Ordinance Number 767295
ORDINANCE NO. 767
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, AMENDING TITLE 9 OF THE MUNICIPAL CODE TO ADD
SECTION 9-3.632, ESTABLISHING IN -LIEU AFFORDABLE HOUSING FEES
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DOES
HEREBY ORDAIN AS FOLLOWS:
The City Council finds that:
1. The revised Housing Element of the General Plan was adopted in April 1990
by the City Council which established goals, policies and objectives to achieve regarding the
production of new houses, rehabilitation, assistance, to very low, low, and moderate income
households; and,
2. in order to achieve the desired objectives a significant financial investment is
necessary at all governmental levels; and,
3. The California State Legislature has declared that there exists a severe shortage
of housing affordable to very low, low, and moderate householders, that such shortages is detrimental
to the health, safety and welfare of the residents of the state, and that it is an economic benefit to the
state and a public purpose to encourage the availability of adequate housing for very low, low, and
moderate income households; and,
4. The lack of federal, state, and local funding to maintain an adequate supply of
affordable units forces people into expending limited income above their means for housing; and,
5. The City has recognized the need to implement a comprehensive housing
policy to address the housing needs for both existing and future residents of this community; and,
6. The City has adopted the Hope Plan, a Housing Opportunities Program
Empowerment Plan, which recognizes that in order to provide affordable housing assistance, it will
be necessary to raise revenues broadly, fairly, and equitably across a range of interests in the City;
and,
7. The City recognizes that in order to meet its affordable housing needs it is
necessary to establish a permanently dedicated and annually renewable financial commitment to asset
in housing very low, low, and moderate income households and first-time homebuyers; and,
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8. The Southern California Region of Governments' (S CAG) Regional Housing
Needs Assessment identifies the City of San Juan Capistrano housing needs as an additional 1,823
low and very low income household dwelling units from the planning period of approximately 1988
to 1996; and,
9. The 1990 Census identifies the City of San Juan Capistrano's housing needs
as an additional 1,764 low and very low income household dwelling units; and,
10. The construction of moderate to high income housing reduces available land
for affordable income housing development; thereby precluding the City's ability to meet the identified
housing needs. Thereby, new development necessitates that the City establish a requirement for in -lieu
of dedication fees so as to enable the City to purchase existing developed land for construction of new
units or acquisition of land in order to meet SCAG's identified housing needs.
Based upon the findings set forth in Section 1, preceding, Chapter 3 of Title 9 of
the San Juan Capistrano Municipal Code is hereby amended by adding Section 9-3.632 thereto to
read as follows:
"Section 9-3.632. In -Lieu Affordable Housing Fee Provisions.
(a) Purpose and Intent.
Purpose and Intent of the in -lieu affordable housing fees provisions in this Section is to
achieve the following:
To create a housing fund to facilitate the development of residential housing
opportunities for low, very low, and moderate income households within the City
of San Juan Capistrano; and,
2. To create an affordable housing fund as an annually renewable source of revenue
to assist in implementing The Hope Plan (Housing Opportunities Program
Empowerment Plan) as adopted by City Council on February 21, 1995 which
implements the City's General Plan Housing Element; and,
To preserve and maintain renter and ownership housing units which are affordable
to very -low, low, and moderate income households located within the City; and,
4. To foster and encourage the private sector to join the City and the non-profit
sectors to further the goals of this Chapter.
(b) In -Lieu Affordable Housing Fee Policies.
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City policies aimed at achieving the preceding in -lieu affordable housing fee provisions'
goals shall be as follows:
New Residential Dev lopm n - Residential developments of 2 or more units shall
be required to dedicate fees to promote the construction and/or assistance of
affordable housing projects within all zone districts.
(c) In -lieu Affordable Housing Fee Description.
Housing Fee Requirement - The payment of said in -lieu affordable housing fee shall
be required as a condition of issuance of a Building Permit. Except as provided
elsewhere in this chapter, no Building Permit shall be issued for construction of, or
interior remodel of, Residential Development Project of two or more units, subject
to this chapter unless and until the fee provided for in this chapter is paid to the City.
2. Computation of Fee Rem ' ement - The amount of the in -lieu affordable housing fee
shall be computed as follows:
One percent of valuation as determined under the City of San Juan Capistrano
Municipal Code Section 8-1.05.
3. Dispersement of Fees - Prior to the dispersement of collected funds, and every five
years thereafter, the City Council shall adopt a Five -Year Funding Program with the
following information:
The amount of funding budgeted for loans or grants to recipients of approved
programs; and,
ii. Consistency with the City General Plan Housing Element.
