020822-ORD-24sr&att.pdf — Long Beach City Council, February 8, 2022

OFFICE OF THE CITY ATTORNEY
Long Be.a.ch, California ORD-24
:CHARLESP.ARKlN
.City .Attamey
'MIC'f!AELJ.MAIS
Jtsliistattl ·City ,AtlDrn"!I
February 8, .2022
HONORABLE MAYOR AND CfTY COUNCIL
City of Long Beach
California
RECOMMENDATION:

Dedare ordinance amending the Long Beac:h Municipal Gode by amending and restating Chapter 21.67.; relating to lnclusionary Housing, read the first time and laid over to the next re:gular meeting of the City Council for final reading;
Declare ordinance amending the Long Beach Municipal Code by amending and restating Chapter 21.11., relating to no net loss of affordable residential hous·ing units in the City, read the first time and laid over to the next regular meeting of the City CouncII for final reading; and
Adopt a resolution amend1ng Resolution No. RES-21..:0006 establishing automatic adjustments to the existing inclusionary housing in-lieu fee, (.Citywide)

DISCUSSION
Pursuant .to your request on November 9, 2021, the referenced ·ordinances and resolution have been prepared and .are submitted for your consideration.

SUGGESTED ACTION:

Approve recommendation.

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Very truly yours,
CHARLES PARKIN, City Attorney
~ ~
By
RICHARD F. ANTHONY
Deputy City Attorney
411 West Ocean Boulevard, 9'0 Floor, Long-Beach, C-alifomia 908.02 (562) 570-2200 Fax (562) 436-1579 - ·· (S62}570~22.45 Fax (562) 570-2220

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LONG BEACH AMENDING THE LONG BEACH

MUNICIPAL CODE BY AMENDING AND RESTATING
CHAPTER 21.67 RELATING TO INCLUSIONARY HOUSING
The City Council of the City of Long Beach ordains as follows:

Section 1. Chapter 21.67 of the Long Beach Municipal Code is hereby amended and restated to read as follows:

Chapter 21.67

INCLUSIONARY HOUSING

21.67.010 Purpose.

The City Council finds that the City of Long Beach faces a serious shortage of affordable housing units that is anticipated to increase over time. New residential development frequently does not provide housing opportunities for low- and moderate-income households due to the high cost of newly-constructed housing in the City. As a result, such households are effectively excluded from many neighborhoods, creating economic stratification detrimental to the public health, safety, and welfare. The purpose of this Chapter is:

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

incomes.

B. To enhance the public welfare by establishing policies which require the development of housing affordable to households of very low- and moderate-incomes, help meet the City's regional share of housing needs, and implement the goals and objectives of the City’s General Plan and Housing Element
C. To provide and maintain affordable housing opportunities in the community through an inclusionary housing program for both ownership and rental housing, and, in furtherance of that goal, include rental inclusionary housing requirements in this Chapter consistent with California Government Code Section 65850(g).

D. To provide the residential development community with alternatives to construction of the inclusionary units within a market-rate residential development.

21.67.020 Definitions.

The definitions set forth in this Section shall govern the application and interpretation of this Chapter. Words and phrases not defined in this Section shall be interpreted so as to give this Chapter its most reasonable application.

A. “Adjusted for Household Size Appropriate for the Unit” means the household sizes defined in California Health and Safety Code Section 50052.5. This adjustment is used solely for the purposes of calculating the affordable rent and affordable sales price. For this purpose only, the household size is set at the number of bedrooms in the unit plus one.

B. “Affordable Rent” means the maximum monthly rent for very low-income households, including an allowance for tenant paid utilities, as defined in California Health and Safety Code Section 50053. The

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

calculation is as follows: (i) one-twelfth of thirty percent (30%) of fifty percent (50%) of area median income adjusted for household size appropriate for the unit or (ii) market rent, whichever is less.

C. “Affordable Sales Price” means the maximum purchase price for moderate-income households as defined in California Health and Safety Code Section 50052.5. The calculation is as follows: not be less than twenty-eight percent (28%) of the gross income of the household, nor exceed one-twelfth of thirty-five percent (35%) times one hundred ten percent (110%) of area median income adjusted for household size appropriate for the unit. The affordable sales price shall include a reasonable down payment, and monthly housing cost payments as defined in California Code of Regulations, Title 25, Section 6920. These payments include principal and interest on a mortgage loan, private mortgage insurance, property taxes and assessments, a utility allowance established by the Housing Authority of the City of Long Beach, homeowner's insurance, homeowner's association dues, and a reasonable allowance for property maintenance and repairs, all as determined by the City.

D. “Applicant" or "Developer” means a person, persons, or entity that applies for a residential development and also includes the owner or owners of the property if the applicant does not own the property on which residential development is proposed.

E. “Approval Body” means a body with the authority to approve the proposed residential development or any component thereof.

F. “Area Median Income” means the annual median income for Los Angeles County, adjusted for household size, as published periodically in the California Code of Regulations, Title 25, Section 6932, or its successor provision, or as established by the City in the event that such median income figures are no longer published periodically in the California

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

Code of Regulations.

G. “Building Permit” includes full structural building permits as well as partial permits such as foundation-only permits.

H. “Common Ownership or Control” refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member (or family member of such shareholder, partner or member) of the entity owns ten percent (10%) or more of the interest in the property.

I. “Contiguous Property” means any parcel of land that is:

1. Touching another parcel at any point;

2. Separated from another parcel at any point only by a public right-of-way, private street or way, or public or private utility, service, or access easement; or

3. Separated from another parcel only by other real
property of the applicant which is not subject to the requirements of this Chapter at the time of the planning entitlement application by the applicant.

J. “Density Bonus Units” means dwelling units approved in a residential development pursuant to California Government Code Section 65915 et seq., and Chapter 21.63 of the Long Beach Municipal Code that are in excess of the maximum allowable residential density otherwise permitted by the City.

K. “Downtown and Midtown Submarket” means those areas of the City located within the Downtown Plan Area (PD-30) and/or the Midtown Plan Area (SP-1), each as delineated on the City’s Zoning Use District Map.

L. “First Approval” means the first of the following approvals to occur with respect to a residential development after the effective date of this Chapter: planning entitlement or building permit.

M. “Housing Element” means the then-current Housing Element

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

of the City's General Plan prepared in accordance with state housing law.

N. “Housing Trust Fund” means the fund or account established by Section 3.92 of the Long Beach Municipal Code.

O. “Inclusionary Housing Regulatory Agreement” means an agreement in conformance with Section 21.67.090.B between the City and an applicant, governing how the applicant shall comply with this Chapter.

P. “Inclusionary Housing Guidelines” means any requirements for implementation and administration of this Chapter adopted by the City in accordance with Section 21.67.090.D.

Q. “Inclusionary Housing Plan” means a plan containing all of the information specified in and submitted in conformance with Section

21.67.090.A, specifying the manner in which inclusionary units will be provided in conformance with this Chapter and any adopted inclusionary housing guidelines.

R. “Inclusionary Unit” means a dwelling unit required by this Chapter to be affordable to very low or moderate-income households, as applicable, and subject to an inclusionary housing regulatory agreement.

S. “Market-Rate Unit” means a new dwelling unit in a residential development that is not an inclusionary unit subject to recorded affordability restrictions that meet the requirements of this Chapter.

