CC RES 2005-112RESOLUTION NO. 2005-112
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES,
RESCINDING RESOLUTIONS NOS. 97-48 AND 99 -28, AND THEREBY ADOPTING AN
INCREASED AFFORDABLE HOUSING IN -LIEU FEE FOR RESIDENTIAL AND NON-
RESIDENTIAL DEVELOPMENT PROJECTS, PURSUANT TO SECTIONS 17.11.050
AND 17.11.140 OF THE RANCHO PALOS VERDES MUNICIPAL CODE.
WHEREAS, the City of Rancho Palos Verdes General Plan Housing Element
includes goals, policies and programs to address the affordable housing needs of the City;
and,
WHEREAS, on March 18, 1997 the City Council adopted Ordinance No. 320, which
adopted amendments to Titles 16 and 17 of the City of Rancho Palos Verdes Municipal
Code, including Section 17.11.050, which allows in -lieu fees to be provided as an alternative
to affordable housing units in residential development projects, and Section 17.11.140
which, requires developers of certain commercial developments to pay a residential impact
fee to provide for affordable housing in the City; and,
WHEREAS, pursuant to Government Code Section 66018, the specific fees to be
charged for services must be adopted by the City Council by Resolution, after providing
notice and holding a public hearing; and,
WHEREAS, notice of the public hearing regarding an increase of the aforementioned
fees has been provided pursuant to Government Code Section 66016(a) and 6062(a);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: Establishment and increase of an in -lieu affordable housing fee is
consistent with the City of Rancho Palos Verdes General Plan, as the General Plan Housing
Element lists the use of the City's Affordable Housing In -Lieu Fund as one of the funding
sources for implementation of various programs within the City's Housing Element.
Section 2: Establishment of an in -lieu affordable housing fee is consistent with the
City of Rancho Palos Verdes Development Code, as Chapter 17.11 states: "In order to
provide housing affordable to all segments of the community and preserve and maintain low
and moderate income housing opportunities ... consistent with the goals of the City's adopted
general plan housing element and state law, this chapter further specifies procedures under
which applicants for ... new residential projects, shall be required to provide for housing
affordable to very low, low and moderate income households ". Further, Development Code
Section 17.11.050 states: "Upon City Council approval, in -lieu fees may be provided as an
alternative to units required pursuant to Sections 17.11.040 or 17.11.130 of this chapter.
The fee per affordable unit to be provided shall be established by City Council resolution".
Additionally, "In order to mitigate the impact of local employment generation on the local
housing market, consistent with the goals of the City's adopted general plan housing
element and statewide housing goals as declared by the California State Legislature, this
chapter specifies procedures under which applicants of new nonresidential development or
conversion of existing development to a more intense use, shall be required to make
provisions for housing affordable to low and very low income households. Further,
Development Code Section 17.11.140 states: "With the exception of development exempted
pursuant to Section 17.11.140(6) of this chapter, and except where it has been
demonstrated not to be feasible pursuant to Section 17.11.080 of this chapter, developers of
commercial development shall pay a residential impact fee to be set by resolution of the City
Council. The fee shall be adequate to provide one low or very low income affordable
housing unit for each ten employees to be generated by the project. The fee per affordable
unit to be provided shall be equal to the difference between the median value of market rate
housing and the price affordable to low or very low income households'.
Section 3: After reviewing and analyzing various options, as presented in the report
to the City Council and considering all other relevant evidence and testimony that was
presented at the public hearing, the City Council has established a fee in the amount of
$201,653, which is to be paid to the City as an alternative to providing an affordable housing
unit, as defined- and required by Section 17.11.040 of the Rancho Palos Verdes Municipal
Code, and to satisfy the requirements of Section 17.11.140C of the Rancho Palos Verdes
Municipal Code.
Section 4: To partially offset the City's cost of managing any affordable housing
program that allocates the in -lieu funds so that affordable housing will be provided in the
City, any developer of a project who pays the in lieu fee to the City also shall pay an
administrative fee equal to 10% of the in -lieu fee. The 10% administrative fee is a
continuation of the administrative fee that was adopted previously in 1997 and 1999 for
residential projects (Resolution 97 -48) and non - residential projects (Resolution 99 -28) in -lieu
fees.
Section 5: The in -lieu fee and associated administrative fee required by Section 3 and
4 above shall be paid by the developer of the particular project prior to issuance of a
certificate of use and occupancy for the first residence within the development of a
residential development project, and prior to issuance of a certificate of use:and occupancy
for a non - residential development project.
Section 6: The amount of the subject in -lieu fee and associated administrative fee
that is due and owing to the City for each affected project shall be verified by the Director of
Planning, Building and Code Enforcement, and shall be paid to the City Finance
Department.
Section 7: To ensure that the in -lieu affordable housing fee is consistent with the
potential changes in rental rates and the cost of providing affordable housing in the City, the
in -lieu affordable housing fee shall be adjusted annually based upon the annual change in
Consumer Price Index (CPI ) as of January of each year for Los Angeles County, following a
duly noticed public hearing conducted by the City Council. Additionally, the in -lieu
affordable housing fee shall be reviewed every 5 years from the effective date of this
Resolution No. 2005 -112
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Resolution. However, if such 5 -year review is not conducted, the failure to conduct the
review shall not prevent the City from collecting the fees that are in effect at that time.
Section 8: This fee increase shall not apply to any development project that has
obtained final City approval of its project entitlements prior to the effective date of this
Resolution. In such cases where the development project has obtained final City approval of
its project entitlements prior to the effective date of this Resolution, for non - residential
development projects, the fee shall be $13,313 per affordable unit required plus a 10%
administrative fee. For residential development projects, the fee shall be $1.00 per square
foot of buildable area plus a 10% administrative fee. In such cases, if the development
project's entitlements expire, then any future project on the same property shall comply with
the increased fee amount as established above in Sections 3 and 4.
Section 9: City Council Resolution Nos. 97 -48 and 99 -28 shall be rescinded upon the
effective date of this Resolution.
Section 10: Effective Date. This Resolution shall go into effect at 12:00 a.m. on
December 19, 2005.
Attest:
PASSED, APPROVED, AND ADOPTED THE 18th DAY OF OCTOBER 2005.
Mayor
4,
State of California }
County of Los Angeles )ss
City of 'Rancho Palos Verdes }
I, Carolynn Petru, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
above Resolution No. 2005 -112 was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on October 18, 2005.
Resolution No. 2005 -112
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