Title 10 Planning and Zoning
Chapter 2 Zoning and Land Use
Article 13. Inclusionary Housing
10-2.2600 Purpose and Intent.
The City’s purpose and intent in enacting this Article are as follows:
To ensure the development and availability of decent, affordable housing to a broad range of households with varying income levels throughout the City; To promote the City’s goal to increase the number of affordable dwelling units in the City; To ensure the long-term affordability of dwelling units and availability of these units for eligible households in the future; To ensure that the private sector, in addition to the public sector, participates in the provision of affordable housing for eligible City residents; To ensure that affordable housing is dispersed throughout the City and throughout individual residential developments rather than segregated from market-rate housing. 10-2-2602 Definitions.
The following words, terms, and phrases, when used in this Article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. “Affordable housing cost” means the housing cost for for-sale inclusionary units as defined by California Health & Safety Code section 50052.5 for owner occupied housing, as applicable to the moderate-income households. “Affordable Housing Agreement” means a legally binding agreement between an applicant and the City, in a form and substance satisfactory to the Director of Community Services and City Attorney and suitable for recording, setting forth those provisions necessary to ensure that the requirements of this Article are, and will continue to be, satisfied. “Affordable rent” means the affordable rent for rental dwelling units as defined in California Health and Safety Code Section 50053. “Affordable sales price” means the maximum sales price for which a for sale inclusionary unit may be sold, that will result in the purchaser paying an affordable housing cost for the for-sale inclusionary unit, assuming a benchmark mortgage interest rate and minimum down payment as may be established by the City from time to time. “Applicant” or “developer” means a person, persons, or entity that applies to the City for one or more discretionary or administrative permits required for the development of a residential development and also includes the owner or owners of the property if the applicant does not own the property on which the development is proposed. “Building permit” means full structural building permits as well as partial permits such as foundation-only permits. “City Attorney” means the City of Redondo Beach City Attorney or designee. “Density bonus units” mean dwelling units approved in a residential development pursuant to California Government Code section 65915 et seq. and the City’s Density Bonus Ordinance (Article 9 of Title 10 of the Redondo Beach Municipal Code) that are in excess of the maximum residential density otherwise permitted by Title 10 of the Redondo Beach Municipal Code. “Director of Community Development” means the City of Redondo Beach Director of Community Development or designee. “Director of Community Services” means the City of Redondo Beach Director of Community Services or designee. “Dwelling unit” shall have the definition given for “dwelling” or “dwelling unit” in Section 10-2.402 of Title 10 of the Redondo Beach Municipal Code. “For-sale” means any dwelling unit, including but not limited to a condominium, townhome, other attached or detached single family dwelling unit, 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 for the creation of the unit in accordance with the Subdivision Map Act (California Government Code section 66410 et seq.). “Household” means one person living alone or two or more persons sharing residency. “Inclusionary Housing Plan” means a plan containing all the information specified in and submitted in conformance with Section 10-2.2614 of this Article specifying the manner in which inclusionary units will be provided in conformance with this Article. “Inclusionary unit” means a dwelling unit that is designated to meet the requirements set forth in this Article, and that must be made available at an affordable housing cost or an affordable rent to eligible moderate-, low- or very low-income households, as applicable to the unit. “In-lieu fee” means a fee paid by an applicant into the City’s Affordable Housing Project Fund established by Chapter 30 of Title 8 of the Municipal Code in-lieu of constructing inclusionary units pursuant to this Article. Payment of in-lieu fees shall be allowed as an alternative means of compliance in accordance with Section 10-2.2610 of this Article. “Low-income household” means a household whose income does not exceed the qualifying limits for lower income families for Los Angeles County as established and amended from time to time and published in the California Code of Regulations, Title 25, Section 6932. “Low-income unit” means a dwelling unit that is required to be sold or rented to a low-income household at an affordable sales price or an affordable rent, as applicable. “Market-rate unit” means a dwelling unit in a residential development that is not an inclusionary unit. “Moderate-income household” means a household whose income does not exceed the qualifying limits for moderate-income families for Los Angeles County as established and amended from time to time and published in the California Code of Regulations, Title 25, Section 6932. “Moderate-income unit” means a dwelling unit that is required to be sold or rented to a moderate-income household at an affordable sales price or an affordable rent, as applicable. “Rental” means 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 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 (Government Code section 66410 et seq.). “Resale Restriction Agreement” means a legally binding agreement between the City and the purchaser of a for-sale inclusionary unit, in a form as approved by the City Attorney, which requires that the inclusionary unit to be occupied by the purchaser for the term of the agreement, or sold to another moderate-income household at an affordable sales price. “Residential development” means any development project for which an application for any administrative or discretionary permit has been submitted to the City, and where the development would create new or additional dwelling units by the construction or alteration of structures, the conversion of a use to residential from any other use, or the conversion of a use to for-sale residential from rental residential use. “Very low-income household” means a household whose income does not exceed the qualifying limits for very low-income families for Los Angeles County as established and amended from time to time and published in the California Code of Regulations, Title 25, Section 6932. “Very low-income unit” means a dwelling unit that is required to be rented to a very low-income household at an affordable rent. 10-2.2604 Inclusionary Housing Requirement.
