HomeMy WebLinkAbout773ORDINANCE NO.773
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
IRWINDALE ADDING CHAPTER 3.66 ("AFFORDABLE
HOUSING NON-RESIDENTIAL DEVELOPMENT LINKAGE
FEE")TO TITLE 3 ("REVENUE AND FINANCE") OF THE
IRWINDALE MUNICIPAL CODE RELATED TO AN
AFFORDABLE HOUSING NON-RESIDENTIAL
DEVELOPMENT LINKAGE FEE, AND FINDING THE
ORDINANCE EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA), PURSUANT TO
CEQA GUIDELINES SECTION 15061(b)(3)
WHEREAS, a city has the power make and enforce regulations designed to promote
the public convenience or the general prosperity, as well as regulations designed to promote
the public health; the public morals, or the public safety; and
WHEREAS, in executing that power, a city council may make and enforce within its
limits all local, police, sanitary and other ordinances and regulations not in conflict with
general laws; and
WHEREAS, the City Council of the City of Irwindale ("City Council") recognizes
that the City of Irwindale ("City") is facing increasing demands for affordable housing,
including low-income and senior housing, and further acknowledges the need to facilitate
the availability of housing products at different levels of affordability in order to address
the housing needs of the entire community; and
WHEREAS, the City Council desires to adopt a fee to help address the increased
need for affordable housing connected with new nonresidential development and the
development of new market rate residential units ("Affordable Housing Non -Residential
Development Linkage Fee" or "Non -Residential Linkage Fee"); and
WHEREAS, the City has caused a study to be prepared that analyzes whether
there is a reasonable relationship between the development of nonresidential projects
and new market rate residential units and the need to increase the supply of new
affordable housing; and
WHEREAS, that draft study, prepared by Willdan Financial Services, entitled "City
of Irwindale — Affordable Housing and Commercial Linkage Impact Fee Study" dated
October 2023 ("Nexus Study"), demonstrates that such a nexus exists, and that the use
of an Affordable Housing Non -Residential Development Linkage Fee for the purpose of
increasing the supply of affordable housing in the City is justified, based on the following
findings:
Ordinance No. 733
Page 1
A. Extremely Low-, Very Low-, and Low -Income households in Irwindale, as defined
by the 2023 HUD income limits, cannot afford market rate housing in the City.
Affordable housing is defined as housing that costs 30 percent or less of gross
monthly household income; and
B. The costs to develop new, modest, rental housing are significant in Irwindale, and
exceed the development costs that can be supported by ongoing affordable rents.
There is a housing affordability gap, meaning the cost to develop affordable
housing units exceeds the amount of what very low, low, and moderate income
households can afford to pay for housing; and
C. The last affordable housing projects in the City took place in 2018 and produced
11 new single family units. Between 2013 and the end of FY 2022-23, 34 affordable
homes have been constructed or rehabilitated and subsequently sold to qualifying
households, including the 11 new units built in 2018. Looking forward, the City
must produce 36 Very Low -Income, and 11 Low -Income units by October 2029 to
comply with the Southern California Association of Governments (SCAG) 6th
Cycle Final Regional Housing Needs (RHNA) Allocation Plan. The implementation
of an affordable housing impact fee and commercial linkage fee could provide
funding sources to facilitate the production of affordable housing to meet the City's
RHNA allocation; and
D. The City of Irwindale is projected to generate approximately 6,900 net new jobs by
2040, some of which will be attributable to the demand for workers created by new
non-residential developments, including but not limited to office, commercial, and
industrial developments; and
E. New 100,000 square foot Non -Residential Office Developments within the City are
projected to generate approximately one to four jobs per development; and
F. New 100,000 square foot Non -Residential Commercial Developments within the
City are projected to generate approximately one to three jobs per development;
and
G. New 100,000 square foot Non -Residential Industrial Developments within the City
are projected to generate approximately one to four jobs per development; and
H. Most jobs generated by new 100,000 square foot Non -Residential Office,
Commercial, and Industrial Developments will fall under "Very Low Income" and
"Low Income" occupations; and
Low -wage households cannot reasonably afford to pay for market rate housing in
the City. This requires households to commute far distances from more affordable
areas which puts a strain on workforce satisfaction, air quality, infrastructure, traffic
and transit, and the health and safety of the City's residents and workforce; and
Ordinance No. 733
Page 2
J. As low -wage households cannot reasonably afford to pay for market rate housing
in the City, a housing impact fee can bridge the difference between what new low -
wage households, generated by new development and job growth, can afford to
pay and the cost to provide housing units associated with this induced job growth;
and
K. The current pace of development and maintenance of housing units within the City
of Irwindale that are affordable for "Extremely Low Income," "Very Low Income,"
