Agenda packet — Newark City Council, January 22, 2026 (part 1 of 4)

AGENDA
Thursday, January 22, 2026
7:00 P.M.

Michael K. Hannon, Mayor
Matthew Jorgens, Vice Mayor
Terrence Grindall, Council Member
Julie Del Catancio, Council Member
Eve Marie Little, Council Member

A. ROLL CALL
B. PRESENTATIONS

1. Commendation for Planning Commissioner Fitts's 40th anniversary on the Planning Commission

2. Introduction of an employee
C. PUBLIC COMMENT
The public is invited to address the City Council on any item not listed on the agenda. Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Council from acting on non-agenda items.

D. CONSENT CALENDAR
Consent Calendar items are considered to be routine and may be approved by one motion.

There will be no separate discussion on these items unless there is a request by a Council Member, a staff member, or a member of the public to remove an item for separate discussion and action.

1. Approval of January 8, 2026, City Council Minutes

2. Waive further reading and adopt an ordinance amending Section 17.18.030 of the Newark Municipal Code and adding Chapter 17.27 to the Newark Municipal Code to update the Newark affordable housing program and affordable housing requirements

3. Waive further reading and adopt an ordinance adding Chapter 5.45 of the Newark Municipal

3. Waive further reading and adopt an ordinance adding Chapter 5.45 of the Newark Municipal Code and adding Chapter 5.50 to the Newark Municipal Code to establish rent review and residential landlord and tenant relations requirements

4. Adopt a resolution approving the acceptance of State General Fund Grant Funds (Grant) for Jerry Raber Ash Street Park - Updated Playground and Park Furnishings (CIP No. 1407), approving the Project Information Form, and appointing the City Manager or his designee to execute documents as necessary to effectuate utilization of the Grant to complete the Project.

5. Approve the project specifications and adopt a resolution accepting the bid and awarding a construction contract to Villalobos & Associates, Inc. for the 2026 Curb, Gutter, Sidewalk Replacement Project (CIP No. CIPA10007.FY2026) and the 2026 Citywide Accessible Ramps Project (CIP No. CIPA10001.FY2026), for a combined not-to-exceed project authorization, and determine the projects to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15301

6. Approval of Audited Demands

7. Adopt a Resolution Amending the 2024–2026 Biennial Budget and Capital Improvement Plan to Increase Funding for the Silliman Aquatic Center (CIP No. 1291) and Silliman Activity Center (CIP No. 1375) Roof Replacement Projects

8. Adopt a resolution authorizing the City Manager to execute a second amendment to the contractual services agreement with CSW Struber Stroeh Engineering Group to increase the not to exceed amount by $198,435 for a new contract total of $1,212,932 for the Old Town Streetscape Improvements Project
E. PUBLIC HEARINGS

1. Hearing to Consider an Ordinance of the City Council of the City of Newark Amending Title 17 (Zoning) of the Newark Municipal Code to Amend Chapter 17.26,§17.26.040, Accessory Dwelling Units, Generally Affecting Development Standards for the Construction Of Accessory Dwelling Units and Junior Accessory Dwelling Units, and to Amend Chapter 17.45, §17.45.010, Residential Uses, Generally Affecting the Use Classification for Accessory Dwelling Units and Junior Accessory Dwelling Units
F. OTHER BUSINESS

1. Presentation of the 2025 Community Survey Results

2. Consider a resolution adopting an update to the January 2010 Climate Action Plan initial framework

3. Economic Development Update and Informational Report

4. Accept the Annual Comprehensive Financial Report (ACFR) for the period ending June 30, 2025.

G. CITY MANAGER UPDATES
H. CITY COUNCIL MATTERS
City Council Members report on attendance at intergovernmental agency meetings, conferences, and seminars since the last meeting. City Council Members may also announce upcoming events and coordinate attendance; report on local events attended since the last meeting; and make brief comments on issues of concern.

I. CLOSED SESSION
J. ADJOURNMENT

MEETING INFORMATION
Members of the public may attend the meeting in person, watch online, or watch on Cable Channel 26.

The ability to observe online or Cable Channel 26 is predicated on those technologies being available and functioning without technical difficulties. Should those platforms not be available, or become non-functioning, or should the City Council otherwise encounter technical difficulties that make those platforms unavailable, the City Council will proceed with business in person unless otherwise prohibited by law.

How to view the meeting remotely
Livestream online at YouTube: https://www.youtube.com/@cityofnewark3077/streams. Copy/paste the YouTube URL into your browser if the link does not automatically open.

Cable Channel 26 - if the meeting does not broadcast live, please contact your service provider and request the City of Newark channel lineup.

Zoom will no longer be available for public participation unless required by Assembly Bill 2449. Should a Council Member or the Mayor attend the meeting via Zoom.com pursuant to Assembly Bill 2449, then the Webinar ID 821 1028 5108 will be activated. The Mayor will make an announcement at the beginning of the meeting that the City will be allowing public comment via Zoom. Raise your virtual hand to notify the City Clerk that you would like to speak during the item that you wish to speak on.

How to submit written Public Comment
Send an email to City Clerk by 3:00 p.m. the day of the meeting. Please identify the agenda item number in the subject line of your email. Emails will be compiled into one file and will be distributed to the City Council before the meeting. No question shall be asked of a council member, city staff, or an audience member except through the Mayor. No person shall interrupt the meeting. Any person who refuses to carry out instructions given by the Mayor for the purpose of maintaining order may be guilty of an infraction and may result in removal from the meeting.

Council Meeting Access/Materials
The agenda packet is available for review at Agendas and Minutes. The packet is typically posted to the City website the Friday before the meeting, but no later than 72 hours before the meeting. Pursuant to Government Code 54957.5, supplemental materials distributed less than 72 hours before this meeting, to a majority of the City Council, will be made available for public inspection at this meeting and will be made available for public inspection during regular business hours at the David W. Smith City Hall, made available for public inspection during regular business hours at the David W. Smith City Hall, 37101 Newark Boulevard, Newark CA. Materials prepared by City staff and distributed during the meeting are available for public inspection at the meeting or after the meeting if prepared by some other person. Documents related to closed session items or are exempt from disclosure will not be made available for public inspection. For those persons who require special accommodations, please contact the [email protected] at least two days prior to the meeting at City Clerk or 510-578-4266.