A residential development that includes two (2) or more dwelling units shall provide for the construction of inclusionary units in accordance with this section unless the development is exempt pursuant to Section 10-2.2612 of this Article.
Inclusionary Requirements for For-Sale Residential Developments.
For-sale residential developments with two (2) to nineteen (19) dwelling units shall include for-sale moderate-income units equal to nine percent (9%) of the total number of dwelling units in the residential development included within the residential development.
For-sale residential developments with twenty (20) or more dwelling units shall include for-sale moderate-income units equal to fifteen percent (15%) of the total number of dwelling units in the residential development included within the residential development.
As an alternative to developing for-sale inclusionary units within the residential development as set forth in paragraphs (1) and (2) above, for-sale residential developments of any number of dwelling units may satisfy the requirements of this Article by developing rental low-income units included within the residential development equal to fifteen percent (15%) of the total number dwelling units included in the residential development. The developer may create a separate legal parcel within the residential development upon which the rental low-income units may be located. The developer may, at their discretion, provide very low-income units rather than low-income units.
If a for-sale residential development is developed with the intent to initially rent the dwelling units, the residential development shall comply with the inclusionary requirements for rental residential developments set forth in Subsection 10-2.2604(b), and any future sale of the inclusionary units shall be addressed in the Inclusionary Housing Plan and Affordable Housing Agreement for the inclusionary units pursuant to Section 10-2.2614 of this Article.
Inclusionary Requirements for Rental Residential Developments.
Rental residential developments with two (2) to nineteen (19) dwelling units shall include rental moderate-income units equal to ten percent (10%) of the total number of dwelling units in the residential development. The developer may, at their discretion, provide rental low- or very low-income units rather than moderate-income units.
Rental residential developments with twenty (20) or more dwelling units shall include rental moderate-income units equal to fifteen percent (15%) of the total number of dwelling units in the residential development. The developer may, at their discretion, provide rental low- or very low-income units rather than moderate-income units.
Density Bonus Units. For purposes of calculating the number of inclusionary units required, additional units authorized as density bonus units will not be counted in determining the required number of inclusionary units.
Fractional Units. If computation of the total number of inclusionary units required in a residential development results in a fraction, the number of required inclusionary units shall be rounded down to the nearest whole number.
When a residential development includes a combination of for-sale and rental dwelling units, the number of required inclusionary units shall be calculated separately for the for-sale component and rental component of the development and combined to comprise the residential development’s total inclusionary housing requirement pursuant to this Article. 10-2.2606 Duration of Affordability Requirement.
For-sale inclusionary units produced pursuant to this Article shall be legally restricted to sale to and occupancy by moderate-income households for a single cumulative term of 55 years. During that term, the for-sale inclusionary units may only be sold and resold to moderate-income households at an affordable sales price for moderate-income households.
Rental inclusionary units produced pursuant to this Article shall be legally restricted to rental to and occupancy by households in the income level for which the inclusionary units were developed for a term of not less than 75 years. At the end of the 75-year term, the restrictions on rental of the inclusionary units may only be removed in the event that the property upon which the rental inclusionary units are located is rezoned and used for a non-residential use. 10-2.2608 Standards for Inclusionary Units.
