21 - Laserfiche WebLink

3. Couple with incentives and concessions. From both a legal and a practical standpoint, an inclusionary -housing policy should include incentives and concessions for developers to help offset the cost of providing the affordable units. Common concessions and incentives include: + Density increases, including the option of greater density increases in exchange for higher percentages of affordable units. + Waivers of development standards, such as height and setback requirements. + Reduction in or a waiver of minimum parking requirements, especially for projects located in transit areas. + Expedited permit processing or ministerial approval. + Waiver, reduction or deferral of development fees, either on the inclusionary units or the entire project. + Direct financial subsidies. California law requires that developers who comply with an on-site inclusion- ary requirement that meets the affordable -housing requirements of the state Density Bonus Law must receive all of the benefits to which they are entitled under that law. These benefits include a density increase, concessions and incentives, waivers of development standards and reduced parking require- ments. For example, a project that includes 20% of units affordable to low-income households is entitled to a 35% density bonus, two concessions or incentives and various other benefits provided under the state law. 4. Establish clear development standards. In addition to specifying the percentage of affordable units and at which income levels, an ordinance should establish clear standards for the inclusionary units. Among such best practices: + The affordable units must be indistinguishable from the market -rate units in the development, at least outwardly. + The project includes a similar mix of unit types. For example, if a multifamily rental development will have an equal number of 1-, 2- and 3 -bedroom units,the affordable units should also incorporate an equal mix of 1-, 2- and 3 -bedroom units. Many ordinances also require that inclusionary units be the same square footage as the market -rate units, although in some cases jurisdictions have built in flexibility to reduce square footage while including the same number of bedrooms to reduce project costs. + Inclusionary units must be located throughout the development rather than clustered in one area. + Residents of the affordable units must have access to all amenities — such as a pool, a fitness center and parking — that market -rate residents have. The affordable units must be completed either prior to or concurrent with the market -rate units, and prior to issuance of a certificate of occupancy. ACCESSORY DWELLING UNITS: For single-family for -sale developments, some jurisdictions have allowed accessory dwelling units (ADUs) as a way to fulfill an inclusionary requirement. This is not considered a best practice and should be avoided. While cities and counties should encourage the construction of ADUs, which can be a land- and cost-efficient way of expanding a community's housing supply, they are problematic from an inclusionary standpoint. ADUs are readily distinguishable from the other units in a for -sale develop- ment,and may raise equity and fair -housing concerns if used as the means for achieving compliance with an inclusionary policy. ADUs are also typically studios or 1 -bedrooms rather than a match of the bedroom mix of the primary development, and are often designed as"micro" or "efficiency" units without similar amenities as the primary development. They are challenging to deed -restrict and monitor, and are unlikely to provide the long-term affordability that an inclusionary ordinance should require. MEETING CALIFORNIA'S HOUSING NEEDS: BEST PRACTICES FOR INCLUSIONARY HOUSING a