Mission Statement
It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark.

Senior Staff Members
David J. Benoun
City Manager
Lenka Hovorka
Assistant City Manager
Kristopher J. Kokotaylo
City Attorney
Steven Turner
Community Development Director
Edwin Miranda
CIO/Information Technology Director
Krysten Lee
Finance Director
Brittney Frye
Human Resources Director
Jonathan Arguello
Police Chief
Howard Young
Public Works Director
Nicholas Cuevas
Recreation and Community Services Director
Ryan Nishimoto
ACFD Deputy Chief
Roya Gonzalez
Strategic Initiatives Manager
Neetu Salwan
City Clerk
Colleen Lettire
Communications and Public Engagement Manager
Item B. 1.

DATE 01/22/2026
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT Commendation for Planning Commissioner Fitts's 40th anniversary on the Planning Commission
Commendation for Planning Commissioner Fitts in recognition of his 40th anniversary serving on the Planning Commission. A formal commendation has been prepared, and Planning Commissioner Fitts will be available at the meeting to receive it.

Attachments
Commendation Commissioner Fitts

COMMENDATION
PLANNING COMMISSIONER WILLIAM “BILL” FITTS
WHEREAS, Commissioner Fitts has continued dedicated service to the City of Newark by serving on the Newark Planning Commission since January 23, 1986, and is the longest serving Planning Commissioner in Newark history; and
WHEREAS, during COMMISSIONER FITTS’ tenure on the Planning Commission, the City of Newark has grown from a small town of approximately 37,000 people to a Silicon Valley Community of over 47,000 people; and
WHEREAS, COMMISSIONER FITTS has advanced the fiscal health and integrity of the City of Newark through his involvement in the review and approval of the Area 3 and 4 Specific Plan, the Bayside Newark Transit Oriented Development Specific Plan, the 2013 Newark General Plan, the NewPark Place Specific Plan, the Old Town Newark Specific Plan and a number of hotels and countless businesses and industries that provide property and sales tax revenue to the City; and WHEREAS, as a member of the Planning Commission, COMMISSIONER FITTS is especially proud of the projects such the Pacific Research Center, Aloft hotel and redevelopment of the former Ruschin school site that has been approved for our community; and WHEREAS, COMMISSIONER FITTS is proud of the overall body of work during his tenure and the positive collaborative experience with staff and the Newark City Council that has furthered the development goals of our community; and
WHEREAS, through his participation as a member of the Planning Commission in the development review process, COMMISSIONER FITTS has demonstrated integrity and a sincere concern for the quality of life in the City of Newark; and WHEREAS, in addition to his work on the Planning Commission, COMMISSIONER FITTS is also a member of Toastmasters, the former Newark Jaycees and an announcer of the Newark Days Parade;
NOW, THEREFORE, I, Michael K. Hannon, Mayor of the City of Newark on behalf of the City of Newark, do hereby commend
PLANNING COMMISSIONER WILLIAM “BILL” FITTS
for his outstanding and honorable service to the Newark community.

IN WITNESS THEREOF, I have hereunto set forth my hand and caused the Official Seal of the City of Newark, State of California, to be affixed this 22nd Day of January, Two Thousand Twenty-Six.

MICHAEL K. HANNON
Mayor
Item B. 2.

DATE 01/22/2026
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT Introduction of an employee
Sara Liew, Permit Technician, will be introduced at the City Council meeting.

Item D. 1.

DATE 01/22/2026
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT Approval of January 8, 2026, City Council Minutes Attachments
January 8, 2026 City Council Minutes
Thursday, January 8, 2026 Draft Minutes Page 1 of 5

CITY OF NEWARK

CITY COUNCIL MEETING
Council Chambers
37101 Newark Boulevard, Newark, CA 94560 | (510) 578-4266 | E-mail: [email protected]

DRAFT MINUTES
Thursday, January 8, 2026
7:00 P.M.

A. ROLL CALL
Mayor Hannon called the meeting to order at 7:00 p.m. Vice Mayor Jorgens, Council Members Grindall, Catancio, and Little were present.

Mayor Hannon announced that he would adjourn the meeting in memory of Retired Sergeant Frank Lehr, a devoted public servant whose life was defined by service, leadership, and commitment to others.

B. PRESENTATIONS
None.

C. PUBLIC COMMENT
Mike Marzano from First Presbyterian Church announced that the church will host its 49th Annual Dr.

Martin Luther King, Jr. Celebration on Sunday, January 11, 2026, at 3:00 p.m., and he encouraged everyone to attend.

D. CONSENT CALENDAR
No one from the audience requested to speak.

Council Member Catancio moved, Mayor Hannon seconded, to approve Consent Calendar items D.1 to D.4, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption.

The motion passed, 5 AYES.

1. Approval of December 11, 2025, City Council Minutes

2. Approval of Audited Demands

3. Waive further reading and adopt an ordinance amending the official zoning map established pursuant to Title 17 (Zoning) and Section 17.03.020 of the Newark Zoning Ordinance by rezoning a

0.84-acre parcel (Lot H) from Park to Residential High Density (RH), and rezoning a 28.26-acre parcel from Park to Residential Low Density with a Planned Overlay District for the “Mowry Village” subdivision project at 7400–7550 Mowry Avenue (APNs 537-0850-001-11, 537-0850-001-13, and Thursday, January 8, 2026 Draft Minutes Page 2 of 5
537-0850-002-00).

Ordinance No. 557

4. Waive further reading and adopt two ordinances: 1) Adding Chapter 2.14, “Public Art Committee,” to the Newark Municipal Code and 2) Adding Chapter 12.36, “Public Art in Public Places and Private Development,” to the Newark Municipal Code.

Ordinance No. 558
Ordinance No. 559
E. PUBLIC HEARINGS

1. Hearing to waive full reading and introduce by title only an ordinance amending Section 17.18.030 and adding Chapter 17.27 to the Newark Municipal Code to update the City’s Affordable Housing Program and affordable housing requirements
City Manager Benoun provided introductory remarks and project background.

Housing Policies and Programs Manager Michael Coulom; Principal Kristy Wang from Community Planning Collaborative; and Managing Principal Leo Ma from Century/Urban gave the presentation.

The presentation is on file with the City Clerk.

