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HomeMy WebLinkAbout(1985, 12/19) - P-1 - AmendedP -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION f OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE,. a' BACKGROUND r The City of Newport Beach (hereinafter "City ") "has the responsibility for the administration of provisions of,tate law relative to the demolition and conversion of existin&.4ow and moderate income residential units and construction of new aff ,6rdable housing within the Coastal Zone. (Chapter 1007, Statues off 1981, Government Code Section 65590 et.seq.) 1 This Council Policy establishes the Yministrative Guide- lines and Implementation procedures to be use by the City in adminis- tering the provisions of the State law refer ced above. The City Council of the City of wport Beach has, by virtue of the adoption of this policy, determine that it is not feasible to require replacement housing units for loV and moderate income persons or families for projects involving the &nversion or demolition of one or more structures located upon any pa el within the City containing two or fewer residential units. The y Council finds that replace- ment housing for projects involving tAo or fewer units is not feasible due to the high cost of land within the City, the limited number of substandard housing units that can be rehabilitated, the relatively small profits that flow from projects involving two or fewer residen- tial units, and the negligible impact that such conversions or demo- litions have on the low and moderate income housing opportunities within the City. The City Council intends, by adoption of these guidelines, to provide opportunities for affordable housing in the Coastal Zone, and these guidelines shall be interpreted in a manner which will maximize such housing opportunities. I GENERAL RULES 1. Exempt Projects This P/olicy shall not apply to the following projects: a. .,Projects not located within the Coastal Zone as established pursuant to the Coastal Act of 1976 and as subsequently amended; b// The conversion, demolition, or construction of a residential structure on any single parcel which contains two or fewer 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 2 C. The conversion or demolition of a residential structure for purposes of a non - residential use which is either "coastally dependent" or "coastal - ly related" as those terms are defined in the Coastal Act of 1976, as amended, and which non - residential use is consistent with the appli- cable local Coastal Plan designation; d. Demolition of any structure which has been de- clared 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 enacted pursuant there- to. 2. At the time an Application is filed, the Applicant shall pay a fee of $250.00 per each residential unit to be converted, demolished or constructed, whichever is greater, said fee is to defrav the administrative costs and expenses incurred by the City 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 for projects of 40 units or more. In addition, the Applicant shall pay all projected - related costs of any feasibility studies deemed to be necessary for the administration of these guidelines and /or Section 65900 et.seq. of the Government Code. II DRPTNTTTONS 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 during a portion or all of the year, or for a period of years, or in perpetuity, or 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 any change from a residential use to a non - residential use; 2. "Demolition" shall mean the destruction or tearing down of a residential structure which has been found feasi- ble for retention 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 demol- ished unit. 5. Persons and Families of Low or Moderate Income" shall be defined as set forth in 450093 of the California Health and Safety Code. 6. Affordable Units" shall be defined as those housing units affordable by persons and families of low or moderate income. Affordability shall be calculated by referring to the appropriate annual income level for Orange County found on the State of California Family Eligibility and Affordability Income Limits Table, promulgated in California Administrative Code, Title 25, Part I, Chapter 6.5, Subchapter 2, Section 6932 for one - bedroom units as if occupied by two persons; two - bedroom units as if occupied by four persons; three - bedroom units as if occupied by six persons; and four - bedroom units as if occupied by eight persons. The rent calculation shall then be made as follows: annual income from table) x .3 e 12 = maximum rent. 7. Family" shall be defined as any group of persons living as a single housekeeping unit within a dwelling unit as defined in section 20.87.140 of the Newport Beach Municipal Code. 8. New Housing Development" shall be defined to mean the construction, of three or more residential units on: 1) Vacant land; 2) Land occupied by existing residential units which may be converted or demolished without any requirement for replacement 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 4 9. "Planning Director" shall include the Planning Director of the City 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 Guidelines. 10. "Developer" shall mean the person or entity that, at the time of the issuance of any permit required or authorized by these Guidelines, is the beneficial owner of the property th$t is the subject of the permit. 