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HomeMy WebLinkAbout(1983, 09/12) - P-1 - AmendedP -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 u r BACKGROUND The City of Newport Beach (hereinafter "City ") has the responsibility for the administration of provisions of State law relative to the demolition and conversion of existing low and moderate income residential units and construction of new affordable housing within the Coastal Zone. (Chapter 1007, Statutes of 1981, Government Code Section 65590 et seq) This Council Policy establishes the Administrative Guidelines and Implementation procedures to be used by the City 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 or families for projects involving the conversion or demolition of one or more structures located upon any parcel withi0 the City 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, the limited number of sub- standard housing units that can be rehabilitated, the relatively small profits that flow from projects involving twc/ or fewer residential units, and the negligible impact that such cbnversions or demolitions have on the low and moderate income housingiopportunities within the City. I 7 I i GENERAL RULES, 1. Exempt Projects This policy shall not apply to the following projects: a:" Projects not located within the Coastal Zone as established pursuant to the Coastal Act iof 1976 and as subsequently amended; b. The conversion or demolition 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 "coastally related" as those terms are defined in the Coastal Act of 1976, as amended, acid which non - residential use is consistent with the applicable local Coastal Plan designation; d. Demolition of any structure which has been declared to be or constitutes a;public nuisance, pursuant to the provisions of Divi.bion 13 of the Health & Safety Code of the State of ¢alifornia or any Ordinance of the City enacted pur nt thereto. II For the purposes of this terms shall be defined as follows: 1. "Conversion" shall m ship of any resident limited to, a change stock cooperative, c timeshare or similar right to occupy the or lease agreement, the purchase of the structure during a p period of years, or residential use to a the following words and any change in the form of owner- structure, including, but not ownership to a condominium, erative, community apartment, rm of ownership, such that the ucture is not based upon a rental tten or oral, rather, based upon ht to occupy some or all of the ion or all of the year, or for a perpetuity, or any change from a n- residential use; 2. "Demolition" shall n the destruction or tearing down of a residential stru ture which has been found feasible for retention pursuan to Section 30612 of the Public Resources Code; i' 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. Ili i 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 5. "Persons and Families of Low or Moderate Income" shall be defined as set forth in §50093 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. 7. Family" shall be defined as persons related by blood, marriage, formal adoption or those persons living to- gether by virtue of economic, social and psychological bonds; S. New Housing Development" shall ba defined to mean the construction, of three or more residential units on: 1) Previously vacant land; 2) Land previously occupied by two or less residential u ts; or 3) Land previously occupied by two or less mob a homes. 9. Planning Director" shall include the Planning Director of the City and all employees of the Planning Department to whom the Planning Department has delegated, orally or in writing, the performdnce of duties required by these Guidelines. J• 10. Developer" shall mean the person or entity that, at the time of the issuance`of any permit required or authorized by these Guidelinerr; is the beneficial owner of the property that is the subject of the permit. r 111 The procedures for processing requests for the approval of the conversion or demolition of residential structures located within the Coastal Zone shall be as follows: 1. Applicatilon for the approval of the conversion or demolition of residential structures located within the Coastal Zone shall be made by the Developer to tWe Planning Department on a form provided by that Department. The Developer shall provide the following information: a. The address of the property for which approval is sought; 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 b. A legal description of the property for which approval is sought; c. The number of residential units then in exist- ence 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 user to which the property will be put upon conversion or demolition; f. The name, business address, residence address, residence telephone number, business telephone number and such other information that would assist the City 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 foa which approval is sought; g. The name, business address, resident's address, resident's telephone number, business telephone number, and such other information that would assist the City in:obtaining financial information 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 relevant information, with respect to any leg$1 action filed by, or on behalf of, the Developer #nd against any current tenant or any person who, within the 12 months immediately preceding the datelon 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 sought1within the past 12 months; i. 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. 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 j. At the time the Application is filed, the Developer shall pay a fee of $750.00, or $250.00 per each residential unit to be converted or demolished, whichever is greater, said fee to defray the administrative costs and expenses incurred by the City in administering the provisions of these Guidelines and Section 65900 et seq of the Govern- ment Code. The Planning Commission may approve a reduction in fees for projects of 40 units or more; k. The project proposed by Developer shall not be processed by the City until such time as all information required by these Guidelines has been provided to the Planning Director; 1. Upon receipt of the Application and appropriate fees, the Planning Director shall cause an investi- gation to be commenced to determine the following: i) Whether the proj$tt is exempt under the provisions of these Adpinistrative Guidelines; ii) Whether any person of low or moderate income is presently 0 cupying any residential unit located on the property for which approval is sought; iii) Whether any person of low or moderate income has, within the 12tmonths immediately preceding the date on which the Application is filed, occu- pied 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 4uring 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; 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 Resources Code, whether a residential use at that location is no longer feasible. 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 2. The Planning Director, after conducting the investi- gation 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 replacement 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 avail- able through new construction, conversion of non - residential structure to residential use, substantial rehabilitatioII of substandard dwelling units (as define, in §17910 et seq of the Health and Safety Code) through the provi- sion of existing units ndt currently affordable by low or moderate incom4 persons, by giving existing low and moderatf income tenants the right to lease units on- ite at affordable rates, or by any combination of!the above; i b. The location of the rep4cement units and, if those units are not located within the Coastal Zone, all of the facts apd circumstances upon which the Developer relies to support his or her contention that it i not feasible to provide replacement unit$ within the Coastal Zone; C. Information relative to the size, configuration and manner of construction of the units, and together with all other information as to the amenities found within the replacement units. 