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HomeMy WebLinkAbout(1982, 08/09) - P-1 - AdoptedP -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 1 BACKGROUND The City of Newport Beach has the responsibility for the administra- tion of provisions of State law relative to the demolition and con- version of existing low and moderate income residential units within the Coastal Zone. (Chapter 1007,.Statutes of 1981, Government Code Section 65900 et seq.) This Council Policy establishes the Administrative Guidelines and Implementation procedures to be used by the City of Newport Beach in. administering the provisions of the State law referenced above. The City Council of the City of Newport Beach has, by virtue of the adoption of this policy, determined that it is not feasible to require replacement housing units for low and moderate income persons for pro- jects involving the conversion or demolition of one or more structures located upon any parcel within the City of Newport Beach containing two or fewer residential units. The City Council finds that replacement housing for projects involving two or fewer units is not feasible due to the high cost of land within the City of Newport Beach, the limited number of substandard housing units that can be rehabilitated and the negligible impact that such conversions or demolitions have on the low and moderate income housing opportunities within the City of Newport Beach. I GENERAL RULES 1. Exempt Projects This policy shall not apply to the following projects: a. Projects not located within the Coastal Zone as estab- lished pursuant to the Coastal Act of 1976 and as sub- sequently amended; b• The conversion or demolition of a residential structure on any single parcel which contains two or fewer resi- dential units; c. The conversion or demolition of a residential structure for purposes of a non - residential use which is either coastally dependent" or "coastally related" as those terms are defined in the Coastal Act of 1976, as amended, and which non - residential use is consistent with the app - licable local Coastal Plan designation; P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 2 d. Demolition of any structure which has been declared to be, or constitutes a public nuisance, pursuant to the provisions of Division 13 of the Health & Safety Code of the State of California or any Ordinance of the City of Newport Beach enacted pursuant thereto. II DEFINITIONS For the purposes of this policy, the following words and terms shall be defined as follows: 1. "Conversion" shall mean any change in the form of ownership of any residential structure, including, but not limited to, a change in ownership to a condominium, stock cooperative, cooperative, community apartment, timeshare or similar form of ownership, such that the right to occupy the structure • is not based upon a rental or lease agreement, written or oral, rather, based upon the purchase of the right to occupy some or all of the structure, for a portion of some or all of the structure, during a portion or all of the year, or for a period of years or in perpetuity, or any change from a resi- dential use to a non - residential use; 2. "Demolition" shall mean the destruction or tearing down of a residential structure which has been found feasible for reten- tion, pursuant to Section 30612 of the Public Resources Code; 3. "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technical factors; 4. "Replacement Unit" shall mean a residential structure suitable, in terms of size and other characteristics, for occupancy by the same number of low or moderate income persons that occupied the converted or demolished unit. 5. "Low Income" shall be defined as set forth in §50093 of the Government Code of the State of California; 6. "Moderate Income" shall be defined as set forth in §50093 of the Government Code of the State of California; 0 P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 3 7. "Family" shall be defined as persons related by blood, mar- riage, formal adoption or those persons living together by virtue of economic, social and psychological bonds; 8. "New Housing Development" shall be defined to mean the con- struction, on previously occupied by two or less residential units, or land previously occupied by two or more mobile homes, of three or more residential units. 9. "Planning Director" shall include the Planning Director of the City of Newport Beach and all employees of the Planning Depart- ment to whom the Planning Department has delegated, orally or in writing, the performance of duties required by these Guide- lines. III ADMINISTRATIVE PROCEDURES FOR CONVERSIONS.AND DEMOLITIONS The procedures for processing requests for the approval of the con- version or demolition of residential structures located within the Coastal Zone shall be as follows: I. Application for the approval of the conversion or demolition of residential structures located within the Coastal Zone shall be made to the Planning Department on a form provided by that department. The Applicant shall provide the following information: a. The address of the property for which approval is sought; b. A legal description of the property for which approval is sought; c. The number of residential units then in existence on the property; d. The maximum number of residential units on the property within the last 12 months; e. The number of residential units to be constructed, or, if no residential units are to be constructed, the nature of the use to which the property will be put upon conversion or demolition; P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 4 f. The name, business address, residence address,resi- dence phone number, business phone number and such other information that would assist the City of Newport Beach in obtaining financial information, of each person then residing, on a permanent basis or for more than 45 consecutive days, in structures located on the property for which approval is sought; g. The name, business address, resident's address, resi- dent's phone number, business phone number, and such other information of Applicant that would assist the City of Newport Beach in obtaining financial informa- tion