11. "Tenants" shall mean persons and families who occupy a residential rental unit for a period greater than 45 consecutive days. 1 12. "Eviction" shall include legal or court actions and actions such as rent increases significantly above the current market rate, avoidance of state mandated maintenance, harassment and other such actions which result in a tenant vacating his living unit against his will. III ADMINISTRATIVE PROCEDURES FOR CONVERSWNS AND DEMOLITIONS 3 The procedures for processing requests for the approval of the conversion or demolition of residential structures located within the Coastal Zone shall be made by the Developer to the Planning Department on a form provide by that Department. The Developer shall provide the following infortion as necessary: a. The addless 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 number of residential structures on site; e. Description of the proposed new development; P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISiONgt' OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WIT IAN THE COASTAL ZONE - Page 5 f. If the structure is being demolishejas a public nuisance, a description of those f$ctors causing the existing residential unit to constitute a nuisance; i i g. The number of residential unit to be constructed proposed; h. If proposal is for a non- residential use, why the residential use is no longed' feasible on the site; i. The name, business addresg, residence address, number of bedrooms, resi nce telephone number, business telephone numbet, current monthly income, and such other information that would assist the City to verify financia& information of each tenant then residing, do a permanent basis or for more than 45 consecutive days, in structures located on the property for which approval is sought; j. The name, business address, resident's address, address from which evicted, number of bedrooms, monthly income at,time of eviction, resident's telephone number, business telephone number, and such other information that would assist the City to verify financial information as to each evicted tenant and the court name, court address, case number, case name, as well as all relevant information, With respect to any legal action filed by, or on behalf of, the Owner, the Developer or agent thereof, 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 fpr more than 45 consecutive days, within any of th4 structures located on the property for which the Application is filed; k. Low and moderate income status shall be determined by comparing the total income of the tenants to the income found on the State of California Family Eligibility and Affordability Income Limits Table, promulgated in California Administrative Code, Title 25, Part 1, Chapter 6.59 Subchapter 29 Section 69329 for Orange County at the moderate income level for the number of tenants. P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISIONS OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HQUSING WITHIN THE COASTAL ZONE - Page 6 1. Such other information as the Planning Director may consider necessary to the implementation of these Guidelines or the provisions of State Law relative to the conversion or demolition of residential structures located within the coastal zone, which are occupied;by low and moderate persons. M. Applications and permit' requests for proposed projects shall not be deemed filed with the City until such time as all information required by these Guidelines has been provided to the Planning Director. n. Upon receipt of the Application and appropriate fees, the Planning Director shall cause an inves- tigation to be commenced to determine the follow- ing: M Whether the project is exempt under the provisions of these Administrative Guidelines; 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 immedi- ately preceding the date on which the Application is filed, occupied and been evicted from, 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 circumstances of the project, a requirement for replacement of units occupied by low or moderate income persons is feasible; is 11 It 40 P -1 ADMINISTRATIVE GUIDELINES FOR THE IMPLEMENTATION OF THE PROVISI1 OF STATE LAW RELATIVE TO LOW AND MODERATE INCOME HOUSING WITHIN THE COASTAL ZONE - Page 7 vi) In the event of a conversion or demoli- tion of any residential structure for purposes of a non - residential use which is not coastally dependent, as defined in Section 30101 of the Public Resources Code, whether a residential use at that location is no longer feasible. 2. The Planning Director, after conducting the inves- tigation set forth above, shall notify Developer of the determination and Developer's rights to appeal, by certified mail. 3. Upon final determination as to the number of replace- ment units to be provided by Developer, Developer shall provide the Planning Director, on a form to be prepared by the Planning Department, of the following information: a. Whether replacement units shall be made available through new construction, conversion of non - residential structures to residential use, substantial rehabilitation of substandard dwelling units (as defined in 417910 et.seq. of the Health and Safety Code) through the provision of existing units not currently affordable by low or moderate income perlons, 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 Developer relies to support his or her contention that it is not feasible to provide repl4kement units within the Coastal Zone; C. Info;tmation relative to the size, configuration and'manner of construction of the units, and togkther with all other information as to the amgnities found within the replacement 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 4. The Planning Department 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 oppor- tunities similar to those provided by the dwelling units converted or that aze demolished; b. The number of replacement units is equal to the number of dwelling Unit$ proposed for conversion or demolition, which alk occupied by persons or families of low or mod rate income, or were occupied by persons o families of low or moderate income who were evictid within the past 12 months; 5. Upon a final determination as to the number and lo- cation of replacement units, and prior t¢ or concurrently with, giving the approval to Developer, to convert or,demolish the units, Developer and the City shall enter into an Agreem t, prepared by Developer and approved as to form by the City AttorneJ, which shall include the following provisions: i s a. A description of tke 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 ofhe replacement units to be provided, apecif ng their size, number and location; C. A