PC Res 4719 RESOLUTION NO. 4719
BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CAMPBELL RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE AMENDING CHAPTER 21.24 (INCLUSIONARY HOUSING ORDINANCE) OF THE CAMPBELL MUNICIPAL CODE. FILE NO. PLN-2023-85.
After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed. The Planning Commission finds as follows with regard to the recommended approval of an
Ordinance amending Chapter 21.24 (Inclusionary Housing Ordinance) of the Campbell
Municipal Code: 1. The Ordinance will amend Chapter 21.24 (Inclusionary Housing Ordinance) of the Campbell Municipal Code as set forth in Exhibit A except as amended herein.
2. Housing prices and rents in the City of Campbell have increased at a significantly higher rate than general wages. The lack of affordable housing in Campbell forces many residents to pay a very high percentage of their income for housing or to commute considerable distances, adding to air pollution and traffic congestion in Campbell and
throughout Santa Clara County. The lack of affordable housing has made it more difficult to recruit workers from out of the area, in general, especially workers in lower-paying jobs, potentially affecting the economic vitality of the Campbell. New housing developments do not, to any appreciable extent, provide housing affordable to lower income households.
As a result, there is a severe shortage of lower income housing as evidenced by the
following:
a. According to the 2023-2031 Final Regional Housing Needs Allocation (RHNA) Plan for the San Francisco Bay Area, prepared by the Association of Bay Area Governments (ABAG), over half (56%) of the City’s housing need is for very-low, low, and moderate-income households.
b. According to the U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019) 44.6% of renters, and 27.4% of homeowners, in Campbell are cost burdened, spending more than 30% of their income on housing.
3. The proposed amendments to Chapter 21.24 (Inclusionary Housing Ordinance) of the Campbell Municipal Code include additional findings in Section 21.24.010 (Purpose and
findings.) which are hereby included by reference. 4. The proposed amendments would be consistent with the 2040 General Plan and 2023-2031 Housing Element of the City of Campbell including, but not limited to, the following:
2040 General Plan
Goal LU-3: Employ creative approaches to providing a range of affordable
housing options in Campbell while protecting the character of established neighborhoods.
LU-3.a: Implement the programs in the Housing Element in order to achieve
the city’s housing goals.
Planning Commission Resolution No. 4719 PLN-2023-85 – Amending Chapter 21.24 (Inclusionary Housing Ord.) Page 2 of 3
2023-2031 Housing Element
Program H-1a: Inclusionary Housing Ordinance Implementation: Amend the
Inclusionary Housing Ordinance to offer developers a menu of options for achieving affordability, adjusting the percentage of units required to be
affordable depending on the degree of affordability achieved (i.e., moderate-
, low-, very low-, and extremely low income). These amendments could also
include:
• Initiating a nexus study to reevaluate increasing the affordable housing in-lieu fee.
• Updating the inclusionary ordinance to require for-sale projects to
provide the same allocation of units available to lower-income and very low-income units that is required for rental projects.”
• Modifying the In-Lieu Fee threshold to apply only to developments
of 5-9 units. Housing developments of 10 or more units would not be
allowed to substitute affordable units with in-lieu fees.
5. The legislature of the State of California has, in Government Code Sections 65302, 65560
and 65800, conferred upon local governments the authority to adopt regulations designed to promote the public health, safety and general welfare of its citizenry. 6. The review and adoption of the proposed amendments is done in compliance with
California Government Code Sections 65853 through 65857, which require a duly noticed
public hearing of the Planning Commission whereby the Planning Commission shall provide its written recommendation to the City Council for its consideration. 7. Adoption of the proposed Ordinance is considered a "project" under Section 15378(a)(1)
of the California Environmental Quality Act (CEQA).
8. The recommended adoption of an Ordinance may be found exempt from environmental review under Section 15061(b)(3) of the California Environmental Quality Act (CEQA) in that there is no possibility that recommending changes to the City’s Municipal Code may
have a significant effect on the environment.
Based upon the foregoing findings of fact, the Planning Commission further finds and concludes that:
9. In consideration of the recommended adoption of the Ordinance, the Planning Commission provided due consideration of all evidence presented and provided in the
entire administrative record.
10. The proposed amendments are consistent with the goals, policies, and actions of the 2040 General Plan and all applicable development agreements, area plans, neighborhood plans, and specific plans.
11. The proposed amendments will not be detrimental to the public interest, health, safety, convenience, or general welfare of the city.
Planning Commission Resolution No. 4719 PLN-2023-85 – Amending Chapter 21.24 (Inclusionary Housing Ord.) Page 3 of 3
12. The proposed amendments are internally consistent with other applicable provisions of the Campbell Municipal Code and Zoning Code. 13. No substantial evidence has been presented which shows that the project, as currently presented, will have a significant adverse impact on the environment.
14. The recommended adoption of an Ordinance is exempt under Section 15061(b)(3) of the California Environmental Quality Act (CEQA) as there is no possibility that the proposed changes to the City’s Municipal Code may have a significant effect on the environment.
THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council approve an Ordinance amending Chapter 21.24 (Inclusionary Housing Ordinance) as generally set forth in Exhibit A, withholding changes to the project size threshold, rounding, and type of projects which qualify to pay a housing in-lieu fee.
PASSED AND ADOPTED this 13rd day of August, 2024, by the following roll call vote: AYES: Commissioners: Zisser, Kamkar, Buchbinder, Fields, Majewski NOES: Commissioners: None ABSENT: Commissioners: Ostrowski, Krey
ABSTAIN: Commissioners: None APPROVED:
Alan Zisser, Chair ATTEST: Rob Eastwood, Secretary
Alan Zisser (Sep 9, 2024 13:31 PDT)
Exhibit A ORDINANCE NO. BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING CHAPTER 21.24 (INCLUSIONARY
HOUSING ORDINANCE) OF THE CAMPBELL MUNICIPAL CODE.
