Ordinance Number 955ORDINANCE NO. 955
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, ADOPTING CODE AMENDMENT TITLE 9 -LAND USE
RELATING TO THE IN -LIEU AFFORDABLE HOUSING FEE
DESCRIPTION SET FORTH IN SECTION 9-5.103
WHEREAS, 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 need; and,
WHEREAS, the cost of land and development within the County of Orange has
increased substantially since the creation of the In -Lieu Affordable Housing Fee; and,
WHEREAS, 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,
WHEREAS, SCAG Regional Housing Needs Assessment identifies 416 of 939
San Juan Capistrano new dwelling units, to be constructed for moderate, low, and very
low income households by 2014; and,
WHEREAS, staff determined in order to reach the SCAG goals and develop
affordable housing in the County of Orange market, the In -Lieu Affordable Housing Fee
should be equal to the amount gained when affordable housing is excluded from a
development; and,
WHEREAS, the fee will be payable at time of certification of occupancy as
authorized by State Assembly Bill No. 2604, Chapter 246, 2008 Stats.; and,
WHEREAS, staff has prepared a draft amendment to regulation section 9-5.103
(Housing in -lieu fee) of the Municipal Code.
NOW THERFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Code Amendment.
San Juan Capistrano Municipal Code Section 9-5.103 is amended pursuant to
provisions set forth in Exhibit A attached hereto.
SECTION 2. Unchanged Municipal Code.
Except with respect to the amendments set forth herein, the Municipal Code, as
amended, shall remain unchanged, and in full force and effect in accordance with its
terms.
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SECTION 3. Validitv of Ordinance.
If any part of this Ordinance is held to be invalid for any reason, such decision
shall not affect the validity of the remaining portion of this Ordinance, and this City
Council hereby declares that it would have passed the remainder of this Ordinance if
such invalid portion thereof had been deleted.
SECTION 4. Effective Date.
This Ordinance shall take effect and be in force thirty (30) days after its passage.
SECTION 5. City Clerk's Certification.
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 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 thi 7th d y of ril 2009.
MAR IELSEN, MAYPR
ATTEST: I
MUM
STATE OF CALIFORNIA
2 0955
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
1, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do
hereby certify that the foregoing is a true and correct copy of Ordinance No. 955 which was
regularly introduced and placed upon its first reading at the Regular Meeting of the City Council
on the 17th day of March 2009 and that thereafter, said Ordinance was duly adopted and passed
at the Regular Meeting of the City Council on the 7th day of April 2009 by the following vote, to
wit:
AYES: COUNCIL MEMBERS: Freese, Uso, and Mayor Nielsen
NO:�S` CQjCIL MEMBERS: Allevato and Hribar
ABNT U CIL MEMBERS: None
a
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, declare as follows: That I am the duly appointed and qualified
City Clerk of the City of San Juan Capistrano; That in compliance with State laws, Government
Code section 36933(1) of the State of California, on the 19th day of March 2009, at least 5 days
prior to April, 2009, the date of adoption of the ordinance, I caused to be posted, in the City
Clerk's Office a certified copy of the proposed Ordinance entitled:
AN ORDINANCE OF THE CITY OF SAN
ADOPTING CODE AMENDMENT TITLE 4
LIEU AFFORDABLE HOUSING FEE DES
9-5.103
San
PISTRANO, CALIFORNIA,
E RELATING TO THE IN-
SET FORTH IN SECTION
RETtR. MONAAN, C -T
n Capistrano lifornia
3 0955
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO )
I, MARGARET R. MONAHAN, declare as follows: That I am the duly appointed and qualified
City Clerk of the City of San Juan Capistrano; That in compliance with State laws, Government
Code section 36933(1) of the State of California. On the 8t" day of April 2009 1 caused to be
posted, in the City Clerk's office, a certified copy of Ordinance No. 955, adopted by the City
Council on April 7, 2009 entitled:
AN ORDINANCE OF THE CITY OF SAN JU
ADOPTING CODE AMENDMENT TITLE 9 LJ
LIEU AFFORDABLE HOUSING FEE DES,CRI
9-5.103
:)ISTRANO, CALIFORNIA,
E RELATING TO THE IN-
SET FORTH IN SECTION
',-MON H�N; CITj( CL
San JL(an , apistrano, I
4 0955
CHAPTER 5 FEES, DEPOSITS, AND BONDS
Sec. 9-5.103(b)(c) Housing in -lieu fee.
