HomeMy WebLinkAbout16 - PA 2005-062 - Affordable HousingCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 16
March 22, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PLANNING DEPARTMENT
Jaime Murillo, Assistant Planner
(949) 644 -3209 imurilloc@- citv.newort- beach.ca.us
SUBJECT: Initiation of Code Amendment No. 2005 -004 incorporating a new
affordable housing chapter to Title 20 of the Municipal Code,
establishing provisions for the implementation of the City's housing
programs related to Inclusionary Zoning, Low- and Moderate - Income
Housing within the Coastal Zone, and possible future amendments.
(PA 2005 -062)
APPLICANT NAME: City of Newport Beach
ISSUE
Should the City Council initiate an amendment to Title 20 of the Newport Beach
Municipal Code incorporating a new "affordable housing" chapter related to the
implementation of the City's housing programs?
RECOMMENDATION
Adopt Resolution No. initiating an amendment to Title 20 of the Municipal
Tore r_
DISCUSSION
Staff is proposing to amend Title 20 of the Newport Beach Municipal Code, Part IV
(General Development Standards), by incorporating a new chapter to accommodate the
implementation of the City's affordable housing programs, specifically related to
inclusionary zoning regulations, low- and moderate - income housing within the coastal
zone, and future amendments to implement density bonus regulations. The new
chapter will be titled, "Chapter 20.68 (Affordable Housing Regulations) ".
Affordable Housing Regulations
March 22, 2005
Page 2
Inclusionary Zoning Regulations
Housing Program 2.2.1 of the City's Housing Element requires that all new residential
developments allocate a certain percentage of the units in a residential development
project to remain affordable or pay an "in -lieu fee'. This program was originally adopted
to assist the City in achieving units to fulfill the "fair share" requirement imposed by the
Regional Housing Needs Assessment (RHNA) developed by the Southern California
Association of Governments.
The current "in -lieu" fee was established in the late 1990's and is no longer an accurate
reflection of the current market conditions for the development of affordable housing. In
an effort to provide an equitable "in -lieu" fee option to residential developers, the City
has retained the services of a consultant, Economic and Planning Systems, Inc. (EPS),
to analyze and provide recommendations on the fees a residential developer should
have to pay "in- lieu" of providing affordable housing units.
In concurrence with the development of an "in -lieu" fee, the City must adopt an
inclusionary zoning ordinance to provide a legal basis for the application of an "in -lieu"
fee and for the implementation of Housing Policy 2.2.1. The proposed Chapter 20.68
will provide the specific requirements necessary to properly implement the Housing
Policy.
Low- and Moderate - Income Housing within the Coastal Zone
Currently, Chapter 20.86 of the Newport Beach Municipal Code implements Housing
Program 2.2.3 and the provisions of State Government Code Section 65590 (Mello Act),
related to the demolition, conversion and construction of low- and moderate - income
dwelling units within the Coastal Zone. However, Chapter 20.86 currently falls under
Part V (Special Use Regulations), of the Municipal Code. Staff believes that the
provisions of this chapter should actually fall under Part IV (General Development
Regulations), and incorporated into the new Chapter 20.68 (Affordable Housing
Regulations).
Future Density Bonus Regulations
The new Chapter 20.68 will allow additional housing - related regulations to be
incorporated in the future. A possible future addition to this chapter may be the
incorporation of "Density Bonus" provisions. In accordance with State Housing Law, all
cities and counties must adopt an ordinance that establishes procedures for the
utilization of a density bonus incentive. Housing Program 3.1.2 of the Housing Element
currently permits the City to grant a density bonus or other incentives if a residential
developer agrees to construct housing for persons or families of low- and moderate-
Affordable Housing Regulations
March 22, 2005
Page 3
income, however an actual density bonus ordinance should be drafted to establish
specific regulations. Staff anticipates completing a draft ordinance by July of this year.
Environmental Review
A request to initiate a Zoning Code Amendment is considered a feasibility or planning
study by staff, which is statutorily exempt pursuant to Section 15262 of the
Implementing Guidelines for the California Environmental Quality Act.
Public Notice
Notice is not required for a request to initiate a Zoning Code Amendment. Should the
amendment be initiated, the amendment will require noticed public hearings at the
Planning Commission and City Council.
Prepared by:
aime Murillo
Assistant Planner
Attachment: Resolution of intent.
Submitted by:
Sharon Z. Wo VIOL
Assistant City anager
F: USERS\PLN\Sh=d\PA's\PAs - 2005TA2005- 062\ Inilitalion\032205CCrpt_ini.doc
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH INITIATING AMENDMENTS TO TITLE 20
OF THE NEWPORT BEACH MUNICPAL CODE RELATED TO
THE INCORPORATION OF AN AFFORDABLE HOUSING
CHAPTER ESTABLISHING PROVISIONS FOR THE
IMPLEMENTATION OF THE CITY'S HOUSING PROGRAMS.
(PA 2005 -062)
WHEREAS, Housing Program 2.2.1 of the City's Housing Element is a statement
of the City's inclusionary housing policy and requires the construction of affordable
housing units (or the payment of an in -lieu fee) when the construction of new units is
proposed; and
WHEREAS, the City is in the process of updating and developing an equitable in-
lieu fee option; and
WHEREAS, the City must adopt an inclusionary zoning ordinance to provide a
legal basis for the application of an in -lieu fee and for the implementation of Housing
Program 2.2.1; and
WHEREAS, an amendment to Title 20 of the Municipal Code should be
considered for the incorporation of regulations related to housing element implementation.
A new chapter entitled "20.68 Affordable Housing Regulations ", should be considered to
establish provisions for the implementation of the City's housing programs; and
WHEREAS, the inclusionary zoning ordinance should be incorporated into the
new Chapter 20.68; and
WHEREAS, Chapter 20.86 of the Municipal Code currently implements Housing
Program 2.2.3 and the provisions of the State Government Code Section 65590 related to
the demolition, conversion and construction of low- and moderate - income dwelling units
within the Coastal Zone; and
WHEREAS, Chapter 20.86 should be relocated and incorporated into the new
Affordable Housing Regulations chapter for efficient administration; and
WHEREAS, Title 20 requires that any proposed amendment to the zoning
regulations be initiated by the adoption of a resolution of intention by the Planning
Commission or City Council.
City of Newport Beach
City Council Resolution No.
Paae 2 of 2
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Newport Beach
hereby initiates a Code Amendment to Title 20 of the Municipal Code for the purpose of
implementing the Housing Element of the General Plan and establishing provisions for the
implementation of the City's housing programs.
This resolution was adopted at a regular meeting of the City Council of the City of Newport
Beach held on March 22, 2005, by the following vote, to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSENT COUNCIL MEMBE
MAYOR
ATTEST:
Exhibit 2
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