Ordinance 1083 – Add Chapter 18.70 “Inclusionary Housing Program”
July 20, 2022
A. A total of 15% of all newly constructed dwelling units in residential developments shall be developed, offered to and sold or rented to loan and moderate-income households, at an affordable housing cost, as per the following breakdown:
1. Nine percent of all newly constructed dwelling units shall be sold or rented to low income households;
2. Six percent of all newly constructed dwelling units shall be sold or rented to moderate income households.
B. The inclusionary unit requirement set forth in Subsection A of this section may be reduced as follows:
1. If very low-income units are provided in lieu of required low income units, a credit of 1.5 units to every one unit shall be provided;
2. If very low-income units are provided in lieu of required moderate income units, a credit of two units to every one unit shall be provided;
3. If low-income units are provided in lieu of required moderate income units, a credit of 1.5 units to every one unit shall be provided.
C. In calculating the required number of inclusionary units, fractional units of .75 or above will be rounded up to a whole unit if the residential development consists of ten to 20 units; fractional units of .50 or above will be rounded up to a whole unit if the residential development consists of 21 or more units.
18.70.10 Alternatives.
In lieu of including inclusionary units in the residential development, the requirements of this Chapter may be satisfied through one or more of the alternatives set forth in this section, in accordance with procedures and standards set forth in the regulations.
A. In-lieu fee. At the discretion of the developer, if a residential development consists of 20 units or less, payment of a fee in lieu of all or some of the inclusionary units as follows:
1. The amount of the fee shall be calculated using the fee schedule established by resolution of the City Council.
2. One half of the in-lieu fee required by this subsection shall be paid (or a letter of credit posted) prior to issuance of a building permit for all or any part of the residential development. The remainder of the fee shall be paid before a certificate of occupancy is issued for any unit in the residential development.
Ordinance 1083 – Add Chapter 18.70 “Inclusionary Housing Program”
July 20, 2022
3. The fees collected shall be deposited in the Inclusionary Housing Trust Fund.
B. Off-site units. Upon application by the developer and at the discretion of the Director, the developer may satisfy the requirement of providing inclusionary units as part of the residential development, in whole or in part, by constructing or substantially rehabilitating the required number of inclusionary units at a site different than the site of the residential development.
C. Land donation. Upon application by the developer and at the discretion of the Director, the developer may satisfy the requirement of providing inclusionary units as part of the residential development, in whole or in part, by a conveyance of land to the city for the construction of the required inclusionary units.
18.70.12 Exemptions.
The following residential developments are exempt from the requirements of this Chapter:
A. Residential developments that obtained a discretionary approval from the City prior to the effective date of this Chapter, which obtain a building permit pursuant to that discretionary approval within one year of the effective date of this Chapter, and which obtain a certificate of occupancy pursuant to that same discretionary approval.
B. Residential developments that are exempt from this Chapter pursuant to state law.
18.70.14 Procedures.
A. At the times and in accordance with the standards and procedures set forth in the regulations, developers shall:
1. Submit an Inclusionary Housing Plan for approval by the Director, setting forth in detail the manner in which the provisions of this Chapter will be implemented for the proposed residential development;
2. Execute and cause to be recorded an Inclusionary Housing Agreement, unless developer is complying with this chapter pursuant to section
18.70.10 (A) or (C).
B. No discretionary approval shall be issued for all or any portion of a residential development subject to this Chapter until the developer has submitted an Inclusionary Housing Plan.
Ordinance 1083 – Add Chapter 18.70 “Inclusionary Housing Program”
July 20, 2022
C. No building permit shall be issued for all or any portion of a residential development subject to this Chapter unless the Director has approved the Inclusionary Housing Plan, and the Inclusionary Housing Agreement (if required) is recorded.
D. No certificate of occupancy shall be issued for all or any portion of a residential development subject to this Chapter unless the approved Inclusionary Housing Plan has been fully implemented.
18.70.16 Standards.
A. All inclusionary units shall be reasonably dispersed throughout the residential development; shall be proportional, in number, bedroom size and location, to the market rate units; and shall be comparable with the market rate in terms of the base design, appearance, materials and finished quality.
B. All inclusionary units in a residential development shall be constructed concurrently with or prior to the construction of the market rate units. In the event the City approved a phased project, some inclusionary units as required by this Chapter shall be provided within each phase of the residential development.
