March 22, 2022
Agenda Item No. SS3
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Jaime Murillo, Principal Planner,
[email protected]
949-644-3209
TITLE:
Financial Evaluation and Framework for Future Inclusionary Housing Ordinance (PA2022-045) ABSTRACT:
As directed by Policy Action 1K (Inclusionary Housing Policy) of the City of Newport Beach’s (City’s) recently adopted 2021-2029 Housing Element, the City is in the process of developing an inclusionary housing ordinance and evaluating the financial impacts that an ordinance may have on housing development and the parameters that will make it most effective. Keyser Marston Associates, Inc. (KMA) was engaged to assist in evaluating the potential for reinstating a citywide inclusionary housing ordinance, including the preparation of a financial evaluation.
Staff will provide the City Council with the findings of the KMA financial evaluation and request input for the framework of the future inclusionary housing ordinance.
RECOMMENDATION:
Provide staff direction for framework of the future inclusionary housing ordinance, including the inclusionary housing percentage, applicability of the ordinance and alternatives for compliance.
DISCUSSION:
At the September 14, 2021 City Council study session, staff presented on the subject of developing an inclusionary housing ordinance. At the study session, the City Council requested more information on how an inclusionary ordinance would financially impact future housing projects. The City Council directed staff to conduct a financial evaluation on what terms of an ordinance can be financially supportable and report back to the City Council.
Staff engaged with KMA to prepare the financial evaluation. The KMA financial evaluation identifies the supportable inclusionary housing program requirements that balance the interests of property owners and developers against the City’s need for affordable housing. The financial evaluation includes a legal background of inclusionary housing programs in California, anticipated financial impacts that inclusionary requirements would have on both ownership housing and rental housing projects in Newport Beach, recommendations for a supportable inclusionary housing percentage, and recommended in-lieu fee payment that a developer can pay as an alternative to on-site construction.
FISCAL IMPACT
The potential fiscal impacts of an inclusionary housing ordinance are detailed in the KMA financial evaluation.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). In addition, the City issued a News Splash on February 18, 2022, providing advanced notice of this study session item, and making the Draft Inclusionary Housing: Financial Evaluation prepared by KMA available for public review and comment.
ATTACHMENTS:
Attachment A – Draft KMA Inclusionary Housing: Financial Evaluation www.newportbeachca.gov/inclusionary Attachment B – Correspondence
SS3-3
SS3-1
Financial Evaluation and Framework for Future Inclusionary Housing Ordinance (PA2022-045) March 22, 2022
CITY OF CITY OF
CITY OF
CITY OF
City Council Staff Report COUNCIL STAFF REPORT City Council Staff Report COUNCIL STAFF REPORT NEWPORT BEACH NEWPORT BEACH City Council Staff Report COUNCIL STAFF REPORT
City Council Staff Report COUNCIL STAFF REPORT
NEWPORT BEACH
NEWPORT BEACH