General Standards.
Inclusionary units shall be made available for occupancy concurrently with or prior to the market rate units in the residential development. In the event the City approves a phased project, the required inclusionary units shall be provided proportionally within each phase.
Inclusionary units shall be comparable in construction quality and exterior design to the market rate units.
Access to Common Amenities. Residents of inclusionary units shall be provided the same rights and access to common amenities in the residential development as residents occupying market rate units. Common amenities include, but are not limited to, common open space, parking, storage, and other facilities in the development.
Standards for rental inclusionary units within a rental residential development and for-sale inclusionary units within a for-sale residential development.
Inclusionary units shall be reasonably dispersed throughout the residential development and not clustered in a specific geographic area of the development. The location of the inclusionary units within the development shall be designated before issuance of building permits for the development.
The bedroom mix for inclusionary units shall be proportional to the bedroom mix of the market rate units. The square footage of the inclusionary units shall be at least the square footage of the smallest floor plan of the market rate units with the same number of bedrooms.
The interior finishes and features for the inclusionary units shall be comparable to the base level interior finishes for the market rate units. The appliance packages in the inclusionary units shall be the same as the appliance packages provided in the base level market rate units.
Standards for Rental Inclusionary Units within a For-Sale Residential Development.
Rental inclusionary units within a for-sale residential development shall be comparable in construction quality and exterior design to the for-sale market rate units.
Interior improvements for the rental inclusionary units shall comply with the standards established or approved by the California Tax Credit Allocation Committee for residential units developed pursuant to the federal low-income housing tax credit program, unless housing quality standards for inclusionary units have been otherwise defined by the City.
The bedroom mix for the rental inclusionary units shall be consistent with the following requirements:
No more than fifteen percent (15%) of the rental inclusionary units may be studio units.
At least forty percent (40%) of the rental inclusionary units shall include two or more bedrooms.
The developer of the market rate residential development may enter into an agreement with a separate affordable housing developer to construct, own, and operate the rental inclusionary units, subject to the following requirements:
The affordable housing developer must have relevant recent experience developing affordable housing, as determined by the Community Development Department; and The affordable housing developer may not request any financial assistance from the City for the development of the rental inclusionary units. 10-2.2610 Alternative Means of Compliance.
Off-Site Construction. As an alternative to developing inclusionary units within the residential development as set forth in Section 10-2.2604, residential developments of any number of dwelling units may satisfy the requirements of this Article by developing rental low-income units located outside the boundaries of the residential development equal to fifteen percent (15%) of the total number of dwelling units in the residential development. Development of rental low-income units off-site shall be subject to the following requirements:
The rental low-income units shall be developed on a site not further than one quarter (1/4) mile from the market rate development.
The developer may, at their discretion, provide very low-income units rather than low-income units.
Inclusionary units shall be made available for occupancy concurrently with or prior to the market rate units in the residential development that triggered the requirement for inclusionary units. In the event the City approves a phased project, the inclusionary units shall be constructed concurrently with or prior to the first phase of the market rate residential development. Construction on the second phase of the development shall not commence until the required inclusionary units are complete and available for occupancy.
Interior improvements for the rental inclusionary units shall comply with the standards established or approved by the California Tax Credit Allocation Committee for residential units developed pursuant to the federal low-income housing tax credit program, unless housing quality standards for inclusionary units have been otherwise defined by the City.
The bedroom mix for the rental inclusionary units shall be consistent with the following requirements:
No more than fifteen percent (15%) of the rental inclusionary units may be studio units.
At least forty percent (40%) of the rental inclusionary units shall include two or more bedrooms.
The developer may apply to receive the density bonus, incentives, and concessions available pursuant to California Government Code § 65915 and Article 9 of Chapter 2 of Title 10 of the Redondo Beach Municipal Code (Density Bonuses) for inclusionary rental units developed off site pursuant to this subsection.
The developer of the market rate residential development may enter into an agreement with a separate affordable housing developer to construct, own, and operate the rental inclusionary units, subject to the requirements outlined in Subsection 10-2-2608(c)(4) of this Article.
