ORDINANCE NO. 2024-1550
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA AMENDING SECTIONS 20.310.020, 20.310.030, 20.310.040, 20.310.050, 20.310.060, and 20.310.080 OF TITLE 20 OF THE SAN MARCOS MUNICIPAL CODE RELATIVE TO INCLUSIONARY HOUSING REQUIREMENTS AND ASSOCIATED DENSITY BONUS CALCULATIONS FOR RESIDENTIAL RENTAL PROJECTS AND INCLUSIONARY HOUSING AGREEMENTS Case No. TA 24-0002
City of San Marcos
WHEREAS, Chapter 20.310 of the San Marcos Municipal Code (SMMC), referred to as the City’s inclusionary housing ordinance, establishes requirements for the inclusion of affordable housing units for extremely low-, very low-, low-, and moderate-income households in residential development projects within the City’s jurisdiction; and WHEREAS, SMMC Section 20.310.030 currently exempts certain projects, including, but not limited to the construction of new residential rental projects, unless a developer has otherwise agreed by contract with the City to build affordable housing in consideration for a direct financial contribution or other form of local assistance from the City; and WHEREAS, the exemption for the construction of new residential rental projects was adopted by the City in compliance with the 2009 California Court of Appeal decision in Palmer/Sixth Street Properties LP v. City of Los Angeles, in which the court held a City of Los Angeles ordinance requiring developers to construct affordable housing units subject to rent restrictions for at least 30 years, or pay an in-lieu fee, violated the Costa-Hawkins Rental Housing Act because it prohibited landlords from setting rental rates at the start of a tenancy; and WHEREAS, the California Legislature’s adoption of Assembly Bill 1505, which went into effect on January 1, 2018, restored local agency authority to impose inclusionary and other affordable housing requirements on residential rental projects, including the construction of new rental units; and WHEREAS, as a result of the above-described changes to State law, the City desires to amend SMMC Section 20.310.030(F) to remove the exemption for the construction of new residential rental projects; and WHEREAS, the City further desires to amend SMMC Section 20.310.030(E) to allow inclusionary housing units to be counted towards density bonus entitlements to be consistent with Government Code section 65915(o)(8)(A)(ii) and to clarify that Chapter 20.310 is applicable to density bonus units by moving the remainder of Section 20.310.030(E) to Section 20.310.020; and WHEREAS, the City further desires to amend SMMC Section 20.310.040, which sets forth requirements for the development of residential rental projects that are not currently exempt from the inclusionary housing ordinance; and WHEREAS, the City currently requires residential rental projects of more than six units to reserve at least 15 percent of units for target households (extremely low, very low-, low-, or moderate-income households); and WHEREAS, AB 1505 codified as Government Code 65850 et seq. grants the State Department of Housing and Community Development the authority to review a local ordinance adopted or amended after September 15, 2017, if it requires more than 15 percent of the total number of units be affordable to, and occupied by, target households if either (i) the local agency has failed to meet at least 75 percent of its regional housing need allocation share over a five-year period; or (ii) the local agency has not submitted the required annual housing element report for two consecutive years; and WHEREAS, to clarify the applicable SMMC provision consistent with Government Code 65850, the City desires to amend SMMC Section 20.310.040(B) to require residential rental projects to reserve 15 percent of units for target households unless a higher percentage is requested by the developer or to pay an in-lieu fee to provide housing opportunities for target households; and WHEREAS, consistent with Government Code 65850, the City desires to amend SMMC Section 20.310.050(A) to allow all residential projects, regardless of size, to be allowed to pay a fee in lieu of reserving units for target households; and WHEREAS, consistent with Government Code 65850, the City desires to amend SMMC Section 20.310.060 to apply to rental residential projects in addition to for sale residential projects; and WHEREAS, the City further desires to amend SMMC Section 20.310.080, which provides the requirements for inclusionary housing agreements, to allow displaced tenants from another City affordable housing project to be placed on a waiting list for a new project, to provide guidelines for tenant relocation and to require affected projects to provide a copy of the annual lease agreement for affected unit(s) to the City to assist in monitoring inclusionary units for compliance with the ordinance; and WHEREAS, regulating inclusionary housing requirements and updating the City’s existing inclusionary housing ordinance to be consistent with State laws is necessary to continue protecting and preserving the health, safety and welfare of the community; and WHEREAS, the City desires to delete the exemptions for density bonus units and the construction of new residential rental projects from SMMC Section 20.310.030, and to amend the requirements for rental units under SMMC Section 20.310.040; and WHEREAS, the Development Services Department did study said request and recommends approval of said request; and WHEREAS, on June 17, the San Marcos Planning Commission held a duly noticed public hearing to consider the proposed revisions to the SMMC, and adopted a resolution recommending that the City Council amend certain provisions of the Zoning Ordinance related to Inclusionary Housing; and NOW, THEREFORE, the City Council of the City of San Marcos, California, in accordance with the freedom afforded to charter cities generally, and by the Charter of the City of San Marcos specifically, does ordain as follows:
Section 1. The foregoing recitals are true and correct and are incorporated herein as though fully set forth at this point.
Section 2. Existing San Marcos Municipal Code Chapter 20.310 is hereby amended to read as shown in the clean and redlined versions attached hereto as Exhibit “A” and Exhibit “B,” respectively, and incorporated herein by this reference.
Section 3. The proposed Text Amendments to Title 20 (Zoning Ordinance) of the San Marcos Municipal Code are exempt from the California Environmental Quality Act (CEQA) because this is not a project within the meaning of Section 15378 of the CEQA Guidelines because there is no potential for it to result in a physical change in the environment, either directly or indirectly. In the event this Resolution is found to be subject to CEQA, it is exempt from CEQA pursuant to the exemption contained in CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility of a significant effect on the environment.
Section 4. If any section, sentence, clause or phrase of this Ordinance is determined to be invalid, illegal or unconstitutional by a decision or order of any court or agency of competent jurisdiction, then such decision or order will not affect the validity and enforceability of the remaining portions of this Ordinance. The City Council declares that it would have passed and adopted the Ordinance, and each section, sentence, clause or phrase thereof, regardless of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.
Section 5. This Ordinance shall be effective thirty (30) days following its adoption. Within fifteen (15) days following its adoption, the City Clerk shall certify to the passage of this Ordinance and cause the same to be published, or the title thereof as a summary, in accordance with the provisions of State law in a newspaper of general circulation designated for legal notices publication in the City of San Marcos.
INTRODUCED at a regular meeting of the City Council of the City of San Marcos, California, held on the 23rd day of July 2024.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of San Marcos, California, at a regular meeting thereof, held on this 10th day of September, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
APPROVED:
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST: APPROVED AS TO FORM:
__________
Phillip Scollick, City Clerk Helen Holmes Peak, City Attorney City of San Marcos City of San Marcos
ATTACHMENT(S):
Exhibit A – Zoning Ordinance Text Amendments – CLEAN
EXHIBIT B – ZONING ORDINANCE TEXT AMENDMENTS – REDLINED Ordinance 2024-1550
July 23, 2024