cc 2022 AR 04/19 inclusionary housing — Vista City Council, April 19, 2022

ACTION:
____________________________
Clerk/Secretary
Department: Community Development Item No: D1
Prepared by: John Conley, Director Meeting Date: April 19, 2022 Approved by: Patrick Johnson, City Manager Agenda Location: Workshop Discussion SUBJECT: INCLUSIONARY HOUSING
RECOMMENDATION: Discuss an inclusionary housing policy and provide direction to staff.

PRIOR ACTION: On April 28, 2015, adopted the following: 1) City Council Ordinance No. 2015- 6, amending Vista Development Code Chapters 18.34, R-M Multi-Residential Zone, and 18.35, M-U Mixed- Use Zone, to repeal inclusionary housing requirements; 2) City Council Ordinance No. 2015-7, amending Vista Development Code Chapter 18.31, Second Unit Requirements, to repeal affordable housing covenants for second units; and 3) City Council Resolution No. 2015-66, repealing City Council Policy 300- 13, Inclusionary Housing (Vote: 4-1, Campbell opposed).

A complete list of prior actions is included as Exhibit 6.

STATEMENT ON THE SUBJECT: Inclusionary housing is a city’s program to reserve a certain percentage of housing units within new developments for affordable housing. Inclusionary requirements can be imposed as mandatory conditions on new development, typically as a percentage of the total units in the project, or as a voluntary program, generally in exchange for some project benefit. Inclusionary units may be provided onsite or off-site, dependent on the preference of the city. Most jurisdictions further provide the ability for developers to pay an in-lieu fee, for which there are numerous formulas used to establish a fee and differing methods of implementation. Some general information on affordable housing is provided below, followed by a summary of past inclusionary housing requirements and options for discussion.

Affordable Housing. Affordable housing units cover several levels, or categories, depending on the income levels of those participating in the program. The levels of affordability are shown in the table below, as well as current (2021) annual median income for a three-person household in San Diego County for each category. Income levels are dependent upon the number of people living in the household. Vista’s regional housing share, known as the “Regional Housing Needs Assessment,” or “RHNA” for the current Housing Element cycle (2021-2029) is also included in the table for each category.

AGENDA
REPORT

CITY COUNCIL

COMMUNITY DEVELOPMENT COMMISSION

SUCCESSOR AGENCY

BUENA SANITATION DISTRICT

JOINT POWERS FINANCING AUTHORITY
04/19/2022 D1 Page 1 of 17
Discussed an inclusionary housing policy and provide direction to staff.

Vote: 3-2 (Ritter and Franklin opposed)

MEETING DATE: April 19, 2022 PAGE 2
SUBJECT: INCLUSIONARY HOUSING
Percentage of Qualifying Annual
Type Level Annual Median Income in 2021 (for Share Income 3-person household) Sharee (RHNA)
Extremely Low 30 percent or less $32,750 238 Affordable Very Low 31-50 percent $54,550 277 Housing Low 51-80 percent $65,480 321
Moderate 81-120 percent $87,300 369
Market Rate Above Moderate Over 120 percent N/A 1,356 Housing
TOTAL 2,561
The 2021 San Diego County area median income (AMI) is $95,100. The San Diego Housing Commission publishes annual income and rent calculations for the region that include the affordable housing categories and eligible income levels based on family size, attached as Exhibit 1.

Under State law, the City is responsible for adopting a Housing Element under the General Plan that defines how the agency plans to accommodate their regional share of affordable housing units and the policies and programs in place to accommodate and incentivize their development. If the City does not meet these targets in terms of producing actual affordable units, it could affect eligibility for future grant funding, but there is currently no penalty for not producing the number of affordable housing units assigned in the RHNA process. Instead, the agency is responsible for providing an adequate amount of multi-family zoning at the appropriate densities needed to accommodate the number of affordable units allocated in the RHNA. The City met this requirement in 2021 with the latest Housing Element update.

Inclusionary Housing in Vista. In 1985, the City established a mandatory inclusionary housing program that reserved six percent of multi-family residential projects (of four units or more) as affordable housing units (defined as 80 percent of the AMI within the County). The Multi-Residential (R-M) Zone was initially identified, and later the Mixed Use (M-U) Zone was added as the City's multi-family zones within which inclusionary housing requirements applied. The City's current zoning map is included as Exhibit 4.