T. “Moderate-Income Households” are those households whose income does not exceed one hundred twenty percent (120%) of the area median income, adjusted for the actual number of persons in the household as published annually by the California Department of Housing and Community Development.

U. “Ownership Residential Development” means (i) any
residential development that includes the creation of one or more dwelling units that may be sold individually, and (ii) any community apartment project

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

or residential development owned by a residential stock cooperative wherein owners own an undivided interest in the development together with the right to occupy a dwelling unit, commonly known as “own-your-owns”.

A residential ownership development also includes the conversion of a residential rental development to a residential ownership development pursuant to Chapter 20.32 of the Long Beach Municipal Code. If dwelling units are approved with a condominium map but are not yet sold individually on the open market or otherwise to persons unaffiliated with the original developer of the dwelling units, such development shall be considered a rental residential development subject to the requirements of Section

21.67.050.A.2 until such time as it converts to an ownership residential development, at which time the development shall be subject to the requirements of Section 21.67.050.A.1.

V. “Planning Entitlement” means any discretionary approval of a residential development including, but not limited to, a general or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, design review, or coastal development permit.

W. “Rental Residential Development” means any residential development that creates one or more dwelling units that cannot be lawfully sold individually in conformance with the Subdivision Map Act.

X. “Residential Development” means any development for which a planning entitlement or building permit is required that includes:

1. The creation of one or more additional dwelling units;

2. Conversion of nonresidential uses to dwelling units; or

3. The conversion of a use from a residential rental
development to a residential ownership development.

Y. “Very Low-Income Household” are those households whose

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

income does not exceed 50 percent (50%) of the area median income, adjusted for the actual number of persons in the household as determined by the United States Department of Housing and Urban Development and as published annually by the California Department of Housing and Community Development.

21.67.030 Applicability.

The provisions of this Chapter shall apply to:

A. All residential development located in the Downtown and Midtown Submarket except for any residential development exempt under Section 21.67.040; and
B. All residential development and contiguous properties located in the Downtown and Midtown Submarket or immediately adjacent thereto that are under common ownership or control.

21.67.040 Exemptions.

A. The following residential developments shall be exempt from the provisions of this Chapter:

1. Residential developments with nine (9) or fewer units.

2. Residential developments which are developed in
accordance with the terms of a development agreement adopted by ordinance pursuant to the authority and provisions of California Government Code Section 65864 et seq. and/or Chapter 21.29 of the Long Beach Municipal Code, and that is executed prior to the effective date of this Chapter, provided that such residential developments shall comply with any inclusionary housing requirements included in the development agreement or any predecessor ordinance in effect on the date the development agreement was executed.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

3. Residential developments exempted by California
Government Code Section 66474.2 or 66498.1, provided that such residential developments shall comply with any predecessor ordinance, resolution, or policy in effect on the date the application for the development was deemed substantially complete.

4. Residential developments for which a building permit has been issued no later than the effective date of this Chapter, provided that such residential developments shall comply with any predecessor ordinance, resolution, or policy in effect on the date the application for the development was approved.

B. Planning entitlement expiration. Upon the expiration of any planning entitlement, and unless otherwise exempted, the residential development shall be subject to the inclusionary housing requirements of this Chapter, and shall not proceed until such time as an inclusionary housing plan is approved in conjunction with any other required planning entitlement or amendment thereto. The provisions of this Chapter shall also apply to any residential development which is granted a discretionary extension of a planning entitlement after the effective date of this Chapter, to the extent consistent with state law.

21.67.050 Inclusionary Housing Requirement.

All residential developments proposing ten (10) or more dwelling units (unless exempt under Section 21.67.040), and contiguous property under common ownership and control, shall include inclusionary units.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

development as follows:

1. Ownership residential development. If the application for first approval is submitted during calendar year 2021, then the applicant shall provide four percent (4%) of the units in the residential development available at an affordable sales price to moderate-income households. If the application for first approval is submitted during calendar year 2022, then the applicant shall provide five percent (5%) of the units in the residential development available at an affordable sales price to moderate-income households. If the application for first approval is submitted during calendar year 2023 or anytime thereafter, then the applicant shall provide ten percent (10%) of the units in the residential development available at an affordable sales price to moderate-income households.

2. Rental residential development. If the application for first approval is submitted during calendar year 2021, then the applicant shall provide five percent (5%) of the units in the residential development available at an affordable rent to very low-income households. If the application for first approval is submitted during calendar year 2022, then the applicant shall provide six percent (6%) of the units in the residential development available at an affordable rent to very low-income households.

If the application for first approval is submitted during calendar year 2023 or anytime thereafter, then the applicant shall provide eleven percent (11%) percent of the units in the residential development available at an affordable rent to very low-income households.

B. Calculating the number of inclusionary units.

1. Calculations of the number of inclusionary units
required by this Section shall be based on the number of dwelling units in the residential development, excluding any density bonus units.

2. In computing the total number of inclusionary units

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

required in a residential development, fractions of an inclusionary unit shall either be (i) rounded up, or (ii) provided by the payment of an in-lieu fee as established in Section 21.67.080.A.

3. When a residential development includes both
ownership and rental dwelling units, the provisions of this Chapter that apply to ownership residential development shall apply to that portion of the development that consists of ownership dwelling units, while the provisions of this Chapter that apply to rental residential development shall apply to that portion of the development that consists of rental dwelling units.

C. Common ownership and control. An applicant for a planning entitlement shall not avoid the requirements of this Chapter by submitting piecemeal planning entitlement applications. At the time of the application for first approval for the residential development, the applicant shall identify all contiguous property under common ownership and control. The applicant shall not be required to construct dwelling units upon the contiguous property at the time of the application for first approval; however, the applicant shall be required to include the contiguous property under common ownership or control in its inclusionary housing plan. The inclusionary housing regulatory agreement shall be recorded against the residential development and all contiguous property under common ownership or control and shall require compliance with this Chapter upon development of each contiguous property at such time as there are planning entitlement applications that would authorize a total of ten (10) or more residential units for the residential development and the contiguous property under common ownership or control.
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

21.67.060 Inclusionary Housing Standards and Incentives.

A. Inclusionary housing units included in a residential development resulting from the conversion of a use from a residential rental development to a residential ownership development shall be offered for sale to current and qualified tenants of the inclusionary units, and shall otherwise comply with the inclusionary housing guidelines.

B. Construction appearance and quality. Inclusionary units shall be comparable in exterior appearance and overall quality of construction to market-rate units in the same housing development. Interior finishes and features may differ from those provided in the market-rate units, so as long as the finishes and features are durable, of good quality, and consistent with contemporary standards for new housing.

C. Bedroom Mix and Unit Size. The number of bedrooms and the size of the inclusionary units shall be proportional to or greater than the number of bedrooms and size of the market-rate units, consistent with any adopted inclusionary housing guidelines.

D. Location. The inclusionary units shall be located so as not to create a geographic concentration of inclusionary units within the residential development.

E. Amenities. The inclusionary units shall have the same amenities as the market-rate units included within the affordable rent or affordable sales price for the inclusionary unit. For example, residents of the inclusionary units shall have the same access to and enjoyment of common open space, parking, storage, and other facilities in the residential development, and residents of the inclusionary units shall not be charged more than affordable rents or affordable sales prices as for the use of such facilities and amenities.