commitment that the replacement units are affordable, and ill be made available to, persons or families of ow or moderate income; d. That the repement units shall be provided, and available for occupancy, within three years from the date upo which the approval for the conver- • sion or demolition was granted; e. A statement as to whether the affordable units are to be sold or rented; f. A provision that the Agreement be recorded against • the property containing the replacement 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 9 g. A provision that the Developer is respghsible for ensuring that the persons or families Who rent or purchase the units are properly qualified as persons or families of low or moderate income; h. A provision that a fair and equitAble process shall be used by the Developer to select the persons or families entitled to 'rent or purchase the units. The selection process shall, at a minimum, provide for the follgaing: i) That the Developer advertise the availability of the affordable units; 11) That the Developer allow a reasonable period of time for persons or families to apply for purchase of rental of the affordable unfits; iii) That the Developer diligently investigate the facts contained in the application submitted to ensure that the Developers,are in fact persons and /or families of low or moderate income; iv) That selection of the purchasers or renters shall be made through a random system such as a lottery. i. A provision that, in the event of the sale or rental of a unit to a person or family who does not qualify as low or moderate income, the Devel- oper shall, within 60 days, either replace the occupants with persons or families of low or moderate income or provide a replacement unit, similar in size and related characteristics to the one sold or rented to the person or family who does not qualify. J. A provision that the Developer enter into an agreement with the purchaser or renter of an affordable unit which agreement shall: i) Obligate the purchaser or renter at least once a year, to provide the Developer with income information; and 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 ii) Give the Developer the right, in the event of a material misrepresentation made by a person or family with respect to income, either invalidate the sale of the affordable unit or, in the event of a rental unit, the right to terminate the tenancy. iii) Require that a "for sale" unit be sold, within the period of time during which the unit is to remain affordable, only to persons of low or moderate income, whichever is appropriate; iv) Provide the agreement be recorded. k. A provision that Developer, and all succes- sors-in- interest, maintain the units as affordable for at least ten (10) years from the date on which the units are first available for occupancy, unless the developer can demonstrate to the City Council that a shorter period of affordability is, given the circumstances of the project, appropriate. Any agreement that provides for a period of affordability of less than ten (10) years shall be reviewed and approved by the City Council. 1. A provision that the City shall be entitled to recover reasonable attorney's fees and costs incurred in connection with enforcement of any provision of the agreement. M. A provision that the terms and conditions of the agreement shall be binding on the agents, employ- ees, heirs and assigns and successors -in- interest of the Developer. n. A provision requiring the Developer, and succes- sors-in- interest, to annually submit to the Planning Director a schedule of the rental rate for each affordable unit. The Developer shall also provide the Planning Director with the gross income of the occupant of the affordable unit. o. A provision that the City, in the event of a breach of the agreement by the Developer, is entitled to obtain an order of the Superior Court commanding the Developer to specifically perform in accordance with the agreement, as well as interim injunctive relief restraining further violations of the agreement. 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 11 IV ADMINISTRATIVE PROCEDTjRES FOR PROCESSING NEW DEVgOPMENTS WITHIN THE COASTAL ZONE In the event that a new hating development is proposed within the Coastal Zone, the procedures set forth shall apply; 1. The Planning Director shall determine whether the proposed project is exempt from these Guidelines as provided above; 2. If the project is determined not to be exempt from the provisions of these Guidelines, the Planning Director shall advise the Developer of the requirements of these Guidelines and, in the eventisthattheproposedprojectisonewhichrequiresanapprovalbythe Planning Commission, the project, including the Development Permit, shall be referred to the Planning Commission of the City for review and decision; 3. The Planning Director, or the Planning Commission in the case of a project requiring Commission approval, shall determine the feasibility 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, and within the Coastal Zone, or within three miles of the Coastal Zone boundary; 4. In evaluating the feasibility of providing affordable units as a part of a new housing development, and in determining the number of affordable units to be provided once a determination of feasibility has been made, the Planning Commission, or Planning Director, shall consider the following factors: a. The number of units proposed to be constructed; b. The number of affordable units and the affordability mix shall be determined consistent with the provisions of the Housing Element, but shall not exceed the moderate annual income level as stated in the definition of "affordable units" contained herein; 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 12 C. The provisions of the ordinances, resolutions and policies of the City which peptain to affordable housing; ; d. The extent to which the project proponent or Developer has requested density bonus¢s, the waiver of fees, the waiver of park credits, or imilar action on the part of the City as incentives provide affordable housing; f e. The social, technical, ec omic, environmental and other information related to project, the construction of affordable housing, an the mitigation measures necessary to minimize any adverse environmental impacts. 