and "Low Income" wage-earners is outpaced by the demand caused by this
projected job growth by 2040; and
WHEREAS, the lack of affordable housing production has a detrimental effect on
the health, safety, and welfare of the City's residents including its impacts on traffic, transit
and related air quality impacts, and the demands placed on the regional transportation
infrastructure, as City -based employees with "Extremely Low Income," "Very Low
Income," and "Low Income" occupations are unable to afford to live in the City and must
commute from more affordable areas; and
WHEREAS, the City Council has determined that the Non -Residential Linkage Fee
is consistent with and implements the goals and objectives of the City's General Plan,
including the City's Housing Element, and in particular Housing Element Policy 5 and
Housing Element Policy 9; and
WHEREAS, the Non -Residential Linkage Fee is intended to create a funding
mechanism to increase the supply of affordable housing in the City without reference to
a specific development or property; and
WHEREAS, the City Council finds that this Ordinance is exempt from the California
Environmental Quality Act ("CEQA') pursuant to State CEQA Guidelines Sections 15061
(b)(3) on the grounds that it can be seen with certainty that the Residential Linkage Fee
will not have a significant effect on the environment; and
WHEREAS, the City Council has determined that the Non -Residential Linkage Fee
should be established consistent with the requirements applicable to fees for public
facilities in California Government Code Section 66000 et seq., commonly referred to as
the Mitigation Fee Act, without determining that it is required to do so; and
WHEREAS, the City has published advance notice of the public hearing
concerning the Non -Residential Linkage Fee in a manner consistent with the Mitigation
Fee Act, and during that period made available for public review and comment data
indicating the estimated cost required to provide affordable housing and the potential
revenue sources; and
WHEREAS, the Non -Residential Linkage Fee is authorized pursuant to Section
400 of the City Charter and Section 7, Article XI of the California Constitution as a police
power measure to improve the public welfare of the City; and
Ordinance No. 733
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WHEREAS, consistent with the Mitigation Fee Act and the City Charter, the Non -
Residential Linkage Fee may be established by ordinance and resolution; and
WHEREAS, all legal prerequisites for the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IRWINDALE DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The facts set forth in the recitals in this Ordinance are true and correct
and incorporated herein by this reference.
SECTION 2. Based upon substantial evidence and testimony taken from the record
as a whole, and received at the public hearing, both oral and written, including the Nexus
Study, staff report, and all attachments thereto, which shall constitute the entire record of
the matter, the City Council does hereby find and determine that a reasonable relationship
(or "nexus") exists between the development of nonresidential projects and the need to
increase the supply of new affordable housing.
SECTION 3. The City Council hereby adopts and adds a new Chapter 3.56, entitled
"Affordable Housing Non -Residential Development Linkage Fee" to Title 3, entitled
"Revenue and Finance", of the Irwindale Municipal Code to read in its entirety as set forth
below:
"CHAPTER 3.56 — AFFORDABLE HOUSING NON-RESIDENTIAL DEVELOPMENT
LINKAGE FEE
3.56.010 - Purpose.
The purpose of this chapter is to facilitate the development and availability of
housing affordable to a range of households with varying income levels within the City
through creation and imposition of a fee on new non-residential development, including
commercial, industrial, office, and other non-residential development, which will partially
fund the need for affordable housing created by the workforce of this new development.
The requirements of this chapter are based on a number of factors including, but not
limited to, the City's commitment to increasing opportunities for affordable housing; the
immediate need for affordable housing, as reflected in local, state, and federal housing
regulations and policies; the demand for affordable housing created by commercial,
industrial, and other non-residential development; and the impact that the lack of
affordable housing production has on the health, safety, and welfare of the City's residents
including its impacts on traffic, transit and related air quality impacts, and the demands
placed on the regional transportation infrastructure. Imposing a fee that is reasonably
related to the burdens created by new commercial, industrial, office, and other non-
residential development on the City's need for affordable housing will enable the City to
fund development of affordable housing units that will contribute to addressing these
impacts. It is the intent of the City Council that the fee required by this chapter shall be
Ordinance No. 733
Page 4
supplementary to any conditions imposed upon a development project pursuant to other
provisions of this Code, the City Charter, the Subdivision Map Act, the California
Environmental Quality Act, and other state and local laws, which may authorize the
imposition of project specific conditions on development.