In 2006, the City Council adopted City Council Policy 300-13 (Exhibit 2), which provided detailed information for implementing the City's inclusionary housing requirements. The policy required that inclusionary units be provided on-site and permitted the payment of an in-lieu fee for partial units only. The in-lieu fee was established via a 2006 fee study prepared by Keyser Marston Associates (KMA). Based on the KMA fee study, the cost to develop a for-rent residential was $222,400 per unit and the cost to develop a for-sale residential unit was $338,000 per unit.

In 2009, based on a court decision, inclusionary housing requirements could no longer be applied to rental housing, which included apartment developments. In 2015, the City Council conducted a workshop and based on discussion the inclusionary housing policy was repealed. During the time period the City's inclusionary housing requirements were in effect, the City recorded the development of 22 for-sale units and 19 rental units and collected $1,645,551.61 in in-lieu fees.

In 2017, Assembly Bill (AB) 1505 was enacted, which overturned the 2009 court case and permits any city or county to adopt inclusionary housing requirements as a condition of development of rental units. The City has not reviewed inclusionary housing since the adoption of AB 1505. 04/19/2022 D 1 Page 2 of 17

MEETING DATE: April 19, 2022 PAGE 3
SUBJECT: INCLUSIONARY HOUSING
Comparison of Other Cities. Staff reviewed the inclusionary housing programs currently in place in the San Diego region. A summary of inclusionary housing programs in the region as of January 2022 is provided in Exhibit 3. 10 of the 19 jurisdictions that have inclusionary housing programs generally require between 10 to 15 percent of the units as affordable, with some requiring up to 20 percent.

In-Lieu Fee Options. Most jurisdictions in the region with inclusionary housing programs offer the option of an in-lieu fee, which can apply in place of an onsite affordable unit or for a proportionate unit within the project. Starting in 2006, Vista's prior program established an in-lieu fee as the actual cost of developing an affordable unit, which acted as an incentive to provide on-site units based on the high cost of the in-lieu fee.

Some jurisdictions have chosen lower in-lieu fees to cover the gap in financing for an affordable unit versus a market rate unit, or for the purpose of building a fund to help develop off-site affordable housing projects.

The establishment of an in-lieu fee can be accomplished using various methodologies and applicability, dependent upon the jurisdiction's desire to accommodate on-site or off-site affordable units. A comparison of affordable housing fee programs for jurisdictions in the San Diego region is included in Exhibit 3.

Geographic Areas for Discussion. As discussed earlier in the report, the past policy utilized zoning districts, specifically the R-M and M-U zones, as areas to apply inclusionary housing requirements. If zones are to be considered, the City Council may also want to discuss Transit Oriented Districts (TODs), which are generally defined as areas within one-half mile radius from a transit center. A map of the TOD areas is included as Exhibit 5.

FISCAL IMPACT: There is no direct fiscal impact associated with this discussion. Any future fiscal impact is dependent upon the City Council's direction provided to staff during the discussion.

EXHIBITS:

1. Income Categories for Affordable Housing in San Diego County (2021)

2. Former City Council Policy 300-13

3. Comparison of Inclusionary Housing Programs in the San Diego Region

4. Vista Zoning Map

5. Vista Transit Oriented Development Areas

6. List of prior actions
04/19/2022 D 1 Page 3 of 17

SAN DIEGO HOUSING COMMISSION INCOME AND RENT CALCULATIONS U.S.Department of Housing and Urban Development 2021 SAN DIEGO MEDIAN INCOME: $95,100 Note: The table contains income limits for 2021 extremely low,very low and low income,as adjusted for family size and other factors adopted and amended from time to time by the U.S.Department of Housing and Urban Development(HUD). HUD adjusted San Diego Very Low Income limits for a"high housing cost area"factor.