F. Density bonus. The developer of a residential development

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

providing all required inclusionary units upon the same site as the market- rate units may, at the developer's sole option and concurrently with the submittal of the inclusionary housing plan, submit a written request for a density bonus, waivers, modification of parking standards, or other regulatory incentives pursuant to Government Code Section 65915 et seq., and the provisions of Chapter 21.63 of the Long Beach Municipal Code, if the residential development meets all of the applicable requirements to qualify for a density bonus.

21.67.070 Timing of Construction of Inclusionary Units.

All required inclusionary units shall be made available for occupancy prior to, or concurrently with, the market-rate units. For the purposes of this subsection, “concurrently” means one of the following:

A. The inclusionary units may be constructed in phases if the market-rate units are constructed in phases, provided that the percentage of inclusionary units developed in each phase shall be equivalent to or greater than the total percentage of inclusionary units to be developed as part of the residential development until such time that all the inclusionary units have been built.

B. In-lieu fees, if applicable, have been paid.

C. The applicant has met, or made arrangements satisfactory to the City to meet, an alternative requirement as permitted by Section

21.67.080.

21.67.080 Developers’ Alternative Compliance Options.

A. In-Lieu Fee. All (i) ownership residential developments, (ii) rental residential developments proposing twenty (20) or less dwelling units, and (iii) residential developments specifically authorized by an action of the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

City Council after a finding of hardship has been made, may satisfy the inclusionary housing requirement in Section 21.67.050.A by the payment of a fee to the City in-lieu of constructing the inclusionary units within the residential development. In-lieu fees may be established from time-to-time by resolution of the City Council. No building permit shall be issued by the City for any market-rate unit in the residential development until all in-lieu fees for the residential development have been paid to the City. The developer shall provide specific written notice to any purchaser of any dwelling unit prior to the acceptance of any offer to purchase, and shall obtain executed acknowledgment of the receipt of such notice, that purchaser shall not have any right to occupy the dwelling unit until such time as all in-lieu fees owing for the residential development are paid to the City. All in-lieu fees shall be deposited in the inclusionary housing fund as described in Section 21.67.110.

B. Land Dedication. An applicant may dedicate land to the City or a local nonprofit housing developer, at no cost to the City or such housing developer, in place of actual construction of inclusionary units upon approval of the City Council. The applicant must comply with the following provisions and provide evidence of such compliance when the proposed land dedication is submitted to the City:

1. The applicant must exclusively control the land to be dedicated.

2. The land to be dedicated must be free of any liens,
easements or other encumbrances adversely impacting value, and must be fully served by necessary utility infrastructure.

3. The land to be dedicated cannot contain any
hazardous materials, and the applicant must disclose any previous hazardous materials located thereon and provide evidence that remediation

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

was performed in compliance with applicable law.

4. The land to be dedicated cannot have been improved
with residential structures for a period of at least five (5) years prior to application submission.

5. All property taxes and other assessments must be fully paid at the time of application submission and at the time of actual dedication and/or conveyance.

6. The land to be dedicated must be located within one
(1) mile of the residential development that is subject to the requirements of this Chapter.

7. The existing General Plan and zoning standards
applicable to the land to be dedicated must allow for the requisite number of inclusionary units to be developed, and such land must otherwise be suitable in terms of size, configuration and physical characteristics to allow for such inclusionary unit development.

8. The development of the requisite number of
inclusionary units must be feasible without the need for City, Housing Authority, or Long Beach Community Investment Company assistance funds.

9. Any other requirements of the inclusionary housing
guidelines.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

provide greater public benefit than would provision of the inclusionary units on-site.

The compliance options in Paragraphs A and B of this Section do not qualify the residential development for a density bonus or other regulatory incentives unless the dedication of land conforms to the provisions of Government Code Section 65915(g).

21.67.090 Application and Review Procedures.

A. Inclusionary housing plan.

1. An application for the first approval of a residential development shall include an inclusionary housing plan describing how the development will comply with the provisions of this Chapter. As an alternative to compliance with the basic provisions included in Section

21.67.050, an applicant may propose one of the alternatives listed in Section 21.67.080 as part of the inclusionary housing plan.

2. Any proposed density bonus, waivers, modification of parking standards, or other regulatory incentives shall be included in the inclusionary housing plan.

3. Any adopted inclusionary housing guidelines may
specify the contents of the inclusionary housing plan. No application for a first approval for a residential development may be deemed complete unless an inclusionary housing plan is submitted in conformance with this Chapter.

4. The inclusionary housing plan shall be processed
concurrently with all other permits required for the residential development.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

attached to the first approval of any residential development to require recordation of the inclusionary housing regulatory agreement described in Paragraph B of this Section prior to the approval of any final or parcel map or building permit for the residential development.

5. The approved inclusionary housing plan for a
residential development, or for a building phase in a residential development, where phasing has been approved as part of planning entitlement approvals, may be amended prior to issuance of any building permit for the residential development or building phase, if applicable. A request for a minor modification of an approved inclusionary housing plan may be granted by the City Manager or their designee if the modification is substantially in compliance with the original inclusionary housing plan and conditions of approval. Other modifications to the inclusionary housing plan shall be processed in the same manner as the original plan.

6. Fair Housing and Marketing Plan. The inclusionary
housing plan shall describe the applicant's marketing plan, which shall comply with all applicable fair housing laws and shall not discriminate in the sale or rental of inclusionary units on the basis of race, national origin, color, religion, gender, disability, familial status, age, income source, or marital status.

B. Inclusionary housing regulatory agreement. The applicant shall enter into an inclusionary housing regulatory agreement with the City, in a form approved by the City Attorney, to be executed by the City Manager or their designee, to ensure that all the requirements of this Chapter are satisfied. The inclusionary housing regulatory agreement shall be recorded against the residential development (and contiguous property under common ownership and control in accordance with Section

21.67.050.C) prior to approval of any final or parcel map, or issuance of any

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

building permit, whichever occurs first.

C. The City Council, by resolution, may establish fees for the ongoing administration and monitoring of the inclusionary units, which fees may be updated periodically, as required.

D. The City Council hereby authorizes the Planning Commission to adopt inclusionary housing guidelines to implement this Chapter.

21.67.100 Continued Affordability.

A. All inclusionary units shall remain affordable to the targeted income group for the longer of (i) a period of fifty-five (55) years from the date of issuance of a tentative or final Certificate of Occupancy for such inclusionary units, or (ii) for so long as the subject property which includes such inclusionary units is developed for a residential use.

B. Any adopted inclusionary housing guidelines may include standard documents such as a resale restriction or regulatory agreement, for execution by the City Manager or their designee, in a form approved by the City Attorney, to secure the continued affordability of the inclusionary units approved for each residential development, provide ongoing maintenance obligations, define rent and sale price increase procedures, and provide formulas for how resale prices for ownership inclusionary units are calculated. Such document(s) shall be recorded against the residential development or the inclusionary units, as applicable.

C. Any eligible household that occupies an inclusionary unit must occupy that unit as its principal residence, unless otherwise approved in writing for rental to a third-party eligible household for a limited period of time due to household hardship, as may be specified in any adopted inclusionary housing guidelines.