C. Inclusionary units shall be reserved for low- and moderate-income households at the ratios established pursuant to section 18.70.08 and shall be provided at the applicable affordable housing cost.
1. An inclusionary unit that is for rent shall remain reserved for the target income level group at the applicable affordable housing cost in perpetuity.
2. An inclusionary unit that is for sale shall remain reserved for the target income level group at the applicable affordable housing cost for a period of 45 years.
D. Notwithstanding subsection (C)(2) of this section, inclusionary units for sale may be sold to an above moderate income purchaser in accordance with procedures set forth in the regulations, provided that the sale shall result in a recapture by the City or its designee of a financial interest in the unit equal to (i) the difference between the initial affordable sales price and the appraised value at the time of the initial sale, and (ii) a proportionate share of any appreciation.
18.70.18 Enforcement.
A. The provisions of this Chapter shall apply to all developers and their agents, successors and assigns proposing a residential development. All inclusionary units shall be rented or sold in accordance with this Chapter and the regulations adopted pursuant to 18.70.20.
Ordinance 1083 – Add Chapter 18.70 “Inclusionary Housing Program”
July 20, 2022
B. Any individual who sells or rents an inclusionary unit in violation of the provisions of this Chapter shall be required to forfeit all monetary amounts so obtained.
Recovered funds shall be deposited into the Inclusionary Housing Trust Fund.
C. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Chapter, including but not limited to: (i) actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval; and (ii) actions for injunctive relief or damages.
D. In any action to enforce this Chapter or an Inclusionary Housing Agreement recorded hereunder the City shall be entitled to recover its reasonable attorney’s fees and costs.
18.70.20 Regulations.
The City Council shall by resolution establish regulations for the implementation of this Chapter.
18.70.22 Inclusionary Housing Trust Fund.
There is hereby established a separate fund of the City, to be known as the Inclusionary Housing Trust Fund. All monies collected pursuant to this Chapter shall be deposited in the Inclusionary Housing Trust Fund.
18.70.24 Administrative Fees.
The City Council may by resolution establish reasonable fees and deposits for the administration of this Chapter.
18.70.26 Taking Determination.
A. Commencing upon the approval or disapproval of the Inclusionary Housing Plan by the Director pursuant to the regulations, and within 15 days thereafter, a developer may request a determination that the requirements of this Chapter, taken together with the inclusionary incentives, as applied to residential development, would legally constitute a taking of property of the residential development without just compensation under the California and Federal Constitutions. The developer has the burden of providing economic information and other evidence necessary to establish that application of the provisions of this Chapter to the residential development would constitute a taking of the property of the proposed residential development without just compensation. The Director shall make the determination, which may be appealed in the manner and within the time set forth in Chapter 18.43.
Ordinance 1083 – Add Chapter 18.70 “Inclusionary Housing Program”
July 20, 2022
B. In making the taking recommendation or determination, the decision maker shall assume each of the following:
1. Application of the inclusionary housing requirement to the residential development;
2. Application of the inclusionary incentives;
3. Utilization of the most cost-efficient product type for the inclusionary units; and
4. External funding where reasonably likely to occur.
C. If it determined that the application of the provisions of this Chapter would be a taking, the Inclusionary Housing Plan shall be modified to reduce the obligations in the inclusionary housing component to the extent and only to the extent necessary to avoid a taking. If it is determined no taking would occur through application of this Chapter to the residential development, the requirements of this Chapter shall remain applicable.
SECTION 2: EFFECTIVE DATE: This Ordinance shall take effect thirty (30) days after its second reading and adoption by the City Council.
SECTION 3: SEVERABILITY: Should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.
SECTION 4: POSTING: The Mayor shall sign this Ordinance, and the City Clerk shall attest thereto and cause the same within fifteen (15) days of its passage to be posted at no less then five public places within the City of Norco.
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on July 20, 2022.
_______________________
Greg Newton, Mayor
City of Norco, California
ATTEST:
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Ordinance 1083 – Add Chapter 18.70 “Inclusionary Housing Program”
July 20, 2022
I, DANA ROA, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Norco, California, duly held on July 6, 2022 and thereafter at a regular meeting of said City Council duly held on July 20, 2022, it was duly passed and adopted by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on July 20, 2022.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California