as to each person who has resided, on a permanent basis or for more than 45 consecutive days in any of the structures located on the property within the 12 months immediately preceding the date on which the Application is filed; h. The court name, court address, case number, case name, . as well as all relative information, with respect to any legal action filed by, or on behalf of, the Applicant, and against any current tenant or any person who, within the 12 months immediately preceding the date on which the Application is filed, has resided, on a permanent basis or for more than 45 consecutive days, within any of the structures located on the property for which approval is sought within the past 12 months; i. Such other information as the Planning Director may con- sider necessary to the implementation of these Guidelines or the provision of State Law relative to the conversion or demolition of residential structures located within the coastal zone, which are occupied by low and moderate income persons. J. At the time the Application is filed, the Applicant shall pay a fee of $750.00, or $250.00 per each residential unit to be converted or demolished, whichever is greater, said fee to defray the administrative costs and expenses incurred by the City of Newport Beach in administering the provisions of these Guidelines and section 65900 et seq of the Government Code. The Planning Commission may approve a reduction in fees consistent with processing City cost for project of 40 units or more; 0 P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 5 k. The project proposed by Applicant shall not be pro- cessed by the City of Newport Beach until such time as all information required by these Guidelines has been provided to the Planning Director. 1. Upon receipt of the Application and appropriate fees, the Planning Director shall cause an investigation to be commenced to determine the following: i) Whether the project is exempt under the provisions of these administrative Guide- lines; ii) Whether any person of low or moderate income is presently occupying any residential unit located on the property for which approval is sought; iii) Whether any person of low or moderate income has, within the 12 months immediately preceding the date on which the Application is filed, occupied any of the residential units on the property for which approval is sought; iv) The circumstances pursuant to which the tenancy of any person of low or moderate income was terminated during the 12 months immediately preceding the date on which the application is filed; v) With respect to property containing more than one structure, and more than three but less than 10 dwelling units, whether, given the cir- cumstances of the project, a requirement for re- placement of units occupied by low or moderate income persons is feasible; vi) In the event of a conversion or demolition of any residential structure for purposes of a non- residential use which is not coastally dependent, as defined in Section 30101 of the Public Resour- ces Code, whether a residential use at that lo- cation is no longer feasible. 2. The Planning Director, after conducting the investigation set forth above, shall notify Applicant of the determination and Applicant's rights to appeal, by certified mail. P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION • OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 6 3. Upon final determination as to the number of replace- ment units to be provided by Applicant, Applicant shall provide the Planning Director, on a form to be prepared by the Planning Depart- ment, with the following information: a. Whether replacement units shall be made available through new construction, conversion of non- residen- tial structures to residential use, substantial re- habilitation of substandard dwelling units (as defined in §17910 et seq of the Health and Safety Code) through the provision of existing units not currently affordable by low or moderate income persons, by giving existing low and moderate income tenants the right to lease units on -site at affordable rates, or by any combination of the above; b. The location of the replacement units and, if those units are not located within the Coastal Zone, all of the facts and circumstances upon which the Applicant relies to support his contention that it is not feasible to provide replacement units within the Coastal Zone; C. Information relative to the size, configuration and manner of construction of the units, together with all other information as to the amenities found within the replacement units. 4. The Planning Director shall conduct an investigation to determine the suitability of the replacement units and shall approve the replacement units if: a. The replacement units provide-housing opportunities similar to those provided by the dwelling units con- verted or that are demolished; b. The number of replacement units is equal to the number of dwelling units proposed for conversion or demolition which are occupied by persons or families of low or moderate income, or were occupied by persons or families of low or moderate income who were evicted within the past 12 months; 5. Upon a final determination as to the number and location of replacement units, and prior to, or concurrently with, giving the approval • to Applicant, to convert or demolish the units, Applicant and the City of Newport Beach shall enter into an Agreement, prepared by and approved as to form by the City Attorney, which shall include the following provisions: 0 P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 7 a. A description of the project, including its location and the number of units to be developed, if the property is to be developed for residential purposes; b. A description of the replacement units to be provided, specifying their size, number and location; c. A commitment that the replacement units be affordable to persons of low or moderate income; d. That the replacement units shall be provided, and avail- able for occupancy, within three years from the date upon which the approval for the conversion or demolition was granted; e. A commitment that the Agreement be recorded; f. The provision of a