Mayor Hannon opened the public hearing.

No one from the audience requested to speak.

Mayor Hannon closed the public hearing.

Council Members asked clarifying questions and held discussion regarding Affordable Housing Program, requirements and Inclusionary Housing Policy.

Council Member Grindall moved, Vice Mayor Jorgens seconded, to approve the staff recommendation, with the exception that the small project in-lieu fee applies to nine or fewer dwelling units. The motion passed, 5 AYES.

Mayor called for a recess at 8:58 p.m. The meeting resumed at 9:08 p.m.

F. OTHER BUSINESS

1. Waive full reading and by title only introduce an ordinance adding Chapter 5.45 and adding Chapter

5.50 to the Newark Municipal Code to establish Residential Landlord and Tenant Relations regulations and a Rent Review program, and adopt a resolution to amend the 2024-2026 Biennial Budget and Capital Improvement Plan to fund the Emergency Rental Assistance Program.

Resolution No. 11805
City Manager Benoun provided introductory remarks and project background.

Thursday, January 8, 2026 Draft Minutes Page 3 of 5
The City’s Housing Policies and Programs Manager Michael Coulom and Principal Kristy Wang from Community Planning Collaborative gave the presentation. The presentation is on file with the City Clerk.

No one from the audience requested to speak.

Council Members asked clarifying questions and held discussion regarding Tenant Protection Programs.

Vice Mayor Jorgens moved, Council Member Little seconded, to approve the staff recommendation.

The motion passed, 5 AYES.

2. Adopt a resolution authorizing the City Manager to execute a contractual services agreement with Dudek for the development of an Urban Forest Management Plan Resolution No. 11806
City Manager Benoun provided introductory remarks and project background.

Environmental Services Manager James Scanlin gave the presentation. The presentation is on file with the City Clerk.

No one from the audience requested to speak.

Council Members asked clarifying questions and held discussion regarding development of an Urban Forest Management Plan.

Council Member Grindall moved, Council Member Catancio seconded, to approve the staff recommendation. The motion passed, 5 AYES.

3. Adopt a resolution approving the City of Newark Emergency Operations Plan 2025 Revision as the official emergency management framework for the City and affirming its alignment with the Alameda County Operational Area Emergency Operations Plan
Resolution No. 11807
City Manager Benoun provided introductory remarks and project background.

Emergency Services Coordinator Richard Martinez gave the presentation. The presentation is on file with the City Clerk.

No one from the audience requested to speak.

Council Members asked clarifying questions and held discussion regarding the EOC plan.

Council Member Little moved, Council Member Catancio seconded, to approve the staff recommendation. The motion passed, 5 AYES.

4. Adopt a Resolution of Intention and waive full reading and introduce by title only an ordinance authorizing an amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City Council of the City of Newark Resolution No. 11808
City Manager Benoun provided introductory remarks and project background.

Thursday, January 8, 2026 Draft Minutes Page 4 of 5
Human Resources Director Brittney Frye gave the staff report regarding the California Public Employees’ Retirement System (CalPERS) contract amendment.

No one from the audience requested to speak.

Council Member Grindall moved, Vice Mayor Jorgens seconded, to approve the staff recommendation. The motion passed, 5 AYES.

5. Resolution approving an amendment to the Employment Agreement with City Manager David J.

Benoun to serve as City Manager and approving an amendment to the City's salary schedule in conformance with California Code of Regulations, Title 2, Section 570.5 Resolution No. 11809
City Attorney Kokotaylo gave the staff report stating that the proposed action would result in a 5% salary increase effective as of January 1, 2026.

No one from the audience requested to speak.

The Council expressed appreciation for City Manager David Benoun’s leadership on key initiatives and for providing long-term stability for Newark as the second longest-serving city manager in Alameda County.

Council Member Grindall moved, Council Member Catancio seconded, to approve the staff recommendation. The motion passed, 5 AYES.

G. CITY MANAGER UPDATES
City Manager Benoun announced:

1. Fire Extinguisher Training, Wednesday, January 14, 2026, from 7:30 p.m. to 9:00 p.m. at the Clark W. Redeker Newark Senior Center, 7401 Enterprise Drive.

2. Public Art Committee vacancies. Applications are being accepted and are available online, at the City Clerk’s Office, or by requesting via email at [email protected]. The deadline for submitting an application is February 6, 2026.

H. CITY COUNCIL MATTERS
Council Member Catancio announced a Lunar New Year celebration at the Newark Library, in partnership with Senator Dr. Wahab, on February 28 from 12:00 p.m. to 3:00 p.m. She also reported attending an AVA Energy meeting, the firefighters’ holiday celebration, and the long-standing Optimist Club girls’ basketball tournament at Newark Memorial High School.

Council Member Little highlighted two upcoming events: the Tri-City Veterans Mixer on January 29 at O’Sullivan’s to connect veterans of all generations, and Mission Peak Yo-Yo Day, featuring professional performers, demonstrations, and hands-on activities for children.

Thursday, January 8, 2026 Draft Minutes Page 5 of 5
Council Member Grindall reported attending the Alameda County Library Advisory Commission meeting in Albany and visiting the Albany Library. He also announced a Town Hall with Tamales on January 26 from 6:00 p.m. to 8:00 p.m., inviting community members to attend and share their thoughts.

Vice Mayor Jorgens announced that 2026 marks Newark’s 150th anniversary, celebrating the City’s founding, growth, and community over the past century and a half.

Mayor Hannon honored Debbie Rodriguez, retiring CEO of Viola Blythe, who served 38 years and expanded the organization from serving a few individuals annually to over 20,000. He also noted the passing of Stephen Cassidy, CEO of the Chamber of Commerce, with a celebration of life scheduled at San Leandro High School.

1. Adopt a resolution approving the Mayor's appointment of two City Council Members, or the Mayor and one City Council Member, to serve as the City of Newark’s representatives on the Fremont–Newark / AC Transit Inter-Agency Liaison Committee.

Resolution No. 11810
Council Members asked clarifying questions.

Mayor Hannon moved, Vice Mayor Jorgens seconded, to appoint Council Member Grindall and Council Member Little to serve on as the City of Newark’s representatives on the Fremont–Newark / AC Transit Inter-Agency Liaison Committee and it was noted that Vice Mayor Jorgens will serve in this capacity for the upcoming year. The motion passed, 5 AYES.

