HomeMy WebLinkAboutORD 1320 (2006)
ORDINANCE NO. 1320
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, AMENDING ARTICLE 9,
CHAPTER I, GOVERNING INCENTIVES FOR THE
DEVELOPMENT OF AFFORDABLE HOUSING
The City Council of the City of Tustin hereby ordains as follows:
SECTION 1. PURPOSE.
The Purpose of this ordinance is to amend the City's Affordable Housing
Development Incentive provisions: (1) to comply with the California Legislature's
2005 Amendment of Government Code Section 65915 governing incentives for
lower income housing units; and (2) to comply with other changes in state law
applicable to affordable housing.
SECTION 2.
Chapter 1 of Article 9 of the Tustin Municipal Code. Title 9, Chapter 1, of the
Tustin Municipal Code entitled, Incentives for the Development of Affordable
Housing, is hereby amended in its entirety as set forth below:
CHAPTER I
INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
CHAPTER INDEX
PART I GENERAL
9111 PURPOSE AND INTENT
9112 DEFINITIONS
PART 2 IMPLEMENTATION AND INCENTIVES
9121 IMPLEMENTATION
9122 DENSITY BONUS
9123 INCENTIVES OR CONCESSIONS
9124 WAIVER
9125 OPTIONAL ADDITIONAL ASSISTANCE
PART 3 DEVELOPMENT REQUIREMENTS
9131 STANDARD REQUIREMENTS
PART 4 APPLICATION AND REVIEW
9141 APPLICATION REQUIREMENTS AND REVIEW
9142 HOUSING INCENTIVE AGREEMENT
Page 1
CHAPTER I
INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
PART I GENERAL
9111 PURPOSE AND INTENT
The purpose of this Chapter is to provide incentives for the production of housing
for very low-, low-, moderate-income, or senior citizens in accordance with California
Law pertaining to density bonuses. The intent of this Chapter is to facilitate the
development of affordable housing and to implement the goals, objectives, and policies
of the City's Housing Element.
The regulations and procedures set forth in this Chapter shall apply throughout
the City with the exception of area identified as the "MCAS Tustin Specific Plan."
Sections of the California Government Code referenced in this Chapter and application
forms for complying with this Chapter, shall be made available to the public.
9112 DEFINITIONS
Whenever the following terms are used in this Chapter, they shall have the
meaning established by this section:
"Affordable Housing Cost", means as defined in Health and Safety Code Section
50052.5. The term applies to for-sale units. In the Housing Incentive Agreement, in its
sole discretion, the City or Agency, as applicable, shall exercise the options specified in
Section 50052.5(b)(3) and/or (4), and if the Department of Housing and Community
Development adopts regulations pursuant to Section 50052.5(c), the City or Agency, as
applicable, shall consider the regulations for purposes of determining Affordable
Housing Cost.
"Affordable Rent" means as defined in Health and Safety Code Section 50053.
The term applies to rental units.
"Agency" means the Tustin Community Redevelopment Agency.
"Applicant" means a developer or owner who desires to construct five or more
dwelling units.
"Child Care Facility" means a child day care facility other than a family day care
home, including, but not limited to, infant centers, preschools, extended day care
facilities, and school age child care centers.
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"Common Interest Development" means a community apartment project, a
condominium project, a planned development, or a stock cooperative as defined in
Section 1351 of the Civil Code.
"Concession or Incentive" means the concession(s) and incentive(s) as specified
in California Government Code Section 65915(1) and Section 9123.
"Density Bonus" means a density increase over the otherwise Maximum
Allowable Residential Density, (unless the Applicant elects to develop a lower
percentage) for a Housing Development meeting the criteria of Section 9121.
"Density Bonus Units" means those residential units granted pursuant to the
provisions of this Chapter which exceed the otherwise Maximum Allowable Residential
Density for the development site. When calculating the number of permitted Density
Bonus units, any fractions of units shall be rounded to the next whole number.
"Development Standards" means site or construction conditions that apply to a
residential development pursuant to any ordinance, general plan element, specific plan,
or other local condition, law, policy, resolution, or regulation.