FILE NO. PLN-2023-85. WHEREAS, after notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was
closed.
WHEREAS, the subject Ordinance will amend Chapter 21.24 of the Campbell Municipal Code.
WHEREAS, housing prices and rents in the City of Campbell have increased at a significantly
higher rate than general wages. The lack of affordable housing in Campbell forces many
residents to pay a very high percentage of their income for housing or to commute considerable distances, adding to air pollution and traffic congestion in Campbell and throughout Santa Clara County. The lack of affordable housing has made it more difficult to recruit workers from out of the area, in general, especially workers in lower-paying jobs,
potentially affecting the economic vitality of the Campbell. New housing developments do not,
to any appreciable extent, provide housing affordable to lower income households. As a result, there is a severe shortage of lower income housing as evidenced by the following:
a. According to the 2023-2031 Final Regional Housing Needs Allocation (RHNA) Plan for the San Francisco Bay Area, prepared by the Association of Bay Area
Governments (ABAG), over half (56%) of the City’s housing need is for very-
low, low, and moderate-income households.
b. According to the U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019) 44.6% of renters, and 27.4% of homeowners, in Campbell are cost burdened, spending more than 30% of their income on housing.
WHEREAS, the proposed amendments to Chapter 21.24 (Inclusionary Housing Ordinance)
of the Campbell Municipal Code include additional findings in Section 21.24.010 (Purpose and findings.) which are included herein by reference. WHEREAS, the proposed amendments would be consistent with the 2040 General Plan and
2023-2031 Housing Element of the City of Campbell including, but not limited to, the following: 2040 General Plan Goal LU-3: Employ creative approaches to providing a range of affordable
housing options in Campbell while protecting the character of established
neighborhoods.
LU-3.a: Implement the programs in the Housing Element in order to achieve the city’s housing goals.
2023-2031 Housing Element
City Council Ordinance No. PLN-2023-85 – Amending Chapter 21.24 (Inclusionary Housing Ord.) Page 2 of 3
Program H-1a: Inclusionary Housing Ordinance Implementation: Amend the
Inclusionary Housing Ordinance to offer developers a menu of options for
achieving affordability, adjusting the percentage of units required to be
affordable depending on the degree of affordability achieved (i.e., moderate-, low-, very low-, and extremely low income). These amendments could also
include:
• Initiating a nexus study to reevaluate increasing the affordable
housing in-lieu fee.
• Updating the inclusionary ordinance to require for-sale projects to
provide the same allocation of units available to lower-income and
very low-income units that is required for rental projects.”
• Modifying the In-Lieu Fee threshold to apply only to developments
of 5-9 units. Housing developments of 10 or more units would not be
allowed to substitute affordable units with in-lieu fees.
WHEREAS, the legislature of the State of California has, in Government Code Sections 65302, 65560 and 65800, conferred upon local governments the authority to adopt
regulations designed to promote the public health, safety and general welfare of its citizenry.
WHEREAS, the review and adoption of the proposed amendments is done in compliance with California Government Code Sections 65853 through 65857, which require a duly noticed public hearing of the Planning Commission whereby the Planning Commission shall provide
its written recommendation to the City Council for its consideration.
WHEREAS, adoption of the proposed Ordinance is considered a "project" under Section 15378(a)(1) of the California Environmental Quality Act (CEQA).
WHEREAS, the proposed Ordinance may be found exempt from environmental review under
Section 15061(b)(3) of the California Environmental Quality Act (CEQA) in that there is no possibility that the proposed changes to the City’s Municipal Code may have a significant effect on the environment.
WHEREAS, the legislature of the State of California has, in Government Code Sections
65302, 65560 and 65800, conferred upon local governments the authority to adopt regulations designed to promote the public health, safety and general welfare of its citizenry.
WHEREAS, the proposed amendments will not be detrimental to the public interest, health, safety, convenience, or general welfare of the city.
WHEREAS, the proposed amendments are internally consistent with other applicable
provisions of the Campbell Municipal Code and Zoning Code.
WHEREAS, in consideration of the adoption of the subject Ordinance, the City Council provided due consideration of all evidence presented and provided in the entire administrative record.
THEREFORE, the City Council of the City of Campbell does ordain as follows:
City Council Ordinance No. PLN-2023-85 – Amending Chapter 21.24 (Inclusionary Housing Ord.) Page 3 of 3
Section 1. Chapter 21.24 (Inclusionary Housing Ordinance) of the Campbell Municipal Code is hereby amended to read as set forth in Exhibit A-1 with underlining (underlining) indicating new text and strikeouts (strikeouts) indicating deleted text. Section 2. If any section, sentence, clause, phrase, word, or other provision of this
Ordinance is for any reason held to be unconstitutional or otherwise invalid, such holding shall not affect the validity of the remaining sections, sentences, clauses, phrases, words or other provisions of this Ordinance, or the validity of this Ordinance, shall stand notwithstanding the invalidity of any section, sentence, clause, phrase, word or other provision.
Section 3. The proposed Ordinance is exempt under Section 15061(b)(3) of the California Environmental Quality Act (CEQA) as there is no possibility that the proposed changes to the City’s Municipal Code may have a significant effect on the environment. Section 4. The City Council further finds and determines that the proposed Ordinance is consistent with the goals, policies, and actions of the 2040 General Plan and the 2023-2031 Housing Element. Section 5. That this Ordinance shall become effective thirty (30) days following its
passage and adoption and shall be published, or summary thereof, one time within fifteen (15) days upon passage and adoption in the Metro Silicon Valley, a newspaper of general circulation for the City of Campbell, County of Santa Clara.