(b) In -lieu affordable housing fee policies. City policies aimed at achieving the
preceding -in -lieu affordable housing fee goals shall be for lots or units established
subsequent to September 1995 (Ordinance No.767), and shall apply to all new
residential developments of two (2) or more units. These developments shall be
reviewed by the City Council to determine if they will be allowed to dedicate fees or
to provide the construction of units to promote the construction and/or assistance of
affordable housing projects within all zone districts.
(c) In -lieu affordable housing fee description.
(1) Housing fee requirement. The schedule for payment of said in -lieu affordable
housing fee shall be negotiated with the City Council during the review
process of the project, but in all cases, the fee shall be remitted prior to
issuance of Certificate of Occupancy.
(2) Computation of fee requirement. The amount of the In -lieu affordable housing
fee shall be computed as follows:
Development for Rental Units -
(Mean Monthly Market Rent (l)—Mean Monthly Affordable Rent (2))
x 10 year affordability Covenant(3) = 0
0 x 10%(4) = Obligation Per Unit
(1) The average is determined by the Orange County market rate
for efficiency, one-, two-, three-, and four -bedrooms. (Annually
updated March 15, from HDC Rent Limits using Orange County
Fair Market Rent)
(2) The average is determined by the Orange County affordable
rate for efficiency, one-, two-, three-, and four-bedroom. (Annually
updated March 15, from Redevelopment Law publication from
Stradling, Yocca, Carlson, and Rauth Orange County Affordable
Housing Worksheet using low-income rates)
(3) City requires minimum of ten years for an affordability covenant
(San Juan Capistrano Municipal Code Section 9-3.505)
(4) City requires minimum of 10% of new developments to be
attributed to affordable housing (San Juan Capistrano Municipal
Code Section 9-3.505).
Development for Ownership Units -
Market Sales Price (1)- Affordable Sales Price (2)= 0
0 X 10%(3)= Developer's Obligation
(1) Market sales price is the Orange County Median sale price of all
Units. (Updated on the 25th of each month with the previous six
EXHIBIT A
month's Orange County Median Sales price data, using
DataQuick's "Orange County Home Sales Activity" report).
(2) Affordable sale price is the sales price a low-income household
can pay off with a 30 year loan. Sales Price determined using:
HUD's Income Rating of OC Low -Income rate (Annually updated
March 15, from HDC Income Limits using Orange County 4 person
household data); 30% of gross income is set aside for housing cost
(California Health and Safety Code Section 50052.2(b)(3));
allowance for the average association fee ($300) and property
taxes ($150); and loan funding with prime interest rate (Updated
Monthly -Freddie Mac).
(3) City requires minimum of 10% of new developments to be
attributed to affordable housing (San Juan Capistrano Municipal
Code Section 9-3.505).
(3) As an alternative to the computation of the fee requirement provided in
section (2) above, the City Council and developer may negotiate the
amount of the in -lieu affordable housing fee during the review process
for the project, so long as amount is equitable to what a developer
would have been required to provide if including affordable housing
within their development.
(4) Disbursement of fees. Prior to the disbursement of collected funds, and every
five (5) years thereafter, the City Council shall adopt a Five -Year Funding
Program with the following information:
(A) The amount of funding budgeted for loans or grants to recipients of
approved programs; and,
(B) Consistency with the City General Plan Housing Element.
EXHIBIT A