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Zoning Ordinance Amendment No. 2020-03 August 18, 2020 Page 2 In 2015, the HOO was updated to make the inclusionary housing requirements more predictable for housing developers and to increase affordable housing production in conjunction with new market rate housing development. Some examples of the ordinance changes included simplifying the complex in -lieu fee calculation, modifying the "moderate income" definition to 80 percent of the area median, and creating additional incentives to allow developers the option of providing inclusionary housing units either on or off -site. A provision of the ordinance was a requirement to revisit the HOO in three years to determine its effectiveness. In December 2018, the City Council received and filed a report on the effectiveness of the Housing Opportunity Ordinance that was adopted in 2015. In July 2019, the City Council formed an Ad Hoc Committee to review the Ordinance as was required by the 2015 ordinance. The Ad Hoc Committee included Mayor Pro Tern Villegas, Councilmember Iglesias, and Councilmember Solorio. In May 2020, the Ad Hoc Committee was reformed to include Mayor Pulido and Councilmembers Bacerra and Mendoza, to continue the review efforts of the previous committee. The Ad Hoc Committee provided direction to draft amendments to Chapter 41 (Zoning) of the SAMC as described and analyzed in Table 1: Summary of Amendments, below. The complete Draft Zoning Ordinance Amendments, including a redlined version of the previously adopted document, are included as Exhibits 1 and 2. Table 1: Summary of Amendments Code Section Subject Issues/Ad Hoc Recommendations 41-1901 Definitions: Deletes Issue: This proposal consists of modifying several definitions, certain definitions and the addition of new amends several existing definitions. Definitions pertaining to "Affordable definitions and adds new housing cost' and "Low income households" definitions to the were modified to identify the type of households ordinance that qualify for these income levels. Further, a definition for "Moderate Income Households" is proposed to identify the parameters of this income level, a definition for "Entitled Residential Project' is proposed to identify when a project is entitled, a "General Plan" definition is proposed as is a definition for "Moderate income units." 41-1902 Applicability: Issue: This section is proposed to be amended Establishes new to only apply to those projects with 20 or more standards for projects that units in size and that are requesting an increase need to comply with the in the density permitted by the General Plan. ordinance The current ordinance applies to projects consisting of five or more units, projects requesting a zone change or a general plan amendment, and are within an overlay zone. It also reduces the percentage of for -sale units that 75B-2