PASSED AND ADOPTED this _______ day of ________________, 2024, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: APPROVED: Susan M. Landry, Mayor
ATTEST: Andrea Sanders, City Clerk
Exhibit A-1
Chapter 21.24 INCLUSIONARY HOUSING ORDINANCE
21.24.010 Purpose and findings.
A. The purpose of this Chapter is to enhance the public welfare by establishing policies which
facilitate the availability of housing affordable to a broad range of households with varying income
levels within the City of Campbell, meet the City’s regional share of housing needs, and
implement the goals and objectives of the General Plan and Housing Element.
B. The City Council desires to encourage the development of inclusionary units to be located upon
the same site as market rate residential development to provide for integration of lower income
households with households in market rate neighborhoods and to disperse Inclusionary Units
throughout the City where new residential development occurs.
C. The City's Housing Element recognizes that affordable housing is a critical component to the
City's economic and social health. Establishing policies which facilitate the availability of housing
affordable to a broad range of households with varying income levels within the City of Campbell
is consistent with and will implement the City’s Housing goals, policies, and programs for
Affordable Housing which include, but are not limited to, the following:
1. Goal 1: Improve Housing Affordability in Campbell – Encourage the Production of
Affordable Housing; and
2. Program H-1a (Inclusionary Housing Ordinance Implementation).
D. Providing affordable housing for new employees in lower income jobs locally (rather than leaving
those employees to obtain housing in lower cost areas far from Campbell employment centers
and transit corridors) helps minimize housing's contribution to greenhouse gas emissions and
locating housing to reduce vehicle miles traveled and auto dependency. If the increased demand
for affordable housing is not addressed within Campbell it will cause such housing to be built
elsewhere, in areas with lower land values that are far from city employment centers and transit
corridors, and the resulting commuting will cause increased traffic and transit demands and
consequent noise and air pollution.
E. If the increased demand for affordable housing is not addressed within Campbell it may also
impact economic growth in that businesses within the city may find it more difficult to attract and
retain the variety of workers that they need.
F. Establishing policies which facilitate the availability of housing affordable to a broad range of
households with varying income levels also implements policies of the State of California to: (1)
provide sufficient capacity for new housing affordable at all income levels necessary to
accommodate the State's future economic growth; and (2) by providing housing for lower income
workers, long commutes from less expensive housing markets can be avoided and thus
contribute to the implementing the Global Warming Solutions Act of 2006 and the Sustainable
Communities and Climate Protection Act of 2008.
G. State housing policy requires the City to assist in the development of adequate housing to meet
the needs of lower income households. There is a significant shortage of housing affordable to
lower income households, which will only increase as the finite number of residentially zoned
parcels within the city are purchased and developed for market rate residential developments.
This loss of residential land available for affordable housing is another impact of market rate
residential development.
H. The requirements of this Chapter are based on a number of factors including, but not limited to,
the City's long-standing commitment to economic diversity; the serious need for affordable
housing as reflected in local and State housing laws, regulations, and policies; the demand for
affordable housing created by the development of market rate housing; and the impact that the
lack of affordable housing production has on the health, safety, and welfare of the City's residents
including its impacts on traffic, transit and related air quality impacts, and the demands placed on
Created: 2022-12-01 08:36:01 [EST]
(Supp. No. 37)
Page 2 of 11
the regional transportation infrastructure. Establishing policies which facilitate the availability of
housing affordable to a broad range of households with varying income levels that are reasonably
related to the burdens created by new market-rate development on the City's need for affordable
housing will contribute to addressing impacts and fulfilling goals of the City and State of
California.
I. The City also desires to provide the residential development community with alternatives to
construction of the inclusionary units on the same site as the market rate residential development.
Therefore, Section 21.24.070 (Alternatives) includes a menu of options from which an applicant
may elect, in lieu of building affordable units within a residential project. Nothing in this Chapter
shall deem or be used to deem the compliance options in Section 21.24.070 (Alternatives),
including, but not limited to, the in lieu housing fee authorized pursuant to Section 21.24.70.A., as
an ad hoc exaction, as a mandated fee required as a condition to developing property, or as a fee
subject to the analysis in Building Industry Association of Central California v. City of Patterson
(5th Dist. 2009) 171 Cal. App. 4th 886.
J. The City has prepared a Nexus Study which shows that there is a reasonable relationship
between the purpose for which the in-lieu housing fees established by this Chapter are to be used
and the type of development projects on which the fees are imposed, and between the need for
affordable housing and market-rate development and between the amount of the fees and the
cost of the affordable housing units or portion of the units attributable to the development on
which the fees are imposed. The Nexus Study complies with the requirements of California
Government Code section 66001(A)(4) by establishing the reasonable relationship between the
need for affordable housing and the development of market-rate housing.
K. It is the intent of the City that the in-lieu housing fee established by this Chapter shall be
supplementary to any conditions imposed upon a market-rate housing project pursuant to other
provisions of the Municipal Code, the Subdivision Map Act, the California Environmental Quality
Act, and other State and local laws, which may authorize the imposition of project specific
conditions on development.
L. High housing costs relative to income can contribute to overcrowding which has been found to
contribute to impacts to public health, safety, and welfare according to the U.S. Department of
Housing and Urban Development’s 2007 report on “Measuring Overcrowding in Housing” and the
Center for Disease Control’s 2020 publication on “Health Effects of Housing.
M. The requirements of this Chapter are adopted pursuant to the City’s police power authority to
protect the public health, safety, and welfare. The requirements of this section are consistent with
Housing Element goals related to protecting the public welfare by fostering an adequate supply of
housing for persons at all economic levels and maintaining both economic diversity and
geographically dispersed affordable housing.
21.24.010 Findings.
The City Council finds that:
A. Housing prices and rents in the city of Campbell have increased at a significantly higher rate
than general wages. The lack of affordable housing in Campbell forces many residents to pay
a very high percentage of their income for housing or to commute considerable distances,
adding to air pollution and traffic congestion in Campbell and throughout Santa Clara County.
The lack of affordable housing has made it more difficult to recruit workers from out of the area,
in general, especially workers in lower-paying jobs, potentially affecting the economic vitality of
the Campbell. New housing developments do not, to any appreciable extent, provide housing
affordable to low- and moderate-income households.
