining portion of this
Ordinance or any part thereof. The City Council hereby declares that it would have
passed each section, subsection, subdivision, paragraph, sentence, clause or phrase
thereof, irrespective of the fact that anyone or more section, subsection, subdivision,
paragraph, sentence, clause or phrases be declared unconstitutional.
SECTION 4: A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full
text of the proposed Ordinance shall be posted in the office of the Director of
Administrative Services/Deputy City Clerk. Within fifteen (15) days after adoption of the
Ordinance, the summary with the names of those City Council members voting for and
against the Ordinance shall be published again, and the Director of Administrative
Services/Deputy City Clerk shall post a certified copy of the full text of such adopted
Ordinance.
SECTION 5: This Ordinance shall take effect thirty (30) days after its final passage.
On motion of Council Member Ferrara, seconded by Council Member Runels, and on
the following roll call vote, to-wit:
AYES: Council Members Ferrara, Runels, Tolley, Dickens, and Mayor lady
NOES: None
ABSENT: None
the foregoing Ordinance was adopted this 28th day of March, 2000.
ORDINANCE NO. 514 C.S.
PAGE 8
MICH:~~
ATTEST:
[0/1 I. J L ~IUOLZ_
KELL Y W TMQ'RE, DIRECTOR OF ADMINISTRATIVE SERVICESI
. v DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
~TE~R
APPROVED AS TO FORM:
OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of perjury, that the attached Ordinance No. 514 C.S.
is a true, full, and correct copy of said Ordinance passed and adopted at a
regular meeting of the City Council of the City of Arroyo Grande on the 28th day
of March, 2000.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 31st
day of March, 2000.
, ~ I f
~' I .1
'}jv1 1 ~Lv-lUOI 'J
.-
KELLY W TMORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY- CLERK