Extremely Low Income
30% AMI 35%AMI 40% AMI
(Adjusted by HUD) (Adjusted by HUD) (Adjusted by HUD) Family ANNUAL GROSS ANNUAL GROSS ANNUAL GROSS ; Size Unit Size INCOME' RENT' TCAC*3 INCOME' RENT' TCAC* INCOME' RENT' TCAC* ONE STUDIO $25,450 $636 $636 $29,700 $743 $742 $33,950 $849 $849 Two 1-13R $29,100 $728 $682 $33,950 $849 $795 $38,800 $970 $909 THREE 2-BR $32,750 $819 $818 $38,200 $955 $954 $43,650 $1,091 $1,091 FOUR 3-13R $36,350 $909 $945 $42,400 $1,060 $1,102 $48,500 $1,213 $1,260 FIVE 4-BR $39,300 $983 $1,054 $45,800 $1,145 $1,230 $52,400 $1,310 $1,404 six 5-13R $42,200 $1,055 $1,163 $49,200 $1,230 $1,357 $56,300 $1,408 $1,551 SEVEN 6-13R $45,100 $1,128 $52,600 $1,315 $60,150 $1,504 EIGHT $48,000 $56,000 $64,050
Very Low Income
50% AMI 60% AMI 65% AMI
(Adjusted by HUD) (Adjusted by HUD) (Adjusted by HUD) Family ANNUAL GROSS TCAC*3 "Low ANNUAL GROSS TCAC*3 ANNUAL GROSS "High Size Unit Size INCOME' RENT' HOME"' INCOME' RENT' INCOME' RENT' HOME ONE STUDIO $42,450 $1,061 $1,061 $1,061 $50,940 $1,274 $1,273 $55,150 $1,379 $1,360 TWO 1-BR $48,500 $1,213 $1,136 $1,136 $58,200 $1,455 $1,364 $63,050 $1,576 $1,458 THREE 2-13R $54,550 $1,364 $1,363 $1,363 $65,460 $1,637 $1,636 $70,900 $1,773 $1,752 FOUR 3-BR $60,600 $1,515 $1,575 $1,575 $72,720 $1,818 $1,890 $78,800 $1,970 $2,015 FIVE 4-13R $65,450 $1,636 $1,757 $1,757 $78,540 $1,964 $2,109 $85,100 $2,128 $2,229 six 5-BR $70,300 $1,758 $1,939 $1,939 $84,360 $2,109 $2,327 $91,400 $2,285 $2,441 SEVEN 6-13R $75,150 $1,879 $2,121 $90,180 $2,255 $97,700 $2,443 $2,652 EIGHT $80,000 $96,000 $104,000
Low Income
70% AMI 80% AMI 100% 110% AMI 120%
Family Ad usted b HUD (Adjusted b HUD Area Median Income (No No HUD adjustment) (Adjusted b HUD ( y ) ( y ) HUD adjustment) ( ) ( y ) Size Unit Size

ANNUAL GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL GROSS ANNUAL GROSS

INCOME' RENT' INCOME' RENT' INCOME' RENT' INCOME' RENT' INCOME' RENT' ONE STUDIO $59,400 $1,485 $67,900 $1,698 $66,550 $1,664 $73,200 $1,830 $79,850 $1,996 TWO 1-BR $67,900 $1,698 $77,600 $1,940 $76,100 $1,903 $83,700 $2,093 $91,300 $2,283 THREE 2-13R $76,350 $1,909 $87,300 $2,183 $85,600 $2,140 $94,150 $2,354 $102,700 $2,568 FOUR 3-BR $84,850 $2,121 $97,000 $2,425 $95,100 $2,378 $104,600 $2,615 $114,100 $2,853 FIVE 4-13R $91,650 $2,291 $104,800 $2,620 $102,700 $2,568 $112,950 $2,824 $123,250 $3,081 Six 5-BR $98,450 $2,461 $112,550 $2,814 $110,300 $2,758 $121,350 $3,034 $132,350 $3,309 SEVEN 6-13R $105,200 $2,630 $120,300 $3,008 $117,900 $2,948 $129,700 $3,243 $141,500 $3,538 EIGHT $112,000 $128,050 $125,550 $138,050 $150,600 *TCAC=Tax Credit Allocation Committee

1. Annual Income=Gross annual income adjusted by family size for Area Median Income(AMI)level. May contain additional adjustments as determined annually by HUD.