D. No household may begin occupancy of an inclusionary unit

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

until the household has been determined to be eligible to occupy that unit by the City Manager or their designee. Any adopted inclusionary housing guidelines may establish standards for determining household income, affordable housing cost, provisions for continued monitoring of tenant eligibility, and other eligibility criteria.

E. Officials, employees, or consultants of the City, members of City boards and commissions, and the applicant and the applicant's officials shall comply with all applicable laws, regulations, and policies relating to conflicts of interest as to their eligibility to develop, construct, sell, rent, lease, occupy, or purchase an inclusionary unit. Any adopted inclusionary housing guidelines shall include conflict of interest provisions relating to the administration of this Chapter and the eligibility of persons to occupy inclusionary units.

21.67.110 Housing Trust Fund.

A. All in-lieu fees or other funds collected under this Chapter shall be deposited into the City's Housing Trust Fund and shall be maintained and accounted for separately in an inclusionary housing program subaccount.

B. Moneys deposited in the Housing Trust Fund pursuant to this Chapter may be used by City to pay for direct costs associated with the administration and enforcement of the program established by this Chapter.

C. After payment of expenses, if any, described in Paragraph B of this Section, all of the remaining moneys deposited in the Housing Trust Fund pursuant to this Chapter shall be expended to provide newly constructed housing affordable to very low-income households (or below). ///
///

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

21.67.120 Waiver.

A. Notwithstanding any other provision of this Chapter, the requirements of this Chapter may be waived, adjusted, or reduced by the City Council based upon a showing that applying the requirements of this Chapter would result in an unconstitutional taking of property or would result in any other unconstitutional result.

B. Any request for a waiver, adjustment, or reduction under this Section shall be submitted to the City concurrently with the inclusionary housing plan. The request for a waiver, adjustment, or reduction shall set forth in detail the factual and legal basis for the claim.

C. The request for a waiver, adjustment, or reduction shall be reviewed and considered in the same manner and at the same time as the inclusionary housing plan.

D. In making a determination on an application for waiver, adjustment, or reduction, the applicant shall bear the burden of presenting substantial evidence to support the claim. The City may assume each of the following when applicable:

1. That the applicant will provide the most economical
inclusionary units feasible, while still meeting the requirements of this Chapter and any adopted inclusionary housing guidelines; and

2. That the applicant will benefit from the incentives for the residential development as described in this Chapter and elsewhere in the Long Beach Municipal Code.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

invalidate the reduction, adjustment, or waiver, and a new application shall be required for a reduction, adjustment, or waiver pursuant to this Section.

21.67.130 Enforcement.

A. The City Manager and City Attorney shall be authorized to enforce the provisions of this Chapter and all inclusionary housing regulatory agreements and other covenants or restrictions placed on inclusionary units, by (i) suspension or revocation of any building permit or approval upon finding of a violation of any provision of this Chapter or such agreements or restrictions, and/or (ii) by civil action and any other proceeding or method permitted by law.

B. Failure of any official or agency to fulfill the requirements of this Chapter shall not excuse any applicant or owner from the requirements of this Chapter. No permit, license, map, or other approval or entitlement for a residential development shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this Chapter have been satisfied.

C. The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

I hereby certify that the foregoing ordinance was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2022, by the following vote:

Ayes: Councilmembers:

Noes: Councilmembers:

Absent: Councilmembers:

Recusal(s): Councilmembers:

City Clerk

Approved: __________________
(Date) Mayor

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LONG BEACH AMENDING THE LONG BEACH

MUNICIPAL CODE BY AMENDING AND RESTATING
CHAPTER 21.11, RELATING TO NO NET LOSS OF

AFFORDABLE RESIDENTIAL HOUSING UNITS IN THE CITY
The City Council of the City of Long Beach ordains as follows:

Section 1. Chapter 21.11 of the Long Beach Municipal Code is hereby amended and restated to read as follows:

Chapter 21.11

NO NET LOSS

21.11.010 Purpose and Intent.

The purpose of this Chapter is to implement California Senate Bill 330 (SB 330), the “Housing Crisis Act of 2019,” as codified in Government Code Section 66300 to insure that the City does not approve a Housing Development Project, as defined herein, that would have the effect of reducing the zoned capacity for housing of the City as it existed on January 1, 2018; or which would result in the demolition of existing housing units unless those units are replaced on at least a one (1) to one (1) ratio; and in the case of exiting low income units, that such units are only demolished if they are replaced, and that certain conditions related to affordability and tenant protections are met. It is the express intent of the City Council that this Chapter remain effective despite the possible expiration of Government

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

Code Section 66300.

21.11.020 Definitions.

The following words or phrases shall have the following meanings when used in this Chapter:

A. “Department” means the Department of Development
Services.

B. “Development Policy, standard or condition” means any of the following:

1. A provision of, or amendment to, the City’s General
Plan.

2. A provision of, or amendment to, a specific plan.

3. A provision of, or amendment to, a zoning ordinance.

4. A subdivision standard or criterion.

C. “Housing Development Project” means a use consisting of residential units only; mixed use developments consisting of residential and non-residential uses with at least two-thirds of the square footage designated for residential use; or transitional or supportive housing projects, or the demolition of any of the foregoing (see California Government Code Section 65589.5).

21.11.030 Applicability.

Except as otherwise specified in this Chapter, the provisions of this Chapter, apply to any of the following Housing Development Projects that submit development applications to the City after January 1, 2021:

A. New construction of any principal residential building; B. A change of a principal residential use to another principal use;

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

C. A change in the number of dwelling units;
D. A land division subject to Title 20 (Subdivisions) of the Long Beach Municipal Code; or
E. Legalization of an existing unpermitted dwelling unit; F. Demolition of an unpermitted or otherwise illegal dwelling unit that could otherwise be converted into a legal dwelling unit in accordance with applicable provisions of the City’s zoning or building regulations.

21.11.040 Exemptions.

The following are exempt from the requirements of this Chapter:

A. New construction of a single-family residence on a lot with no other principal uses or structures;
B. New construction or legalization of accessory dwelling units or junior accessory dwelling units;
C. Conversion to resident ownership of all rented spaces in a mobilehome park;
D. Addition of mobilehome spaces or mobilehomes in a
mobilehome park;
E. A lease project wherein two or more residential or commercial buildings are constructed and maintained on a parcel of land, and apartments, offices, stores or similar space are leased within one or more of the buildings, overall control of the land and buildings comprising the project being retained by the lessor.

21.11.050 Requirements.

A. Dwelling units that are proposed to be or have been
demolished, vacated, or converted from rental to “for-sale,” shall be replaced if they are permitted in the zone and are or were any of the

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

following:

1. Subject to a recorded covenant that restricts rents to levels affordable to persons and families of moderate, lower, very low or extremely low income within the five years prior to application submittal;

2. Occupied by lower, very low or extremely low income
tenants within the five years prior to application submittal; 3 Withdrawn from rent or lease in accordance with
Chapter 12.75 (commencing with Section 7060) of the California Government Code within the ten (10) years prior to application submittal.

B. The number and type of affordable replacement units shall be determined as follows:

1. The number of affordable replacement units for lower or very low income households shall be determined in accordance with Section 65915 of the California Government Code, or any successor statute;

2. Affordable replacement units for lower or very low
income households shall be provided at the level of affordability determined in accordance with Section 65915 of the California Government Code, or any successor statute;

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

b. The last household in occupancy if a unit is
unoccupied at the time of application submittal; or
c. The households at the highpoint of such units
that existed in the five-year period preceding application, if the units have been vacated or demolished.

