1 Staff Recommendation – Alternatives Approval
Sec. 9-4.4705. – Alternatives to onsite affordable residential units. (a) An Applicant may comply with this article through one or more of the following alternatives approved in accordance with this section.
(1) Unless otherwise provided in this section, the use of an alternative or combination of alternatives shall be subject to approval by the designated review authority for the overall residential development project, as set forth in “Title 9 Planning and Zoning,” Chapter 4 “Zoning,” including ministerial review by the Zoning Administrator, and non-ministerial approvals by the Planning Commission or City Council. The alternative shall be approved if the review authority finds that the applicable provisions of this section are satisfied.
(2) Alternatives shall be based on a minimum of 20 percent of all units, lots, or parcels in a residential development project seeking alternative compliance. For purposes of determining the total number of BMR units required, density bonus units, accessory dwelling units, and junior accessory dwelling units are not included. (3) In accordance with state density bonus law, these alternatives are not available for BMR units that serve to qualify for a density bonus under Government Code Section 65915(g), unless the dedication of land conforms to the provisions of Government Code Section 65915(g).
(b) In-Lieu Fee Payment
(1) Payment in lieu of providing a unit. The Applicant may propose to pay the City an amount of money in lieu of providing a BMR unit, which shall be based on 20 percent of the residential development project’s units. The in-lieu payment for each BMR unit shall be set forth in a resolution adopted by the City Council. (2) In-Lieu Fees shall be paid prior to the issuance of the first building permit for the residential development project at the rate in effect at time of payment. Where an applicant will be creating custom lot subdivisions and selling the lots to individual purchasers, the applicant shall pay the in-lieu fee prior to the sale of the first lot. (3) In-lieu payments collected under this article shall be deposited into the City’s Housing In-Lieu Fund and shall be used only for the purpose of providing funding assistance for the provision of affordable housing, inclusionary monitoring costs, and administration costs. Administration costs shall not exceed 15 percent of any deposits into the Housing In-Lieu Fund. Such funds may also be used for a homebuyer's assistance program for eligible households. (4) The review authority shall approve the in-lieu fee alternative if all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
2 (c) Off-site construction. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential development project as BMR units, at affordability levels that meet or exceed the applicable on-site requirements in this article.
(1) Off-site BMR units shall be constructed within the City of Pacifica and shall receive Certificate of Occupancy prior to the issuance of any Certificate of Occupancy of the residential development project, unless being built in phases, in proportion to the phasing of the residential development project, as set forth in the Affordable Housing Agreement.
(2) Off-site BMR units shall be consistent and comply with the standards and requirements specified in this Article, except that the size and number of BMR units may differ from what the Applicant would have provided on-site. (3) BMR units shall be located on sites that are designated in the general plan for the intended residential development, have access to similar availability of services to the on-site units, and be accessible by paved roads.
(4) The review authority shall approve the off-site construction alternative provided all of the above requirements are satisfied. In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements.
(d) Off-site preservation. In lieu of building BMR units, the Applicant may request to create off-site BMR units through the purchase and conversion of existing market-rate units to affordable units, either by the Applicant or by a not-for-profit entity. When this off-site option is allowed, the Applicant must provide 20 percent of the residential unit floor area of the residential housing development as BMR units, at affordability levels that meet or exceed the applicable on-site requirements of this article. (1) The off-site preservation units must be located within the City of Pacifica. (2) The size and number of BMR units may differ from what the Applicant would have provided on-site.
(3) If a not-for-profit is involved, they must be approved by the City Manager. (4) The off-site preservation units used to qualify for this alternative must be purchased prior to the issuance of a building permit for the residential development project.
The Community Development Director may set out requirements related to the rehabilitation and condition of the property and the protection and/or temporary relocation of existing tenants. The Community Development Director may require that rehabilitation of the property and/or temporary relocation of existing tenants be completed before the issuance of a building permit for the residential development project.
3 (5) For five years prior to the preservation of the off-site units, the average market rents must have been higher than 100 percent of area median income rent limits. (6) The review authority shall approve the off-site preservation alternative provided all of the above requirements are satisfied. The project approval shall be conditioned to require compliance with all of the above requirements. (e) Land dedication. In lieu of building BMR units, the Applicant may propose to dedicate land to the City or to an affordable housing developer. (1) This land must be of equivalent or greater value than the amount of the required inlieu fee. The valuation of any land offered in-lieu shall be determined by an appraisal made by an appraiser mutually agreed upon by the City and the Applicant.
Costs associated with the appraisal shall be borne by the Applicant. (2) The timing of the land dedication shall be at or before issuance of a building permit of the. Marketable title to the site is transferred to the City, or an affordable housing developer approved by the City, prior to issuance of building permit of the residential development project pursuant to an agreement between the Applicant and the City.
(3) Approval of land dedication.
i. Land proposed to be dedicated to the City requires approval of the City Council, at its sole discretion. Factors considered for the approval may include, but are not limited to, general location, access to transit, buildability, current General Plan and zoning designations, availability utilities and other services, and the number of units that could be built at the location, and the availability of an affordable housing developer. ii. Land dedicated to an affordable housing developer requires approval of the Planning Commission, and the affordable housing developer must be approved by the City Manager. The Planning Commission shall approve the alternative to dedicate land to an affordable housing developer provided:
a. The site has a General Plan designation that authorizes residential uses and is zoned for residential development at a density to accommodate at least the number of affordable units that would otherwise be required.
b. The site is suitable for development of the BMR units, taking into consideration its configuration, physical characteristics, location, access, adjacent uses, and applicable development standards and other relevant planning and development criteria including, but not limited to, factors such as the cost of construction or development arising from the nature, condition, or location of the site. c. Infrastructure to serve the dedicated site, including, but not limited to, streets and public utilities, are available at the property line and 4 have adequate capacity to serve the maximum allowable residential density permitted under zoning regulations.
d. The site has been evaluated for the presence of hazardous materials and for the presence of geological hazards and all such hazards are or will be mitigated to the satisfaction of the City prior to acceptance of the site by the City.
e. The value of the site upon the date of dedication is equal to or greater than the in-lieu fee that would otherwise be required under Paragraph A. The value of the site shall be determined pursuant to the program guidelines approved by the City Manager or their designee.
(4) Transfer of the property. At the time the land is transferred to the City or to an affordable housing developer, the Applicant must have paid any outstanding property taxes, and the property must be free of any liens or encumbrances, unless otherwise approved by the City.
(5) In the event of approval, the residential development project shall be conditioned to require compliance with all of the above requirements, and any other applicable conditions as determined by the City Council.
(f) Combination. The Applicant may propose any combination of on-site construction, in-lieu payments off-site construction, off-site preservation, and/or land dedication.