2. Gross rent minus utility allowance=maximum cash rent. Seethe"San Diego Housing Commission Utility Allowance Schedule"to calculate the utility allowance based on the project's actual utility mix.

3. For projects with multiple funding sources,use the lowest rents applicable and/or apply HUDs MTSP"Hold Harmless"policy. "Low HOME"and"High HOME"rents effective June 1,2021
Note:Due to the Housing and Economic Recovery Act of 2008 the data presented in this chart may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits(LIHTC)or section 142 tax exempt private equity bonds(MTSP).If you believe your affordable housing project is affected by this change and have questions regarding Rent&Income limits,please contact Irma Betancourt at [email protected].

This general income and rental rate information is derived from the U.S.Department of Housing and Urban Development very low income figures effective April 1,2021. HOME Rents effective June 1,2021.

Revised 05/06/2021:i b
EXHIBIT 1
04/19/2022 D1 Page 4 of 17

Vista City Council Policy
300-13 INCLUS/ONARY HOUSING

PURPOSE
To clarify and restate the City's processes and procedures for the implementation of its Inclusionary Housing Ordinance.

POLICY
Pursuant to the Section 18.34.120 of the Vista Development Code ("Inclusionary Housing Ordinance"), "any application for a Site Development Plan for residential units, either apartment or condominium" within the R-M (multi-family) zoning classification "shall include reservation of six percent of the units being built to be made eligible for and available to the City of Vista or its housing authority for lower income households qualified for assistance." The Inclusionary Housing Ordinance shall be implemented by recording a regulatory agreement against the real property, with the terms set forth below, prior to the issuance of a grading permit for the development.

1. Six percent of the total units shall be reserved for sale/rental to the qualified lower income households (the "Inclusionary" units).

2. The units shall be provided on-site.

3. The location of the inclusionary units shall be determined by the Planning Division of the City of Vista in consultation with the developer, as well as the Redevelopment and Housing Department of the City of Vista, if the development is located in the boundaries of the Vista Redevelopment Project Area. The units shall be dispersed evenly throughout the project and shall be representative of the overall units within the project.

4. Developers shall have the option of paying an in-lieu fee to satisfy any partial unit requirements. For example, if a project had a requirement to provide 2.40 inclusionary units, the developer would be required to build two inclusionary units and could pay the in-lieu fee on the .40 partial unit.

5. The in-lieu fees required under this policy shall be paid prior to issuance of a building permit, or, at the request of the applicant, deferred until all work required for final inspection has been completed and all department approvals required for final inspection have been obtained by the applicant. If the applicant chooses to defer the payment of fees to prior to the request for final inspection, then the amount of the fees shall be based on the fees in effect at the time of the request for final inspection. In the event that the City fails to collect any or all fees prior to final inspection, such fees shall remain the obligation of the developer and/or property owner.
300-13 (1)
04/19/2022 EXHIBIT 2 D1 Page 5 of 17

Vista City Council Policy

6. If the developer opts not to pay said fee, the partial unit shall be rounded up and the developer will be required to provide the unit.

7. The amount of the fee shall be as described in the adopted City of Vista fee schedule, as amended from time to time.

8. Consistent with the requirements and standards of Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.) and the associate regulations of the California Department of Housing and Community Development (25 CCR Sections 6900 et seq.): (a) the inclusionary units shall be restricted by the terms of the regulatory agreement for a period of not less than 45 years in the case of for-sale units and 55 years in the case of rental units; and (b) the inclusionary units shall only be sold or rented to qualified lower income households at a price to produce an affordable housing cost in the case of for-sale units or an affordable rent in the case of rental units.

The Inclusionary Housing Ordinance shall not be applied to detached single family homes or duplexes because of the ordinance, by its terms, applies only to apartments and condominiums.

HISTORY
Adopted March 28, 2006.

Amended December 8, 2009, City Council Resolution No. 2009-197.

