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PC Res 3739 RESOLUTION NO. 3739 BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CAMPBELL RECOMMENDING THAT THE CITY COUNCIL ADOPT AN INCLUSIONARY HOUSING ORIDINANCE (CHAPTER 21.24) THAT MANDATES 15% AFFORDABLE HOUSING UNITS FOR ANY RESIDENTIAL DEVELOPMENTS CONSISTING OF 10 UNITS OR MORE. After notification and public hearing as specified by law on the proposed Inclusionary Housing Ordinance, and after presentation by the Community Development Director, proponents and opponents, the Planning Commission did determine that the adoption of an Inclusionary Housing Ordinance (Chapter 21.24) that mandates affordable housing units for any residential developments consisting of 10 units or more is warranted based upon the following findings: 1. Housing prices and rents 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. 2. 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. Numerous nexus studies have been performed in neighboring cities which clearly demonstrate that much of the new commercial and industrial development does negatively impact the existing housing shortage. 3. It is noted that 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 it's region wide affordable housing obligations. 4. The City has great unmet needs for housing for individuals and families who have low, very low and moderate incomes. For the period 1999 through 2006, The Association of Bay Area Governments has assigned the City a fair share of 777 units. This includes: 165 very low income units; 77 low income units; 214 moderate income units; and 321 market rate units. From 1999 to 2006 to date, the City of Campbell has built 506 units. These include: 16 very low income units; 6 low income units, 63 moderate income units; and 421 market rate units. This leaves a shortfall of 371 (149 very low income units; 71 low income units; 151 moderate income units; and the City of Campbell exceeded the required market rate units). Planning Commission Resolution No. 3739 Recommending Adoption of an Inclusionary Housing Ordinance (Chapter 21.24) Page 2 5. Neither the City's resources nor other sources of financing are sufficient, despite the best efforts of the City and the Campbell Redevelopment Agency, to produce affordable housing for most of those with unmet needs. 6. Unless new housing development contains some portion of housing affordable to moderate, low and very low income households, the City cannot meet its regional housing allocation needs. The City's regional housing allocation needs of 777 units represent over half of the City's anticipated residential build-out. 7. An inclusionary requirement of 15%, while substantially less than the percentage of affordable units which would be required to meet the City's overall fair share, would significantly contribute to meeting the need; 8. Including affordable units in private residential development in different parts of the City will help keep the City an economically balanced community, with homes for people at varying income levels in many parts of the City; 9. Allowing developers, if they choose to satisfy the inclusionary requirement by causing affordable units to be built on a separate site, or by dedicating adjacent land to be used for a separate affordable development; 10.Applying an inclusionary requirement only to new development applications will give developers an opportunity to plan for the requirement, and to reduce the price paid for development sites to take into account the inclusionary requirement; 11. Adoption of the inclusionary requirement is an appropriate, and essential, measure to implement the City's plans to provide homes for families and individuals with a wide range of incomes, and to address the City's otherwise unmet housing needs; 12. The "public necessity, convenience and general welfare" require the adoption of this Inclusionary Housing Zoning Text Amendment in order to implement a portion of the City's Housing Element to encourage the development of affordable units. 13. Any and all fees required by the regulations adopted by this ordinance shall be used exclusively for the purpose the development, creation and support of affordable housing. 14. There is a reasonable relationship between the fee's use and the type of development project on which the fee would be imposed, in that collection of the fee replaces the obligation for providing inclusionary unit(s), does not exceed the cost of providing the inclusionary unit(s), and shall be deposited in the City's Affordable Housing Fund to benefit a variety of affordable housing programs. 15. There is a reasonable relationship between the need for affordable housing and the type of development project on which the fee would be imposed, in that as limited Planning Commission Resolution No. 3739 Recommending Adoption of an Inclusionary Housing Ordinance (Chapter 21.24) Page 3 land resources are developed with market rate housing, the opportunities for development of affordable housing is reduced. 16. There is a reasonable relationship between the amount of the fee and the cost of the affordable housing contribution attributable to the development on which the fee would be imposed, in that the in-lieu fee shall be set by the City Council so that the fee amounts are not greater than the gap between: (a) the amount of development capital typically expected to be available based on the amount to be received by a developer or owner from affordable housing cost or affordable rent, and (b) the anticipated cost of prototypical affordable units. IT IS HEREBY RESOLVED that the Planning Commission of the City of Campbell recommends adoption of an Inclusionary Housing Ordinance (Chapter 21.24) that mandates 15% affordable housing units for any residential developments consisting of 10 units or more. PASSED AND ADOPTED this 25th day of July, 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Commissioners: Commissioners: Commissioners: Commissioners: Alderete, Francois, Gibbons and Rocha Ebner Doorley and Roseberry None ATTEST: fiPl.....-r~ / Sharon Fierro, Secretary APPROVED~~ L Bob Alderete, Chair ~