1 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM ESTABLISHING AN
INCLUSIONARY HOUSING IN -LIEU FEE
SCHEDULE FOR THE INCLUSIONARY
HOUSING ORDINANCE.
WHEREAS, the State of California has a statewide housing affordability crisis, which also manifests at the regional and local level; and WHEREAS, the City recognizes the importance of continuing to proactively develop affordable housing in Anaheim to meet the need of families who live and work in the City; and
WHEREAS, the City of Anaheim’s Regional Housing Needs Allocation (RHNA) for the 2021 -2029 Housing Element period indicates that the City has a total housing need of 17,453 units, including: 3,767 units for very low -income families; 2,397 units for low -income families; 2,945 units for moderate -income families; and, 8,344 units for above moderate -income families; and
WHEREAS, on August 20, 2024, the Anaheim City Council adopted Ordinance No. 6588 establishing the Anaheim Local Housing Trust Fund (A -LHTF) to assist in developing and maintaining affordable housing in the City; and
WHEREAS, on August 20, 2024, Housing and Community Development staff presented background information to the City Council on the continuing need for funding and policies to address affordable housing needs in Anaheim, and following a robust discussion, the City Council directed staff to return with more specific details regarding inclusionary housing policies; and
WHEREAS, on September 10, 2024, Housing and Community Development staff returned to City Council with more specific details regarding inclusionary housing policies, and after further discussion, the City Council directed staff to return with an inclusionary housing ordinance that requires the production of onsite affordable housing units, or alternative compliance procedures, including the payment of an in-lieu fee; and WHEREAS, State of California Assembly Bill (AB) 1505 (Chapter 486, Statutes of 2017), effective January 1, 2018, authorizes the legislative body of any city or county to adopt an inclusionary housing ordinance that includes residential rental units affordable to lower and moderate income households (California Government Code section 65850(g)); and WHEREAS, California Government Code section 65850(g) provides that, “The ordinance shall provide alternative means of compliance that may include, but are not limited to, in-lieu fees”; and
2 WHEREAS, on October 8, 2024, the City Council gave first reading to the Inclusionary Housing Ordinance (Ordinance No. 6593), which establishes an Inclusionary Housing In-Lieu Fee; and
WHEREAS, on October 29, 2024, the City Council adopted the Inclusionary Housing Ordinance; and
WHEREAS, Section 17.40.060 (Alternative Compliance Procedures) of Chapter
17.40 (Inclusionary Housing) of Title 17 (Land Development and Resources) of the Anaheim Municipal Code establishes the Inclusionary Housing In -Lieu Fee as an alternative means to compliance with the Inclusionary Housing Ordinance; and
WHEREAS, on November 19, 2024, the City Council held a duly noticed public meeting or hearing as required by law to consider the fees and rates as hereinafter set forth in this resolution; and
WHEREAS, although not applicable to the subject Inclusionary Housing In -Lieu Fee, the City published all notices of the hearing on this resolution consistent with the requirements of Government Code sections 66018 and 6062a; and
WHEREAS, Keyser Marston Associates, Inc. prepared an Inclusionary Housing:
In-Lieu Fee Analysis based on the inclusionary housing requirements enacted pursuant to the Inclusionary Housing Ordinance; and
WHEREAS, the City Council finds that said fees and rates, in the amounts hereinafter set forth in this resolution, are less than or equal to, but in any event do not exceed, the actual direct and indirect costs and expenses incurred by the City of Anaheim for providing services related to the Inclusionary Housing Ordinance; and WHEREAS, any fees paid in lieu of producing affordable housing will be deposited in the Anaheim Local Housing Trust Fund (A -LHTF) to be used to address the production of local affordable housing; and
WHEREAS, all legal prerequisites to the adoption of this resolution have occurred.
NOW, THEREFORE, the City Council of the City of Anaheim resolves, finds and determines on the basis of the facts set forth in the agenda report presented to it and any testimony received at the meeting at which this matter was considered, as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The Inclusionary Housing In -Lieu Fee shall be Ten Dollars ($10.00) per square foot of the total habitable/leasable space in the entire applicable Residential Project, as set forth in the In-Lieu Fee Calculation Methodology, attached hereto as Exhibit A and incorporated herein by reference.
Section 3. The City Council of the City of Anaheim will review and update the Inclusionary Housing In-Lieu Fee schedule periodically, as necessary, to address fluctuations in market conditions.
Section 4. All Inclusionary Housing In -Lieu Fees collected under the Inclusionary Housing Ordinance shall be deposited in the Anaheim Local Housing Trust Fund (A -LHTF) and expended exclusively to provide or assure continued production of affordable housing in the City, and for the associated costs of administering and monitoring these programs.
Section 5. The Inclusionary Housing In-Lieu Fee established herein is hereby adopted and shall become effective sixty (60) days following the date of adoption of this resolution.
THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 19th day of November, 2024, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ANAHEIM
By:
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
CITY CLERK OF THE CITY OF ANAHEIM
EXHIBIT A
(attached behind this page)
EXHIBIT
IN-LIEU FEE CALCULATION METHODOLOGY
The following tables provide examples of the methodology used to calculate the in-lieu fees that are imposed by this Resolution.
Inclusionary Housing Obligation
Total Units 240
Inclusionary Housing Percentage x 10%
Total Inclusionary Housing Obligation 24 Units
Leasable Area
Total Units 240
Weighted Average Unit Size (Square Feet) x 875
Total Leasable Area (Square Feet) 210,000
In-Lieu Fee Per Square Foot of Total Leasable Area $10.00 In-Lieu Fee Calculation
Total Leasable Area (Square Feet) 210,000
In-Lieu Fee Per Square Foot of Total Leasable Area x $10.00 Total In-Lieu Fee $2,100,000
In-Lieu Fee Per Inclusionary Unit
Total In-Lieu Fee $2,100,000
Number of Inclsuionary Units 24
In-Lieu Fee Per Inclusionary Unit $87,500
In-Lieu Fee Calculation Example
Total Inclusionary Housing Obligation
In-Lieu Fee Calculation Methodology Page 2
Fraction
Fractional In-Lieu Fee:
Per Square Foot of One Unit
0.10 $10.00
0.20 $20.00
0.30 $30.00
0.40 $40.00
0.50 $50.00
0.60 $60.00
0.70 $70. 00
0.80 $80.00
0.90 $90.00
1.00 $100.00
Fractional In-Lieu Fee Payment Calculations
Measured Per Square Foot of the Leasable Area of
One Unit in an Apartment Development
Fractional Unit Obligation 0.7
Weighted Average Unit Size (Square Feet) 875
F
ractional In-Lieu Fee: Per Square Foot of One Unit $70.00 In-Lieu Fee Calculation
Weighted Average Unit Size (Square Feet) 875
Fractional In-Lieu Fee: Per Square Foot of One Unit x $70.00 Total In-Lieu Fee $61,250
In-Lieu Fee Calculation Example
Fractional Inclusionary Unit Obligation