4. At least the same total number of dwelling units and at least the same total number of bedrooms shall be replaced at the same or deeper level of affordability;

5. The required number of affordable replacement units
shall not be reduced as the result of the deeper level of affordability of the affordable replacement units;

6. Affordable replacement units affordable to lower, very low or extremely low income households shall be rental dwelling units; and

7. Moderate income units. Units subject to a covenant
that restricts rents to levels affordable to moderate income households shall be replaced with units that are affordable to households of moderate income or below moderate income. If they are replaced with units affordable to households of moderate income, the affordable replacement units may be rental or for-sale.

C. Inclusionary Housing or Density Bonus. Affordable
replacement units required by this Chapter may count toward any affordable housing set-aside units required in connection with the granting of a density bonus, or the requirements of the City’s inclusionary housing zoning regulations, if applicable;
D. Affordable replacement units shall be provided on-site.

Replacement units may be provided off-site if (i) the proposed development requiring replacement units does not have a residential component, or (ii) if the City Council determines, based on substantial evidence, that such off-

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

site compliance will provide greater public benefit than would provision of the replacement units on-site.

E. Tenure. Affordable replacement units in a common interest development or a single-family residential subdivision shall be for-sale only.

F. Timing. All permits and entitlements, including the building permits, for the affordable replacement units shall be obtained prior to, or concurrently with, the permits and entitlements, including the building permits, for the non-replacement units.

G. Duration of Affordability. The affordability term for replacement units shall be the longer of (i) fifty-five (55) years from the issuance of a tentative or final certificate of occupancy for such replacement units, or (ii) for so long as the subject property which includes such replacement units is developed for a residential use.

21.11.060 Approvals.

Notwithstanding any other provision of this Code, and in compliance with Government Code Section 66300 (regardless of whether such Section remains effective), where housing is an allowable use, the City shall not approve any application, project, policy or condition that would result in any of the following effects:

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

January 1, 2018. For the purpose of this Section, “less intensive use” includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, or new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or anything that would lessen the intensity of housing.

B. Imposing a moratorium or other limitation on housing development, including mixed use developments, unless a finding is specifically made that said restriction is necessary to protect against an imminent threat to the health and safety of persons residing in, or within the immediate vicinity of, the area subject to the moratorium; or for projects specifically identified as existing restricted affordable housing.

C. Notwithstanding the above, nothing in this Chapter shall prohibit the City from changing a land use designation or zoning ordinance to a less intensive use if the City concurrently changes the development standards, policies, and conditions applicable to other parcels within the City to ensure that there is no net loss in residential capacity.

D. This Chapter does not prohibit an the City from changing a land use designation or zoning ordinance to a less intensive use on a site that is a mobile-home park, as defined in Section 18214 of the Health and Safety Code, as of the effective date of this Chapter, and the no net loss requirement shall not apply.

E. This Chapter does not prohibit the City from enacting a development policy, standard, or condition that is intended to preserve or facilitate the production of housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or housing types that traditionally serve lower income households, including mobile-home parks, single-room occupancy units, or units subject to any form of rent or price

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802

control through the City’s valid exercise of its police power.

I hereby certify that the foregoing ordinance was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2022, by the following vote:

Ayes: Councilmembers:

Noes: Councilmembers:

Absent: Councilmembers:

Recusal(s): Councilmembers:

City Clerk

Approved:
(Date) Mayor
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28 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LONG BEACH AMENDING THE LONG BEACH

MUNICIPAL CODE BY AMENDING AND RESTATING
CHAPTER 21.67 RELATING TO INCLUSIONARY HOUSING
The City Council of the City of Long Beach ordains as follows:

Section 1. Chapter 21.67 of the Long Beach Municipal Code is hereby amended and restated to read as follows:

21.67.010 Purpose.

Chapter 21.67

INCLUSIONARY HOUSING
The City Council finds that the City of Long Beach faces a serious shortage of affordable housing units that is anticipated to increase over time. New residential development frequently does not provide housing opportunities for low- and moderate-income households due to the high cost of newly-constructed housing in the City. As a result, such households are effectively excluded from many neighborhoods, creating economic stratification detrimental to the public health, safety, and welfare. The purpose of this Chapter is:

A. To impose affordable housing requirements on residential development to avoid the remaining opportunities for affordable housing to be lost by the use of the scarce remaining land for residential development without providing housing affordable to persons and households of all RFA:bg A22-00134 (01-27-2022)
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28 incomes.

B. To enhance the public welfare by establishing policies which require the development of housing affordable to households of very low and moderate-incomes, help meet the City's regional share of housing needs, and implement the goals and objectives of the City's General Plan and Housing Element
C. To provide and maintain affordable housing opportunities in the community through an inclusionary housing program for both ownership and rental housing, and, in furtherance of that goal, include rental inclusionary housing requirements in this Chapter consistent with California Government Code Section 65850(g).

D. To provide the residential development community with alternatives to construction of the inclusionary units within a market-rate residential development.

21.67.020 Definitions.

A. "Adjusted for Household Size Appropriate for the Unit" means the household sizes defined in California Health and Safety Code Section 50052.5. This adjustment is used solely for the purposes of calculating the affordable rent and affordable sales price. For this purpose only, the household size is set at the number of bedrooms in the unit plus one.

B. "Affordable Rent" means the maximum monthly rent for very low-income households, including an allowance for tenant paid utilities, as defined in California Health and Safety Code Section 50053. The RFA:bg A22-00134 (01-27-2022)
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28 calculation is as follows: (i) one-twelfth of thirty percent (30%) of fifty percent (50%) of area median income adjusted for household size appropriate for the unit or (ii) market rent, whichever is less.

C. "Affordable Sales Price" means the maximum purchase price for moderate-income households as defined in California Health and Safety Code Section 50052.5. The calculation is as follows: not be less than twenty-eight percent (28%) of the gross income of the household, nor exceed one-twelfth of thirty-five percent (35%) times one hundred ten percent (110%) of area median income adjusted for household size appropriate for the unit. The affordable sales price shall include a reasonable down payment, and monthly housing cost payments as defined in California Code of Regulations, Title 25, Section 6920. These payments include principal and interest on a mortgage loan, private mortgage insurance, property taxes and assessments, a utility allowance established by the Housing Authority of the City of Long Beach, homeowner's insurance, homeowner's association dues, and a reasonable allowance for property maintenance and repairs, all as determined by the City.

D. "Applicant" or "Developer" means a person, persons, or entity that applies for a residential development and also includes the owner or owners of the property if the applicant does not own the property on which residential development is proposed.

E. "Approval Body" means a body with the authority to approve the proposed residential development or any component thereof.

F. "Area Median Income" means the annual median income for Los Angeles County, adjusted for household size, as published periodically in the California Code of Regulations, Title 25, Section 6932, or its successor provision, or as established by the City in the event that such median income figures are no longer published periodically in the California RFA:bg A22-00134 (01-27-2022)
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28 Code of Regulations.

G. "Building Permit" includes full structural building permits as well as partial permits such as foundation-only permits.

