CITY OF FAIRFIELD
ORDINANCE NO. 2025-05
ADDING CHAPTER 5F.1 (INCLUSIONARY HOUSING) TO THE FAIRFIELD MUNICIPAL CODE AND
FINDING ADOPTION OF THE ORDINANCE TO BE EXEMPT FROM REVIEW UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
THE CITY COUNCIL OF THE CITY OF FAIRFIELD DOES ORDAIN AS FOLLOWS:
SECTION 1. Chapter 5F.1 is hereby added to the Fairfield City Code to read as follows:
Chapter 5F INCLUSIONARY HOUSING
5F.1 Purpose
The provisions of this chapter establish standards and procedures that encourage the development of housing that is affordable to a range of households with varying income levels.
The purpose of this chapter is to: (1) encourage the development and availability of affordable housing by ensuring that the addition of affordable housing units is in proportion to the overall increase in new housing units; (2) provide standards and procedures f or the administration of the city's inclusionary housing program; and (3) generate revenue to allow the city to facilitate affordable housing development.
5F.2 Definitions
As used in this chapter, the following terms shall have the following meanings:
Adjusted for household size appropriate for the unit means a household of one (1) person in the case of a studio unit, two (2) persons in the case of a one-bedroom unit, three (3) persons in the case of a two -bedroom unit, four (4) persons in the case of a three -bedroom unit, and five (5) persons in the case of a four-bedroom unit.
Affordable housing cost means the housing cost for dwelling units as defined by California Health and Safety Code Section 50052.5 for owner-occupied housing and the affordable rent for rental units as defined by California Health and Safety Code Section 50053, as applicable.
Affordable housing plan means the plan referenced in section 5F.7 and further described in the guidelines, which sets forth the manner in which the requirements of this section will be implemented for a particular residential development.
Area median income or AMI means the annual me dian gross annual income adjusted for household size in Solano County as determined by the United States Department of Housing and Urban Development (HUD) and published by the California Department of Housing and ORD. NO. 2025-05
Community Development (HCD) in the California Code of Regulations, Title 25, Section 6932, or its successor provision.
Developer means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities, which seeks city approvals for all or part of a residential development.
Development agreement means an agreement entered into between the city and a developer pursuant to California Government Code Section 65864 et seq.
Director means the city's director of Community and Economic Development.
Dwelling unit means one (1) 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.
HCD means the California Department of Housing and Community Development.
Housing trust fund shall have the meaning set forth in section 5F.11.
HUD means the United States Department of Housing and Urban Development.
Inclusionary housing agreement means a legally binding agreement between a developer and the city, in form and substance satisfactory to the director and city attorney, setting forth those provisions necessary to ensure that the requirements of this chapter are satisfied.
Inclusionary unit means a dwelling unit in a residential development that will be rented or offered for sale to very low -, low-, or moderate -income households, at an affordable housing cost, pursuant to this section.
In-lieu fee means a fee paid to the city by a developer instead of providing the required inclusionary units within the residential development.
Low-income households means households whose gross income is greater than 50% of AMI and does not exceed 80% of AMI.
Market rate unit means a dwelling unit in a residential development that is not an inclusionary unit.
Moderate-income households means households whose gross income is greater than 80% and does not exceed 120% of AMI.
Residential development means the construction, development, or subdivision of property, whether owner -occupied or rental, resulting in 10 or more lots or dwelling units, including dwelling units in mixed-use projects.
Very-low-income households means households whose gross income is equal to 50% or less of AMI.
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5F.3 Applicability
A. This chapter shall apply to all residential developments, as defined herein, where the lots or units will be offered for sale or for rent.
B. This section shall apply to residential developments that provide affordable housing units pursuant to state or federal law. Affordable units provided pursuant to state or federal requirements may be included or counted in determining a residential deve lopment’s compliance with this section if the units meet the requirements described herein. 5F.4 Exemptions
The following residential development projects and dwelling units are exempt from the provisions of this chapter:
A. Notwithstanding subsection 5F.3.A, inclusionary units shall not be required for any project in which the city and developer enter into a development agreement that meets or exceeds the city’s minimum inclusion ary requirements or for any project that is otherwise exempt under state law.
B. The reconstruction of a residential development that was destroyed by fire, flood, earthquake, or other act of nature, within two years of such an event, so long as the number of units does not exceed the number of units before the loss.
C. Accessory dwelling units.
5F.5 Inclusionary Unit Requirements
A. All new residential developments shall include inclusionary units, which shall be reserved for very low-, low- and moderate-income households, and offered at an affordable housing cost, as follows:
1. For all newly constructed rental units in a residentia l or mixed -use development, a minimum of 2.5% of all the units in the development shall be made affordable to and rented by very low -income households and a minimum 2.5 % of all the units in the development shall be made affordable to and rented by low-income households.
2. For all newly constructed owner -occupied units in a residential or mixed -use development, a minimum of 5% of all the units in the development shall be listed at a price affordable to and sold to moderate income households.