"Director' means the City's Director of Community Development or designee.
"Housing Development" means construction projects consisting of five (5) or
more residential units, including single family and multi- family units for sale or for rent.
"Housing Development" also includes a subdivision or Common Interest Development,
approved by the City and consists of residential units or unimproved residential lots and
either a project to substantially rehabilitate and convert an existing commercial building
to residential use or the substantial rehabilitation of an existing multifamily dwelling, as
defined in subdivision (d) of Section 65863.4 of the Government Code, where the result
of the rehabilitation would be a net increase of at least five (5) or more residential units.
"Housing Incentive Agreemenf' means a legally binding agreement between an
Applicant and the City and/or the Agency to ensure that the requirements of this
Chapter are satisfied. The agreement among other things shall establish the number of
Target Units, size, location, terms and conditions of affordability, production schedule,
and may be part of a larger Disposition and Development or Regulatory Agreement.
"Low Income Household" means households whose income does not exceed the
lower income limits applicable to Orange County, as published and periodically updated
by the State Department of Housing and Community Development pursuant to Section
50079.5 of the State California Health and Safety Code.
"Maximum Allowable Residential Density" means the maximum number of
residential units permitted by the Land Use Element of the City's General Plan and
Zoning Ordinance, with the exception of the MCAS Tustin Specific Plan, excluding the
Density Bonus allowed by this Chapter.
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"Non-Restricted Unif' means all units within a Housing Development excluding
the Target Units.
"Persons and Families of Moderate Income" means persons and families of low
or moderate income whose income exceeds the income limit for lower income
households and as defined in Health and Safety Code section 50093.
"Persons and families of Low or Moderate Income" means persons and families
whose income does not exceed 120 percent of area median income adjusted for family
size by the State Department of Housing and Community Development in accordance
with adjustment factors adopted and amended from time to time by the United States
Department of Housing and Urban Development pursuant to Section 8 of the United
States Housing Act of 1937.
"Senior Citizen" means, a person 62 years of age or older, or 55 years of age
living in a Senior Citizen Housing Development.
"Senior Citizen Housing Development" means, as more fully defined in Civil Code
Section 51.3 and 51.12, a residential development developed, substantially
rehabilitated, or substantially renovated for Senior Citizens that has at least 35 dwelling
units.
'Target Unit(s)" means a dwelling unit(s) within a Housing Development which
will be reserved for sale or rent to, and is made available at an Affordable Rent or
Affordable Housing Cost to very low, low, or moderate households, or is(are) units in a
senior Housing Development.
"Very Low Income Households" means households whose income does not
exceed the very low income limits applicable to Orange County, as published and
periodically updated by the State Department of Housing and Community Development
pursuant to Section 50105 of the California Health and Safety Code.
PART 2 IMPLEMENTATION AND INCENTIVES
9121 IMPLEMENTATION
A Housing Development meeting the requirements of this section is eligible for a
Density Bonus. The granting of a Density Bonus shall not be interpreted, in and of itself,
to require a general plan amendment, zoning change, or other discretionary approval.
(a) The City shall grant one Density Bonus, the amount of which shall be as
specified in Section 9122, and a Concession(s) or Incentive(s), as
described in Section 9123, when an Applicant seeks and agrees to
construct a Housing Development, excluding any units permitted by the
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Density Bonus awarded pursuant to this Chapter, that will contain at least
anyone of the following:
(1) Ten (10) percent of the total units of the Housing Development as
Target Units affordable to Low Income Households; or
(2) Five (5) percent of the total units of the Housing Development as
Target Units affordable to Very Low Income Households; or
(3) Senior Citizen Housing Development or mobile home park that
limits residency based on age requirements for housing for older
persons pursuant to Section 798.76 or 799.5 of the Civil Code; or
(4) Ten (10) percent of the total units in a Common Interest
Development for Persons and Families of Moderate Income,
provided that all units in the development are offered to the public
for purchase.
