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Mr. Solomon, Housing
Development Manager, reported in February 2003, the Blue Ribbon Task Force
on Affordable Housing (Task Force) presented recommendations intended to
expand the stock of affordable housing in Burbank. He added at the close
of the presentation, the Council authorized implementation of the Task
Force�s recommendations and instructed staff to bring back a report
providing background information about inclusionary housing to provide the
Council with further guidance in drafting an ordinance for future
consideration to ensure that a portion of residential units in a market
rate development were affordable to lower and moderate-income households.
He noted, sensitive to market conditions, inclusionary housing ordinances
were most productive in a strong housing market such as Burbank�s, by
capitalizing on market demand when market rate development is focused
primarily on upper-income households. Also, the Ordinance would spur
economic integration within a community by requiring affordable units to
be dispersed throughout new developments generating a mix of income levels
and a means for lower-income paid workers to find housing close to
employment. He then gave a historical background on inclusionary housing
ordinances in the State of California.
Karen Warner,
representing Karen Warner and Associates, provided an overview of the
common characteristics which make up inclusionary housing ordinances. She
also discussed the results of a statewide survey of 75 State jurisdictions
and noted inclusionary housing ordinances should not impede development
but provide affordable housing.
Mr. Solomon
discussed the issues associated with inclusionary housing as well as
staff�s recommendations pertaining to each issue. He stated staff
recommended that 15 percent of all newly constructed for-sale units be
affordable to low and moderate-income households and 15 percent of all
newly constructed rental units be affordable to lower-income households,
with one-half affordable to very low-income households.
With regard to how
long the inclusionary units would be required to be affordable, he stated
staff recommended the period of affordability extend in perpetuity, with
resale provisions tied to the for-sale units as well as requiring that
affordable units be constructed consistently with market rate units and
not at a later stage of construction.
On the issue of
exemptions, he stated staff proposed that projects comprising of less than
10 units be exempted from the ordinance to avoid a heavy financial impact
on developers.
Regarding the
developer�s options to meet the inclusionary housing obligation off-site,
he stated staff suggested a developer be allowed to pay an in-lieu fee to
opt out of developing affordable units on-site. He informed the Council
that an in-lieu fee study would be undertaken to determine that the amount
of the affordability gap is consistent with what would be required of the
developer if he had to build an affordable unit on-site, to construct
affordable units off-site, or donate land at another location and would
also consider credit transfers whereby a developer could reduce the number
of required affordable units in exchange for meeting some other housing
policy purpose. He concluded with staff�s request that the Council
approve the recommendations and direct staff to return with a draft
inclusionary housing ordinance and authorize staff to initiate an in-lieu
fee study.
Mrs. Ramos clarified
the Task Force discussions did not include specific thresholds for the
number of units or the off-site construction option and inquired of the
method of enforcing off-site development of affordable housing units. Mrs.
Georgino responded that units would have to be developed concurrently or
first.
Ms. Murphy inquired
of the effects of the inclusionary housing ordinances in the cities
surveyed by staff and Mr. Solomon replied that response to inclusionary
housing ordinances was market driven with popularity in a strong market as
opposed to a down market and noted the growing number of jurisdictions
adopting such ordinances. He stated in the short term, some property
owners may hold property off the market anticipating that developers would
pay the market rate, with the situation correcting itself in the long
term. Ms. Murphy cautioned on the trend of developers offering land for
low and moderate income housing in other locations to avoid having those
units in specific areas and Mr. Solomon clarified the exclusion of this
option from the ordinance. She expressed support of the affordability
term being in perpetuity.
Mr. Golonski was
supportive of the direction to continue with drafting the proposed
ordinance and developing an in-lieu fee structure, but expressed concern
with the exemption for developments comprising of less than 10 units,
stating he would prefer that the exemption be based on density.
Mr. Vander Borght
concurred with Mr. Golonski with regard to the proposed threshold,
cautioning that design standards should not be modified to the detriment
of R-1 zoned areas.
Mayor Laurell
expressed support for staff�s recommendations and inquired about Keyser
Marston and Associates� process of soliciting public input regarding the
in-lieu fee study, and inquired if initiating the in-lieu fee study should
be a part of the ordinance or if it required a public hearing.
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