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HomeMy WebLinkAboutMinutes 060403 - Special Mtng Approved June 24,2003 ;9n 7 SPECIAL JOINT MEETING CITY COUNCIL / PLANNING COMMISSION MINUTES WEDNESDAY, JUNE 049 2003 6:30 p.m. AFFORDABLE HOUSING ISSUES & INCLUSIONARY HOUSING ORDINANCE STUDY SESSION - CONTINUED STUDY SESSION: 6:30 P.M. Mayor Clay called the meeting to order at 6:32 p.m. and led the meeting in the Pledge of Allegiance. ROLL CALL: Present: Planning Commissioners O'Keefe, Jones, Porter, Beraud, Bentz, Kelley and Chairperson Fonzi Council Members Pacas, O'Malley, Scalise, Luna and Mayor Clay Absent: None Others Present: City Clerk Marcia McClure Torgerson Staff Present: City Manager Wade McKinney, Community Development Director Warren Frace, Information Technology Director Andrew Fruin, and City Attorney Roy Hanley. The City Council and Planning Commission discussed how the meeting would proceed. CC/PC Joint Session 06/04/03 Page 1 STUDY SESSION STAFF REPORTS 1. Discussion of Affordable Housing Issues and an Inclusionary Ordinance Community Development Director Warren Frace gave the staff report. PUBLIC COMMENT—None Council and Commission discussed possible project requirements. PUBLIC COMMENT: John Campenella, Bermant Development, expressed his thoughts that other ways and sources should be looked at other than just the inclusionary policy to provide units at the low and very low-income levels. He also discussed in-lieu fees and their uses. Fred Shot, civil and structural engineer, San Luis Obispo, explained his view that inclusionary housing hurts more people than it helps. Jerry Bunin encouraged the Council and Commission to create an incentive that will be favorable to the City and the developer. Mike Jackson, Ensenada Avenue, felt that collecting and monitoring a trust account could be a burden to the city. Also, he felt requiring one of the units to be affordable would hurt modest developments with very few units. Mayor Clay closed the Public Comment period. The City Council and Planning Commission gave staff potential options to be included in an inclusionary housing ordinance: 1. Introduction: 2. Project Requirements: Define size of residential projects required to provide affordable housing: ■ 1-4—no inclusionary. ■ 1-4—possible in-lieu fees ■ 3-4—possible in-lieu fees Commercial projects: ■ Hold over discussion of in-lieu fees on commercial until the March meeting when commercial development impact fees will be studied. ■ Mixed use: use similar rules as residential, create incentive for providing workforce housing on site. ■ Staff to look at possible property tax credits ■ Staff to look at possibility of transfer fees CC/PC Joint Session 06/04/03 Page 2 Single family vs. multi-family rental: ■ Multi-family projects—density bonus ■ Tiered options for multi vs. single family PUBLIC COMMENT Fred Shot stated that many developers do not want to build rental units or condos due to excessive litigation. Mayor Clay closed the Public Comment period. Colony lots ■ Look at fee reduction for Colony lots. ■ Incentives for providing senior housing. 3. Percent/Type Affordable ■ Define % of units with a project that must be affordable—further study necessary. ■ Define required distribution of categories of affordable units for very low income, low income, and moderate-income households. PUBLIC COMMENT John Campenella volunteered to help staff with the analysis of the percentages. He reiterated that multi-family housing could better support the lower income families, however this could increase costs for developers. Mike Jackson explained that when the number of units a developer builds is increased, the liability per unit increases. Keith Jones asked if his understanding that inclusionary and density bonuses should be tied to each other directly was correct. Mayor Clay explained that if a density bonus were granted, the inclusionary requirement would be eliminated. Rae Belle Gambs asked what is a Colony lot. Mayor Clay explained that Colony lots were the original lots in Atascadero. Jerry Bunin, Home Builders Association, asked for clarity on the density bonus program in the General Plan. Mayor Clay closed the Public Comment period. ■ Single-family: Difficult to reach very low income - low income or moderate-income best. ■ Multi-family: Very low, low and moderate income. ■ Staff to look at percentage figures and a range to get close to regional housing needs. . Define the timeframe for how long the units must remain affordable ■ Equity sharing—look at affordability in perpetuity. CC/PC Joint Session 06/04/03 Page 3 ■ Program could be ongoing—transfer equity based on improvements made to house. PUBLIC COMMENT John Campenella stated that some of the equity share programs are based on actual help or participation for the buyer to qualify, i.e. silent second or some other down payment assistance. Mayor Clay closed the Public Comment period. ■ Timeframe for how long the units must remain affordable: study comparison of 50- year option, 30-year option, 15-year option and equity sharing. Mayor Clay recessed the hearing at 8:50 p.m. Mayor Clay called the meeting back to order at 9:00 p.m. 4. Exceptions ■ Suggested: farm worker housing, mobile home park developments and other specific development situations in addition to case-by-case exemptions for unusual or unforeseen circumstances which would cause a request for exemption. ■ Projects that meet state density bonus requirements would be exempt. 5. Standards ■ Exterior of units should look similar in appearance to the others in the development. ■ Size and interiors can vary. ■ Lower cost units should not be clustered. ■ Timing and phasing: inclusionary units within the same project must be developed either prior to or concurrent with the development of the market rate units. ■ Off site units: look into options for timing. 6. In-Lieu Fees ■ Look at when fees should be paid. ■ Staff to look at various ways to calculate in-lieu fees (three options to be considered) ■ Planning Commission will look at who would decide if in-lieu fees are appropriate, the developer or the city. Staff will provide pro's and con's on this subject. PUBLIC COMMENT John Campenella suggested that for single-family homes, the very low-income in-lieu fee should be based upon a rental differential. Jerry Bunin encouraged the creation of a situation that would give both the City and the builder the maximum flexibility. Mayor Clay closed the Public Comment period. CC/PC Joint Session 06/04/03 Page 4 7. Alternatives ■ Off-site construction—to require Council approval? ■ Land dedication ■ Combinations of construction, fees and land dedications. 8. Incentives ■ Density bonuses ■ Fee reductions ■ Expedited processing ■ Financial assistance ■ Parking requirements 9. Compliance Requirements ■ Privatization ■ Use of non-profit groups 10. Eligibility Requirement ■ Contracting out credit checks, etc. ■ Improved financial situation should not require person to vacate home. 11. Owner Occupied Units ■ City to ensure that if unit is rented the city is informed and unit is rented to someone who satisfies the criteria. 12. Rental Units ■ An agreement already in use in city could be used. 13. Waivers ■ Types of situations to provide waivers for. 14. Housing Trust Fund ■ Money from this fund should stay in Atascadero for city's projects. ■ City could set up it's own Housing Trust Fund— staff to report back on options. ■ Use in-lieu fees to administer program. ■ Criteria—lottery system. 15. Enforcement ■ Privatizing of enforcement of criteria—staff to report back on options. ADJOURNMENT: Mayor Clay adjourned the joint session at 9:52 p.m. MEETING RECORDED AND MINUTES PREPARED BY: Wa� aj C Marcia McClure Torgerson, City Clerk CC/PC Joint Session 06/04/03 Page 5