B. When the calculation of the required number of inclusionary units results in a fraction, the developer may either construct an additional unit or pay the proportional in-lieu fee for the fractional unit, at the developer’s option (see subsection 5F.6.A). 5F.6 Alternative Means of Compliance
The city prefers that developers construct all required inclusionary units within their residential development, as provided by section 5F.5 above. At the optio n of the developer, ORD. NO. 2025-05
however, the requirements of this chapter may be satisfied through the following alternative means of compliance:
A. In-Lieu Fees
1. The developer may propose to satisfy the inclusionary housing unit requirements of section 5F.5 through the payment of an in -lieu fee. The amount of the in -lieu fee and the method for calculating such fee shall be established by a resolution of the City Council.
2. The developer shall pay the in -lieu fee required under this section before the issuance of the first building permit for any part of the residential development.
The city may, on a case-by-case basis, enter into an agreement with the developer to pay the in -lieu fee on an alternative schedule, in the city’s sole and absolute discretion. In no event shall the developer pay the in-lieu fee after the issuance of the first certificate of occupancy associated with the development.
3. In the Heart of Fairfield Specific Plan area, the required in-lieu housing fees will be further reduced by 50%, unless further specified by city council resolution.
4. All fees collected shall be deposited in the housing trust fund.
B. Land Dedication
1. The developer may make an irrevocable offer to dedicate or convey land to the city, situated in or adjacent to the parcel proposed for residential development or another site within the city, subject to the city’s sole and absolute discretion.
2. The city shall have 90 days to evaluate and approve land dedications and another 30 days for city council to ratify the staff approval.
3. Land offered under this section must:
i. have a general plan designation that authorizes residential uses; ii. be zoned for residential development;
iii. be of sufficient size to accommodate at least the inclusionary units that would otherwise be required under section 5F.5 bas ed on parcel size and the median permitted density for the existing zoning designation; iv. in no circumstance be less than 1.5 acres;
v. be generally rectangular in shape and on flat terrain; vi. be free of wetlands, creeks, or other environmental limitations; and vii. be free of abnormalities, easements, deed restrictions, or other limitations on title that could preclude development for residential use.
4. The developer shall provide satisfactory evidence that the land offered is free from environmental contamination.
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5. The developer also shall submit evidence that the developer owns, or has an irrevocable option to purchase, the site proposed for dedication or conveyance.
6. The land shall be identified and offered for dedication or conveyance at the time of development application submittal.
7. Infrastructure to serve the dedicated land, including, but not limited to, streets and public utilities, must be available at the property line and have adequate capacity to serve the maximum allowable residential density permitted und er zoning regulations.
8. The city council shall decide whether to accept the parcel in lieu of the provision of units on-site in its sole discretion.
9. If the offer is accepted by the city council, the land must be donated to the city no later than 180 days a fter the date of approval of the final subdivision map. The land donation shall be a condition of approval of the final subdivision map.
10. The city shall solicit proposals from affordable housing developers to construct affordable units on the site dedicated to the city, but if the city is unable to obtain a qualified affordable housing developer to construct a viable affordable housing development on the property within two years of its solicitation or to commence construction within five years, the city may , but is not obligated to, sell, transfer, lease, or otherwise dispose of the dedicated site for any purpose. Any funds collected as the result of a sale, transfer, lease, or other disposition of sites dedicated to the city shall be deposited into a fund designated for use in the city’s housing trust fund program (see subsections 5F.6.A and 5F.11).
C. A developer may develop a proposal that includes a combination of on -site units, in-lieu fees, and/or land dedication, which shall be subject to approval by the city council in its sole discretion.
5F.7 Affordable Housing Plan
The developer shall submit an affordable housing plan to the director concurrent with the filing of the application for the planning entitlement for the residential development setting forth in detail the manner in which the residential development will comply with the provisions of this chapter and how these requirements will be implemented. 5F.8 Inclusionary Housing Agreement
For residential developments providing inclusionary units on -site, an inclusionary housing agreement shall be requi red. Such agreement, which shall include provisions and terms for meeting the requirements of this section, shall be approved by the city manager or designee and city attorney. The agreement shall provide for a deed restriction to be recorded against the property prior to issuance of a building permit.
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5F.9 Standards for Inclusionary Units
A. All inclusionary units shall be:
1. Reasonably dispersed throughout the residential development and in the same general variety of locations as used for the market rate units.
2. Sized, in terms of the number of bedrooms, size of rooms, and square footage in a similar manner to the market rate units. Inclusionary units shall be provided in a proportionally similar variety of sizes and types to the market rate units.
3. Comparable with the market rate units in terms of base design, appearance, materials, and finished quality.
B. All inclusi onary units in a residential development shall be made available for occupancy concurrently with or prior to the occupancy of the market rate units. In the event the city approves a phased project, the inclusionary units required by this section shall be p rovided proportionally within each phase of the residential development.