(5) For purposes of calculating the amount of the Density Bonus
pursuant to Section 9121, the Applicant who requests the Density
Bonus pursuant to this subsection shall elect whether the bonus
shall be awarded on the basis of subparagraph (1), (2), (3), or (4) of
this subsection.
(b) When an applicant for a tentative subdivision map, parcel map, or other
residential development approval donates land to the City as provided for
in this subsection, the City shall grant a Density Bonus, the amount of
which shall be as specified in Section 9122. This increase shall be in
addition to any increase in density mandated by subsection (a), to a
maximum combined density of 35 percent if an applicant seeks both the
increase required pursuant to this subsection and subsection (a). Nothing
in this subsection shall be construed to enlarge or diminish the authority of
the City to require a developer to donate land as a condition of
development. An applicant shall be eligible for the increased Density
Bonus described in this subsection if all of the following conditions are
met:
(1) The applicant donates and transfers the land no later than the date
of approval of the final subdivision map, parcel map, or residential
development application.
(2) The development acreage and zoning classification of the land
being transferred are sufficient to permit construction of units
affordable to Very Low Income Households in an amount not less
than ten (10) percent of the number of residential units of the
proposed development.
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(3) The transferred land is at least one (1) acre in size or of sufficient
size to permit development of at least 40 units, has the appropriate
general plan designation, is appropriately zoned for development of
affordable housing, and is or will be served by adequate public
facilities and infrastructure. The land shall have appropriate zoning
and Development Standards to make the development of
affordable units feasible. No later than the date of approval of the
final subdivision map, parcel map, or of the residential
development, the transferred land shall have all of the permits and
approvals, other than building permits, necessary for the
development of the very low income housing units on the
transferred land, except that the local government may subject the
proposed development to subsequent design review to the extent
authorized by subdivision (i) of Government Code Section 65583.2
if the design is not reviewed by the City prior to the time of transfer.
(4) The transferred land and the affordable units shall be subject to a
deed restriction ensuring continued affordability of the units
consistent with Section 9131 (d) and (e) which shall be recorded on
the property at the time of dedication.
(5) The land is transferred to the City or to a housing developer
approved by the City. The City may require the applicant to identify
and transfer the land to the developer.
(6) The transferred land shall be within the boundary of the proposed
development or, if the City agrees, within one-quarter mile of the
boundary of the proposed development.
(c) When an Applicant agrees to construct a Housing Development that
conforms to the requirements of Section 9121 (a) and includes a Child
Care Facility that will be located on the premises of, as part of, or adjacent
to, the project, the following shall apply:
(1) The City shall grant either of the following, unless it finds, based
upon substantial evidence, that the community has adequate child
care facilities:
(i) An additional density bonus that is an amount of square feet
of residential space that is equal to or greater than the
amount of square feet in the Child Care Facility.
(ii) An additional Concession or Incentive that contributes
significantly to the economic feasibility of the construction of
the Child Care Facility.
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(2) The City shall require, as a condition of approving the Housing
Development, that the following occur:
(i) The Child Care Facility shall remain in operation for a period
of time that is as long as or longer than the period of time
during which the Target Units are required to remain
affordable pursuant to Section 9131 (d) and (e).
(ii) Of the children who attend the Child Care Facility, the
children of Very Low Income Households, Low Income
Households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of
dwelling units that are required for Very Low Income
Households, Low Income Households, or families of
moderate income pursuant to Section 9121 (a).
