RESOLUTION NO. 24- 2007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA
ESTABLISHING A SCHEDULE FOR PAYMENTS IN LIEU OF PROVIDING
BELOW MARKET RATE UNITS UNDER THE INCLUSIONARY PROGRAM
WHEREAS, the City of Pacifica has instituted a below market rate (" BMR") inclusionary) program pursuant to the General Plan and the City' s Five Year Vision Statement, adding Article 47 to Title 9, Chapter 4 of the Pacifica Municipal Code; and WHEREAS, outside of the City' s Redevelopment Project Area, a Developer of new housing may propose payment of money in -lieu of providing required affordable dwellings ; and
WHEREAS, Section 9- 4. 4706 requires that the method of determining the amount of such " in -lieu" payments be set from time to time by the City Council at a level that reflects the estimated cost to provide " Below Market Rate" (" BMR") units at rents or sale prices that are affordable to moderate and lower income household in Pacifica; and
WHEREAS, the United States Department of Housing and Urban Development HUD), and the California Department of Housing and Community Development HCD) have provided standards for determining the rents and housing prices that are affordable to Lower Income and Moderate Income Households, as defined in the ordinance, in the San Francisco Primary Metropolitan Statistical Area and the County of San Mateo;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PACIFICA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Median Housing Prices in Pacifica. During 2006, the reported median price for a single family dwelling in the City of Pacifica was Seven Hundred and Twenty Thousand Dollars ($ 720,000) and the median price for a condominium or town house was Five Hundred and Fifteen thousand Dollars 515, 000.)
SECTION 2. Moderate and Lower Household Incomes. For 2006, the annual income for moderate income for a family of four, using the bottom of the range, was $90, 501. The maximum annual income for a lower income family of four, using the bottom of the range, was $ 56, 551.
SECTION 3. Affordable Prices of "For Sale" Units. Applying HUD/ HCD affordability limits, and assuming a five percent down payment and a thirty- year mortgage at 6. 75%, the maximum price that a Moderate Income Household of four can pay for a home is Two Hundred Fifty Four Thousand Nine Hundred and Seventy-seven Dollars ($ 254, 977); the maximum price a Lower Income Household can pay is One Hundred Fifty -Eight Thousand and Ninety Dollars ($ 158,090.) The affordable price of any particular BMR unit will be calculated as part of the approval of each such unit and may be greater or smaller than the aggregate, average figures used to calculate in -lieu payments.
SECTION 4. Affordability Gap for " For Sale Units. If a required BMR unit is not provided on site, the in -lieu payment for each " for sale" unit shall be approximately equal to the difference between the sales price of an affordable unit and the median market sales price, as set forth below. This difference, the " affordability gap," shall be calculated separately for single family dwellings and each unit in a condominium/ town house project.
SECTION 5. Affordability Gap for Rental Units. If a required BMR unit is not provided on site, the in -lieu payment for each rental unit shall be approximately equal to the difference between the construction and operating cost of a multi -family rental unit, as established by the San Mateo County Housing Needs Study prepared by Economic & Planning Systems Inc., and the amount of capitalized net operating income generated by affordable rent, as established by the San Mateo County Housing Needs Study. This difference is the " affordability gap", as set forth below.
SECTION 6. In -Lieu Payment. If the City determines to accept payment in lieu of an on -site BMR unit, the payment schedule shall be as follows:
A. For a BMR Unit affordable to a Lower Income Household:
Rental Unit: $ 350, 000 ( Multi -Family Rental Unit Cost) 144, 584 ( Capitalized Net Operating Income)
205, 416 ( In -Lieu Payment)
For Sale Unit:
Detached Single Family: $ 720,000 (Market Rate Sales Price) 158, 090 ( Maximum Lower Income Sales Price)
561, 910 ( In -Lieu Payment)
Condominium/ Townhouse: $ 515, 000 ( Market Rate Sales Price) 158, 090 ( Maximum tower Income Sales Price)
356, 910 ( In -Lieu Payment)
B. For a BMR Unit affordable to a Moderate Income Household Rental Unit: $ 350,000 ( Multi -Family Rental Unit Cost) 323, 268 ( Capitalized Net Operating Income)
26, 732 ( In -Lieu Payment)
For Sale Unit:
Detached Single Family: $ 720, 000 ( Market Rate Sales Price) 254,977 (Maximum Moderate Income Sales Price)
465,023 ( In -Lieu Payment)
2-
Condominium/ Townhouse: $ 515, 000 ( Market Rate Sales Price) 254, 977 ( Maximum Moderate Income Sales Price)
260, 023 ( In -Lieu Payment)
SECTION 6. This payment schedule shall be in effect for Residential Developments for which the first building permit is issued on or after June 1, 2007. The payment is due and payable prior to occupancy of the first Market Rate Unit in the Residential Development.
SECTION 7. The in -lieu payment shall be reviewed and adjusted annually to reflect any increase or decrease in the median housing sale prices in Pacifica and such other factors as the City Council determines are relevant.
SECTION 8. In -lieu payments are subject to the adjustment and waiver provisions of the waiver and variance procedures of Sec. 9- 4.4710 of the City of Pacifica Municipal Code.
SECTION 9. Fees shall be segregated in to a housing trust fund and used only for those purposes set forth in Article 47 of the Municipal Code.
Passed and adopted at the meeting of the City Council of the City of Pacifica held on the Twenty- ninth day of May, 2007, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
ATTEST:
Ka by O' 4 onnell, City Clerk
APPROVED AS TO FORM:
a-za?
Cecilia Quick, City Attorney
Lancelle, Hinton & Vreeland
None
Digre & DeJarnatt
None
eeland, Mayor pro em
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