I. CLOSED SESSION
None.

J. ADJOURNMENT
Mayor Hannon adjourned the meeting at 11:14 p.m. in memory of Retired Sergeant Frank Lehr. ___________________________________
Neetu Salwan, City Clerk
Item D. 2.

DATE 01/22/2026
TO Honorable Mayor and City Council Members
FROM Neetu Salwan, City Clerk
SUBJECT Waive further reading and adopt an ordinance amending Section

17.18.030 of the Newark Municipal Code and adding Chapter 17.27 to the Newark Municipal Code to update the Newark affordable housing program and affordable housing requirements
The ordinance was introduced at the January 8, 2026, City Council meeting. At this meeting, City Council revised Section 17.27.020 and 17.27.070(B) to define a Small Project as a project of 9 or fewer dwelling units and a Large Project as a project of 10 or more dwelling units, with Small Projects of 9 or fewer units eligible to satisfy affordable housing requirements through payment of the small project in-lieu fee.

Attached to this staff report are the draft ordinance considered by City Council on January 8, 2026 with amendments to Exhibit B in redline text, and the ordinance to be considered for adoption on January 22, 2026 and incorporating said amendments. A second reading of the ordinance is required prior to adoption.

Attachments
Inclusionary Ordinance (includes Exhibits A and B)
Inclusionary Ordinance with Exhibits_redline
1 of 4
Ordinance No.

ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK AMENDING SECTION 17.18.030 OF THE

NEWARK MUNICIPAL CODE AND ADDING CHAPTER

17.27 TO THE NEWARK MUNICIPAL CODE TO UPDATE

THE NEWARK AFFORDABLE HOUSING PROGRAM AND

AFFORDABLE HOUSING REQUIREMENTS
WHEREAS, the City of Newark (the “City”) occasionally initiates amendments to the Newark Municipal Code to clarify, add, or amend certain provisions to ensure that it remains current with federal and state law, internally consistent, simple to understand and implement, and relevant to changes occurring in the community; and
WHEREAS, on October 26, 2023, the City Council adopted Resolution No. 11,575, adopting a general plan amendment to repeal the Fifth Cycle Housing element for the period of 2015-2023 and adopt the Housing Element of the General Plan for the Period of 2023-2021 (Sixth Cycle) and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law; and
WHEREAS, the Sixth Cycle Housing Element includes Policy H5.4 to amend the Newark Municipal Code to include a build-first inclusionary housing requirement; and WHEREAS, the Sixth Cycle Housing Element includes Program H4.1 to adopt a policy giving individuals who live or work in Newark a preference in the lease or purchase of new affordable homes; and
WHEREAS, inclusionary housing policies are a tool that jurisdictions can use to increase the supply and funding of affordable housing within their communities; and WHEREAS, the availability of affordable housing is a concern for individuals of all demographics, ages, and economic backgrounds in communities throughout the State of California, including within the City of Newark; and
WHEREAS, Chapter 17.18 of the Newark Municipal Code (“NMC”) requires payment of an affordable housing impact fee and the City seeks to add Chapter 17.27 to the NMC to establish inclusionary housing requirements for new residential development projects that require new housing development projects to either provide on-site affordable units or pay a fee in lieu of providing on-site affordable housing units; and
WHEREAS, the City desires to amend NMC Section 17.18.030 and add Chapter 27 to Title 17 of the NMC, to implement the policies and programs of the Housing Element and more 2 of 4
Ordinance No.
specifically the general requirements for mitigating affordable housing impact from residential projects and to adopt a local preference policy; and
WHEREAS, the amendment of NMC Section 17.18.030 and addition of NMC Chapter

17.27 are collectively referred to as the “Project”; and WHEREAS, the affordable housing impact fee permitted by NMC Chapter 17.18 was previously established by Resolution No. 10,184 which is hereby incorporated into this ordinance by reference; and
WHEREAS, the City seeks to establish a policy of requiring specified types of new residential development to include affordable units with market rate units as part of the project, as set forth in proposed NMC Chapter 17.27 (the “Inclusionary Ordinance”). The Inclusionary Ordinance offers residential developers an option to pay a fee in lieu of providing affordable units as part of the project. As stated in the Inclusionary Ordinance, revenue from fees paid in lieu of providing on-site affordable housing units is used to defray the cost of producing affordable housing units in the City, thereby addressing the supply of affordable housing in the City. The affordable housing impact fee established by Resolution No. 10,184 establishes the amount of affordable housing impact fee that must be provided in lieu of a residential developer providing affordable units as part of the project; and
WHEREAS, a staff report dated December 9, 2025, and incorporated herein by reference, described and analyzed the Project for the Planning Commission; and WHEREAS, on December 9, 2025, the Planning Commission reviewed the staff report at a noticed public hearing on the Project, at which time all interested parties had the opportunity to be heard; and
WHEREAS, following the public hearing, the Planning Commission considered the staff recommendation as provided in the staff report, adopted Resolution 2,030 incorporated herein by reference, and transmitted the resolution to the City Council; and WHEREAS, a staff report dated January 8, 2026, and incorporated herein by reference described and analyzed the Project for the City Council; and WHEREAS, on January 8, 2026, the City Council reviewed the staff report at a duly noticed public hearing on the Project, at which time all interested parties had the opportunity to be heard; and
WHEREAS, the City Council did hear and consider all said reports, recommendations and testimony herein above set forth and used its independent judgement to evaluate the Project at the public hearing; and
3 of 4
Ordinance No.

WHEREAS, the City Council finds that the Project meets the requisite findings of fact necessary for approval as further explained in the staff report and the recommended findings of fact and determinations associated with this Ordinance, as identified in “Exhibit A” attached to this Ordinance; and
WHEREAS, the location and custodian of the Project application and other documents that constitute a record of proceedings for the Project is the City of Newark, 37101 Newark Blvd., Newark, CA 94560; and
WHEREAS, the City’s General Plan, Zoning Code, and Municipal Code are incorporated herein by reference, and are available for review at City Hall during normal business hours and on the City’s website.

NOW, THEREFORE, the City Council of the City of Newark does ordain as follows:

Section 1. That the foregoing recitals are true and correct and made part of this Ordinance.