9122 DENSITY BONUS
(1) The amount of Density Bonus to which the Applicant is entitled shall vary
according to the amount by which the percentage of affordable housing
units exceeds the percentage established in Section 9121 (a) as follows:
Percentage of
Target Units Additional Additional
Target Group (excluding Density Bonus Target Units Density Bonus
Density Bonus
units)
Each 1 percent 1.5 percent,
Low-lncome1 10 percent 20 percent maximum 35
increase percent
Very Low Each 1 percent 2.5 percent,
Income2 5 percent 20 percent increase maximum 35
percent
Moderate Each 1 percent 1.0 percent,
Income3 10 percent 5 percent increase maximum 35
percent
Senior Citizen 20 percent N/A N/A
Housin~4
Very Low Each 1 percent 1.0 percent,
Income under 10 percent 15 percent maximum 35
Land Donation5 increase percent
1 For housing development meeting the criteria of Section 9121(a)(1)
2 For housing development meeting the criteria of Section 9121 (a)(2)
3 For housing development meeting the criteria of Section 9121 (a)(4)
4 For housing development meeting the criteria of Section 9121(a)(3)
5 For housing development meeting the criteria of Section 9121(b)
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9123 INCENTIVES OR CONCESSIONS
(a) An Applicant may submit to the City a proposal for the specific
Concession(s) or Incentive(s) that the Applicant requests pursuant to this
Section, and the Applicant may request a meeting with the City. The City
must grant the Concession(s) or Incentive(s) requested by the Applicant
unless the City makes a written finding, based upon substantial evidence,
of either of the following:
(1) The Concession(s) or Incentive(s) is not required in order to provide
for Affordable Housing Costs or for Affordable Housing Rent for the
Target Units.
(2) The Concession(s) or Incentive(s) would have a specific adverse
impact, as defined in Government Code section 65589.5,
subdivision (d), paragraph (2), upon public health and safety or the
physical environment or on any real property that is listed in the
California Register of Historical Resources and for which there is no
feasible method to satisfactorily mitigate or avoid the specific
adverse impact without rendering the development unaffordable to
low- and moderate- income households.
(b) The Applicant shall be entitled to receive the following number of
Concessions or Incentives:
Target Group Target Units Maximum Incentives
Very Low Income 5 percent 1
10 percent 2
15 percent 3
Low Income 10 percent 1
20 percent 2
30 percent 3
Moderate Income 10 percent 1
(Condominium only)
20 percent 2
30 percent 3
(c) Incentives or concessions may include the following:
1. A reduction of site Development Standards or a modification of
zoning code requirements or architectural design requirements that
exceed the minimum building standards approved by the State
Ordinance No. 1320
Page 8 of 17
Building Standards Commission as provided in Part 2.5
(commencing with Section 18901) of Division 13 of the Health and
Safety Code, which result in identifiable, financially sufficient, and
actual costs reductions, including but not limited to:
a) Reduced minimum lot size.
b) Reduced minimum setbacks.
c) Reduced minimum street standards such as reduced minimum
street width.
d) Increased maximum lot coverage.
e) Increased building height.
2. Approval of mixed use zoning in conjunction with the housing
project if commercial, office, industrial, or other land uses will
reduce the cost of the Housing Development and if the commercial,
office, industrial, or other land uses are compatible with the housing
project and the existing or planned development in the area,
including the City's General Plan, where the proposed housing
project will be located; or
3. Other regulatory incentives or concessions proposed by the
Applicant or the City that result in identifiable, financially sufficient,
and actual cost reductions.
9124 WAIVERS OR REDUCTIONS
(a) An Applicant may submit to the City a proposal for the waiver or reduction
of Development Standards and may request a meeting with the City. The
Applicant shall show that the waiver or modification is necessary to make
the housing units economically feasible.
(b) The waiver or reduction shall be granted unless the City Council adopts a
written finding, based on substantial evidence, of either the following:
1. The waiver or reduction of Development Standards would have a
specific adverse impact, as defined in paragraph (2) of subdivision
(d) of Government Code Section 65589.5, upon health, safety, or
the physical environment, and for which there is no feasible method
to satisfactorily mitigate or avoid the specific adverse impact.
2. The waiver or reduction of Development Standards would have an
adverse impact on any real property that is listed in the California
Register of Historical Resources.
Ordinance No. 1320
Page 9 of 17
9125 OPTIONAL ADDITIONAL ASSISTANCE
The City may approve additional assistance to facilitate the inclusion of more
Target Units than are required by this Chapter. The City Council may approve
any of the following in its sole discretion, including, but not limited to:
(a) A density bonus greater than that required in Section 9121 of this Chapter.
(b) A proportionately lower density bonus than what is required by this
Chapter when the Housing Development does not meet the requirements
of this Chapter.
