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2007-002 Waiver Policy for Affordable Housing RESOLUTION NO. 2007-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, ESTABLISHING A WAIVER POLICY FOR THE AFFORDABLE HOUSING ASSIST ANCE DEDICATION (INCLUSIONARY HOUSING) REQUIREMENT WHEREAS, this action is necessary in order to provide applicants the ability to request a waiver or reduction of the requirement based upon the absence of any reasonable relationship or nexus between the development and the requirement; and WHEREAS, this action is consistent with the General Plan and Local Coastal Plan. The General Plan establishes policies regarding the need to provide adequate housing opportunities for all segments of the population. (Housing Element Policy 1.3) Maintaining Chapter 24.21 helps to disperse affordable housing throughout the community by incorporating affordable housing in all subdivisions of 10 or more units. (Policy 1.4, Housing Element) The General Plan requires development to pay their "fair share" of costs for facilities and services. (Policy 2.4, Land Use Element) The waiver clause allows a developer to request a review of this "fair share" (reasonable relationship or nexus) between the requirement and the development. No Local Coastal Program policies were found to conflict with the waiver provision. NOW, THEREFORE, BE IT RESOLVED that it shall be the policy of the City Council of the City of Encinitas, California, to provide a procedure by which an applicant for a residential development may request a reduction, adjustment, or waiver of the Affordable Housing Assistance Dedication requirement of Chapter 24.21 of the Encinitas Municipal Code, as follows: Policy: The following Requirement Adjustment is established to allow applicants the ability to request a waiver or reduction of the affordable housing requirement based upon the absence of any reasonable relationship or nexus between the development and the requirement. Requirement Adjustment. A subdivider of any project subject to the requirements of this Chapter may apply to the City Council for a reduction, adjustment, or waiver of the requirement based upon the absence of any reasonable relationship or nexus between the impact of the development and either the amount of in-lieu fee charged or the affordable unit reservation required. The application shall be made in writing, in a form acceptable to the Director of Planning and Building, at the time of filing of a tentative subdivision map, or no later than 10 days before the first public hearing on the proposed subdivision map. The application shall state in detail the factual basis for the claim of reduction, adjustment, or waiver. The subdivider shall bear the burden of presenting substantial evidence to support the claim that there is not a reasonable relationship or nexus between the impact of the development and the requirements of this Chapter. The City Council shall consider the application for reduction, adjustment, or waiver within 30 days of its filing. If a reduction, Psm/flhousinglinclusionary/cc staff rpt 012407 1/25/2007 5 adjustment, or waiver is granted, any change in use within the development, modification of the approved tentative subdivision map, or application for a new subdivision map shall invalidate the reduction, adjustment, or waiver of the in-lieu fee or affordable unit reservation requirement. BE IT FUTHER RESOLVED that the City Council, in their independent judgment, finds that the adoption of this Resolution is exempt from Environmental Review pursuant to General Rule 15061 (b) (3) since there would be no possibility of a significant effect on the environment because the amendment will not directly result in development. EFFECTIVE DATE: This resolution will become effective immediately and shall remain operative until it is superseded by the requirement adjustment provided by Ordinance No. 2007-02. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Encinitas, California, held on the 24 day of January, 2007, by the following vote. A YES: Barth, Bond, Dalager, Houlihan, Stocks. NAYS: None. ABSENT: None. ABSTAIN: None. ATTEST: (///.......... ... . ........-----...~-...", ,---..------, ""." . .... ./....... _____.. .. ! --A . \ ~ J I ~. -~/r..",..~ J .~._. . d/ AYOR .-/~ ' '" ! , I ( , { i \ i.. ~ l . .'~.. , DEBORAH CERVONE, City Clerk Psm/f/housing/inclusionary/cc staff rpt 012407 1/25/2007 6