Amended April 23, 2013, City Council Resolution No. 2013-53. 300-13 (2)
04/19/2022 D1 Page 6 of 17

EXHIBIT 3—AFFORDABLE HOUSING PROGRAM COMPARISON TABLE FORTH E SAN DIEGO REGION Inclusionary Production Requirement Affordable Housing Fee City For Project Size Percentage (%)of Affordable Amount per Rental Sale Threshold Units Required Fee Option Project Size Threshold Fee Type Market Rate Unit
Carlsbad Yes Yes 7 units 15%at Low Income Yes Available to projects In-Lieu up to 6 units Fee $4,515/unit Chula 10% (5% Low Income and 5% Available to projects In-Lieu Varies by Yes Yes 50 units Yes of all sizes
Vista' Moderate Income) < 50 units exempt Fee project Rental Available to projects In-Lieu
Yes $7,000/unit
Coronado Yes Yes 2 units ---------20%at Low Income of all sizes Fee For Sale Yes Available to projects In-Lieu $7,000/unit 20%at Moderate Income of all sizes Fee
2-5 units 1 rental unit at Low Income Yes Available to projects In-Lieu up to 5 unit Fee $31.02/SF
---------------------- ------------------------------------------------- -------- ---------u p----- ----- s--------------------------------------------------------- 6-9 units 1 rental unit at Low Income None None None None ---------------------- ------------------------------------------------- -------------------- -------------------------------------- ----------------- ------------------------ 20% rental units at Low
10-19 units Income (at least 1 unit at None None None None Very Low Income)
---------------------- ------------------------------------------------- -------- - -------------------------------------- ----------------- ------------------------ Del Mar Yes Yes 20% rental units at Low
20-29 units Income (at least 1 unit at None None None None Very Low Income and 1 unit
at Extremely Low Income)
---------------------- ------------------------------------------------- -------------------- -------------------------------------- ----------------- ------------------------ 20% rental units at Low
30+ units Income (at least 2 units at None None None None Very Low Income and 2 units
at Extremely Low Income)
El Cajon No Requirement"
10%at Very Low Income or Available to projects In-Lieu Encinitas Yes Yes 7 units 15%at Low Income Fee Yes up to 6 units and $20/SF fractional units
Escondido No Requirement
Imperial
No Requirement
Beach
EXHIBIT 3
04/19/2022 D 1 Page 7 of 17

EXHIBIT 3—AFFORDABLE HOUSING PROGRAM COMPARISON TABLE FORTH E SAN DIEGO REGION Inclusionary Production Requirement Affordable Housing Fee City For Project Size Percentage (%)of Affordable Amount per Rental Sale Threshold Units Required Fee Option Project Size Threshold Fee Type Market Rate Unit
La Mesa No Requirement
Lemon
No Requirement
Grove
National
City No Requirement
Rental Yes Available to projects In-Lieu $g g2/SF 10%at Low Income of all sizes Fee
Oceanside Yes Yes 3 units For Sale
10%at Low or Moderate Yes Available projects In-Lieu $$ g2/SF Income of alll s sizes Fee
Rental Yes Available to projects In-Lieu $500/unitj'j 15%at Very Low Income of all sizes Fee
------------------------------------------------- -------------------- -------------------------------------- ----------------- ------------------------ Poway Yes Yes 1 unit For Sale
15%at Low Income or 20%at Yes Available s izes Fee projects In-Lieu of alll s $500/unit
Moderate Income
Available to projects
Rental In-Lieu
San Diego 10% at 60%AMI Yes of all sizes, <10 units Fee $25/SF Outside Yes Yes 10 units _____ ____exempt -------- -------- --------- ------------------ ------------------ - - - FUA'" For Sale Available to projects In-Lieu 10% at 100%AMI or Yes of all sizes, <10 units Fee $25/SF 15% at 120%AMI exempt
San Diego
Inside Yes Yes 2 units 20% at 60%AMI or less None None None None FUA
San Diego
No Requirement
County
Pay in-lieu fee unless
San No Yes 1 unit Yes producing inclusionary units Available to projects In Lieu Marcos of 15%at Target Households of all sizes Fee $9,300/unit (determined by City)
04/19/2022 D 1 Page 8 of 17

Poway's base fee varies by zoning,with a maximum total of$500 per unit for all projects.

City of San Diego,applies to development located outside of the Future Urbanizing Area (FUA). Effective 7/1/2020,fee to be phased in over 5-year period.

