HomeMy WebLinkAboutCC RES 18-28RESOLUTION NO. 18-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN
ADOPTING THE WORKFORCE HOUSING INCENTIVE PROGRAM
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 — Workforce Housing Incentive Program
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 workforce housing incentive program unit requirements may be
satisfied in whole, or in part, by the payment to the City of an workforce
housing incentive program 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 such an 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 a workforce housing incentive program in -lieu
fee ranging from $8,000/unit (projects consisting of 1-4 units) to
Resolution No. 18-28
Page 1 of 4
$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 for projects for which applications
have been received but not yet deemed complete by the City on or before
April 17, 2018, a fee of $8/ sq ft would apply; and
G. The proposed workforce housing incentive program 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 workforce housing incentive
program 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 workforce
housing incentive program 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
add the workforce housing incentive program 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:
Resolution 18-28
Page 2 of 4
A. The workforce housing incentive program in -lieu fee for projects for which
applications have been received but not yet deemed complete by the City
on or before April 17, 2018, a fee of $8/ sq ft would apply.
B. For projects received after April 17, 2018, the workforce housing incentive
program in -lieu fee, attached hereto as Exhibit "A" is adopted and
incorporated into the City's Comprehensive Schedule of Fees.
C. This Resolution shall become effective concurrently with the effective date
of Ordinance No. 1491, adding Chapter 9B — Workforce Housing Incentive
Program — to the Tustin City Code.
PASSED AND ADOPTED at a regular meeting_Qf the City,G�uncil of the City of Tustin
held on the 17th day of April, 2018. (- � )
ELWYN A
Mayor
ATTEST:
ERICA N. RABE,
City Clerk
Resolution 18-28
Page 3 of 4
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:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
A4 -
ERICA N. RABE,
City Clerk
Murray Gomez Puckett, Bernstein, Clark (5)
(0)
(0)
Resolution 18-28
Page 4 of 4
EXHIBIT A
WORKFORCE HOUSING INCENTIVE PROGRAM IN -LIEU FEE
Of Units
Fee per Unit Fee per square foot.
than 800
if a%-erage unit size is less
square feet
•
', 111
1 units or more111
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)l 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 Workforce Housing Incentive Program In -Lieu
Fee applies
2019 Approval — 2019 In -Lieu Fee
• January 11, 2019 —December 2018 annual CPI released and the 2019 Workforce
Housing Incentive Program In -Lieu Fee is calculated
• January 22, 2019 — Project approved, 2019 Workforce Housing Incentive Program In -
Lieu Fee is applied
"'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: CUURA421 SAO), 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.
Resolution 18-28
Exhibit A