H. "Common Ownership or Control" refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member (or family member of such shareholder, partner or member) of the entity owns ten percent (10%) or more of the interest in the property.

I. "Contiguous Property" means any parcel of land that is:

1. Touching another parcel at any point;

2. Separated from another parcel at any point only by a public right-of-way, private street or way, or public or private utility, service, or access easement; or

J. "Density Bonus Units" means dwelling units approved in a residential development pursuant to California Government Code Section 65915 et seq., and Chapter 21.63 of the Long Beach Municipal Code that are in excess of the maximum allowable residential density otherwise permitted by the City.

K. "Downtown and Midtown Submarket" means those areas of the City located within the Downtown Plan Area (PD-30) and/or the Midtown Plan Area (SP-1), each as delineated on the City's Zoning Use District Map.

L. "First Approval" means the first of the following approvals to occur with respect to a residential development after the effective date of this Chapter: planning entitlement or building permit.

M. "Housing Element" means the then-current Housing Element RFA:bg A22-00134 (01-27-2022)
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28 of the City's General Plan prepared in accordance with state housing law.

N. "Housing Trust Fund" means the fund or account established by Section 3.92 of the Long Beach Municipal Code.

0. "lnclusionary Housing Regulatory Agreement" means an agreement in conformance with Section 21.67.090.B between the City and an applicant, governing how the applicant shall comply with this Chapter.

P. "lnclusionary Housing Guidelines" means any requirements for implementation and administration of this Chapter adopted by the City in accordance with Section 21.67.090.D.

Q. "lnclusionary Housing Plan" means a plan containing all of the information specified in and submitted in conformance with Section

21.67.090.A, specifying the manner in which inclusionary units will be provided in conformance with this Chapter and any adopted inclusionary housing guidelines.

R. "lnclusionary Unit" means a dwelling unit required by this Chapter to be affordable to very low or moderate-income households, as applicable, and subject to an inclusionary housing regulatory agreement.

S. "Market-Rate Unit" means a new dwelling unit in a residential development that is not an inclusionary unit subject to recorded affordability restrictions that meet the requirements of this Chapter.

T. "Moderate-Income Households" are those households whose income does not exceed one hundred twenty percent (120%) of the area median income, adjusted for the actual number of persons in the household as published annually by the California Department of Housing and Community Development.

U. "Ownership Residential Development" means (i) any
residential development that includes the creation of one or more dwelling units that may be sold individually, and (ii) any community apartment project 5 RFA:bg A22-00134 (01-27-2022)
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28 or residential development owned by a residential stock cooperative wherein owners own an undivided interest in the development together with the right to occupy a dwelling unit, commonly known as "own-your-owns".

21.67.050.A.2 until such time as it converts to an ownership residential development, at which time the development shall be subject to the requirements of Section 21.67.050.A.1.

V. "Planning Entitlement" means any discretionary approval of a residential development including, but not limited to, a general or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, design review, or coastal development permit.

W. "Rental Residential Development" means anyresidential development that creates one or more dwelling units that cannot be lawfully sold individually in conformance with the Subdivision Map Act.

X. "Residential Development" means any development for which a planning entitlement or building permit is required that includes:

1. The creation of one or more additional dwelling units;

2. Conversion of nonresidential uses to dwelling units; or

3. The conversion of a use from a residential rental
development to a residential ownership development.

Y. "Very Low-Income Household" are those households whose RFA:bg A22-00134 (01-27-2022)
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28 income does not exceed 50 percent (50%) of the area median income, adjusted for the actual number of persons in the household as determined by the United States Department of Housing and Urban Development and as published annually by the California Department of Housing and Community Development.

21.67.030 Applicability.

The provisions of this Chapter shall apply to:

21.67.040 Exemptions.

A. The following residential developments shall be exempt from the provisions of this Chapter:

1. Residential developments with nine (9) or fewer units.

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Government Code Section 66474.2 or 66498.1, provided that such residential developments shall comply with any predecessor ordinance, . resolution, or policy in effect on the date the application for the development was deemed substantially complete.

21.67.050 lnclusionary Housing Requirement.

A. On-site inclusionary requirement. Unless an alternative is approved as described in Section 21.67.080, residential developments subject to this Chapter shall provide certain dwelling units in the residential development as inclusionary units upon the same site as the residential RFA:bg A22-00134 (01-27-2022)
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28 development as follows:

If the application for first approval is submitted during calendar year 2023 or anytime thereafter, then the applicant shall provide eleven percent (11 %) percent of the units in the residential development available at an affordable rent to very low-income households.

B. Calculating the number of inclusionary units.

1. Calculations of the number of inclusionary units
required by this Section shall be based on the number of dwelling units in the residential development, excluding any density bonus units.

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2. In computing the total number of inclusionary units
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required in a residential development, fractions of an inclusionary unit shall either be (i) rounded up, or (ii) provided by the payment of an in-lieu fee as established in Section 21.67.080.A.

A. lnclusionary housing units included in a residential development resulting from the conversion of a use from a residential rental development to a residential ownership development shall be offered for sale to current and qualified tenants of the inclusionary units, and shall otherwise comply with the inclusionary housing guidelines.

B. Construction appearance and quality. lnclusionary units shall be comparable in exterior appearance and overall quality of construction to market-rate units in the same housing development. Interior finishes and features may differ from those provided in the market-rate units, so as long as the finishes and features are durable, of good quality, and consistent with contemporary standards for new housing.

D. Location. The inclusionary units shall be located so as not to create a geographic concentration of inclusionary units within the residential development.

F. Density bonus. The developer of a residential development RFA:bg A22-00134 (01-27-2022)
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28 providing all required inclusionary units upon the same site as the market rate units may, at the developer's sole option and concurrently with the submittal of the inclusionary housing plan, submit a written request for a density bonus, waivers, modification of parking standards, or other regulatory incentives pursuant to Government Code Section 65915 et seq., and the provisions of Chapter 21.63 of the Long Beach Municipal Code, if the residential development meets all of the applicable requirements to qualify for a density bonus.

21.67.070 Timing of Construction of lnclusionary Units.

All required inclusionary units shall be made available for occupancy prior to, or concurrently with, the market-rate units. For the purposes of this subsection, "concurrently" means one of the following:

A The inclusionary units may be constructed in phases if the market-rate units are constructed in phases, provided that the percentage of inclusionary units developed in each phase shall be equivalent to or greater than the total percentage of inclusionary units to be developed as part of the residential development until such time that all the inclusionary units have been built.

B. In-lieu fees, if applicable, have been paid.

C. The applicant has met, or made arrangements satisfactory to the City to meet, an alternative requirement as permitted by Section

21.67.080.

21.67.080 Developers' Alternative Compliance Options.

A In-Lieu Fee. All (i) ownership residential developments, (ii) rental residential developments proposing twenty (20) or less dwelling units, and (iii) residential developments specifically authorized by an action of the 12 RFA:bg A22-00134 (01-27-2022)
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28 City Council after a finding of hardship has been made, may satisfy the inclusionary housing requirement in Section 21.67.050.A by the payment of a fee to the City in-lieu of constructing the inclusionary units within the residential development. In-lieu fees may be established from time-to-time by resolution of the City Council. No building permit shall be issued by the City for any market-rate unit in the residential development until all in-lieu fees for the residential development have been paid to the City. The developer shall provide specific written notice to any purchaser of any dwelling unit prior to the acceptance of any offer to purchase, and shall obtain executed acknowledgment of the receipt of such notice, that purchaser shall not have any right to occupy the dwelling unit until such time as all in-lieu fees owing for the residential development are paid to the City. All in-lieu fees shall be deposited in the inclusionary housing fund as described in Section 21.67.110.