(c) Waived, reduced, or deferred planning, plan check, building permit and/or
development impact fees.
(d) Direct financial aid (e.g., redevelopment housing set-aside funds,
Community Development Block Grant funds) in the form of a loan or a grant to
subsidize or provide low interest financing for on or off site improvements,
contribution to land, or construction costs.
PART 3 DEVELOPMENT REQUIREMENTS
9131 STANDARD REQUIREMENTS
(a) Target Units shall be built on-site, and be integrated within the Housing
Development except those units built in conjunction with the donation and
transfer of land pursuant to Section 9121 (b).
(b) Target Units shall be constructed concurrently with Non-Restricted Units
unless both the City and the Applicant agree in the Housing Incentive
Agreement described in Section 9142 to an alternative schedule for
development.
(c) Except for a Senior Citizen Housing Development, the number of
bedrooms of the Target Units shall be generally equivalent to the bedroom
mix of the Non-Restricted Units of the Housing Development, as
determined by the Director and embodied in a Housing Incentive
Agreement. Notwithstanding the foregoing, the Applicant may include a
higher proportion of Target Units with more bedrooms than the Non-
Restricted Units.
(d) An Applicant shall agree to, and the City shall ensure, continued
affordability of all low- and very low income units that qualified the
Applicant for the award of the Density Bonus for at least 30 years or a
longer period of time if required by the construction or mortgage financing
assistance program, mortgage insurance program, rental subsidy
Ordinance No. 1320
Page 10 of 17
program, or in accordance with the Community Redevelopment Law
(Health and Safety Code Section 33000 et. seq.). Rents for the Target
Units shall be set at an Affordable Rent. Owner-occupied units shall be
available at an Affordable Housing Cost.
(e) An Applicant shall agree to, and the City shall ensure that, the initial
occupant of the moderate-income units that are directly related to the
receipt of the Density Bonus in the Common Interest Development are
Persons and Families of Moderate Income and that the units are offered at
an Affordable Housing Cost. The City shall enforce an equity-sharing
agreement, unless it is in conflict with the requirements of another public
funding source or law. The following apply to the equity-sharing
agreement:
(1) Upon resale, the seller of the unit shall retain the value of any
improvements, the down payment, and the seller's proportionate
share of appreciation. The local government shall recapture any
initial subsidy and its proportionate share of appreciation, which
shall then be used within three years for any of the purposes
described in subdivision (e) of Section 33334.2 of the Health and
Safety Code that promote homeownership.
(2) For purposes of this subsection, the local government's initial
subsidy shall be equal to the fair market value of the home at the
time of initial sale minus the initial sale price to the moderate-
income household, plus the amount of any down payment
assistance or mortgage assistance. If upon resale the market value
is lower than the initial market value, then the value at the time of
the resale shall be used as the initial market value.
(3) For purposes of this subdivision, the City's proportionate share of
appreciation shall be equal to the ratio of the initial subsidy to the
fair market value of the home at the time of initial sale.
(f) The design and appearance of the Target Units shall be consistent with
the design of the total Housing Development. Housing Developments
shall comply with all Development Standards applicable to housing in the
City, except those which may be modified as provided by this Chapter.
(g) A Housing Incentive Agreement shall be entered into between the
Applicant and City and/or the Agency to memorialize among other things,
the Applicant's commitment to provide Target Units in accordance with this
Chapter and other applicable provisions of State Law. The agreement
shall be made a condition of the development permits (e.g., tract maps,
parcel maps, site plans, planned development, conditional use permits,
etc.) for all Housing Developments pursuant to this Chapter.
Ordinance No. 1320
Page 11 of 17
(h) (1) Upon the request of the developer, the vehicular parking
ratio, inclusive of disable access and guest parking, of a development meeting
the criteria of subdivision 9121 (a), shall not exceed the following ratios:
Number of Bedrooms Parking Ratio
0-1 1 space
2-3 2 spaces
4 or more 2.5 spaces
(2) If the total number of parking spaces required for a development is
other than a whole number, the number shall be rounded up to the
next whole number. For purposes of this section, a development
may provide "on-site parking" through tandem parking or uncovered
parking, but not through on-street parking.