B. Continued new housing developments which do not include housing for low- and moderate-
income households will serve to further aggravate the current shortage of affordable housing
by reducing the small remaining supply of undeveloped land.
Created: 2022-12-01 08:36:01 [EST]
(Supp. No. 37)
Page 3 of 11
C. The City Council approved the City's housing element of the general plan which includes a
goal to encourage the provision of housing affordable to a variety of household income levels
(Goal H-3).
D. Implementation of the inclusionary ordinance is a necessary part of the City's efforts to meet its
general plan housing element goals and objectives and its region wide affordable housing
obligations. Through the inclusionary ordinance, at least fifteen percent of the units in a new
housing development of ten or more units will be price or rent restricted as units for low- and
moderate-income households. In some circumstances, developers will be offered an option of
providing affordable units off-site or payment of an in-lieu housing fee.
21.24.020 Purpose of chapter.
The purpose of this chapter is to further the City's efforts to require housing available to very low-
income, low-income and moderate-income households. The city's general plan implements the
established policy of the State of California that each community should foster an adequate supply of
housing for persons at all economic levels.
Providing the affordable units required by this chapter will help to ensure that part of Campbell's
remaining developable land is used to provide affordable housing. An economically balanced community
is only possible if part of the new housing built in the City is affordable to households with limited
incomes. Requiring builders of new housing to include some housing affordable to households at a range
of incomes is fair, not only because new development without affordable units contributes to the shortage
of affordable housing, but also because zoning and other ordinances concerning new housing should be
consistent with the community's goal to foster an adequate supply of housing for persons at all economic
levels. In general, affordable units within each housing development will serve the goal of maintaining an
economically balanced community.
The inclusionary housing ordinance is required by the council to promote and protect the public
health, safety, and general welfare while preserving and enhancing the aesthetic quality of the City.
(Ordinance 2060, December 2005 Code Update, Title 21 Zoning, 21.01.030 Purpose).
21.24.020 Applicability.
This chapter shall not apply to rental projects or for-sale projects that are developed in accordance
with, and subject to, a recorded governmental agency deed restriction or regulatory agreement that
imposes affordable rent, occupancy, and eligibility restrictions or affordable ownership cost and sale price
restrictions with associated eligibility and occupancy restrictions on all residential units in the
development, except for manager's units. Such deed restriction or regulatory agreement must be
recorded against the property, be binding on successors in interest for at least the same duration as
required by this chapter, and be executed by the property owner and any of the following entities or
agencies: the City of Campbell, the County of Santa Clara, the California Tax Credit Allocation
Committee, the issuer of tax-exempt bonds used to finance the residential development, the California
Department of Housing and Community Development or any other State of California agency, and the
U.S. Department of Housing and Urban Development or any other federal agency.
21.24.030 Definitions.
As used in this chapter, the following terms shall have the meanings set forth below:
"Appliances " means refrigerators, stovetops, ranges, microwaves, air conditioners, furnaces, heat
pumps, electric vehicle chargers, whole house fans, and battery storage systems.
"Affordable ownership cost" means average monthly housing costs during the first calendar year of
a household's occupancy, as determined by the Ccity, including mortgage payments, loan insurance fees,
if any, property taxes, reasonable allowances for utilities and property maintenance and repairs,
homeowners insurance and homeowners association dues, if any, that is affordable to a low- or
moderate- income household, or at even lower levels of affordability, adjusted for household size. which
do not exceed the following:
1. For lower-income households: one-twelfth of thirty percent of seventy percent of area median
income, adjusted for assumed household size based on presumed occupancy levels of one person in a
studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit and one
additional person for each additional bedroom thereafter.
2. For moderate-income households: one-twelfth of thirty-five percent of one hundred ten percent of
area median income, adjusted for assumed household size based on presumed occupancy levels of one
person in a studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit
and one additional person for each additional bedroom thereafter.
"Affordable rent" means monthly rent, including utilities and all fees for housing services, which do
not exceed thirty percent (30%) of the gross monthly income adjusted for household size.the following:
1. For lower-income households: one-twelfth of thirty percent of sixty percent of area median
income, adjusted for assumed household size based on presumed occupancy levels of one person in a
studio apartment, two persons in a one bedroom unit, three persons in a two bedroom unit, and one
additional person for each additional bedroom thereafter.
2. For very low-income households: one-twelfth of thirty percent of fifty percent of area median,
adjusted for assumed household size based on presumed occupancy levels of one person in a studio
apartment, two persons in a one bedroom unit, three persons in a two bedroom unit, and one additional
person for each additional bedroom thereafter.
"Affordable unit(s)" means one or more living units which are required under this chapter to be
rented at affordable rents or available at an affordable housing cost to specified households.
"Applicant" means a person or entity who applies for a residential project and, if the applicant does
not own the property on which the residential project is proposed, also means the owner or owners of the
property.
"Area median income" means area median income for Santa Clara County as published pursuant to
California Code of Regulations, Title 25, Section 6932 (or its successor provision).
"Construction cost index" means the California Construction Cost Index (CCCI) published by the
California Department of General Services, Real Estate Service DivisionEngineering News Record San
Francisco Building Cost Index. If that index ceases to exist, the community development director shall
substitute another construction cost index which in his or her judgment is as nearly equivalent to the
original index as possible.
"Development project " means any project undertaken for the purpose of development.
“Development project” includes a project involving the issuance of a permit for construction or
reconstruction but not a permit to operate. “Development project” does not include any ministerial projects
proposed to be carried out or approved by public agencies.
"Eligible household" means a household whose household income does not exceed the maximum
specified in Section 21.24.040 (General requirements.) of this chapter for a given affordable unit.