Section 2. The Project is exempt from further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since the proposed amendments would not result in any physical changes and it can be seen with certainty that the amendments would not have a significant effect on the environment. The proposed changes to the NMC do not provide entitlements for any land use development projects, nor do they change the allowed uses of land or the intensity of any previously authorized use of land. Therefore, it can be seen with certainty that adoption of the proposed amendments and additions would not have a significant effect on the environment.

Section 3: Pursuant to NMC Sections 17.39.070 and 17.39.080, the City Council of the City of Newark does hereby make the findings of fact and determinations required by the NMC as further explained in the staff report and set forth in “Exhibit A” attached hereto and incorporated herein by this reference.

Section 4: NMC Section 17.18.030 is hereby amended, with revisions reflected in redline, and NMC Chapter 17.27 is hereby added to the Newark Municipal Code as identified in “Exhibit B”, attached hereto and incorporated herein by reference.

Section 5: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Newark hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof is declared invalid or unenforceable.
4 of 4
Ordinance No.

Section 6: Effective Date. This ordinance shall take effect thirty (30) days from the date of its passage. Before expiration of fifteen (15) days after its passage, this ordinance shall be published in The Tri-City Voice, a newspaper of general circulation published and printed in the County of Alameda and circulated in the City of Newark.

Ordinance No. 1
Exhibit A
Findings of Fact
Pursuant to Newark Municipal Code Sections 17.39.070 and 17.39.080, the City Council of the City of Newark does hereby make the findings of fact and determinations required by the City of Newark Municipal Code.

The City Council shall not approve a zoning amendment unless the proposed amendment meets the following criteria:

A. The amendment is consistent with the general plan
On October 26, 2023, the City Council of the City of Newark adopted Resolution No. 11,575, adopting a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law.

The 2023-2031 Housing Element contains the following policy and program related to the recommended action:

POLICY H5.4: Amend the existing Inclusionary Housing Ordinance to require onsite production of units rather than allowing the payment of an in-lieu or impact fee to support increased access to affordable housing opportunities across the city and in high opportunity areas.

PROGRAM H4.1: Apply local preference ordinance to new residential development in the Old Town area. Convene an Old Town community working group composed of residents, youth and business owners in the neighborhood. This group will work with staff to develop neighborhood priorities for an anti displacement program for the Old Town Newark Specific Plan area that supports community residents and small businesses to stay in place.

B. Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district.

There are no changes to district boundaries proposed as part of the action.

C. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare.

The proposed action is necessary to comply with the requirements of the City’s Housing Element of the General Plan for the Period of 2023-2031, which was adopted pursuant to State law. The requirement for affordable units and establishment of an inclusionary housing program will allow for the production of additional housing that is affordable to lower-income households throughout the community.

EXHIBIT B
1 Title 17. Zoning
Amendment to Newark Municipal Code Section 17.18.030 (Addition in redline) Section 17.18.030 Exemptions from payment of housing impact fee.

This fee shall not apply to developers of residential or non-residential development projects which fall within one or more of the following categories:

A. Emergency Food and Shelter Services. Development projects to be operated by nonprofit organizations and which will provide food storage, meal service, and/or temporary shelter to the homeless.

B. Specific Uses. Projects for any of the following uses:

1. Colleges and trade schools.

2. Community assembly.

3. Community garden.

4. Cultural institutions.

5. Day care centers providing care for eight or fewer persons.

6. Emergency shelter.

7. Park and recreation facilities.

8. Public works and utilities.

9. Schools.

10. Social service facilities.

11. Temporary uses.

C. Government Property. Residential or non-residential development projects located on property owned by the State of California, the United States of America, or any of its agencies and used exclusively for governmental or educational purposes.

D. Damaged Property. Any structure proposed to repair or replace a building that was damaged or destroyed by fire or other calamity, and construction of the replacement building begins within one year.

E. Vested Rights. Residential or non-residential development projects to the extent they have received a vested right to proceed without payment of housing impact fees pursuant to state law including those that are the subject of development agreements currently in effect with the city, if such development agreements were approved prior to the effective date of this chapter and where such agreements expressly preclude the city from requiring payment of the housing impact fee.

F. Prior Application. Residential or non-residential uses as set forth in an application for a building permit, use permit, rezoning or similar discretionary approval accepted as complete by the city prior to the effective date of this title; however, any extension or modification of such approval or permit after such date shall not be exempt.

EXHIBIT B
7 G. Affordable Housing. Housing for very low, low, or moderate income households that fully mitigates the development's impacts on the need for affordable housing.

H. Chapter 17.27. Residential development projects that fulfill the requirements of Chapter

17.27. …
Amendment to Newark Municipal Code to Add Chapter 17.27 Chapter 17.27. AFFORDABLE HOUSING
§ 17.27.010. Purpose.

The purpose of this chapter is to:

A. Enhance the public welfare by ensuring that future residential projects contribute to the attainment of the affordable housing goals set forth in the Housing Element of the General Plan of the City of Newark.

B. Increase the production of residential units in Newark that are affordable to households of very low, low, and moderate income.

C. Facilitate a cooperative effort between the City of Newark and the housing development community for the provision of affordable housing to all economic segments of the community.

D. Ensure that units affordable to households of very low, low and moderate income are distributed throughout the City's various neighborhoods. § 17.27.020. Definitions.

For purposes of this chapter, each of the following terms is defined as follows:
"Additions" are increases in habitable space to an existing building or structure. “Affordable Housing Agreement” means a contractually binding timebound agreement between the City of Newark and a developer of a residential project documenting all of the developer’s obligations pursuant to this chapter to implement an approved affordable housing program. "Affordable Housing Cost" means the housing cost for dwelling units as defined by California Health & Safety Code section 50052.5 for owner-occupied housing and the affordable rent for rental units as defined by California Health & Safety Code section 50053, as applicable. “Affordable Housing Developer” means a developer with experience constructing, owning and operating no fewer than four affordable residential projects in the State of California in the last 10 years or a developer that is otherwise approved by the City Manager.