PART 4 APPLICATION AND HOUSING INCENTIVES AGREEMENT
9141 APPLICATION REQUIREMENTS AND REVIEW
(a) An Applicant proposing a Housing Development pursuant to this
Chapter, may submit a preliminary application prior to the submittal of any formal
request for approval of a permit for a Housing Development. Applicants are
encouraged to schedule a pre-application conference with the Director to discuss and
identify potential application issues. No charge will be required for the pre-application
conference. A preliminary application shall include the following information:
(1) A request for Density Bonus by specifying the code section of
which the Density Bonus shall be awarded.
(2) A description of the proposed Housing Development including the
total number of units, Target Units by income category, and Density
Bonus Units bedroom mix.
(3) The zoning and general plan designations and assessors parcel
number(s) of the project site.
(4) The location of the Target Units within the Housing Development.
(5) The number of additional housing units requested as the Density
Bonus for the Housing Development.
(6) A vicinity map and preliminary site, floor, and elevation plans,
drawn to scale, including building footprints, driveway, and parking
layout.
Ordinance No. 1320
Page 12 of 17
(7) A description of any requested concession(s) or incentive(s), waiver,
and/or modified parking standards. If a Density Bonus is requested
for a land donation, the application shall show the location of the
land to be dedicated and provide evidence that each of the
conditions included in subsection 9121 (b) can be met. If an
additional Density Bonus or Concession or Incentive is requested
for a Child Care Facility, the application shall show the location and
square footage of the Child Care Facility and provide evidence that
each of the conditions in subsection 9121 (c) can be met.
(8) A description of any Development Standards requested to be
waived or reduced and an explanation of why they are needed. In
requesting a waiver or reduction of Development Standards, the
Applicant shall provide substantial facts in the form of a
development pro-forma that the waiver or modification is necessary
to make the Target Units and other units in the Housing
Development economically feasible. At a minimum, the
development pro-forma shall include information identifying capital
costs, equity investment, debt service, discount rate, revenues,
vacancy allowance, operating expenses, net income or net
operating income, pre-tax cash flow, after-tax cash flow, and return
on investment.
(9) The Applicant shall acknowledge in writing that a Housing Incentive
Agreement is required.
(b) An application for a Density Bonus and/or Concession or Incentive
pursuant to this Chapter shall be processed concurrently with any other
permit application(s) required for the Housing Development. At a
minimum, the application shall contain all the information described in
Section 9141 (a) plus all other required information. Final approval or
disapproval of an application shall be made by the City Council and (i) in
the case of Housing Developments within redevelopment project areas,
also by the Agency; (ii) upon recommendation of the Planning
Commission for those Housing Developments which require Planning
Commission entitlements; except that no approval shall be effective until
the City or Agency (as applicable) and Applicant have executed a Housing
Incentive Agreement.
(c) Within sixty (60) days of receipt of the preliminary application, the City
shall provide the Applicant with a letter which identifies project issues of
concern and the proposed Concession or Incentive that the Director would
recommend to the Planning Commission and City Council and the
procedures for compliance with this Chapter.
Ordinance No. 1320
Page 13 of 17
(d) Where the Applicant proposes that the City provide optional additional
assistance as described in Section 9125 herein, the proposal shall be
considered by the Planning Commission for recommendation to the City
Council, or Agency where Agency funds are requested, for their
preliminary approval unless such Housing Development does not require
Planning Commission entitlements in which case, the City Council or
Agency, as applicable, can authorize such assistance. A preliminary
approval shall indicate the City Council's approval of the proposal for
processing, but no optional additional assistance shall be deemed
approved until embodied in the Housing Incentive Agreement.
9142 HOUSING INCENTIVE AGREEMENT
(a) Once an application for a Density Bonus and/or Concession or Incentive is
approved pursuant to Section 9141 (b), a Housing Incentive Agreement
shall be prepared consistent with any conditions of approval related
thereto subject to review and approval as to form by the City Attorney.
