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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 Page 3 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