"Extremely low-income household" means a household whose household income does not exceed
30 percent of the area median income in Santa Clara County,the extremely low-income limits applicable
to Santa Clara County, as published and periodically updated by the State Department of Housing and
Community Development pursuant to Section 50105 of the California Health and Safety Code.
"First approval" means the first of the following approvals to occur with respect to a residential
project: building permit, planned development permit, tentative parcel map, tentative subdivision map,
conditional use permit, site and architectural review permit, or other discretionary city land use approval.
"For-sale project" means a residential project, or portion thereof, which is intended to be sold to
owner-occupants upon completion.
"Household income" means the combined adjusted gross income for all adult persons living in a
living unit as calculated for the purpose of the Section 8 Program under the United States Housing Act of
1937, as amended, or its successor.
"Inclusionary housing agreement" means an agreement between the city and an applicant,
governing how the applicant shall comply with this chapter.
"Livable area" means the total square footage of the interior of all dwelling units within a residential
development that a tenant can occupy and use as measured from the interior face of the exterior walls.
This area specifically includes all living spaces, kitchens and bathrooms, and usable closet and storage
spaces within a dwelling unit. This definition specifically excludes common areas such as hallways,
elevators, stairwells, mailrooms, multi-use rooms, indoor pool rooms, mechanical rooms, lobbies, parking
areas, and areas shared with a non-residential use in a mixed-use development.
"Living unit" means one or more rooms designed, occupied, or intended for occupancy as separate
living quarters, with cooking, sleeping, and bathroom facilities. For the purposes of this Chapter,
Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) shall not count as living
units.
"Lower-income" means a household whose household income is less than eighty percent (80%) of
the area median income in Santa Clara County, as published and periodically updated by the California
Department of Housing and Community Development.
"Lower-income household" means a household whose household income is greater than fifty
percent (50%) and does not exceed eighty percent (80%) of the area median income in Santa Clara
County, as published and periodically updated by the California Department of Housing and Community
Development pursuant to Section 50079.5 of the California Health and Safety Code. does not exceed the
lower -income limits applicable to Santa Clara County, as published and periodically updated by the
California Department of Housing and Community Development pursuant to Section 50079.5 of the
California Health and Safety Code.
"Manager’s unit" means a housing unit within a rental housing development that is designated for
occupancy by a property manager or on-site staff responsible for the management and maintenance of
the property.
"Market rate unit" means a housing unit or the legal lot for such unit offered on the open market at
the prevailing market rate for purchase or rental.
"Ministerial project " means a project for which the governmental agency’s action involves only the
application of fixed, objective standards or criteria, without personal judgement or discretion. Ministerial
projects do not require discretionary approval by a public agency.
"Moderate-income household" means a household whose household income is greater than eighty
percent (80%) and does not exceed one hundred twenty percent (120%) of the area median income in
Santa Clara County, as published and periodically updated by the California Department of Housing and
Community Development pursuant to Section 50093 of the California Health and Safety Code.
"Nexus Study" means the fee study entitled: “Affordable Housing Nexus Study” prepared by BAE
Urban Economics, dated July 15, 2024, approved by the City Council on August 20, 2024, and on file with
the City Clerk.
"Pending project" means a land use application that has been accepted by the community
development department as complete before the effective date of the ordinance codified in this chapter
shall be processed in compliance with the requirements in effect when the application was accepted as
complete by the city.
"Rental project" means a residential project, or portion thereof, which is intended to be rented to
tenants upon completion.
"Residential project" means, any parcel map, subdivision map, conditional use permit, site and
architectural review permit, building permit, or other city approval, which authorizes ten or more living
units or residential lots, or living units and residential lots with ten or more in combination, exclusive of
any proposed accessory dwelling units. In order to prevent evasion of the provisions of this chapter,
contemporaneous construction of ten or more living units on a lot, or on contiguous lots for which there is
evidence of common ownership or control, even though not covered by the same city land use approval,
shall also be considered a residential project. Construction shall be considered contemporaneous for all
units which do not have completed final inspections for occupancy and which have outstanding, at any
one time, any one or more of the following: parcel map, subdivision map, or other discretionary city land
use approvals, or building permits, or applications for such an approval or permits. A pending project shall
not be considered a residential project under this chapter.
"Very low-income household" means a household whose household income is greater than thirty
percent (30%) and does not exceed fifty percent (50%) of the area median income in Santa Clara County
does not exceed the very low-income limits applicable to Santa Clara County, as published and
periodically updated by the State Department of Housing and Community Development pursuant to
Section 50105 of the California Health and Safety Code.
21.24.040 General requirements.
A. Percentage requirement. At least fifteen percent of all units in a residential project shall be made
available at affordable rents or affordable ownership cost as prescribed in this section and shall be
approved and completed not later than the times prescribed in Section 21.24.050 (Time
performance.)21.20.040 of this title, unless an alternative mode of compliance requirement is
approved as set forth in Section 21.24.070 (Alternatives.),21.24.060 of this chapter. When the
percentage requirement results in a fraction of units, the owner of the property shall construct the
next higher whole number of affordable units where the fraction is 0.5 or greater and shall construct
the next lower whole number of affordable units where the fraction is less than 0.5. For fractions of
units in residential projects, where the fraction is 0.5 or greater, the owner of the property shall
construct the next higher whole number of affordable units, and where the fraction is 0.49 or less,
the owner shall construct the next lower whole number of affordable units.
B. Provision of affordable units. Where affordable and market rate units are provided in a residential
project, the affordable units, irrespective of income level, shall be indistinguishable, in terms of
building materials, architectural features, lighting fixtures, type and number of appliances, and
landscaping areas from other residential units in the residential project. Further, affordable units,
irrespective of income level, shall have the same access to parking facilities, project amenities, and
recreational areas as other residential units in the residential project. Exceptions. The community
development director may grant exceptions to the requirements of this chapter to residential projects
located within the redevelopment project area, upon a finding that such exception is necessary to
effective implementation of the redevelopment plan, while maintaining overall compliance with
affordable housing production requirements set forth in Health and Safety Code Section 33413.