5. When a proposed new developme t is required to provide housing units affordable by persons or amilies of low or moderate income ( "Affordable Units "), the Develo er shall enter into an Agree- ment with the City which shall include he following provisions: 9 a. A description of the prqject, including its location and the number of units to be developed, if the property is to be devel ped for residential purposes; b. A description of the affordable units to be provided, specifying their size, umber and location; C. A commitment that the affordable units are and will be made available to, per ons or families of low or moderate income; , t d. That the affordable units shall be provided, and available for occupancy, within three years from the date upon which the approval for the conversion or demolition was granted; e. A statement as to whether the affordable units are to • be sold or rented; f. A provision that the Agreement be recorded against the property containing the affordable units; g. A provision that the Developer is responsible for • ensuring that the persons or families who rent or purchase the units are properly qualified as persons or families of low or moderate income; 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 13 h. A provision that a fair and equitable process shall be used by the Developer to select the persons or families entitled to rent or purchase the units. The selection process shall, at a minimum, provide for the following: i) That the Developer advertise the availability of the affordable units,; ii) That the Developer allow a reasonable period of time for persons of families to apply for purchase or rental of the affordable units; iii) That the Developer diligently investigate the facts contained in the application submitted to ensure that the Developers are in'fact persons and /or families of low or moderate income; iv) Selection of the purchasers or renters shall be made through'a random system such as a lottery. i. A provision that, in the event of the sale or rental of a unit to a person or family who does not qualify as low or moderate income, the Developer shall, within 60 days, either replace ,the occupants with persons or families of low or moderate income or provide a replacement unit, si,6iilar in size and related characteristics to phe one sold or rented to the person or family who does trot qualify. i J. A provision that the Developer enter into an agreement with the purchase{ or renter of an affordable unit which agreement stall: i i) Obligate the purchaser or renter at least once S year to provide the Developer with income information; and ii) Givejthe Developer the right, in the event of a ma #erial misrepresentation made by a person or family with respect to income, either inv #lidate the sale of the affordable unit or,;in the event of a rental unit, the right to ?terminate the tenancy. 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 14 iii) Require that a "for sale" unit be sold, within the period of time during which the unit is to remain affordable, only to persons of low or moderate income, whichever is appropriate; iv) Provide the agreement be recorded. k. A provision that Developer, acid all successors -in- interest, maintain the units as affordable for at least ten '(10) years from the date on which the units are first a4ailable for occupancy, unless the Developer can d onstrate to the City Council that a shorter perlod of affordability is, given the circumstances of;the project, appropriate. Any agreement that provid s for a period of affordability of less tha ten (10) years shall be reviewed and approved by he City Council. 1. A provision that the Cit shall be entitled to recover reasonable attorney's f s and costs incurred in connection with enforce ent of any provision of the agreement. M. A provision that the t rms and conditions of the agreement shall be bin in on the agents, employees heirs, assigns and successors -in- interest of the Developer. f n. A provision requiringjthe Developer, and successors -in- interest, to annually submit to the Planning Director a schedule of the rental rate for each affordable rental unit. The Developer shall also provide the Planning Director with the gross income of the occupant of the affordable unit. o. A provision that the City, in the event of a breach of • the agreement by the Developer, is entitled to obtain an order of the Superior Court commanding the Developer to specifically perform in accordance with the agreement, as well as interim injunctive relief restraining further violations of the agreement. 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 15 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 is given. Written notice shall be deemed to have been given if a letter advising the Developer of the deter- mination is deposited in the U.S. mail, first - class, postage pre -paid, and addressed to Developer at the business or residence for Developer shown on the application for permit. 2. At any time prior to the date on which the determina- tion becomes final, a Developer may file, with the City Clerk of the City, a notice of appeal, which must contain the facts and circum- stances regarding the action or determination that is the subject of the appeal, as well as all of the contentions upon which the Developer intends to rely at the time the appeal is heard. 3. Within 10 days from the date on which the City Clerk receives a valid notice of appeal, the Clerk shall notify the Develop- er, in writing, of the time and place set for the hearing of the appeal. The hearing shall be scheduled within 60 days from the date on which the notice of appeal was filed. 4. 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. 0 Adopted - August 9, 1982 Amended - September 12, 1983 Amended - December 9, 1985