CC RES 1999-028 RESOLUTION NO. 99-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ADOPTING AN AFFORDABLE
HOUSING IN-LIEU FEE AND ASSOCIATED
ADMINISTRATIVE FEE FOR NON-RESIDENTIAL
DEVELOPMENT PURSUANT TO SECTION 17.11.140 OF
THE RANCHO PALOS VERDES MUNICIPAL CODE
WHEREAS, the City of Rancho Palos Verdes General Plan Housing Element
includes oals, policies and programs to address the affordable housing needs of the
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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
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Municipal Code, including Section 17.11.140 which, requires developers of certain
commercial developments to pay a residential impact fee to provide for affordable
housing; 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 p ublic hearing for establishment of the aforementioned
fees has been provided pursuant to Government Code Section 66016(a) and 6062(a).
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: Establishment of an in-lieu affordable housing fee is consistent with
the e Cit of Rancho Palos Verdes General Plan as one of the General Plan Housing
Element Policies V-42) indicates, "Large commercial and residential projects
(page
should ld contribute to a housing impact mitigation fee to facilitate the development of
affordable housin g within the City or elsewhere in the South Bay area". Further, on
page V-44, one of the implementation actions indicates, "Evaluate and, if feasible,
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implement development a develo ment fee for commercial and residential development to be
allocated
to an affordable housing fund to be used in the event such development is
approved..."
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 indicates, "In
Resolution No. 99-28
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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 indicates, "With the
exception of development exempted pursuant to Section 17.11.140(B) 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 o f the City Council. The fee shall be adequate to
provide one low or very low income affordable housing unit for each ten employees to
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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 analyzing various options, the City Council has established an
in-lieu fee of $13,313 per affordable unit required as per Section 17.11.140(C) of the
Development Code. Other options available to the developer instead of paying the in-
lieu fee include; 1) providing proof to the City that shows how the project is exempt from
the affordable housing requirements as described in Section 17.11.140(B) of the
Development Code; or, 2) as per Section 17.11.140(B)(4) of the Development Code,
provide a feasibility study, as per Section 17.11.080 of the Development Code, to be
reviewed and approved by the City Council, that may permit approval of a lesser
amount of housing affordable to the specified income groups than would otherwise be
required by paying the in-lieu fee. As part of the feasibility study, the developer could
consider other options such as, but not limited to, providing on-site (if the on-site zone
permits residential) or off-site affordable housing units equal to one affordable unit per
each ten employees; or provide off-site affordable units equal to one unit for each ten
employees by developing a rental subsidy program managed by the developer for a
thirty year period; or a request for a lesser amount than one unit for every ten
employees be applied to the developer's project.
Section 4: To help offset the City's administrative costs in managing any
affordable housing program that distributes the in-lieu funds, an administrative fee
equal to 10% of the in-lieu fee amount shall be required to be paid by applicants who
pay the in-lieu fee to the City. If it is determined at a later date that this amount is not
equivalent to the administrative costs involved to implement the program, then the
administrative fee amount can be adjusted by the City Council.
Section 5: The in-lieu fees and associated administrative fee required by Section
3 and 4 shall be aid by the developer prior to issuance of a certificate of use and
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occupancy for the development project.
Resolution No. 99-28
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Section 6: The amount of the subject in-lieu fees and associated administrative
fee 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 p otentiai changes in rental rates, the in-lieu affordable housing fee shall be
reviewed every 5 years from the effective date of this Resolution. However, if such
review is not conducted, the failure to conduct the review shall not prevent the City from
collecting the fee which is in effect at that time.
Section 8: Effective Date. This Resolution shall go into effect on July 4, 1999.
PASSED, APPROVED, AND ADOPTED THE 4th DAY OF MAY 1999.
YOR
ATTEST:
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CITY CLERK
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss
CITY OF RANCHO PALOS VERDES }
I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
above Resolution No. 99-28 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on May 4, 1999.
• CITY CLERK
Resolution No. 99-28
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