surety bond, or other instrument guaranteeing the provision of replacement units in an amount to be determined by the Planning Director, but not less than two times the cost of providing the replacement units. IV ADMINISTRATIVE PROCEDURES FOR PROCESSING NEW DEVELOPMENTS WITHIN THE COASTAL ZONE In the event that a new housing development is proposed within the Coastal Zone, the procedures set forth shall apply: 1. The property owner and /or developer shall file an application for a Development Permit with the Planning Department of the City of Newport Beach on forms provided by the Planning Department, An Application for Development Permit shall be accompanied by a fee of $750.00, or $250.00 per each residential unit to be constructed, whichever is greater, said fee to defray the administrative costs and expenses incurred by the City of Newport Beach in administering the provisions of these Guidelines and State law. The Planning Commission may approve a reduction in the fees for projects in- volving 40 or more residential units; P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 8 2. The Planning Director shall determine whether the proposed project is exempt from these Guidelines as provided above; 3. If the project is determined not to be exempt from the pro- visions of these Guidelines, the Planning Director shall advise the Appli- cant of the requirements of these Guidelines and, in the event that the proposed project is one which requires an approval by the Planning Commission, the project, including the Development Permit, shall be referred to the Planning Commission of the City of Newport Beach for review and decision; 4. The Planning Director, or the Planning Commission, in the case of a project requiring Commission approval shall determine the feas- ibility of requiring the inclusion of dwelling units affordable by persons or families of low or moderate income within the project and on the project site. If it is determined not to be feasible to provide low and moderate income housing on site, the Planning Director, or the Planning Commission, where appropriate, shall determine whether it is feasible to provide such housing at another location within the City of Newport Beach, and within the Coastal Zone, or within three miles of the Coastal Zone boundary; • 5. In evaluating the feasibility of providing affordable units as a part of the new housing development, the Planning Commission, or Planning Director, shall consider the following factors: a. The cost of the proposed development, both with and without the provision of affordable units; b. The return on investment provided by the development, both with and without the provision of affordable units; c. The effect upon costs and return on investment of development incentives provided by the City, such as the modification of zoning and subdivision requirements, accelerated processing of required applications, the waiver of appropriate fees, and the offer of density bo- nuses; and d. The social, technical, environmental and related problems associated with the provision of affordable housing units. 6. When it is determined that provision of residential units, affordable by persons of low or moderate income, is feasible, the Planning Commission, or Planning Director shall make a determination as to the number of affordable units which shall be provided. The determination as.to the number of units to be provided shall, again, take into account the factors considered in the determination of feasibility, including, but not limited to, the cost of providing affordable units, the return on investment provided by the develop- ment and the extent to which the cost and return on investment have been affect- ed by development incentives granted by the City of Newport Beach, and the P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 9 provisions of the Housing Elements of the City of Newport Beach. 7. When a proposed new development is required to provide housing units affordable by persons or families of low or moderate income, the developer and property owner shall enter into an Agreement with the City of Newport Beach which shall include the following provisions: a. A description of the project, including its location and the number of units to be constructed if the property is to be developed for residential purposes; b. A statement of the number of units designated for per - sons.of low or moderate income; c. A commitment that the low and moderate income housing units shall be provided, and available for occupancy, within three years from the date upon which the pro- ject is approved; d. A commitment that the Agreement be recorded; e. The provision of a surety bond, or other instrument guaranteeing the provision of units in an amount to be determined by the Planning Director, but not less than two times the cost of providing the units. V APPEALS 1. Determinations of the Planning Director or Planning Commission pursuant to this policy and these Guidelines, shall be final 10 days after notice of the determination as deposited in the United States Post Office by certified mail, or personally served upon the Applicant, unless, within that period, Applicant files with the City Clerk of the City of Newport Beach, a statement addressed to the City Council of the City of Newport Beach, indicating Appli- cant's intention to appeal, and setting forth the facts and circum- stances regarding the action or determination that is the subject of the appeal. The City Clerk shall then notify the Applicant, in writing, of the time and place set for the hearing of the appeal. P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 10 The City Council may hear the appeal, or the City Council may delegate the responsibility for conducting the hearing to a hearing officer, who shall conduct the hearing, receive all relevant evidence, and who shall prepare and submit to the City Council, written findings and recommendations. The City Council shall, within 30 days from the date on which the hearing is held, or within 30 days from the date on which written findings and recommendations are received from the hearing officer, render its decision on the appeal. Adopted - August 9, 1982 is