C. Location and design distribution of affordable units. Where affordable and market rate units are
provided in a residential project, the All affordable units shall be reasonably distributed proportionally
to the total units in the residential project, inclusive of any density bonus units, dispersed throughout
the project in terms of their assignment to rental and ownership units, and their placement in
buildings, floors, and model types (accounting for floor plans, bedroom count, and unit sizes) where
different buildings, floors, or model types are present in the residential project.and shall be
comparable to the design of the market-rate units in terms of distribution of model types, number of
bedrooms, appearance, materials and finished quality of the market-rate units in the project. There
shall not be significant identifiable differences between affordable units and market-rate dwelling
units which are visible from the exterior of the dwelling units and the size and design of the dwelling
units shall be reasonably consistent with the market-rate units in the development. Affordable units
shall have the same access to project amenities and recreational facilities as market rate units.
D. For-sale projects. Affordable units which are constructed in for-sale projects for owner-occupancy
shall be sold at affordable ownership cost to lower-income households and moderate-income
households. Of these affordable units in for-sale projects, forty percent of the required fifteen
percent, or six percent of the total units in the residential project, shall be offered at affordable
ownership costs exclusively to lower-income households, provided that where this requirement for
lower-income units would result in a fraction of a lower-income unit, the number of lower-income
units shall be rounded up and the number of moderate-income units which need not be lower-
income units shall be rounded down. For determining compliance with the affordability requirements
of this section, units provided at even lower income levels than those specified shall be found to
satisfy the requirement. The sale price of units shall be based on the methodology established by,
and on file with, the Community Development Department consistent with the requirements of this
Chapter.
E. Rental projects. The affordable units which are constructed in rental projects shall be offered for rent
at affordable rents to lower-income households and very low-income households. Of these
affordable units in rental projects, forty percent of the required fifteen percent, or six percent of the
total units in the residential project, shall be offered at affordable rents exclusively to very low-
income households, provided that where this requirement for very low-income units would result in a
fraction of a very low-income unit, the number of very low-income units shall be rounded up and the
number of lower-income units which need not be very low-income units shall be rounded down. For
determining compliance with the affordability requirements of this section, units provided at even
lower income levels than those specified shall be found to satisfy the requirement. The rental rates
of units shall be based on the methodology established by, and on file with, the Community
Development Department consistent with the requirements of this Chapter.
F. Priority for rental or purchase of units. Preference in the rental or purchase of affordable units shall
be given, first to income eligible lower income households of protected units displaced by demolition
for any required replacement units as provided for by Section 66300.6 of the California Government
Code, second (for up to ten percent of all affordable units subject to this chapter) to income eligible
employees of the City of Campbell, thirdsecond to income eligible existing Campbell residents, and
fourththird to income eligible persons employed within the city limits of the City of Campbell.
21.24.050 Time performance.
A. Application requirements. An application for first approval of a residential project will not be deemed
complete until the applicant has submitted plans and proposals which demonstrate the manner in
which the applicant proposes to meet the requirements of this chapter, including any plans for the
construction of on-site units pursuant to Section 21.24.040 (General requirements.) of this chapter or
the applicant's selection of an alternative modemeans of compliance pursuant to Section 21.24.070
(Alternatives.) of this chapter.
B. Conditions. Conditions to carry out the purposes of this chapter shall be imposed on the first
approval for a residential project. Additional conditions may be imposed on later city approvals or
actions, including without limitation planned development permits, tentative parcel maps, tentative
subdivision maps, conditional use permits, housing development permits, site and architectural
review permits, or building permits. The conditions of approval included with the first approval of the
residential project shall further provide that prior to the recordation of the parcel map or final map in
the case of subdivisions and or prior to the issuance of building permits in the case of all other land
use permits to which this chapter applies, the applicant shall enter into an inclusionary housing
agreement acceptable to the community development director that contains specific requirements
implementing the condition of approval including, but not limited to, as applicable, the number of
affordable units, the level(s) of affordability, location and type of affordable units, timing of
construction of affordable units in relation to the construction of the market rate units contained in
the development, and preferences given in selecting occupants, and amount of the in-lieu fee, if any.
The inclusionary housing agreement may be amended by the parties, provided the amendment is
consistent with the condition of approval imposed as part of the first approval and the then-existing
city approvals. If such proposed amendment is minor or technical in nature, the community
development director shall have authority to approve or disapprove the amendment on behalf of the
city. If such proposed amendment makes a substantive or material change to the inclusionary
housing agreement, such amendment shall be effective only if, following notice and hearing and
such other procedures as may be required by law, approved by the city agency that gave the first
approval on the project.
C. No building permit shall be issued for any market rate unit until the applicant has obtained permits
for affordable units sufficient to meet the requirements of Section 21.24.040 (General requirements.)
of this chapter, or received approval of an alternative requirement of Section 21.24.070
(Alternatives.) of this chapter. No final inspection for occupancy for any market rate unit shall be
completed until the applicant has constructed the affordable units required by Section 21.24.040
(General requirements.) of this chapter, or completed corresponding alternative performance under
Section 21.24.070 (Alternatives.) of this chapter. The time requirements set forth in this subsection
for issuance of building permits for market rate units and for final inspections for occupancy for
market rate units may be modified to accommodate phasing schedules, model variations, or other
factors in a residential project, if the city determines this will provide greater public benefit and an
inclusionary housing agreement acceptable to the community development director or the
Community Development Director's designee pursuant to subsection B of this section so provides.