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 opportuni- ties similar to those provided by the dwelling units converted 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; 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 5. Upon a final determination as to the number and location of replacement units, and prior to or concurrently with, giving the approval to Developer, to convert or demolish the units, Developer and the City shall enter into an Agreement, prepared by Developer and approved as to form by the City Attorney, which shall include the following provisions: a. A description of the project, including its location and the number of units to be de- veloped, 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 are affordable, and will be;made available to, persons or families of 'low or moderate income; d. That the replacement snits shall be provided, and available for occipancy, within three years from the date upon which the approval for the conversion o$ demolition was granted; e. A statement as to wiether the affordable units are to be sold or n6nted; f. A provision that the Agreement be recorded against the property containing the replace- ment units. g. A provision that?the Developer is responsible for ensuring tha the persons or families who rent or purchas the units are properly quali- fied as persons/ or families of low or moderate income; , h. A provision thtt a fair and equitable process shall be used y the Developer to select the persons or fa lies entitled to rent or purchase the units. T e selection process shall, at a minimum, prov de for the following: W That a Developer advertise the avail bility of the affordable 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 ii) That the Developer allot a reason- able period of time for persons or families to apply f; r purchase or rental of the affordable units; iii) That the Developer d#iigently investigate the factp in the application sub fitted to ensure that the Developerssi' are in fact persons and /or families of low or moderate income; iv) That selection of the purchasers or renters shall P a made through a random system ch as a lottery. i. A provision that, in thelevent of the sale or rental of a unit to a person o family who does not qualify as low or moderate fine e, the Developer shall, within 60 days, either twplace the occupants with persons or families of or moderate income or provide a replacement fnit, similar in size and related characteristicp to the one sold or rented to the person or fami* who does not qualify. r 4 j. A provision that the eveloper enter into an agreement with the purchaser ors renter of an affordable unit which agreement shall W Obligate the Plrchaser or renter at least once a year, to provide the Developer with income information; and ii) Give the Developer the right, in the event of a maierial 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. 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 9 k. A provision that Developer, and all successors - in- interest, maintain the units as affordable for at least ten 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 afford- ability is, given the circumstances of the project, appropriate. Any agreement that pro- vides for a period of affordability of less than 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, employees, heirs and asskgns and successors - in- interest of the Developer. n. A provision requiring Lhe Developer, and successors -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 afford- able 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. 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: 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 1. The Developer shall file ar Application for a Development Permit with the Planning DepSrtment of the City on forms provided by the Planning Departme4 . An Application for Development Permit shall be accompaniedyby a fee of $750.00, or 250.00 per each residential unit to'beg constructed, whichever is greater, said fee to defray the adminidtrative costs and expenses incurred by the City in administeringfhe provisions of these Guidelines and State law. The Planni g Commission may approve a reduction in the fees for projects in olving 40 or more residential units, or for projects for which the Peveloper has requested density bonuses pursuant to the provisions of Government Code Section 65913; 2. The Planning Director Phall determine whether the proposed project is exempt from the4e Guidelines as provided above; 3. If the project is det the provisions of these Guidelines, advise the Developer of the require in the event that the proposed proj approval by the Planning Commissio Development Permit, shall be referecisiooftheCityforreviewandd rmined not to be exempt from the Planning Director shall ents of these Guidelines and, ct is one which. requires an the project, including the d to the Planning Commission 4. 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 end 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; 5. 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 provisions of the Newport Beach General Plan, and all elements thereof, that pertain to affordable housing; 40 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 c. The provisions of the ordinances, resolutions and policies of the City which pertain Vo affordable housing; d. The extent to which the project proponent or Developer has requested density bondses, the waiver of fees, the waiver of park credits, or similar action on the part of the' City as incentives to provide affordable-housing; e. The social, technical, economic, environmental and other information related to project, the construction of affordable hdusing, and the mitigation measures necessavt to minimize any adverse environmental impacts. 6. When a proposed new development is required to provide housing units affordable by persons or families of low or moderate income ( "Affordable Units "), the Developer shall enter into an Agreement with the City which shall include the following provisions: a. A description of the Oroject, including its location and the number of units to be deve- loped, if the property is to be developed for residential purposes; b. A description of the affordable units to be provided, specifying their size, number and location; c. A commitment that the affordable units are and will be made av4ilable to, persons or families of low or moderate income; 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 provisioII that the Agreement be recorded against toe 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 12 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; That the Developer allow a reasonable period of time for persons or 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, 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 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. i 7 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 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 successors - in- interest, maintain the units as affordable for at least ten 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 afford- ability is, given the circumstances of the project, appropriate. Any agreement that provides for a period of affordability of less than 10 years shall be reviewed and approved by the City Council. 1. A provision that the City 9ball 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, employees heirs, assigns and successors -in- interest of the Developer. n. A provision requiring the 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. 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 14 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 determination 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 determination becomes final, a Developer may file, with the City Clerk of the City, a notice of appeal, which must contain.-the facts and circumstances regarding the action or determinationithat is the subject of the appeal, as well as all of the contentions upon which the Developer intends to rely at the time the appeaA is heard. 3. Within 10 days from tho date on which the City Clerk receives a valid notice of appeal, t e Clerk shall notify the Developer, in writing, of the time end place set for the hearing of the appeal. The hearing shall bd scheduled within 60 days from the date on which the notice of appal was filed. 4. The City Council may Council may delegate the responsib to a hearing officer, who shall co relevant evidence, and who shall p Council written findings and recom shall, within 30 days from the dat or within 30 days from the date on recommendations are received from decision on the appeal: Adopted - August 9, 1982 Amended - September 12, 1983 ear the appeal, or the City ity for conducting the hearing, uct the hearing, receive all pare and submit to the City ndations. The City Council on which the hearing is held, hich written findings and e hearing officer, render its E? C i 0