65B - HOUSING OPPTY REPORT - Laserfiche WebLink

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Report on Effectiveness of Housing Opportunity Ordinance and Council Options December 4, 2018 Page 5 IV. Applicability of the Ordinance - a. General Plan Update Completion: The current ordinance only applies to projects when the number of units exceeds the densities permitted under the General Plan. As a result, there are various projects that do not trigger the Ordinance. Specifically, this does not allow the City to require inclusionary housing for residential projects in residential zones. It is anticipated that with the adoption of the new General Plan, all housing projects will be in residential zones. Generally, since the adoption of the Ordinance more affordable housing units would have been created if all of the projects had been required to build on-site. Therefore, regarding the applicability of the Ordinance, staff will study the following policy optio s for future City Council consideration: 1) No change, recognizing that revenues and housing units will decrease once the General Plan is update completed. 2) Modify the ordinance to apply to all housing projects. b. Adaptive Reuse: The current Ordinance requires adaptive reuse projects toy provide onsite affordable housing or pay an in -lieu fee. Simultaneously, the City's Adaptme Reuse Ordinance allows developers to convert vacant or underused existing office or commercial space to residential uses. Certain incentives are provided to encourage the provision of housing in this way. Therefore, regarding the applicability of the Ordinance, staff will study the following policy options for future City Council consideration: 1) No change. 2) Create a reduced requirement for adaptive reuse projectts. 3) Eliminate the applicability of the Ordinance on adaptive reuse projects. c. Non -Residential Uses - The current Ordinance only applies to residential projects. Some cities require inclusionary housing fees for non-residential projects. (Therefore, regarding the applicability of the Ordinance, staff will study the following policy options for future City Council consideration: 1) No change. 2) Modify the Ordinance to create an inclusionary housing fee for non-residential uses. V. Percent Set -Aside for On -Site Units: The current Ordinance allows developers the option to develop 10°/q units on-site for very low- income families or 15% units on-site for low-income families. If only the higher threshold of 15% is applied, the City will receive more affordable housing units than the 10% alternative. Therefore, regarding the percentage of units to be built on-site, staff ill study the following policy options for future City Council consideration: 1) No change. 2) Modify to allow a reduced percent set-aside for very low-income as well as other housing including Special Needs Housing or housing types that meet oiu Regional Housing Needs Assessment requirements. L•