In-Lieu Fee
Developers of for-sale and rental residential developments containing nine (9) or fewer units may fulfill the inclusionary housing requirement through the payment of in-lieu fees pursuant to an in-lieu fee schedule adopted by the City Council.
The City Council has the discretion to allow an in-lieu fee to be paid when it can be demonstrated that new construction of the required affordable units would create an extreme economic hardship due to such factors as project size, site constraints, and/or excessively large affordability gaps. The ultimate burden is on the developer to prove that none of the affordable housing production alternatives provided for in the Inclusionary Housing Ordinance can be used without creating an extreme economic hardship on the project. One manner in which this can be achieved is for the developer to demonstrate that the imposition of the affordable housing production requirement would violate the California and/or United States Constitutions. Developers seeking to pay in-lieu fees pursuant to this subsection shall apply for a modification pursuant to Section 10-2.2620 of this Article.
Prior to the effective date of this Article, and from time to time thereafter, the City Council shall adopt by resolution a schedule of in-lieu fees that shall be levied based on the square footage of the saleable area of for-sale residential developments or leasable area of rental residential developments.
The required in-lieu fees shall be paid prior to the issuance of the first building permit for the residential development. In the event the City approves a phased project, the developer may pay a pro rata share of the in-lieu fee, based on the number and sizes of phases, prior to the issuance of the first building permit for each phase of the residential development.
All in-lieu fees collected under this section shall be deposited in the Affordable Housing Project Fund established by Chapter 30 of Title 8 of the Municipal Code. 10-2.2612 Exemptions.
A new single-family dwelling or the replacement of one single-family dwelling with another single-family dwelling.
Accessory dwelling units and junior accessory dwelling units.
The reconstruction of any residential structures that have been destroyed by fire, flood, earthquake, or other act of nature provided that the reconstruction of the site does not increase the number of residential units.
Residential building additions, repairs, or remodels, provided that such work does not increase the number of residential units.
Residential projects which are developed in accordance with the terms of a development agreement that was approved by the City prior to enactment of this Ordinance.
Residential developments for which a planning application was formally submitted to the City and deemed complete by the City as of the effective date of this Article.
Should the planning entitlements for an approved residential project expire or be revoked by the City, the requirements of this Article shall then apply if a new planning permit is resubmitted for the residential project. 10-2.2614 Application and Review Procedures.
Inclusionary Housing Plan.
The applicant for a residential project subject to this Article shall submit an Inclusionary Housing Plan in a form as required by the City in conjunction with the other discretionary or ministerial applications required by the City for the residential development.
The Inclusionary Housing Plan shall include all information necessary to evaluate the project for compliance with the requirements of this Article, based on the applicant’s method of compliance, including but not limited to:
The number of inclusionary units provided;
The square footage and number of bedrooms for the inclusionary units; The general location of the inclusionary units within the development; The timing of construction of the inclusionary units in relation to the market-rate units; A description of the marketing plan for the inclusionary units to eligible residents of the City of Redondo Beach. The marketing plan shall comply with all applicable fair housing laws and shall include, but is not limited to, the following components:
Notification of local government and nonprofit agencies serving income qualified households in the City of Redondo Beach of the availability of inclusionary units and requesting assistance from these agencies in publicizing the availability of such units to their clients. A list of such agencies shall be provided to the applicant by the City.
Placement of signage on the project site advertising the availability of inclusionary units and providing contact information.
Advertisement of the availability of inclusionary units in multiple languages on social media outlets and local newspapers that cater to City of Redondo Beach residents.
If the applicant intends to utilize one of the alternative means of compliance, information necessary to determine compliance with the selected alternative; and An acknowledgement that a recordable Affordable Housing Agreement shall be entered into by the applicant, owner, and any other necessary party and an instrument as specified by the City restricting the inclusionary units as affordable shall be recorded against every inclusionary unit.
Approval of Inclusionary Housing Plan. The Inclusionary Housing Plan shall be considered concurrently with other required actions for the development.
When a residential development requires discretionary approval by the Planning Commission and/or City Council, the Inclusionary Housing Plan shall be considered by the final decision making authority for the required discretionary application.
Inclusionary Housing Plans for residential developments that do not require discretionary approvals shall be considered by the Community Development Department.