21.24.060 Continued affordability and city review of occupancy.
A. Term of affordability—For-sale projects. A resale restriction, covenant, deed of trust and/or other
documents acceptable to the community development director or the director's designee, shall be
recorded against each affordable owner-occupied unit. These documents shall, in the case of
affordable units which are initially sold, be for a term of forty-five years and shall be renewed at the
change of each title for a period of forty-five years for a residential project submitted less than one-
year from the effective date of this Chapter. For a residential project submitted one year or more
after the effective date of this Chapter, the term shall be fifty-five years and shall be renewed at the
change of each title for a period of fifty-five years. The resale restriction, or other documents
authorized by this subsection, and any change in the form of any such documents which materially
alters any policy in the documents, shall be approved by the community development director or his
or her designee prior to being executed with respect to any residential project.
B. Term of affordability—Rental projects. A regulatory agreement, covenant, deed of trust, and/or other
documents acceptable to the Community Development Director or the Director's designee, shall be
recorded against each unit/complex for residential projects containing affordable rental units. These
documents shall, in the case of affordable units which are rented, be for a term of fifty-five years and
shall be renewed at the change of each title for a period of fifty-five years. The regulatory agreement
and other documents authorized by this subsection, shall run with the property and not be affected
by the sale of the property or units in the project. The regulatory agreement and other documents
authorized by this subsection, and any change in the form of any such document which materially
alters any policy in the document, shall be approved by the Community Development Director or his
or her designee prior to being executed with respect to any residential project.
C. Eligibility requirements. No household shall be permitted to begin occupancy of an affordable unit
unless the city or its designee has approved the household's eligibility. If the city or its designee
maintains a list of, or otherwise identifies, eligible households, initial and subsequent occupants of
affordable units shall be selected first from the list of identified households, to the maximum extent
possible, in accordance with rules approved by the community development director or his or her
designee.
21.24.070 Alternatives.
An applicant may elect, in lieu of building affordable units within a residential project, to satisfy the
requirements of this chapter by one of the following alternative modes of compliance, provided that the
applicant includes such election in its application for the first approval of the residential project and that
the criteria stated in the relevant subsection below are satisfied.
A. Rental units in for-sale projects. Where owner-occupied affordable units are required by
Section 21.24.040of this chapter, instead construct as part of the residential project the same
or a greater number of rental units, affordable to lower-income households and very low-
income households in the proportions and at the rents as prescribed in Section 21.24.040(E) of
this chapter. Substitution of rental units shall be allowed under this subsection only if either: (1)
the rental units are at least equal in number of bedrooms to the owner-occupancy units which
would have been allowed, or (2) any comparative deficiency in bedrooms is compensated for
by additional units and/or affordability to households with lower incomes.
AB. Off-site construction. Construct, or make possible construction by another developer of, units
not physically contiguous to the market-rate units (or units that are physically contiguous to the
market-rate units if the City determines this will provide greater public benefit and if an
inclusionary housing agreement acceptable to the Community Development Director or his or
her designee pursuant to Section 21.24.050(B) (Conditions.) of this chapter so provides) and
equal or greater in number to the number of affordable units required under Section 21.24.040
(General requirements.) of this chapter. Off-site construction pursuant to this subsection shall
be approved only if:
1. Approval has been secured for the off-site units not later than the time the residential
project is approved and completion of the off-site units is secured by a requirement that
final inspections for occupancy for the related market-rate units be completed after those
for the affordable units, provided that the time requirements set forth in this subsection for
final inspections for occupancy for market-rate units may be modified to accommodate
phasing schedules, model variations, financing requirements, or other factors in a
residential project for the off-site units, if the City determines this will provide greater
public benefit, and if an inclusionary housing agreement acceptable to the Community
Development Director or his or her designee pursuant to Section 21.24.050(B)
(Conditions.) of this chapter so provides;
2. The off-site units will be greater in number, larger or affordable to households with lower
incomes than would otherwise be required in Section 21.24.040 (General requirements.)
of this chapter;
3. Financing or a viable financing plan is in place for the off-site units;
4. In the event the off-site units receive any public assistance, the developer of the
residential project will contribute to the off-site units economic value equivalent to the
value of making on-site units in the developer's residential project affordable; and
5. The City may require that completion of off-site units shall be further secured by the
developer's agreement to pay an in-lieu fee in the amount set by City Council fee
resolution or other action of the City Council due under subsection D of this section in the
event the off-site units are not timely completed.
BC. Land dedication. Dedicate without cost to the city, a lot or lots within or contiguous to the
residential project, sufficient to accommodate at least the required affordable units for the
residential project. An election to dedicate land in lieu of compliance with other provisions of
this chapter shall be allowed only if:
1. The value of the lot or lots to be dedicated is sufficient to make development of the
otherwise required affordable units economically feasible, and financing or a viable
financing plan is in place for at least the required number of affordable units; and
2. The lot or lots are suitable for construction of affordable housing at a feasible cost, served
by utilities, streets and other infrastructure, there are no hazardous material or other
material constraints on development of affordable housing on the lot or lots, and land use
approvals have been obtained as necessary for the development of the affordable units
on the lot or lots.
D. In-lieu housing fee. Where a residential project has an approved density of six or fewer units
per acre, the applicant may elect to pay an in-lieu housing fee, instead of developing the
affordable units required in Section 21.24.040 of this chapter, pursuant to the requirements set
forth below in this subsection.
1. The initial in-lieu fee schedule shall be set by City Council fee resolution or other action of
the City Council so that the fee amounts are not greater than the difference between: (a)
the amount of a conventional permanent loan that an inclusionary unit would support
based on the affordable rent or sales price for the required inclusionary unit; and (b) the
estimated total development cost of prototypical inclusionary units.
2. The City Council may annually review the fees authorized by this subsection D of this
section by resolution, and may, based on that review, adjust the fee amount. For any
annual period during which the City Council does not review the fee authorized by this
subsection, fee amounts shall be adjusted once by the community development director
or his or her designee based on the construction cost index.
3. In-lieu fees shall be calculated based on the fee schedule in effect at the time the fee is
paid.
4. In-lieu fees shall be paid prior to issuance of building permits. If building permits are
issued for only part of a residential project, the fee amount shall be based only on the
number of units then permitted.