San Diego County is currently conducting an Inclusionary Housing Study. 04/19/2022 D 1 Page 9 of 17

City of Vista Zoning Map e o I I I I Mile Q City Limits C-2(Commercial) M-U(Mixed Use) R-1-B(Single-Family Residential) Sphere of influence C-3(Commercial) MHP(Mobile Home Park) R-M(Multi-Family Residential) Biological Preserves C-A(Civic Activity) 11L 0(Open Space) SPI(Specific Plan) A-1(Agricultural) E-1(Estates Residential) 0-P(Office Professional) C-1(Commercial) M-1(Light Manufacturing) R-1(Single-Family Residential) . I
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Open SO4/19/2022 D 1 Pa e 15 of 1

PRIOR CITY COUNCIL ACTIONS
EXHIBIT 6
On February 3, 2015, conducted a workshop to discuss inclusionary housing policies and directed staff to evaluate the impacts of eliminating the City's inclusionary housing policies (Vote: 4-1, Campbell abstained).

On February 4, 2014, held a workshop to discuss inclusionary housing policies and directed staff to further evaluate an in-lieu fee study for inclusionary housing and the allowance of offsite inclusionary housing units (Vote: 4-1, Campbell abstained).

On April 23, 2013, adopted City Council Resolution No. 2013- 57, adopting the 2013-2020 Housing Element of the General Plan (Vote: 5-0).

On April 23, 2013, adopted City Council Resolution No. 2013-53, amending City Council Policy 300-13 related to the deferral of in-lieu housing fees, among other actions (Vote: 3-2, Cowles and Campbell opposed).

On December 8, 2009, adopted City Council Resolution No. 2009-197, amending several City Council policies, including Policy 300-13 related to inclusionary housing (Vote: 5-0). The amendment provides clarification that Redevelopment Agency is involved in the development of any new inclusionary housing units within the Redevelopment Area.

On December 12, 2006, adopted City Council Ordinance No. 2006-22, amending Chapter 18.31 of the Development Code relating to second units (Vote: 5-0). The adopted second unit development standards require that second units be restricted as low-income households for a ten-year period.

On March 28, 2006, adopted City Council Policy No. 300-13, clarifying and restating the City's inclusionary housing implementation procedures and providing an option for developers to pay an in-lieu fee on partial units; and adopted City Council Resolution No. 2006- 73, approving an amendment to the inclusionary housing in- lieu fee (Vote: 3- 2, Gronke and Vance opposed).

On November 16, 2004, the City Council held a workshop on affordable housing policy and discussed inclusionary housing requirements (No action was taken).

On March 4, 2003, the City Council held a workshop on affordable housing policy and discussed inclusionary housing requirements (No action was taken).

On June 2, 1992, the City Council held a workshop on inclusionary housing requirements.

Direction was provided to exempt single-family units from the inclusionary requirements, accept a fee in-lieu of lower income units for projects of four or fewer units, and either accept a fee or require the lower income units be provided on-site for projects of five or more units (Vote: 5-0).

On August 13, 1985, adopted City Council Resolution No. 85-192, amending Resolution 82-55 setting fees (Vote: 5-0). This action modified the formula for calculating in-lieu fees for low- income housing units.

On May 28, 1985, adopted City Council Ordinance No. 85-25, amending the zoning ordinance regarding provision of low-income housing (Vote: 4- 1, Flick opposed).

EXHIBIT 6
04/19/2022 D 1 Page 16 of 17

On June 16, 1983, adopted City Council Resolution No. 83-80, amending Resolution 82-55, setting forth fees in lieu of dedication for low- or moderate-income families (Vote: 5- 0).

On April 12, 1982, adopted City Council Resolution No. 82-55, adopting certain fees pursuant to Ordinance 82-2 (Vote: 4- 0, McClellan absent).
04/19/2022 D 1 Page 17 of 17

From:Katie Melendez
To:Kathy Valdez
Cc:Patrick Johnson
Subject:Submission of public record
Date:Tuesday, April 19, 2022 9:39:33 AM
Attachments:Inclusionary housing agenda summary .pdf
Hello Kathy,
Yesterday I had a meeting with a community group and I provided them with a summary of the agenda. This is a reference that I thought would be beneficial to add to the public record and I will also be posting it on my social media.