3.56.020 — Definitions.
The following words, terms and phrases, when used in this chapter, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
"Applicant" shall mean person, firm, partnership, association, joint venture,
corporation, developer, or any entity or combination of entities, which seeks or applies for
City approvals, permits or entitlements for all or part of a Non -Residential Development
Project.
"Building Permit" shall mean and include full structural building permits as well as
partial permits such as foundation -only permits.
"Non --Residential Development Project" shall mean the construction or the addition
of new non-residential Gross Leasable Floor Area (as defined in this Section), or the
conversion from a use exempt from the Affordable Housing Non -Residential Development
Linkage Fee, per Section 3.56.030.B, to a use subject to the Affordable Housing Non -
Residential Development Linkage Fee (as set forth in Section 3.56.030). Non -Residential
Development Projects include, but are not limited to, development projects for commercial
use, industrial use, and office use.
"Community Land Uses" shall mean land uses that serve the public, which include
but are not limited to: hospitals, churches or other places of worship, museums,
educational facilities (public and private K-12,community colleges, and colleges and
universities), youth and recreational facilities, emergency shelters, and other such
institutional uses which serve the public, as determined by the Director.
"Director" shall mean the Community Development Director of the City of Irwindale,
or his or her designee.
"Gross Leasable Floor Area" means the square footage in a non-residential
property designed for a tenant's exclusive use, which typically includes mezzanines,
basements, or upper floors, but does not include shared areas, such as parking garages,
public bathrooms or maintenance areas. Gross Leasable Floor Area is measured from
the center of the wall separating tenant spaces. Internal walls are incorporated in the
Gross Leasable Floor Area.
"City Manager" shall mean the City Manager of the City of Irwindale, or his or her
designee.
Ordinance No. 733
Page 5
"Mixed -Use Project" shall mean, for the purposes of this Chapter, any development
that contains a combination of residential and non-residential uses within one building, or
an integrated group of buildings on one development site.
3.56.030 —Affordable Housing Non -Residential Development Linkage Fee.
A. An Affordable Housing Non -Residential Development Linkage Fee, in an amount
established by resolution of the City Council, is hereby imposed on all Non -
Residential Development Projects. The Fee imposed shall be based on the
impacts to affordable housing attributable to the Non -Residential Development
Project and shall be determined at the time of submittal into building plan check
for the project. No Non -Residential Development Project shall be approved, nor
shall any such Non -Residential Development Project be constructed, without
compliance with this Chapter. The amount of the charge due under this chapter
shall be determined at the time of submittal into building plan check for the
project. Following project submittal the city shall provide the applicant with a
notice in writing, a statement of the amount of the Fee and notification of the
ninety (90) day appeal period in which the applicant may protest the imposition
of the fee. The full Fee amount shall be due and payable to the City prior to or at
the issuance of building permits. No certificate of occupancy or building permit
shall be issued for a Non -Residential Development Project that has not paid the
Fee required under this chapter.
B. Notwithstanding subsection A above, this chapter shall not apply to the following:
A Non -Residential Development Project with a Gross Leasable Floor Area
of 10,000 square feet or less in aggregate;
2. A Non -Residential Development Project with an application that has been
submitted and deemed complete by the Community Development
Department prior to January 1, 2024;
3. Community Land Uses, as defined in this chapter (such as religious
institutions, museums, educational facilities, hospitals, etc.);
4. Reconstruction of any building that was destroyed by fire, flood, earthquake
or other act of nature, so long as the square footage does not exceed the
square footage prior to the loss; and
5. The housing portion of a Mixed -Use Project.
C. The Affordable Housing Non -Residential Development Linkage Fee shall be
charged on new Gross Leasable Floor Area, subject to Section 3.56.050
(Conversion).
Ordinance No. 733
Page 6
3.56.040 — Adjustments or Waivers.
An applicant for any project subject to the Fee described in this Chapter may apply to the
City Manager for an adjustment, reduction, or waiver of the development impact fee
based upon the absence of any sufficient nexus between the proposed use and either the
amount of Fee charged or purpose of the Fee. Such requests shall be subject to the
process outlined below:
A. Any application for an adjustment, reduction, or waiver of the Fee shall be made
in writing and filed with the City Clerk's Office within ninety (90) days of the date of
the notice.