The City (or Agency) approval and execution responsibilities for such
agreement shall be as identified in the approval of the Housing
Development application pursuant to Section 9141 (b). Where such
identification is not made by the City Council, such agreement shall be
subject to approval by the City Council.
(b) The final approval of any documents as required by the agreement shall
take place prior to or concurrent with final map approval, or, where a map
is not being processed, prior to issuance of building permits for any
parcels in the Housing Incentive Agreement. The agreement shall be
binding to all future owners and successors in interest.
(c) The agreement shall include at least the following:
(1) The total number of units approved for the Housing Development
including the number of Target Units.
(2) A description of the household income group to be accommodated
by the Housing Development, and the standards for determining
the corresponding Affordable Rent or Affordable Housing Cost.
(3) The location, unit sizes (square feet), and number of bedrooms of
Target Units.
(4) Affordability restrictions for low and very low income Target Units
for at least 30 years or a longer period of time if required by the
construction or mortgage financing assistance program, mortgage
insurance program, rental subsidy program, or in accordance with
Ordinance No. 1320
Page 14 of 17
the Community Redevelopment Law (Health and Safety Code
Section 33000 et. seq.).
(5) A schedule for completion and occupancy of the Target Units.
(6) A description of the Concessions or Incentive(s), or optional
additional assistance being provided by the City or Agency.
(7) A description of remedies for breach of the agreement by either
party (the City may identity tenants or qualified purchasers as third
party beneficiaries under the agreement).
(8) Other provisions to ensure implementation and compliance with this
Chapter and State Law.
(d) In the case of for-sale Housing Developments, the agreement shall
provide for the following regarding the initial sale and use of Target Units
during the applicable use restriction period and for the respective
affordability period:
(1) Target Units shall, upon initial sale, be sold to eligible Very Low
Income Households, Low Income Households or Persons and
Families of Moderate Income consistent with this Chapter or as
approved by the City Council at an Affordable Housing Cost or be
made available to qualified residents in a Senior Citizen Housing
Development.
(2) Target Units shall be initially owner-occupied by eligible very low,
low income, or moderate income households, or by Senior Citizens
in the case of a Senior Citizen Housing Development or Mobile
Home Park that limits residency based on age requirements for
housing for older persons.
(3) The agreement shall provide for the continued affordability of the
low income and very low income Target Units for the applicable
affordability period.
(4) The agreement shall provide for the recapture by the City of its
proportionate share of appreciation upon resale of moderate
income Target Units in accordance with this Chapter.
(e) In the case of rental Housing Developments, the agreement shall provide
for the following conditions governing the use of Target Units during the
affordability period:
Ordinance No. 1320
Page 15 of 17
(1 ) The rules and procedures for qualifying tenants, establishing
Affordable Rent, filling vacancies, and maintaining Target Units for
qualified tenants;
(2) Provisions requiring the owner to verify tenant incomes and
maintain books and records to demonstrate compliance with this
Chapter and State Law.
SECTION 3. If any section, subsection, sentence, clause, phrase or portion of
this ordinance is for any reason held to be invalid or unconstitutional by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Tustin hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
PASSED AND ADOPTED, at a regular meeting of the City Council for the City of
Tustin on this 20th day of November, 2006.
DOUG DA \VERT
Mayor
PAMELA STOKER
City Clerk
Ordinance No. 1320
Page 16 of 17
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of the Ordinance introduced at a regular
meeting of the City Council of the City of Tustin duly held on November 6, 2006, of
which meeting all of the members of said City Council had due notice and at which a
majority thereof were present; and was finally passed and adopted not less than five
days thereafter on November 20, 2006, by the following vote:
COUNCILMEMBER AYES:Hagen. Amante. Bone. Kawashima(4)
COUNCILMEMBER NOES:None(0)
COUNCILMEMBER ABSTAINED:None(0)
COUNCILMEMBER ABSENT:Davert(1)
PAMELA STOKER,
City Clerk
Ordinance No. 1320
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