HomeMy WebLinkAboutCC Ordinance 2337 - Amending Chapter 21.24 and 21.14 (Overlay/Combining Districts)ORDINANCE NO.2337
BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CAMPBELL AMENDING CHAPTER 21.24 (INCLUSIONARY
HOUSING ORDINANCE) AND CHAPTER 21.14
(OVERLAY/COMBINING DISTRICTS) OF THE CAMPBELL
MUNICIPAL CODE TO FACILITY APPROVAL OF HOUSING
DEVELOPMENT PROJECTS AND TO CLARIFY RELATED
REGULATORY REQUIREMENTS. FILE NO. PLN-2025-135.
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 (Inclusionary Housing
Ordinance) and Chapter 21.14 (Overlay/Combining Districts) of the Campbell Municipal
Code and Chapter 21.14 (Overlay/Combining Districts) to facilitate approval of housing
development projects and to clarify related regulatory requirements.
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
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:
Section 1. Chapter 21.24 (Inclusionary Housing Ordinance) of the Campbell
Municipal Code is hereby amended to read as set forth in Exhibit A with underlining
(underlining) indicating new text and strikeouts (triL ) indicating deleted text.
Section 2. Section 21.14.070.C.4. (Mixed -use development.) of the Campbell
Municipal Code is hereby amended to read as follows with underlining indicating new
text and strikeout's (stfikeset) indicating deleted text:
4. Mixed -use development. Where the City's adopted Form -Based Zone Map
designates a "Tier 1" ground -floor non-residential requirement, the project must
adhere to all corresponding regulations outlined in the adopted Multi -Family
Development and Design Standards, established in accordance with Campbell
Municipal Code Section 21.07.030 (Multi -Family Development and Design
Standards Document and Form -Based Zone Map adopted). This eligibility
standard shall not apply to housing development projects that meet the criteria of
Government Code Section 65915(b)(1)(G) and are located outside of the
"Downtown Development Plan" boundary depicted on General Plan Figure LU-2
iSpecial Planning Areas); and
Section 3. Section 21.14.070.D.1. (Increased density bonus.) of the Campbell
Municipal Code is hereby amended to read as follows with underlining indicating new
text and strikeouts (#key ) indicating deleted text:
Increased density bonus. The following density bonuses shall be offered to
projects which provide a greater percentage of very -low, low-, or moderate -income
housing units, by category, than otherwise required by State Density Bonus Law
but less than required to qualify for an additional density bonus under state law. In
no case shall the combination of the density granted under this Section and any
other law result in a total density bonus that is greater than seventy percent except
for bonus unit granted for providing small-scale housing units in accordance with
Campbell Municipal Code Section 21.20.060.B.3. (Density bonus for providing
small-scale housing units). Further, density bonuses provided for by this Section
may not be combined across income categories and shall be calculated consistent
with Campbell Municipal Code Section 21.20.050.A (Number of units) excepting
that for Step 2 - the corresponding percentage density bonus shall be calculated
based on the values indicated in the tables below.
Section 4. Section 21.14.070.D.3. (Extended permit approval.) of the Campbell .
Municipal Code is hereby amended to read as follows with underlining indicating new
text and strikeouts (sti;keeW) indicating deleted text:
3. Extended permit approval. Projects qualifying for an increased density bonus of
any amount, in accordance with CMC Section 21.14.070.D.1., shall be granted a
+hrh, five-year permit approval for the first approval of all land use entitlements
permits. The permit approval period of post -entitlement permits, such as building
permits, and/or land use entitlements granting subsequent extensions of approval,
and/or modifications to the first land use approval, shall not be extended as an
incentive of this Section.
Section 5. 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 6. 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 7. 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 8. 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 2nd day of December, 2025, by the following roll
call vote:
AYES: Councilmembers: Bybee, Hines, Scozzola, Furtado, Lopez
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
APPROVED
ATTEST: 6zzkla ;nlo
Andrea San ers, City Clerk
Exhibit A
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.