EXHIBIT B
8 "Affordable housing program" means a method for providing the affordable units in the proposed residential project, a method for a payment in-lieu of providing affordable units, or a combination thereof, pursuant to Section 17.27.060.
"Affordable unit" means a for-sale or rental dwelling unit, restricted to an affordable housing cost for households with very low, lower or moderate incomes as defined in this chapter. "Area Median Income" or "AMI" means the annual median income for Alameda 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 County of Alameda in the event that such median income figures are no longer published periodically in the California Code of Regulations.
“Average AMI” means the mean of the household income level to which affordable units shall be made available.
"Building permit" means full structural building permits as well as partial permits for other vertical construction of the residential project.
“Construction phase” means either:

A. The area included within one City approved tentative subdivision map for a residential project where a single final map implements the entire approved tentative map; B. The area included within each separate final map for a residential project where multiple final maps implement the entire approved tentative map; or C. An area designated as a construction phase in an approved affordable housing agreement. "Developer" means the person(s) or legal entity(ies), who also may be the property owner, who is developing a particular project in the City.
"Dwelling Unit" shall have the definition given for dwellings in Newark Municipal Code Section

17.46.040.
"For-Sale" means and refers to any separately conveyable dwelling unit, including a condominium, stock cooperative, community apartment, or attached or detached single-family home, for which a parcel or tentative and final map is required for the lawful subdivision of the parcel upon which the dwelling unit is located or for the creation of the unit in accordance with the Subdivision Map Act (California Government Code section 66410 et seq.) after compliance with the applicable requirements of the Subdivided Lands Act (California Business and Professions Code section 11000 et seq.).
"Habitable space" means floor area within a dwelling unit designed, used, or intended to be used exclusively for living and sleeping purposes.
"Large project" means a residential project with ten or more dwelling units.

EXHIBIT B
9 "Lower income" shall have the definition given in California Health & Safety Code section 50079.5.
“Market rate unit” means a dwelling unit in a residential project that is not restricted to an affordable housing cost.
"Moderate income" shall have the definition given in California Health & Safety Code section 50093(b) except that the household shall earn no more than 120 percent of the area median income.
"Resale controls and/or rent restrictions" means legal restrictions, as set forth by the City of Newark, State and Federal law, by which the affordable units shall be restricted to ensure that the unit remains affordable to very low, lower or moderate income households, as applicable, permanently or for the longest period allowed by law. Such resale controls and/or rental restrictions shall generally be consistent with the requirements of Health and Safety Code Section 33334.3(f), as amended from time to time, and as may be more particularly set forth in this chapter. With respect to rental units, such rent restrictions shall generally be memorialized in the form of a regulatory agreement recorded against the applicable property. With respect to for-sale units, such resale controls shall generally be in the form of resale restrictions, deeds of trust and/or other similar documents recorded against the applicable property. "Rental" means and refers to a dwelling unit that is not a for-sale dwelling unit, and does not include any dwelling unit, whether offered for rental or sale, that may be sold separately from any other dwelling unit as a result of the lawful subdivision of the parcel upon which the dwelling unit is located or creation of the unit in accordance with the Subdivision Map Act (California Government Code section 66410 et seq.), or any residential project including such rental dwelling units.
"Residential project" includes, without limitation, contiguous or non-contiguous parcels under the same ownership or control that have one or more applications filed within a 24-month period for detached single-family dwellings, attached single-family dwellings, multiple dwelling structures, groups of dwellings, condominium or townhouse developments, condominium conversions, cooperative developments, mixed use developments that include dwelling units, and residential land subdivisions intended to be sold to the general public. All non-exempt residential projects are required to comply with the provisions of this Chapter. “Site control” means possession of a parcel in fee title or leasehold of at least 55 years, or an irrevocable right to acquire a parcel as demonstrated by a purchase and sale agreement, exclusive negotiating agreement, option agreement to purchase or lease the parcel, or similar, and valid for at least two years from date of submittal of initial application to the City of Newark. "Small project" means a residential project with nine or fewer dwelling units. "Very low income" means a household earning no more than the amount defined by California Health & Safety Code section 50105.

EXHIBIT B
1 § 17.27.030. General requirements.

A. Ten Percent Requirement. All large projects designed and intended for permanent occupancy located in any zoning district, for which an application for any use permit, design review approval or subdivision map is filed, shall maintain 10 percent of the total number of dwelling units within the development as affordable units, according to the terms of this chapter. All other large projects shall comply with Chapter 17.18. The foregoing requirement shall be applied no more than once to an approved residential project, regardless of changes in the character or ownership of the development, provided the total number of dwelling units does not change.

B. Affordability Levels. Affordable units provided pursuant to subsection A of this section shall be made affordable to very low, lower and moderate income households with an Average AMI at or below 50 percent of the area median income for rental residential projects and at or below 110 percent of the area median income for for-sale residential projects. For rental residential projects, the affordable housing cost for affordable units shall not exceed what is affordable to a household at 80 percent of the area median income. For for-sale residential projects, the affordable housing cost shall not exceed what is affordable to a household at 120 percent of the area median income. Affordability restrictions for each affordable unit shall generally be memorialized in the form of a regulatory agreement or covenant recorded against the applicable property.

C. Conditions of Approval. Any tentative map, use permit or design review approval approving a large project meeting the foregoing criteria shall contain conditions sufficient to ensure compliance with the provisions of this chapter. Such conditions shall specify the schedule of construction of affordable units, the number of affordable units, and appropriate resale controls and rental restrictions.

D. Concurrent Construction. All affordable units in a large project or construction phase of a large project shall be made available for occupancy concurrently with or in advance of the market rate units.

E. Design and Distribution of Affordable Units. Unless the City, at its sole discretion, and in cooperation with the developer, approves an alternative means of compliance pursuant to Section 17.27.060, all affordable units shall reflect the range of unit sizes as categorized by number of bedrooms provided in the residential project as a whole, have access to the amenities provided to market rate units in the project, and shall not be distinguished by exterior design, construction, or materials, and shall be reasonably dispersed throughout the project as determined by the Community Development Director. § 17.27.040. General procedures.

EXHIBIT B
1 A. Agreements. Prior to the issuance of a certificate of occupancy, resale restrictions and/or rental controls, as applicable, all of which must be acceptable to the Community Development Director and be consistent with the requirements of this chapter, shall be recorded against parcels having affordable units. For for-sale projects, the resale restrictions shall be effective for 99 years, and the 99 year period shall restart with each resale of the affordable unit. For rental projects the rental controls shall be effective for 99 years, or the longest term allowable by law. A developer may request a term of affordability of less than ninety-nine (99) years, but not less than fifty-five (55) years, by demonstrating that the term of affordability would otherwise make the affordable units financially infeasible.

