§ 15.72.100. On-site affordable housing option.

A.

On-Site Affordable Housing Mitigation Measure. An applicant for a development project that is otherwise subject to the impact fee will not be subject to the impact fee if the applicant will be providing affordable housing units within the development project as set forth below.

1.

In all such cases the applicant shall execute a written agreement with the City setting forth the number, type, location, approximate size and construction schedule of all such affordable housing units, restricting the occupancy and rent or sale price of such units, and setting forth other terms and conditions as required for ensuring compliance with this Section. Rental units shall remain affordable for fifty-five (55) years or for the life of the development project, whichever is greater. Said agreement shall be recorded against the affordable housing units as covenants running with land, senior in priority to any private liens or encumbrances except as provided below, and shall be enforceable by the City against the applicant or the applicant's successors-in-interest to the property for the full affordability term. Additional restrictions, deeds of trust, rights of first refusal, or other instruments may be required by the City Administrator as reasonably needed to enforce these restrictions. The City Administrator shall have the authority to subordinate such restrictions to other liens and encumbrances if he or she determines that the financing of the affordable housing units would be infeasible without said subordination.

2.

Proposals for the provision of on-site affordable housing units as homeownership housing must comply with the City of Oakland Affordable Homeownership Development Program Guidelines. The applicant shall agree to, and the City shall ensure that, the initial occupant of all for-sale units are very low-, low-, or moderate-income households, as required, and that the units are offered at an affordable housing cost.

3.

All affordable housing units must be reasonably dispersed throughout the development project, be of the same size, and contain, on average, the same number of bedrooms as the market-rate units in the development project. All affordable housing units must be comparable with the design or use of market-rate units in terms of appearance, amenities, materials and finish quality.

4.

All affordable housing units may be occupied only by very low-, low-, or moderate-income households as applicable. For rental units, the owner of any units produced under this option must report to the City annually on the occupancy and rents charged for the affordable housing units.

5.

All affordable housing units in a development project and phases of a development project must be constructed concurrently with or prior to the construction of the market-rate units, unless the City Administrator determines that extenuating circumstances exist.

B.

Number of Affordable Housing Units Required for On-Site Mitigation. For applications for development projects that include affordable housing units, the total number of required affordable housing units for such development project that will be needed to exempt the development project from the impact fee shall be one of the following:

Number of Moderate Income Units = Total Number of Housing Units x 10%; or

Number of Low Income Units = Total Number of Housing Units x 10%; or

Number of Very Low Income Units = Total Number of Housing Units x 5%.

"Total Number of Housing Units" means the total number of units proposed for the development project, including the affordable housing units, but not including units added by a density bonus awarded pursuant to this Section or any section within Chapter 17.107 of the Oakland Planning Code or Government Code Sections 65915—65918.

1.

An applicant for a development project subject to this Section may provide less than the percentage of market rate units indicated above as affordable housing units and pay a proportionately reduced impact fee.

2.

In the event the application of this Section to an applicable development project creates an obligation to construct a fractional affordable housing unit, that fraction shall be either converted into a fractional impact fee, or shall require an additional affordable housing unit, to be determined at the discretion of the City Administrator.

3.

Along with production of the affordable housing units, the applicant may take advantage of the Chapter 17.107 Density Bonus and Incentive Procedure in the Oakland Planning Code as well as the State Density Program in Government Code Sections 65915—65918.

4.

For those projects providing moderate-income rental units the applicant may take advantage of the following provisions in Chapter 17.107 of the Oakland Planning Code that otherwise apply to moderate-income for sale units: Section 17.107.040, Table 17.107.03, Section 17.107.080, Section 17.107.090 and Table 17.107.05; all other requirements in Chapter 17.107 still apply.

(Ord. No. 13365, § 4, 5-3-2016)