'Ord. No. 2318, § 1(Exh. A), adopted Sep. 3, 2024, repealed the former Ch. 21.24, §§ 21.24.010-21.24.100, and
enacted a new Ch. 21.24 as set out herein. The former Ch. 21.24 pertained to similar subject matter and
derived from Ord. 2074, Att. 3 (part), adopted 2006; Ord. No. 2206, § 14, adopted Aug. 2, 2016; Ord. No.
2252, § 20, adopted Nov. 19, 2019; Ord. No. 2293, § 1(Exh. B), adopted May 2, 2023.
Page 1 of 19
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 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.
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.C., 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
Page 2 of 19
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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
21.24.030 Definitions.
As used in this chapter, the following terms shall have the meanings set forth
below:
Page 3 of 19
"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 city, 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.
"Affordable rent" means monthly rent, including utilities and all fees for housing
services, which do not exceed thirty percent of the gross monthly income adjusted for
household size.
"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
Division. 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.
"Common ownership" means real property owned or controlled by the same
person, persons, or entity, or by separate entities in which any shareholder, partner,
member, or family member of an investor of the entity owns ten percent 00%) or more
of the interest in the real property."
"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.
"Evidence of common ownership" includes, but is not limited to, a contract,
covenant, easement, lease, license, or similar document that either:
(a) vests majority control over the management, use, development, or transfer of an
interest in one or more contiguous lots in Common Ownership that have majority control
Page 4 of 15
over the management, use, development, or transfer of an interest in another
contiguous lot; or
(b) aligns the management, use, development, or transfer of an interest in one or
more contiguous lots with the management, use, development, or transfer of an interest
in another contiguous lot all in Common Ownership, or makes the management, use,
development, or transfer of an interest in one or more contiguous lots dependent on the
management, use, development, or transfer of an interest in another contiguous lot all in
Common Ownership.
Exception: Notwithstanding the foregoing, lots shall not be deemed to be in
common ownership where the property owner(s) submit a sworn affidavit, in a form
acceptable to and approved by the City Attorney, demonstrating to the City's
satisfaction that the lots are not subject to common ownership or control as otherwise
defined by this section.
"Extremely low-income household" means a household whose household income
does not exceed thirty percent of the area median income in 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.
"Fee Satisfied Affordable Unit Obligation" means any affordable housing unit
obligation to be satisfied by payment of an in -lieu housing fee in accordance with
Campbell Municipal Code Section 21.24.070.C. (In -Lieu Fee) before application of the
requirement to construct the next higher whole number of affordable units.
"First approval" means the first of the following approvals to occur with respect to a
residential project: building 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.
"Initial Affordable Unit Obligation " means the total calculated affordable housinq
unit obligation of a residential protect as required by Section 21.24.040 (General
requirements.) before application of the requirement to construct the next higher whole
number of affordable units.
"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,
Page 5 of 15
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 of the area median income in Santa Clara County, as published and periodically
updated by the California Department of Housing and Community Development.
"Low-income household" means a household whose household income is greater
than fifty percent and does not exceed eighty percent 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.
"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 and does not exceed one hundred twenty percent 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.
"Rental project" means a residential project, or portion thereof, which is intended to
be rented to tenants upon completion.
"Residential project" has tNe distinnt Me-anings depending en the date oappliGation submittal as fellows-.L
1. For a resudential ppajeGt submitted less thaR ene yeaF after the effe--tive date A-f
"Residential
n
approval, means, any paFGel Fnap, subdivision map, Genditional
use peFmit, site ai;d- arrWhiter--tural Feview permit, b0ding permit, er other dity
whiGh autheFizes ten or more living units or Fesidential lots, or living units and Fesidential
„nits In eide.er Fo Prevent evasion Of the Provisions of this nhapter oontempeFaneeu
G ORStFUGtion of Fen er more living „nits on a In+ or on oontig„o„s lots for Whioh there is
Page 6 of 15
e��aenne of nemrvmen Awnesh�in er nentrel even th�h RnOt G ered she same nit y
land use
i
ry
far ennUnannv and Whinh have outstanding �I any one Time any ene er mere of the
, ,
paFGel map, subdivision rnap, oF 9theF diGGFetienwy Gity land use approvals, G
e .