B. Right of First Refusal. The resale restrictions shall provide that in the event of the sale of an affordable unit, the City shall have the right to purchase any affordable for-sale unit at the maximum prices which could be charged to an eligible household.

C. Selection Criteria. No household shall be permitted to occupy an affordable unit unless the City or its designee has approved the household's eligibility. For for-sale units, eligibility shall be determined prior to sale of the dwelling unit. For rental units, eligibility shall be determined prior to initial occupancy of the dwelling unit, and on an annual basis thereafter.

Eligible potential occupants of affordable units will be qualified on the basis of household income, the area median income, all sources of household income and assets, a relationship between household size and the size of available units, and any further criteria required by law. The developer or designee shall use an equitable selection method established in conformance with the terms of this chapter. No distinction will be made between adults and children. All persons in each of the following categories of otherwise qualified persons shall be selected before persons from the next succeeding category are selected:

1. First priority: persons who have been displaced by the proposed residential project;

2. Second priority: persons who live or work within the City of Newark;

3. Third priority: all other eligible persons.
§ 17.27.050. Public subsidy assistance.

A. It is the intent of this chapter that its requirements of construction and maintenance of affordable units shall not depend upon the availability of any government subsidies. This is not to preclude the use of such programs or subsidies where available, however, and it is anticipated that subsidies of rental units may be available from Federal, State, or regional agencies on an ongoing basis.

B. Technical and Financial Assistance. Upon request, the City or its designee may provide assistance to developers concerning information regarding financial subsidy programs and economic analysis designed to indicate the most suitable methods by which the terms of this chapter may be implemented.

EXHIBIT B
1 § 17.27.060. Alternative Means of Compliance.

This chapter is not intended to inhibit residential projects where providing affordable units is otherwise infeasible or impractical. Under certain circumstances, a developer may satisfy the requirements to provide affordable units pursuant to Section 17.27.030 (General requirements) through the following means, as documented by an affordable housing agreement:

A. Large Project In-Lieu Fee. Subject to City Council approval, the developer may satisfy requirements through payment of the large project in-lieu fee for any or all required affordable units. The large project in-lieu fee shall be paid prior to the issuance of a building permit for each dwelling unit in the project. The large project in-lieu fee shall be set forth in the City's Master Fee Schedule or by other action of the City Council. The large project inlieu fee amount may be amended from time to time by the City Council by resolution, to meet inflationary increases, and the amount shall be set forth in the City's Master Fee Schedule.

B. Clustered Affordable Units. Subject to City Council approval, with any conditions as may be required by the City, the developer may satisfy requirements to provide affordable units by clustering affordable units within the same site as the residential project or a site contiguous thereto. The clustered affordable units shall comply with all standards of subsection

17.27.030(E), except the standard requiring reasonable dispersal throughout the project. An application for clustered affordable units shall demonstrate the following:

1. The general requirements of section 17.27.030 establish a financial burden that would otherwise make the residential project infeasible.

2. Property management and resident services for the affordable units will be comparable to the unrestricted units and better meet the needs of moderate or lower income households.

C. Off-Site Affordable Unit Development. Subject to City Council approval, the developer may satisfy requirements to provide affordable units by causing the affordable units to be constructed on a non-contiguous site. An application for off-site affordable unit development shall demonstrate the following, unless otherwise authorized by the City Council:

1. The general requirements of section 17.27.030 establish a financial burden that would otherwise make the residential project infeasible.

2. Development of affordable units under the proposed alternative means of compliance is financially feasible.

3. The affordable units will be made available for occupancy concurrently with or in advance of the market rate units.

4. The developer’s site control of the non-contiguous site.

EXHIBIT B
1 5. The non-contiguous site’s capacity to accommodate the required affordable units as determined at the City’s sole discretion.

6. The developer’s written partnership with a qualified affordable housing developer if the developer does not propose to construct the affordable units themselves.

7. Property management and resident services for the affordable units will be comparable to the market rate units and better meet the needs of moderate or lower income households.

D. Site Dedication. Subject to City Council approval, the developer may satisfy requirements to provide affordable units by transferring fee title of a site to the City or, an affordable housing developer approved by the City, for development of the affordable units. The City shall not be required to construct affordable units itself, but may sell, lease, or otherwise transfer the dedicated site to an affordable housing developer for development of the affordable units.

Any funds collected by the City as a result of the transfer to an affordable housing developer shall be deposited into the City of Newark Affordable Housing Impact Fee Fund and used in accordance with Section 17.27.130. An application for site dedication shall demonstrate the following standards:

1. The general requirements of Section 17.27.030 establish a financial burden that would otherwise make the residential project infeasible.

2. The site proposed for dedication is competitive for public subsidy programs and the required affordable units are financially feasible on the site.

3. The site proposed for dedication is appraised at a value equal to or greater than the value of the housing impact fee.

4. The developer has site control of the site proposed for dedication.

5. The site proposed for dedication has sufficient capacity to accommodate the required affordable units.

6. Development of the site proposed for dedication will provide an equal to or greater number of affordable units as would be provided through adherence to the requirements of this chapter.

E. Other Contractually Binding Alternative Means of Compliance. The City Council, in its discretion, may permit a developer to comply with the purpose of this chapter for a particular residential project through implementation of an alternative affordable housing program instead of by compliance with the provisions of this chapter if:

1. Such alternative affordable housing program is set forth in a binding agreement, including, but not limited to, a government code development agreement, disposition and development agreement, disposition and development loan agreement, owner participation agreement, or affordable housing agreement with the City;

EXHIBIT B
1 2. The City Council finds that such alternative affordable housing program will provide an equal to or greater than level of affordable units as would be provided through adherence to the requirements of this chapter.
§ 17.27.070. Additional Provisions.