Appeals.
The decision of the Community Development Department shall be final and conclusive unless, within ten (10) days after the date of such decision, a written appeal is filed with the Community Development Department requesting a public hearing before the Planning Commission.
The Community Development Department shall set an appeal for a public hearing before the Planning Commission in a timely fashion.
Notice of public hearing before the Planning Commission to consider an appeal shall be given as follows:
By publication at least once in a weekly newspaper of general circulation in the City not less than ten (10) calendar days prior to the date of the public hearing; and By mailing a written notice thereof, not less than ten (10) days prior to the date of such hearing to the applicant, to the owner of the subject property and to the owners of properties within 300 feet of the exterior boundary of the subject property or properties; such notices shall be sent by first class mail, with postage prepaid, using the addresses from the last adopted tax roll, if available; and By posting such notice in at least one prominent place on or about each parcel which is the subject of the proposed action or upon utility poles or sticks along or about the street line of such parcel. In the event more than one parcel is the subject of such hearing, and such parcels comprise 200 or more feet of street frontage, at least one such notice shall be posted on or about the street line at intervals of not less than 200 feet, starting at either end of the subject properties where the property line intersects the street line.
The decision by the Planning Commission for the approval or denial of an Inclusionary Housing Plan or appeal shall be final and conclusive unless, by 5:00 p.m. of the tenth (10th) day following such decision (or of the next working day if the 10th day falls on a weekend or holiday):
A written appeal on the form designated by the City is filed by any interested party with the City Clerk requesting a public hearing before the City Council stating the grounds for the appeal and all required fees for said appeal are paid in full; or The Mayor or a member of the City Council requests a public hearing before the City Council stating the grounds for the appeal. Provided however that the City Council member or Mayor requesting the appeal shall disqualify him or herself from hearing the appeal unless he or she can certify in writing that the appeal is being requested as a result of public interest in the decision to be reviewed and he or she has no predisposition against or in favor of the project. The City Council as a whole shall be prohibited from voting to appeal any matter in which they will sit as the reviewing body.
Such appeal, or City Council request for a public hearing, shall be set for a public hearing by the City Clerk in a timely fashion.
Notice of public hearing before the City Council to consider an Inclusionary Housing Plan or appeal shall be given pursuant to Subsection 10-2.2614(a)(4)(a)(2).
The decision of the City Council on all applications shall be final and conclusive.
Recording of Affordable Housing Agreement.
An Affordable Housing Agreement in a form approved by the City shall be recorded against each inclusionary unit or the residential development in its entirety, as deemed appropriate by the Director of Community Services in consultation with the City Attorney. The Affordable Housing Agreement shall ensure that the applicant develops the required inclusionary units and complies with all other provisions of this Article and the approved Inclusionary Housing Plan.
Resale restrictions, deeds of trust, and/or other documents as deemed necessary or appropriate by the Director of Community Services shall be recorded against for-sale inclusionary units to ensure the continued affordability of the for-sale inclusionary units in compliance with this Article.
The City shall not issue a building permit for a residential development subject to the requirements of this Article without an Affordable Housing Agreement executed by the applicant, owner, and the City and recorded against the property, or payment of in-lieu fees in accordance with this Article. 10-2.2616 Requirements for Inclusionary Units.
For-Sale Inclusionary Units.
The initial sales price and subsequent resale price(s) shall be set at an affordable sales price for a moderate-income purchaser as defined in Section 10-2.2602 of this Article.
A resale restriction agreement shall be entered into and recorded against the inclusionary unit at each change of ownership to maintain the household income restriction on the inclusionary unit through the term of affordability established pursuant to Section 10-2.2606 of this Article.
When the term of affordability established pursuant to Section 10-2.2606 has expired, an inclusionary unit may be resold to an above moderate-income purchaser at market rate, provided that the sale shall result in a recapture by the City of a financial interest in the unit equal to the difference between the initial affordable sales price and the appraised value at the time of the initial sale, and a proportionate share of any appreciation. Funds received by the City pursuant to this subsection shall be deposited in the Affordable Housing Project Fund established by Chapter 30 of Title 8 of the Municipal Code.