1. The applicant must exclusively control the land to be dedicated.

2. The land to be dedicated must be free of any liens,
easements or other encumbrances adversely impacting value, and must be fully served by necessary utility infrastructure.

3. The land to be dedicated cannot contain any
hazardous materials, and the applicant must disclose any previous hazardous materials located thereon and provide evidence that remediation 13 RFA:bg A22-00134 (01-27-2022)
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28 was performed in compliance with applicable law.

4. The land to be dedicated cannot have been improved
with residential structures for a period of at least five (5) years prior to application submission.

5. All property taxes and other assessments must be fully paid at the time of application submission and at the time of actual dedication and/or conveyance.

6. The land to be dedicated must be located within one
( 1) mile of the residential development that is subject to the requirements of this Chapter.

8. The development of the requisite number of
inclusionary units must be feasible without the need for City, Housing Authority, or Long Beach Community Investment Company assistance funds.

9. Any other requirements of the inclusionary housing
guidelines.

C. Other alternative compliance methods. A developer may propose an alternative compliance method to provide inclusionary units through other means consistent with any adopted inclusionary housing guidelines. The City Council may approve or conditionally approve such an alternative only if the City Council determines, based on substantial evidence, that such alternative compliance will provide as many or more inclusionary units at the same or lower income levels or will otherwise RFA:bg A22-00134 (01-27-2022)
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28 provide greater public benefit than would provision of the inclusionary units on-site.

21.67.090 Application and Review Procedures.

A lnclusionary housing plan.
1 . An application for the first approval of a residential development shall include an inclusionary housing plan describing how the development will comply with the provisions of this Chapter. As an alternative to compliance with the basic provisions included in Section

21.67.050, an applicant may propose one of the alternatives listed in Section 21.67.080 as part of the inclusionary housing plan.

2. Any proposed density bonus, waivers, modification of parking standards, or other regulatory incentives shall be included in the inclusionary housing plan.

4. The inclusionary housing plan shall be processed
concurrently with all other permits required for the residential development.

Before the approval body may approve the inclusionary housing plan, the approval body must affirmatively find that the inclusionary housing plan conforms to the requirements set forth in this Chapter. A condition shall be RFA:bg A22-00134 (01-27-2022)
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28 attached to the first approval of any residential development to require recordation of the inclusionary housing regulatory agreement described in Paragraph B of this Section prior to the approval of any final or parcel map or building permit for the residential development.

B. lnclusionary housing regulatory agreement. The applicant shall enter into an inclusionary housing regulatory agreement with the City, in a form approved by the City Attorney, to be executed by the City Manager or their designee, to ensure that all the requirements of this Chapter are satisfied. The inclusionary housing regulatory agreement shall be recorded against the residential development (and contiguous property under common ownership and control in accordance with Section

21.67.050.C) prior to approval of any final or parcel map, or issuance of any RFA:bg A22-00134 (01-27-2022)
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28 building permit, whichever occurs first.

C. The City Council, by resolution, may establish fees for the ongoing administration and monitoring of the inclusionary units, which fees may be updated periodically, as required.

D. The City Council hereby authorizes the Planning Commission to adopt inclusionary housing guidelines to implement this Chapter.

21.67.100 Continued Affordability.

A All inclusionary units shall remain affordable to the targeted income group for the longer of (i) a period of fifty-five (55) years from the date of issuance of a tentative or final Certificate of Occupancy for such inclusionary units, or (ii) for so long as the subject property which includes such inclusionary units is developed for a residential use.

D. No household may begin occupancy of an inclusionary unit RFA:bg A22-00134 (01-27-2022)
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28 until the household has been determined to be eligible to occupy that unit by the City Manager or their designee. Any adopted inclusionary housing guidelines may establish standards for determining household income, affordable housing cost, provisions for continued monitoring of tenant eligibility, and other eligibility criteria.

21.67.110 Housing Trust Fund.

A All in-lieu fees or other funds collected under this Chapter shall be deposited into the City's Housing Trust Fund and shall be maintained and accounted for separately in an inclusionary housing program subaccount.

C. After payment of expenses, if any, described in Paragraph B of this Section, at least seventy percent (70%).§1! of the remaining moneys deposited in the Housing Trust Fund pursuant to this Chapter shall be expended to provide newly constructed housing affordable to very low income households (or below), and the remaining moneys may be expended to provide housing affordable to moderate income households.

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28 21.67.120 Waiver.

A Notwithstanding any other provision of this Chapter, the requirements of this Chapter may be waived, adjusted, or reduced by the City Council based upon a showing that applying the requirements of this Chapter would result in an unconstitutional taking of property or would result in any other unconstitutional result.

C. The request for a waiver, adjustment, or reduction shall be reviewed and considered in the same manner and at the same time as the inclusionary housing plan.

1. That the applicant will provide the most economical
inclusionary units feasible, while still meeting the requirements of this Chapter and any adopted inclusionary housing guidelines; and

2. That the applicant will benefit from the incentives for the residential development as described in this Chapter and elsewhere in the Long Beach Municipal Code.

E. The waiver, adjustment or reduction may be approved only to the extent necessary to avoid an unconstitutional result, after adoption of written findings, based on substantial evidence, supporting the determinations required by this Section. If a reduction, adjustment, or waiver is granted, any change in the residential development shall RFA:bg A22-00134 (01-27-2022)
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28 invalidate the reduction, adjustment, or waiver, and a new application shall be required for a reduction, adjustment, or waiver pursuant to this Section. 21 . 67. 130 Enforcement.

C. The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

Section 2. The City Clerk shall certify to the passage of this ordinance by the City Council and cause it to be posted in three (3) conspicuous places in the City of Long Beach, and it shall take effect on the thirty-first (31st) day after it is approved by the Mayor.
/II
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20 1 I hereby certify that the foregoing ordinance was adopted by the City 2 Council of the City of Long Beach at its meeting of __________ _ 3 202l4, by the following vote:
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Ayes: Councilmembers:

Noes: Councilmembers:

Absent: Councilmembers:

Recusal(s): Councilmembers:

Approved:
(Date)
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01349259.DOCX
City Clerk
Mayor
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28 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LONG BEACH AMENDING THE LONG BEACH

MUNICIPAL CODE BY AMENDING AND RESTATING
CHAPTER 21.11, RELATING TO NO NET LOSS OF

AFFORDABLE RESIDENTIAL HOUSING UNITS IN THE CITY
The City Council of the City of Long Beach ordains as follows:

Section 1. Chapter 21.11 of the Long Beach Municipal Code is hereby amended and restated to read as follows:

Chapter 21.11

NO NET LOSS

21.11.010 Purpose and Intent.
--The purpose of this Chapter is to implement California Senate Bill 330 (SB 330), the "Housing Crisis Act of 2019," as codified in Government Code Section 66300 to insure that the City does not approve a Housing Development Project, as defined herein, that would have the effect of reducing the zoned capacity for housing of the City as it existed on January 1, 2018; or which would result in the demolition of existing housing units unless those units are replaced on at least a one (1) to one (1) ratio; and in the case of exiting low income units, that such units are only demolished if they are replaced, and that certain conditions related to affordability and tenant protections are met. It is the express intent of the City Council that this Chapter remain effective despite the possible RFA:bg A22-00134 (01-27-2022)
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28 expiration of Government Code Section 66300.