This chapter is not intended to place any unreasonable burden upon developers of residential projects, and for that reason confers significant economic and land use benefits thereon, as set forth below:

A. Density Bonus.

1. The limitations upon residential density contained in Title 17 shall be deemed modified to the extent required by the terms of this chapter. The city, upon request, may approve an increase in the number of dwelling units permitted in a proposed residential project governed by this chapter, when such an increase in density is consistent with State density bonus law per Section 65915 of the State Government Code and Newark Municipal Code Chapter 17.19. The dwelling units or parcels designated to meet the requirements of the City's affordable housing program shall count toward qualifying the proposed residential development for a density bonus.

2. A developer proposing affordable units may request to have the provisions required under this Chapter incorporated into any density bonus agreement required pursuant to California Government Code Section 65915 et seq. and Chapter 17.19 of this code or for affordable housing streamlining pursuant to state law.

B. Small Project In-Lieu Fees. A developer may satisfy the requirements to provide affordable units pursuant to Section 17.27.030 (General requirements) through the payment of the small project in-lieu fee; provided, that the proposed residential project has no more than 9 dwelling units. The small project in-lieu fees shall be paid prior to the issuance of a certificate of occupancy. The small project in-lieu fee shall be set forth in the City's Master Fee Schedule or by other action of the City Council. The small project in-lieu fee amount may be amended from time to time by the City Council by resolution, to meet inflationary increases, and the amount shall be set forth in the City's Master Fee Schedule. Any small project in-lieu fees collected from a small project will be committed to an affordable housing project pursuant to Section 17.27.130.

C. Fractional Units. In large projects where the calculation of the units required by Section

17.27.030(A) results in a fraction of a unit, such a fraction shall be paid in the form of the large project in-lieu fee, or the developer may elect to build an additional affordable unit. The fractional in-lieu fee payment shall be calculated as follows: Fractional unit divided by the total affordable units required, multiplied by the per square foot large project in-lieu fee rate, multiplied by the total habitable space in the residential project.

EXHIBIT B
1 D. Negotiated compliance. The City may, subject to City Council approval, adjust the required affordability levels of a particular residential project on a case-by-case basis if it is deemed necessary and appropriate by the City to maximize the best suited development for a site.

E. Waiver of Requirements. The City may, subject to City Council approval, waive the requirements of this chapter if there are unusual development costs associated with the property that would otherwise prevent the residential project from proceeding. Typically, such a condition would involve excessive costs inherent on the property, such as environmental contamination.
§ 17.27.080. Appeals.

A. Any person aggrieved by any action involving denial, suspension or revocation of an occupancy or other permit, or denial, suspension or revocation of any development approval, may appeal such action or determination in the manner provided for by Section 17.31.110.

B. Any developer or other person who contends that his or her rights conferred by this chapter have been adversely affected by any determination or requirement of any agency designated by the City as its administrative agent may notify the chief executive officer of said agency to that effect in writing, stating relevant facts. All such contentions shall be considered exclusively by said agency in accordance with such procedures as they may be established. In instances in which violations of this chapter or any agreement with the City on the part of said agency is alleged, City shall take appropriate investigative and corrective actions. § 17.27.090. Exemption to general requirements.

Residential projects which fall within one or more of the following categories shall not be subject to the requirements of this Chapter:

A. The construction of an accessory dwelling unit or junior accessory dwelling unit.

B. Government Property. Residential projects located on property owned by the State of California, the United States of America, or any of its agencies and used exclusively for governmental or educational purposes.

C. Damaged Property. Any structure proposed to repair or replace a building that was damaged or destroyed by fire or other calamity, and construction of the replacement building begins within one year.

D. Vested Rights. Residential projects to the extent they have received a vested right to proceed without payment of housing impact fees pursuant to state law including those that are the subject of development agreements currently in effect with the city, if such

EXHIBIT B
1 development agreements were approved prior to the effective date of this chapter and where such agreements expressly preclude the city from requiring payment of the housing impact fee.

E. Prior Application. Residential projects as set forth in an application for a building permit, use permit, rezoning or similar discretionary approval accepted as complete by the city prior to the effective date of this title; however, any extension or modification of such approval or permit after such date shall not be exempt. Residential projects that are exempt pursuant to this section shall still be required to comply with Chapter 17.18.

F. Affordable Housing. Housing for extremely low, very low, low, or moderate income households that fully mitigates the residential development's impacts on the need for affordable housing.
§ 17.27.100. Monitoring and Enforcement.

A. The provisions of this chapter shall apply to all agents, successors and assignees of a developer proposing a residential project governed by this chapter. No rezoning tentative map, parcel map, use permit, design review approval, building permit, or other entitlement shall be approved for any residential project unless exempt from or in compliance with the terms of this chapter.

B. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny or suspend any permit or development approval.

C. To the extent permissible by law, the City may require developers of affordable units and their successors and assignees to submit an annual report documenting compliance with the approved affordable housing program and/or conditions of approval, including selection criteria and resale controls and/or rent restrictions. Requirements may be published in the City’s administrative guidance.

D. To the extent permissible by law, the City may charge a fee to recoup the costs of confirming household eligibility for an affordable unit and compliance with resale controls and/or rent restrictions. Such costs shall be enumerated in an affordable housing agreement for the residential project, or the City’s published administrative guidance.

E. To ensure continued relevancy of this chapter and so as not to preclude future development or diminish the production of affordable units in the City of Newark, City Council shall review this ordinance no later than January 1, 2029, and every three years thereafter.

EXHIBIT B
1 § 17.27.110. Housing in-lieu fund.

All fees collected pursuant to Section 17.27.060 shall be deposited into a separate account to be designated the City of Newark housing in-lieu fund. The fees collected pursuant to Section

17.27.060, Section 17.27.070(B), Section 17.27.070(C), and all earnings from investment of the fees shall be maintained and expended in accordance with applicable law, and exclusively provide or assure continued provision of affordable housing in the City through acquisition, construction, development assistance, rehabilitation, financing, or other methods, and for costs of administering these programs. Funds may be used for the reasonable and actual administrative costs directly related to the provision of affordable housing financed by the fund. The housing shall be of a type, or made affordable at a cost or rent, for which there is a need in the City and, to the extent feasible, shall be utilized to provide for moderate, low, very low, and extremely low income housing. The fees collected shall be administered by the City Manager or designee, who may develop procedures to implement the purposes of the housing fund consistent with the requirements of this chapter and any adopted budget of the City. 1 of 4
Ordinance No.