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Home My WebLink About10-ATTACHMENT B (RESOLUTION NO 18-28)RESOLUTION NO. 18-28 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN ADOPTING THE INCLUSIONARY HOUSING IN -LIEU FEE AND INCORPORATING THE FEE INTO THE CITY'S COMPREHENSIVE SCHEDULE OF FEES The City Council of the City of Tustin hereby finds, determines and declares as follows.. A. Tustin City Code Chapter 9B — Inclusionary Housing requires developers to provide affordable housing units in conjunction with new residential projects involving an application to (1) rezone a property from an industrial or commercial district to a residential district, (2) change a property's zoning designation from one lower density residential district to another higher - density residential district, or (3) to develop residential uses within a specific plan area by means of a Residential Allocation Reservation; and B. The City's inclusionary housing unit requirements may be satisfied in whole, or in part, by the payment to the City of an inclusionary housing in -lieu fee, as may be established by resolution of the City Council; and C. The City retained Keyser Marston Associates ("KMA") to analyze and provide recommendations on the fees residential developers should have to pay in lieu of providing affordable housing units; and D. The May 22, 2017 report prepared by KMA ("KMA Report"), retained on file by the City Clerk and incorporated herein, recommends an inclusionary housing in -lieu fee of $17,600 per ownership or rental unit or, alternatively, $17 per square foot of gross building area for projects that include twenty or more residential units; and E. The City may, at its discretion, set the in -lieu fee at less than the amount recommended by the KMA Report; and F. Based on the recommendations of the KMA Report, and in an effort to provide an equitable in -lieu fee option to residential developers, and to account for the economics of varying project sizes, the City Council finds appropriate the adoption of an inclusionary housing fee ranging from $8,000/unit (projects consisting of 1-4 units) to $12,000/unit (projects consisting of 20 units or more); where the average size of units in a project is less than 800 square feet, a fee ranging from $10/sq ft (projects consisting of 1-4 units) to $15/sq ft (projects consisting of 20 or more units) would apply; and 1306731.1 G. The proposed inclusionary housing fee is reasonably related to the cost of providing the affordable units foregone by a developer's election to pay the fee in lieu of providing affordable housing units; and H. All in -lieu fee monies will be placed in the City's inclusionary housing fund and expended exclusively to provide affordable housing to extremely low, very low, low, and moderate income households in the City of Tustin, and for administration and compliance monitoring of the inclusionary housing program; and On September 2, 2008, the City Council adopted Resolution No. 08-60, amending the City-wide Comprehensive Schedule of Fees; and J. It is not the City Council's intention to repeal previously adopted fees but to incorporate the inclusionary housing in -lieu fee into the City-wide Comprehensive Schedule of Fees; and K. A Public Hearing was held on April 17, 2018 in accordance with Government Code sections 66004 and 66016, at which oral or written presentations could be made, as part of the regularly scheduled meeting and a Notice of the Public Hearing was published pursuant to Government Code section 6062(a); and L. Evidence, both written and oral, was duly presented to and considered by the City Council at the aforesaid public hearing; and M. The proposed resolution is not subject to the California Environmental Quality Act (CEQA) because it involves the creation of a government funding mechanism expressly excluded from CEQA's definition of "project." (CEQA Guidelines 15352) Even if the resolution where construed to be a project, it can be seen with certainty that there is no possibility that the resolution may have a significant effect on the environment and thus falls within CEQA's "common sense" exemption. (CEQA Guidelines § 15061(b)(3).) II. The City Council hereby does resolve as follows: A. The inclusionary housing in -lieu fee, attached hereto as Exhibit "A" is adopted and incorporated into the City's Comprehensive Schedule of Fees. B. This Resolution shall become effective concurrently with the effective date of Ordinance No. 1491, adding Chapter 9B — Inclusionary Housing — to the Tustin City Code. Resolution 18-28 Page 2 of 3 1306731.1 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 17th day of April, 2018. ELWYN A. MURRAY Mayor ATTEST: ERICA N. RABE City Clerk STATE OF CALIFORNIA ORANGE COUNTY CITY OF TUSTIN I, Erica N. Rabe, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and forgoing Resolution No. 18-28 was duly passed and adopted at a regular meeting of the City Council of the City of Tustin, held on April 17, 2018, by the following vote: BOARDMEMBER AYES: BOARDMEMBER NOES: BOARDMEMBER ABSTAINED: BOARDMEMBER ABSENT: ERICA N. RABE CITY CLERK Resolution 18-28 Page 3of3 1306731.1 EXHIBIT A INCLUSIONARY HOUSING IN -LIEU FEE # of Units Fee per Unit Fee per square foot, if average unit than 800 square feet size is less • '• 111 ' • ' 111 ' 1 units or • - 111 Note: If the average size of the units is less than 800 square feet, then the fee in the right column is applied. The fee is paid at the time the applicant pulls permits. Beginning January 2019 and annually, hereafter, the fee will be adjusted using the Consumer Price Index (CPI)i for the Los Angeles - Riverside -Orange County, CA Metropolitan Statistical Area. The 2019 calculation will use the annual percent change from December 2018. The CPI is typically released 10-15 days into the following month. In each new year, the previous year's fee shall apply for any project approved before the CPI calculation is released and the In -Lieu fee adjusted accordingly. EXAMPLE: 2019 Approval — 2018 In -Lieu Fee • January 8, 2019 — December 2018 annual CPI has not been released • January 8, 2019 — Project approved, 2018 Inclusionary Housing In -Lieu Fee applies 2019 Approval — 2019 In -Lieu Fee • January 11, 2019 —December 2018 annual CPI released and the 2019 Inclusionary Housing In -Lieu Fee is calculated • January 22, 2019 — Project approved, 2019 Inclusionary Housing In -Lieu Fee is applied 1 "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for All items in Los Angeles -Riverside- Orange County, CA, all urban consumers, not seasonally adjusted" index (Series Id: CLURA421SAO), measured as of the month of December in the calendar year that ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the City Manager that is reasonably comparable to the Consumer Price Index. 1306731.1