Katie

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Vista City Council Workshop 4/19/2022
Inclusionary Housing
Agenda Summary
History
●In 1985 the City of Vista established an inclusionary housing program that required 6% of units developed to be aordable for households at 80% AMI.
●In 2006 the Vista City Council updated the policy to require the aordable units to be provided on site, with a fee option. ●In 2009 a court decision determined inclusionary housing policies could no longer be applied. ●In 2015 the Vista City Council voted to repeal the inclusionary housing requirements. ●In 2017 AB 1505 overturned the 2009 decision, allowing cities to again implement inclusionary housing requirements.

Context
●The City of Vista is required to designate potential locations of aordable housing due to the State of California’s Regional Housing Need Allocation (RHNA) process. This process requires the City to illustrate how we will accommodate the regional share of aordable housing. This process does not result in the production of aordable housing, but it is a state-mandated documentation process that reflects the minimum number of aordable housing units that the City of Vista intends to allocate for a range of income levels.
●In the San Diego Region 10 out of 19 jurisdictions have an inclusionary housing program, and many programs have dierences regarding the requirements for developers.
●An In-lieu Fee is a cost to the developer if they do not want to construct aordable units. Instead of building the aordable units in the project, the developer pays the city a structured fee. The amount of this fee can be any amount from a minimal fee to the true cost of building the unit. This is often considered a fee for the developer to build the units “o site,” however the fees may or may not be designated to the development of aordable units. ●All rental homes and/or for sale homes are eligible for inclusionary housing programs. The City of Vista included a consideration of geographic location on the agenda for this inclusionary housing discussion. These locations could be considered based on zoning and density, for example the multi-family residential R-M zone is a location where developers are allowed to build larger, multi-family apartment projects. Other locations to be considered are areas that are within a half-mile of a transit center.
●The number of aordable units required for a development under an inclusionary housing program may vary. The City of Vista’s previous program required 6% of the units be aordable for those that made 80% the area median income. A program could have considerations for dierent income levels or specific populations, such as veterans, those who make 30% area median income or less, or any other eligibility factors.

Purpose
●Inclusionary housing requirements or programs bring more aordable units to the housing market. ●Aordable housing is considered housing that someone can aord on 30% of their income, housing costs above that amount result in an experience of cost or rent burden.

Inclusionary Housing
Workshop
April 19, 2022

Inclusionary Housing is program requiring a
prescribed percentage of affordable housing
units within a private housing development
•Affordable Housing, Categories and AMI
•Vista’s prior inclusionary housing policy
•Comparison of cities in San Diego region
•Options for on-site and off-site, proportionate units, and in-lieu fee
Inclusionary Housing Workshop

Affordable Housing
Inclusionary Housing Workshop
Type Level Percentage of Annual
Median Income
Qualifying Annual Income
in 2021 (for 3-person
household)
Vista’s Regional
Share (RHNA)
Affordable Housing
Extremely Low 30% or less $32,750 238
Very Low 31-50%$54,550 277
Low 51-80%$65,480 321
Moderate 81-120%$87,300 369
Market Rate Housing Above Moderate Over 120%N/A 1,356
TOTAL 2,561

Vista’s Prior Policy
•Established in 1985, was eliminated in 2015
•Six percent of multi-family housing reserved as
affordable units –in the R-M and M-U zones
•CC Policy 300-13 established in 2006
•In-lieu fee for proportionate units
•Could not apply to rental projects from 2009-2017
Inclusionary Housing Workshop

San Diego Region Comparison
•Exhibit 3 in Agenda Report includes summary
•10 of 19 cities in the San Diego region currently have inclusionary housing programs
•Inclusionary requirements generally range from 10 to
15 percent, some go up to 20 percent
•Various methods of implementation
Inclusionary Housing Workshop

Other Options for Consideration
•Zones or geographic areas
•General Plan Amendments and Zone
Changes
•On-site units vs off-site allowance
•In-Lieu fee, proportionate or whole
units
Inclusionary Housing Workshop

Inclusionary Housing
Workshop
April 19, 2022

Vista City CouncilApril 19, 2022

Vista City Council
April 19, 2022