The owner of the inclusionary unit shall use and occupy the inclusionary unit as the owner’s principal place of residence.
The owner is expressly prohibited from leasing or renting any part(s) of the inclusionary unit unless the City has given prior written consent to such lease or rental on the basis of a demonstrated hardship by the owner or for an approved caregiver.
Rental Inclusionary Units.
All rental inclusionary units required pursuant to this Article shall be rented to households in the appropriate income category as set forth in this Article and the approved Inclusionary Housing Plan for the rental residential development.
The maximum allowable rent of inclusionary units required pursuant to this Article shall be an affordable rent based on the applicable income levels, as defined in Section 10-2.2602 of this Article. 10-2.2618 Administration and Enforcement.
Program Administration. The Community Development Director shall have the authority to establish any administrative procedures and policies required to implement the purpose and intent of this Article.
Annual Report. The owner of inclusionary units shall be required to submit an annual report to the City as provided herein:
For-Sale Inclusionary Units. The owner of an inclusionary unit shall be required to submit an annual report to the City certifying continuing occupancy of the unit by the owner. The annual report shall be made on a form established by the City for this purpose.
Rental Inclusionary Units. The owner of rental inclusionary units shall submit an annual report summarizing the occupancy of each rental inclusionary unit for the year. The report shall be submitted on a form established by the City and shall include supplemental documents that demonstrate the total annual income of the occupants of the inclusionary unit(s), such as income tax returns or W-2s for the previous calendar year.
Enforcement.
The City Attorney shall be authorized to enforce the provisions of this Article and all affordable housing agreements, resale restrictions, deed of trust, and other requirements placed on inclusionary units by civil action and any other proceeding or method permitted by law. The City may, at its discretion, take such enforcement action as is authorized under this code and/or any other action authorized by law or by any regulatory document, restriction, or agreement executed under this Article.
Failure of any official or agency to fulfill the requirements of this Article shall not excuse any applicant or owner from the requirements of this Article. No permit, license, map, or other approval or entitlement for a residential development shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this Article have been satisfied.
The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the city from any other remedy or relief to which it otherwise would be entitled under law or equity. 10-2.2620 Modifications and Waivers
The requirements of this Article may be modified or waived if the developer demonstrates to the City Council that new construction of the required affordable units would create an extreme economic hardship due to such factors as project size, site constraints, and/or excessively large affordability gaps. The developer has the burden to prove that none of the affordable housing production alternatives provided for in the Inclusionary Housing Ordinance can be used without creating an extreme economic hardship on the project. One manner in which this can be achieved is for the developer to demonstrate that the imposition of the affordable housing production requirement would violate the California and/or United States Constitutions.
The developer, in order to request a City Council public hearing for consideration of the modification, must provide the following information:
Application of the inclusionary housing requirement to the residential development and modification/waiver requested; Information to demonstrate extreme economic hardships to justify the request for modification/waiver; Application of any applicable incentives;
Utilization of the most cost-efficient product type for the required inclusionary units; and; External funding where reasonably likely to occur.
Procedure of public hearing will adhere to the current adopted City Council Rules of Conduct.
Notice of public hearing before the City Council to consider an application for modification/waiver under this section shall be given as follows:
By publication at least once in a weekly newspaper of general circulation in the City not less than ten (10) calendar days prior to the date of the public hearing; and By mailing a written notice thereof, not less than ten (10) days prior to the date of such hearing to the applicant, to the owner of the subject property and to the owners of properties within 300 feet of the exterior boundary of the subject property or properties; such notices shall be sent by first class mail, with postage prepaid, using the addresses from the last adopted tax roll, if available; and By posting such notice in at least one prominent place on or about each parcel which is the subject of the proposed action, or upon utility poles or sticks along or about the street line of such parcel. In the event more than one parcel is the subject of such hearing, and such parcels comprise 200 or more feet of street frontage, at least one such notice shall be posted on or about the street line at intervals of not less than 200 feet, starting at either end of the subject properties where the property line intersects the street line.
If it is determined that the application of the requirements of this Article would create an extreme economic hardship, the requirements of this Article shall be modified, adjusted, or waived only to the extent necessary to avoid an unconstitutional result.
The determination of the City Council shall be final and conclusive.