(d) Regulations Pertaining to the Dispersion of Fees Collected.
1. Funds collected shall be used solely for programs and administrative support outlined
by the City Council in The HOPE Plan (Housing Opportunities Program and
Empowerment Plan) to meet the housing needs of very low, low, and moderate
income households. These programs shall include those providing assistance through
production, acquisition, rehabilitation and preservation of affordable housing units for
moderate, low, and very low income households.
Funds may be used in any manner, through loans, grants, or indirect assistance for
the production and maintenance of affordable housing.
Funds used for the operation of supporting services such as child care or social
services must meet the following criteria:
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i. Funds are used in connection with transitional housing or in neighborhoods
where the number of units create the need for supportive services; or,
ii. The recipient demonstrates to the City that other funds are not available;
or,
iii. No more than twenty-five percent (25 %) of the loan, grant or assistance is
designated for such services.
4. Whenever funds are disbursed, the City Council shall determine the terms and
conditions which shall be attached to the grant or loan.
(e) Regulations Pertaining to Recipients of In -Lieu Affordable Housing Funds.
1. Every recipient of in -lieu housing fee funding shall enter into a written agreement
with the City which sets forth the terms and conditions of the funding (e.g. grant
or loan). The agreement shall contain the following provisions:
i. The amount of funds to be disbursed; and,
ii. The manner in which the funds are to be used; and,
iii. The terms and conditions of the grant or loan, and,
iv. The projected maximum rent to be charged to maintain an affordable
housing cost (if rental); and,
V. A requirement for quarterly financial reports to be provided to Planning
Director; and,
vi. Restrictions on the return on equity and developers fee recipients may
receive, where applicable.
(f) Financial Management of In -Lieu -Fees Collected.
The City's Director of Administrative Services shall maintain a separate In -Lieu
Housing Fees account which details all programs and any required related subsidiary
funds and transfer the balance on deposit from such funds on an annual basis with a
report prepared for City Council review.
(g) Applicability of Fee Requirement.
1. This Chapter shall apply to subdivision projects that are proposing the construction,
addition, or interior remodeling of any residential project involving two or more units.
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2. This chapter shall not apply to projects which fall within one or more of the following
categories:
Projects which are already the subject of a development agreement currently
in effect with the City, or of a disposition agreement, owner participation
agreement, or memoranda of understanding with the San Juan Capistrano
Community Redevelopment Agency, approved prior to the effective date of
this chapter, and where such agreements or memoranda: 1) limit the
application of fees in a manner which specifically precludes the fees which
would otherwise be imposed by this Chapter, or 2) provides alternative means
of addressing the project contribution to very low and low income housing
need, which means are quantitatively comparative to the fees herein; or
ii. Single Room Occupancy Developments; or
iii. Residential additions which does not exceed more than fifty percent (50%) of
the existing square footage of the subject building; or
iv. That portion of any development project located on property owned by the
State of California, the United States of America or any of its agencies, with
the exception of such property not used exclusively for state governmental or
state educational purposes; or
V. Any development project with has received a vested right to proceed without
payment of housing impact fees pursuant to State Law; or,
vi. Any construction which is for any general government purposes; or,
vii. Qualified residential housing which provide housing units consistent with the
provisions of this Chapter.
viii. Relocation of existing historically significant structures to secondary locations
within the City."
This Ordinance shall take effect and be in force thirty (30) days after its passage.
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The City Clerk shall certify to the adoption of this Ordinance and cause the same
to be posted at the duly designated posting places within the City and published once within fifteen
(15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may
cause to be published a summary of this Ordinance and a certified copy of the text of this
Ordinance shall be posted in the Office of the City Clerk five (5) days prior to the date of adoption
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of this Ordinance; and, within fifteen (15) days after adoption, the City Clerk shall cause to be
published the aforementioned summary and shall post a certified copy of this Ordinance, together
with the vote for and against the same, in the Office of the City Clerk.
PASSED, APPROVED AND ADOPTED this 5th day of
July —1 1995.
CAROLYN NAISH, MAYOR
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SIMAGIF "W
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) Ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano,
California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance
No. 767 which was introduced at a meeting of the City Council of the City of San Juan
Capistrano, California, held on June 20th 1995, and adopted at a
meeting held on July 5 , 1995, by the following vote:
AYES: Council Members Jones, Hart, Campbell, Swerdlin and
Mayor Nash
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL)
CHERYL JOH ON,(MY CLERK
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