Additional Documents List Regular City Council Meeting April 7, 2021 (Uploaded Online on 04/07/2021 @ 4:25 p.m.) Item Agenda Item Description Distributor Document No. Introduction of Ordinance Adding a New Division 36.375 (Inclusionary Joanna Hankamer, Planning and Housing) to Chapter 36 (Zoning) of Community Development the South Pasadena Municipal Code; Director Adoption of Urgency Ordinance Memo adding 2 Pursuant to Government Code Elizabeth Bar-El, AICP, Interim Staff Powerpoint presentation. Section 36937(b), Amending the City Manager for Long Range of South Pasadena Municipal Code Planning & Economic to Add a New Division 36.375 Development (Inclusionary Housing) to Chapter 36 (Zoning) Introduction of Ordinance Adding a New Division 36.375 (Inclusionary Joanna Hankamer, Planning and Housing) to Chapter 36 (Zoning) of Community Development the South Pasadena Municipal Code; Director Adoption of Urgency Ordinance Memo updating Staff 2 Pursuant to Government Code Elizabeth Bar-El, AICP, Interim Recommendation Section 36937(b), Amending the City Manager for Long Range of South Pasadena Municipal Code Planning & Economic to Add a New Division 36.375 Development (Inclusionary Housing) to Chapter 36 (Zoning) Emailed Public Comment PC for: Regular Session Agenda Maria E. Ayala, Chief City Clerk Emailed Public Comments Item Nos. #1, 2, 5, 6 A.D. - 1 Page 1 of 1 City of South Pasadena Planning and Community Development Department Memo Date: April 5, 2021 To: Mayor and Members of the City Council From: Sean Joyce, Interim City Manager Prepared By: Joanna Hankamer, Planning and Community Development Director Elizabeth Bar-El, AICP, Interim Manager for Long Range Planning & Economic Development Re: Additional Document for Item No. 2 – Inclusionary Housing Ordinance The staff presentation for Item No. 2, Introduction of Ordinance Adding a New Division 36.375 (Inclusionary Housing) to Chapter 36 (Zoning) of the South Pasadena Municipal Code; Adoption of Urgency Ordinance Pursuant to Government Code Section 36937(b), Amending the City of South Pasadena Municipal Code to Add a New Division 36.375 (Inclusionary Housing). A.D. - 2 Item 3: Inclusionary Housing Ordinance South Pasadena City Council Meeting April 7, 2021 Adoption Hearing for SPMC Division 36.375: First Reading and Urgency Ordinance Joanna Hankamer, Director Elizabeth Bar-El, AICP Interim Long Range Planning & Economic Development Manager A.D. - 3 Inclusionary Housing Ordinance Proposed as Zoning Code Division 36.375: Requires housing projects to include a % of affordable units, to be deed-restricted for a set period of time for occupancy by eligible low-income households at affordable rent or purchase levels. 2 A.D. - 4 Why Adopt an Inclusionary Ordinance? To address the need for affordable housing in order to be inclusive of all members of the community. To ensure that the city’s limited land resources are developed with housing that includes a share of affordable units. For the 2021-2029 Housing Element Regional Housing Needs Assessment (RHNA) 2,067 Total Units (1,489 affordable to VL, L, Mod households) Suitable sites and programs are needed to show potential to comply. Inclusionary housing is the most effective way to ensure affordable units are built. To ensure a more substantial portion of affordable units in State Density Bonus projects To become a State-recognized “Prohousing” city and retain3 local control over local development approval processes A.D. - 5 Background: Preparation Timeline . March 21, 2018: Keyser Marston report to Council; Council directs staff to research IH options . January 28, 2019: Planning Commission directs community outreach for developing an IHO. February 6, 2019: Update report to Council . September 2019: First housing workshops with community . May-September 2020: Virtual Housing Workshops . August 11, 2020: Planning Commission Study session . December 15, 2020 – Planning Commission Study Session . December 2020-March 2021 PC Affordable Housing sub- committee meetings: . January 25: Workshop with Housing Rights Center 4 A.D. - 6 Planning Commission Action PC Recommendation hearings: January 26, 2021 March 9, 2021 On March 9, 2021, the Planning Commission recommended adoption of the inclusionary housing ordinance by a vote of 4-1. 5 A.D. - 7 Key Provisions Inclusionary Housing Ordinance 6 A.D. - 8 Applicability (36.375.020) . Applies to all projects with 3 or more residential units . Residential Only . Mixed-use projects 7 A.D. - 9 Exemptions (36.375.030) . Projects deemed complete prior to effective date of ordinance . Residential units within designated landmark buildings (adaptive reuse) . 