C. Substitution of units. The applicant may elect to provide additional affordable units, instead of
developing the affordable units required in Section 21.24.040 (General requirements.) of this
chapter, as set forth below:
1. Very Low-Income Units: The applicant may substitute required very low-income housing
units at a ratio of one to two for low-income units or at a ratio of one to four for moderate
income units.
2. Low-Income Units: The applicant may substitute required low-income housing units at a
ratio of one to two for moderate income units.
21.24.080 Calculation and uUse of in-lieu housing fees.
A. All in-lieu fees collected under this chapter shall be deposited into a separate account to be
designated the City of Campbell housing trust fund.
B. The in-lieu fees collected under this chapter and all earnings from investment of the fees shall
be expended exclusively to provide or assure continued provision of affordable housing in the
city through acquisition, construction, development assistance, rehabilitation, financing, rent
subsidies or other methods, and for costs of administering programs which serve those ends.
The housing shall be of a type, or made affordable at a cost or rent, for which there is a need in
the cCity and which is not adequately supplied in the cCity by private housing development in
the absence of public assistance.
C. Fee calculation method. The fee shall be calculated as follows:
Fee × Total Affordable Units Required × Livable Area = Total Due
D. Fees due. In-lieu fees shall be calculated based on the fee schedule:
a. In effect at the time the fee is paid for a ministerial project application;
b. The date an application was deemed complete for a development project application;
or
c. The date the complete preliminary application was submitted for a project submitted
pursuant to California Government Code Section 65941.1.
If a permit meets more than one of the above criteria, the fee shall be based on the fee
schedule in effect on the date that results in the lowest fee from the list above.
21.24.090 Waiver of requirements.
Notwithstanding any other provision of this chapter, the requirements of this chapter shall be waived,
adjusted or reduced if the applicant shows that there is no reasonable relationship between the impact of
a proposed residential project and the requirements of this chapter, or that applying the requirements of
this chapter would take property in violation of the United States or California Constitution or otherwise
result in an unconstitutional application of this chapter. To receive a waiver, adjustment or reduction
under this section, the applicant must file a written request together with the development application(s)
when applying for a first approval for the residential project, and/or as part of any appeal which the City
provides as part of the process for the first approval. The written request shall provide substantial
evidence showing that there is no reasonable relationship between the impact of a proposed residential
project and the requirements of this chapter, or that applying the requirements of this chapter would take
property in violation of the United States or California Constitution or otherwise result in an
unconstitutional application of this Chapter. The City may assume that: (a) the applicant will provide the
most economical inclusionary units feasible meeting the requirements of this Chapter; and (b) the
applicant is likely to obtain housing subsidies when such funds are reasonably available. The waiver,
adjustment, or reduction may be approved only to the extent necessary to avoid an unconstitutional
result, after adoption of written findings, based on substantial evidence, supporting the determinations
required by this section.
21.24.100 Enforcement.
A. The City Council may adopt guidelines, by resolution, to assist in the implementation of all aspects
of this Chapter.
B. No permit, license, subdivision approval or map, or other approval or entitlement for a residential
project shall be issued, including without limitation a final inspection for occupancy or certificate of
occupancy, until all requirements applicable to the residential project at such time pursuant to this
Chapter have been satisfied.
C. The City Attorney shall be authorized to enforce the provisions of this Chapter and all inclusionary
housing agreements, regulatory agreements, resale controls, deeds of trust, or similar documents
placed on affordable units, by civil action and any other proceeding or method permitted by law.
D. Failure of any official or agency to fulfill the requirements of this Chapter shall not excuse any
applicant or owner from the requirements of this Chapter.
E. The remedies provided for in this Chapter shall be cumulative and not exclusive and shall not
preclude the City from any other remedy or relief to which it otherwise would be entitled under law or
equity.
21.24.110 Phased projects.
A. Purpose. This section serves to ensure that each development phase of a multi-phase development
project contributes its fair share of affordable units and maintains consistency with the overall
project’s requirements.
B. Required Affordable Units by Project Phase. Each phase of a development project must provide at
least as many affordable units, by income level, as would be required if that phase, along with any
previously completed project phase(s), were completed independently from the rest of the project.
C. Building Permit Final. No development phase of a project shall receive a building permit final until all
affordable units required by that phase of the project are completed.
21.24.120 Severability.
If any provision or clause of this Chapter or the application thereof is held to be invalid, such
invalidity shall not affect the other provisions or applications of this Chapter which can be given effect
without the invalid provision or application, and to this end, the provisions of this Chapter are declared to
be severable.
Resol 4719 - Inclusionary
Final Audit Report 2024-09-09
Created:2024-09-09
By:Nina Comcai (ninac@campbellca.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAIJHHwAQrsokDfpBWSC5lcRJoxXHo6Dbm
"Resol 4719 - Inclusionary" History
Document created by Nina Comcai (ninac@campbellca.gov)
2024-09-09 - 7:30:05 PM GMT
Document emailed to Alan Zisser (alanzisser@gmail.com) for signature
2024-09-09 - 7:30:11 PM GMT
Document emailed to Rob Eastwood (robe@campbellca.gov) for signature
2024-09-09 - 7:30:11 PM GMT
Email viewed by Rob Eastwood (robe@campbellca.gov)
2024-09-09 - 8:13:02 PM GMT
Document e-signed by Rob Eastwood (robe@campbellca.gov)
Signature Date: 2024-09-09 - 8:13:20 PM GMT - Time Source: server
Email viewed by Alan Zisser (alanzisser@gmail.com)
2024-09-09 - 8:25:33 PM GMT
Document e-signed by Alan Zisser (alanzisser@gmail.com)
Signature Date: 2024-09-09 - 8:31:34 PM GMT - Time Source: server
Agreement completed.
2024-09-09 - 8:31:34 PM GMT