7 Car a resideRtia�ejcn�bmit=ed one-year nr mere after of the effeGtive dat of
this Cha;ter"Residential prej "-means, any parcel map, subdivision map, conditional
use permit, site and architectural review permit, building permit, or other city approval,
which authorizes five or more living units or residential lots, or living units and residential
lots with five 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 five 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.
3-"Very low-income household" means a household whose household income is
greater than thirty percent and does not exceed fifty percent of the area median
income in 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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
21.24.040 General requirements.
A. Percentage requirement. At least fifteen percent of all living units, excluding any
density bonus units and accessory dwelling 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.), unless an alternative mode of
compliance is approved as set forth in Section 21.24.070 (Alternatives.), 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.
Page 7 of 15
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.
C. Location and distribution of affordable units. Where affordable and market rate units
are provided in a residential project, the affordable units shall be distributed
proportionally to the total units in the residential project, inclusive of any density
bonus units, 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.
D. For -sale projects. Affordable units which are constructed in for -sale projects for
owner -occupancy shall be sold at affordable ownership cost to low-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 low-income households, provided that where this requirement for low-income
units would result in a fraction of a low-income unit, the number of low-income units
shall be rounded up and the number of moderate -income units which need not be
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 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 low-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 low-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
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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, third to income eligible existing Campbell
residents, and fourth to income eligible persons employed within the city limits of
the City of Campbell.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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 mode 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 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, 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
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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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024).
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
Page 10 of 15
accordance with rules approved by the community development director or his or
her designee.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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. 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:
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
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due under subsection D of this section in the event the off -site units are
not timely completed.
B. 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.
C. In -lieu housing fee. The applicant of a residential project sUbMitted one_year er
mere offer the effentive date of this Chomer may elect to pay an in -lieu housing
fee, in accordance with Section 21.24.080 (Establishment and use of in -lieu
housing fees), instead of developing the affordable units required in Section
21.24.040 (General requirements.) of this Cshapter, pursuant to the
requirements set forth below:
1. Projects with #iFe-nine or fewer or sox units_=
a. Effective through June 30, 2030, the applicant of a housing
development proiect with nine or fewer living units The appliGaRt
may pay an in -lieu housing fee to satisfy any whole or fractional
affordable unit obligation required by this Chapter
units) rather than nnnstrUntinn the nevi higher whnle number of
affordable upAs.
a-b. Effective July 1, 2030, the applicant of a housing
development project with nine or fewer living units may pay an in -
lieu housing fee to satisfy any fractional housing unit obligation
required by this Chapter (i.e., 0.75, or 0.9) rather than constructing
the next higher whole number of affordable units.
2. Projects with more than ninese„en er mere units. The applicant of a
housing development project with more than nine living units may pay an
in -lieu housing fee to satisfy any fractional affordable unit obligation less
than 0.5 rather than constructing the next higher whole number of
affordable units. Nothing contained in this section shall alleviate the
applicant from developing the remainder of the affordable units required by
Section 21.24.040 (General requirements) or allow for payment of an in -
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lieu housing fee in situations where the fractional obligation is 0.5 or
greater.
3. Calculation of in -lieu fees. 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.
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.
D. 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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
21.24.080 Establishment and use of in -lieu housing fees.
A. Initial in -lieu housing fee. The initial in -lieu housing fee shall be set by City Council
resolution based on an affordable housing analysis or nexus study which supports
the initial fee rate and fee calculation method established in this Section.
B. Fee calculation method. The in -lieu housing fee shall be calculated as follows:
Fee Satisfied Affordable Unit Obligation
In -Lieu Fee x Initial Affordable Unit Obligation x Livable Area = Total Due
Fractional Affordable Units
Fee A Total Affordable Units Required
C. Fee adjustments. The initial fee established, in accordance with Section
21.24.080.A. (Initial in --lieu housing fee.), shall be adjusted annually on July 1,
based on the percentage change in the construction cost index from the previous
year.
Page 13 of 15
D. 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.
E. 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 city and which
is not adequately supplied in the city by private housing development in the
absence of public assistance.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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.
Page 14 of 15
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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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.
(Ord. No. 2318, § 1(Exh. A), 9-3-2024)
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