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HomeMy WebLinkAbout16 - PA 2005-062 - Affordable HousingCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 March 22, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: PLANNING DEPARTMENT Jaime Murillo, Assistant Planner (949) 644 -3209 imurilloc@- citv.newort- beach.ca.us SUBJECT: Initiation of Code Amendment No. 2005 -004 incorporating a new affordable housing chapter to Title 20 of the Municipal Code, establishing provisions for the implementation of the City's housing programs related to Inclusionary Zoning, Low- and Moderate - Income Housing within the Coastal Zone, and possible future amendments. (PA 2005 -062) APPLICANT NAME: City of Newport Beach ISSUE Should the City Council initiate an amendment to Title 20 of the Newport Beach Municipal Code incorporating a new "affordable housing" chapter related to the implementation of the City's housing programs? RECOMMENDATION Adopt Resolution No. initiating an amendment to Title 20 of the Municipal Tore r_ DISCUSSION Staff is proposing to amend Title 20 of the Newport Beach Municipal Code, Part IV (General Development Standards), by incorporating a new chapter to accommodate the implementation of the City's affordable housing programs, specifically related to inclusionary zoning regulations, low- and moderate - income housing within the coastal zone, and future amendments to implement density bonus regulations. The new chapter will be titled, "Chapter 20.68 (Affordable Housing Regulations) ". Affordable Housing Regulations March 22, 2005 Page 2 Inclusionary Zoning Regulations Housing Program 2.2.1 of the City's Housing Element requires that all new residential developments allocate a certain percentage of the units in a residential development project to remain affordable or pay an "in -lieu fee'. This program was originally adopted to assist the City in achieving units to fulfill the "fair share" requirement imposed by the Regional Housing Needs Assessment (RHNA) developed by the Southern California Association of Governments. The current "in -lieu" fee was established in the late 1990's and is no longer an accurate reflection of the current market conditions for the development of affordable housing. In an effort to provide an equitable "in -lieu" fee option to residential developers, the City has retained the services of a consultant, Economic and Planning Systems, Inc. (EPS), to analyze and provide recommendations on the fees a residential developer should have to pay "in- lieu" of providing affordable housing units. In concurrence with the development of an "in -lieu" fee, the City must adopt an inclusionary zoning ordinance to provide a legal basis for the application of an "in -lieu" fee and for the implementation of Housing Policy 2.2.1. The proposed Chapter 20.68 will provide the specific requirements necessary to properly implement the Housing Policy. Low- and Moderate - Income Housing within the Coastal Zone Currently, Chapter 20.86 of the Newport Beach Municipal Code implements Housing Program 2.2.3 and the provisions of State Government Code Section 65590 (Mello Act), related to the demolition, conversion and construction of low- and moderate - income dwelling units within the Coastal Zone. However, Chapter 20.86 currently falls under Part V (Special Use Regulations), of the Municipal Code. Staff believes that the provisions of this chapter should actually fall under Part IV (General Development Regulations), and incorporated into the new Chapter 20.68 (Affordable Housing Regulations). Future Density Bonus Regulations The new Chapter 20.68 will allow additional housing - related regulations to be incorporated in the future. A possible future addition to this chapter may be the incorporation of "Density Bonus" provisions. In accordance with State Housing Law, all cities and counties must adopt an ordinance that establishes procedures for the utilization of a density bonus incentive. Housing Program 3.1.2 of the Housing Element currently permits the City to grant a density bonus or other incentives if a residential developer agrees to construct housing for persons or families of low- and moderate- Affordable Housing Regulations March 22, 2005 Page 3 income, however an actual density bonus ordinance should be drafted to establish specific regulations. Staff anticipates completing a draft ordinance by July of this year. Environmental Review A request to initiate a Zoning Code Amendment is considered a feasibility or planning study by staff, which is statutorily exempt pursuant to Section 15262 of the Implementing Guidelines for the California Environmental Quality Act. Public Notice Notice is not required for a request to initiate a Zoning Code Amendment. Should the amendment be initiated, the amendment will require noticed public hearings at the Planning Commission and City Council. Prepared by: aime Murillo Assistant Planner Attachment: Resolution of intent. Submitted by: Sharon Z. Wo VIOL Assistant City anager F: USERS\PLN\Sh=d\PA's\PAs - 2005TA2005- 062\ Inilitalion\032205CCrpt_ini.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH INITIATING AMENDMENTS TO TITLE 20 OF THE NEWPORT BEACH MUNICPAL CODE RELATED TO THE INCORPORATION OF AN AFFORDABLE HOUSING CHAPTER ESTABLISHING PROVISIONS FOR THE IMPLEMENTATION OF THE CITY'S HOUSING PROGRAMS. (PA 2005 -062) WHEREAS, Housing Program 2.2.1 of the City's Housing Element is a statement of the City's inclusionary housing policy and requires the construction of affordable housing units (or the payment of an in -lieu fee) when the construction of new units is proposed; and WHEREAS, the City is in the process of updating and developing an equitable in- lieu fee option; and WHEREAS, the City must adopt an inclusionary zoning ordinance to provide a legal basis for the application of an in -lieu fee and for the implementation of Housing Program 2.2.1; and WHEREAS, an amendment to Title 20 of the Municipal Code should be considered for the incorporation of regulations related to housing element implementation. A new chapter entitled "20.68 Affordable Housing Regulations ", should be considered to establish provisions for the implementation of the City's housing programs; and WHEREAS, the inclusionary zoning ordinance should be incorporated into the new Chapter 20.68; and WHEREAS, Chapter 20.86 of the Municipal Code currently implements Housing Program 2.2.3 and the provisions of the State Government Code Section 65590 related to the demolition, conversion and construction of low- and moderate - income dwelling units within the Coastal Zone; and WHEREAS, Chapter 20.86 should be relocated and incorporated into the new Affordable Housing Regulations chapter for efficient administration; and WHEREAS, Title 20 requires that any proposed amendment to the zoning regulations be initiated by the adoption of a resolution of intention by the Planning Commission or City Council. City of Newport Beach City Council Resolution No. Paae 2 of 2 NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Newport Beach hereby initiates a Code Amendment to Title 20 of the Municipal Code for the purpose of implementing the Housing Element of the General Plan and establishing provisions for the implementation of the City's housing programs. This resolution was adopted at a regular meeting of the City Council of the City of Newport Beach held on March 22, 2005, by the following vote, to wit: AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT COUNCIL MEMBE MAYOR ATTEST: Exhibit 2 h