75B - PH - HOUSING OPPORTUNITY ORD

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Zoning Ordinance Amendment 2015 -03 July 20, 2015 Page 3 Calculation of the /n -Lieu Housing Fee — The terms, conditions, and exact cost of in -lieu housing fee are not clearly spelled out and can change from project to project. In practice, this has resulted in different projects negotiating different fees, often with no new affordable housing units produced. In addition, the current HOO does not fully address the fair inclusionary housing requirement for new projects that have more contemporary products that do not fully adhere to traditional housing product types (e.g., "micro units," lofts, and unfinished space). As such, it is not always clear how the developer can best meet their inclusionary requirements. Further, given the current popularity of studios, one- and two - bedroom apartments, the product types produced by current development don't always meet the City's affordable family housing needs. Proposed Amendments: Based on the issues identified above and a number of other minor concerns, staff proposes the ordinance to be revised as follows: • Calculate the required inclusionary housing requirement in square feet to allow production of affordable housing types that are most needed in the community (e.g., family housing vs. one or two bedroom units); • Clarify the length of affordability to be 55 years, regardless of whether the units are rental or ownership units; • The developer may opt to provide the inclusionary affordable housing as follows: 0 15% if the affordable housing provided is for low- income families; 0 10% if the affordable housing provided is for very low - income families; 0 15 % if the affordable housing provided is for moderate income families. However the moderate income housing provision is only applicable and allowed when the application is for a 100 %ownership housing project. • Exempt projects approved prior to the date of adoption of the original Housing Opportunities Ordinance; • Exempt adaptive reuse of historic structures from the HOO; • Exempt retrofitting of existing buildings for a new use from the HOO; • Allow for off -site construction of inclusionary housing units at the rate of one square foot of new housing for each square foot of required inclusionary housing; • Allow rehabilitation of existing off -site housing to meet inclusionary requirement, provided • Off -site rehabilitated units are produced at a rate of 1 square foot per each required square foot of inclusionary affordable housing within a City - designated "Target Area." • Off -site rehabilitated units are produced at a rate of 1,5 square feet of newly rehabilitated housing per each (1) square foot of required inclusionary affordable housing when the rehabilitated housing is outside a City - designated ...rarget Area." • When a building is acquired by a developer to be rehabilitated to meet the developer's inclusionary housing requirement, the developer is 100% responsible for the terms and costs of relocation of existing tenants. • Remove the entire section on "takings determination" from the ordinance, as recent case law has established that inclusionary housing standards do not constitute a taking. 75B -7