100% affordable housing projects . ADUs/JADUs 8 A.D. - 10 Definitions (36.375.040) . Defines terms specifically used in this division . Affordability levels for households . Extremely Low Income . Very Low Income . Low Income . Moderate Income . Inclusionary units 9 A.D. - 11 Inclusionary Unit Requirement (36.375.050) . 20% of base project units . Replacement of any existing deed-restricted units . Affordability Levels for units: . Options for 10 or fewer units with balance . 11+ units – 50-50 extremely/very low and low . Ownership units: must be moderate or provided for rental 10 A.D. - 12 Alternatives to Onsite provision (36.375.060) . In-lieu fee option for 3 or 4-unit projects, ownership projects, or fractional units: . Council to determine fee amount by resolution . Other options for all projects: . Build off-site units, . Rehabilitate existing units . Donate land (with Council decision to accept offer) 11 A.D. - 13 Standards governing inclusionary units (36.375.070) . Units must be distributed throughout the project . Comparable size and type to market rate . Comparable quality and materials . Equal access to project amenities, maintenance . Director-approved marketing plan with preferential leasing to SoPas residents and employees . Constructed concurrently with project . Proportional development with phased project . Rental projects affordable rental units . Ownership projects affordable rental or ownership units 12 . Affordable Units to be deed-restricted for 55 years A.D. - 14 Streamlined State Density Bonus Review (36.375.080) . Residential and Mixed Use projects Eligible . The Requirements: To demonstrate that the project supports a clear and consistent architectural design . Upper floor stepbacks . Balcony/terrace design that is protective of adjacent single- family uses . 360-degree architectural design . Signature architectural element . Ground floor street-friendly design 13 A.D. - 15 Streamlined State Density Bonus Review (36.375.080) . The Incentives: Project is pre-approved for the following: . Height increase and height averaging. May exceed underlying zoning by an average of: . Mission Street: 5’ . Other Mixed Use: 15’ . Multi-family: 10’ . Highest point: <5’ above bonus average max for district . Parking: .5 spaces per bedroom (studios also .5; fractions rounded up) . Affordable units may be up to 10% smaller than MR 14 A.D. - 16 Applications (36.375.090) . Application must demonstrate compliance with inclusionary housing requirements to be deemed complete . Describes minimal application contents 15 A.D. - 17 Conditions of Approval (36.375.100) . Standard conditions for all on-site projects . Deed restriction to be recorded prior to building permit issuance . Defines general required contents for deed restriction . Includes specific conditions for either rental or for-sale units . Off-site units: Schedule required for development at same time as main project 16 A.D. - 18 In-lieu Fee Payment and Administration (36.375.110) . Council to establish in-lieu fee by resolution . Fee shall be equivalent to cost of providing a comparable unit in project . Interim: Planning Commission may approve project fee payment on a case-by-case basis . Administration details: . Reserve fund for affordable housing production . City may administer or transfer to the San Gabriel Valley Housing Trust (SoPas is a member) 17 A.D. - 19 Implementation Update application materials Council resolution to adopt an in-lieu fee provision 18 A.D. - 20 Recommendation 1) Introduce for First Reading by title only an Ordinance Amending the South Pasadena Municipal Code by Adding Division 36.375 (Inclusionary Housing) to Chapter 36 (Zoning) and waive first reading; and 2) Adopt an Urgency Ordinance pursuant to Government Code Section 36937(b) Amending the South Pasadena Municipal Code by Adding Division 36.375 (Inclusionary Housing) to Chapter 36 (Zoning) to take effect immediately. 19 A.D. - 21 City of South Pasadena Planning and Community Development Department Memo Date: April 7, 2021 To: Mayor and Members of the City Council From: Sean Joyce, Interim City Manager Prepared By: Joanna Hankamer, Planning and Community Development Director Elizabeth Bar-El, AICP, Principal Long Range Planning Management Analyst Re: Additional Document 2 for Regular Session Item No. 2 – Recommendation addition Staff has been made aware of an inadvertent error in the draft ordinance in Subsection 36.375.100.B.1. (Conditions of approval, For-sale units). The recommended ordinance (Subsection 36.375.050.C) requires for-sale units to be provided for Moderate Income households. This recommendation evolved during Planning Commission review, and the language in the referenced Conditions section was not updated for consistency. Therefore, staff now incorporates the following revision into the recommendation: B. For-sale housing units. In the case of for-sale housing developments