21.11.020 Definitions.

The following words or phrases shall have the following meanings when used in this Chapter:

A. "Department" means the Department of Development
Services.

B. "Development Policy, standard or condition" means any of the following:

1. A provision of, or amendment to, the City's General
Plan.

2. A provision of, or amendment to, a specific plan.

3. A provision of, or amendment to, a zoning ordinance.

4. A subdivision standard or criterion.

C. "Housing Development Project" means a use consisting of residential units only; mixed use developments consisting of residential and non-residential uses with at least two-thirds of the square footage designated for residential use; or transitional or supportive housing projectsJ. or the demolition of any of the foregoing (see California Government Code Section 65589.5).

21.11.030 Applicability.

A. New construction of any principal residential building; B. A change of a principal residential use to another principal use;
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28 C. A change in the number of dwelling units;
D. A land division subject to Title 20 (Subdivisions) of the Long Beach Municipal Code; or
E. Legalization of an existing unpermitted dwelling unit; F. Demolition of an unpermitted or otherwise illegal dwelling unit that could otherwise be converted into a legal dwelling unit in accordance with applicable provisions of the City's zoning or building regulations.

21.11.040 Exemptions.

The following are exempt from the requirements of this Chapter:

21.11.050 Requirements.

A. Dwelling units that are proposed to be or have been
demolished, vacated, or converted from rental to "for-sale," shall be replaced if they are permitted in the zone and are or were any of the 3 RFA:bg A22-00134 (01-27-2022}
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28 following:

B. The number and type of affordable replacement units shall be determined as follows:

1. The number of affordable replacement units for lower or very low income households shall be determined in accordance with Section 65915 of the California Government Code, or any successor statute;

3. Affordable replacement units for extremely low income households shall be provided in at least the same number as existed on the site within the five years prior to application submittal, or in the same proportion of extremely low income renter households to all renter households within the City, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database, if the income category is unknown for any of the following:
a. The current household in occupancy at the time
of application submittal;
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28 b. The last household in occupancy if a unit is
unoccupied at the time of application submittal; or
c. The households at the highpoint of such units
that existed in the five-year period preceding application, if the units have been vacated or demolished.

4. At least the same total number of dwelling units and at least the same total number of bedrooms shall be replaced at the same or deeper level of affordability;

5. The required number of affordable replacement units
shall not be reduced as the result of the deeper level of affordability of the affordable replacement units;

6. Affordable replacement units affordable to lower, very low or extremely low income households shall be rental dwelling units; and

C. lnclusionary Housing or Density Bonus. Affordable
replacement units required by this Chapter may count toward any affordable housing set-aside units required in connection with the granting of a density bonus, or the requirements of the City's inclusionary housing zoning regulations, if applicable;
D. Affordable replacement units shall be provided on-site.c Replacement units may be provided off-site if (i) the proposed development requiring replacement units does not have a residential component, or (ii) if the City Council determines, based on substantial evidence, that such off- RFA:bg A22-00134 (01-27-2022)
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28 site compliance will provide greater public benefit than would provision of the replacement units on-site., or off site, if both of the follo1;.iing are met:

1. The affordable replacement units count toward the
affordable housing set aside units required for a project subject to the City's inclusionary housing zoning regulations and are located within ti.No (2) miles of the principal Housing Development Project, and in an area 1.vith knovm displacement risk based on evidence satisfactory to the Department; and

2. The construction of such units does not result in units requiring replacement pursuant to this Chapter.

E. Tenure. Affordable replacement units in a common interest development or a single-family residential subdivision shall be for-sale only.

G. Duration of Affordability.
-----+1-. --R+-!e++nt+r-aH-1.-The affordability term for rental replacement units shall be the longer of (i) fifty-five (55) years from the issuance of the-£! tentative or final certificate of occupancy by the Cityfor such replacement units, or (ii) for so long as the subject property which includes such replacement units is developed for a residential use.

2. For sale. The initial sale of the affordable replacement units shall be restricted to eligible buyers and shall require an equity sharing agreement 1;.iith the City, as prepared by the City Attorney or designee and approved by the City Council.

H. Covenant and Agreement Required. A covenant and
agreement ensuring the continued availability of affordable replacement units shall be executed and recorded to the satisfaction of the City Attorney, 6 RFA:bg A22-00134 (01-27-2022)
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Notwithstanding any other provision of this Code, and in compliance with Government Code Section 66300 (regardless of whether such Section remains effective). where housing is an allowable use, the City shall not approve any application, project, policy or condition that would result in any of the following effects:

A. Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reducing the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district below what was allowed for the parcel or parcels and in effect as of January 1, 2018. For the purpose of this Section, "less intensive use" includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, or new or increased setback requirements, minimum frontage requirements., or maximum lot coverage limitations, or anything that would lessen the intensity of housing.

C. Notwithstanding the above, nothing in this Chapter shall prohibit the City from changing a land use designation or zoning ordinance to a less intensive use if the City concurrently changes the development standards, policies, and conditions applicable to other parcels within the City RFA:bg A22-00134 (01-27-2022)
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I hereby certify that the foregoing ordinance was adopted by the City Council of the City of Long Beach at its meeting of ________ , 20 __ , by the following vote:

Ayes:

Noes:

Absent:

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01349261.DOCX
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RFA:bg A22-00134 (01-27-2022)
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AMENDING RESOLUTION NO.

RES-21-0006 PROVIDING FOR AUTOMATIC

ADJUSTMENTS TO THE EXISTING INCLUSIONARY

HOUSING IN-LIEU FEES
WHEREAS, the City Council adopted Resolution No. RES-21-0006 on January 19 , 2021 (the “Resolution”), establishing the amount of various inclusionary housing in-lieu fees to be paid pursuant to Section 21.67 of the Long Beach Municipal Code; and
WHEREAS, the City Council wishes to amend the Resolution so that t he in- lieu fees established thereby automatically adjust in accordance with a published index; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:

Section 1. The above recitals are hereby declared to be true and correct and are incorporate d into this Resolution as findings of the City Council of the City of Long Beach.

Section 2. Section 4 of the Resolution is amended so that rather than review by the City Council every three (3) years, each of the in lieu fees established by the Resolution (collectiv ely, the “In Lieu Fees”) shall be automatically adjusted in accordance herewith. Beginning on January 1, 2024 and continuing on each January 1 thereafter, the In Lieu Fees shall increase by the same percentage as the year -to-year increase in the new home value index as published by the Real Estate Research Council.

Section 3. The City Clerk shall certify to the passage of this resolution by the City Council and cause it to be posted in three conspicuous places within the City and it shall take effect as hereinabove set forth.

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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664

I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2022 by the following vote:

Ayes: Councilmembers:

Noes: Councilmembers:

Absent: Councilmembers:

Recusal(s): Councilmembers:

City Clerk

Long Beach City CouncilFebruary 8, 2022

Long Beach City Council
February 8, 2022