Item 28 - Housing Ad Hoc Committee Progress Report Regarding The Housing Opportunity Ordinance

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( Ord. No. NS-2881, § 2, 9-1-15 ; Ord. No. NS-2994 , § 3, 9-1-20) Sec. 41-1902. - Applicability and inclusionary unit requirements. (a) Applicability. The requirements of this article shall apply to any new residential project comprised of twenty (20) or more residential lots or residential units which has not received entitlement approvals by the City Council as of MONTH DATE, 2021, including new construction, and condominium conversions which meets one or all of the following applicability thresholds: (1) A change in use to allow for residential or to exceed the general plan or zoning prescribed densities or percentage of residential development of the subject property at the time of application. (2) Implement the permitted residential density or percentage of residential development allowed as a result of city initiated zone changes after November 28, 2011. (3) Implement the permitted residential density or percentage of residential development allowed as a result of city initiated general plan amendments after November 28, 2011. (4) Increase the permitted percentage of residential development allowed for a mixed-use development above the percentage permitted under the zone at the time of application. (5) Development of new residential uses or increase of the permitted residential density or percentage of residential development within an overlay zone approved pursuant to Division 28 of this Chapter. (6) Convert rental units to condominium ownership. (b) Applications. The inclusionary requirements shall only apply to the incremental units beyond that which is allowed as prescribed in Subsection (a) above. (c) Units for sale. If the new residential project consists of units for sale, then a minimum of ten (10) percent of the total number of units in the project shall be sold to moderate income households. (d) Rental units. If the new residential project consists of rental units, then a minimum of fifteen (15) percent of the units shall be rented to low-income households, ten (10) percent rented to very low- income households, or five (5) percent rented to extremely low-income households. (e) Rounding of quantities in calculations. In calculating the required number of inclusionary units, fractional units shall be rounded-up to the next whole unit. The developer may choose to pay an in- lieu fee set forth in section 41-1904(c) for the fractional units, which shall be calculated based on the number of habitable square feet applicable in each case. (f) Displacement of existing inclusionary units. Notwithstanding any other provision of this article, any residential project subject to this article that results in the displacement of very low and/or low income household(s) shall be required to provide on-site inclusionary units as required by this article. (g) Compliance with article. All inclusionary units required by this article shall be sold or rented in compliance with this article. ( Ord. No. NS-2881, § 2, 9-1-15 ; Ord. No. NS-2885, § 2, 10-6-15 ; Ord. No. NS-2994 , § 3, 9-1-20) Sec. 41-1903. - Exempt projects. The following are exempt from the requirements of this article: (a) Applications deemed complete. Applications that include a residential project for which a development application has been deemed complete prior to November 28, 2011. (b) Development agreements. A residential project that is the subject of a development agreement under applicable provisions of the California Government Code that expressly provides for an exclusion to this article, provides for a different amount of inclusionary units, or provides for a Exhibit 3 - Without Redline Draft