C. Inclusionary units offered for sale shall remain restricted for owner -occupancy by the target income category at the applicable affordable housing cost for: (1) the owner-occupant’s mortgage term, if the owner -occupant chooses to share this information with the city; or (2) a period of 45 years, whichever is shorter. Where an owner declines to share mortgage information with the City, an affordability period of no less than 45 year s shall apply to the unit. At the request of the first owner - occupant who occupies the inclusionary unit and subsequently seeks to sell the inclusionary unit, the city may impose the equity sharing agreement rules from the Density Bonus Law, as codified at Government Code section 65915(c)(2) or its successor provision, instead of requiring the aforementioned restriction for 45 years.
D. Inclusionary units in rental residential developments shall remain restricted for occupancy by the target income category at the applicable affordable housing cost for a period of not less than 55 years.
E. The occupancy of the inclusionary units shall be govern ed by the terms of the inclusionary housing agreement.
5F.10 Implementation and Enforcement
A. The provisions of this chapter shall apply to all owners, developers, their agents, successors, and assigns that propose a residential development, occupy an inclusionary unit, or both. These individuals must be in full compliance with the provisions of this ordinance and state law prior to the issuance of a certificate of occupancy.
B. The city manager or designee may adopt implementing guidelines to assist in administering this chapter. All inclusionary units shall be sold or rented in accordance ORD. NO. 2025-05
with this chapter and any regulations and administrative guidelines adopted pursuant to this chapter.
C. Any violation of this chapter constitutes a misdemeanor.
D. In addition to any other enforcement or legal proceedings authorized by this chapter, an individual who sells or rents an inclusionary unit in violation of the provisions of this chapter, the guidelines, or the inclusionary housing agreement shall be required to disgorge to the city all monetary amounts obtained in violation of those provisions to the extent allowable under law. Recovered funds shall be deposited into the housing trust fund.
E. The city may institute any appropriate legal actions or procee dings necessary to ensure compliance with this section, including, but not limited to:
1. Actions to revoke, deny, or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval.
2. Actions for injunctive relief or damages.
3. Administrative penalties pursuant to sections 1.7, 1.12, and/or 1.13, as applicable.
F. In any action to enforce this section or an inclusionary housing agreement recorded hereunder, the city shall be entitled to recover its reasonable attorn ey's fees and costs.
G. The options described in this section do not limit the city’s ability to enforce this chapter using any allowable means and are solely provided as examples. 5F.11 Housing Trust Fund
A. All monies collected by the city pursuant to t his section shall be deposited in the housing trust fund.
B. The monies in the fund and all earnings from investment of the monies in the fund shall be expended to provide housing affordable to very low -, low-, and moderate- income households in the city. Such expenditures may include, but shall not be limited to, the costs of administration, monitoring, and compliance for the city’s affordable housing program, as further described in subsection 5F.11.C.
C. For the purpose of this section, providing housing affordable to very low-, low-, and moderate-income households may include, but is not limited to, expending funds for the following: development of affordable units; acquisition of property for the development of such units; subsidies for the construction of such units; maintenance of affordable housing; partnering with affordable housing developers; conversion of existing market rate units to very low-, low- and moderate-income for-sale or rental units; subsidies for covenants to create or preserve very low-, low-, and moderate- income units; substantial rehabilitation of very low -, low -, and moderate -income ORD. NO. 2025-05
units; and costs to administer the housing trust fund and inclusionary housing program.
5F.12 Housing Impact or Commercial Linkage Fee
In addition to in-lieu fees, the city council may, by resolution, adopt housing impact fees or commercial linkage fee.
5F.13 Administrative Fees
The city council may establish reasonable fees and deposits for the administration of this chapter, which shall be adopted by resolution.
SECTION 2. Pursuant to the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, the City Council in their own independent judgement has reviewed the whole record and has determined that Ordinance No. 2025 -05 is exempt from further environmental analysis pursuant to the following sections of the CEQA Guidelines:
15378(b)(4): The definition of a “project” does not include the creation of government funding mechanisms that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. While the code amendment authorizes the city council to adopt, by resolution, in -lieu fees, housing impact fees, commercial linkage fees, and reasonable fees and deposits for the administration of the inclusionary housing program, it does not include commitment of these prospective fees to a specific project. 15061(b)(3): A project is exempt from CEQA if the activity is covered by the common sense exemption, which states that “CEQA only applies to projects which have the potential for causing a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” This code amendment establishes an inclusionary housing requirement to be implemented if new development to which it applies is proposed but does not involve consideration of a specific project that would result in a physical change to the environment.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such dec ision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not ORD. NO. 2025-05
declared invalid or unconstit utional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. This Ordinance shall be effective 30 days following its adoption by the City Council. A summary of this Ordinance shall, within 15 days after passage, be published in accordance with Section 36933 of the Government Code of the State of California with the names of the City Councilmembers voting for and against it.
INTRODUCED at a regular meeting of the City Council of the City of Fairfield on the 1st day of July 2025, and
PASSED AND ADOPTED this ___ day of _________________ 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
_________________________________________________
MAYOR
ATTEST:
___________________________
CITY CLERK