B. The application shall state in detail the factual basis and legal theory for the claim
of waiver, reduction or adjustment. The applicant shall bear the burden of proof of
presenting substantial evidence to support the request for an adjustment or waiver.
C. The City Manager shall render a written decision to the request within sixty (60)
days after the written appeal is filed. The applicant may seek review of the City
Manager's decision by filing a written appeal to the city council within ten (10) days
of the City Manager's decision. The written appeal must be in writing and filed with
the City Clerk.
D. The city council shall consider the application at a public hearing held within sixty
(60) days after the filing of the written appeal. The decision of the city council shall
be final.
E. If an adjustment or waiver is granted, any increase to the new Gross Leasable
Floor Area of the approved Non -Residential Development Project shall invalidate
the adjustment or waiver.
3.56.050 — Conversion.
If the original or proposed use, or original or proposed development of a property
is exempt from the Affordable Housing Non -Residential Development Linkage Fee, but
the property is later converted to a use subject to the Fee, the Gross Leasable Floor
Area of the converted square footage shall be subject to the Fee pursuant to Section
3.56.030(A).
3.56.060 — Use of Funds.
All funds generated by the Affordable Housing Non -Residential Development
Linkage Fee shall be used to facilitate the development and/or preservation of housing
affordable to moderate and lower income households.
Ordinance No. 733
Page 7
3.57.070 — Fee Schedule Set by Resolution.
The amount of the Affordable Housing Non -Residential Development Linkage Fee
and any adjustments thereto may be reviewed and revised periodically, and adopted by
resolution of the City Council."
SECTION 4. The City Council hereby finds and determines the adoption of this
Ordinance is exempt from environmental review under the California Environmental
Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations ("CEQA
Guidelines") Section 15061(b)(3) because the Ordinance will not allow for or encourage
any more development than is already anticipated under the City's existing General Plan
and as regulated by existing zoning, or otherwise allow for or promote physical changes
in the environment, and therefore, it can be seen with certainty that there is no possibility
that the Ordinance will have a significant effect on the environment. All new development
projects required to pay the Affordable Housing Non -Residential Development Linkage
Fee imposed by this Ordinance and will be subject to appropriate environmental review
as part of the entitlement process. Each of the foregoing provides a separate and
independent basis for CEQA compliance and, when viewed collectively, provides an
overall basis for CEQA compliance.
SECTION 5. If any section, subsection, sentence, clause or phrase of this
ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The City
Council hereby declares that it would have passed this ordinance, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared unconstitutional
due to the writs of mandate issued by the Court.
SECTION 6. The Mayor shall sign this Ordinance and the City Clerk shall certify
to the passage and adoption of this Ordinance, and shall cause the same to be published
and posted pursuant to the provisions of law in this regard, and this Ordinance shall take
effect 60 days after its final passage. City Staff are directed and authorized to inform and
educate the public regarding the adoption of this Ordinance prior to its taking effect.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Irwindale this 13th day of December, 2023.
Albert F. Ambriz, Mayo
Ordinance No. 733
Page 8
ATTEST:
V Nieto, MMC
Deputy City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF IRWINDALE )
I, Laura M. Nieto, Chief Deputy City Clerk of the City of Irwindale do hereby certify
that the foregoing Ordinance No. 773 was introduced for first reading at a regular meeting
of the City Council of the City of Irwindale held on November 8, 2023, and adopted on
second reading at a regular meeting of the City Council of the City of Irwindale held on
December 13, 2023, and was carried by the following -roll call vote:
AYES: Counci[members:
NOES: Counci[members:
ABSENT: Counci[members:
ABSTAIN: Councilmembers:
AFFIDAVIT OF POSTING
Breceda, Burrola, Garcia, Ortiz, Mayor Ambriz
None
None
None 4"'
&61�
M. Nieto, MMC
Deputy City Clerk
I, Laura M. Nieto, MMC, Chief Deputy City Clerk, certify that I caused a copy of
Ordinance No. 773 adopted by the City Council of the City of Irwindale at its regular
meeting held December 13, 2023, to be posted at the City Hall, Library, and Post Office
on December 18, 2023.
M. Nieto, MMC
Deputy City Clerk
Dated: Iq k
O-_�
Ordinance No. 733
Page 9