RES 12574 - Laserfiche WebLink

Pleasanton lnclusionary Requirements Pleasanton's inclusionary requirements help to achieve the City's affordable housing goals by increasing the production of residential units affordable to households of very low, low, and moderate income either through construction of units or by providing funds for affordable housing. Another puroose of the requirement is to ensure that the remaining developable land in Pleasanton is utilized in a manner consistent with the city's housing policies and needs. The City requires that 15 percent of the total number of units of all new multiple-family residential projects containing 15 or more units be affordable to very low and low income households. For all new single-family residential projects of 15 units or more, at least 20 percent of the project's dwelling units must be affordable to very low, low, anc/or moderate income households. Commercial, office, and industrial development are also required either to construct units or pay an in-lieu fee. Inclusionary units must: (1) be dispersed throughout the project unless otherwise approved by the City; and, (2) be constructed with identical exterior materials and an exterior architectural design that is consistent with the market rate units in the project. However, inclusionary units can be of smaller size than the market units in the project and they may have fewer interior amenities than the market rate units in the project. Other requirements are that the inclusionary units remain affordable in perpetuity through recordation of an affordable housing agreement, and that the inclusionary units in a project be constructed concurrently within or prior to the construction of the project's market rate units. Although the City's ordinance requires rental development to provide affordable units, a recent court case does not permit this unless the developer agrees and receives either financial assistance or a regulatory incentive. The City is currently exploring alternatives regarding rental housing projects. Pleasanton lnclusionary Flexibility and Incentives The primary emphasis of the inclusionary zoning ordinance is to achieve the inclusion of affordable housing units to be constructed in conjunction with market rate units within the same project in all new residential projects. However, since this may not always be practical, the City allows alternative ways for a development to meet its inclusionary requirement. At the discretion of the City, alternatives include: construction of units off-site at a location within the city other than the project site; land dedication; credit transfers if a project exceeds the total number of inclusionary units required; alternate methods of compliance as approved by the City Council; and payment of a lower income housing fee. The use of any of these alternative methods of compliance is subject to City review and approval memorialized in an Affordable Housing Agreement. The Agreement is negotiated by City staff and the applicant. It is then brought to the Housing Commission for recommendation and ultimately to the City Council for final approval. The Agreements include a contribution of City Affordable Housing funds towards the project to help offset the cost of including affordable units. The process is run simultaneously with the development application review and adds no time to the development review process. The discussions concentrate on the level of affordability a particular project can afford given its own particular circumstances. No project has ever been denied due to the failure to negotiate an Affordable Housing Agreement that has been acceptable to both the City and the applicant. City of Pleasanton Housing Element BACKGROUND—February 2012 104